P2 POLICY REPORT URBAN STRUCTURE Date: March 19, 1997 Dept. File No. HW C.C. File: 5301-1 TO: Vancouver City Council FROM: Director of Community Planning SUBJECT: Updated Strathcona Policies including Policy to Support Rezonings of Remaining Small Industrial Sites in Kiwassa from I-2 and M-1 to RT-3 RECOMMENDATION THAT Council adopt the revised Strathcona Policies contained in Appendix A, including policy 1.1 which supports owner-initiated rezonings to RT-3 of the small industrial sites within the area bounded generally by the BNR tracks, Union Street, Vernon Drive and the lane north of Pender Street. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY Strathcona Local Area Planning Initiatives Council on June 25, 1992, adopted the Strathcona Land Use Policies including the following policy for the RT-3 area of Kiwassa between the BNR tracks and Vernon Drive north of Union Street: Reinforce the existing residential character of Kiwassa by requesting the Director of Planning to report back on rezoning industrial-zoned sites to RT-3, after further consultation with the owners. Industrial Lands Strategy Council on March 14, 1995, adopted the Industrial Lands Strategy which supported retaining most of the City's existing industrial land base for industry and service businesses. The Strategy also identified areas that could be "let-go" for other uses, including the industrially-zoned parcels in Kiwassa, west of Vernon Drive, and north of Union Street. (Note: Included in the land to be retained for industry was the industrial area of Kiwassa east of Vernon Drive.) Council on June 25, 1996, resolved: To create a new I-2 District Schedule and to rezone the majority of M-1 zoned lands and a portion of M-2 zoned lands in the City to I-2. (Note: Most of the small industrial sites within the Kiwassa RT-3 area were included in the M-1 sites rezoned to I-2.) Housing Opportunities Strategy Council on April 9, 1991, resolved: To identify new housing opportunities in the city by planning for housing on surplus industrial lands. PURPOSE The purpose of this report is to request Council adoption of updated Strathcona Policies, reflecting recent Council decisions, and to recommend inclusion of a policy to support owner-initiated rezonings to RT-3 for several small industrial sites in the Kiwassa RT-3 residential area. The report reviews the background, the planning rationale, and the public notification that has occurred. BACKGROUND In 1992, after a three-year planning process, Council adopted the Strathcona Local Area Planning Initiatives. These policies directed staff to do additional work in the following areas: amend the existing RT-3 zoning and approve design guidelines to reinforce existing character in the RT-3 areas of Strathcona. This work was completed in 1993. report back on land use options in the Vernon to Clark Drive area. This work was completed as part of the Industrial Lands Strategy and I-2 industrial zoning has been approved. report back on land use alternatives in the area north of Hastings from Heatley to Raymur. This work was completed and Council endorsed retaining the current M-2 industrial zoning. report back on rezoning the M-2 industrial area north of Hastings between Raymur and Clark to light industrial uses. The Industrial Lands Strategy supports retaining the M-2 zoning. clarify the existing policy on industrial rezonings in Strathcona. The Industrial Lands Strategy is now approved Council policy. report back on rezoning the industrially-zoned portion of the Hastings Street corridor. This work has been held in abeyance pending the completion of the East Downtown Housing Plan. The original policy direction is therefore retained in the revised policies. report back on rezoning the industrially-zoned sites in the Kiwassa RT-3 area to RT-3. This work is summarized in this report. DISCUSSION 1. Kiwassa RT-3 Area (a) Sites Description The Kiwassa RT-3 area is located in Strathcona just south of Hastings Street viaduct between the BNR tracks and Vernon Drive as shown in Figure 1 below. There are ten small industrially-zoned sites (shaded in Figure 1) within this primarily residential area. Most of these sites are currently in active industrial and service uses such as food manufacturing, clothes wholesaling and service company offices and warehouses. Two sites are currently vacant. One formerly industrial site, on the north-west corner of Keefer Street and Vernon Drive, was recently rezoned to RT-3 to permit construction of three residential units. While there are existing viable industries in the area, several have recently relocated out of the area. Because of the existing residential and adjacent school and park, these sites are a good opportunity to strengthen the residential character of the area in keeping with Council's Strathcona policies. (Much of the area surrounding the Kiwassa neighbourhood is to remain industrial under Council's Industrial Lands Strategy.) Figure 1. Kiwassa RT-3 Area (b) Rezoning Approach Staff have examined the desirability of a City-initiated rezoning of all the industrial sites to RT-3 now, or a Council policy supporting owner-initiated rezonings to RT-3 on a site-by-site basis. Staff has concluded that a Council policy supporting rezonings is preferable to a City-initiated rezoning which would make the active industrial uses non-conforming. This would put the current uses in an uncertain legal position and require owners to seek Board of Variance approval to expand, or rebuild if the building was destroyed by fire. Given the restrictions of being made non-conforming, most owners of active businesses would wish to remain industrial until they are ready to redevelop. While retaining the current zoning and supporting residential rezonings entails some risk of industrial redevelopment of some of these sites, staff believe the risk is minimal for two reasons. First, most existing buildings are near their practical maximum size for their sites already, and secondly, market activity in the area suggests that residential redevelopment is favoured over industrial redevelopment. It should also be noted that Development Cost Levies (DCLs) cannot be collected in this area. This is because RT-3 buildings contain less than the required minimum 4 units, and under the Vancouver Charter are not subject to DCLs. (c) Public Input Staff sent a total of 230 notifications to affected landowners, surrounding owners and residents in the RT-3 area, as well as the industrial area to the east up to Clark Drive. A newsletter was enclosed, with information on the proposed RT-3 rezoning policy as well as an update on other planning issues in the area. There were only three responses to these notifications. These respondents requested clarification of the RT-3 District's intent and were supportive of the proposed policy. Staff also notified the Strathcona Residents Association, the Strathcona Community Centre Association, the Strathcona Property Owners and the Raycam Co-operative Centre Association of this proposal. No responses were received from any of these groups. 2. Strathcona Policies Update Many of the original Strathcona Policies, adopted on June 25, 1992, called for further staff review and decisions of Council as outlined in the Background section of this report. Except for the Hastings Street corridor review, the other major work is now complete. Staff recommend that the Strathcona Policies be updated to reflect the current situation and incorporate the proposed Kiwassa RT-3 policy. The complete updated policies are contained in Appendix A. SOCIAL AND ENVIRONMENTAL IMPLICATIONS Except to note a few additional housing opportunities, there are no major social or environmental implications to the proposed rezoning policy. There are no implications with respect to the Vancouver Children's Policy or Statement of Children's Entitlements. CONCLUSION Council has a policy of reinforcing the residential nature of the Kiwassa neighbourhood. To achieve this objective, staff recommend adoption of a policy supporting owner-initiated rezonings to RT-3 for those industrially-zoned sites shown as shaded in Figure 1. At the same time, staff recommend the remaining Strathcona Policies be updated to reflect Council's recent decisions on the future of industrial land in Strathcona. * * * * *