POLICY REPORT URBAN STRUCTURE Date: May 30, 1997 Dept. File No. IS CC File: 5307-1 TO: Vancouver City Council FROM: Director of Central Area Planning SUBJECT: Release of Staff Processing the Rezoning of 940-960 Station Street (Trillium Site) INFORMATION A. As of May 16, 1997, with acknowledgement of the applicant, all work and City expenditures have stopped and the staff brought on for processing the rezoning of 940-960 Station Street (Trillium Site) have been released. B. If a revised application for 940-960 Station Street (Trillium) is not forthcoming by July 30, 1997, or the application is not withdrawn, staff intend to report back to Council with a recommendation for refusal of the rezoning. GENERAL MANAGER'S COMMENTS The General Manager of Community Services submits A and B for INFORMATION. COUNCIL POLICY There is no Council policy applicable to this situation. BACKGROUND AND PURPOSE On June 13, 1996, Council approved funding to process the Trillium rezoning and to complete the Thornton Park area plan. This included a dedicated staff team from the Planning, Engineering and Law Departments for a period of 13 months, as set out in Appendix A. As it is now clear the Trillium rezoning submissions will not be forthcoming in a timely fashion and the rezoning may not be pursued, and as the applicant's portion of the rezoning fee has been completely expended, to continue to spend this resource cannot be justified. This report is to inform Council that the staff team for the Trillium rezoning and Thornton Park planning has been disbanded and advise how staff intend to deal with the rezoning application if it is not pursued by the applicant in a reasonable time. DISCUSSION Following Council's direction on the Trillium proposal and the approval of resources, the following temporary staff were hired: a Planner, a Planning Assistant, an Engineer and a half-time Clerk/Typist II (the temporary position in the Law Department was not needed until later in the process and has not been filled to date). The assigned staff commenced discussions with Trillium, their consultants and business partners. A series of workshops was held last summer which helped set up a framework for the submission of a revised rezoning application. Substantial progress was made on the road system, infrastructure, basic land use planning and subdivision pattern as well as issues of scale, open space and urban design. After workshops, considerable follow-up planning and engineering analysis was completed. When the revised application was not received as anticipated at the end of September nor on subsequent dates at the end of December and January, as promised by Trillium's consultants, staff focussed their attention on the preparation of the Thornton Park plan. Work on Thornton Park has included background research, heritage and SRO housing analyses, the preparation of draft public discussion papers on all major issues, as well as completion of a consultancy on live/work and work/live. We are now at a juncture where we have completed as much work on both the Trillium rezoning and Thornton Park plan as is advisable without Trillium's revised application. We explained our concerns to Trillium in an attempt to determine the status of their application. We offered a solution which would have, at their expense, continued the dedicated staff for sufficient time to process a revised application, if submitted in the next month. Otherwise, we indicated that the dedicated staff team would have to be disbanded, with no further resources expended. We felt we could not justify the continued use of these resources without security that the rezoning would be actively pursued. While Trillium is hopeful that their rezoning will eventually proceed, they were unable to make any commitments and acknowledged in a letter (attached as Appendix B) that the dedicated staff should be released. Accordingly, on May 16, 1997, we released the staff assigned to this rezoning, stopped all work on the rezoning and Thornton Park neighbourhood planning and stopped the expenditure of the resource. WHAT DOES THIS MEAN REGARDING CITY RESOURCES? Council approved $293,000 for staffing and support resources for these projects. As of May 16, 1997, $167,000 has been spent on this work. A rezoning fee of $77,000 was received, representing one-half of the $155,000 fee required in accordance with our previous fee by-law. The shortfall of $90,000 between rezoning fees secured and resources spent represents the City's commitment, beyond the rezoning, to the area's planning and to making headway on policy issues of general application. While this work has stopped it can be easily picked up and used as part of a revised rezoning on the Trillium site, as part of processing other rezonings or development proposals in the area, or as part of the work which has just commenced on the planning of the adjacent Southeast Shore area. WHAT DOES THIS MEAN TO THE APPLICANT? Trillium has requested that their application remain open indefinitely. While it is reasonable to give them a limited period to reactivate their submission, it is also reasonable to set a final date after which the file will be closed. This is because current rezoning fees are significantly higher, representing 100% cost recovery, and it is inequitable to other applicants for Trillium to enjoy the lower rates indefinitely. As such, if a revised application is not received by the end of July or the application has not been withdrawn, we intend to prepare a report recommending refusal of the rezoning. Should Trillium reactivate their application during this time, or submit a new application later, staff will be assigned from the Planning Department's existing resources in the Land Use and Development Division. Work on the Trillium site will then be done on a "first come, first served" basis with other rezonings. Alternatively, if Council wishes at Trillium's request, we could arrange for the dedicated team to be reconvened for the necessary period to completion. Council might look to Trillium to cover any special costs in this eventuality. CONCLUSION It is now clear that the Trillium rezoning will not be proceeding within the time set aside by Council for a designated staff team. As a consequence, the staff team has been disbanded so as to not unduly spend City resources. * * * * *