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             withdrawn, staff intend to report back to Council with a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.

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