SUPPORTS ITEM NO. 2 P&E COMMITTEE AGENDA JULY 31, 1997 POLICY REPORT Urban Structure Date: July 21, 1997 Dept. File No. IS C.C. File No.: 5053 TO: Standing Committee of Planning and Environment FROM: Director of Central Area Planning, in consultation with Manager of the Housing Centre, Director of Social Planning and General Manager of Engineering Services SUBJECT: Planning Principles and Concept Plan for Mole Hill RECOMMENDATION A. THAT the principles for the development of Mole Hill put forward by staff, as set out in Appendix B, be endorsed by Council; B. THAT the Concept Plan based on staff's principles as shown on Appendix B page 3, be adopted by Council as the basis for the next phase of planning; C. THAT the adoption of A and B above, constitute the end of Phase I of the planning of Mole Hill and that Phase II commence immediately, involving the Mole Hill Working Group and the general public in further refining the plan and implementation strategies; D. THAT funding for Phase II of Mole Hill planning, in the amount of $50,000 as described in this report be approved; FURTHER THAT the 1997 portion of this, in the amount of $25,000, come from Contingency Reserve Fund and the balance be included in the 1998 departmental operating budget; and E. THAT to expedite the first phase of the Mole Hill childcare development already approved by Council (i.e. the new construction of a childcare facility and an infill family dwelling unit suitable for licensed family childcare) being undertaken by the B.C. Wood Specialities Group, and to extend the useful life of the existing two adjacent houses, Council authorize the Manager of Real Estate and Director of Facility Development in consultation with staff from Heritage Planning to proceed with required service and life safety building upgrade work, basic maintenance, and minor heritage "revealing" work to the exteriors of the existing houses at 1129 and 1137 Pendrell; FURTHER THAT Council direct staff to work with B.C. Wood Specialities Group to explore sources for donated materials which will facilitate the current and future exterior heritage work in Mole Hill; and F. THAT Engineering and Planning staff report back on the treatment of the public lane, taking into consideration infill sites, services, pedestrian use, and vehicular access. GENERAL MANAGER'S COMMENTS The General Manager of Community Services recommends approval of the foregoing. COUNCIL POLICY - On April 2, 1996, Council adopted a number of resolutions to guide the planning of Mole Hill. A commitment was made to retaining the land and the heritage listed buildings as well as accommodating all existing residents on site. While priority was to be given to low end of market rental, the City's policy for mixed-use communities was to be maintained. Options for public facilities as well as CityPlan policies for infill and new forms of housing, were also to be considered. The complete list of Council s resolutions is included as Appendix A. - On May 26, 1997 Council reserved the site at Comox and Thurlow for the Dr. Peter Centre. - On June 3, 1997 Council reserved the sites as 1129, 1133, and 1137 Pendrell Street for Child care and Family Daycare. SUMMARY Following Council's decisions on Mole Hill in the Spring of 1996, staff set up a Working Group to develop a concept plan for the block. The group included a broad base of heritage and community organizations which had long been involved in the Mole Hill process. All members volunteered their time and made a substantial commitment and effort in identifying principles and developing the Working Group Option. This report presents the results of Phase I of the planning program. Areas of agreement between staff and the Working Group include: reserving sites for the Dr. Peter Centre; reserving sites for daycare facilities (53 total spaces); maintaining all listed heritage houses on their sites; narrowing the paving and creating a pedestrian environment in the lane; developing community and heritage gardens; developing criteria for considering demolition of building additions; agreement on the notion of minimizing parking; and agreement on maintaining the existing tenants on-site, including the option of moving off during renovation and returning to an upgraded unit. There have also been some areas of differing viewpoints, which have resulted in different principles for development and concept plans put forward in this report by the Working Group and staff respectively. Staff principles are included in Appendix B, with the Working Group principles included in Appendix C. With the exception of implementing the agreements above, the Working Group would like to limit physical change at this time. In their concept plan (illustrated in Appendix C page 6), they propose to retain all of the existing houses, and reserve all the 165 existing units for affordable rental. They believe that this block represents a heritage resource and a supply of affordable housing which must be preserved. In the context of the West End, they feel that affordable rental housing is important in maintaining a mixed community. They are not prepared to consider infill at this time or on-site parking, preferring instead to reclaim and reserve the majority of the yards for public use in heritage and community gardens. Renovations would be limited to the ongoing maintenance with incremental housing upgrades, as more units are rented and the revenue stream increases. If existing rents are maintained as supported by the Working Group, the period of renovation could extend to over 20 years. On this basis, however, the Working Group feels their plan would break even. If we were to pursue an accelerated period of renovation with low-end-of-market rents for new tenants as proposed by staff, this option would lose about $4.0 million. Staff's Concept Plan (illustrated in Appendix B, page 3) is not substantially different in terms of the physical layout from the Working Group s. In accordance with Council s direction, we have given priority to low-end-of-market rental by setting aside at least 96 units for existing and new tenants. In addition, to respond to the goals of CityPlan for mixed communities, we have increased both housing diversity and tenure to accommodate middle and upper income earners, including families with children. Given that all units are ground-oriented and adjacent to a park and a school with daycare in the Block, we feel that we can do much better than the 12% of the units that are currently suitable for families with children. Staff's plan also permits limited demolition of 2 non-listed houses and demolition of some building additions, which have deteriorated to the point where necessary upgrades are economically unfeasible or are not technically possible under today s building code. In these locations, sensitive infill can achieve non-market and family objectives. Most importantly, staff recommend a level of renovation to preserve and enhance this heritage resource. Upgrades to the basics including wiring, plumbing, heating, foundation, interiors, and exteriors are needed to provide safe, decent accommodation. This needs to happen soon, given the potential risks. Staff's plan would see all renovations occur within 5 years, controlled by design guidelines to be developed in the next phase of planning. This option would result in a return of about $4.0 million. A third option (illustrated in Appendix D) is put forward for Council's information and demonstrates a maximum return from the site, estimated at about $7.0 million, while still responding to Council's resolutions and staff's principles. This option is not supported by staff due to the loss of four additional houses, the movement of a C listed house, the reduction of community/heritage garden space, and the limited housing diversity for existing tenants. The estimates for all options do not include consideration of the unencumbered land value of approximately $18.0 million. All three options are well below the development potential of the existing zoning of 2.75 FSR, ranging from about 1.0-1.2 FSR. Regardless of which option Council decides to pursue, staff recommend the creation of a heritage density bank. This could be done as a rezoning defined in the next phase. As this bank would be quite substantial, it should be held in reserve at this time, so as not to flood the market and potentially jeopardize other current heritage initiatives. The value of the heritage density bonus could range from $6.0 - $8.0 million if sold over time without market saturation. To complete the next stage of planning which will take approximately a year, a budget of $50,000 is required, and the funds are recommended from contingency reserve and 1998 departmental budgets. PURPOSE This report provides a summary of the Mole Hill planning process to date, including development principles and concept plans generated by both the Mole Hill Working Group and by City staff. Council is asked to adopt staff's principles and concept plan as completion of phase I of the planning process and as a basis for the next stage. BACKGROUND The City of Vancouver owns 3.30 acres of land in Mole Hill, which is presently zoned RM-5B. If assembled into developable sites, the Manager of Real Estate estimates the current market value of the unencumbered land to be approximately $18 million. The sites were purchased between the 1950s and early 1980s for park space. The opportunity cost of the actual purchase prices of the individual lots as of 1996 is approximately $15 million. In other words, if the City had either invested the purchase price of each individual lot at the time of purchase or not borrowed the money to make the purchase, the City would now have about $15 million. Shortly after Council adopted the initial development principles in 1996, work began on a community based planning process. A working group was set up representing 13 community organizations, including private property owners and tenants. Six staff members were also assigned on a part-time basis to coordinate the group and provide information and advice. Staff did not vote on the working group's motions and reserved the right to present a different position to Council. The Working Group has met almost 20 times to consider issues related to the block. Information has been gathered and presented to the group describing the size and condition of the existing houses, a profile of the existing tenants, and a consultant's report outlining options for daycare. The Working Group adopted a number of principles to guide the development of the site, and based on these principles, has put together a concept plan. Staff have also proposed principles for development and a concept plan for the block. DISCUSSION Existing Site Development and Context The block designated as Mole Hill is bounded by Comox Street, Thurlow Street, Pendrell Street, and Bute Street. The site RM-5B zoning permits a maximum floor space ratio (FSR) of 2.75. The existing scale of development on the City-owned property is well below that, with most sites containing 3,000 - 4,000 sq. ft. houses at about 0.8 FSR. The exception is the Strathmore, a privately owned apartment building at the corner of Bute and Comox, which at 6 storeys contains 99 units at about 5.0 FSR. The City owns a majority of the block, including 28 houses, 1 temporary daycare facility, and the vacant sites at 1132 Comox Street and on the corner of Comox and Thurlow Streets. Of the 28 houses, 20 are listed on the Heritage Register. Although the 8 remaining non-listed houses were built at approximately the same time, modifications to the exteriors, including building additions, have compromised the heritage merit. Only the Watson House on Pendrell Street has been fully renovated and it is currently being used as a Special Needs Residential Facility. The site plan below illustrates building locations, ownership, and whether the building is listed on the Heritage Register. Figure 1. Site Plan - Existing Situation Areas of Agreement Between Staff and the Working Group Summary location for Dr. Peter and the YMCA Daycare facilities; maintaining heritage listed houses on their current site; consideration of demolition of substandard building additions; creating a pedestrian environment in the lane; minimizing parking by removing rear yard rental parking; preserving open space in the rear yards, including space for community gardens; developing heritage gardens; maintaining existing tenants, including an option to relocate off-site during renovations; and banking heritage density. Since last summer, the Working Group and staff have achieved consensus on a number of significant items. Two facilities, both represented by members on the Working Group, have been located on the block. A site for the Dr. Peter Centre has been reserved on the vacant lot at Comox and Thurlow Streets, as well as the rear portions of the two lots to the west. The replacement of the existing childcare centre and the addition of 28 new family childcare spaces have been accommodated in an innovative way, making use of the current location at 1133 Pendrell, as well as the existing homes and rear yards at 1129 Pendrell and 1137 Pendrell. The project can be achieved in two phases through construction of a new custom designed childcare facility (25 spaces) and a new 3 bedroom infill home suitable for 7 spaces of licensed family childcare. The second phase would be the conversion of the two existing houses into five dwelling units, three of which would be suitable for 7 licensed family childcare spaces each. With the support of the Working Group, both Dr. Peter and Phase I of the childcare facilities have been expedited, reported, and approved separately by Council. With respect to the childcare facility, Council also approved a proposal from the B.C. Wood Specialties Group to construct the new facility and infill home, in return for use of these buildings for a two year period as a display centre for wood value added products. As part of this first phase, 1129, 1133, and 1137 Pendrell must be consolidated into one parcel to meet zoning requirements. The existing houses must be upgraded to meet certain life safety Building-Bylaw requirements, including sprinklering. It also makes sense to proceed concurrently with some minor heritage and maintenance work which includes revealing the original wood siding, possible re-roofing with non-combustible wood shingles to be donated through the B.C. Wood Specialities Group, and rebuilding of the porches if required. The Manager of Real Estate has advised that this work is within the regular scope of what is necessary to extend the useful life of these houses, but that the immediacy of the timelines for the B.C. Wood Specialities Group project is simply accelerating the timeframe for the work. Council is therefore asked to endorse expediting this work in recommendation "E". The conversion of the existing houses (Phase II of the childcare development) will not proceed until a plan for tenant relocation is in place and the funding for work related to making the units suitable for licensed family childcare is secured. Possibly the most significant area of agreement is on maintaining heritage listed houses on their current sites, with the possibility of only minor movement on their lots. We have also both agreed to consider demolition of building additions, if they are unable to provide safe and adequate accommodation, they do not enhance the original heritage character, and it is too expensive to renovate and/or not possible to upgrade to code. We have reached consensus on the concept of creating a more comfortable pedestrian environment in the lane, with the detailed design to be completed in the next phase. The working group recommended a reduction in the width of the lane dedication. A narrowed lane dedication would increase the ability of the sites to accommodate infill, such as coach houses, Dr. Peter, and the daycare, in addition to increasing usable open space. There are, however, concerns about location and access to utilities and the sharing of the lane with service vehicles and pedestrians which may require the full existing lane dedication. Staff support narrowing the paved portion of the lane for vehicular travel and providing space for pedestrian walks and utility access behind the paved portion. The design of the lane and its resultant lane dedication width will be the subject of a report back to Council as suggested in recommendation F. Staff and the Working Group also agree on the notion of minimizing parking requirements. While adequate parking would be provided for Dr. Peter, Watson House, and the daycare, staff and the Working Group would like to see the rear yard rental parking removed in order to maximize open space and minimize lane traffic. Existing resident permit parking (approximately 12 spaces) would be retained. No decisions have been made on specific traffic calming and greenway designs as they will be addressed in the next phase of planning. It was agreed however, that overhead wiring would not be undergrounded because of the cost (approximately $550,000) and because of its historical character. Money has been set aside in existing capital budgets for necessary upgrades to existing sewer lines in the lane. Approximately $400,000 for special lane treatments and Comox Street greenway development have been allocated in the Staff and Working Group Options, but not in the High Return Option. Both staff and the Working Group feel that the plan should increase the open space currently available to residents and the public by preserving a significant amount of the rear yards as heritage gardens (showcasing heritage plantings and landscape designs that have historical connections to the block) and community gardens. Reducing rear yard rental parking will help to achieve this goal. Finally, in accordance with Council's resolution to accommodate existing tenants on-site as renovations proceed, both staff and the Working Group agree that tenants should be given the choice to move off-site during renovations with the option to move back upon completion. As all options are well below the development potential for the existing density, there is an opportunity to create a heritage density bank on-site. This would be done as part of the next phase of planning and be secured through rezoning and heritage agreements. As the amount is quite substantial, representing $6-8 million in todays dollars, it is recommended that once created, it be held in reserve until the heritage density already banked is used up. Even then, we may want to release density incrementally so as not to jeopardize other heritage initiatives. The creation of a bank is strongly supported by both staff and the Working Group. Areas of Different Viewpoints Summary diversity in housing types and tenure; the social and economic mix, including housing for families; possible demolition of some non-listed houses; consideration of residential infill; level of renovations; pace of renovation; and provision of parking Differing viewpoints mainly centre around the Council resolutions of April 2, 1996 which were adopted to guide the planning process. These resolutions included direction that the City's existing policy of mixed communities would be maintained, giving a priority to housing for low-end-of-market rental. The Working Group has passed a motion that would designate all of the City's housing in Mole Hill as "affordable rental". This is defined by the Working Group to mean rental housing similar to the existing unit mix on the block and suitable for the current tenant income levels, and results in a combination of suites rented at $1.00/sq.ft. to existing tenants and $1.25/sq.ft. to new tenants. In the context of the City, the Working Group feels that affordable rental housing in heritage houses is a resource which should be preserved. In the context of the West End, they believe affordable housing in Mole Hill is vital to maintaining a healthy mixed community. Staff, on the other hand, believe that Council intended a social and economic mix on the block, noting that historically the block has had a mix of people. As well, there are only about 20 units now that are suitable for families out of 165 units of City-owned housing. Noting the 25% target in major projects, staff feel that we should do better than 12% in Mole Hill. To achieve income and social mixes, including family housing, staff propose to increase housing diversity and tenures on the block. Respecting Council's commitment to the residents and to giving a priority to low-end-of-market housing, staff believe that at least 96 units (reflecting the total number of residents as of the April 19, 1996 meeting) should be maintained for low-income and low-end-of-market rental. This represents the majority of units and would accommodate all of the 82 tenants now on site in upgraded accommodation and at rental rates suitable to their incomes. In staff's option, two non-listed houses could be demolished for infill sites and 13 houses would be leased for 99 years for single-family or multiple conversion use with an appropriate standard of renovation required in the leases. Where access can be achieved from the adjacent streets, these leased houses would have the potential for "coach house" or side-yard style infill. All of these houses plus the Child Care Facility houses would provide units suitable for families. This results in 26% of the units being suitable for families in staff's option, compared to 14% in the Working Group's option. The possible demolition of the non-listed houses is an issue. The Working Group would like to see all houses on the block retained. While recognizing this is a worthwhile goal, staff feel that it may be necessary to move or demolish some houses because of extremely high costs of renovation, the inability to upgrade to building code, and the inability to provide acceptable living accommodation. This includes a non-listed house and additions at 1157 Pendrell and 1154 Comox, as well as the additions at 1147 Pendrell. The accommodation in these buildings is substandard. They are limited by the layout, and either cannot be brought up to code, and/or would be approximately twice the average cost of renovation to achieve acceptable livability standards. The staff option will keep the non-listed house at 1147 Pendrell, even though the cost is slightly higher, as it was one of the grandest houses on the block and could be once again. It is substantially intact and has a functional internal layout for small units. It would be separated from a small addition and moved to the east side of the site with new buildings added to provide small self contained units. There is an opportunity to pursue non-market funding and Housing staff believe that considering proposed changes to the unit allocation levels and our ownership of the land, we stand a good chance of securing funding. The new construction would be in scale with the existing houses. As well, additional care would be taken in drafting guidelines for the site to ensure both sensitivity and compatibility of design. The level of renovation has also been an issue. The Working Group would prefer a minimal level of on-going renovation in order to decrease costs, maintain existing rents, and limit the economic justification for change. Staff feel that there is a need to provide a standard of housing that is both acceptable to the tenants and efficiently preserves and enhances the resource of the houses on Mole Hill, including important heritage features. This means basic repairs to bring the buildings up to code (or equivalencies) and restoring the houses to a level where only minor maintenance will preserve these structures for the next 30+ years. These are not full "heritage level" restorations, but rather exterior repairs and seismic upgrading, as well as new wiring, heating, gyproc, flooring, plumbing, and sprinklers. The new walls and plumbing would provide an opportunity to enlarge and add bathrooms to most of the smaller units. This was strongly supported by the tenants at their meeting last year and in a recent tenants survey. Original materials will be restored if possible, or new materials will be compatible with the heritage character. Based on the current work to reveal the original siding on 1129 Pendrell, it is important in the future that we fully identify what is there before proceeding with renovations. Costs for this type of renovation/restoration are around $110/sq. ft. A lessor cost option for renovation of $65/sq. ft. which was discussed with the Working Group is not recommended, as it would preserve the houses for a shorter period and would not be as sympathetic to heritage features. For comparison purposes, both options are listed in Appendix E. While staff agree with parking relaxations in accordance with the provisions of our Parking By-law, we do not support eliminating it for the residential units entirely as recommended by the Working Group. At present, 10% of the tenants use rear yard rental parking. In both the staff and high return options, facilities, non-market, market, and condominium developments would provide underground parking as required by the by-law. With heritage relaxations, we could reduce the parking requirements on-site and still achieve the goal of having a significant amount of the rear yards for open space. The summary table in Appendix E projects a supply of 66 parking spaces under the staff option. This is conservatively expected to be 30 spaces short of the demand. However, this deficiency may encourage reduced care ownership, thereby reducing the shortfall somewhat. The last major area at issue centres around the phasing-in period for renovation and redevelopment in the block. The Working Group would like to see the renovation done incrementally over time, paid for by revenue generated from rental income. To that end, they would like to see an increase in the units rented. While renting some of these units would be possible, staff note that the vacant units allow existing tenants to be moved easily during renovations. Staff also feel that extending the renovation period over a significant number of years will result in increased maintenance costs, increased "eventual" renovation costs, and decreased rental revenue over that period of time. There is also an increasing danger to life safety and house fires, given the condition of the wiring. In addition, many tenants are anxious to see renovations completed so that they can enjoy upgraded living accommodation. Concept Plan Options Over the past 3 to 4 months, a number of concept plan options have been reviewed by both staff and the Working Group. Consultants have been hired to test and illustrate these concept plans and preliminary economic analysis has been undertaken to compare in order of magnitude the approximate returns which might be possible from the options. None of the economic returns include the unencumbered land value of $18 million. No cash flow analysis has been done to take into account the cost of borrowing money or holding properties while awaiting redevelopment, or the different tax revenues which would be generated from each option. Analysis of all options assumes that the City will receive $900,000 for the prepayment of the lease for the Dr. Peter Centre site. Based upon the parameters outlined above, the following options have been analysed, as summarized in Appendix E. 1. Working Group Option (see principles and plans in Appendix C) Based on principles adopted over the last year, the Working Group supports an option which locates the Dr. Peter Centre and a new daycare facility, retains all houses, and renovates the 165 existing units as "affordable rental" housing. Other than the facilities, they do not support any infill at this time or any parking other than that for the facilities and private owners. Instead, they prefer to reserve the rear yards for public open space, including both heritage and community gardens. At their own initiative, the Mole Hill Living Heritage Society (represented on the Working Group) has secured funding from the Bronfman Foundation to pursue development of both heritage and community gardens. The Working Group would prefer to see renovations initially limited to exterior maintenance and internal repair as required. More comprehensive upgrading such as bathrooms would be undertaken as the cash flow allows, possibly taking over 20 years. While this option does not initially cost more than the site generates, it does not provide improved living conditions in a timely manner, it will result in higher management costs, and renovation costs will rise as the houses continue to deteriorate over this extended period of time. To complete renovations in a timely manner to a level supported by staff, money would have to be borrowed from the Property Endowment Fund. If this was done, it is estimated that it could result in a negative return of about $4.0 million at the rental rates described for affordable rental housing. Possible revenue from outside groups and facilities who are prepared to take a house and pay for renovations could decrease this loss. If the lower renovation cost of $65/sq.ft. is used along with lower rental rates, it is estimated that it would result in a negative return in the order of $2 million. However, as noted earlier, this is not based on a cash flow analysis and the actual costs to the City would be greater. 2. Staff Option (see principles and plans in Appendix B) Rather than invent an entirely new option, staff have tried to build on the strengths of the Working Group's principles and concept. Dr. Peter and daycare facilities remain the same and instead of adding a lot of new development, social and economic diversity have been increased by providing more diversity in unit types and tenure. Residential infill is limited in scale and scope, recognizing shared objectives for open space. The option is based on principles which incorporate Council's previous resolutions as well as information learned through the process. Rather than having all of the 165 existing units as "affordable rental" as the Working Group suggests, approximately 100 could be reserved for low-income and low-end-of-market rental. The remainder would be a combination of single family houses for long term lease, infill housing, and multiple conversion dwellings, all at market rates. Over 25% of all units would be suitably sized for families. In the end, a balance is achieved with approximately of the housing for low-income rental, for low-end-of-market, and for market housing. The majority of the houses are maintained on their lots, with only two of the non-listed houses demolished. One of these houses (at 1157 Pendrell in conjunction with a relocation of 1147 Pendrell) would provide a site for non-market housing. Approximately 50 small, self-contained units on these and nearby sites would provide much improved accommodation for current residents on fixed incomes, at a scale and design which would be sympathetic to existing houses. A central area is set aside for community gardens and is directly linked to Nelson Park. Parking is provided for facilities and market housing, with parking provided for low-income and low-end-of-market housing at reduced requirements as allowed by the Parking By-Law. Heritage and community gardens would be accommodated in existing on-site open space, which would be minimally impacted by the possible addition of up to 10 infill houses. All renovations take place within the next five years and this option will result in a return of approximately $4.0 million. 3. High Return Option (see plans in Appendix D) An option that seeks to maximize the return has been developed by staff to demonstrate what can be achieved within the Council resolutions. Again, Dr. Peter and daycare facilities remain the same, with as many of the houses as possible leased for 99 years and with the potential for coach house infill. Additional market housing is accomplished by redeveloping the 1147-1157 Pendrell sites with condominium units in a two and one-half storey building. Houses at the Thurlow and Pendrell corner are moved or demolished to make way for a non-market three and one half storey building. Two houses on Bute Street, and two houses on Comox Street are used to provide affordable rental renovations. In this option, four houses are demolished, 2 or 3 additions are removed, and all of the buildings at 1147 and 1157 Pendrell Street are demolished. This option can be completed in 2 or 3 years. The approximate return of this option has been estimated at about $7.0 million. This option produces the most revenue, keeps the ongoing management of the houses to a minimum, and reduces the risk of cost over-runs during upgrading by keeping to a minimum the number of houses upgraded and managed by the City. It also produces 62 new studio units that can be rented at the shelter allowance, allows for heritage or community gardens along the greenlink and behind the Watson House, and can be completed quickly. However, this option is not recommended as it demolishes up to 4 more unlisted houses than the staff option, moves one C house, provides less space for heritage and community gardens, provides no pedestrian/greenway treatments, dramatically changes the character of the units for existing tenants and does not provide a good diversity of housing types or locations for those tenants. The three and one half storey studio apartment building on the corner of Thurlow and Pendrell is a concern given the scale of the adjacent houses, but with its location on Thurlow, it may be justified as a bookend to the block. Vancouver Heritage Commission Comments The Heritage Commission has provided comments and a resolution for consideration included as Appendix G. Vancouver City Planning Commission Comments The Commission has reviewed this report and will submit their comments for consideration prior to The Standing Committee of Planning and Environment. Working Group Comments The Working Group s comments are included in Appendix F. Outstanding Work Items In Phase II, staff will continue to work with the community to further refine the concept plan into a plan for implementation. In this phase, we will develop a plan and timing for renovation of houses and a strategy to relocate existing tenants. We will look in detail at the cost and level of renovations for each house, including the addition of washrooms and the rehabilitation of interior and exterior heritage features. It will be important to undertake some selective exploratory work to better understand and preserve the heritage merit of the non-listed houses. We may select a couple of houses as test cases in order to improve the accuracy of overall economic analysis of the block. Since it is necessary to upgrade the houses adjacent to the new daycare, this work item will need to be advanced to coincide with the daycare construction. To preserve the heritage character of these houses staff will need to define the level of interior and exterior renovation, as well as a strategy for long term retention. At the same time, an open space plan will be needed to detail the pedestrian laneway, internal green links, community gardens, and heritage gardens. Guidelines for infill housing opportunities based on the City's RT-7 guidelines will be developed. Staff analysis of facility and housing developments will also be required. In addition, staff will be involved in making application for and supervising non-market housing development. The majority of the planning work will be undertaken by staff over the next year, with ongoing involvement over the several years of renovation and redevelopment. The public process will continue throughout the planning program. ENVIRONMENTAL IMPLICATIONS Both the Working Group and staff's concept plans are expected to benefit resource depletion and landfill impacts by renovating the majority of the buildings. Surface run-off will also be minimized by maintaining large amounts of permeable surfaces. CityPlan Implications Both the Working Group and staff's concept plans will have a beneficial effect of preserving ground-oriented units near Downtown and providing greenways, community gardens and facilities. The staff option will also increase the amount of family housing, incorporate innovative infill, provide new forms of housing, enhance heritage features, and produce a mixed community. SOCIAL IMPLICATIONS Both the Working Group and staff's concept plans provide a range of housing and services that are needed in the neighbourhood, Downtown, and City. Badly needed health and daycare facilities are included and community/heritage gardens incorporated. In staff s concept, a range of housing type and tenure will allow for a mix of people and incomes. Labour training programs are being investigated and will be included in Phase II. FINANCIAL IMPLICATIONS The unencumbered land value of this property is estimated to be $18 million. This value could produce an income stream of about $1 million/yr if invested at a 6% rate of return. However, this would not provide public benefits such as the childcare facility, non-market housing, public open space, greenway development, and a special needs residential facility. Under the principles already established by Council, preliminary analysis indicates the maximum return could be in the order of $7 million. The option recommended by staff would result in a return of approximately $4 million. This does not include any potential revenue from selling banked heritage floorspace estimated at $6-8 million. Staff estimate that consultant funds of $45,000 and public process funds of $5,000 will be needed for Phase II of planning for Mole Hill. Half of these funds will be needed in 1997, with the Contingency Reserve Fund being the source. The remaining $25, 000 would be included in 1998 departmental budgets. All staff for Phase II will come from existing departmental resources. CONCLUSION Staff recommend that Council adopt staff's principles and concept plan for development of Mole Hill as the basis for the next phase of planning. It is also recommended that the next phase commence immediately with funding of $50,000 for consultant and public process. * * * * Vancouver City Council Resolutions on Nelson Park April 2, 1996 - That the block between Comox and Pendrell Streets, from Bute to Thurlow Streets, be named "Mole Hill." - That the Mole Hill lands be recognized as a City resource and that the land not be sold in whole or part. Further, that leasehold arrangements can be considered. - That all existing residents will be accommodated on site as renovation takes place. - That the City's existing policy of mixed communities will be maintained. Further, that priority be given to housing for low end of market rental. - That all the City-owned heritage-listed buildings ("A", "B" and "C") be retained. Further, that the City's existing heritage policies will apply. And further that, in the event that buildings are moved or infill occurs, the existing scale and streetscape of Mole Hill should be respected. - That revenues for renovation of the housing will be generated from the site. Further, that transfer of density policy may be used to achieve value from the unused development potential of the site. - That the policies of CityPlan will be used as the basis for demonstration options, including innovative infill, new forms of housing, community gardens, greenways, etc. Further, that lane and/or street closures may be considered. - That other options for use of the buildings and land will be considered, such as daycare, hospices, parks and other facilities that meet City needs. - That staff will be asked to develop options for a labour training program as the site is renovated. - That staff report back on a public planning process. Staff Principles for the Redevelopment of Mole Hill 1. As a priority, Monies generated by the site, including long term leases should be used on the site including Comox Street and the lane. This should continue until renovations and unit upgradings are completed. In addition, we should investigate other potential sources of funding. 2. Produce a reasonable return on the block, including some consideration of heritage density. 3. Renovations to preserve city asset and minimize costs over long term, recognizing heritage value where practical. Equivalencies should be sought under the building by-law. 4. All renovations to respect heritage exteriors and be as sensitive as possible to heritage features in the interiors. 5. Upgraded units to provide as many self-contained units as possible given physical constraints. 6. All existing tenants accommodated on site. 7. A minimum of 96 units for low income and low end of market rental. 8. Accommodate Dr. Peter Centre on site. 9. Construction of a new daycare facility with a minimum of 25 spaces plus 28 spaces of family daycare, some of which will be located in existing houses. 10. Maintaining the listed heritage houses on their current sites; and retaining additions, subject to ability to provide upgraded accommodation without excessive costs. 11. Maximize the number of housing units on the block in existing structures and in new infill buildings, within the limits defined by the livability of the units, the heritage character of the block, and objectives for housing, social, and economic diversity. 12. Housing Diversity - provide a variety of housing types and sizes in existing buildings, concentrating on providing larger units (suitable for families) in new infill. 13. Social Diversity - provide housing opportunities for a wide range of people of all ages, including families with children. 14. Economic Diversity - preserve at least half of the housing for lower incomes, but also provide housing opportunities for middle and higher income groups. 15. All new development should respect the scale and be sympathetic to the character of the existing houses. 16. Except for vacant sites, or sites made vacant by demolition, all infill should be located in the rear yards. Where possible, a minimum distance of 16 ft. should be achieved from existing buildings. 17. Substantial trees should be retained in place if possible, or replaced with more traditional species if endangered by new development. 18. Where possible, try to maintain open space around the mid-block of the lane and around the vacant "green link" to the park. 19. In open areas, priority should be given to community and heritage gardens. 20. Incorporate the City Greenway on Comox Street. WORKING GROUP PRINCIPLES Houses on the Heritage Inventory: Intent: Wherever possible, the intent is to retain all houses on the heritage inventory in their current location. Principle: All houses on the heritage inventory will remain in place although some movement may occur on the lot. Vote: 10 out of 10 - Carried Unanimously. Houses not on the Heritage Inventory: Intent: The intent is that all non-listed city-owned houses on the block not including additions be retained, but may be moved on the block. Principle: That all non-listed City-owned houses, not including additions, be retained on the block, but may be moved on the lot. Vote: 10 out of 10 - Carried Unanimously. Demolition of Building Additions: Intent: That demolition of building additions will only be considered under certain situations. The additions at 1154 Comox Street, 1147 and 1157 Pendrell Street would be considered for demolition. Principle: That demolition of building additions will only be considered if they are unable to provide safe and adequate accommodation, they do not enhance the heritage character, it is too expensive or not possible to bring the addition up to fire and building codes, and if the renovation would require further upgrades within a 20-30 year period. The additions at 1154 Comox Street, 1147, and 1157 Pendrell Street would be considered for demolition. Vote: 10 out of 12 - Principle Adopted Principle: If there is any loss of rental units through demolition of housing additions, that the number of units be replaced one for one. Vote: 10 out of 10 - Carried Unanimously Daycare Facility: Intent: That 3 out of the 4 houses at 1127, 1129, 1133 and/or 1137 Pendrell Street can be considered to incorporate a new daycare facility and retain houses for family daycare and housing units. Principle: That the current child care facility be replaced and has the ability to directly access the link to Nelson Park between 1126 and 1136 Comox Street, and take advantage of houses which are appropriate for family daycare, currently identified as 1127, 1129, 1133 and/or 1137 Pendrell Street. Vote: 10 out of 11 - Principle Adopted Dr. Peter Facility: Intent: That the Dr. Peter Centre be located on Mole Hill. The design of the facility will meet their program needs while being sensitive to the community by fitting within the scale and context of the block. Principle: That the Dr. Peter Centre be located on the vacant Thurlow site as shown in option "D-7" and this facility be designed to minimize the impact on the south side of the heritage B houses at 1114 and 1110 Comox Street. Further consideration will be given to investigation of encroachment into the lane and reducing impact on the 2 houses adjacent the facility. Vote: 10 out of 12 - Principle Adopted Principle: That the Dr. Peter Centre and Daycare facilities be sensitive to the heritage houses. Vote: 10 out of 10 - Carried Unanimously Principle: That Dr. Peter and Daycare will be the only non-residential uses on the site. Vote: 10 out of 11 - Principle Adopted Infill Housing: Intent: That residential infill be sensitive to the heritage houses. Principle: That the City's RT-7 and RT-8 guidelines be used as a basis for infill guidelines to the site with the intention of defining an appropriate scale, character, and style similar to coach houses. Vote: 12 out of 12 - Carried Unanimously Housing Types and Mix: Intent: That the current number of low-end rental and other forms of non-market housing be reflected in the concept plan in the current diverse form. Principle: That there be a minimum of 165 affordable rental housing units, similar to the current diverse mix in the community including family or individuals with similar income levels. Vote: 9 out of 10 - Principle Adopted Principle: That the relocation of existing tenants be minimized and those who are moved because of renovations be able to return to their original unit if they desire. Vote: 10 out of 10 - Carried Unanimously Lane Treatment: Intent: That the lane serves community use by having open space, access, and a pleasant atmosphere. Principle: That the lane remain as a link between houses and predominate as pedestrian use with the intent that a minimum of 50% of open space behind the houses be retained as public space. Vote: 12 out of 12 - Carried Unanimously Additional Principles: Principle: That the Working Group accept the BC Woods Proposal to build a daycare facility and that the footprint be designed as indicated in the consultants "scheme B". Further, that Mrs. Rivers and the rest of the neighbourhood be notified about this proposal. Vote: 13 out of 13 - Carried Unanimously Principle: That the Working Group accepts the opportunity for infill housing units at the western end of the block which does not preclude the opportunities for consolidation of open space at the centre and eastern part of the block. Further, that the priority for infill housing is to ensure that 165 units is allocated for low-end of market housing and non-market housing on the block. Vote: 10 out of 12 - Principle adopted Principle: While opportunities for residential infill have been discussed, there will be no infill at this point other than the child care facility and Dr. Peter Centre. Vote: 11 out of 12 - Principle Adopted Principle: Recognizing the potential for public open space in the lane, above ground parking spaces will only be provided for daycare and private residences and underground parking for Dr. Peter Centre. Vote: 12 out of 12 - Carried Unanimously Principle: Recognizing that the lane be designed for pedestrian realm, where the car is permitted to intrude in a limited way: i. The width of the lane be narrowed to the minimum requirements for emergency vehicle use, ii. Traffic calming and other measures be used such as bollards, speed tables, etc; iii. A "safe link" between Nelson Park and the daycare and public open space be provided. Vote: 12 out of 12 - Carried Unanimously Principle: In recognition of the unique historic importance of the block of houses known as "Mole Hill", that it be officially declared a municipal heritage area, and, That a Historic Area Planning Committee be struck to manage this historic resource, and, That a Master Plan and Infill Design Guidelines be developed for "Mole Hill", and, In recognition of the expressed wishes of the community, that the continuity of the streetscapes and the integrity of the blockfaces of this historic resource be preserved and enhanced, with the intention that all of the existing houses be retained, and, In recognition of the block's living heritage, that a mix of community uses be provided, including affordable daycare and a site for the Dr. Peter Centre. Vote: 9 out of 12 - Principles Adopted. REMAINING APPENDICES on file in City Clerk's Office * * * * *