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Author/Local: B. Maitland/7420
CC File No. In Camera
TO:
Vancouver City Council
FROM:
Manager of Real Estate Services
SUBJECT:
Community Amenity Contribution - 4255 Arbutus Street
CD-1 [78], By-Law No. 4634
THAT the proposed conditions of CD-1 Text Amendment approval for 4255 Arbutus Street include a requirement for a Community Amenity Contribution (CAC) of $5,244,000.
The City Manager RECOMMENDS approval of the above.
On July 10, 1990 Council decided that "as an interim policy, Community Amenity Contributions be required only for residential rezoning applications in the Central Area".
On June 13, 1996 Council adopted the Oakridge/Langara Public Benefit Strategy based upon the July 1995 Policy Statement. The Public Benefit Strategy recommended CACs be required for large site residential rezonings in Oakridge/Langara. A Development Cost Levy (DCL) By-Law was also approved for that area on September 24, 1996.
There is no specific Council policy on CACs for individual sites. However, a CAC for Arbutus Village would be consistent with Council practice.
This report recommends that Council require CACs based on Planning standards for new residential sites, as itemized in this report, as a condition of the proposed Arbutus Village CD-1 Text Amendment to permit 142 dwelling units at 4255 Arbutus Street.
Arbutus Village Holdings Ltd., one of the Larco Group of companies, is the owner of the Arbutus Village Shopping Centre, which was built in the mid-1970s (CD-1 By-law No. 4634 August, 1972). It is a community shopping centre located on the west side of Arbutus Street at Nanton Avenue, midway between West 25th and West 33rd Avenues in the Arbutus Ridge area. It was developed as part of the redevelopment of a large tract of surplus CPR land to the southwest of West 25th Avenue and Arbutus Street in the early 1970s, for multiple dwellings. It opened in 1974 and was anchored by Woodward’s Food Floor (now Safeway), along with one level of shops, an upper floor of office space and a partial lower floor with some commercial space and a recreation centre for area residents. It is conveniently accessible to the adjoining multi-family residential community by pathways. The shopping centre site has an area of 2.83 ha (7 ac.) and has a total floor area of 13 713 m2 (147,600 sq. ft.) It was expanded in 1985 by 1 453 m2 (15,640 sq. ft.) and in 1991 by 200 m2 (2,153 sq. ft.). The centre is now fully enclosed and has some 40 shops in addition to Safeway, a liquor store and 493 parking stalls. The site is fully developed to the extent of the existing CD-1 bylaw, with an FSR of 0.49.
There is currently no policy to require a CAC for sites outside specific development areas. However, staff believe the proposed rezoning of Arbutus Village Centre presents needs and opportunities similar to those arising in areas where CACs have been required. Following are relevant comparisons.
The Oakridge/Langara Public Benefits strategy aims to ensure that all new development contributes its fair share towards new public benefits. The analysis looks at current amenity supply and estimates the costs of the needed public benefits. The strategy provides an approach for supplying new amenities through a combination of CACs., direct provision, DCLs and other funding mechanisms. Staff believe a similar combination of in-kind or direct provision and CAC payment to the City is appropriate for Arbutus Village.
Three other city areas outside of the Downtown have DCL districts. The residential/commercial rates are: $53.82/m² ($5.00/sq. ft.) in Burrard Slopes; and $43.06/m² ($4.00/sq. ft.) in the former Arbutus Industrial Lands (Arbutus Neighbourhood). For Oakridge/Langara a levy of $34.98/m² ($3.25/sq. ft.) is approved for office, retail, service and residential uses.
The rezoning of 245 Alexander Street, outside of any defined development area, required an in-kind CAC of housing units equivalent to the full value of the incremental land value generated by the rezoning. This requirement was based on the City’s normal density bonusing approach, as used in heritage projects.
The Neighbourhood Housing Demonstration Program also requires that the full increase in land value after the developers’ normal rate of profit is to be used to contribute to unit affordability.
James Hancock, Architect, has applied for permission on behalf of the owner, to amend the CD-1 By-Law No. 4634 for Arbutus Village, to permit the development of an additional 17 796 m² (191,559 sq. ft.) in two 6-storey multiple dwellings containing 142 dwelling units, to be located on the south edge of the site. The total built area of the existing shopping centre combined with the new residential would be 31 509 m2 (339,159 sq. ft.) with an FSR of 1.14. Existing grade level parking would be replaced with a new underground parkade of similar capacity.
To avoid straining services and amenities in a part of the city where additional residential density is proposed, City policy has been to maintain, and where possible, improve the standard of urban amenities. Desirable amenity levels have been reflected in planning standards which the City seeks to implement in response to significant new developments. In some cases the City must finance some, or all, of the upgrading. However, to the extent that a project generates sufficient economic return to offset these costs, these standards have been the basis for assessing CACs to implement improvements or pay for improvements already provided by the City. Based on the normal CAC requirements from developers of residential rezonings where project economics made CACs possible, the following CACs would be required for this application:
Although a school requirement is not required where there are unlikely to be less than 200 school-age children, should Council wish to have a contribution - and one has been made by a similar adult project - the Bayshore, an estimate of $50,000.00 for the addition of a portable to the neighbouring school is indicated.
These standards represent an objective. They have been applied to major rezonings, and are used as a starting point for staff analysis. Where the economic factors related to a development would preclude the development proceeding if the standards were applied fully, Council has accepted lesser standards on the basis that desirable residential development is a priority. The following commentary assesses the economic situation relative to this development.
As the Arbutus Centre property is fully built out in accordance with the existing CD-1 zoning, any Text Amendment to permit additional development would create new value to the land.
Council at its December 9th meeting (IN CAMERA) in considering a previous report on this matter requested Staff to retain outside expertise to estimate the land value increase for this rezoning and impacts on the shopping centre. Candace Watson, of Watson, Clee & Associates, a real estate appraiser and consultant with 26 years experience in all matters of real estate valuation including shopping centres, carried out an analysis as requested. The results of that analysis are included in Appendix A to this report.
Appendix A illustrates a comparison of the projection by the applicant, Staff’s recommendation, and the opinion of Watson, Clee & Associates. The conclusions drawn by the consultant clearly illustrate that the estimates of land value, and incremental development costs indicated by staff are reasonable, and that there is clearly sufficient room to pay a CAC based on normal City standards.
The land value increase to the developer projected by Staff is $4,100,000, after payment of the recommended CAC of $5,244,000. This is an additional profit to the applicant beyond the normal rate of return which a developer would require in undertaking the proposed residential development, and is more than substantiated by the report of the consultant. The CAC contribution recommended for this application, is therefore, based on Council approved standards for major rezonings, is affordable to the developer, and is reasonable in terms of land value and profits generated.
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