POLICY REPORT

DEVELOPMENT AND BUILDING

Date: April 24, 1998

Author/Local: DThomsett/7796

CC File No. 5305

TO: Vancouver City Council

FROM: Director of Central Area Planning on behalf of Land Use and Development

SUBJECT: CD-1 Rezoning - 1200 Hamilton Street

RECOMMENDATION

THAT the application by Hancock Brückner Eng & Wright Architects, to rezone 1200 Hamilton Street (Lot 21, Block 76, DL 541, Plan 3469 ) from HA-3 to CD-1, to permit a hotel with commercial space, be referred to a Public Hearing, together with:

(i) plans received December 12, 1997;

(ii) draft CD-1 By-law provisions, generally as contained in Appendix A; and

(iii) the recommendation of the Director of Central Area Planning on behalf of Land Use and Development to approve, subject to conditions contained in Appendix B.

THAT the Director of Legal Services be instructed to prepare the necessary CD-1 By-law for consideration at Public Hearing, including a consequential amendment to the Sign By-law to establish regulations for this CD-1 in accordance with Schedule "B" (HA-3); and

THAT, if approved at Public Hearing, the By-law be accompanied at the time of enactment by an amendment to the Noise Control By-law to include this CD-1 in Schedule B to be adopted by Council; and

FURTHER THAT the Director of Land Use and Development be instructed to make application to amend CD-1 By-law No. 7246 for 750 Burrard Street, to reduce the maximum floor space ratio (FSR) from 12.36 to 12.04, and this application be referred to a Public Hearing, and that the density transfer covenant for 1228 Richards Street be amended to reflect the required density transfer.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

· Yaletown policies are embodied in the HA-3 District Schedule (Yaletown Historic Area).

· Transfer of Density Policy and Procedure, adopted January 25, 1983.

PURPOSE AND SUMMARY

This report assesses an application to rezone a vacant site at 1200 Hamilton Street from HA-3 Yaletown Historic District to CD-1 Comprehensive Development District to permit construction of a hotel with ground-floor commercial use. While hotel and other commercial uses are permitted in Yaletown, these uses are limited to an FSR of 3.0 in new buildings. The proposal is to raise the FSR to 5.5 by importing heritage density from the old Public Library site and the old Canadian Linen Building site, both located in the Downtown. The proposed building is no higher than otherwise permitted under HA-3, and has been designed to fit with the character of Yaletown.

Staff support the application because it meets the City's objective of preserving heritage buildings through heritage density purchases, and the building would appear to be no larger than if developed with mixed use under HA-3. Furthermore, hotel use is considered desirable in Yaletown and the building would re-establish a piece of the streetscape that was lost through fire.

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DISCUSSION

Use: While some local residents have expressed concern about the proposed hotel use, this use, along with other commercial uses, is permitted as an outright use under HA-3. Hotel use is also considered desirable in Yaletown in meeting the objective of introducing more activity-oriented uses.

Several residents have requested that the building not contain a cabaret, similar to the Bar None on the adjacent site. In response, the applicant has agreed to restrict the ground-floor commercial uses so that Cabaret and Neighbourhood Public House would not be permitted as principal uses.

The operator will likely wish to install a high-quality restaurant with a lounge. Under the License By-law, a hotel operator can file a liquor license application for a Class A Lounge/Pub, or a Class 2 Restaurant which permits amplified instruments and dancing. The liquor license application would normally be filed at the development application stage, and must be endorsed by Council before the development permit is issued.

The process includes neighbourhood notification and a public information meeting held by the Vancouver Liquor Licensing Commission. The Commission may set conditions on the application, including number of seats, hours of operation and type of entertainment. Experience with these uses in full-service hotels has shown that few problems arise, in comparison with stand-alone Cabarets. Furthermore, the amount of floor area available for this purpose is relatively small, and any of the uses are required to be accompanied by a restaurant, which further reduces the potential for problems. Staff expect few problems with a drinking establishment associated with a high-quality restaurant in a full-service hotel.

Density: HA-3 zoning encourages both the retention of existing buildings with heritage merit, and the introduction of residential uses in mixed-use development by allowing an FSR of 5.0 for either type of development. Without residential uses, new buildings, or existing buildings without heritage merit are limited to 3.0 FSR. The one exception is 5.0 for hotel use in any existing building. A new building which includes only a hotel with commercial uses is therefore limited to 3.0 FSR under HA-3.

The proposal is to increase the density to 5.5 FSR by transferring purchased heritage density to the site. Firstly, a heritage density transfer of 2.0 FSR would bring the building up to 5.0 FSR, or the Yaletown maximum. Secondly, a further heritage density transfer of 0.5 FSR, equivalent to a 10% heritage density bonus, would bring the building up to 5.5 FSR.

Council's Transfer of Density Policy and Procedure, which provides for heritage density transfers within and between most districts in the Central Area, does not apply to the HA-3 District. When the policy was developed, it was considered that HA-3 zoning already had sufficient bonusing opportunities to encourage building retention and there was no need to include it. However, the subject vacant site is unique, and staff believe an exception can be made, given the proposal otherwise meets the objectives of a heritage density transfer.

Staff support a 2.0 FSR density transfer that would result in a building no larger than could otherwise be built under HA-3 (albeit mixed use with residential). Staff also support a further 0.5 FSR density transfer. This 10% heritage density bonus provision is provided for in other zoning districts in the Central Area, but was left out of the HA-3 Schedule because it was felt the extra bonus was not needed beyond the bonus provisions already provided. However, staff also support this extra density transfer because it can be accommodated within the building by providing a smaller internal courtyard, and because the purchased floor area further supports the City's heritage objectives.

Staff note that the density to be transferred comes from two heritage donor sites - the old Public Library site at 750 Burrard Street, and the old Canadian Linen Building site at 1228 Richards Street. The former requires an amendment to the CD-1 By-law that applies to that site, and staff propose this be dealt with at the same public hearing as the subject rezoning. The latter requires an amendment to the density transfer covenant, and this will be initiated by staff. The applicant has purchased both, subject to approval of the rezoning.

Form: (Note Plans: Appendix D) The main area of concern raised by local residents, and particularly by residents in the renovated building immediately to the north, is that the proposed building, at seven storeys, is too high. However, the proposal fits within the regulations of the HA-3 which permits a height of 21.4 m (70.2 ft.) (plus elevator machine room), and does not permit front, rear or side setbacks. Even with a significant reduction in FSR, with a larger internal courtyard the facade as seen from across the street could be the same.

The proposal includes recesses at the ground level both to provide weather protection and architectural interest. Staff support excluding these recesses from the FSR calculations to a maximum of 60 m² (646 sq. ft.), as reflected in the draft CD-1 By-law.

Staff support the form of the proposed building in which the seventh storey is set back, and the architectural piers (wide columns) reach the ground typical of old warehouses in Yaletown.

CONCLUSION

The rezoning application for 1200 Hamilton Street to build a hotel with commercial uses at a density of 5.5 FSR is supported by staff because the purchase and transfer 2 090 m² (22,500 sq. ft.) of heritage density meets a City objective to preserve heritage buildings. Furthermore, the proposed building would be no higher, deeper or wider than otherwise permitted, the hotel use is desired in Yaletown and the building is designed to fit with the historic character of the area. Planning staff recommend that the application be referred to a public hearing and that it be approved, subject to the conditions of approval set out in Appendix B.

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DRAFT CD-1 BY-LAW PROVISIONS

Use · Hotel.

· Retail, Office and Service Uses except that Cabaret and Neighbourhood Public House are not permitted.

· Accessory uses customarily ancillary to Hotel.

· Condition of use: Except for Hotel, all other uses, including accessory uses customarily ancillary to Hotel, are limited, in total, to a maximum of 409 m² and must be located on that portion of a storey having an elevation within 1.5 m of fronting street grade.

Density · Maximum floor space ratio (FSR) of 5.5 based on calculation provisions of the HA-3 District Schedule, except that, to the satisfaction of the Director of Planning, building recesses at ground level may be excluded from FSR calculations to a maximum of 60 m² (646 sq. ft.).

· Amenity areas, to a maximum floor area of 150 m² (1,615 sq. ft.), may be excluded from FSR calculations provided the areas are open to use by employees.

Height · A maximum of 21.4 m (70.2 ft.).

Parking · Parking to be provided in accordance with the Parking By-law except

parking for Hotel is to be provided per DD requirements of the Parking By-law, and parking for Retail, Office and Service Uses is to be provided per HA requirements of the Parking By-law.

Acoustics · Provide Acoustical Provisions as per the RM-4N District Schedule.

Yards · No front, rear or side yards are permitted.

APPENDIX B

Page 1 of 2

PROPOSED CONDITIONS OF APPROVAL

(a) THAT the proposed form of development be approved by Council in principle, generally as prepared by Hancock Brückner, Architects, and stamped "Received City Planning Department, December 12, 1997", provided that the Director of Planning may allow minor alterations to this form of development when approving the detailed scheme of development as outlined in (b) below.

(b) THAT, prior to approval by Council of the form of development, the applicant shall obtain approval of a development application by the Director of Planning, who shall have particular regard to the following:

(i) Design development to more effectively reflect a contemporary form, compatible with the heritage vernacular within the area, through refinements to exterior detailing and finishes;

(ii) Design development to take into consideration the principles of Crime Prevention Through Environmental Design (CPTED) having particular regard to reducing opportunities for:

Theft in the underground parking. Note: Theft from and of auto is very prevalent in the downtown area. This can be alleviated by providing full separation of commercial and hotel users including separate gating, elevator and stair use. The use of the third level as area for valet parking would not be considered positive. An alternative is to use the first level as valet parking, and move the security gate to the entrance of the second level.

Break and enter. Note: This can be achieved by routing commercial underground users directly outside rather than into the hotel lobby (in coordination with the fire department). Access from the elevator to the hotel floors must be limited to hotel patrons only. The service elevator should only be accessible by key.

Mischief in alcoves. Note: Exits on the lane should be designed so an alcove is not created. This can be achieved by moving the exit doors so they are flush with the building.

Fear in the underground by improving visibility and security in accordance with section 4.12 of the Parking By-law.

APPENDIX B

Page 2 of 2

(iii) Clarification is needed regarding where the stairs from Hamilton Street go up to;

(iv) Reference to Mainland Street adjacent to the site is to be deleted from the plans, as this is a City lane;

(v) The canopy proposed over the lane is to be deleted;

(vi) The canopy proposed on Davie Street adjacent the lane must be set back a minimum of 0.61 m (2 ft.) from the face of the curb, and the Hamilton Street canopy must provide a minimum 0.61 m (2 ft.) clearance from the existing power poles;

(vii) Arrangements to the satisfaction of the General Manager of Engineering Services and the Director of Legal Services for encroaching cornices;

(viii) Arrangements to the satisfaction of the Director of Planning and the Director of Legal Services to ensure access to the amenity areas (game room/lounge, exercise room and steam room) by employees; and

(ix) If payment in lieu of parking is pursued, it will be supported based on the development being short a maximum of 18 parking spaces, noting that a provision of two sets of tandem valet parking spaces will be supported although the locked-in set of tandem spaces cannot be counted as part of the parking provision.

(c) THAT, prior to enactment of the CD-1 By-law, the registered owner shall:

(i) Make arrangements to the satisfaction of the General Manager of Engineering Services for provision of street trees adjacent the site;

(ii) Make arrangements for all electrical and telephone services to be undergrounded from the closest existing suitable service point; and

(iii) Provide a soils remediation plan in the form of an approval in principle from the Ministry of the Environment.

APPENDIX C

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ADDITIONAL INFORMATION

Site, Surrounding Zoning and Development: This 836 m² (9,000 sq. ft.) site is comprised of one parcel on the south-west corner of Hamilton and Davie Streets in historic Yaletown. The site has a frontage of 22.9 m (75 ft.) and a depth of 36.6 m (120 ft.) and slopes southward from Hamilton Street by approximately 1.3 m (4 ft.). The site is vacant but was previously occupied by the six-storey Wm. O'Neil Company warehouse, circa 1910 that was lost due to a fire and demolition.

The site adjoins a three-storey building to the west that contains the Bar None Cabaret. Across Hamilton Street to the north is a seven-storey, mixed-use commercial/residential building (the Murchie's Building). Across Davie Street to the east is a five-storey mixed-use commercial/residential building. Other buildings in Yaletown range from three to seven storeys. Across the lane to the south is a 23-storey residential tower with commercial at grade, built under CD-1 zoning. Yaletown Square Park is located to the south-east of the site.

Proposed Development: The applicant describes the proposal as a "boutique hotel", being a "small scale, high quality, personally operated lodging". It would be operated by Kimpton Hotel and Restaurant Group Inc., operator of other similar hotels in Washington, Oregon and California. The proposed building is seven storeys, with hotel lobby and restaurant/lounge and/or other commercial uses on the ground floor, and a 98-room hotel above. An interior landscaped courtyard is located on the third floor. Three levels of underground parking are accessed from the lane to the rear, as is the pedestrian access to the hotel lobby.

The architecture, while being contemporary, is designed to fit the prevailing historic character of Yaletown, including the use of a cornice at the sixth floor, heavy masonry piers and steel columns. Building finish is brick.

Heritage Donor Sites: The heritage density is being purchased from two sources: the old Public Library site at 750 Burrard Street - 752 m² (8,092 sq. ft.), and the old Canadian Linen Building at 1228 Richards Street - 1 339 m² (14,408 sq. ft.). Prior to enactment of this rezoning, if approved, the CD-1 By-law for 750 Burrard Street, and the density transfer covenant for 1228 Richards Street will both need to be amended to reflect the reductions in transferrable density.

Public Benefit: The proposed heritage density transfer onto this site will assist with the City's objective of preserving buildings on the Vancouver Heritage Register.

APPENDIX C

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Environmental and Social Implications: The proposed rezoning neither contributes to nor detracts from the objective of reducing atmospheric pollution. There are no major positive or negative social implications to this proposal. There are no implications with respect to the Vancouver Children's Policy or Statement of Children's Entitlements.

APPENDIX D

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COMMENTS FROM THE PUBLIC, REVIEWING AGENCIES

AND THE APPLICANT

Public Input: On January 17 and 18, 1998, the developer hosted an open house at the Round House Community Centre. A total of 142 people attended the open houses. Of these, 80% were local residents, and 20% were merchants or business people in the Yaletown area. Comments cards were made available. The bulk of the comments received were in favour of the proposal, both in terms of the boutique hotel concept and the architecture. Negative comments centered around two issues. The first is residents' disenchantment with the Bar None cabaret abutting the subject property and a wish for assurance that the proposed hotel will not have a similar facility. The second is from residents in the Murchie's building to the north, and the Hamilton building to the east, some of whom purchased units based on a previous development application sign on the site that referred to a proposed one- to two-storey building that was never built. These residents are disappointed by the likelihood of a building constructed to take advantage of the maximum allowable height under HA-3.

A notification letter was sent to nearby property owners on January 22nd, 1998 and a rezoning information sign was posted on the site on January 21, 1998.

Staff received four phone calls, six e-mails and two letters from residents, and two people came to City Hall to view plans. Of these, two people totally supported the proposal, while others expressed concerns about proposed height, potential parking problems and a wish that there be no bar or pub in the building. Several people were reasonably satisfied following explanations of permitted uses and height under current HA-3 zoning and availability of pay-in-lieu for parking for commercial uses in this district.

Comments of the City Engineer: The City Engineer has no objection to the proposed rezoning, provided that the applicant complies with conditions as shown in Appendix B.

Comments from the Vancouver Health Board: Health Board staff advise that acoustical criteria need to be provided as part of the CD-1 By-law, noting that the building will abut an existing club, and sound/vibration attenuation will need consideration. They further note that sound from rooftop units on the building may impact the adjacent residential tower.

Urban Design Panel Comment: The Urban Design Panel reviewed this proposal on January 14, 1998, and offered the following:

APPENDIX D

Page 2 of 3

"The Panel unanimously supported this application and was also appreciative of the excellent quality presentation. There were no concerns about the proposed use, form and density. The increased FSR was considered warranted and supportable.

The Panel's main concerns related to the building expression. There was a desire to see it go strongly in one direction or the other in terms of either emulating an historic building or taking on a more contemporary character. There were concerns that there is some ambiguity at present. One Panel member thought the scale was too residential and more like Gastown than Yaletown. The Panel indicated, however, that the design could be improved considerably with refinement, with a contemporary form expressed more effectively. The Panel indicated it would wish to see the application again at the Development Application stage."

Vancouver Heritage Commission: The Commission resolved:

"THAT the Vancouver Heritage Commission is supportive of the application for 1200 Hamilton Street, including the proposed FSR of 5.5 (5.1 FSR for hotel use);

THAT the Commission commends the applicants for good contextual design, but requests that the exterior detailing and finishes of the structure make it clear that the building is contemporary, not historic; and

THAT the Commission is not opposed to a proposed payment to the City in lieu of providing eleven parking spaces."

Comments of the Applicant: The applicant has been provided with a copy of this report and has provided the following comments:

"We have reviewed the Policy Report to Council and we concur with its contents. Applicable prior-to items have already been resolved in part and remaining items will be resolved at the Development Permit stage.

We have appointed Acoustical and Traffic Consultants who will be present at the Public Hearing to respond to any queries which may arise.

Generally we feel that this re-zoning [sic] would offer several public benefits to the City including:

APPENDIX D

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· By transferring heritage density from a donor site to this site this rezoning will assist in the City's stated public objective to preserve heritage buildings, where required bonus density for the rehabilitation of the heritage buildings cannot be used on that site.

· The intent as stated in the HA-3 Zoning Schedule is to produce a more contemporary mix of commercial, industrial, and residential uses, and to introduce more activity-oriented uses into its area. The Hotel use is a permitted use in Yaletown, and since a hotel requires a certain minimum size in order to operate efficiently, this rezoning for essentially a single hotel use ideally fulfils the HA-3 intent by adding a contemporary use which is highly activity-oriented.

· Initial contacts with neighbouring merchants indicated that there is considerable support for this application which will provide significant economic synergies for the entire Yaletown precinct.

· The project will be a boutique hotel with a unique historic character embodied into its entire fabric that is highly compatible with the special character of Yaletown. This hotel concept has already been successful in other major North American cities and is ideally suited to Yaletown."

APPENDIX F

APPLICANT, PROPERTY, AND DEVELOPMENT PROPOSAL INFORMATION

APPLICANT AND PROPERTY INFORMATION

Street Address	1200 Hamilton Street
Legal Description	Lot 21, Block 76, DL 541, Plan 3469
Applicant	Hancock Brückner Eng & Wright Architects
Architect	Hancock Brückner Eng & Wright Architects, Paul Merrick Architects Ltd.
Property Owner	Thornhill Homes Ltd., Chian San Chow, Marina Chang, Frances Chow, Chow & Sons Land Inc
Developer	Trilogy Burrard Development Corporation

SITE STATISTICS

	GROSS	DEDICATIONS	NET
SITE AREA	836.1 m² (9,000 sq. ft.)	-	836.1 m² (9,000 sq. ft.)

DEVELOPMENT STATISTICS

	DEVELOPMENT PERMITTED UNDER EXISTING ZONING	PROPOSED DEVELOPMENT	RECOMMENDED DEVELOPMENT (if different than proposed)
ZONING	HA-3	CD-1
USES	Commercial (including Hotel), Industrial and Residential uses	Commercial uses (including Hotel)
MAXIMUM FLOOR SPACE RATIO	5.0 - new construction with residential or heritage merit building or Hotel in existing building 3.0 - new construction or existing building without residential	5.5
MAXIMUM HEIGHT	21.4 m (70.2 ft.)	21.4 m (70.2 ft.)
MAX. NO. OF STOREYS	N/A	7
PARKING SPACES	Per Parking By-law (payment in lieu available)	Per Parking By-law (payment in lieu OK for 18 spaces)
FRONT, REAR & SIDE YARDS	None permitted	None proposed

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(c) 1998 City of Vancouver