Agenda Index City of Vancouver

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

In December 1991, Council approved the Central Area Plan containing Retail Policies, as outlined in Appendix F, including a requirement for a retail impact assessment for any proposal in excess of 9,290 m2 (100,000 sq. ft.).

In February 1997, Council approved a Policy for Residential Rezonings in the Central Business District (CBD), including policies relevant to developments which would displace office potential within the CBD (see Appendix F).

In February 1992, Council instructed that any recommendations for increased staff or enhanced programs be accompanied by recommendations for cost recovery.

PURPOSE AND SUMMARY

To address primary policy concerns and a rezoning application for the Taubman proposal , this report recommends a complete work program and timing; identifies staff and consulting resources needed to conduct those processes; and recommends funding to be approved for that program to be fully cost recovered from an up-front contribution from the Taubman Company. It also outlines the analysis to be undertaken by staff and consultants to assist Council in assessing these policy questions.

A related proposal is pending for further development of Robson Square. It is most efficient to convene a team and resources to complete the Robson Square policy and rezoning work in concert with similar work on the Taubman proposal. Therefore, staff and consulting resources are also recommended for this work, which would also be fully cost recovered. The work program and timing for the Robson Square proposal will be reported to Council in due course. Up-front contributions will secure the City against non-recovered outlay of funds

for this work. However, if work at any stage on either project does not proceed, staff will not spend the funds and the residual would be refunded to the respective developers.

Figure 1 - Proposed Taubman Development SiteDISCUSSION

1. Background

On September 29, 1998, Council approved a real estate option to the Taubman Company on Block 48 (former Bus Depot) and adjacent lots on the east side of Beatty Street. The City has also agreed to enter into negotiations in respect of possible encroachments over or sale of roads adjacent to Block 48 and an air space parcel or parcels over Queen Elizabeth Theatre Plaza. At the same time, Taubman secured an option on the adjacent Apex site owned by Concord Pacific. This allows the Taubman Company to have a mixed use development considered for that site. Staff have previously outlined the need for a full public policy review prior to considering the details of a proposal in a rezoning application. Council asked staff to report back on the full program, timing and resources needed for this work. In framing this, staff have assumed the objective of full cost recovery as has been the case with other similar projects in recent years.

2. Proposed Development

The Taubman Company proposes to develop these sites to their full combined development potential of approximately 185,800 m2 (2,000,000 sq. ft.) about half of which involves a mix of department store, retail and entertainment uses. Hotel, residential and office uses are also contemplated. Details of the mix, built form and design are expected to evolve as a result of further discussion and public input.

3. Current Land Use Policy

This proposal brings several areas of policy into question, as outlined in the attached memo to Council from the General Manager of Community Services dated September 24, 1998 (see Appendix F), and summarized as follows:

4. Policy Review and Rezoning Process and Management

The process and timing proposed is summarized in this section as outlined in Appendix A.
Prior to considering details of a specific rezoning proposal, the broader policy issues require a detailed economic and urban design analysis and an open public discussion.

A more complete description of project objectives, target markets and potential economic impacts of retail and entertainment uses are an essential starting point for a meaningful discussion. This analysis will be done by the developer's consultants in conjunction with
parking, traffic and pedestrian volume projections, and should begin in December. Staff must also examine the land use and related transportation implications of displacing office


potential. This would be done concurrently. Proposed retail impact assessment terms of reference are attached for Council endorsement in Appendix C. A similar study will be requested from the British Columbia Building Corporation (BCBC) for Robson Square.

It is recommended that a broader review of emerging commercial patterns in the central area be undertaken by a consultant team engaged by the City. That consultant needs also to facilitate concurrence on assumptions and methods used in the site specific retail impact studies to be completed by the developers. This study will shed light on patterns emerging without any large developments and permit staff and Council to evaluate current proposals in that context. To gain perspective, yet ensure familiarity with local trends, a combination of outside and local consultants is proposed. This study involves a depth of original research to document retail, entertainment and pedestrian patterns. This analysis is expected to permit informed evaluation of the track record of previously approved policies. Draft terms of reference in Appendix D are proposed for Council endorsement.

This proposal potentially introduces another centre of gravity in the downtown which raises questions about the future urban structure of the Central Area. A separate consultancy is recommended to examine urban structure issues and provide a framework for a joint urban design study to determine whether there is a design concept for this development consistent with Central Area Plan objectives. The urban structure analysis will look at the projected land use structure based on current policies and trends as compared to the probable situation if another growth centre is established. Draft terms of reference in Appendix E are proposed for Council endorsement.

Clearly there needs to be a thoroughly transparent public process for these proposals. Staff have initiated public consultation by seeking input from business, community and appointed advisory groups on the draft terms of reference for the initial policy work. This dialogue would continue with public open houses and meetings in February and March after draft reports are received from consultants. Staff would report back on policy issues in May based on the results of consulting studies, public input and staff assessments. This would permit Council to address policy questions, determine whether the concept deserves further consideration and set fundamental parameters for a rezoning application. The dialogue begun during the policy review would continue into the rezoning phase.

A rezoning application could be submitted following Council resolution of policy questions. The specific development proposal would then be reviewed in detail by staff and through a public process for report to Council. The rezoning process would likely take eight months leading to a possible public hearing date in February 2000. The rezoning would be handled by the Planning Department Central Area Division with staff involvement from most line departments, through the same process as other major downtown projects, managed through the Major Projects Steering Committee.

The process and management arrangement where practical will follow closely the principles and emerging practices of the new permissions process now being implemented through the Development and Building Review. Key aspects include:

5. Staffing Resources - Budget and Source of Funds

Proposed City staffing and resources to fully complete the policy review and assessment of the rezoning application are outlined in Appendix B. This outline includes work on Taubman as well as Robson Square because it is most efficient to have one City team complete this related work. Where possible, existing City staff resources will be utilized, but temporary staff as well as other resources will be needed to meet the schedule needed by the applicant.

The start up work will be completed from November through February with existing resources. The estimated value of this work is in the order of $ 40,000 based on use of existing staff, office space and resources.

The proposed 4 month policy review process, expected to focus about 80% of work on the Taubman project and about 20% on Robson Square, will require the following resources:

Staff Full Program Taubman Robson Square

Planning 4 Mo. Senior Planner III $ 24,409 $ 19,527 $ 4,882

Engineering 4 Mo. Civil Eng. II $ 22,378 $ 17,903 $ 4,475

Park Board $ 4,000 $ 3,200 $ 800

Public Consultation $ 10,000 $ 8,000 $ 2,000
Consultancies $130,000 $104,000 $ 26,000
Overtime $ 4,000 $ 3,200 $ 800

Office Resources/Overheads $ 50,607 $ 40,486 $ 10,121

Total $270,952 $216,763 $ 54,189

The anticipated eight month rezoning process, expected to focus about 70% of the workload on Taubman and about 30 % on Robson Square, would require the following resources:

Staff Full Program Taubman Robson Square

Planning 8 Mo. Senior Planner III $ 48,891 $ 34,224 $ 14,667

Engineering 8 Mo. Civil Eng.II $ 44,822 $ 31,375 $ 13,447

Legal Services $150,000 $120,000 $30,000

Public Consultation $ 5,000 $ 3,500 $ 1,500
Overtime $ 4,000 $ 2,800 $ 1,200
Public Hearing $ 6,000 $ 4,200 $ 1,800
Office Resources/ Overheads $ 20,608 $ 14,426 $ 6,182

Total $330,513 $246,360 $ 84,153

In summary, the portion of the total program cost of $601,460 attributable to the Taubman Proposal would be $463,120 with the remaining $138,340 attributable to Robson Square.

The total value of existing staff resources committed to this work during both phases of the work program (not included above) is estimated to be in the range of $90,000.

Projected rezoning fees will provide partial cost recovery. Though fees can vary dramatically, based upon the approved policy framework and size of site considered for rezoning, these fees are estimated based on current information to be:

The balance of costs represent policy analysis and public consultation costs beyond the typical rezoning process.

It is proposed that security of the developers' contributions be provided up front by contract between the City and the developers so that full cost recovery for the City is assured. If rezoning proceeds, the contributions will be credited against rezoning fees; if rezonings do not proceed, further City resources would not be used and unspent funds will be reimbursed to the developers; if delayed for a matter of months, a pro-rated monthly contribution, above and beyond the costs outlined in this report, may be required to retain staff and related resources during intervening months.

Proponent Comments

Taubman Company

By letter of November 18, 1998, the Taubman Company indicates: "We have very much appreciated the careful consideration and cooperation of the City in the preparation of the report and support the staff recommendations."

B.C. Building Corporation

A formal written inquiry has just been received stating BCBC's desire to "investigate the revitalization of Robson Square". This is based on several early exploratory meetings with staff. The process of dialogue between staff and the developer on work programs, timing and resource commitments is just starting and the results will be reported separately to Council.

CONCLUSION

The Taubman Company proposes a mixed use development involving extensive retail and entertainment floor space, which challenges approved Central Area Plan policies for retail and office development and therefore requires a retail impact assessment. Staff recommend that a public policy review precede consideration of a specific rezoning proposal. This report recommends the structure, timing and resource requirements to conduct a policy review and rezoning process based on full cost recovery. The Taubman Company agrees to pay the cost of this process to the City, to be credited toward rezoning fees if a rezoning ensues. The same arrangement will be outlined for the related Robson Square proposal with the BCBC.

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APPENDIX C
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DRAFT TERMS OF REFERENCE
GEORGIA & BEATTY RETAIL IMPACT STUDY

The following is a Draft Terms of Reference for the Georgia and Beatty Retail Impact Study, to be undertaken by the development proponent's consultants. This Terms of Reference has been prepared by the developer's consultants, Thomas Consultants Inc. and the City of Vancouver Planning Department and is a Draft potentially subject to further refinement.

Description

The Taubman Company (Taubman) and the City of Vancouver (City) wish to determine if an amount and type of retail development is appropriate as a component of a proposed development, located in the vicinity of Georgia, Dunsmuir and Beatty Streets. Taubman wishes to develop the site in conformity with the City's policies for the downtown area. Initial thoughts are that the development will include something in the order of 1 million sq. ft. of retail space. About 50% of this could consist of department stores and the remaining 50% of externally and internally connecting retail and service uses. It is also intended that theatres, other entertainment uses, a hotel, residential and office uses could also be part of the development.

The City and Taubman are concerned that this retail space be supportive of the City's overall economic health. In accordance with this objective, the City and Taubman are cooperating in undertaking an assessment of the retail market in the Downtown Vancouver area. This study will consider the amount and types of retailing space that can be accommodated in this development and meet the objectives of a healthy Downtown. The study will indicate positive and negative features of potential retail developments to be followed or avoided in the development of a specific development concept.

Objectives

· To generally identify potential components of the proposal.

· To articulate a rationale for locating retail on the subject site, and demonstrate the implications for infilling and providing linkages between established and emerging Downtown areas and features.

· To identify and delineate intended primary and secondary trade areas.

· To present a baseline description of retail trade in the identified trade areas in 1998 dollars, and generally project retail demand over a twenty year horizon.

APPENDIX C
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· To quantify market potential for the identified trade areas for the broad range of components of the project which may include department store type merchandise (DSTM), service commercial and entertainment uses, specifying the extent, sources and timing of any projected increase in retail spending for a range of general economic and population assumptions.

· To provide clarity on the range and increments of potential retail components, and at an order-of-magnitude level, comment on potential retail impacts on various identified retail precincts in/near Downtown Vancouver, and describe the anticipated positioning of the subject project, vis-a-vis if it will complement existing retail precincts.

· To assess and quantify changes in distribution of the retail "pie" resulting from this development and assess impacts upon existing and desired retail patterns with particular reference to street oriented retail and relevant Council approved objectives and policies regarding retail and pedestrian patterns (see summary extracts attached as Appendix A).

Work Program

Prior to starting the work, the consultant will liaise with City officials and consultants to achieve consensus on assumptions and calculation methods.

1. Broad Definition of Proposed Commercial Development

APPENDIX C
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2. Assess Market Potential and Positioning

3. Assess Impact on Downtown Retail Patterns

4. Assess Impact on Specific Geographic Retail Areas

APPENDIX C
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Public Process

Consultants should be available to answer questions at public meetings, focus groups or meetings with downtown business organizations.

Proponents may be expected to sponsor meetings in locations such as the Library Square Auditorium and Chinese Cultural Centre.

Questions arising at such meetings may be the subject of further assessment to contribute to the final report or may be addressed by separate consultants employed by the City.

Timing

To be confirmed.

Deliverables

The end deliverable of the study process will be a written report containing explanatory maps and graphics (some of which will be available for public display purposes).

The City of Vancouver Community Services Graphics Division will be consulted on format questions, particularly for appropriate fonts and use of City crest prior to finalizing a report.

APPENDIX C
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Generally the following standards are appropriate:

Project Management

Roles and time commitment of principal participants and subconsultants to be identified. Day to day liaison with the City of Vancouver will occur through a Senior Planner, Central Area Planning Division.

Fees

: To be confirmed.

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APPENDIX D
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Terms of Reference
Downtown Retail Overview Study

Description

The 1991 Central Area Plan Retail Policy # 5.1 promotes "a variety of viable retail districts by limiting retail concentration". That policy requires a retail impact assessment at a threshold size of 100,000 sq. ft.(9300 m2) . Three current proposals exceed that size. Therefore, cumulative implications for future downtown retail patterns must be assessed (see Appendix A, attached).

This Retail Policy defines objectives for street orientation of retail development in the downtown to serve the primarily pedestrian oriented needs of downtown residents, workers and tourists. Both existing and emerging retail areas are seen to serve these needs. This study should focus on the cumulative potential of these new proposals to contribute to, or detract from, these objectives.

Objectives

· To describe and measure trends in the evolution of downtown retail, entertainment and pedestrian patterns since adoption of the 1991 Central Area Retail Policy.

· To assess qualitative and quantitative impacts of proposed retail development upon the achievement of Council approved Central Area Plan objectives and policies for existing and emerging retail and pedestrian patterns, with particular reference to street-oriented DSTM retail.

· To identify retail precincts most likely to sustain geographically concentrated impacts. Describe these impacts qualitatively and quantitatively.

Work Program

Document Existing Retail Trade in the Central Area

· Provide a baseline measurement of current Central Area retail and entertainment by type;
· Illustrate the geographic distribution of DSTM and entertainment floor space and trade;
· Show where DSTM retail and entertainment uses have increased or decreased since 1991;
· Estimate average annual rate of "high end" and other DSTM floor space absorption;
· Document and compare daytime and evening pedestrian linkages with 1991 patterns; and
· Provide a breakdown of "who shops" in downtown by retail area.

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Assess Future Retail Success

· Identify factors affecting continuation of past geographic retail and pedestrian trends;
· Estimate percentage revenue reductions which DSTM retail areas could withstand;
· Based on experience of pedestrian oriented downtowns, and with specific reference to approved Central Area Retail Policies (see Appendix A), describe beneficial linkages in retail activity, entertainment or cultural uses which could contribute to cohesive patterns of pedestrian movement, retail vitality and safety in emerging retail areas (ie. Robson west of Howe), entertainment districts (Granville Street -Nelson to Hastings) or priority commercial streets for revitalization (Hastings and Granville); and
· Estimate the critical mass needed for success of a retail project at the Robson Square and Larwill/Apex sites.

Assess Future Distributions of Retail and Pedestrian Movements

Quantify changes in pedestrian movement and retail activity by retail area, particularly in the DSTM category, for a full range of economic and demographic outcomes, assuming:

Illustrate potential changes in distribution of DSTM retail, entertainment and pedestrian movements, resulting from proposed new developments for the projected range of market conditions, focussing on, but not necessarily limited to the following locations:

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Comment on Retail Impact Assessments by Proponents of Individual Projects

· Initially liaise with proponent consultants for consensus on assumptions and calculation methods.

· Review assessments prepared by proponent's consultants (Taubman and Robson Square) and comment to the City on assumptions and calculation methods used in those studies.

· Comment on the response of those studies to City defined terms of reference for those studies.

Timing

This analysis is to be submitted twelve working weeks from the time of Council approval of the study.

Deliverables

The City of Vancouver Community Services Graphics Division should be consulted on format questions, particularly for appropriate fonts and use of City crest prior to finalizing a report. Generally the following standards are appropriate:

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Public Process

Principal consultants must be available to speak and present conclusions at public information meetings and focus groups. It is anticipated that 6 to 8 such meetings will be needed, half of which may be with Central Area business organizations, the remainder with the general public.

Project Management

· Involvement of Principals to be specified.

· Involvement of a local retail consultant in the team would be considered an advantage to ensure familiarity with local conditions and patterns.

· Day to day management of the consultancy will be done by a Senior Planner, Central Area Planning, with advice and liaison from the Director of Central Area Planning (Co-Director of Planning).

· All work must be completed to the satisfaction of the Director of Central Area Planning (Co-Director of Planning).

Fees

Proposals sought.

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APPENDIX E
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Central Area Urban Structure Study

The proposed 2,000,000 sq. ft. mixed-use complex proposed by Taubman Company at Georgia and Beatty Streets, in conjunction with a proposed 150,000 sq. ft. retail expansion at Robson Square, Portside (250,000 sq ft.) and International Village (300,000 sq. ft.), raise questions about overall patterns of development and structure in the downtown.

The Taubman complex could represent a new centre of gravity in the downtown. This may generate significantly greater intensity of land use and development interest in the vicinity of the site, generating change to broad patterns of downtown activity and demands upon the infrastructure which serves it. This study is intended to assess the nature, direction and time frame of possible changes in characteristics of the downtown in response to the proposed Taubman development.

In commenting on the future changes which may be anticipated in the downtown, the following aspects of downtown structure should be considered:

APPENDIX E
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Timing

This analysis is to be submitted in draft report form ten working weeks from time of Council approval of the study.

Deliverables

An illustrated report is to be submitted in a reproducible form for distribution to Council and during a public process. The City of Vancouver Community Services Graphics Division should be consulted on format questions, particularly for appropriate fonts and use of City crest prior to finalizing a report.

Generally the following standards are appropriate:

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Public Process

Principal consultants must be available to speak and present conclusions at public information meetings and focus groups. It is anticipated that 6 to 8 such meetings will be needed, half of which may be with Central Area business organizations, the remainder with the general public.

Project Management

Involvement of Principals to be specified.

Day to day management of the consultancy will be done by a Senior Planner, with advice and liaison from the Director of Central Area Planning (Co-Director of Planning).

All work must be completed to the satisfaction of the Director of Central Area Planning (Co-Director of Planning).

Fees

Specific proposals sought.

ATTACHMENTS THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ON FILE IN THE CITY CLERK'S OFFICE

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