I-2 Text Amendment

POLICY REPORT

URBAN STRUCTURE

Date: September 19, 2000
Author/Local: PNowlan/7712
RTS No 01679
CC File No.
CS&B: October 3, 2000

TO: Vancouver City Council

FROM: Director of City Plans

SUBJECT: I-2 Text Amendment

RECOMMENDATION

THAT the Director of Current Planning be instructed to make application to amend the I-2 District Schedule to permit a relaxation of the floor space regulations for General Office uses that are similar to Wholesaling, generally as contained in Appendix A;

FURTHER THAT the Director of Legal Services be instructed to prepare the necessary by-law for consideration at Public Hearing;

AND FURTHER THAT the application and by-law be referred to Public Hearing.

GENERAL MANAGER’S COMMENTS

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

COUNCIL POLICY

In March 1995, Council approved the Industrial Lands Strategy which seeks to retain most of the city’s existing industrial land base for a variety of industrial and city-serving activities.

In November 1996, Council approved a new I-2 District Schedule as an implementation measure for the Industrial Lands Strategy to better accommodate the needs of contemporary industry and to ensure compatibility of industrial areas with adjoining residential areas.

PURPOSE

This report proposes an amendment to the I-2 District Schedule to permit a relaxation of the floor space regulations for General Office uses that are similar to Wholesaling. Examples of such office uses are manufacturer’s agent or import broker. This change would allow more flexibility to accommodate office uses that are industrial in nature but do not conform to the definitions of wholesaling or other industrial uses.

BACKGROUND

As the City continues to grow, adding more population and creating more jobs in the office, retail and service sectors, it is expected that there will be a greater need for industrial activities to service that growth. In addition, a number of service industrial businesses relocating from Downtown South and the Burrard Slopes industrial area will wish to remain in the City, further adding to the demand for industrial land. In recognition of that demand and the City’s desire to maintain economic vitality, the Industrial Lands Strategy seeks to retain the existing industrial land supply.

One of the implementation actions approved in the Industrial Lands Strategy was to update the industrial zoning to better reflect the needs of contemporary industry and service businesses. To accomplish this, City Council approved a new I-2 Industrial District Schedule and rezoned about 1,000 acres of industrial land to I-2. The I-2 Schedule increases the allowable floor area for service industrial uses such as telecommunications, production studios, laboratories, work shops, repair shops, and wholesaling. The allowable accessory and general office space was also increased from 25% to 33% of the total floor area.

DISCUSSION

A number of service industrial uses, currently located in Downtown South where office development is permitted, have difficulty competing for space. A recent example is the Vancouver Showmart, a group of clothing wholesalers and manufacturer’s agents now occupying office space at 910 Mainland. When their building lease recently came up for renegotiation, the Showmart group were unable to outbid a local software developer requiring space to expand their business. As a result, many of the businesses from the Showmart are now searching for a new location close to the Downtown.

Staff are of the opinion that businesses such as the Vancouver Showmart are compatible with industrial uses. These businesses are not retailers. Rather, they function like wholesalers, selling goods to clothing retailers, and do not generate much street traffic. However, most of the businesses are manufacturer’s agents and import/export brokers, which are defined as office uses and can function in an office environment. The main difference between these businesses and wholesaling is the absence of bulk storage, i.e., samples are displayed on site and purchase orders are placed with the manufacturer for subsequent delivery to the retailer.

The I-2 District Schedule readily accommodates wholesale uses, but limits general office uses to 33% of the building floor area. In considering the requirements of the Vancouver Showmart, this use cannot be approved under the current I-2 zoning because of the 33% limit on office uses.

A number of options were considered to permit uses such as the Showmart in an industrial area. All options involve either rezoning or amending the Zoning and Development By-law.

Rezone an I-2 site to CD-1. While this option would work for an individual development, it does not address the broader issue for all such uses requiring an industrial location. Rezoning applications can also be costly and time-consuming.

Revise the definition for Wholesaling to include manufacturer’s agent. This option could result in some manufacturer’s agents, who are now permitted as an office use in a commercial zone, becoming conditional approval uses or non-conforming uses. Further, this option does not recognize that these are in fact office uses.

Amend the I-2 District Schedule to permit more flexibility for manufacturer’s agents. This option addresses the restrictions in the I-2 zoning and benefits all uses similar to the Vancouver Showmart.

Staff recommend option 3 above, because it complements the intent of the I-2 District Schedule, i.e., to better meet the needs of city-serving industry. To implement this option, staff are proposing that a relaxation clause be added to the I-2 District Schedule. This clause would allow the Director of Planning to relax the 33% floor space limit for General Office uses that are similar to wholesaling, such as manufacturer’s agent or import broker. As a result, a stand alone General Office use up to a maximum of 1.0 FSR could be permitted. However, to help ensure the continued viability of the development for a variety of industrial activities, buildings should conform to industrial design standards regarding, for example, loading bays, large truck access, freight elevators, ceiling heights, and corridor widths. The proposed text for the relaxation clause is provided in Appendix A.

CONCLUSION

The proposed I-2 text amendment will provide more flexibility in permitting service industrial activities that serve an important role in the City’s economy, but are currently having difficulty finding a suitable location. The proposed changes will also help to ensure the continued viability of future industrial activity.

* * * * *

PROPOSED TEXT AMENDMENT FOR THE I-2 DISTRICT SCHEDULE

Add the following Section 5 to the I-2 District Schedule:

5 Relaxation of Regulations

5.1 The Development Permit Board or the Director of Planning, as the case may be, may relax the provisions of Section 4.7.1(e) for General Office uses that are similar to Wholesaling, for example manufacturer’s agent or import broker, subject to the following:

(a) the intent of this Schedule and all applicable policies and guidelines adopted by Council;

(b) the provisions of Section 4.7.1(c); and

(c) building design should conform to industrial standards for wholesale uses, including but not limited to consideration for loading bays, large truck access, freight elevators, ceiling heights, corridor and door widths, and load bearing surfaces.

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TO:	Vancouver City Council
FROM:	Director of City Plans
SUBJECT:	I-2 Text Amendment
RECOMMENDATION THAT the Director of Current Planning be instructed to make application to amend the I-2 District Schedule to permit a relaxation of the floor space regulations for General Office uses that are similar to Wholesaling, generally as contained in Appendix A; FURTHER THAT the Director of Legal Services be instructed to prepare the necessary by-law for consideration at Public Hearing; AND FURTHER THAT the application and by-law be referred to Public Hearing. GENERAL MANAGER’S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY In March 1995, Council approved the Industrial Lands Strategy which seeks to retain most of the city’s existing industrial land base for a variety of industrial and city-serving activities. In November 1996, Council approved a new I-2 District Schedule as an implementation measure for the Industrial Lands Strategy to better accommodate the needs of contemporary industry and to ensure compatibility of industrial areas with adjoining residential areas. PURPOSE This report proposes an amendment to the I-2 District Schedule to permit a relaxation of the floor space regulations for General Office uses that are similar to Wholesaling. Examples of such office uses are manufacturer’s agent or import broker. This change would allow more flexibility to accommodate office uses that are industrial in nature but do not conform to the definitions of wholesaling or other industrial uses. BACKGROUND As the City continues to grow, adding more population and creating more jobs in the office, retail and service sectors, it is expected that there will be a greater need for industrial activities to service that growth. In addition, a number of service industrial businesses relocating from Downtown South and the Burrard Slopes industrial area will wish to remain in the City, further adding to the demand for industrial land. In recognition of that demand and the City’s desire to maintain economic vitality, the Industrial Lands Strategy seeks to retain the existing industrial land supply. One of the implementation actions approved in the Industrial Lands Strategy was to update the industrial zoning to better reflect the needs of contemporary industry and service businesses. To accomplish this, City Council approved a new I-2 Industrial District Schedule and rezoned about 1,000 acres of industrial land to I-2. The I-2 Schedule increases the allowable floor area for service industrial uses such as telecommunications, production studios, laboratories, work shops, repair shops, and wholesaling. The allowable accessory and general office space was also increased from 25% to 33% of the total floor area. DISCUSSION A number of service industrial uses, currently located in Downtown South where office development is permitted, have difficulty competing for space. A recent example is the Vancouver Showmart, a group of clothing wholesalers and manufacturer’s agents now occupying office space at 910 Mainland. When their building lease recently came up for renegotiation, the Showmart group were unable to outbid a local software developer requiring space to expand their business. As a result, many of the businesses from the Showmart are now searching for a new location close to the Downtown. Staff are of the opinion that businesses such as the Vancouver Showmart are compatible with industrial uses. These businesses are not retailers. Rather, they function like wholesalers, selling goods to clothing retailers, and do not generate much street traffic. However, most of the businesses are manufacturer’s agents and import/export brokers, which are defined as office uses and can function in an office environment. The main difference between these businesses and wholesaling is the absence of bulk storage, i.e., samples are displayed on site and purchase orders are placed with the manufacturer for subsequent delivery to the retailer. The I-2 District Schedule readily accommodates wholesale uses, but limits general office uses to 33% of the building floor area. In considering the requirements of the Vancouver Showmart, this use cannot be approved under the current I-2 zoning because of the 33% limit on office uses. A number of options were considered to permit uses such as the Showmart in an industrial area. All options involve either rezoning or amending the Zoning and Development By-law. Rezone an I-2 site to CD-1. While this option would work for an individual development, it does not address the broader issue for all such uses requiring an industrial location. Rezoning applications can also be costly and time-consuming. Revise the definition for Wholesaling to include manufacturer’s agent. This option could result in some manufacturer’s agents, who are now permitted as an office use in a commercial zone, becoming conditional approval uses or non-conforming uses. Further, this option does not recognize that these are in fact office uses. Amend the I-2 District Schedule to permit more flexibility for manufacturer’s agents. This option addresses the restrictions in the I-2 zoning and benefits all uses similar to the Vancouver Showmart. Staff recommend option 3 above, because it complements the intent of the I-2 District Schedule, i.e., to better meet the needs of city-serving industry. To implement this option, staff are proposing that a relaxation clause be added to the I-2 District Schedule. This clause would allow the Director of Planning to relax the 33% floor space limit for General Office uses that are similar to wholesaling, such as manufacturer’s agent or import broker. As a result, a stand alone General Office use up to a maximum of 1.0 FSR could be permitted. However, to help ensure the continued viability of the development for a variety of industrial activities, buildings should conform to industrial design standards regarding, for example, loading bays, large truck access, freight elevators, ceiling heights, and corridor widths. The proposed text for the relaxation clause is provided in Appendix A. CONCLUSION The proposed I-2 text amendment will provide more flexibility in permitting service industrial activities that serve an important role in the City’s economy, but are currently having difficulty finding a suitable location. The proposed changes will also help to ensure the continued viability of future industrial activity. * * * * * PROPOSED TEXT AMENDMENT FOR THE I-2 DISTRICT SCHEDULE Add the following Section 5 to the I-2 District Schedule: 5 Relaxation of Regulations 5.1 The Development Permit Board or the Director of Planning, as the case may be, may relax the provisions of Section 4.7.1(e) for General Office uses that are similar to Wholesaling, for example manufacturer’s agent or import broker, subject to the following: (a) the intent of this Schedule and all applicable policies and guidelines adopted by Council; (b) the provisions of Section 4.7.1(c); and (c) building design should conform to industrial standards for wholesale uses, including but not limited to consideration for loading bays, large truck access, freight elevators, ceiling heights, corridor and door widths, and load bearing surfaces.