CITY OF VANCOUVER SPECIAL COUNCIL MEETING A Special Meeting of the Council of the City of Vancouver was held on Thursday, April 27, 1995, at 7:30 p.m., in the Council Chamber, Third Floor, City Hall, for the purpose of holding a Public Hearing to amend the Zoning and Development By- law. The meeting subsequently reconvened at 7:30 p.m. on Tuesday, May 16, 1995, in the Council Chamber. PRESENT: Acting Mayor Puil Councillors Bellamy (present for April 27th meeting only), Chiavario, Hemer, Ip, Kwan, Price and Sullivan ABSENT: Mayor Owen (Civic Business) Deputy Mayor Clarke (Illness) Councillor Kennedy MANAGER'S REPRESENTATIVE: Judy Rogers, Assistant City Manager Ted Droettboom, General Manager of Community Services CLERK TO THE COUNCIL: Gary MacIsaac COMMITTEE OF THE WHOLE MOVED by Cllr. Bellamy, SECONDED by Cllr. Hemer, THAT this Council resolve itself into Committee of the Whole, Acting Mayor Puil in the Chair, to consider proposed amendments to the Zoning and Development By-law. - CARRIED UNANIMOUSLY 1. Rezoning: 272 East 4th Avenue (Lot A, Block 25, D.L. 200A, Plan 16118) An application by Kantex Manufacturing Co. Ltd. was considered as follows: The proposed rezoning, from IC-3 Industrial District to CD-1 Comprehensive Development District, would: cont'd.... Clause No. 1 (cont'd) ˜ exclude mezzanines in artist "live/work" studios in the computation of floor space ratio. This would allow an additional 395 m› (4,250 sq.ft.) of floor area for mezzanines in the 17 double-height units of an approved 34-unit, four storey artist live/work studio building (the exterior envelope of the building would be unchanged); ˜ require amendment to the Sign By-law, and possible consequential amendments. The Associate Director of Planning - Land Use & Development, recommended approval subject to the following conditions proposed for adoption by resolution of Council: (a) THAT the proposed form of development be approved by Council in principle, as shown in plans prepared by Kasian Kennedy Architects Ltd. and approved by the Director of Planning in Development Permit No. 216175 issued on August 17, 1994, and plans stamped "Received City Planning Department, January 26, 1995", provided that the Director of Planning may allow minor alterations to this form of development when approving the detailed scheme of development. Alterations will include lowering the floor of units #208 and #209 into void space above the parking ramp to provide double- height units, and joining units #301 and #302 to form one unit. (Note: These alterations were proposed by the applicant in a recent request for a minor amendment to D.P. No. 216175, and they were among the assumptions in the analysis undertaken by the Real Estate Division.) (b) THAT, prior to enactment of the CD-1 By-law, the registered owner shall: (i) register a strata plan of the building in the Land Title Office; and (ii) convey to the City unit #303 at no cost, including GST that may be payable, and free and clear of all encumbrances, such unit to be satisfactory to the Managers of the Real Estate Division and the Housing Centre in terms of value, architectural and construction specifications, and title. (c) THAT, prior to enactment of the CD-1 By-law, the Manager of the Housing Centre, in consultation with the Manager of the Real Estate Division and the Director of the Office of Cultural Affairs, shall report back on a detailed management plan for unit #303. cont'd.... Clause No. 1 (cont'd) (d) THAT, following enactment of the CD-1 By-law, the Director of Legal Services shall release from title the covenant which presently restricts future development of mezzanines in double-height spaces. Staff Opening Comments Mr. Phil Mondor, Planner, advised the applicant owned and operated a plant on this site. When artist live/work studios began to be constructed in this area, they decided to build one of these buildings and relocate the plant elsewhere. Subsequent to the construction of the building and the purchase by strata owners, the applicant learned about the mezzanine problem and the problem with the installation of lofts. There is no floor space ratio left for the legal installation of lofts and mezzanines by purchasers of the studios. On their own initiative the applicant approached the City for a solution. The only feasible solution identified by staff was to do a rezoning application in which the City would accept a unit or some floor space in the development, equal in value to the floor space that would be provided to the developer through a rezoning. A unit of equal value has been identified. Mr. Mondor advised there has been little concern from the surrounding neighbourhood, and he reviewed the feedback which has been received to date. Planning staff recommend approval of the application for the following reasons: ˜ it has no tangible off-site impacts; ˜ the proposed affordable unit is supported by the Housing Centre and the Office of Cultural Affairs; ˜ the Real Estate Division has confirmed that an equal value is involved in the land exchange; ˜ there is little neighbourhood concern. Applicant Opening Comments The applicant had no opening comments. cont'd.... Clause No. 1 (cont'd) Summary of Correspondence The following correspondence was received: - three letters opposing the application; - one petition containing 27 signatures opposing the application. Speakers Acting Mayor Puil called for speakers for and against the application and the following speakers were heard: Mr. Eric Klokstad opposed the application because it sends a message to overbuild and ignore existing by-laws and zoning. The applicant should be required to live up to the same rules as other developers in the City. Mr. Klokstad also disagreed that the suite offered to the City is a fair exchange for the trade-off being offered the developer. Mr. Mario Loscervo opposed the application because it would be unfair to other developers who build their units according to the rules. City Hall should not be involved in this extra floor space ratio request. Mr. Loscervo also expressed concerns with parking problems in the area and advised this neighbourhood is becoming totally congested, and his business which employs 30 people is being forced out. Responding to a question from a member of Council, Mr. Rick Scobie advised there is presently a covenant advising prospective purchasers that there is no residual floor space in the building. Applicant Closing Comments Mr. Shane Starnes advised that Kantex Manufacturing has made this application in an effort to address the existing problems. It they were to walk away from the project, it would likely end up with people building illegal lofts. cont'd.... Clause No. 1 (cont'd) Staff Closing Comments Mr. Phil Mondor reminded Council that the purchase of density can be used to achieve community objectives. In terms of the value of the land trade-off, the applicant is receiving approximately 4,250 square feet while the City is receiving 537 square feet. However, the 4,250 square feet is a permission to build, while the 537 square feet is constructed space and has market value. In terms of parking, artist live/work studios have a requirement that no more than two occupants live there, so approval of this application will not result in additional people on site. Mr. Mondor reiterated that staff do recommend approval of this application. MOVED by Cllr. Bellamy, THAT this application be approved, subject to the conditions as set out in this minute of the Public Hearing. - C A R R I E D UNANIMOUSLY Clauses 2(a) and 2(b) were dealt with concurrently. Two alternative rezoning proposals are presented for Council's consideration: 2(a) Plaza of Nations CD-1 (Not including a Family Sports and Entertainment Centre) An application by the Associate Director of Planning - Land Use & Development was considered as follows: This proposed rezoning, from (BCPED) B.C. Place/Expo District to CD-1 Comprehensive Development District, would: confirm the existing Plaza of Nations development and parking. The three principal buildings existing on the site will be retained; permit uses consistent with the provisions of the False Creek North Official Development Plan; and require amendment to the Sign By-law, and consequential amendments, including amendments to the False Creek North Official Development Plan. cont'd.... Clause No. 2 (cont'd) The Associate Director of Planning - Land Use & Development recommended approval of alternative 2(b); however, should Council not favour inclusion of a Family Sports and Entertainment Centre, the Associate Director recommended approval of alternative 2(a), subject to the following conditions proposed for adoption by resolution of Council: (a) THAT the form of development be approved by Council in principle, represented by the buildings existing on the site as of (date of enactment of the associated CD-1 by-law). (b) THAT, prior to final approval by Council of the form of development, the property owner shall obtain approval of a development application by the Director of Planning, the purpose of which is to clearly determine existing uses, floor areas and building heights. (c) THAT, prior to enactment of the CD-1 by-law, the registered owner shall, at no cost to the City, grant a registrable restrictive covenant and statutory right- of-way allowing public access through the Plaza of Nations from Pacific Boulevard and adjacent waterfront walkways except during periods of construction, special events as determined by the City, emergencies, repair or replacement, on terms to the satisfaction of the Director of Legal Services and the City Engineer. (d) THAT the conditions of rezoning approval include a requirement that the property owner agree to identify a potential location for a streetcar corridor through the site, and provide that corridor at no cost to the City at such time as Council deems necessary. - OR - 2(b) Plaza of Nations CD-1 (Including a Proposed Family Sports and Entertainment Centre) An application by Mr. Martin Thompson, Portfolio West, was considered as follows: This alternative to the CD-1 Comprehensive Development District proposed in item 2 (a) above, would also: confirm the existing Plaza of Nations development and parking. The three principal buildings existing on the site will be retained; cont'd.... Clause No. 2 (cont'd) permit uses consistent with the provisions of the False Creek North Official Development Plan; and require amendment to the Sign By-law, and consequential amendments, including amendments to the False Creek North Official Development Plan. It would, in addition: permit a family sports and entertainment centre. The proposed centre would include various sports activities such as baseball batting cages, small basketball courts and hockey rinks, golf simulators and a climbing wall. It would also include food serving areas, space for small parties, a souvenir shop and arcade machines; The Associate Director of Planning - Land Use and Development recommended approval, subject to the following conditions proposed for adoption by resolution of Council: (these are the same conditions as proposed for item 2(a) above) (a) THAT the form of development be approved by Council in principle, represented by the buildings existing on the site as of (date of enactment of the associated CD-1 by-law). (b) THAT, prior to final approval by Council of the form of development, the property owner shall obtain approval of a development application by the Director of Planning, the purpose of which is to clearly determine existing uses, floor areas and building heights. (c) THAT, prior to enactment of the CD-1 by-law, the registered owner shall, at no cost to the City, grant a registrable restrictive covenant and statutory right- of-way allowing public access through the Plaza of Nations from Pacific Boulevard and adjacent waterfront walkways except during periods of construction, special events as determined by the City, emergencies, repair or replacement, on terms to the satisfaction of the Director of Legal Services and the City Engineer. (d) THAT the conditions of rezoning approval include a requirement that the property owner agree to identify a potential location for a streetcar corridor through the site, and provide that corridor at no cost to the City at such time as Council deems necessary. cont'd.... Clause No. 2 (cont'd) Conflict of Interest At the outset of the staff presentation, Councillor Sullivan advised other members of Council that he rents space in the Plaza of Nations. On the basis of advice from Corporation Counsel, it has been determined he is not in a conflict of interest, as he does not stand to benefit from this rezoning application. Staff Opening Comments Mr. Greg Yeomans, Planner, advised that before Council is choice of two rezoning proposals for the Plaza of Nations, both of which would establish the land use and development policy for the site. The main difference between them is that option 2(b) would allow for a family sports and entertainment centre, while option 2(a) would not. Otherwise, they are the same applications. Mr. Yeomans briefly reviewed the rezoning package recommended in option 2(a). This CD-1 by-law would: ˜ confirm the existing development in the Plaza of Nations; ˜ permit uses that are consistent with the Official Development Plan; ˜ establish a parking standard to recognize the unique situation on the site. In short, this by-law would approve the status quo with respect to the existing development. Three key aspects of the zoning by-law were highlighted for Council's attention. They were: i) Parking The site currently has 428 parking spaces which is about 500 spaces less than the site should have if the City were to apply full parking standards. It is virtually impossible to provide more on-site parking without a major redevelopment. In order to resolve this, the Planning and Engineering Departments are recommending a parking standard to accept this existing shortfall. Limits are proposed on the amount of extra parking demand allowed on this site, beyond which the owner would have to provide additional spaces. cont'd.... Clause No. 2 (cont'd) ii) Public Access The Plaza serves as an important space for public events and is a key link between the east and west portions of the waterfront walkway. The by-law recommends the property owner provide a covenant and right-of-way as a condition of zoning enactment. This will ensure public access to the Plaza and Mr. Yeomans advised this is acceptable to the owners. iii) Proposed Streetcar Corridor On March 28, 1995, referred an additional condition of rezoning to this hearing, calling for the property owner to identify a potential location for a streetcar corridor to the site and provide that corridor at such time as Council deems necessary. After preliminary discussions, the owner is in agreement to this condition. Mr. Yeomans advised that option 2(b) goes one step further than the basic zoning proposed for 2(a), in that it will allow for a family sports and entertainment centre which would replace an existing production studio on the site. The main reason this proposal is brought forward through a zoning amendment is that existing regulations would subject this proposal to the same rules as an arcade, including age restrictions and hours of operation. This proposal differs from a typical arcade in that the emphasis is on sports activities and arcade games are secondary. Should Council proceed with this rezoning, staff will bring forward amendments to the License By-law which would allow people under 18 on the premises. It is recommended this application be approved as a pilot project in the Plaza of Nations only, as this will allow staff to monitor the situation and determine how the regulations are working. Two issues have arisen with this proposal and they are: ˜ The arcade industry does not support this as a pilot project, on the basis it is an unfair competitive advantage for the operator. The industry also does not support the centre having different age restrictions than are permitted for arcades. ˜ It has been suggested these games are akin to video lottery terminals and are a form of gambling. Redemption games typically involve throwing or aiming objects at targets and in most cases players insert a coin or token into a machine in order to play. Successful play is awarded with a game credit of one or more coupons which can be used for prizes available cont'd.... Clause No. 2 (cont'd) in the centre, such as a poster or a baseball hat. Staff have carefully considered these games and feel they clearly are not video lottery terminals and do not represent a lottery scheme. The proposed redemption games involve skill-based activities and the outcome is dependant upon the player's ability. There is no betting and these are not gambling machines in that the players do not bet on a possible outcome. Cash prizes are not proposed by the applicant and staff recommend a License By-law provision that no cash prizes be offered on the site. Mr. Yeomans concluded that staff support this basic addition to the CD-1 by-law. Applicant Opening Comments Mr. Martin Thompson, applicant, advised his intention is to provide a place for everyone which is fun and challenging in a wholesome environment. The application proposes a 28,000 square foot sports theme park that combines a wide variety of innovative sports skills for people of all ages and abilities. Mr. Thompson provided a detailed description of the planned activities in the sports theme park. The general rule of the park will be play as you pay and the facility will be labour intensive and 70 new jobs will be created. It is designed to encourage families to participate in activities together, and is in keeping with the recently-approved Civic Youth Strategy. Mr. Thompson addressed the issue of redemption skill games and advised there has been misinformation in the media which relates redemption skill games to gambling. Redemption skill games have nothing to do with gambling. They have existed in the Lower Mainland for many years and every law enforcement agency has concluded that these games do not constitute gambling. The redemption skills games at this facility will be sport-challenged activities and will be based solely on skill; there will be no element of luck or chance. If exceptional scores are achieved, symbolic prizes such as a hockey poster will be available in recognition of a job well done, just like medals, crests, little league trophies and academic awards. In regard to the March 2, 1995 Policy Report before Council, Mr. Thompson requested that any changes to the License By-law amendments should only be to "fine tune the operation" and not to change any basic terms of use. In addition, he advised the Police cont'd.... Clause No. 2 (cont'd) Department recommendation that development permit approval be time limited is unworkable because of the substantial capital investment involved. Mr. Thompson advised he accepts the staff recommendation that the approval be permanent. Summary of Correspondence The following correspondence was received on this application: - 82 letters in favour - 20 letters opposed - 2 press releases opposed - 1 petition containing over 500 signatures in support of the application - 1 petition containing over 800 signatures urging Council to ban video lottery terminals and to ban redemption games anywhere in the City of Vancouver. Speakers Acting Mayor Puil called for speakers for and against the application and a total of 50 delegations addressed Council over the course of the two evenings. The following speakers were in favour of the application: - Sam Campbell - Mannie Buzunis - Don Taylor - Robert Thompson - Tony Schidlo - Dr. Michael Etterman - Tom Baillie - Daryl Pollock - Gordon Allen - Larry Jackie - Rahoul Sharan - Riyaz Hasham - David Reuben - David Tone - Robert Phillips - Dr. Barry Beyrestein - Ted Margulius - Jon Brown - Larry Straith - Bruce Langereis - Blair Norton cont'd.... Clause No. 2 (cont'd) - Bill Gurniak - Fred Carter - Adrian Armstrong - Tyson Warner - Robert Cherniack - Louis Eisman. The foregoing speakers supported the application for one or more of the following reasons: ˜ These are redemption games involving skill and do no constitute gambling; ˜ The applicant has a proven personal and business track record; ˜ Many of the speakers indicated they have played redemption games and have not become addicted to gambling. These games award achievement in the same manner as little league trophies and academic awards; ˜ This application will encourage wholesome, fun-oriented activities in an alcohol and smoke-free environment; ˜ This facility will provide an outlet to get kids off the street, and will enrich the lives of children in the City; ˜ Redemption games have existed in the Lower Mainland for some time and many children have visited Chuck E. Cheese and the PNE, which operate similar redemption games; ˜ City Council should let parents and the public determine whether this is gambling; ˜ Addictions are only likely to occur in people with other predisposed attributes. Well-adjusted people do not turn into addicts, but someone who is predisposed to addiction will find something from a long list of activities to indulge in, that will not be a threat to anyone else; ˜ Council should support the application because the benefits far outweigh the minimal risks. The following speakers were opposed to the application: - Betty Greenwell - Robert Clark - Klara Van Der Molen - Don Larson cont'd.... Clause No. 2 (cont'd) - Charles Ungerleider - Harvey Pudwell - Elizabeth Caton - Connie Fogal - Isabel Minty - Ernest Culley - Joe Arnaud - Colin Campbell - Renee Jensen - Rev. Joe Russell - Janet Sinrose - Peggy McIntosh - Cindy Terry - Eleanor Hadley - Rick Smith. The foregoing speakers opposed the application for one or more of the following reasons: ˜ The redemption games proposed for this facility are an expansion of the gambling in the City; ˜ This application will use young people for profit and money in the name of wholesome entertainment; ˜ Speakers were not concerned with the sports aspect of the proposal, but rather the aspect involving redemption games; ˜ This is not an appropriate recreation for children. There are already many problems facing the City, and we do not need the social ills of youth gambling; ˜ Most addiction problems related to childhood experiences. It is government's role to protect those who cannot protect themselves, and Council should protect children from exposure to gambling; ˜ The prevalence of addiction rates for children is twice the rates of adults. This application will have its greatest impact on children as they will go from gambling for merchandise prizes to gambling for cash; ˜ Council should be spending more time studying the issue of gambling and its societal impacts. The industry is attempting to link gambling with wholesome activity; ˜ This is a poor location for such a facility due to the high number of licensed establishments in the vicinity. The site is isolated, has poor sightlines and is inadequate for this use; cont'd.... Clause No. 2 (cont'd) ˜ Extra resources will be needed to police this area and policing will be insufficient. The following speakers opposed the application on grounds other than gambling: - Karl Feder - Leslie Jung. The foregoing speakers opposed the application on the following grounds: ˜ The applicant is misrepresenting the true intention of what is planned for this site. This will be the largest arcade in British Columbia. If you remove the arcade portion of the project, it is no longer financially feasible; ˜ It is unfair that City staff are allowing the rules to be changed for this application. Other owners are not entitled to this special provision which would allow children under the age of 18 on the premises. This is creating an unfair competitive advantage; ˜ Other arcade owners should be given similar opportunities to this applicant. Mr. Danny Virtue opposed the application on the basis that the film studio which is presently on this site will be displaced, and this is bad for the film industry economy in British Columbia. Mr. Brian Calder, on behalf of the owners of the Plaza of Nations, advised he was in support of application 2(a) and the conditions which are attached. Application 2(b) is an initiative of Mr. Thompson and if he is granted approval by City Council to proceed, then Mr. Thompson will be a tenant of the Plaza of Nations. Mr. Calder advised he had no formal position on application 2(b) but that the family sports and entertainment centre would be a good tenant for the Plaza of Nations. Applicant Closing Comments Mr. Martin Thompson urged Council to support application 2(b) on the basis that redemption games proposed for this facility are not gambling. Mr. Thompson referenced a petition containing over 500 names, which was collected in support of his application. cont'd.... Clause No. 2 (cont'd) Staff Closing Comments Mr. Greg Yeomans briefly summarized the application and reiterated staff's opinion that redemption games are not gambling and do not represent a lottery scheme. Mr. Yeomans offered the following comments on application 2(b): ˜ There is a general but not unanimous support for the sports facility proposed in this application. The objections are related to redemption games; ˜ The arcade owners object to this proposal. While staff take these objections seriously, they still recommend this application as a pilot project as it is new in nature and the City will want to be able to monitor it; ˜ It was clarified the Police Department have requested a time-limited permit be issued; ˜ Redemption games have existed in the Lower Mainland for some time; ˜ Cash prizes will be precluded and no prizes will be able to be redeemed for cash; ˜ People under 15 will not be allowed on the premises during school hours unless accompanied by a parent or a teacher. Mr. Yeomans advised staff support this application and Council are requested to choose between either items 2(a) or 2(b). MOVED by Cllr. Hemer, THAT application 2(b) be approved, subject to the conditions as set out in this minute of the Public Hearing. - CARRIED (Cllr. Kwan opposed) (Cllr. Bellamy was not present for the vote on this matter) RISE FROM COMMITTEE OF THE WHOLE MOVED by Cllr. Sullivan, THAT the Committee of the Whole rise and report. - C A R R I E D UNANIMOUSLY ADOPT REPORT OF COMMITTEE OF THE WHOLE MOVED by Cllr. Hemer, SECONDED by Cllr. Sullivan, THAT the report of the Committee of the Whole be adopted, and the Director of Legal Services be instructed to prepare and bring forward the necessary by-law amendments. - C A R R I E D UNANIMOUSLY * * * The Special Council adjourned at approximately 11:10 p.m.