SUPPORTS ITEM NO. 2 P&E COMMITTEE AGENDA JUNE 1, 1995 ADMINISTRATIVE REPORT Date: May 19, 1995 Dept. File No. MBR TO: Standing Committee on Planning and Environment FROM: Associate Director of Planning - Land Use and Development SUBJECT: Development Application No. DA217589 303 Railway Street for Artist 'Live/Work' Studios RECOMMENDATION A. THAT staff process Development Application No. DA217397 in a similar manner to the application for 1701 Powell Street given that this application was made before adoption of the Industrial Land Strategy and revised Policies for Artist 'Live/Work Studios. CONSIDERATION B1. THAT staff be advised Council does not favour future artist 'live/work' studio developments that exceed the 1.0 floor space ratio permitted for this use in I and M zoning district schedules. OR B2. THAT staff report back with recommended policy and by- law amendments to address conditions (if any) under which favourable consideration may be given to future applications proposing rental artist 'live/work' studios in an existing building in I and M zones at floor space ratios in excess of 1.0. GENERAL MANAGER'S COMMENTS As I understand it, recommendation A means that staff would support an appeal to the Board of Variance which would result in an FSR of 5.0 for an artist 'live/work' development on this site. This is 4.0 FSR in excess of that permitted by the by-law for this use. This is similar to the variance supported and permitted for 1701 Powell Street. In supporting the Powell Street project, staff believed they were facilitating Council's desire for affordable and rental artist space. In my opinion, a five-fold increase in FSR does not constitute a "variance" within the reasonable purview of the Board of Variance, even though the Board does have the legal right to relax without limit. Floor space increases of this magnitude should rightly be considered as policy matters by Council through the mechanism of a rezoning application. I believe that staff support for the variance at 1701 Powell Street, while well-meaning, was in error, and I believe that continuation of this process for 303 Railway Street will compound that error. Therefore, I cannot recommend A, but - 2 - submit it only for Council's CONSIDERATION. If Council does not approve A, then the applicant may still file an appeal to the Board of Variance, although without support from the Director of Planning. Depending on Council's choice between B1 and B2, the applicant might also wish to pursue this development through a rezoning application. If Council decided to refer this application, it could consider alternative public views and policy implications at Public Hearing. The General Manager of Community Services submits A and the choice between B1 or B2 for Council's CONSIDERATION. As an alternative to A, I also submit for CONSIDERATION C below: C. THAT staff process Development Application No. DA217397 within the FSR limits established by the Zoning and Development By-law. COUNCIL POLICY North of Hastings Street and Railway Street Industrial Areas On September 15, 1994 Council adopted the recommendations of this policy report confirming the industrial status of these areas and marginal suitability for residential use in the Railway Street Industrial area. Artist 'Live/Work' Studios Council policy, as reflected in various by-law provisions and guidelines, has been to accommodate development of artist 'live/work' studios. On December 15, 1994, Council resolved that all applications for artist live/work studios be reported to Council for its advice. PURPOSE The purpose of this report is to seek Council's advice on a development application for artist 'live/work' studios, pursuant to Council's resolution of December 15, 1994. BACKGROUND In February 1994, development application DA216421 was approved to convert 1701 Powell Street to rental artist 'live/work' studios. Through a successful appeal to the Board of Variance, the applicant was granted an additional 4.0 FSR (above the 1.0 FSR allowed in the by-law) to convert the existing building to artist 'live/work' studios. The Director of Planning supported this appeal for the following reasons: the development provided rental artist 'live/work' studios with communal workshop areas which were seen to be providing more affordable and functional studios at a time when most projects were for strata title artist 'live/work' studios. This was considered to be a significant City objective at the time; this was a change of use in a building which existed with an FSR of 5.0; and this was expected to be a rare circumstance. - 3 - In September 1994, following discussions with property owners and businesses in the industrial area located north of Hastings Street, Council decided that this area should not be "let go" to future non-industrial development but should be retained for existing and future industrial purposes. Development Application DA217397 for 303 Railway Street was submitted on February 21, 1995. On March 14, 1995, Council adopted the Industrial Lands Strategy which identified the Powell Street industrial area, where the subject site is located, as an area to be retained for industry. On March 28, 1995 Council adopted policies concerning artist 'live/work' studios including a recommendation that policies would not apply to development applications submitted before March 28, 1995. DISCUSSION The Specific DA: Development Application DA217589 for 303 Railway Street was submitted by Robert Leshgold Architect. The owner of 303 Railway Street is associated with the same group that own and operate 1701 Powell Street. 303 Railway Street is located in an M-2 zone (shown on Appendix "A" Map). This development application proposes a renovation and one-storey addition to an existing building to provide 56 rental artist 'live/work' studios and communal workshop facilities. The FSR of the existing building is 4.46. The proposed FSR, including additions, is 5.26. A parking relaxation from 56 to 21 stalls has been requested. The one-storey addition to the top floor has 17 foot high ceilings with mezzanines. The average size of the studios is 75 m› (800 sq. ft.). The development will comply with residential acoustical standards. There are six units with associated windows that are proposed to be created facing the eastern interior property line. FSR: The M-2 district schedule allows some outright approval industrial uses to a maximum of 5.0 FSR and conditional uses, such as artist studios, to a maximum of 1.0 FSR. This is the fundamental issue of the development application. Staff recognize that the decision for support of a substantial FSR variance for 1701 Powell Street would likely have been better addressed through a wider forum such as a rezoning, by-law amendment or at the very least, Council policy. Staff also recognize that this would also be a more suitable process for 303 Railway Street. However, given that the applicant proceeded with 303 Railway Street in good faith, on the assumption that the conditions of approval for 1701 Powell Street also applied to this application, staff responsible for processing development applications are inclined to support an FSR to a maximum of 5.0 provided the applicant can and does obtain a relaxation from the Board of Variance. This position acknowledges that any future applications for a conversions above 1.0 FSR would not be supported by staff through a Board of Variance method due to new policies in place. Rental Status: The applicant has proposed that the project be rental. A mechanism such as a covenant or Housing Agreement would be required to ensure that the project continues as rental over the long term. - 4 - Parking: A parking relaxation has been requested from the required 56 spaces to 21. The current by-law standard for parking is 1 space per unit. In 1987, Council advised that it favoured relaxation of this standard in cases where it improved the affordability of the studios. This relaxation was set at 0.5 spaces per unit and has been routinely applied to artist 'live/work' studio developments. In some cases, relaxations beyond 0.5 spaces per unit may be considered for existing buildings. However, there is a shortage of parking in the area due to the predominance of existing older buildings that were granted parking relaxations. Therefore, a relaxation beyond 0.5 spaces per unit is not supported. Units Facing the Eastern Property Line: The creation of six units and their associated windows are proposed on an interior property line on the second, third and fourth floors (two units per floor). If these units were permitted, they would have to be deleted if the property to the east chose to develop above one storey. This would place the City in the position of having approved these rental units at one time, then requiring their deletion at another time. Therefore, these six units are not supported by staff. Notification: A sign was posted on the site and nineteen adjacent property owners were notified of the development by letter. Responses to notification are still being received. To date, there has been 1 letter of support and 2 letters of non-support. A letter was also received from ACE (Artists for a Creative Environment) who support this project as it will provide rental accommodation and workshop amenities for artists. A meeting was held with the development applicants, the Port, CP Rail, several industry operators, and a union representing marine workers. Industry representatives did not support the proposed development. Their main concerns were: parking relaxations in an area of existing parking deficiencies; potential complaints from artists living adjacent to the noise and odours of the industrial and port activities, thereby undermining the viability of these industries; a precedent that may encourage other owners to convert to non-industrial uses; and the large number of artists in one building facilitated by the relaxation of FSR above 1.0. Development Application Processing: This is the last artist 'live/work' studio development application made before the March 28, 1995 adoption of revised artist live/work' studio policies. Staff are processing this application under policies and by-laws that existed at the time of application. This is in accordance with Council's directive that policies adopted March 28, 1995 apply to applications made after that date. The Industrial Lands Strategy, approved by Council on March 14, 1995 also followed this development application submission. It did not contain any commentary on whether the policies would apply, once adopted, to development applications already in process. Unless Council establishes at the outset of policy - 5 - review/development that future policies will apply as soon as adopted, staff believe it is most reasonable to process development applications on the basis of policies in effect at the time of application. Therefore, staff assessment of Development Application No. DA217589 has not involved review in the context of the Industrial Lands Strategy policies. Policy and By-law Amendments for FSR Relaxations: If it is Council's desire that staff generally support conversion of existing industrial buildings to rental artist 'live/work' studios at floor space ratios exceeding 1.0, then the Board of Variance is not an appropriate vehicle for "variance" of the by- law. A more appropriate procedure would entail amendment of the by-law to provide for a greater FSR for this use. Staff propose to report back to Council with policy and by-law amendments incorporating criteria under which a relaxation may or may not be considered. Conversely, should Council choose to advise that the 1.0 FSR for artist studio use is of paramount importance, staff propose that this portion be clearly expressed. These alternatives are presented as CONSIDERATIONS B1 and B2. CONCLUSION This development application was submitted before Council adoption of the Industrial Land Strategy on March 14, 1995, and Policies and Zoning for Artist 'Live/Work' Studios on March 28, 1995. Therefore, this application is being processed according to policies existing at the time of application. A variance of FSR above 1.0 was supported by the Director of Planning on a previous, similar development application and staff are inclined to support such a Board of Variance appeal on this application, to the maximum FSR of 5.0. There has been both community concern and support for this application. Council's advice is sought prior to staff reaching a decision on this application. * * * * *