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

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        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.

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   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.

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   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

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   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.




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