POLICY REPORT
                        DEVELOPMENT AND BUILDING

                                           Date:  May 24, 1995
                                           Dept. File No. TWP 

   TO:       Vancouver City Council

   FROM:     Associate  Director   of  Planning  -   Land  Use   and
   Development

   SUBJECT:  CD-1 Rezoning Rationale - 705 West Broadway


   RECOMMENDATION

        A.   THAT in considering a rezoning application for 705 West
             Broadway   to  accommodate   the  existing   hotel  and
             additional  development,  Planning   staff  should,  in
             accordance  with usual  policy,  seek public  amenities
             generally  equal in value  to the development potential
             that rezoning would confer to the site.


   CONSIDERATION

        B.   THAT in considering a rezoning application for 705 West
             Broadway  to   accommodate  the   existing  hotel   and
             additional development,  Planning staff  should give  a
             high priority to  the combined public benefits  of West
             8th  Avenue  residential   development  and  a   public
             amenity, and disregard the increased non-conformity  of
             the hotel.


   GENERAL MANAGER'S COMMENTS

        The  General   Manager  of  Community   Services  RECOMMENDS
        approval  of A  above and  submits B  as an  alternative for
        Council's CONSIDERATION.


   PURPOSE

   This  report  seeks  Council direction  in  assessing  a proposed
   rezoning for  increased density  at 705 West  Broadway.   In this
   instance, the  existing hotel  exceeds the  permitted FSR  in the
   C-3A District.  To consider a further increase in density on this
   site staff  would normally  apply  a public  amenity or  heritage
   bonus  analysis.   The applicant  disagrees  with this  approach.
   There is no  policy framework to provide  an alternate rationale.
   Therefore, staff have outlined alternate approaches for Council's
   consideration.
   BACKGROUND

   Context    The Holiday  Inn was approved  in 1972 with  a density
   currently calculated at 3.36 FSR  on the site extending from West
   8th Avenue to West  Broadway.  The northerly portion of  the site
   fronting West 8th Avenue  is developed with surface parking  that
   is surplus  to the  needs of  the hotel.   At the  time, the  C-3
   zoning on  the Broadway frontage  permitted a maximum FSR  of 5.0
   FSR, and the C-2  zoning of the 8th Avenue frontage permitted 3.0
   FSR.   The hotel  achieved its current  non-conforming density by
   utilizing development potential from both parts of the site.  The
   C-2 and C-3 Districts became C-3A in 1975.  The  most significant

   change was a reduction in permitted FSR to a maximum of 3.0.

   If the site could be subdivided to create northerly and southerly
   parcels  without providing the  normal 6.0  m (20  ft.) east-west
   lane, the portion of the site fronting West Broadway would have a
   density  of 5.97  FSR,  which  would  dramatically  increase  the
   existing  non-conformity.    By comparison,  adjacent  C-3A zoned
   sites along West  Broadway are permitted  an outright density  of
   1.0 FSR  which  may  be  increased, conditionally,  to  3.0  FSR.
   Therefore, subdivision approval would be highly unlikely  without
   rezoning.

   Of interest in  the consideration of the current  proposal is the
   October 1986 rezoning of a nearby  site at 777 West Broadway from
   C-3A to  CD-1 permitted a  transfer of density from  the adjacent
   site at  2440 Willow Street,  which fronts the same  block on 8th
   Avenue  which  the  Holiday  Inn  proposes  to  develop.    While
   increasing the density on the  Broadway frontage to 4.85 FSR, the
   1.14 FSR permitted  adjacent to 8th Avenue results  in a combined
   density  of 3.0 FSR, equivalent  to the maximum density permitted
   under C-3A.

   Proposed Rezoning   The owner has  applied for a CD-1 rezoning to
   permit retention of  the existing hotel at  5.97 FSR (site  to be
   subdivided)  and development  of the  surface parking  area to  a
   density  of  2.6 FSR  (on its  own site)  in a  4-storey building
   containing market  dwelling units.   The combined density  on the
   whole site would be 4.5 FSR.  Two benefits are proposed.   First,
   the parking  lot would be  replaced by a development  which would
   improve  the West  8th Avenue  streetscape.   Secondly, a  565 m›
   (6,081.8 sq.  ft.)  assembly space  would be  made available  for
   neighbourhood use.

   Benefit of  Community Space    The  desirability of  the proposed
   assembly space as a public benefit will be evaluated by Vancouver
   Park Board  and Community Services  staff, who will  consider the
   following factors:
   (i)   the lack of an identified need for this facility;
   (ii)  the City's cost of equipping the facility;
   (iii) the cost of facility maintenance;
   (iv)  the programming needs and costs;
   (v)   necessary City ownership and administrative structure;
   (vi)  suitability of location; and
   (vii) extent of need and benefit to the general public.

   Applicant's Rationale    The applicant believes  that eliminating
   the parking  lot and providing  the 565 m› public  assembly space
   offers  sufficient  public  benefit  to  justify  support  for  a
   4-storey market residential development at a density of 2.34 FSR.
   He argues that the value of this facility would exceed the  value
   of a  typical Community Amenity Contribution in Downtown South or
   Burrard Slopes.  Further, he notes that proposed land use changes
   are themselves often of sufficient benefit to justify a rezoning.
   These  points are  addressed  below.   Under  current policy  and
   noting the  hotel requires the full site  area to West 8th Avenue
   to  sustain its already  non-conforming FSR, staff  believe these
   arguments  offer  insufficient  justification  for  the  proposed
   density.  Land use is not an issue.

   ALTERNATE RATIONALES

   The following  headings identify  the nature  of public  benefits
   normally considered  by staff and  Council to  favour a  rezoning
   proposal.  The  inclusion or absence of such benefits  in the 705
   West Broadway application is noted.

   Land Use Benefits   If  a change in land use, density or  form of
   development would  improve the permitted pattern  of development,
   or  generate  at least  as  compatible  and  stable a  long  term
   transition among zoning districts as presently exists, the change
   in land  use itself may  present a reason to  support a rezoning.
   For instance, the remainder  of a block  may be zoned for  larger
   scale developments  than the  site of a  proposed rezoning.   The
   rezoning should  not generate  further pressure  for rezoning  of
   adjacent  lands by creating an incongruity  of uses, densities or
   building forms.

   In  retrospect, it is  unfortunate that the  original development
   did not address the 8th  Avenue streetscape in a more appropriate
   fashion.  A landscaping response would in itself only  marginally
   improve the  compatibility of this  parking area.   Replacing the
   parking lot on the northerly portion of the Holiday Inn site with
   a residential building would improve the  streetscape on West 8th
   Avenue and  should be duly  credited in assessing  site rezoning.
   Two- and  a half-storey townhouses  developed at 0.6 to  0.75 FSR
   could be  developed to create  a more compatible streetscape.   A
   four-storey structure is not necessary.
   The Holiday Inn site is not readily distinguished from many other
   C-3A  zoned sites  along both  sides of  West Broadway  from Vine
   Street to Kingsway  that extend or could be assembled to extend a
   full block  in depth  (i.e., to  West 8th  or West  10th Avenue),
   except  by  the  fact  that  it  presents a  poor  image  to  its
   neighbours  to the  north.   Staff  do not  believe this  lack of
   neighbourliness should  be  seen as  a  positive factor  that  in
   itself warrants further development beyond the  density permitted
   on this or other comparable sites.

   To rezone this site to  permit approximately 6.0 FSR on the  West
   Broadway fronting hotel  portion of the  site and 2.6 FSR  on the
   north portion raises the question  of why the whole C-3A District
   should not  be increased  to comparable  densities, unless  other
   public benefits  justify the proposed  FSR increase.   Without an
   area-wide analysis to determine whether the area could sustain an
   approximate  doubling  of  density,  staff  would  have   serious
   concerns about street capacities and overcrowding of buildings.

   Policy Benefits    Various Council policies  provide for priority
   processing and a Council  predisposition to support  applications
   incorporating  certain uses (e.g.,  non-market housing  or rental
   units,  SNRF  including  community   care  facilities,  daycare).
   Heritage retention is also an explicit Council priority.  In some
   instances, specific public amenities have also been identified by
   staff  and supported  by Council  as desirable  objectives  to be
   achieved  through  rezonings.   Even  if  a  rezoning application
   embodies  one or more  of these  priority public  objectives, the
   density  and  form  of  the  proposed  development  must  achieve
   sufficient compatibility with surrounding development if  Council
   approval is to be obtained.

   Council policy  also indicates that  priority should be  given to
   rezoning  applications that are submitted with evidence of having
   secured support from the surrounding neighbourhood.

   The rezoning application submitted for the Holiday  Inn site does
   not include  any of the  uses or public amenities  encompassed by
   current Council  policy as being  priority City objectives.   The
   applicant has,  however, proposed an  assembly space, to  be made
   available for  use by  Fairview Slopes  residents, and  indicated
   that  local support  for the  rezoning has  been obtained  on the
   basis of this local amenity.

   Density Transfer     Density may  be transferred  under Council's

   "Transfer of  Density Guidelines",  from other  sites within  the
   central area.  Therefore, an applicant may purchase density to be
   used on this site if there is a public purpose to be achieved.
   Such a transfer could increase the density available on the site,
   as  in the  recent case  of  1098 Robson  Street, where  "banked"
   heritage  density bonus  FSR was  purchased from the  former B.C.
   Hydro building.   No density from  a "donor" site  is proposed in
   this application.

   Public  Benefit Bonus    When  an applicant  offers to  provide a
   public  benefit  such  as  retaining  and  upgrading  a  heritage
   building or  where there  is a demonstrated  need for  creating a
   social, cultural or  recreational facility,  the normal  approach
   taken by Council has been to support an increase in dwelling unit
   density  or   floor  space  sufficient  to  offset  the  cost  of
   developing that benefit, to ensure that the owner is made neither
   better nor  worse off.   This "quid  pro quo"  approach seeks  to
   ensure that the value of  the public objective to be  provided by
   the  rezoning is  equal  to  the value  of  the private  benefits
   conferred  by the rezoning.   Marginally greater densities may be
   supported  if  the   project  will  also  achieve   urban  design
   advantages.  

   Staff believe  this approach  is appropriate in  the case  of the
   Holiday Inn because the site's allowable density has already been
   more than fully  utilized by the existing hotel.   Any additional
   density  allowed  through  rezoning  is  a  "bonus"  that  should
   generally  be  matched  by  "public  benefits"  of  equal  value.
   However,  the   applicant   states  that   this   method   offers
   insufficient density to make the project attractive to the owner.

   Multiple Benefits    The public benefit  bonus approach described
   above does  not preclude  other benefits of  a project  from also
   contributing  to the  rezoning  rationale  in  addition  to  that
   justified by the  FSR bonus.   For  example, pedestrian  oriented
   streetscape improvements to  the hotel frontage on  West Broadway
   would also be  a public benefit, any  cost of which exceeded  the
   value  of floor  space gained  could be  factored into  the bonus
   calculation.  Additional density could also be transferred to the
   site from a suitable "donor" site.

   CAC  Equivalent    The  applicant contends  that as  long as  the
   public benefit of  the rezoning has a value  exceeding what would
   otherwise  be  levied  as a  Community  Amenity  Contribution, it
   should  be sufficient to  justify the maximum  density considered
   physically compatible  on the  site.  Staff  do not  support this
   proposition as it  discounts entirely the  existing development's
   non-conformity  that  would   be  exacerbated  by  further   site
   development.   This is  a completely  different type  of rezoning
   which does  not involve  conversion of  previously industrial  or
   commercial densities to residential densities with their inherent
   servicing needs.  Council
   policy requires CAC  payments to offset those needs.   An amenity
   provided   as  a  public  benefit  of   rezoning  is  a  separate
   consideration.

   CONCLUSION

   In order to assess the  merits of the rezoning application, staff
   are seeking  Council direction  regarding the  appropriate public
   benefit rationale which should be used for this type of rezoning.
   Staff  believe   that  land   use  compatibility   alone  is   an
   insufficient  reason  to  support  a  rezoning  given  the  major
   precedent  implications for other sites in the Broadway corridor.
   To  distinguish this site from  other comparable sites requires a
   rationale  based on some combination of specific public benefits.

   Previous applications which appear relevant suggest that the cost
   of  providing  a  specific and  desirable  public  benefit should
   justify  a corresponding  FSR  increase.   If  other physical  or
   policy benefits are identified, these  may also be factored  into
   the "quid pro quo" pro forma analysis.

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