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. * * *