SUPPORTS ITEM NO. 4 
                                                       P&E COMMITTEE AGENDA
                                                       JUNE 22, 1995       

                                 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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