SUPPORTS ITEM NO. 3
                                           P&E COMMITTEE AGENDA
                                           OCTOBER 26, 1995    


                                 POLICY REPORT
                                URBAN STRUCTURE


                                           Date: October 11, 1995
                                           Dept. File No.  MG


   TO:       Standing Committee on Planning & Environment

   FROM:     Director of Central Area Planning, in consultation with
             Manager of Real Estate Services
             General Manager of Engineering Services
             General Manager of Corporate Services
             General Manager Human Resource Services
             General Manager of Park Board
             Director of Social Planning and
             Manager of the Housing Centre

   SUBJECT:  Planning Process - Southeast Shore of False Creek


   RECOMMENDATION

        A.   THAT  the boundaries,  management structure,  planning process
             and timing, beginning  in January 1996, for the preparation of
             an Overall Policy Statement,  an Official Development Plan and
             zoning for the Southeast Shore of False Creek, as described in
             this report, be approved at an estimated cost of $801,700.

        B.   THAT funding for the  first step of the project  (January 1996
             to March 1997) be provided by the Property Endowment Fund at a
             cost  of $374,700 and that this amount be credited against any
             rezoning  fees incurred by the Property Endowment Fund for the
             site in future years;

             AND  THAT subject to Council approval at  the end of step one,
             funding for subsequent steps of the project ($183,300 in  1997
             and $243,700 in 1998) be provided in the Operating Budget.
        C.   THAT  Council approve  the following  staff resources  for the
             planning  project, subject  to job  evaluation by  the General
             Manager of Human Resource Services:

             Planning
             -  professional and technical staff                   $116,600
             -  clerical staff                                     $ 28,800

             Social Planning
             -  professional staff                                  $29,500

             Parks
             -  professional staff                                  $10,000

             Engineering
             -  technical staff                                    $ 35,000

             Public Consultation Costs                             $ 24,000
             Computers and Furniture                               $ 10,000
             Consultants                                           $ 60,000
                                                                   $313,900

                                     - 2 -

   GENERAL MANAGER'S COMMENTS

        The General Manager of Community Services recommends approval of A,
        B and C.

   COUNCIL POLICY

   On  August  30, 1988,  Council approved  several policies  for Southeast
   False Creek,  as part of the  False Creek Policy Statement,  on land and
   water use, social mix and amenities.  

   On  July  26, 1990,  Council identified  lands,  north of  First Avenue,
   between the Cambie  City Works Yard and Quebec Street,  on the Southeast
   Shore of False Creek as an area that should be  released from industrial
   use and directed staff to  report back on a work program to  prepare new
   zoning.

   On  October 16, 1990, Council adopted the  Clouds of Change report which
   called for planning initiatives that:

   -    bring housing and employment closer together;

   -    increase housing adjacent to Vancouver's Central Area; and

   -    with respect  to the  Southeast Shore  of False  Creek, incorporate
        principles of energy efficient community design in the area plan.

   On May  2, 1991, Council resolved that the City should set rezoning fees
   to achieve 50%  cost recovery for  processing rezoning applications  for
   mega-projects.
   On December  3, 1991, as part of the Central Area Plan, Council resolved
   that:

   -    housing  should  be the  predominant  land  use when  planning  the
        Southeast Shore of False Creek;

   -    the location of the City's Cambie Works Yard be reaffirmed until at
        least 2003; and 

   -    the provision of housing for families with  children was identified
        as a priority for Southeast False Creek.

   On  November  17,  1993,  City   Council  approved  the  Vancouver  Arts
   Initiative that included a  recommendation that staff review  and report
   back  on the  availability  and feasibility  of developing  a City-owned
   site,  in  particular on  the south  shore of  False  Creek, as  an Arts
   Resource Centre.

   On February 22, 1994, City Council approved the recommendation:

        "THAT  the preservation  of a  transportation corridor,  capable of
        facilitating a  streetcar line,  be incorporated into  the planning
        program for Southeast False Creek..."

   On December 6, 1994, City Council approved the recommendation:

        "THAT  the  Special Office  for  the  Environment liaise  with  the
        Director  of Planning and the Director of Housing and Properties to
        explore the  potential for utilizing City lands  in Southeast False
        Creek as a model for sustainable development."


   SUMMARY

                                     - 3 -

   Staff  recommend that work begin on a comprehensive planning process for
   the development of  a residential  community on the  Southeast Shore  of
   False Creek.   The boundaries proposed  for the  planning area are:  the
   Cambie  Street bridge, Second  Avenue, Main Street,  Terminal Avenue and
   False Creek.   The study area encompasses the  waterfront lands north of
   First Avenue and west of Quebec Street (primarily owned by the City) and
   privately  owned lands (and some City-owned lands) south of First Avenue
   and east of Quebec street (see map in Appendix 'B').
   A three-step  planning process is  recommended for the  waterfront lands
   north of  First Avenue similar to that  undertaken for False Creek North
   and Coal  Harbour.    First is  the  preparation of  an  Overall  Policy
   Statement to be completed by the first quarter in 1997.  This step  will
   resolve competing public objectives for the  site.  Next, a Concept Plan
   and an Official  Development Plan (ODP) will  be completed by the  first
   quarter 1998 for  the waterfront lands.  It will  include concepts for a
   transit-oriented,  environmentally  sustainable  neighbourhood  and  for
   energy  efficiency.   An  urban design  scheme  will also  be  prepared.
   Third,  CD-1  rezonings  will be  completed  for  each  sub-area of  the
   waterfront  lands including a detailed  form of development.   This step
   will conclude in December 1998.  If market conditions, soil remediation,
   and overall  project economics  are favourable,  residential development
   may begin in 1999.

   A coordinated  planning process  will be  undertaken  for the  privately
   owned sites south of First Avenue and east of Quebec Street.  The future
   use,  built  form  and amenity  requirements  for  this  portion of  the
   planning area  will be set by  the Overall Policy Statement.   Once this
   and the ODP for the  waterfront lands are completed, these sites  can be
   rezoned through City or privately initiated rezonings.

   It is recommended that staff resources and a  budget for consultants and
   public  consultation  be approved  for  the preparation  of  the Overall
   Policy Framework, Official Development Plan, and rezonings (see Appendix
   'A').  Council should note that following the first step (Overall Policy
   Statement), depending  on soil remediation and  infrastructure costs and
   achievable  densities,  Real Estate  staff  may  recommend for  economic
   reasons,  that the Property Endowment  Fund (PEF) not  continue with the
   rezoning of the waterfront lands, north of First Avenue.  Funds advanced
   by the PEF for the first step of the planning programme would be written
   off  as  a cost  of doing  business.   Alternatively,  if  the programme
   proceeds to rezoning  the lands, the advanced funds will  be credited to
   the PEF through a reduction in rezoning fees.

   A  consultancy  to  identify  initiatives  and  municipal  policies  for
   achieving  environmental  sustainability  is recommended.    Council has
   indicated  an interest  in  utilizing  the City  lands  as  a model  for
   sustainable  development.  Staff have met with a group of professionals,
   academics  and developers and have identified a draft list of ecological
   principles for a model sustainable community (attached as Appendix 'C').
   These  will  be used  as a  basis  for the  terms  of reference  for the
   proposed consultancy on  environmental and  sustainability policies  and
   initiatives.      Consultancies   for   transportation,   urban  design,
   translations and research are also envisioned for Step  One.  The hiring
   of  design  consultants for  Steps  Two and  Three  will be  proposed to
   Council in 1997.  
   It  is recommended that the Major Projects Steering Committee, which has
   supervised  work on Coal Harbour and False Creek North, co-ordinate this
   inter-departmental staff initiative, undertake the role of regulator and
   identify  standards  for the  provision  of site  amenities.   Planning,
   Parks, Social Planning, Housing  Centre and other appropriate staff  are
   on this committee.  Real Estate staff will have the role of developer of
   the property, represent the interest of the City as a property owner and
   be seeking a reasonable return on the City's property asset.  

                                     - 4 -

   PURPOSE

   This report  recommends boundaries,  a management structure,  a planning
   process,  schedule  and  resources  for  the  preparation  of  a  policy
   framework,  an Official  Development Plan and  zoning for  the Southeast
   Shore of False Creek.

   BACKGROUND

   It is timely to now begin the preparation of policies for development of
   the  Southeast Shore  of  False Creek.    Once the  planning  process is
   approved,  a report on the  hiring of a  development consultant, working
   under the direction of Real Estate staff, will be presented to Council.

   Existing Ownership, Land Use and Zoning

   Almost  all properties north of  First Avenue between  Quebec and Cambie
   Streets are  City-owned.   Sites not  owned by  the City include  Egmont
   Towing,  Sauder, Burlington Northern, and  a site owned  by B.C. Transit
   (see map in Appendix 'B').

   North  of First Avenue, between Cambie Street and Main Street, most long
   term industrial activities have gone, with the exception of:

        -    the City-owned Cambie Works Yard; and
        -    Egmont Towing  (privately owned)(option to purchase  in favour
             of the City at market value in 2005).

   South  of First  Avenue, the area  is privately  owned.   Most sites are
   occupied by  light and heavy  industrial uses, including  metal working,
   warehouses and auto repair activities.  There is an increasing number of
   commercial, office and retail uses on Second Avenue.  Sites  fronting on
   Main  Street   and  Quebec  Street  are  developed  with  low  intensity
   commercial  uses.   The  Vancouver  Playhouse  Production Centre  is  an
   important cultural use located on West First Avenue.

   The proposed planning area is currently zoned M-2 (heavy industrial) and
   FC-1 (commercial) (see map on page 5).
   DISCUSSION

   The  following major  issues  must  be  considered in  establishing  the
   planning process for the Southeast Shore of False Creek.

   1.   Proposed Boundaries

        It is proposed that the boundaries  for the planning area be Cambie
        Street,  False  Creek,  Main  Street, Terminal  Avenue  and  Second
        Avenue.  This  area contains  approximately 80 acres  of which  the
        City owns 47 acres, including streets and excluding the water lots.
        The boundaries are suggested because:

        -    the  planning  area  includes   the  city-owned  False   Creek
             properties and  adjacent  lands where  residential  and  other
             compatible uses can be considered;

        -    Council resolved in 1989, as part of the Bosa rezoning for the
             'Citygate'  project, that  the block  bounded by  Main Street,
             Terminal Avenue,  Quebec Street and Second  Avenue be included
             as  part  of  the  Southeast  Shore  of  False  Creek planning

                                     - 5 -

             process;



























        -    the  lands east of Main Street are  under study as part of the
             False Creek Flats Study; and

        -    the industrial  area south of Second Avenue  was identified in
             the  Mt. Pleasant  Policy Plan  and Industrial  Lands Strategy
             recently by Council as an area that should remain industrial.

   2.   The Planning Process and Timing

        A three step planning process is proposed that can be initiated  in
        November  1995  and   result  in  a  site   ready  for  residential
        development in 1999.  This process is illustrated below.

                                     - 6 -




























        Step 1

        Preparation of the Overall Policy Statement -
        1st Quarter 1996 - 1st Quarter 1997

        Public  Consultation:  1st  Quarter  1996,  2nd  Quarter  1996  and
        1st Quarter 1997

        Council Reviews - 3rd Quarter 1996 and 1st Quarter 1997
        Products:

        -    Overall  Policy  Framework  for   the  development  of  a  new
             residential community that guides detailed planning and design
             for the City-owned and adjacent privately-owned lands.

        -    Environmental Sustainability and Energy Efficiency Principles

        The  formulation  of  the  Overall Policy  Statement  will  involve
        addressing  a complex set of objectives and responding to community
        input.  Land use, built form, financial, environmental, and amenity
        objectives will have to be balanced.  Due to the complexity of this
        task  and the strategic  importance of this  site, a 15  month time
        frame is  suggested for  preparation  and approval  of the  Overall
        Policy  Statement.   Planning staff  will manage  this work.   Real
        Estate  staff, the  Development  Consultant and  other owners  will
        present the financial and  development implications as policies are
        drafted.

        Council will  set policy  directions in two  stages.  In  the first
        stage, land  use and transportation  patterns, and the  approval of
        Principles for an Environmentally  Sustainable Community  and other
        issues will be  finalized in  mid-1996.  Next,  policies for  built
        form, amenities, social and  housing mix will be considered  in the
        second stage, to be completed  in March 1997.  A two  stage process
        is  suggested  due  to the  desirability  of  first clarifying  how
        environmental sustainability  and energy efficiency  objectives can
        be achieved on an economic and practical basis.  Also, the land use

                                     - 7 -

        and  transportation patterns must be identified in the first stage.
        Several opportunities for  public involvement have been  identified
        because   there   has   been   significant   public   interest   in
        environmental, design, and other issues relating to the site.

        Council has  also initiated a Water Body Study examining the use of
        Vancouver  Waterfront areas  and waterbodies.   The  conclusions of
        this study will be coming forward in coordination with planning for
        the Southeast Shore of False Creek.

        Council  may choose to not  proceed to Steps  Two (ODP Preparation)
        and  Three(CD-1  Rezonings)  after  considering  the  economics  of
        developing the site.   This  will be determined  by the  achievable
        densities, permitted uses and the costs of infrastructure and  soil
        remediation.   
        Step 2

        Preparation of the Official Development Plan (ODP)
        2nd Quarter 1997 - 1st Quarter 1998

        Council Review - 3rd and 4th Quarter 1997

        Public Hearing - 1st Quarter 1998

        Products:

        -    energy  efficiency and  environmental  concepts for  community
             design;

        -    a  Concept Plan and Urban Design Scheme that will identify the
             basic arrangement of uses,  building massing and heights, open
             space,  shoreline,  circulation   patterns  and  a   preferred
             character for the public realm;

        -    social mix and social housing requirements;

        -    standards  for  the   provision  of   public  facilities   and
             infrastructure and phasing;

        -    Official Development Plan approved at Public Hearing; and

        -    identify and preserve transportation corridors and systems.

        The adoption of  an Official  Development Plan  for the  waterfront
        site  north of First Avenue  offers the advantages  of achieving an
        overall  pattern of development,  service and  amenity requirements
        and  public objectives for a  large site where  development will be
        phased over time.

        The Clouds  of Change report, approved by  Council, recommends that
        the  City sponsor a design competition aimed at achieving an energy
        efficient community in  Southeast False Creek.   Staff suggest that
        as  an  alternative  to a  competition  that  the  City hire  three
        consultants  to work  independently  on urban  design concepts  and
        environmentally sustainable and energy efficient design.  This will
        ensure  a  variety of  ideas  and innovative  design  proposals are
        generated without resorting to the time, formality and expense of a
        competition.  The design schemes  prepared by the consultant  teams
        can be melded or alternatively, one of the schemes could be refined
        for adoption.
        The staff team will be responsible for engaging in discussions with
        the  development  consultant and  their  design team  on  land use,
        infrastructure, amenity and social planning requirements, assessing
        the Official  Development Plan  rezoning  application and  mounting

                                     - 8 -

        public meetings.

        The Development Consultant, to be selected by City Council, will be
        responsible  for submitting a  concept for the  ODP consistent with
        the  Policy Statement,  managing  design  consultants and  formally
        applying for the ODP.  This is similar to the False Creek North and
        Coal  Harbour   processes  where   the  developer   undertook  this
        responsibility leading to full staff assessment.

        Step 3

        CD-1 and other Rezonings -
        1st Quarter 1998 - 4th Quarter 1998

        Council Review of first phase rezoning - 4th Quarter 1998

        Products:

        -    a CD-1 rezoning for each phase of development.

        -    other rezonings (CD-1 or District Schedule) for sites south of
             First Avenue.

        Staff  will   be  responsible  for  having   discussions  with  the
        development consultant team on the preparation of the CD-1 rezoning
        applications and  the proposed forms of  development, assessing the
        submitted applications  and mounting public meetings.   During this
        stage, staff will  also be considering rezonings on  the properties
        south  of  First  Avenue and  east  of  Quebec  Street, within  the
        planning area.

        The development  consultant will  be responsible for  preparing and
        submitting  the  CD-1  rezoning  applications  for  the  city-owned
        waterfront lands, north of First Avenue.

        Step 4

        Development
        1999

        Assuming that  site rezonings  begin  in the  fourth quarter  1998,
        development application  processing, site preparation  and building
        construction  could begin  in 1999,  subject to  project economics,
        densities and the costs of soil remediation.
        Rezoning Privately Owned Sites  (South of First Avenue and  East of
        Quebec Street)

        Once  the Overall  Policy  Statement (Step  One)  and the  Official
        Development  Plan  (Step  Two)  have been  completed  in  1997, the
        preferred uses  and built form for the  privately-owned sites south
        of First Avenue and East of Quebec Street will be clear.  Rezonings
        could proceed in this area in 1998.

        The B.C. Environmental Assessment Act

        In  June 1995  the Provincial  Government proclaimed  the  new B.C.
        Environmental  Assessment  Act   which  requires  an  environmental
        assessment of large-scale  projects.  The environmental  assessment
        can  take  anywhere from  18 to  42  months and  involves technical
        review  and public  hearings held  by the  Environmental Assessment
        Board.  Staff will discuss the legislation with Provincial staff to
        clarify whether planning the Southeast Shore of False Creek must go
        through  the environmental assessment process.   Should this be the
        case,  staff will report  back to  Council on  the timing  and cost

                                     - 9 -

        implications and  seek further  Council direction.   At this  time,
        staff do not expect this planning  initiative to be subject to this
        review.

   3.   Management Structure 

        It is suggested that the  City's Major Projects Steering Committee,
        which  was  established to  co-ordinate  staff work  and  work with
        developers in  the large downtown  projects, should play  a similar
        role in  the planning of the  Southeast Shore of False  Creek.  The
        City's  interest in  public  facilities,  infrastructure,  housing,
        cultural  and  social objectives  and  key  aspects of  development
        regulation will be the  responsibility of this group.   Real Estate
        staff  in the Corporate Services  Department will have  the role of
        developer  and be  responsible for  ensuring an adequate  return is
        achieved from the City's property assets.  They will not sit on the
        Major Projects Steering  Committee, but  will attend  on a  regular
        basis for a cooperative process.

   FINANCIAL IMPLICATIONS

   Planning  for the  Southeast  Shore  of  False  Creek  will  require  an
   estimated total funding of  $801,700 over a three year  period beginning
   in 1996.   That requirement is comprised of one  time funding of $70,000
   for start-up costs and consultant studies in 1996 and annually recurring
   costs estimated at  $243,900 for  additional staff  and other  expenses.
   These expenses are detailed in Appendix 'A'.
   As  the likely developer  of the majority  of the property  in the study
   area,  the Property Endowment Fund will be responsible for rezoning fees
   at the  time it brings forward  specific rezoning applications.   In the
   interests of proceeding with this planning work, it is proposed that the
   Property Endowment Fund  provide the funding  for the first step  of the
   work detailed  in  this  report,  that  is,  all  work  leading  to  the
   development of  the overall  policy framework.   This  contribution will
   then be  credited against the eventual  rezoning fees due for  the site.
   It  is  anticipated that  the  cost of  step one  will  be approximately
   $374,700 over  1996 and 1997.  Should Council choose not to proceed past
   step  one, the Property  Endowment Fund will  receive no credit  for the
   development costs paid up front.

   At the  end of  step  one, Council  will have  to  determine whether  to
   continue  with the balance  of the planning program  based on the site's
   development  economics.     Should  the  study   continue,  funding  for
   additional steps would have  to be provided in equal  instalments in the
   1997 and 1998 Operating Budgets, with  recovery of 50% of the costs from
   eventual rezoning applications.

   ENVIRONMENTAL IMPLICATIONS

   This project offers  an opportunity  for the City  to pursue  innovative
   planning  and site development with the objective of fostering an energy
   efficient and environmentally sustainable community.  A draft ecological
   framework for  planning this area is attached as Appendix 'C'.

   SOCIAL IMPLICATIONS

   There  will be  an  opportunity to  provide  housing for  families  with
   children  and the  development of  a socially  diverse community  in the
   planning area.

   CONCLUSION

   The  Southeast Shore of False Creek provides the opportunity for housing
   oriented  to families and a mix of household incomes, public facilities,

                                    - 10 -

   park development, development of a streetcar line, and the completion of
   the  last  link  in  the  False  Creek  seawall.    It  also offers  the
   opportunity  to be  a  showcase for  innovative environmental  planning.
   Work should  get underway now so that a policy framework, ODP and zoning
   are in place to take advantage of market conditions when appropriate.


                           *     *     *     *     *
                                                                 APPENDIX A


                    RESOURCES REQUIRED FOR NEW CITY STAFF,
                      CONSULTANTS AND PUBLIC CONSULTATION


   1996 - 1998
   Recurring Expense for Three Years

        Staff or Item

        Planning
        -    professional and technical staff
             (two full time temporary positions)                   $116,600
        -    clerical staff (one full time temporary position)      $28,800

        Social Planning
        -    professional staff 
             (one part-time temporary position)                     $29,500

        Parks
        -    professional staff                                     $10,000

        Engineering
        -    technical staff
             (one full time temporary position)                     $35,000

        Public Consultation Cost                                    $24,000

                 TOTAL - Recurring Expense                         $243,900


   1996
   Non-Recurring Expense

        -    Transportation Study (Integration of
                 land use and transportation)                      $ 20,000
        -    Consultancy on Environmental                          $ 30,000
                Sustainability
        -    Other Consultancies (e.g. translations,
                urban design, research)                            $ 10,000
        -    2 Computers and Planning Furniture                    $ 10,000

                 TOTAL - Non-Recurring Expense                     $ 70,000


                 TOTAL - 1996                                      $313,900
                                                               APPENDIX 'C'
                                                                Page 1 of 2

   SOUTHEAST FALSE CREEK
   Draft Ecological Framework for Planning New Community

   A model sustainable community

                                    - 11 -

   The City of Vancouver will plan and develop the Southeast Shore of False
   Creek  as  a  model  sustainable community,  considering  the  following
   initiatives and planning principles:

   managing our land consumption

   -    use land efficiently and intensively to house residents
   -    locate shopping and services within walking distance
   -    minimize area that is paved over for cars

   managing our energy consumption

   -    shape  the  built environment  to  achieve  efficiencies in  energy
        production, distribution and use
   -    reduce auto dependence by:
        -    fostering   live/work   opportunities   to  reduce   commuting
             requirements
        -    making it easy to walk, cycle and take transit
   -    reduce energy consumption by:
        -    using  geothermal  or  district  heating  systems  and passive
             heat/cooling management
        -    using low-energy lights

   managing our water consumption

   -    reduce and manage water consumption by:
        -    using low-flush toilets and shower heads
        -    collecting rain for watering lawns and gardens
        -    planting drought resistant landscaping


   managing our waste

   -    reduce waste and landfill requirements by:
        -    encouraging re-use of materials
        -    providing easy recycling systems
        -    providing composting areas
        -    processing liquid waste on-site
   -    reduce the requirements  for storm sewers by  using water absorbing
        landscaping treatments (eg. soil or grass rather than pavement)

   managing our landscaping

   -    provide for a 'green' neighbourhood by:
        -    maximizing as much  as is  feasible the area  that is  planted
             with vegetation
        -    providing for food gardens                          APPENDIX C
                                                                Page 2 of 2


   creating a liveable community

   -    incorporate social diversity principles  by providing for a variety
        of housing types
   -    providing public amenities on-site
   -    encourage pedestrian-friendly architecture

   fostering ecological learning

   -    encourage on-site ecological learning through exhibitions

                                    - 12 -


   GOR/020-0661