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