POLICY REPORT URBAN STRUCTURE Date: October 24, 1995 Dept. File No. MK-95009 TO: Vancouver City Council FROM: Director of Central Area Planning, in consultation with the General Managers of Engineering Services and Parks & Recreation, the Directors of Social Planning and Legal Services, and the Manager of the Housing Centre SUBJECT: Rezoning: 572 Beatty Street (International Village) RECOMMENDATIONS A. THAT the application by International Village Architects on behalf of Henderson Development (Canada) Ltd. to amend CD-1 By-law No. 6747 be referred to Public Hearing, together with: (i) development statistics included in Appendix F of this report; (ii) plans received from International Village Architects, dated March 22 and July 31, 1995; (iii) draft CD-1 By-law provisions, generally as contained in Appendix A; (iv) the recommendation of the Director of Central Area Planning to approve the application, subject to conditions of approval contained in Appendix B; (v) draft design guidelines included as Appendix C; and (vi) consequential amendments to the False Creek North Official Development Plan, including changes to residential unit count and floor areas for market and non-market housing, commercial floor area, views, and maximum tower heights. FURTHER THAT the Director of Legal Services be instructed to prepare the necessary by-laws for consideration at Public Hearing, including amendments to the Sign By-law to establish regulations for the CD-1 in accordance with Schedule B(DD). B. THAT Council adopt Recommendation A on the following conditions: (i) THAT the passage of the above resolution creates no legal rights for the applicant or any other person, or obligation on the part of the City; any expenditure of funds or incurring of costs is at the risk of the person making the expenditure or incurring the cost; (ii) THAT any approval that may be granted following the Public Hearing shall not obligate the City to enact a by-law rezoning the property, and any costs incurred in fulfilling requirements imposed as a condition of rezoning are at the risk of the property owner; and (iii) THAT the City and all its officials, including the Approving Officer, shall not in any way be limited or directed in the exercise of their authority or discretion, regardless of when they are called upon to exercise such authority or discretion. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A and B. COUNCIL POLICY Relevant Council policy includes: - The False Creek Policy Statement approved in August 1988 - The False Creek North Official Development Plan (FCN ODP) approved in April 1990 - The International Village CD-1 By-law No. 6747, and Form of Development approved in October 1990 - The Central Area Plan approved in December 1991 - Revised 20% Social Housing Policy approved in April 1993 PURPOSE This report evaluates an application by Henderson Development (Canada) Ltd. (formerly Interville Development Ltd.) to amend the False Creek North Official Development Plan (FCN ODP), the existing CD-1 By-law and the approved form of development for International Village (sub-area 8) in False Creek North. SUMMARY In June 1995, Council authorized staff to review and seek public input on several proposed changes to the current zoning and approved form of development on the International Village site, based upon a series of directions on key issues of City concern. The current proposal is generally consistent with those directions, except as noted below. The developer (Henderson) wants to increase the maximum number of residential units to 1,400 units. This would be done by smaller units and converting commercial and hotel space to residential. A separate report in July established a framework to consider smaller unit sizes for all of False Creek North subject to meeting public amenity standards. The Central Area Plan supports conversion of commercial to residential use. Staff support the proposed housing increase within existing floor area allowances. This increase will generate additional family housing, non-market housing, daycare and park requirements. Henderson is prepared to provide for these either on-site or by payment-in-lieu for non-market non-family housing and park. The payment-in-lieu proposals will be reported separately to Council prior to the referral of this rezoning application. The developer wants to change the non-market housing locations to provide sites that are easier to implement. While family non-market requirements (10%) would be met on-site, a payment-in-lieu is proposed for off-site non-market non-family units. This could be used either for the purchase of social housing sites, or the purchase and renovation of a nearby Single Room Occupancy (SRO) hotel. Staff support these changes, acknowledging the need for community discussions to review investment options for these funds. Staff support the developer's proposal to concentrate more commercial space on Parcel E (see map on page 5 for parcel locations), within overall floorspace maximums now permitted. The marketplace design maintains retail continuity along Abbott and Pender Streets, proposes a major public activity space, and has been configured to emphasize a diagonal pedestrian access through it. This has received strong public support. The developer wants to locate a new 24-storey tower on Parcel E. This will require provision of alternate view corridors to The Lions and Sun Tower as required by the ODP, but from other locations in nearby public park areas. Given the public support, and equivalent replacement views proposed, staff support the changes to ODP views. The developer wants to increase tower heights to accommodate massing relocated from Parcel B. The higher building scale on the southerly part of the site is compensated by a decrease in massing on the northerly part, with reduced shadowing on Pender and Abbott Streets. Staff support these changes. The developer wants to reduce residential and commercial parking standards to be consistent with other downtown areas. Staff believe currently approved residential standards reflect actual needs, and are consistent with other downtown and False Creek North areas. Staff recommend no change to current parking by-law requirements for residential use to ensure adequate resident and visitor parking during busy commercial periods and during events at BC Place and GM Place. However, modest adjustments are recommended for commercial parking standards to recognize overlapping uses of parking and the availability of other off-street commercial parking. The developer wants to change the approved one-way traffic system on Abbott Street south of Pender, to two-way traffic. Engineering staff will report back on this issue prior to zoning enactment. BACKGROUND A preliminary rezoning application for International Village was submitted in March 1995. A report on key issues was considered by Council on June 22, 1995 which authorized staff to review a number of proposed changes to the current zoning and approved form of development, including: - increasing the number of residential units by conversion of hotel and other commercial floorspace, and smaller unit sizes within current floorspace allowances in International Village; - changing the mix and location of social housing, including payment- in-lieu for non-family units; - changing the form of development and adding a new tower on Parcel E; - revising view corridors through the site; - increasing the height of all towers; and - adjusting parking standards. At that time, Council also chose not to reaffirm the approved one-way Abbott/Carrall couplet, and indicated it was prepared to consider 2-way traffic on Abbott Street, south of Pender. The final application was submitted on July 31, 1995. An extensive public process, including meetings with Civic Advisory Groups, adjacent land-owners and merchants, the general public and nearby neighbourhood groups was undertaken between June and October, 1995. DISCUSSION Site and Context This site is located to the north of the Dunsmuir Viaduct, between Pacific Boulevard North and Pender Street, extending east from Beatty Street to Taylor and Quebec Streets. To the north is Victory Square and Gastown, to the east is Chinatown, and to the south is the new GM Place Arena. Completed sections of International Village include the mixed use development on Parcel C called "Paris Place", the Keefer Steps public area and pedestrian connection to Beatty Street, Andy Livingstone Park, and the streets and services. Paris Place includes a 32-storey residential tower, and an 8-storey residential mid-rise building on top of a 2-storey commercial podium. Site excavation has also been completed for Parcels E and F, on the east side of Abbott Street. Staff also note that Concord Developments remains the legal owner of the site, and it will be an obligation of Concord to satisfy the City that the agreements will bind not only also Concord, but Henderson and other beneficial owners. Proposed Development Up to 1,400 residential units are proposed, comprising 109 620 m› (1.18 million sq. ft.), in towers and low-rise buildings. The six towers range in height from 24 to 34 storeys (70 m to 91 m). See Appendix D for the overall design concept plan. Two non-market housing sites on Parcels A and D would accommodate 140 family units. An additional 140 non-family units are proposed as a payment-in-lieu for off-site investment. A community centre, elementary school and daycare are located next to Andy Livingstone Park on Parcel F. Approximately 38 090 m› (410,000 sq. ft.) of commercial space is proposed, of which 18 580 m› (200,000 sq. ft.) will be retail. Most of this is contained in a central marketplace located on Parcel E. Retail uses are also located at grade along Pender and Abbott Streets, and around the Keefer Circle. Increasing the Number of Residential Units Currently, a maximum of 800 units are allowed in International Village. To date, 177 units have been built on Parcel C. The developer wants an increase of 600 units by reducing average unit sizes and converting 33 000 m› (355,000 sq. ft.) of hotel and commercial space. In June, Council agreed to further consider this proposal. In July, the issue of smaller unit sizes for all of False Creek North, including International Village, was reported, and Council established parameters and public requirements generated by this request. The approach used in considering an increase in the International Village unit count and suggesting a framework for amenity provisions is consistent with what has been approved for all of False Creek North. The commercial conversion (also to smaller units) is different from reconfiguring existing residential space, since it increases residential building area. The Central Area Plan supports the conversion of commercial to residential use in the downtown outside of the CBD. Public review has indicated general support for the unit increase in the International Village situation. Subject to conditions securing public requirements outlined in Appendix B, staff support the proposed increase in residential units in International Village. Public Requirements to Serve More Housing An increase in units and population will generate additional public requirements for family housing, social housing, daycare and park space. Some of these will be provided on-site, while others are proposed as payments-in-lieu. Community facility and school needs can be accommodated by planned and already committed facilities. The International Village zoning was approved prior to the implementation of the City's Public Art Policy. As the total amount of development is unchanged, no public art requirement has been applied to the current rezoning proposal. A. Daycare There is an increased childcare demand of 7 spaces. This represents a value of about $194,000. Staff recommend this childcare need be met by increasing the planned daycare size by 1,000 sq. ft. and a $40,000 payment-in-lieu contribution to the City Childcare Endowment Fund. The daycare site is excavated and is not available for temporary use until development is completed. An additional condition is recommended requiring the provision of a temporary site and/or leasable space on other parcels, should there be a demand for the daycare prior to the permanent facility being constructed. B. Parks The increase in site population would need additional park space to satisfy ODP requirements. Staff support a payment-in-lieu for this. Proposed payment-in-lieu amounts for park and non-market housing will be reported separately to Council prior to zoning referral. C. Non-Market Housing - On and Off-Site Henderson wants to separate the non-market and market housing components to enable independent phasing of projects. They propose consolidating 140 family non-market units on Parcels A and D, and providing for non- family requirements through a payment-in-lieu of equivalent value for off-site investment by the City (eg. acquisition of sites and/or contribution toward the purchase and rehabilitation of an SRO hotel nearby). In June, Council agreed to further consider these proposals. Public review has indicated general support from the local community. The proposed family projects are larger than presently approved in the CD-1 zoning, but are within BCHMC guidelines. Given the very limited funding for non-market seniors' housing, staff support using payments- in-lieu to assist in providing the housing nearby. The revised non- market housing policy approved in April 1993 allows for this. These funds would be secured at the zoning enactment stage, allowing for an early start on the off-site housing facilities. Funding is available under the Homeless/At Risk Program for low-income downtown seniors housing. Staff support these changes in non-market housing provisions, noting that the East Downtown Housing Plan will provide a context for the appropriate investment of these funds. Commercial Floorspace Redistribution Henderson wants to redistribute and reduce the remaining commercial space and focus it on Parcel E; the marketplace would increase to 23 250 m› (about 250,000 sq. ft.). No increase to the overall retail component is proposed. Current street-fronting retail would be generally maintained, but depths would be reduced and most second floor commercial space would be relocated. In June, Council agreed to consider these changes subject to submission of a retail impacts study and its review with local shopping area interests including Chinatown and Victory Square. A retail impact study submitted by the applicant has been reviewed by staff and with the public. Strong support was received from Chinatown and other local commercial interests for the proposed changes to retail distribution (see Appendix G). Accordingly, staff support this change. Marketplace Design and Pedestrian Access The developer proposes to develop the marketplace on Parcel E as an enclosed 3-storey structure with a major interior public activity space and pedestrian corner connections to adjacent streets. The diagonal access way would be covered and reconfigured. In June, Council agreed to consider these proposals subject to design changes addressing public access and a response to the former Gastown rail alignment to the north. The revised design for the marketplace addresses the key concerns previously identified, particularly the reconfiguration of the central accessway to echo the former diagonal rail alignment through the site. The Chinatown Heritage Area Planning Committee, Urban Design Panel and the Vancouver Heritage Commission support the revised marketplace design. Staff feel the overall design maximizes the extent of street- oriented retail around the site, and is consistent with Central Area Plan objectives for downtown retail development. Accordingly, the proposed revisions to the marketplace configuration are supported. Public Views and a New Tower on Parcel E The developer wants to adjust the ODP view corridors to The Lions and the Sun Tower to new locations in Creekside and Andy Livingstone Parks. In June, Council agreed to consider these proposals, subject to alternate view corridors being designated, and minimizing view impacts of the new tower on Parcel E. The developer proposes that 'The Lions' view be redefined by a new view corridor on the waterfront walkway in Creekside Park. Additional views of 'The Lions' would also be defined from the upland public walkway and Science World entry area in Creekside Park. Sun Tower views would also be available from both park areas. Proposed changes to the FCN ODP views are shown on Appendix E. During public review of these proposals, there was either positive or passive support. The Vancouver Heritage Commission supports the proposed changes to the Sun Tower views. Draft design guidelines call for a setback of the Parcel E tower to minimize views impacts. Accordingly, staff support these changes. Increasing Tower Heights Existing zoning permits tower heights ranging from 15 storeys or 43 m (140 ft.) to 34 storeys or 91 m (300 ft.). One 300-foot tower has been built. The developer wants to increase the heights of the remaining towers between 2 and 9 storeys (see Appendix F), and the height of the mid-rise building on Parcel D by one storey. The ODP height maximum of 91 m (300 ft.) is not being changed. In June, Council agreed to further consider these proposals. During the public review, general support was indicated. A higher residential tower on Parcel B will reduce massing and shadowing impacts on its immediate neighbours significantly compared with the currently-approved hotel. About one-half the floorplate previously proposed for the hotel would be relocated to the other residential towers. The increased height of towers on Parcels A and F is counter- balanced by a reduction in building mass on Parcel E. Staff feel the reduction in building scale next to Pender Street is desirable, and are supportive of the adjustments to tower heights. Parking Standards and Requirements In June, Council resolved that currently approved parking standards for International Village not be reaffirmed, but that a range of alternatives including payment-in-lieu be considered for report back as part of the rezoning referral report. Existing zoning requires 1 space/93 m› for office use, 1 space/50 m› for retail and restaurant use, and 1 space/100 m› plus 0.4 spaces for each dwelling unit. Parking for recreational, cultural and institutional uses must meet Parking By-law provisions. Additionally, 350 spaces for BC Place public parking are required. The developer wishes to reduce the International Village parking standards to be more consistent with adjacent downtown areas. Current International Village retail and office standards would be met, but a reduced standard of 1 space/50 m› is proposed for cultural and recreational uses. A further relaxation of 10% for the non-residential parking requirements is proposed to recognize the shared use of these spaces. The residential parking standard would be reduced to 1 space/100 m› plus 0.2 spaces for each dwelling unit. Care must be taken in assessing whether to reduce parking standards as adjacent areas have minimal parking supply. Staff do not support reducing the current residential parking standard. Staff feel that it is important to provide adequate on-site parking to accommodate residents and visitors during busy commercial periods and during events at BC Place and GM Place. Commercial parking requirements should also be maintained, except for grocery stores which can be included within the 1 space/50 m› for retail, and a possible 10% reduction in commercial parking for shared uses. Staff believe that the standards for parking should be maintained, except as specifically recommended for retail and joint use consideration. In June, Council recommended consideration of pay-in-lieu, however, this is not appropriate in this case. Parking can and should be developed on site to meet the demand. The issue here is whether to approve the developer's request for a reduced standard. The residential parking standards and reduced commercial parking recommended by staff reflect the availability of on-site parking and other off-street commercial parking in the area and recognize the overlapping utilization of parking spaces for non-residential uses. These standards also provide adequate on-site parking for residents and their visitors and for non-residential uses during busy commercial periods and during event times at BC Place and GM Place. Abbott Street Traffic Role The developer wants to change Abbott Street between Pender and Pacific Boulevard North, from one-way north bound to a two-way system. In June, Council did not reaffirm the previously approved one-way Abbott/Carrall couplet. Engineering staff are reviewing this issue in the broader context of the overall downtown traffic system, and will report to Council prior to zoning enactment. Staff note that the proposed form of development on the International Village site is not dependent on whether Abbott Street is one or two-way. Comments From Other Reviewing Agencies Urban Design Panel The Panel reviewed this rezoning proposal on several occasions, most recently on August 16, 1995. The Panel strongly supported the application, particularly the improvements made to the marketplace block emphasizing a diagonal pedestrian way responding to the old Gastown rail right-of-way alignment. Chinatown Historic Area Planning Committee (CHAPC) The CHAPC reviewed the application on June 13 and July 11, 1995. General support for the proposed retail and parking changes was expressed. Strong support was also made for changing both Abbott and Carrall Streets (south of Pender) to two-way traffic. See Appendix G for the full text of approved CHAPC resolutions. Social Implications These changes to the approved zoning for International Village will assist in the implementation of a socially diverse neighbourhood in the Downtown Eastside. Off-site payment-in-lieu provisions will assist City objectives to improve affordable housing and usable park space for adjacent neighbourhoods. Environmental Implications International Village will provide opportunities for high-density living close to transit, recreation and work places in the central business district. This will reduce traffic demands with consequent benefits to air quality, energy costs and a reduction in vehicular pollutants. APPLICANT'S COMMENTS In reviewing the Issues Report in June 1995 City Council established a clear policy direction for International Village. This included directing City staff to revise parking standards and to plan ahead for two-way operation of Abbott Street. The rezoning referral report documents the broad support the proposed reconfiguration of International Village has since received from the City's advisory committees and members of the public and community groups, including the above traffic and parking initiatives. However, the referral report and the draft By-law contain staff recommendations that run counter to the above consensus, and threaten to destroy the proposal's fragile financial feasibility. The rationale for this rezoning has always been the need to reshape this development to enable it to proceed as a viable financial undertaking. We can only continue the community building process if it is economically feasible to do so. We recognize that attempting to improve the development economics of the project through rezoning brings a consequential commitment to increased community contributions and development costs. The issues report has already recognized the principle that the total cost of additional community contributions must be negotiated on the basis of the increment in the value of this "renovation" over that of the existing zoning. We have agreed with City staff on an objective assessment of this marginal increment. It is only from this margin that any additional development costs and community contributions can be funded. How this increased contribution is applied towards social housing, day- care, park amenities or additional public parking is for City Council to decide. Having built and paid for a fully equipped 10 acre park which has already been turned over to the City, our efforts have generally been focused on finding the means to implement some social housing in the area in the absence of senior government funding. However, the City staff recommendation to increase the total parking requirement for International Village effectively represents the levy of an additional community contribution. It is based on a vision of servicing parking shortfalls elsewhere in the downtown, rather than on the profile of our own residents' needs. Our rezoning proposes parking standards that are consistent with those that City Council has adopted for the Downtown District. These standards are substantially higher than for the surrounding neighbourhood of which we are an integral part, and we will provide in addition almost half of the total stadium parking requirement. The appropriateness of our proposal for this site is reinforced by having received the support of Chinatown, and by documentation of the under used capacity of the existing parking lots in the surrounding areas. Increasing the provision of parking is not consistent with the City's goal of creating an affordable and liveable downtown. The imposition of such a requirement would seriously jeopardise the viability of International Village and the enormous public benefit that it represents for this area of Vancouver. The continuation of the existing two way traffic flow on Abbott Street from GM Place to Pender Street is also of great importance to us. We do not believe that we can operate properly with the present one way traffic flow through our site, which emphasizes commuter convenience at the expense of living and working in the downtown. We respectfully urge City Council to support the aspirations of the community, the goals of the Central Area Plan, and to remain in the realm of the real world in approving this rezoning, and specifically in approving our parking and traffic flow proposals, and in matching the requirement for community contributions to the ability of the development to pay for them. CONCLUSION Changes proposed to the International Village zoning, form of development and FCN ODP, including payments-in-lieu for social housing and parks, are consistent with City policy, and previous Council direction, and are supported by City staff. Support for these changes has also been expressed by local area commercial and residential groups, heritage and other advisory groups. These improvements will assist in the overall project viability and foster its role in revitalizing an important area of downtown. Staff recommend that Council refer the application to Public Hearing.