POLICY REPORT
URBAN STRUCTURE
Date: October 24, 1995
Dept. File No.: HW
TO: Vancouver City Council
FROM: Director of Community Planning, in consultation with
General Manager of Engineering Services
Manager of Housing Centre
Director of Social Planning
Director of Legal Services
General Manager of Parks & Recreation, and
Deputy Director of Finance
SUBJECT: Arbutus Neighbourhood -
Implementation of Development Cost Levies
RECOMMENDATION
A. THAT Council establish the area shown in Figure 1 as the
Arbutus Neighbourhood Development Cost Levy (DCL) District;
B. THAT the levy proceeds be spent in the following proportions:
(i) 9.7 percent for street improvements; and
(ii) 90.3 percent for daycare.
C. THAT the policies in Appendix A be adopted to guide
administration of DCLs in this District;
D. THAT the 1995 rate for collection of Development Cost Levies
be set at $43.06 per square metre ($4.00 per square foot) for
all uses, except for manufacturing, transportation, and
wholesale uses which will be set at $17.22 per square metre
($1.60 per square foot); and for daycare space which will be
set at $5.49 per square metre ($.51 per square foot); and
E. THAT the Director of Legal Services be instructed to prepare
the necessary by-laws and that the Associate Director of
Community Planning report back with the DCL By-law at the time
of enactment of the C-7 and C-8 Districts Schedule.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of A,
B, C, D and E.
COUNCIL POLICY
On May 16, 1991, Council adopted the Downtown South DCL By-law and
related policies including the policy "that development cost levies
outside the Downtown South be considered as part of area-wide rezonings
based on a community plan," and on April 21, 1994 Council established a
DCL District in the Burrard Slopes neighbourhood.
On June 16, 1992, when considering a report on the Arbutus Neighbourhood
Plan, Council approved a general DCL rate of $43.06 per square metre
($4.00 per square foot) for the Arbutus Neighbourhood to be implemented
when the zoning for the small sites was approved.
At a Public Hearing on October 20, 1994, Council approved-in-principle
the C-7 and C-8 Districts Schedule for the small sites in the Arbutus
Neighbourhood with the understanding that area-wide enactment would be
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delayed until the Province approved enabling legislation allowing
implementation of the Arbutus DCL By-law.
SUMMARY
In 1992, Council adopted the Arbutus Neighbourhood Policy Plan (ANPP)
which called for all new developments to contribute $43.06/m› ($4.00/sq.
ft.) towards public benefits. The larger sites to be rezoned CD-1, were
to make these contributions through Community Amenity Contributions
(CACs); and the smaller ones, for which a new zoning schedule was to be
devised, were to contribute through Development Cost Levies (DCLs).
Council also directed staff to prepare a strategy for allocating the
proceeds of DCL and CAC funds.
The proposed DCL boundary is shown in Figure 1. The Bentall site
(IGA/Liquor Store - future CD-1), originally proposed to be within the
CAC area, is now recommended for inclusion in the DCL area to allow for
the possible location of a daycare on the site using DCL funds.
With respect to rates, Council endorsed a general DCL rate of $43.06/m›
($4.00/sq. ft.) in 1992. Staff are recommending daycare and industrial
uses provide reduced rates of $5.49/m› ($.51/sq. ft.) and $17.22/m›
($1.60/sq. ft.) respectively, which is consistent with reduced rates for
these uses set in Burrard Slopes.
Of the four uses for DCLs under the Vancouver Charter, (replacement
housing, park land acquisition and development, daycare and engineering
works), staff are recommending DCLs be allocated on a percentage basis--
90.3 percent to daycare and 9.7 percent to street improvements. Council
would still have the flexibility to re-allocate DCLs in the future if
new facilities became fundable or funding priorities change. In total,
the estimated costs of the required daycare and street improvements
($3,614,000) exceed the estimated $3,000,000, that will be collected
through DCLs. Therefore under the Charter authority, Council can enact
a DCL By-law.
Figure 1. Lands Subject to CACs and Proposed DCL Boundary
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PURPOSE
The purpose of this report is to:
- establish the boundaries for the DCL district;
- adopt administrative policies for DCLs;
- set detailed DCL rates;
- establish how the levy proceeds should be allocated; and
- request the necessary by-laws be brought forward for
enactment.
Upon Council's decision on these matters, the Director of Legal Services
will prepare the DCL By-law for Council's approval at the time that
Council enacts the new C-7 and C-8 Districts Schedule for the area.
Also included for Council's information is a summary of the evolving
overall Arbutus Neighbourhood public benefits strategy, including the
role of CACs, which Council has already approved through the rezonings
of the larger CD-1 sites in the area.
BACKGROUND
In 1992, Council adopted the Arbutus Neighbourhood Policy Plan (ANPP)
which called for all new developments to contribute the equivalent of
$43.06/m› ($4.00/sq. ft.) towards public benefits including parks,
social housing, and daycare. The larger sites were to make these
contributions through CACs upon rezoning to CD-1; and the smaller ones,
for which a new zoning schedule was to be devised, were to contribute
through DCLs.
In October of 1994, Council approved the C-7 and C-8 Districts Schedule,
but enactment was delayed until the Province clarified the City's
authority with respect to DCL boundaries. The Province has now enacted
enabling legislation confirming the DCL boundaries and Council can now
adopt the DCL By-law.
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DISCUSSION
1. DCL By-law Boundaries
The proposed DCL boundary is shown in Figure 1. The boundary matches
that proposed for the new C-7 and C-8 Districts Schedule with the
exception of the Bentall site (to be future CD-1).
(a) Bentall Site
Originally the Plan proposed that the Bentall site (current IGA/liquor
store - future CD-1 site), be subject to CACs rather than DCLs. It is
now recommended that the Bentall site be included within the DCL
boundary instead. The site is considered to be one possible location
for a daycare. Since DCLs must be spent within the DCL boundary, the
Bentall site must be included in the DCL area to make it possible to
locate a daycare facility on the site using DCL funds. The total
contribution amount from the Bentall site would not change, but would be
made in the form of a DCL rather than a CAC.
2. DCL Rates and Total DCLs Collectable
In 1992, Council approved a general DCL rate of $43.06/m› ($4.00/sq.
ft.) for the Arbutus Neighbourhood. This will be the rate for all uses
other than industrial and daycare. Staff request Council confirm a
reduced rate for daycare uses of $5.49/m› ($.51/sq. ft.), consistent
with the daycare rate set for the Downtown South and Burrard Slopes, and
a reduced rate of $17.22/m› ($1.60/sq. ft.) for industrial uses
(manufacturing, transportation and wholesale). The industrial rate is
set in proportion to the reduced industrial rate for Burrard Slopes and
reflects lower public benefit demands due to fewer employees per square
foot for industrial businesses. All DCL rates in the City are subject
to an annual review and a rate adjustment if warranted. Assuming future
development at an average 2.0 FSR, and minimal industrial development,
approximately $3,000,000 is collectable at build-out of all the
developable sites in the DCL area.
3. Public Benefit Demands and Costs for DCL Area
Under the Vancouver Charter, DCLs can be spent on replacement housing,
daycare, engineering works such as road, sidewalk and sewer
construction, park land acquisition, and now also park development. (An
amendment to the Charter was approved in July 1995 adding limited park
development expenditures such as landscaping and construction of
washroom facilities to the list of fundable items.) DCLs still cannot
be allocated to other needs, such as community centre facilities,
although it is possible that this Charter authority will be provided in
the future.
(a) Replacement Housing
There are approximately 10 units of existing housing in the area that
could be lost to redevelopment. Given the 50 units of social housing
that will be provided on the Molson site as a CAC, staff believe there
is no need to dedicate DCL funds for replacement housing.
(b) Daycare
An estimated 1,100 new residents will eventually live in the DCL area.
The resulting estimated daycare and school aged care demand is:
- Daycare (ages 0 to 5) - 33 spaces (demand from DCL area only)
- School aged care (ages 6 to 12) - 19 spaces (DCL area only)
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To achieve daycare in this area, funds are needed to acquire land (or
air parcels), and to construct the facility.
Estimated land acquisition/development costs:
Land $2,090,000
Building and equipment $1,174,000
Total $3,264,000
More detailed need and cost estimates for daycare are contained in
Appendix B.
(c) Engineering Works - Street Improvements
The ANPP calls for special street treatment of Arbutus Street as the
future shopping and pedestrian focus, and 11th Avenue (east of Arbutus
Street to Maple Street) as an extension of the greenway system. The
extent of these improvements will be beyond the level normally charged
directly to developers. Staff estimate the following total costs:
11th Avenue surface removal $ 50,000
11th Avenue reconstruction $125,000
Arbutus Street reconstruction $175,000
Total $350,000
(d) Park
The number of people projected to reside on the C-7 and C-8 sites (DCL
area) would generate a need for approximately 1.2 ha (3.0 ac.) of park
land based on the Park board standard of 2.75 acres per 1,000 people.
In the portion of the area subject to CACs, 1.3 ha (3.1 ac.) of park has
been provided through private dedications, converting the City works
yard to park, road closures and allocation of CACs from the CD-1
rezonings to park development. Overall this 1.3 ha (3.1 ac.) represents
roughly half the Park Board park standard.
Given this level of park provision, and the outstanding need for
daycare, staff recommend that the major priority for DCLs be daycare,
with street improvements as a second priority. The total estimated cost
of the daycare and street improvement demands from the DCL area is
$3,614,000.
4. Allocation of DCL Proceeds
(a) Current Allocations
Council must decide on the proportions for spending DCL proceeds before
the DCL By-law can be enacted. Council's decision must be expressed as
a percentage of the anticipated $3,000,000 in proceeds and must be
allocated to each type of levy project (daycare and street
improvements). Council may choose any percentages totalling 100
percent.
Staff recommend that based on the current demands, Council allocate the
proceeds on a pro-rated basis, proportional to the costs of the capital
projects. This would result in the following allocations:
Funds Allocated % Allocation
Daycare $2,709,000 90.3%
Street Improvements $ 291,000 9.7%
Total $3,000,000 100.0%
Since population growth will not justify daycare construction until
sometime after the year 2000, staff believe that initial DCL recoveries
should be used in the near term for street improvements on 11th Avenue
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and Arbutus Street. These improvements will address the more immediate
need to create "public" community amenities and help create a character
and identity for the area.
It should be noted that only an estimated 83 percent of the full costs
of daycare and street improvements can be covered with the anticipated
DCLs to be collected. The shortfalls would need to be met through other
sources such as future capital plans and provincial funding for daycare.
Council should also be aware that $3,000,000 is staff's projection of
what might reasonably be generated by DCLs over the next 25 years or so.
The total amount eventually collected could be higher or lower,
depending on the extent of redevelopment.
(b) Future Flexibility to Re-allocate Proceeds
Council legally retains the flexibility to change the allocations in the
future, should the need arise, provided the funds continue to be spent
on projects that are required as a result of development in the DCL
area. For example, the need to re-allocate could occur if alternate
funding for daycare became available from the Province, or if the
daycare cost was reduced through building the daycare as part of a new
private development. It is also possible that the Charter authority
could be expanded to allow spending DCLs on other community facilities
in the future. In this case, the Council of the day may wish to re-
allocate the funds to one of the newly fundable facilities, or integrate
the daycare with one of these new uses. Since the population to support
daycare construction will not likely be in place for another seven to
ten years, there will be ample time for future reallocation to occur in
the event of any of these possibilities.
5. DCL By-law and Administration Policies
Under the Vancouver Charter, if the total demand from the DCL area
(estimated at $3,614,000 without park demand) is greater than the DCLs
collectable at build-out (estimated at $3,000,000), then the City has
the authority to enact a DCL By-law. This has been established in the
discussion above. Therefore, staff recommend that Council establish the
DCL district as shown in Figure 1. Staff also recommend adoption of the
administrative policies appearing in Appendix A. The Director of Legal
Services will then draft the DCL By-law according to Council's
directions, and staff will report back with the By-law for Council
adoption at the time of zoning enactment.
6. Summary of Public Benefits Strategy in Arbutus Neighbourhood
Once Council has endorsed the recommendations in this report, and the
DCL By-law has been adopted, a large part of the Public Benefits
Strategy will be complete. In the remainder of the area (CD-1 sites),
considerable progress has also been made in negotiating park
dedications, designing the system of park and greenways, and collecting
CACs from the larger CD-1 sites to develop park and greenways as a first
priority. A summary of the strategy appears in Appendix C.
Negotiations surrounding the Bastion-Intrawest site and land exchange
for the City works yard have been slower than anticipated, and this
uncertainty has prompted delays in reporting on the West 11th Avenue
Greenway and park development. Staff will report back to update Council
on the status of CACs when the Bastion-Intrawest site negotiations are
complete.
Following resolution of these issues, if any CACs are left after all
associated park and greenway development costs are met, the other
community needs (e.g., Kitsilano Community Centre) can be considered.
The other outstanding unmet need generated by the CD-1 sites would be
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for a daycare, which will be included for consideration in the 1997-1999
and future Capital Plans.
7. Public Input
With respect to the public process, staff held a public open house on
September 20, 1995 and have also discussed the contents of this report
with representatives of the landowners, residents, and Kitsilano
Community Centre Association. Comments have generally been supportive.
However, there were concerns expressed by the representatives of the
Kitsilano Community Centre Association on the lack of allocation for the
expansion of the community centre. They would like to see the DCL
boundaries amended to include Connaught Park and the Kitsilano Community
Centre so that DCL funds could be spent on the Centre either to locate
daycare there or, if the Charter authority was amended, to allow funding
of a community centre expansion. The Kitsilano Arbutus Residents
Association (KARA) supports the use of the initial DCL proceeds to fund
street improvements, but also has concerns with respect to the lack of
funding for community centre expansion.
Staff cannot recommend an expanded boundary at this time because the DCL
boundaries recently confirmed by the Province include only those lands
within the boundary of the Arbutus Neighbourhood Policy Plan. The
Policy Plan boundary specifically excludes Connaught Park and the
Kitsilano Community Centre. However, it is possible that Council could
review the boundary and revise it in the future, and future Charter
amendments could permit funding of a community centre expansion.
SOCIAL IMPLICATIONS
DCL funds will be available to provide a daycare and CACs will be
available to develop parks, greenways and outdoor play areas in the
Arbutus Neighbourhood. All these actions will help achieve social
objectives contained in Council's Children's Policy and the Statement of
Children's Entitlements.
PERSONNEL IMPLICATIONS
There will be no additional staffing requirements.
CONCLUSION
The implementation of DCLs as outlined and recommended will play an
important role in providing public benefits to meet some of the demands
created by new development in the Arbutus Neighbourhood.
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