SUPPORTS ITEM NO. 3 P&E COMMITTEE AGENDA DECEMBER 14, 1995 POLICY REPORT DEVELOPMENT AND BUILDING Date: November 29, 1995 Dept. File: 95038-PEM TO: Standing Committee on Planning and Environment FROM: Director of Land Use and Development SUBJECT: Rezoning Application at 303 Railway Street (M-2) RECOMMENDATION A. THAT the application by Robert Leshgold (Architect) to rezone 303 Railway Street (Lot 26, Block 2, D.L. 735, Plan 3421) from M-2 to CD-1 to allow artist 'live/work' studios be REFUSED. As an alternative to A, the following is submitted for Council's CONSIDERATION: B. THAT the application by Robert Leshgold (Architect) to rezone 303 Railway Street (Lot 26, Block 2, D.L. 735, Plan 3421) from M-2 to CD-1 to allow artist 'live/work' studios be processed in the usual manner. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A above and submits B as an alternative for Council's CONSIDERATION. COUNCIL POLICY Land Use Directions - North of Hastings Street and Railway Street Industrial Areas On September 15, 1994, Council confirmed the industrial status of these areas and removed their 1990 "let-go" designation. Industrial Lands Strategy On March 14, 1995, Council adopted a policy framework to guide future decisions on the use of industrial land. Among the area-specific policies, the Powell Street industrial area (which includes the North of Hastings Street and Railway Street Industrial Areas) was confirmed as an area to be retained for industrial use. Concerning the rezoning of industrial land, the policy states that if an inquiry/rezoning application is submitted, it will be reported to Council with staff's assessment of its merits according to adopted criteria, resources required to process the application, and a direction for Council consideration. Artist 'Live/Work' Studios On March 28 1995, Council adopted several staff recommendations concerning artist 'live/work' studio policies and regulations. Most notably, these limited artist 'live/work' studios to existing buildings and for rental tenure only. On June 1, 1995, Council confirmed that it does not favour future artist 'live/work' studio developments that exceed the 1.0 floor space ratio permitted for this use in I and M zoning districts. PURPOSE This report seeks Council advice on a recently-submitted rezoning application. On the basis of current policy, staff conclude that the application should be refused. However, given the history of the proposal as a development application that was previously supported, Council may wish to have this rezoning application processed in the usual manner. BACKGROUND Site and Proposed Development The site, zoned M-2, is near CP Rail and Port lands (see map in Appendix A). It is across Gore Avenue from 245- 295 Alexander Street, a site also the subject of a rezoning application (see Appendix B). Buildings on both sites, now vacant, were previously occupied by Versacold Storage. The rezoning application at 303 Railway Street is similar to development application DA217589 submitted on February 21, 1995 and revised on July 20, 1995 in response to staff concern about units facing the eastern interior property line. It proposes the renovation of a four-storey warehouse building to provide 40 rental artist 'live/work' studios. A Housing Agreement would ensure that the units remain rental for the life of the building. The floor space ratio (FSR) of the existing building is 4.46. The proposed FSR would be 3.96, after converting a basement floor to provide 22 parking spaces. The M-2 district schedule has a maximum FSR of 5.0 for outright approval industrial uses, but it limits non-industrial uses, such as artist studios and associated dwelling units, to a maximum FSR of 1.0. Development Application Processing On June 1, 1995, Council's Standing Committee on Planning and Environment considered a report on Development Application DA217589 pursuant to a December 15, 1994 Council resolution that all applications for artist 'live/work' studios be reported to Council for advice. Planning staff supported the application as it would provide affordable rental artist 'live/work' studios within an obsolete industrial building. This was generally consistent with artist 'live/work' studio policies existing at the time of the application and also the revisions adopted by Council March 28, 1995. The significant exception was that the application proposed an FSR of 5.0 whereas M-2 regulations limited it to 1.0 for artist 'live/work' studios. Staff supported the proposed FSR exceeding 1.0 on the condition that the applicant obtain a relaxation for this from the Board of Variance, as was done for a previous, similar development application at 1701 Powell Street (approved in February 1994). After hearing speakers in support of and opposed to the application, the Council Committee approved that staff process the application, in a similar manner to the previous, similar development application at 1701 Powell Street. An appeal to the Board of Variance on June 28, 1995 for the required FSR relaxation was not allowed. A second appeal, on August 23, 1995, for a revised application proposing fewer units, additional parking, and reduced floor area, was also disallowed. The development application was consequently refused. The current rezoning application corresponds to the development application which was revised in July, 1995. DISCUSSION Artist 'live/work' Studio Policies While the application proposes rental artist 'live/work' studios within an existing building, as supported by revised artist 'live/work' studio policies, the proposed FSR exceeds the maximum of 1.0 permitted for non-industrial uses in the M-2 industrial district. This is contrary to Council's June, 1995 confirmation that it does not favour artist 'live/work' studio developments that exceed the permitted 1.0 FSR. Rezoning Policy Policy on the rezoning of industrial land states that if an inquiry/rezoning application is submitted, it will be reported to Council with staff's assessment of its merits according to adopted criteria (see below), resources required to process the application, and a direction for Council consideration. Therefore, before undertaking any of the customary notification or circulation and without undertaking the usual assessment, staff are reporting the application to Council to determine if it should be further processed. Rezoning Criteria The rezoning application does not satisfy any of the circumstances in which Council has stated that it is prepared to consider the rezoning of industrial land: (a) based upon CityPlan or other City-initiated planning process; (b) located in a "let go" area (the Powell St. industrial area which had been a 1990 "let go" area, was confirmed in September, 1994 as an area to keep for industrial use); (c) located in an area designated as Highway-oriented Retail/Industrial and consistent with a range of retail uses (still to be specified); (d) if located within the False Creek Flats and within the context of the City-initiated planning study. Based on these criteria, staff see no basis for further assessing this application, and recommend refusal. Resources Required to Process the Application Should Council instruct staff to process the application in the usual manner, the resources required to do so would be less than normally required, given that the application has been previously reviewed as a development application. Council Consideration Staff recommend that the rezoning application be refused, based on Council policies for industrial lands and for artist 'live/work' studios. However, given the history of the proposal, and staff and Council support for the development application submitted in February, 1995, albeit in a different policy context, Council may wish to consider that the application be processed. Council may conclude that the history of the proposal represents an extenuating circumstance which might justifiably exempt it from the rezoning criteria Council adopted in March, 1995 and the maximum FSR of 1.0 it confirmed in June, 1995 for artist 'live/work' studio developments. If Council decides that this application should be processed, staff would endeavour to report back (whether to refer the application to Public Hearing or to refuse it) at the same time as for the rezoning application at 245-295 Alexander Street. For both applications, staff would further consider the potential impacts of artist 'live/work' studios on surrounding industry. This is something which the applicant of the proposed rezoning at 245-295 Alexander Street is striving to address, in response to concerns raised by staff and surrounding property owners and businesses. CONCLUSION Planning staff recommend, on the basis of existing policies, that the rezoning application for 303 Railway Street be refused. However, given the history of the redevelopment proposal for this site, and the support it had from Planning staff and Council, Council may wish to have this application processed in the usual manner.