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.