POLICY REPORT
                                URBAN STRUCTURE

                                                Date: January 22, 1996
                                                Dept. File No.  RGL

   TO:       Vancouver City Council

   FROM:     Directors  of  Land  Use  and  Development  and  Central  Area
             Planning, in consultation with the Manager of Real  Estate and
             the Director of Legal Services

   SUBJECT:  Heritage Density Transfers in the Central Area


   RECOMMENDATIONS

        A.   THAT the Director of Land Use and Development be instructed to
             make application  to amend the  RM-5, RM-5A, RM-5B,  C-3A, C-5
             and C-6  Zoning District Schedules, and  the Downtown Official
             Development Plan,  to permit  the Development Permit  Board to
             approve  limited  transfers  of   heritage  floor  space  onto
             development sites  in these districts, from  heritage sites in
             these districts, as set out in Appendix A;

             FURTHER THAT the application be referred to a Public Hearing;

             AND FURTHER THAT the Director of Legal Services  be instructed
             to prepare the necessary by-laws for the Public Hearing.

        B.   THAT  consequential  amendments  to  the Transfer  of  Density
             Policy and Procedure, as noted in Appendix D, be presented for
             adoption,  in principle,  at  the Public  Hearing, to  exclude
             certain sites  from qualifying as receiver  sites for heritage
             density transfers,  and to include  reference to consideration
             of impacts related to additional density on receiver sites.

        C.   THAT subject  to approval of A and B, staff report back on the
             success of the amended policies in March 1998.


   GENERAL MANAGER'S COMMENTS

        The General Manager of Community Services RECOMMENDS approval of A,
        B and C.
   COUNCIL POLICY

   Council's  "Transfer of  Density  Policy and  Procedure" (TDP)  provides
   opportunities for the transfer of density from one site to another where
   the transfer will achieve at least one of a number of public objectives,
   including heritage preservation.

   Council's "Heritage Policies and Guidelines" state that buildings listed
   on the Vancouver Heritage Register have  heritage significance, and that
   the City's long-term goal is to protect through voluntary designation as
   many  resources on  the Register  as possible.   A number  of incentives
   exist to aid heritage  preservation, including heritage density bonusing
   and the Transfer of Density Policy.


   SUMMARY

   Note:     A  glossary  of  terms used  in  this  report  is attached  as
             Appendix B.

   This  report  recommends  that  Council's  transfer  of  density  policy
   (amended in 1993 and  again in 1994) to encourage  retention of heritage
   buildings in the Central Area, be  again amended as was contemplated  at
   that  time.   The  change would  require  amendments to  various  zoning
   district  regulations, and  the Downtown  Official Development  Plan, to
   give the Development Permit Board the authority to approve a maximum ten
   percent  extra density on  a receiver development  site in parts  of the
   Central Area (shown on the map attached as Appendix C), where this extra
   density is derived from one  or more heritage donor site(s) in  the same
   parts of the Central Area.

   The report also recommends amending Council's transfer of density policy
   so that:

   (a)  residual  or  bonus heritage  density from  a  rezoned site  with a
        Vancouver  Heritage Register  building  in the  identified area  be
        eligible  for consideration  by  the Development  Permit Board  for
        transferring  onto  a  receiver   site(s)  within  the  same  area,
        consistent with Section 595A of the Vancouver Charter; and

   (b)  the following are excluded as potential receiver sites:

        i)   a site already receiving a hotel density bonus;
        ii)  a site already receiving a heritage density bonus;
        iii) a site containing a SRO hotel, unless the units are secured or
             replaced; and
        iv)  a site zoned CD-1, unless a provision  is included in the CD-1
             by-law.PURPOSE

   This report  proposes  by-law and  policy  amendments to  authorize  the
   Development Permit Board to approve density to be transferred from sites
   with  residual  heritage  density  in the  Central  Area  onto  receiver
   development sites in the Central Area.

   BACKGROUND

   On September 2, 1993, Council amended  the policy to permit the transfer
   of density from  any heritage "donor" site in most  parts of the Central
   Area to any "receiver" development  site(s) in any of the same  parts of
   the  Central Area, regardless  of the zoning  on the donor  and receiver
   sites.   Despite this  potential for  heritage density  transfers across
   zoning boundaries, both the  donor and receiver sites must be rezoned to
   accomplish the density transfers, although this does not have to be done
   simultaneously.    The  rezoning of  the  heritage  site,  through which
   residual and/or heritage bonus density is conferred for future transfer,
   is an incentive  to achieve  the rehabilitation and  designation of  the
   building.    Residual/bonus  density  is  held  (through  a  development
   limitation covenant)  on  the donor  heritage  site until  approved  for
   transfer elsewhere.

   At the same time, Council requested that staff report back on:

   (a)  new legal mechanisms to give greater certainty to deferred residual
        heritage density on heritage donor sites;

   (b)  amendments  to the DODP and the zoning schedules within the Central
        Area,  as shown  in Appendix  C, to  permit increases  in FSR  to a
        maximum  amount  for  a site  or  sites  receiving  density from  a
        heritage  donor site,  without requiring  rezoning of  the receiver
        site(s).  In drafting this policy, consideration should be given to
        the cumulative amount of residual density which could ultimately be
        held  on heritage donor  sites in the  Central Area, the  method of
        calculation  of transferable  density  and the  establishment of  a
        review period to determine the success of the new policy;

   (c)  a review  of  the issue  of density  in Gastown  and Chinatown  for

        potential inclusion in the new transfer of density policy; and

   (d)  the success of the amended policies by March 1995.

   On  December  8, 1994,  Council again  amended  the Transfer  of Density
   Policy  to allow density to be  transferred out of HA-1, HA-1A Districts
   (Chinatown).In  July  1995, the  Province  enacted an  amendment  to the
   Vancouver  Charter (Section 595A, attached  as Appendix E)  to allow for
   the establishment of a  transfer of density system, as contained in this
   report.

   DISCUSSION

   The Problem  

   Council's current  "Transfer of Density Policy and  Procedure" calls for
   the   rezoning  of  both  the  heritage  donor  site  and  the  receiver
   development site(s).   The heritage donor site must  be rezoned in order
   to  establish the amount of residual/bonus heritage density that may not
   be  used on the  site in the future,  but may be  transferred away.  The
   receiver site(s) must be  rezoned to permit increases in  density beyond
   that permitted under existing zoning.

   However, developers of potential receiver sites are reluctant to utilize
   residual/bonus  heritage density because of  the time, cost  and risk of
   rezoning their  own sites.   If  there is  little interest  in acquiring
   residual/bonus heritage  density, the  market value  of this  density is
   diminished and few owners of heritage sites will be able to benefit from
   the policy.  More heritage buildings may well be lost.

   The Objective

   The objective  of  the proposed  amendments  is to  make it  easier  for
   developers of potential receiver sites to utilize density from  heritage
   donor sites  by  not  requiring receiver  sites  to be  rezoned  if  the
   requested resultant site  density is no more than ten percent beyond the
   current zoning maximum.

   A summary of the envisaged process for receiver sites is as follows:

   1.   The  developer   of  a   potential  receiver  site   makes  initial
        arrangements to purchase density from a heritage  site with surplus
        density already conferred through  CD-1 zoning or other development
        limitation mechanisms,  such as  a covenant, established  through a
        Heritage Revitalization Agreement.

   2.   The developer arranges a  pre-design conference with Planning staff
        to determine the level of support  for increased density (up to ten
        percent)  on  the proposed  receiver  site and  any  special design
   considerations that might apply.3. A    development    application    is
                                      submitted (a  preliminary development
                                      application  may be  recommended), in
                                      which the density  transfer is  based
                                      on  a square  metre for  square metre
                                      basis.

   4.   After  processing,  the Development  Permit  Board  decides on  the
        application.

   5.   Development permit  issuance  is subject  to  an amendment  to  the
        covenant  affecting  the  donor  site  to  reduce  the  amount   of
        transferable density by the  amount being utilized on the  receiver
        site.

   The Issues

   A.   Legislation

   Section 595A of  the Vancouver  Charter enables Council  to establish  a
   facilitated  transfer of density system  for heritage preservation.  The
   legislation allows density  on a receiver site to be  increased by up to
   ten  percent of maximum density permitted under current zoning, when the
   density  being transferred  is part  of a  compensation package  for the
   heritage designation of the donor site.

   To take advantage of this enabling legislation, amendments are needed to
   the  Downtown  District Official  Development  Plan  and the  applicable
   zoning  district  schedules  in  the  Central  Area.    The  recommended
   amendments are set out in Appendix A.

   B.   The Cumulative Amount of Heritage Density 

   The  total amount  of  transferable heritage  density  available in  the
   marketplace  will impact  its value  and  the interest  there is  in the
   development  community  to  acquire it.    Staff  are recommending  that
   transferring density from heritage sites be considered as  one incentive
   for preservation, and  that each rezoning application for  heritage site
   be  considered on its own merits.   Care taken in considering the source
   of available density should keep it under control and sustain its value.

   Presently  there exist in the  affected zoning districts  in the Central
   Area  (including Central  Broadway and  South Granville) 265  sites with
   buildings  listed  on the  Vancouver Heritage  Register.   Of  these, 54
   contain Category "A" buildings,  146 contain Category "B"  buildings and
   65 contain Category "C" buildings.There is no way to predict the  annual
   projected take-up of  the surplus density on receiver  development sites
   that would occur if rezoning is no longer required.  To date, there have
   been  two   heritage  rezonings  and  residual/bonus   density  held  in
   development limitation covenants.  The B.C. Hydro Building had 13 935 m›
   (150,000 sq. ft.) established in 1994, of which   1 927.6 m› (20,750 sq.
   ft.)  had been transferred to a site at Thurlow and Robson Streets.  The
   former Vancouver  Public Library  has 18  115 m›  (195,000  sq. ft.)  of
   density available for transfer.   The recent rezoning of  1202-1292 West
   Georgia  established 1  467.2  m› (15,793  sq.  ft.) of  heritage  bonus
   density related to the rehabilitation of the historic Abbott  House.  In
   1995, Council considered a  proposal for the  Stanley Theatre to have  4
   087.6 m› (44,000  sq. ft.) available for transfer, but  this has not yet
   been conferred through the rezoning process.  Combined, these four sites
   represent 35 677.2  m› (384,039 sq. ft.) of density,  either approved or
   pending, for future transfer.

   The  rate of take-up under a revised  policy will depend on other policy
   changes,  market conditions,  and  the supply  of transferable  density.
   However, if the requirement to rezone receiver sites is removed, it will
   be less costly  to transfer  density, and  therefore should  be of  more
   interest to developers.

   C.   How Much Density Can a Receiver Site Absorb?

   All  affected  zoning districts  in the  Central  Area were  examined to
   determine the potential impact  of permitting heritage density transfers
   onto receiver sites.  This work was done to establish the maximum amount
   of  extra density that might be approved by the Development Permit Board
   without unduly impacting neighbouring sites.

   Staff conclude, and recommend, that all of the affected zoning districts
   in the  Central Area should  be amended to allow  the Development Permit
   Board to permit a ten percent increase in the  maximum allowable density
   to accommodate  the transfer of density from heritage donor sites.  This
   amount is proposed because:

   1.   the  impacts  on  livability,  shadowing  and  other  urban  design

        concerns  resulting  from a  ten  percent  increase are  manageable
        through the  development permit process, and  applications would be
        evaluated  against existing  area development  guidelines regarding
        livability and neighbourhood character;

   2.   experience with the zoning in the downtown, which now permits a ten
        percent density increase on  heritage sites, has proven to  pose no
   major problems; and3.    a   ten   percent    increase   will    provide
                            sufficient  density   to  encourage  transfers,
                            particularly to larger  development sites  with
                            45.8 m (150 ft.) of frontage or more.

   For  example, a  ten percent increase  in density  for a  typical 45.8 m
   (150 ft.)  by  36.6 m  (120  ft.)  site, would  probably  result in  the
   following changes:

   i)   one additional storey in an office building in the central business
        district (two or three storeys for larger sites); or

   ii)  two  or three additional storeys in a residential tower in Downtown
        South; or

   iii) one additional storey in a residential tower in the West End; or

   (iv) one  additional storey  in a  residential tower  or a portion  of a
        commercial storey on Central Broadway; or

   v)   small increases  to  the  area  of each  floor  instead  of  or  in
        combination with increasing the height.

   Applications for  heritage density transfers may  be refused (applicants
   would  be advised  not to  apply) if  the resulting  development creates
   unacceptable  shadowing of  parks  or  shopping-oriented  sidewalks,  or
   results in massing and  forms that do not reflect  desired neighbourhood
   character.   However, the risk of  refusal would be small,  as the major
   considerations will  have been  discussed at the  pre-design conference.
   Should  staff feel  the  site cannot  support  a density  transfer,  the
   prospective applicant will  be well  aware of that  position, and  would
   likely  abandon  the   proposal  before   finalizing  density   purchase
   arrangements.

   In some areas within the downtown, hotels are eligible for a 15% density
   bonus.  Staff  recommend that sites receiving a density  bonus for hotel
   should not be eligible for  a heritage density transfer, and that  sites
   with  heritage density  bonuses  should not  receive additional  density
   transferred  from  other  heritage  sites.     Such  doubling  of  bonus
   opportunities could  result in unwieldy  increases in  building bulk  or
   use, resulting in negative impacts on neighbouring properties.

   Sites  with a SROs (Single Room  Occupancy hotel) would be ineligible to
   receive heritage  density  unless the  existing  units are  retained  or
   relocated  elsewhere in the Central Area.  Such transfer would otherwise
   precipitate the loss of this stock of accommodation.In areas where there
   are  advisory  groups (e.g.  the  Downtown  South Redevelopment  Impacts
   Committee) staff can involve them in evaluating development applications
   for density increases.

   Certain sites may  be able to  accommodate additional density  increases
   beyond ten  percent, in  which case,  the proposal  would be  dealt with
   through a rezoning.

   D.   Development Cost Levies

   The  Vancouver  Charter allows  Council to  establish, by  by-law, areas
   where  new development is subject  to development cost  levies (DCLs) to
   pay for capital projects in that area.  At present, the area of existing

   buildings is excluded  from DCLs, but  bonus density is  not.  There  is
   concern  about the transferable bonus  density being subject  to DCLs as
   this is accounted  for by the developer  in requesting a  heritage bonus
   and increases  the size  of the  bonus accordingly.   Staff  continue to
   investigate mechanisms  to resolve  this dilemma,  such as,  through the
   Heritage Revitalization Agreement.

   E.   Monitoring

   Transferable  heritage  density would  be bought  and  sold on  the open
   market.   Should numerous  heritage site owners wish  to sell density by
   taking advantage  of the transfer of density  policy but interest by the
   development  industry in  acquiring the  density remains  limited, there
   could become a  surplus of residual heritage density.   If so, the value
   of this density would be discounted due to competition.

   To  avoid value  discounting and  to ensure  that owners  of significant
   heritage  buildings will be encouraged to pursue the policy, staff will,
   when advising Council  of proposals  for rezoning of  heritage sites  to
   create  and confer  transferable  density, consider  the  merits of  the
   application on  a case-by-case basis.   Staff  will also comment  on the
   state of the marketplace in terms of existing  transferable density.  If
   it  appears that the market  is becoming saturated,  staff may recommend
   that Council not support particular rezoning applications.

   There are different  land values  in the various  affected zones,  which
   impacts  the value  of the  density transfer.   For  practical purposes,
   staff feel  that it  is best  to deal  with density  on an equal  basis.
   While certain inequities and windfall profits may result in allowing the
   density from donor sites to  be equal in buildable area when  applied to
   receiver  sites where  land values  are higher  or lower,  it  may, upon
   further reflection,  be preferable for the  market to take care  of this
   issue rather than for staff to analyze proposals  based on relative land
   values.   Further,  staff support  that the  use of  the density  on the
   receiver  site not be aconsideration so that developers have the maximum
   flexibility in utilizing this incentive.  Staff will monitor the flow of
   density  with  the  new policy  amendments  and  advise  Council of  any
   significant concerns raised by this density valuation approach.

   F.   Gastown and Chinatown

   In 1994, Council approved  the rezoning of Chinatown which  included the
   ability  to  transfer  density  from designated  sites  with  VHR-listed
   buildings.   These 24 buildings have a total potential transferable area
   of 19 800 m› (214,000 sq. ft.). The TDP was amended to permit density to
   go outside  of, but not into,  Chinatown.    At present, Gastown  has no
   FSR, so technically  there is no density  to transfer.   Discussions are
   underway about new zoning for  Gastown, as part of the Gastown  Land Use
   Plan process, including the issues of FSR and density.

   CONCLUSIONS

   Staff recommend  that Council amends  the Zoning and  Development By-law
   and  the Downtown ODP to eliminate the rezoning requirement for receiver
   development sites in the Central Area where the transfer of density from
   heritage sites in the Central Area  is proposed.  It is recommended that
   the Development Permit Board  be empowered to permit an  FSR increase of
   up to ten percent over the maximum otherwise permitted on receiver sites
   within most zones in the Central Area.

                                     * * *
                                                                APPENDIX A 
                                                                Page 1 of 2

                               By-law Amendments


   1.   Downtown District Official Development Plan

        Amend Section 3, Density, by adding a new subsection 10:

             "Notwithstanding  subsections  1,  3  and  4, the  Development
             Permit Board may permit  an increase in floor space  ratio for
             any use where the increase results from a transfer of heritage
             floor  space  to  a maximum  of  ten  percent  over the  total
             permitted floor  space ratio, except that  this increase shall
             not apply to  hotels where  the floor space  has already  been
             increased pursuant to subsection  2.  For the purpose  of this
             subsection,  heritage floor space means  floor space on a site
             where the site or a building  or a structure is designated  by
             the  Heritage   By-law  and,  according   to  the  development
             limitation  mechanism  regulating  land   for  that  site,  is
             available  to be  transferred to  another site and  is located
             within areas shown  as transfer of density  areas for heritage
             preservation illustrated in the Transfer of Density Policy and
             Procedure  adopted by  Council and  in effect  at the  time of
             application for relaxation under this section."

   2.   RM-5, RM-5A and RM-5B

        Add a new section 4.7.7:

             "The Development Permit Board may  permit an increase in floor
             space  ratio  where the  increase results  from a  transfer of
             heritage  floor space  to a  maximum of  ten percent  over the
             total permitted  floor space ratio, except  that this increase
             shall not apply to  any development where the floor  space has
             already  been increased  resulting from  the restoration  of a
             heritage building pursuant to section 4.7.6.   For the purpose
             of this section, heritage  floor space means floor space  on a
             site where the site or a building or a structure is designated
             by  the  Heritage By-law  and,  according  to the  development
             limitation  mechanism  regulating  land   for  that  site,  is
             available to  be transferred to  another site  and is  located
             within areas shown  as transfer of density areas  for heritage
             preservation illustrated in the Transfer of Density Policy and
             Procedure  adopted by  Council and  in effect  at the  time of
             application for relaxation under this section."    APPENDIX A 
                                                                Page 2 of 2



   3.   C-3A

        Add a new section 4.7.5

             "The Development Permit Board may,  for sites located west  of
             Main Street, north of  16th Avenue and east of  Burrard Street
             permit  an increase  in floor  space ratio where  the increase
             results from a transfer  of heritage floor space to  a maximum
             of ten percent  over the  total permitted  floor space  ratio.
             For the  purpose of this  section, heritage floor  space means
             floor  space  on a  site where  the site  or  a building  or a
             structure is designated by  the Heritage By-law and, according
             to  the development  limitation mechanism regulating  land for
             that  site, is available to be transferred to another site and
             is located within areas shown as transfer of density areas for
             heritage  preservation illustrated in  the Transfer of Density
             Policy and Procedure adopted  by Council and in effect  at the
             time of application for relaxation under this section."

   4.   C-5 and C-6

        Add a new section 4.7.5:

             "The Development Permit Board may  permit an increase in floor
             space ratio  where  the increase  results from  a transfer  of
             heritage  floor space  to a  maximum of  ten percent  over the
             total permitted  floor space ratio, except  that this increase
             shall  not apply to hotels  where the floor  space has already
             been increased pursuant to  section 4.7.1.2.  For  the purpose
             of this section, heritage  floor space means floor space  on a
             site where the site or a building or a structure is designated
             by  the  Heritage By-law  and,  according  to the  development
             limitation  mechanism  regulating  land   for  that  site,  is
             available  to be transferred  to another  site and  is located
             within areas  shown as transfer of density  areas for heritage
             preservation illustrated in the Transfer of Density Policy and
             Procedure  adopted by  Council and  in effect  at the  time of
             application for relaxation under this section."     APPENDIX B
                                                                Page 1 of 2

                               Glossary of Terms

   Heritage Building: a building having heritage significance and listed on
   the  Council-adopted  Vancouver  Heritage  Register  under  one  of  the
   following:

        Category "A" - building of primary heritage significance;
        Category "B" - building of individual heritage importance; or
        Category "C" - building of  heritage character.

   Heritage Site:   a site containing a heritage building.

   Designated Heritage Building:   a building  designated by Council  under
   the  Heritage  By-law  prohibiting   alteration  or  demolition  without
   Council's prior approval.

   Density:  allowable  floor space ratio (floor  area in relation to  site
   area).

   Development Limitation  Covenant/Mechanism:   a  legal  agreement  which
   identifies the amount of  density which is attributed to the donor site,
   but which cannot be built on the site; in essence, the amount of density
   available for transfer.

   Transfer  of Density Policy:   a policy of  Council to consider rezoning
   applications  proposing  to transfer  density from one  site to  another
   site  or sites  when such  transfers  achieve certain  prescribed public
   objectives.

   Heritage  Density  Bonus:    a  density  bonus  given  in  exchange  for
   preserving a heritage building.

   Heritage Density Transfer:  usable density  from a heritage site that is
   transferred to another site.

   Residual  Heritage Density:  allowable density on a site, over and above
   the density of the existing heritage building, some of which may be used
   on that site or may, all or in part, be transferred to another site (may
   include a heritage density bonus).

   Heritage Revitalization Agreement (HRA):   as provided in the  Vancouver
   Charter, Section 592, where Council and the owner of a heritage property
   may  agree  to a  wide range  of  resources, including  density increase
   (having held a Public Hearing on the matter).

   Deferred Residual Heritage Density:   residual heritage density  that is
   held  on a  heritage site  through the use  of a  development limitation
   covenant.
                                                                 APPENDIX B
                                                                Page 2 of 2





   Heritage Donor Site:  a site  with residual heritage density that may be
   transferred to a receiver development site or sites.

   Receiver Development (or Receiver) Site:  a site where residual heritage
   density from a heritage donor site is used.

   SRO  (Single Room  Occupancy) Hotel:   generally  consists of  one room,
   rented out on  a weekly or monthly basis,  sometimes  containing cooking
   facilities but usually no private bathroom.                   APPENDIX C


   Transfer    of Density  Areas for  Heritage  Preservation -  approved by
   Council December 1994

                                                                 APPENDIX D
                                                                Page 1 of 4
   Transfer of Density                            
   Policy and Procedure
                                   D R A F T

   Adopted by City Council January 25, 1983
     Amended September 11, 1984, July 7, 1987,
     July 30, 1991 and September 2, 1993 and
     December 8, 1994 


     Rezoning applications which  involve the  transfer of  density from  one
   site to another site  will be considered, provided that such  a transfer
   will assist in achieving one or more of the following public objectives:

   (1)  To preserve  heritage buildings  or site,  listed on  the Vancouver
        Heritage  Register,  particularly  where it  is  demonstrated  that
        residual  and/or   bonus  density  required   for  the   buildings'
        rehabilitation cannot be used on the heritage site;

   (2)  To create desirable public open space or park land;

   (3)  To facilitate development in areas with mixed use zoning;

   (4)  To achieve and improved urban design;

   (5)  To  help  implement  Council-approved  view  protection  policy  in
        Downtown South;

   (6)  To help protect  existing Single Room  Occupancy Stock in  Downtown
        South;
        and

   provided further, that the following limitations are respected:

   (a)  Except for  heritage sites as  defined in  (b), the  sites are  not
        separated by a zoning  boundary or use, density or  height district
        boundary in an Official Development Plan, unless the sites involved
        are both within  the same block; or  the donor site is in  the 800-
        1200  blocks of  Granville  Street and  the  recipient site  is  in
        Downtown South.

   (b)  Transfer  of density  may be  considered from  for approval  by the
        Development Permit  Board involving  heritage sites  located within
        and  between  the various  zones  of  the  Central Area  including:
        Downtown District ODP,  RM-5, RM-5A, RM-5B,  C-5, C-6, HA-1,  HA-1A
        and CD-1, and those  portions of C-3A located west of  Main Street,
        north of  16th Avenue, and  east of Burrard Street,  except that no
        heritage  density may be transferred onto sites located in the HA-1
        and HA-1A Districts.                                     APPENDIX D
                                                                Page 2 of 4
                                   D R A F T

   (c)  If the  objective to be served  is (4) urban design,  the sites are
        within the same block or separated only by a single street;

   (d)  The aggregate development potential for the sites remains unchanged
        by the transfer;

   (e)  The aggregate  development potential  for any specific  use remains
        unchanged by the transfer;

   (f)  No  bonuses  for  public,  social or  recreational  facilities  are
        transferred;

   (g)  Except  for transfers involving  heritage sites,  no more  than two
        sites are  involved in any transfer  and a site is  not involved in
        more than one transfer;

   (h)  The  proposal  has  been  demonstrated  to further  the  intent  of
        Council's policies and regulations for the area;

   (i)  Heritage  bonuses  may be  transferred  if  Council has  previously
        decided under  its heritage bonus  policy that  all or part  of the
        bonus density cannot  be used  on the heritage  site without  undue
        impact on the character  and context of the preserved  building, or
        without an unacceptable impact on surrounding properties.

   The  following procedure  is  to be  followed  in applying  the  density
   transfer policy:

   (1)  For transfers to achieve heritage objectives:

        (i)  Heritage features to be  preserved on the donor site  shall be
             defined by the Director of Planning or the Development  Permit
             Board on the advice of the Vancouver Heritage Commission.

        (ii) Category A building on the Vancouver Heritage Register will be
             automatically eligible  for consideration;  Category  B and C-
             listed VHR  buildings  will  first  have  to  be  approved  by
             Council; A  and  B  category Recent  Landmarks  will  also  be
             considered if approved by Council for listing on the VHR;

        (iii)
        (ii) Residual (and bonus) density may  be held on a  heritage donor
             site  through the  use of  a  development limitation  covenant
             which shall be amended as density is  disbursed and ultimately
             discharged when all density is transferred;         APPENDIX D
                                                                Page 3 of 4
                                   D R A F T
        (iv)
        (iii) Preference  will be  given to  proposals  which use  heritage
              buildings for cultural,  social, recreational and educational
              uses, especially  when  that use  is historically  associated
              with the building; and

        (v)
        (iv)  For  any site  located  within  the  HA-1 District,  where  a

              development  application is  submitted  to  establish density
              available for transfer to another site,  Council approval for
              the creation of  the transferable density will be required as
              a  condition   of  development   permit  issuance,   although
              rezoning of the donor site is not required.

        (v)   Within  the  Central  Area  as  defined  in  (b)  above,  the
              following  steps  (2) to  (8)  involve  the  rezoning of  the
              heritage donor  site only; the receiver  site is approved  by
              the Development Permit Board;

        (vi)  Density on  receiver sites shall  be sensitive  to the impact
              of additional  density on  shadowing, floor  plate shape  and
              size, height and view corridors; and

        (vii) The  following  shall be  excluded  as receiver  sites       
              within the Central Area [as defined in (b)];

              -  sites already receiving a 15% hotel bonus;
              -  sites already receiving a heritage density bonus;
              -   sites containing a  single room occupancy  (SRO)         
              hotel,  unless arrangements  are  made  to secure  or        
              replace units; and
              -  sites zoned CD-1, unless a provision is included          
             in the CD-1 by-law.

   (2)  Developer reviews his proposals with the Director of Planning. 

   (3)  Developer makes  formal application for  rezoning with  appropriate
        supporting  material to indicate  details of and  rationale for the
        proposal  and  analysis of  relevant  impacts.    The  Director  of
        Planning  may  require  that  the  developer  concurrently  file  a
        preliminary development permit application.

   (4)  Director  of  Planning  coordinates  staff review  of  proposal  in
        consultation with Engineering, Social Planning, Park Board staff as
        required,  including  whatever  public   review  process  he  deems
        appropriate to the specific proposal, and may include consideration
        of a preliminary development  permit application by the Development
        Permit Board and the Urban Design Panel.                           
                                                                 APPENDIX D
                                                                Page 4 of 4

                                  D R A F T 



   (5)  Council considers the  proposal and staff review at  Public Hearing
        and gives decision.

   (6)  Appropriate   legal   agreements   are  drawn   up   according   to
        recommendations in staff review of proposal.

   (7)  Council enacts by-law.

   (8)  Development  permit  application process  is  followed  as in  CD-1
        development sites.                                       APPENDIX E

   Excerpt from the Vancouver Charter, Section 595 A

   1953                        VANCOUVER CHARTER                   CHAP. 55


   Transfer of increased density provided
   as compensation for heritage designation

   595A (1)  In relation  to extra density  provided as compensation  under
   section  595, the  Council  may establish  a  heritage density  increase
   transfer system in accordance with this section.

        (2)  For the purposes of this section, a zoning by-law may
   provide that the density otherwise permitted for a site  within the zone
   is increased if
        (a)  the  extra  density  is  transferred   to  the  site  from   a
             designated  heritage property  in  relation  to which  it  was
             received as compensation, and
        (b)  the transfer to  the particular site and the amount of density
             increase on that site  are approved by the  Development Permit
             Board established under Section 565A (d).
        (3)  A by-law referred to in subsection (2) must establish
   the  maximum density increase that  may be permitted  by the Development
   Permit Board, subject to the limit that the maximum established must not
   be greater than 10% of the  otherwise applicable density for the site to
   which the extra density is transferred.
        (4)  Before considering an application for approval of a
   density  transfer under this section, the  Development Permit Board must
   consider  the views of persons  who consider themselves  affected by the
   proposed density increase for the site to which the extra  density is to
   be  transferred and,  for these purposes,  must publish  a notice  in at
   least 2 consecutive issues of a daily newspaper published or circulating
   in the city stating
        (a)  the site to which  the extra density is to be  transferred and
             the designated heritage property to which it relates,
        (b)  the extent of density increase  that is proposed for  the site
             to which the extra density is to be transferred, and
        (c)  the manner in which  persons affected by the  proposed density
             increase for  the site  to which the  extra density  is to  be
             transferred  may make  their views  known  to the  Development
             Permit Board.
        (5)  Before a density transfer is permitted under this
   section, a  covenant in favour of  the city that the  extra density will
   not be used on the designated heritage property must be registered under
   section  215 of  the  Land Title  Act  against the  designated  heritage
   property.