SUPPORTS ITEM NO. 2 P&E COMMITTEE AGENDA FEBRUARY 8, 1996 POLICY REPORT DEVELOPMENT AND BUILDING Date: January 26, 1996 Dept. File: PEM TO: Standing Committee on Planning and Environment FROM: Director of Land Use and Development SUBJECT: Rezoning Inquiry at 3350 East Broadway (M-2) RECOMMENDATION THAT an inquiry to rezone 3350 East Broadway (Lot 26, Block 2, D.L. 735, Plan 3421) from M-2 to CD-1 to allow a 21 832 m› (285,000 sq. ft.) mixed-use development be discouraged. GENERAL MANAGER'S COMMENTS The General Manager of Community Services recommends approval of the foregoing. COUNCIL POLICY CityPlan On June 6, 1995 Council adopted a broad vision for Vancouver to guide City policy decisions, work priorities, budgets, and capital plans. CityPlan directions for neighbourhoods include the creation and strengthening of neighbourhood centres in all neighbourhoods as a place where people can find shops, jobs, and services close to home. On January 9, 1996 Council approved a public review process on a proposed approach to implementing CityPlan in neighbourhoods. On January 18, 1996 Council approved a policy to discourage rezoning applications which would be inappropriate to consider before or during neighbourhood visioning. Industrial Lands Strategy On March 14, 1995 Council adopted a policy framework to guide future decisions on industrial lands. The overall intent of the strategy is to retain industrial land for industry. Among the area-specific policies, the part of the Grandview-Highway frontage which has taken on a commercial orientation was designated as a potential zone for large-scale, highway-oriented retail uses which would be inappropriate in local shopping districts. 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. Policy on Large-Scale Retail Uses in Industrial Areas The floor space ratio regulations of the Industrial District Schedules limit floor area in retail use to 1 000 m› (10,764 sq. ft.). In November, 1987 Council approved eight criteria for the evaluation of rezoning applications for large-scale retail uses. Hastings-Sunrise Plan This local area comprehensive plan approved in May, 1985 seeks to preserve and improve the residential, commercial, industrial, recreational and social environments of the Hastings-Sunrise community. Approved neighbourhood goals include the reinforcement of the existing district shopping centre on Hastings Street, and reinforcement of a centrally located secondary shopping centre at First and Renfrew. PURPOSE This report seeks Council advice on an inquiry to rezone an industrial site on East Broadway for a large, mixed-use, industrial-commercial development. BACKGROUND Site and Surrounding Zoning The site, zoned M-2, is on the south-east corner of East Broadway and Rupert Street (see map in Appendix A). Previously developed with a one-storey building, the site has been vacant since 1989. The inquirer indicates that the site, which is about 1.7 ha (4.23 acres) in size, could be enlarged to 2.1 ha (5.15 acres) by incorporating the adjoining lot to the east. The site has a relatively steep fall from north to south and parallel to the Burlington-Northern rail line which abuts the south property line. There is a requirement for a 12.1 m (40 ft.) landscaped setback from the East Broadway property line. The 10-year plan announced by BC Transit in 1995 recommends a high-capacity light rail rapid transit in the Broadway/Lougheed corridor. The surrounding area is generally zoned RS-1S One-Family Dwelling District north of Broadway and M-2 south of Broadway. Properties on the other three corners of this intersection are zoned C-1 (Local-Serving) Commercial District. Development Application Processing On June 1, 1995, Council considered a report on Development Application DE400074 for this site which proposed a Casino (14,000 sq. ft.), Restaurant (8,000 sq. ft.) and Wholesaling/Manufacturing (26,000 sq. ft.). While the Social Planning and Police Departments did not object to the relocation of a casino from 725 S.E. Marine Drive, Planning staff were concerned that the proposed casino and restaurant would have detrimental impact on industrial land values in the surrounding area. After hearing many delegations opposed to the proposed casino, Council approved a staff recommendation that the application be refused. DE400074 was consequently refused, and an appeal of this decision to the Board of Variance in December, 1995 was unsuccessful. Contemplated Development An inquiry has been received requesting a rezoning of the site (see attached as Appendix B a copy of an inquiry letter, dated December 21, 1995, from Mr. John Combs). Rezoning is requested to accommodate mixed-use development of approximately 26 477 m› (285,000 sq. ft.). The floor space ratio (FSR) would be approximately 1.55 on this 17 118 m› (184,259 sq. ft.) industrial site. Proposed four-storey development includes a deck for parking (not counted in FSR). On this sloped site, development would rise two storeys above grade on East Broadway. Most of the contemplated floor area, 20 903 m› (225,000 sq. ft.) or 79 percent, would be for President Asian Enterprises Ltd. Among its several business undertakings in Greater Vancouver are a growing number of food stores (T & T Supermarkets), including one which will open in International Village. President Group proposes to relocate, consolidate and expand on this site its wholesale distribution, warehousing, and servicing operations, its food processing and cold storage facilities, and its head office. President Group seeks up to 8 897 m› (85,000 sq. ft.) of retail space in conjunction with a 13 000 m› (140,000 sq. ft.) industrial operation. This combination of uses would be similar to the "Real Canadian Superstore" at 350 S.E. Marine Drive. The proposed retail area would represent 37 percent of President Group's operation, and 30 percent of the total floor area on the site. The inquirer contemplates an additional 5 574 m› (60,000 sq. ft.) on the top storey. Possible tenants being considered for this space include Manufacturing, Laboratory, General Office, Restaurant - Class 1 and School (Secondary and College) uses. Rationale for Proposed Rezoning Rezoning would be needed because Grocery or Drug Store is not a permitted use in the M-2 Industrial District, and floor area in Retail Uses cannot exceed 1 000 m› (10,764 sq. ft.), including floor area for ancillary retailing. In addition, two elements of contemplated development are conditional approval uses which staff would generally not support: - proposed School uses, both Secondary School and College, because they are likely to conflict with industrial operations on the site or in the surrounding area and are better located in more accessible commercial districts; and - restaurants, unless they are limited in size and are intended to serve industrial workers from the surrounding area. DISCUSSION No Industrial Policy Basis for Supporting Rezoning The Industrial Lands Strategy seeks to retain the city's industrial land base for industry and service businesses. On this basis, an inquiry to rezone an industrial site for other uses should not be encouraged if it does not satisfy any of the circumstances in which Council is prepared to consider the rezoning of industrial land. This inquiry does not meet Council-adopted criteria and on that basis should not warrant further consideration. It is not (a) based upon CityPlan or other City-initiated planning process; (b) located in a "let go" industrial area; (c) located in a designated highway-oriented retail/industrial district (i.e. portions of Marine Drive and Grandview Highway where zoning for large-scale retail uses is to be developed); (d) located within the False Creek Flats and in the context of the City-initiated overview planning study. The amount of floor area which is contemplated for retail and other non- industrial uses, up to 13 470 m› (145,000 sq. ft.), is substantial. Council's policy and evaluative criteria for assessing the potential impacts of large-scale retail use identify a broad range of concerns which are raised by this magnitude of non-industrial development (see Appendix B). The likely negative consequences for industry include increased industrial land values, traffic impacts on industrial activities in the surrounding area, and destabilization of the industrial land base. Concern about the impacts of large-scale retail uses on industrial land led to the designation of portions of the Grandview Highway and Marine Drive frontages to accommodate retail-industrial uses. The East Broadway and Boundary Road frontages were considered but it was determined that Grandview Highway and Marine Drive could provide ample capacity for highway-oriented retail uses and that the rest of the industrial land base be preserved. CityPlan and Neighbourhood Planning Considerations CityPlan encourages the creation or strengthening of neighbourhood centres as places where people can find shops, jobs, and services close to home and accessible by foot or public transit. The development which is contemplated on this site, particularly the large amount of retail floorspace, could have serious implications for CityPlan implementation -- depending on the neighbourhood visions which are developed for Hastings-Sunrise (to the north) and Renfrew-Collingwood (to the south). The local area plan adopted in 1985 for the Hastings-Sunrise neighbourhood has goals and policies for neighbourhood commercial areas already. They seek: - to reinforce the existing district shopping centre on Hastings Street, - to reinforce a centrally located secondary shopping centre at First and Renfrew, - to encourage development of one or more high volume food stores, and - to maintain the smaller commercial centres for local convenience shopping. Since 1985, not only has a mid-size grocery store and shopping centre been developed at 1st Avenue and Renfrew Street, but a Real Canadian Superstore was developed at 3185 Grandview Highway, and Price Club at 3585 Grandview Highway. Local convenience shopping is said to have been seriously affected by these developments, and would be jeopardized even more by yet another large food store in the area. The commercial uses contemplated on this site appear to conflict with neighbourhood goals and Cityplan directions. At best the rezoning inquiry is premature and would be better considered after neighbourhood visioning is completed in the larger area surrounding the site and encompassing both Hastings-Sunrise and Renfrew-Collingwood. This would be consistent with Council's decision of January 18, 1996 to discourage rezoning applications which are inappropriate to consider before or during neighbourhood visioning. Alternative Consideration The Industrial Lands Strategy states that "there is a need for flexibility to allow for changes as required." On this basis the inquirer wishes that Council be willing to consider a rezoning application for this site (see copy of letter in Appendix B). The inquirer offers three observations in support of the mix of uses and development contemplated on the site: - considerable industrial space is contemplated -- a minimum of 13 000 m› (140,000 sq. ft.), and potentially 18 580 m› (200,000 sq. ft.), for manufacturing and wholesaling uses. FSR would range between 0.76 and 1.1, which is higher than the average intensity of industrial land use in the city; - proposed retail space would be no more than 37 percent of the total floor area and would be an integrated element, both functionally and physically, of President Group's large wholesaling/manufacturing operation consolidated on this site; and- the physical characteristics of the site, particularly its configuration and topography, and the requirement for a 12.1 m (40 ft.) landscaped setback, constrain the economic feasibility of development, by contrast to the other industrial sites along East Broadway which are larger, flatter, longer and wider, and thus easier to develop. Staff confirm that the CD-1 zoning approved in 1988 for Westfair's "Real Canadian Superstore" on the 5.2 ha (12.8 acres) site at 3185 Grandview Highway permitted 10 290 m› (110,770 sq. ft.) of retail space but required a minimum of 5 247 m› (56,500 sq. ft.) of industrial space, only 34 percent of total floor area. The present inquiry contemplates a minimum of 63 percent industrial space. Staff also note that the contemplated President Group facility would be similar to Westfair Food's "Real Canadian Superstore" at 350 S.E. Marine Drive. Approved prior to the 1 000 m› (10,764 sq.ft.) limit on retail floor area, a 13 935 m› (150,000 sq. ft.) Grocery and Drug Store was combined with 7 870 m› (300,000 sq. ft.) floor area for manufacturing and wholesaling to serve both this and other Westfair stores in Greater Vancouver. While the inquirer's observations have some merit, staff do not believe they are so compelling as to take precedence over the Industrial Lands Strategy, CityPlan directions or Hastings-Sunrise Plan goals. Resources Required to Process the Application If Council is prepared to consider a rezoning application on this site, and if such an application is made, staff would process it in the usual manner. Assessment of the application would include consideration of the eight criteria set out in the Policy on Large-Scale Retail Uses in Industrial Areas, the principles underlying the Industrial Lands Strategy (e.g., minimize industrial land value impacts), the Hastings-Sunrise Plan, and CityPlan directions. While it would be the applicant's responsibility to demonstrate how these criteria and principles will be met, this is not expected to diminish staff work. (Consultant assistance was required in assessing the rezoning applications for home improvement centres on industrial land at 900 Terminal Avenue and 2750 Slocan Street.) CONCLUSION On the basis of City Plan directions, and given that a portion of the Grandview Highway frontage has been designated to accommodate retail- industrial uses, Planning staff recommend that this rezoning proposal for a large, commercial-industrial development on the industrial site at 3350 East Broadway be discouraged. * * * * * *