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.


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