POLICY REPORT
                                URBAN STRUCTURE

                                           Date:  March 27, 1996
                                           Dept. File No.  RJ


   TO:       Vancouver City Council

   FROM:     Director of  Central Area  Planning, in consultation  with the
             Directors  of  City  Plans  and Community  Planning,  and  the
             General Managers of Engineering Services, Human Resources, and
             Board  of Parks and Recreation, as well as the Managers of the
             Housing Centre and Real Estate Services

   SUBJECT:  False Creek  Flats Planning  Overview and  Preliminary Concept
             Plan


   RECOMMENDATION

        A.   THAT  the  False Creek  Flats  Preliminary  Concept Plan  with
             adjusted study area boundaries (Appendix A) be adopted;

        B.   THAT in accordance with  the Proposals for Updating Industrial
             Zoning  (February 6,  1996 discussion  paper) the  False Creek
             Flats M-1 and M-2 zoned areas be  included in the proposed I-2
             zoning initiative, subject to further review as recommended in
             the Preliminary Concept Plan; and

        C.   THAT the  funding to  finalize the  False Creek Flats  Concept
             Plan and complete the Trillium rezoning as set out in Appendix
             B be  approved for a 20-month period at a cost of $441,300, of
             which $155,000 will be offset by Trillium's rezoning fees with
             further offset rezoning fees likely forthcoming;

             FURTHER  THAT the  1996  portion of  this,  in the  amount  of
             $284,000,  come  from the  Contingency  Reserve  Fund and  the
             balance be included in departmental  regular operating budgets
             thereafter;

             AND  FURTHER  THAT  Planning,   Engineering,  Parks,  and  Law
             Department  staff for  the  concept plan/Trillium  rezoning be
             approved as set out  in Appendix B, subject to  job evaluation
             by the General Manager of Human Resource Services:
   GENERAL MANAGER'S COMMENTS

        The  General Manager of Community Services RECOMMENDS approval of A
        and B.

        Instead of C, the General Manager of Community Services recommends:

        D.   THAT funding to complete  the Trillium rezoning as set  out in
             Appendix B  be approved for  a 10  month period at  a cost  of
             $253,000,  of  which $155,000  will  be  offset by  Trillium's
             rezoning fees;

             FURTHER  THAT the  1996  portion of  this,  in the  amount  of
             190,000,  come  from  the  Contingency Reserve  Fund  and  the
             balance  of  $63,000  be  included   in  departmental  regular
             operating budgets in 1997;

             AND  FURTHER THAT  Planning,  Engineering  and Law  Department
             staff  for the  Trillium rezoning  be approved  as set  out in
             Appendix  B, subject to job evaluation  by the General Manager
             of Human Resources.

        I do not believe  that additional detail, beyond that  contained in
        the  Preliminary  Concept  Plan  and  in  the  proposed I-2  zoning
        initiative, is  required at  this time; and  I do not  believe that
        additional  work  in False  Creek  Flats  is  a  planning  priority
        relative  to  alternative uses  of  scarce  City dollar  and  staff
        resources (for example, an accelerated program to maintain CityPlan
        momentum, a  more rapid response to RS-1  neighbourhood demands for
        design  control, a  more concerted  effort on  the problems  of the
        Downtown  Eastside or  re-engineering  of the  planning process  to
        reduce the time  and resources it consumes currently).   As well, I
        must note the competing uses for half a  million dollars across the
        entire  City organization.   There  are  many of  these, especially
        responses to  public safety  concerns (for  example, review of  our
        seismic requirements), which I would rank above taking the plan for
        False Creek Flats to a  higher level of detail.  In my opinion, the
        current  level of  detail  is  sufficient  to respond  to  specific
        development  proposals which  may or  may not  arise over  the next
        several years.
   COUNCIL POLICY

   -    On March  14, 1995,  Council adopted the  Industrial Land  Policies
        which  supports retention of the False Creek Flats for mainly city-
        serving industry, transport, and  service uses, and the development
        of  a sub-division  plan to  deal with such  issues as:   services,
        amenities,   compatible   uses,   and   interface   with   adjacent
        neighbourhoods.

   -    On  March 28, 1995, Council approved changes to policies for artist
        live/work studios in industrial  zones to limit them to  rentals in
        existing  buildings at a maximum  floor space ratio  of 1.0, except
        for  the  Brewery  Creek  area  which  allows  strata-title  artist
        live/work studios.

   PURPOSE

   This  report provides an overview  of the False  Creek Flats Preliminary
   Concept Plan, attached as Appendix A.  It also outlines  further work to
   be  undertaken  and  recommends resources  to  complete  this  work.   A
   companion report entitled, "Live/Work and  Work/Live" describes findings
   of  research and analysis of  industrial live/work.   A second companion
   report   provides  preliminary  assessment   of  the  Trillium  rezoning
   application  based on the  policies proposed in  the Preliminary Concept
   Plan.  

   SUMMARY

   The False  Creek Flats has approximately  32 ha (80 acres)  of land that
   will become  available for redevelopment  in the  next 10 years.   Along
   with more intense industrial use of other sites in the Flats, this could
   result in the  area's worker  population going from  3,000 employees  to
   10,000  to  15,000  employees.   Large  amounts  of  traffic (85%  cars)
   currently travel through the Flats on the way to and  from the Downtown.
   Railyards,  which  will  stay  for  the  foreseeable  future,  currently
   restrict the ability to provide access to the interior of the Flats.

   For  the most part, the  overview and the  resulting Preliminary Concept
   Plan (Appendix  A), reaffirm the  need to preserve  the Flats for  city-
   serving and Downtown-related industry.  At the same time, there has been
   support  for a cleaner (low-impact), lower scale industrial zoning, as a
   buffer  to  adjacent  neighbourhoods.   For  most  of  the Flats,  these
   concerns will be accommodated by the proposed I-2 zoning.  However, with
   several  large sites  currently  considering redevelopment,  there is  a
   unique opportunity to create  comprehensively planned precincts for low-
   impact, high-tech industry  that would include  amenities and provide  a
   better transition to adjacent communities.  In the
   south, on the Finning and adjacent sites, this could take the form of  a

   high  amenity, urban  industrial park.   In the  north, on  the Trillium
   site, a similar zoning could be pursued.  Should Council wish, this site
   could also incorporate an industrial work/live pilot project, subject to
   criteria outlined  in the  Preliminary Concept  Plan.  More  traditional
   transportation and open storage  uses should remain in the  interior and
   eastern end of the Flats.

   It  is recommended that some  commercial uses for  industrial workers be
   focused on  Main Street and to some extent Terminal Avenue.  In addition
   to  providing  for day-to-day  needs of  workers, Terminal  Avenue could
   include  larger recreational  and entertainment  uses under  pressure to
   relocate from emerging residential neighbourhoods in the Downtown.  Big-
   box  retail is not recommended,  due to significant  impacts on existing
   businesses,   neighbourhood  centres,   traffic,  and   industrial  land
   availability and value.

   The  extension of  surrounding local  street systems is  recommended for
   area  access.   In  addition,  most  future transportation  options  are
   maintained by preserving a corridor  along the southern edge of  the new
   park, works yard, and  Trillium site, which is integrated with the local
   street system.  

   While preliminary options are presented, detailed planning of the roads,
   services, and open space system  will be completed in the next  phase of
   planning.  Servicing costs will be examined for cost sharing between the
   City and new developments and soil stability and contamination will need
   to be studied  as part  of the final  concept plan.   A public  benefits
   strategy will also be finalized in the concept plan.

   Staffing for  the completion of  a final  concept plan, as  well as  the
   further evaluation of  the Trillium rezoning  and possible rezonings  on
   Finning and  CN lands, is identified  in Appendix B and  recommended for
   Council approval.BACKGROUND

   Figure 1.  False Creek Flats



























   Overview

   In June  1995, Council approved a  planning overview of the  False Creek
   Flats  and instructed staff to undertake a study of industrial live/work

   as it pertains to the Trillium Corporation (980-990 Station Street), and
   the  McLean  Group (Grandview  Highway and  Boundary  Road) sites.   The
   overview  was to be done  in conjunction with  the City's transportation
   plan and to address the need for a connection through the Flats.

   To guide staff in  the overview, Council adopted general  principles, as
   follows.

   -    Capacity should be maintained for City-serving industry.

   -    An analysis of industrial live/work should be undertaken subject to
        a number of conditions.

   -    Residential as a separate use should not be considered.

   -    An analysis  of increased allowances for retailing  and office uses
        should be undertaken, subject to a number of conditions.

   The public  was to be involved throughout the process and in determining
   the recommended directions.

   DISCUSSION

   Area Description

   General Area Role and Land Use

   False Creek  Flats is a 125 ha (308  acre) area that comprises about 20%
   of  the  city's  industrial land  and  accounts  for  about 3,000  jobs,
   representing about 6% of the  City's industrial jobs.  The  Flats serves
   as  a freight  receiving and  distribution centre  for Downtown  and the
   Port.  About half of the  area is involved in transportation and storage
   activities, with wholesaling/ distribution as the largest component.

   Over the  next 10  years, about  32 ha (80  acres) of  land will  become
   available for  redevelopment, including  the Trillium site,  the Finning
   site, and CN and other residual rail land.  More  intense industrial use
   of these  and other  sites could  result in an  increase from  the 3,000
   existing jobs  to between 10,000  to 15,000 jobs.   Rail  operations are
   vital  to  the Port  and  will  stay  for the  foreseeable  future,  the
   exception being the small Burlington Northern yard directly north of the
   Finning site.  Most of the existing industries such as food wholesalers,
   bus  and taxi companies, and freight forwarders, have indicated that the
   Flats is  the preferred  location for  their  city-serving or  Downtown-
   related functions and  that they  intend to stay.   High-tech  industry,
   such as the new Sprint Canada building, is beginning to show interest in
   the  area.   This is  primarily  due to  its proximity  to Downtown  and
   educational  facilities, large  parcel sizes,  good access,  fibre optic
   lines, and a relatively high profile location.

   Terminal Avenue  is the most travelled  route in the area  and, as such,
   has attracted businesses which  benefit from the high visibility.   Most
   of the frontage between  Main Street and Glen Drive is either commercial
   or commercially-oriented industrial uses.

   Study Area Boundaries

   As reported in June 1995, staff  examined the study area boundaries  and
   have concluded that it is appropriate  to include properties on the east
   side  of Main Street.   This is  due to the  heritage merit of  the Main
   Street frontage, the existence of 191 SROs (not including the 88 SROs on
   the  west side of  Main in the Cobalt  Hotel) and the  ability to plan a
   complete neighbourhood in conjunction  with the adjacent southeast shore
   planning program.

   Proposed Directions

   Organizing Principles

   The  False  Creek Flats  Preliminary  Concept  Plan proposes  organizing
   principles important to the future structure of the Flats.  These are:

   1.   Create a mixed-use neighbourhood, focused on Main Street, as a link
        between the  Flats and  False Creek  (applies to  about 10% of  the
        Flats).

   2.   Provide  for city-serving  and Downtown-related  industry in  a way
        which  creates  a  sensitive   transition  between  the  Flats  and
        residential neighbourhoods to the north and south (applies to about
        32% of the Flats).

   3.   Use  Terminal Avenue to "serve" the  Flats (applies to about 23% of
        the Flats).

   4.   Preserve internal sites in the Flats for moderate impact industrial
        uses,  such  as  railyards,  freight forwarding,  and  works  yards
        (applies to about 32% of the Flats).

   5.   Preserve  the  eastern  edge of  the  Flats  near  Clark Drive  for
        moderate impact  industry, such as open storage  or metal recycling
        (applies to about 3% of the Flats).

   Industrial Use

   While  most of the  False Creek Flats  is zoned M-2,  which permits both
   "heavy" and "light"  industry, almost no heavy industry currently exists
   in the Flats.  In fact, almost all of the existing industrial uses could
   be approved under a lighter industrial zoning.

   Creating   this   type   of   zoning  is   consistent   with   Council's
   recommendations  and  a  recent  staff discussion  paper  proposing  the
   rezoning of M-1 and M-2 areas throughout Vancouver to I-2.   The new I-2
   zoning would: expand  the definition  of industry to  allow for  service
   industrial  uses  such  as   laboratories  and  film  studios;  increase
   allowable floorspace for service industrial uses; recognize the changing
   nature of industry and increase the amount of office in association with
   production  and service uses; and make new industry more compatible with
   nearby  residential by proposing to  lower the permitted  floor area and
   height  for  more traditional  industry.   A  summary of  these proposed
   changes is attached as Appendix  C.  A discussion paper on  the proposed
   changes  is currently circulating for public comment.  Staff will report
   to Council in May on the proposed changes.

   It is  recommended that all  of the M-1  and M-2 zones  in the  Flats be
   rezoned to  I-2.  For most of  the interior and eastern  portions of the
   Flats,  including the  rail, City  and  Parks work  yards, and  the food
   wholesaling on Malkin,  the proposed  I-2 zoning is  suitable and  would
   remain in the  long term.  For the remainder, the  I-2 provides a short-
   term zoning  that protects  against large scale,  high-impact industrial
   activities which would create major impacts on adjacent residential.  In
   the long term, however, the Trillium  site in the north and the Finning,
   BNR,   and    CN   lands    in   the   south    are   recommended    for
   rezoning/redevelopment  as  CD-1,  Comprehensive Development  Districts.
   These  districts   would   maximize   the   opportunity   presented   by
   incorporating built form solutions tailored to adjacent development, and
   providing  adequate public benefits and amenities.  The final zoning for
   these districts would  be framed as part of the  final concept plan, and
   would  be finalized  upon application  for redevelopment  by major  land
   owners.

   Industrial Work/Live Use

   In response to Trillium's  and other proposals for  industrial live/work
   on  industrial   lands,  analysis  has  been   undertaken,  including  a
   consultant's study  on industrial  live/work in North  America and  some
   cities in Europe.   This study is  on file at  the City Clerk's  Office.
   The  companion Council  report  on Live/Work  and  Work/Live found  that
   industrial work/live (but not industrial live/work) is  a legitimate use
   with a limited  demand that is currently not  accommodated in any zoning
   district.  It concludes  that only industrial work/live, because  of its
   higher  impacts   and  work  orientation,  should   be  accommodated  on
   industrial  land.  The report  also puts forward  locational criteria to
   identify  a limited number  of suitable sites for  this use and criteria
   for unit design.

   Consistent  with  these  policies,  the False  Creek  Flats  Preliminary
   Concept Plan  incorporates some of this demand in the Flats.  This issue
   is  further discussed in the  companion report on  the Trillium rezoning
   application.  

   Commercial Use

   As the number of workers in the Flats increases, a case can be  made for
   providing some  opportunities for local-serving office  and retail uses.
   It is recommended that  focusing commercial activities such as  these be
   encouraged  on Main  Street and  to some extent  on Terminal  Avenue. On
   Terminal Avenue this  could be expanded  to include larger  recreational
   and entertainment  facilities currently under pressure  to relocate from
   the Downtown.  Focusing commercial on arterials away from the industrial
   area is consistent with the Industrial Land Policies.

   A large  home improvement centre has been approved at the eastern end of
   Terminal Avenue, and since  that time, inquiries have been  received for
   large, big-box retail.   Big-box retail development in the  Flats is not
   supported  due  to  the  probability of  significant  impacts  on nearby
   commercial businesses,  conflict with  the CityPlan direction  to create
   neighbourhood  centres,  potential  traffic  impacts in  the  Flats  and
   adjacent neighbourhoods,  the large sites required,  the consequent loss
   of industrial  land, and  the potential  increase in  land value.   This
   recommendation is also consistent with community preferences.

   Transportation 

   1.   Local Access

        A  major focus in  the planning  overview has  been an  analysis of
        future  area access needs.   Possible street layouts,  based on the
        extension  of local streets and  the integration of  the Flats with
        the adjacent  communities, are included in  the Preliminary Concept
        Plan.  Providing  access by  extending the local  streets has  been
        strongly supported by the adjacent communities.

   2.   Transportation Corridor

        In  addition to  local access,  a major  question addressed  by the
        overview has been  whether or  not a corridor  should be  preserved
        through the area  to provide  future options.   This could  include
        links to Clark Drive or a continuous link from the Georgia Viaducts
        to the Grandview Cut.

        Findings  from  the work  being  done  on the  Transportation  Plan
        indicate that a  truck roadway using the  Grandview Cut and a  link
        through the Flats cannot be justified at this time.   There is only
        a limited  time savings  of between 30  seconds to  60 seconds  per
        truck, of the 250 heavy trucks per day that proceed to the Downtown
        today or  the  300  predicted  for  the future.    The  only  valid
        justification would  be a benefit  to the  affected communities  by
        reducing truck  traffic on  existing streets.   However, Grandview/

        Woodlands, the  most directly  affected community consulted  in the
        Flats  process, would prefer to see the Grandview Cut retained as a
        green space and greenway.

        Over the longer  term, other transportation options  could become a
        consideration  for the Grandview Cut or  as a link across the False
        Creek Flats.  These include:

        -    Transit needs for  commuter rail, buses, or  potentially as an
             alternative Broadway LRT alignment.

        -    Pedestrian and bicycle needs,  particularly as an  alternative
             to the current Terminal Avenue bicycle route through the Flats
             linking to the B.C. Parkway (7-11 route).

        -    Goods movement  if there are new emerging  needs not currently
             anticipated.

        Maintaining a transportation corridor  does provide flexibility  to
        meet  future growth  and  development of  both  the Flats  and  the
        Downtown  (noting  that  Transport  2021  does  not  recommend  any
        increase  in car capacity into  the Downtown).   Development of any
        transportation corridor  would require both a  clearly demonstrated
        need and a broad public consultation process.

        At  this time, the rezoning  application on the  Trillium site, the
        development of the new  park, and the City works yard  does provide
        an opportunity  to preserve transportation options  for the future.
        This can be achieved for a large portion of the Flats at relatively
        low costs.

        Within the Flats  it was originally proposed that a  30 m (100 ft.)
        corridor  with large radius curves be maintained in order to ensure
        maximum flexibility.  However, this is not supported by the work of
        the  Transportation  Plan  to date,  nor  is  it  supported in  the
        community consultation process.

        Instead, it is recommended  the option for the future  be preserved
        as follows:

        -    Connections to Main and Prior  through the Trillium site would
             each be secured by a  20 m (66 ft.) right-of-way with  a 2.1 m
             (7  ft.) setback  of building lines  to meet  potential future
             needs.

        -    Along  the southern section of the Park and City works yard, a
             24.4 m (80 ft.) right-of-way would be provided.

        The actual width of the streets and the use of any setbacks will be
        determined during the preparation  of the final concept plan.   Any
        future use of the setbacks within or adjacent to the Trillium  site
        would be done in light of clear needs and in  consultation with the
        adjacent communities.

        In summary, while  the proposed corridor  does not accommodate  all
        future  options, it  does  make provision  for  most, in  a  manner
        sensitive to new development and the adjacent communities.

   Services

   Area  servicing  has   also  been  analysed   with  respect  to   future
   development, with requirements included in the Preliminary Concept Plan.
   Because of  the  limited services  in  the area  and  the high  cost  of
   providing  those services needed for the future, a funding strategy will
   be a significant  element in the preparation of the  final concept plan.
   Initial   cost  estimates  indicate  approximately  $7,000,000  will  be

   required  to  provide  future sewer  and  water  services.   This  could
   increase  depending  upon  soil  conditions or  amount  of  development.
   Projections  are based on staff estimates of approximately 7,000,000 sq.
   ft.  of  new floorspace  over  the next  20  years, in  addition  to the
   existing  3,000,000 sq.  ft.   City and  developer cost-sharing  will be
   examined as part of the final concept plan.  However, in the  long term,
   these  costs,  plus  street  infrastructure costs,  would  be  recovered
   through  the  increased  property  taxes  generated  by  the  additional
   development.

   Public Amenities

   An adopted east-west  greenway (the Parkway  Greenway) needs to  connect
   through the Flats  to False  Creek.  Neighbourhood  plans for  Grandview
   Woodlands  and  Mt.  Pleasant  call  for  park  space  to  help  address
   shortages.    Any new  parks  should be  used to  complement  a greenway
   network   through  the   area  as   well  as  to   provide  recreational
   opportunities  for  Flats  employees.   The  daylighting  of  historical
   streams and the creation  of small wetland environments is  possible and
   should be accommodated in parks, open space, and  redeveloped industrial
   sites.   A possible  open space  layout is  included in  the Preliminary
   Concept Plan.  Details of this scheme and ways and means to implement it
   will be resolved in the final concept plan.

   The provision of  amenities should be part of the intensification of the
   Flats.  In  principle, the  developer is expected  to provide  amenities
   required by new  employees and residents.   In comprehensively developed
   and  mixed-use areas, amenity requirements will be negotiated as part of
   major rezonings  based upon standards  set in future  detailed planning.
   In areas  remaining as I-2, amenity  needs will be much  lower; even so,
   amenity costs  could be  difficult for  modest industrial activities  to
   bear.  Balancing  amenity objectives, with the  obligation to facilitate
   industrial jobs and then settling  on an amenity strategy, will be  done
   as part of finalizing the concept plan.

   Public Consultation

   The  Public Consultation process and findings are summarized and on file
   with the City  Clerk.   Approximately 40 public  meetings, open  houses,
   workshops, focus  group meetings,  and informal "coffee  table" meetings
   have been held throughout the process.  These have involved the adjacent
   community associations,  business owners and operators,  and the general
   public.  Formal public input has been received in the form of a workbook
   and a questionnaire.

   The  results of  the public  consultation were  surprisingly consistent.
   There was overall  support for retaining most of the Flats for Downtown-
   serving  and transportation related  industry.  Rather  than opening the
   area up for commercial uses, focusing it  on Main Street and to a lesser
   extent  on Terminal Avenue, was  generally supported.   There was little
   support for big-box retail  and a great  deal of concern over  potential
   impacts on nearby commercial areas, particularly from adjacent residents
   and business owners.

   Industrial live/work was seen as an interesting idea, although there was
   concern over  the reality of the work  component and the preservation of
   industrial  jobs.   Some Strathcona  residents  were very  supportive of
   industrial  work/live on  the Trillium  site as  a better  transition to
   their neighbourhood.   The work/live user focus  group provided valuable
   input on unit and building design  as well as how many units  are needed
   for a compatible community.

   Most  of the  public felt that  the area  could be  adequately served by
   extending the local  streets and  not providing a  corridor between  the
   Georgia Viaduct and  Grandview Cut.  There  was support for  a corridor,
   particularly from Strathcona residents, if it was dimensioned as a local
   street and would reduce the traffic on Prior/Venables.

   There was strong support for providing parks and greenway connections in
   the Flats.   Opportunities to  recollect the past  and introduce  water,
   particularly daylighting  streams, was given  a high priority  by nearby
   residents and environmental groups.

   Downtown  Eastside groups and  some Strathcona residents  also wished to
   see  limited residential use incorporated  along Main Street  and on the
   northern edge of  the Flats.  This is because of  their interest in non-
   market housing and not due  to a lack of support of the Industrial Lands
   Policies.

   Major Landowners

   1.   Trillium

        Parameters for development of the 6.8 ha (16.8 acres) Trillium site
        in  the  north-west  corner  of  the  Flats  are  set  out  in  the
        Preliminary Concept Plan.   The existing rezoning application (980-
        990  Station Street),  as  well  as  more  recent  ideas  from  the
        developer, are  evaluated against  these parameters in  a companion
        report.   This  is  a key  transition  area, for  which  low-impact
        industry  is  supported.   Inclusion of  a component  of industrial
        work/live is also supported,  as outlined in a companion  report on
        live/work  and  work/live.     In  any  event,  a   tailored  plan,
        comprehensive  zoning,  and  an  appropriate  amenity  package  are
        essential  for  the  benefit  of on-site  uses  and  for  sensitive
        adjacent  areas.    This  would  be  achieved  through  the  City's
        cooperative planning process for larger projects.

   2.   Finning and Canadian National

        The 12.1 ha (30  acre) Finning site on Great Northern  Way adjacent
        to  Mt. Pleasant,  along  with the  6.5  ha (16  acre) of  Canadian
        National lands to  the north,  and perhaps the  abutting BNR  lands
        [approximately  4.0 ha (10 acres)], comprise a major portion of the
        high-tech,  urban  industrial  park  proposal  in  the  Preliminary
        Concept Plan for  this southerly  area.  The  site size,  location,
        image, and  access suggest  this potential.   Rezoning applications
        have not yet been submitted,  but this primary use is in  line with
        some ideas  from the land owners  in the past.   Several other uses
        mentioned by these owners, such as big-box retail  and residential,
        are  not  compatible  with  the  Preliminary  Concept  Plan.    The
        importance of these  sites and their adjacency to residential areas
        requires a tailored plan,  comprehensive zoning, and an appropriate
        amenity  package  coordinated  among  the owners.    This  would be
        achieved   through  the  cooperative  planning  process  for  major
        projects at the developers' initiatives in applying for rezonings.

   3.   City of Vancouver

        While City of Vancouver ownership includes the works yards and some
        parcels along Terminal Avenue, with respect to City land, the major
        focus has  been on the land  between Station and Main  Streets.  In
        the Preliminary Concept Plan,  this land is seen as  an opportunity
        to complete  the Thornton Park mixed-use neighbourhood,  as well as
        to provide clear definition and a buffer between this area and  the
        industrial  development to the east.   This would  be undertaken as
        part of the final concept plan. 

   Outstanding Work Items 

   The next  step recommended in the  planning of False Creek  Flats is the
   completion of the concept plan.   This plan would involve all interested
   and  affected   parties  in  developing  recommendations  for  detailed,
   specific land  use,  building envelopes,  street patterning,  servicing,
   open space design, and parks and greenways, based upon Council direction
   in  adopting  the  Preliminary   Concept  Plan.    Parallel  work   also
   recommended is the cooperative planning of the Trillium rezoning through
   the major projects rezoning  process.  Should rezonings for  Finning and
   CN  be submitted, cooperative  planning for them would  be added to this
   work,  for  which  incremental resource  needs  would  be  reported.   A
   significant element  in the final  concept plan will  be a strategy  for
   public  benefits  and  amenities   within  the  context  of  maintaining
   industrial viability.  A significant element in  the rezoning evaluation
   will  be securing these services, benefits, and amenities.  Further work
   on soils,  including stability and contamination, will also be required.


   Recommended Staffing and Resources

   Recommended staffing in Planning, Engineering, and other departments, as
   well  as associated  resources for  a 20-month  program to  complete the
   Concept  Plan and  the Trillium  rezoning now in  hand, are  detailed in
   Appendix B.   This represents a  continuation of a  Planner and a  Civil
   Engineer  from the  phase one  Overview Study  and new  positions for  a
   Planning  Assistant and part-time Planning  Clerk for the  next phase of
   planning.   Consultant  funds for  addressing potential  Building By-law
   work items  as a result of  work/live proposals, is included  as part of
   Trillium consultant funds  and can be supplemented by  funds anticipated
   for  this work and already set aside  in the Planning Department budget.
   Projected incremental timing and resources that will be needed to handle
   the Finning and CN rezonings, if they are forthcoming, are also outlined
   for information.  These will be requested only if necessary.

   Expenditures to date, along with  projected expenditures to complete all
   work, will be about 50% cost recoverable from fees required from all the
   potential  rezonings.    This  is  detailed  in Appendix  B.    This  is
   consistent with  City policy on  costs and fees for  large rezonings and
   related  planning activities.   All  budget  and fees  are in  line with
   projections reported in June 1995.

   There is no capacity to undertake  this work now with existing resources
   and there are no offsets beyond the 50%  recovery from anticipated fees.
   Accordingly, if Council wishes this work to commence, $284,000 will need
   to  be allocated from Contingency Reserve in 1996 and $157,300 will need
   to be included  in 1997 departmental budgets  for the completion  of the
   work.  Otherwise, staff will  not be free to commence area  concept plan
   work  until  1998, subject  to no  other emerging  City priorities.   If
   Council wishes to continue with the Trillium rezoning and defer the area
   concept  plan,  $190,000  will  need to  be  allocated  from Contingency
   Reserve  in   1996  and  $63,000  will  need  to  be  included  in  1997
   departmental budgets for the completion of the work.

   Staff  believe it is  prudent to continue with  concept planning for the
   Flats due to public expectations and the ability to share resources with
   those  potentially allocated to the various rezonings.  Public input has
   indicated a desire  to see comprehensive planning  of an open  space and
   linkage network, a streets and  utilities system with traffic mitigation
   included, and  area-wide land  use concepts with  adjacent neighbourhood
   interfaces focused upon.

   FINANCIAL IMPLICATIONS

   Staff  note that  there will  be a  number of  planning programs  coming
   before  Council in 1996 that will be requesting funding from Contingency

   Reserve.   These  programs  include CityPlan  Neighbourhood Visions  and
   interim  character guidelines  for  RS-1 neighbourhoods.   All  of these
   programs will  extend into 1997, with  the balance of the  funding to be
   added to  the Operating Budget.   These programs are in  addition to the
   normal workload of the Planning Department.

   The Director of Finance  advises that development of the  1996 Operating
   Budget is nearing completion,  with reports scheduled to Council  during
   April.  Staff continue  to work to Council's  instruction that the  1996
   general  purposes tax increase be capped at  1% and that the increase be
   brought as close  to zero as possible.  The  current estimates include a
   Contingency  Reserve provision  that  has taken  into consideration  the
   funding  for the False Creek Flats planning study, should Council choose
   to proceed, and for  others being developed by the  Planning Department.
   However, it  is noted that  the costs go  beyond 1996  and will have  an
   impact on the 1997 general purposes tax increase.

   ENVIRONMENTAL IMPLICATIONS

   The Preliminary Concept Plan is expected to benefit air and soil quality
   through intensification of industry over the  next 20 years.  This would
   provide more  services close  to the  Downtown, minimizing the  distance
   travelled  to  the  services, and  result  in  soil  remediation in  new
   developments.   It may also  improve water quality  and drainage through
   providing water  courses, minimizing erosion, and  preventing toxic run-
   off.

   CityPlan Implications

   Development under the  Preliminary Concept Plan could have  a beneficial
   effect  of  protecting existing  jobs  and increasing  the  diversity of
   industrial and city-serving jobs leading to a stronger, more diversified
   economy.  Safety and security problems will be addressed in the upcoming
   planning  process.   Not  allowing  big-box retail  would  safeguard the
   City's objective of developing and strengthening neighbourhood centres.

   CONCLUSION

   It is recommended that  Council adopt the False Creek  Flats Preliminary
   Concept Plan and approve the program and staffing to finalize this  plan
   and one rezoning application now in hand.

                                     * * *                                                  
                                                                                                               APPENDIX
                                                                                              B

                      CITYSTAFFAND RESOURCESNEEDEDFORFALSE CREEKFLATSPLANNINGAND MAJORREZONINGS

          COSTS                                CONCEPT PLAND    TRILLIUMD      FINNINGE        CNE         TOTALS

     1.   PlannerA (cont. from phase I)            46,500        60,000        53,000        26,500       186,000
     2.   Planning AssistantA                      33,200        40,000        36,400        18,200       126,800
     3.   Planning ClerkA                          12,300        15,000        28,000        14,000        96,600
     4.   Consultants                              10,000        20,000        20,000        15,000        65,000

     5.   Overtime                                  3,000         4,000         4,000         3,000        14,000
     6.   Public ConsultationB                     15,000         7,000        10,000         3,000        35,000
     7.   Planning Furniture/Computers              5,500         5,500         2,700         2,700        16,400
     8.   Civil EngineerA (cont. from phase I)     41,600        53,500        48,200        24,100       167,400

     9.   Engineering Furniture/Computers           5,500         5,500         2,700         2,700        16,400
     10.  SolicitorA                                             34,600        34,600        34,600       103,800
     11.  Law Computer contribution                               1,400         1,400         1,400         4,200
     12.  Park Board Staff/Consultants             12,200         5,000        10,000         3,300        30,500

     13.  Research Assistance                       3,500         1,500         2,500         1,000         8,500
                                                 $188,300      $253,000C     $253,500      $149,500      $844,300

          PHASE ONE COSTS $90,000                                                                        $ 90,000
                                                                                                         $934,300
          FEES                                                 $155,000      $252,000      $146,000      $553,000


     Footnotes:    A. New  or continued staff  positions will be subject  to evaluation by  the General  Manager of
Human
                      Resources - estimates are based upon Departmental judgement of need.
                B. Public consultation  costs include facility rentals,  refreshments, printing,  translation, mail
drops,
                   and postage costs.
                C. If the Concept Plan  is deferred, the Trillium rezoning would require $190,000 from Contingency
Reserve
                   in  1996 and $63,000 will need to be included in 1997  departmental budgets. Staffing would comprise
10
                   months of new staff plus 2 months of existing staff over a 12 month period.
                D. The total cost of $441,300  requires $284,000 for 1996 (funded from  the Contingency Reserve  Fund)
and
                   represents approximately 50% of  the Concept Plan  work and 75% of  the Trillium rezoning work, and 
is
                   recommended for approval now.
                E. Processing  a CN or Finning rezoning while Concept Plan work is underway would each add approximately
3
                   months of resources incrementally.  This could increase depending upon the complexity of the
rezoning.

     Other Notes:  Required rezoning fees can be expected to cover  about 50% of all City costs for planning and
rezonings
                   of the False Creek  Flats.  City costs  include: phase one costs, new and  existing resources
projected
                   above plus existing  staff also engaged in the  work but at a lesser extent.  If Finning and CN do 
not
                   submit  rezonings in the near future, costs attributed to their  eventual rezonings could be higher
due
                   to the inability to share  resources with those allocated for the concept  plan.  This budget  does
not
                   include future potential  rezoning of approximately 3.5 ha (8.5 acres) of City-owned lands east of
Main
                   Street, between Terminal  and Industrial Avenues (which could result in approximately a further
$75,000
                   in fees).