POLICY REPORT
                                URBAN STRUCTURE

                                            Date:  March 27, 1996
                                            Dept. File No.  95029 RJ


   TO:       Vancouver City Council

   FROM:     Director of  Central Area  Planning, in consultation  with the
             Director of City Plans, and the Manager of the Housing Centre

   SUBJECT:  Proposed Rezoning of 940-960 Station Street
             (Trillium Site)


   RECOMMENDATION

        A.   THAT,  consistent  with  the  False  Creek  Flats  Preliminary
             Concept Plan,  the IBI Group, rezoning  applicants for 940-960
             Station  Street,  be  advised  that  the  previously   defined
             Trillium site is primarily suited for low-impact, city-serving
             and  Downtown-related industrial  uses and that  the following
             would also be considered with the primary uses:

             -  retail,  service,  and  entertainment  as  minor  components
                ancillary to the primary uses; and
             -  artists' live/work  studios, consistent  with existing  City
                policies;

        B.   THAT,  in  association  with  the  primary  uses,  Council  is
             prepared to consider up to  150 units of industrial  work/live
             as a pilot project;

        C.   THAT if the site is expanded  to include areas on Main  Street
             or  elsewhere outside areas set aside for industry, a range of
             other uses may be considered in the expansion  area, including
             residential,    commercial,   retail,    service,   commercial
             work/live,  and  other  uses   consistent  with  a   mixed-use
             community;

        D.   THAT a  comprehensive development rezoning  will be considered
             for  the site,  with  a form  of  development which  addresses
             appropriate built  form  and  urban  design  concepts,  street
             pattern,  open space  and  public realm  schemes, and  amenity
             provisions. 

   GENERAL MANAGER'S COMMENTS

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

   -    On March  14, 1995, Council  approved the Industrial  Land Policies
        which support retention of  the False Creek Flats for  mainly city-
        serving industry, transport, and service uses.

   -    On  March 28,  1995, Council  amended the  artist  live/work studio
        policies in industrial zones, limiting  them to rentals in existing
        buildings,  with  a maximum  floor space  ratio  of 1.0,  and time-
        limited permit approval.


   PURPOSE

   This report provides a commentary and  recommended direction for further
   consideration of the Trillium  rezoning application on the basis  of the
   False  Creek Flats  Preliminary Concept  Plan,  outlined in  a companion
   report.  In  particular, it considers  the applicant's initial  proposal
   for  industrial  live/work.   Also,  a  brief  response  is provided  on
   development  ideas  put  forward  more  recently  by  the  applicant  in
   discussions with staff, as summarized in Appendix 'A'.

   If the applicant wishes to proceed in line with the proposed False Creek
   Flats policies, staff suggest using the cooperative planning process for
   major projects  to reframe, develop,  evaluate, and publicly  review the
   application.    Resources  for  this  process  are  recommended  in  the
   companion report on the Preliminary Concept Plan.


   BACKGROUND

   In  June  1995, Council  decided that  review  of the  Trillium rezoning
   should  continue  as the  False Creek  Flats  overview unfolded,  and in
   particular,  the industrial  live/work aspect  of the  Trillium rezoning
   should  be  considered  and  reported  concurrently  with  the  planning
   overview.

   Analysis  of  industrial  live/work  and  work/live  is  included  in  a
   companion report that has assisted in the preparation of the False Creek
   Flats Preliminary Concept Plan and this report on the Trillium rezoning.
   DISCUSSION

   Site Description

   Figure 1.  The Trillium Site


























   The Trillium site is a 6.8 ha (16.8 acre) parcel on the northwest corner
   of the Flats.   It  is mostly vacant,  with the  exception of two  small
   buildings  on  the property  recently purchased  on  Prior Street.   The
   Strathcona  neighbourhood is to the north, separated by food wholesalers
   and Prior Street.  To the west lies the Main Street area that is focused
   on Thornton Park, where the CityGate development is progressing.  To the
   south,  Pacific Central Station has  recently been upgraded  as a multi-
   modal  transportation facility  with passenger  train and  bus services.

   The use of  the new  3.2 ha (7.8  acre) city  park on the  east will  be
   determined by a park planning exercise currently underway in Strathcona.

   Soil  assessment has  been undertaken  and a  remediation plan  has been
   approved by  the Province.   A  12.0 m (40  ft.) right-of-way  along the
   south  of the site  permits access from  Station Street to  the new City
   works yard.Proposed Rezoning

   The IBI Group originally  applied to rezone the  Trillium site from  M-1
   (light  industrial)  to  a  new  industrial   district,  to  permit  760
   industrial  live/work units,  and  430,000 sq.ft.  of light  industrial,
   cultural,  recreational, retail, and  office uses.   The application was
   subsequently revised to a comprehensive development (CD-1) rezoning with
   the  same range  of uses.   Over the  last few  months, the  concept has
   evolved  and the  applicant now  wishes to  make revisions  based on  an
   expanded  site including  properties on Prior  Street and  possibly Main
   Street.   The  new proposal  is described  as a  mixed-use neighbourhood
   which will include industry.  Movie production will be a major component
   along  with  production shops  ancillary  to movie  production  such as:
   workshops,  storage, general  live/work, possibly  industrial work/live,
   entertainment,  some retail,  and possibly  residential on  Main Street.
   The applicant  has  provided some  details of  the concept  in a  letter
   attached as Appendix 'A'. As the revisions have yet to be submitted, and
   the  overall package  has  yet to  be  clearly defined,  staff  can only
   provide a general assessment of recently suggested uses. 

   Industrial Use

   The  Trillium site  is  ideally located  for  a variety  of  low-impact,
   Downtown-related industries  that would  provide a good  transition from
   the  Strathcona   neighbourhood  and   the   developing  Thornton   Park
   neighbourhood  on Main Street, to  the higher impact  industrial uses of
   the Flats.  The site  is large enough to provide for a variety of parcel
   sizes,  catering to both incubator and larger industries.  The proximity
   to Downtown is attractive for high-tech users such as telecommunication,
   printing, and bio-medical  operations, as the site  provides easy access
   for sales,  head office,  or customer  contacts.   The location  is also
   convenient for employees due to its proximity to public transit, as well
   as  surrounding housing  and amenities.   The  existing and  future road
   system will provide good access for supplies and customers.

   Industrial Work/Live Use

   For  many  of the  same reasons  that  support low-impact  and high-tech
   industry,  the  site is  also  suitable  for industrial  work/live  use.
   Industrial  live/work  was  originally  proposed,   but  staff  analysis
   illustrates that the  real need is for  industrial work/live.   The main
   difference  between  the  two,  is  the  assumption  that  work/live  on
   industrial  land can be justified  by the higher  impact processes which
   are not acceptable in  commercial or residential zones and  that similar
   to other industrial uses, the larger workspaces required can be assisted
   by industrial  land values.Industrial work/live is  also primarily 'work
   oriented',   with  special   space   and  infrastructure   requirements.
   Locational  criteria  are  put   forward  in  the  companion  live/work,
   work/live report.  The Trillium site meets all of these  criteria.  As a
   result, staff support  up to 150  units of industrial  work/live on  the
   Trillium  site, noting that this  represents a small  component of their
   overall development.

   The  recommended size  is primarily  based on  the demand  identified of
   about 300  units of industrial work/live  over the next 5  years.  Staff
   felt that any more than 150 units would be too large of a portion of the
   overall  demand.   At the same  time, 150  units is enough  for staff to
   assess the impacts on adjacent industry, industrial land values, and the
   provision  of industrial  jobs.    Even if  the  impacts  are more  than
   anticipated, the modest amount  of units will likely have  little impact

   on the  industrial land base  and the value of  industrial land.     The
   project would also be  of sufficient size so that  the development could
   stand on its  own and provide  a sense of community  in itself.   It may
   also be large  enough for the developer to provide  for cross-subsidy of
   affordable  units, recognizing  that a  large portion  of the  potential
   users have limited incomes.

   The  units should  be located  away from  the rail  uses and  any future
   traffic  corridor to  the  south, in  two  or three  buildings  possibly
   located on a  new east/west local street, linking Station  Street to the
   new park.

   Building and Unit Characteristics

   Staff  analysis  and  focus  group  studies  with potential  users  have
   identified specific  requirements for  industrial work/live  units which
   vary significantly from artist  live/work studios.  Industrial processes
   require  larger work  spaces,  usually 180-250  m›  (600-800 sq.ft.),  a
   portion  of  which  could  be  reserved   for  ancillary  office  space.
   Considering  the  impact  of  industrial processes,  separation  of  the
   residential use  is mandatory.  This  residential space will have  to be
   tied to the work space, and both spaces should be purchased or rented as
   one  unit.   The distribution  of space  in each  combined unit  must be
   approximately  66% work  and 33%  living space, in  order to  ensure the
   primary focus is on 'work' and not 'live'.

   Specific  work/live building  needs include  industrial-sized elevators,
   hallways,  and loading  bays.   In  the  work space  itself,  heavy-duty
   electrical,  ventilation, and  plumbing systems  would be  necessary, as
   well as  floors capable of carrying  industrial loads.   Work spaces and
   living spaces could  also be partially  finished to provide  flexibility
   for adapting  the spaces for specific  work uses, as well  as to promote
   affordability.  The separation of these uses, however, would be required
   before  occupancy.     Common  space  shouldbe   provided  for  meeting,
   recreational,  or shared work space.  Building code amendments to permit
   this use are  currently being  discussed with Permits  and Licenses  and
   would be developed during the detailed process related to the rezoning.

   IBI's Evolving Ideas for the Trillium Site

   The IBI  Group wishes to revise  their rezoning application  to focus on
   movie  production.    In addition  to  studio  space in  at  least three
   buildings, the  complex would  include production workshops  and special
   effects labs, all of which  may be linked to entertainment and  proposed
   commercial live/work components.  Residential  uses may even be included
   on Main Street.  Retail, service, and industrial work/live could also be
   part  of  the   revised  submission.    The  proposal  is  very  much  a
   comprehensive package and  Trillium has advised that a  large commercial
   live/work  component is  necessary to  subsidize the  cost  of providing
   production studios and other industrial uses, which the applicant claims
   cannot afford high rents.

   -    Movie  Production:   In  addition to  studios,  this would  include
        related  industries,   such  as  workshops  for  set  construction,
        storage, studios for special effects,  etc.  All of these uses  can
        be approved  under the existing M-1 as  well as proposed I-2 zoning
        and  are  supported   by  the  Preliminary  Concept  Plan.     Also
        supportable are ancillary retail and offices tied to the production
        use.

   -    Workshops  and  Storage:    Buildings  are  proposed  which  supply
        workshops and storage space to the adjacent communities.  These are
        supportable  under  the  existing  zoning and  by  the  Preliminary
        Concept Plan, providing there is no open storage.

   -    Retail and Service:   Apart from when ancillary to  industry, these

        uses are limited in terms of size and location in industrial zones.
        To the  extent that the  site is expanded  to include a  portion on
        Main  Street, the Preliminary Concept Plan would support retail and
        service at this  location.  It  may also support  such uses on  the
        western  edge  of the  site, in  the context  of the  Thornton Park
        mixed-use neighbourhood.

   -    Entertainment:   Entertainment  use  related to  the production  of
        movies,  for example virtual reality  as a spin-off  from a special
        effects   studio,  may   be  supportable.     Separate  non-related
        entertainment  (such   as  the  movie  theatres   which  have  been
        suggested)  would not be supported by the Preliminary Concept Plan,
        except   within   the   area   included  in   the   Thornton   Park
   Neighbourhood.-  Industrial    Work/Live:         As    noted     above,
                    the  Preliminary  Concept  Plan  supports  this  use in
                    modest proportions.

   -    Residential:   Residential as a separate use on industrial land, is
        not  supported.  This is consistent with Council's direction at the
        outset of the  planning overview.   Residential on  Main Street  is
        permitted under the  existing zoning and would be  considered here,
        if the site is expanded to include Main Street frontage.

   -    Commercial Live/Work:  This  is viewed as a residential  use, which
        is  well provided  for under  the existing  "homecraft" provisions.
        The Preliminary Concept Plan would not support commercial live/work
        as a separate use, except in the area  along Main Street.

   -    Commercial Work/Live:   This use differs  from commercial live/work
        in  permitting  higher impacts  such  as  employees and  customers.
        While staff are in  the process of creating opportunities  for this
        use  in  commercial  and  heritage zones,  a  modest  component  of
        commercial  work/live  may be  appropriate  on  the Trillium  site,
        particularly if  work activities  are related to  on-site industry,
        such  as the proposed movie  production.  Before  any decisions are
        made,  this use would require careful analysis in terms of specific
        impacts, market demand, and rationale for using this site.

   -    Artist Live/Work:  Low-impact artist live/work is not supported, as
        there are plenty  of opportunities in the city  and in the adjacent
        Brewery Creek Area.   High-impact artist live/work  is permitted in
        existing buildings, but only if rental in the industrial zones, and
        is supportable if the enlargement of the site incorporates suitable
        buildings.

   Urban Design

   Urban  design  considerations on  this  site  are  independent from  the
   ultimate  mixture of  uses  but are  critical  because of  the  location
   adjacent  to residential  communities.   A tailored  built form,  public
   realm, and  amenity concept is vital  and can not be  achieved by simply
   applying  district   zoning  schedules  to  the  site.     Overall,  the
   development  should  have  a  denser,  more  urban  scale  than  typical
   warehouse areas given  its proximity  to the Downtown  and the  Thornton
   Park neighbourhood  on  Main Street.    In this  context, the  scale  of
   development   presented  in   the  original   submission  is   generally
   appropriate, with mid-rise buildings  strongly defining local streets in
   the centre of the site and stepping down to Strathcona in the north.  In
   the east, buildings should be lower as they approach the park and be set
   back so as not to intrude on public park use.  Streets should be planted
   with trees and  includegrass boulevards and  other quality public  realm
   treatment, especially  adjacent to  any work/live developments.   Active
   uses  should  be incorporated  at  street  level to  provide  pedestrian
   interest  and  security.    Strong  links should  be  developed  between
   Strathcona and the  new park and False Creek.   Where appropriate, these
   links should incorporate greenways.

   If Main Street frontage is added to the site and a mixed-use concept  is
   proposed,  urban design issues become even more important, as this would
   be a  key area  in the proposed  Thornton Park neighbourhood.   Heritage
   buildings  may be involved and  must be carefully considered, consistent
   with heritage policies.

   Public Amenities

   The developer is expected to provide public amenities and open spaces in
   accordance to the proposed use and increase in intensity of development.
   To the extent that there are residents on the site, amenities would have
   to be provided to serve their  needs.  The types and value of  amenities
   would  be  determined after  an  assessment  of  the  expected,  on-site
   population.

   Living units, even  if tied to work  space, would represent new  housing
   capacity.  A component  of non-market housing would normally  be pursued
   on a large site  like Trillium's if new housing capacity  is created.  A
   decision would have to be made as to whether this would be an affordable
   component on-site or money  to be used elsewhere, for example to upgrade
   or replace the SROs on Main Street.

   Affordable housing  and other  public requirements  will be  explored in
   greater detail as part of the completion of the Concept Plan.  Provision
   of amenities for an increased number of industrial workers also needs to
   be considered.   While this  could be  difficult when dealing  with more
   traditional  industries  which  have  limited  ability  to  pay,  public
   requirements could be  negotiated as part  of a high-amenity  industrial
   park, or as part of the mixed-use package Trillium is now proposing.

   Next Steps

   The rezoning application,  either as  submitted or as  revised, will  be
   further evaluated  concurrent with the development of  the final concept
   plan.  A detailed rezoning report would be prepared as soon as possible,
   assuming that the application is consistent with Council direction.
   CONCLUSION

   In  accordance with the False Creek Flats Preliminary Concept Plan, low-
   impact  industrial use is supported,  which could also  include a modest
   component of industrial work/live.   Other revisions which are currently
   being  proposed by the applicant will be  assessed, as discussed in this
   report and as part of the preparation of the final concept plan. 

   If  the current  submission is not  revised, staff  will proceed  with a
   report to Council which will recommend refusal.

                                     * * *