P3
                                                        POLICY REPORT
                           DEVELOPMENT AND BUILDING

                                           Date: May 15, 1996
                                           Dept. File: 95038-PEM


   TO:       Vancouver City Council

   FROM:     Director of Land Use and Development

   SUBJECT:  Proposed Rezoning of 303 Railway Street


   RECOMMENDATION

        THAT the application  by Robert Leshgold (Architect)  to rezone 303
        Railway  Street (Lot 26, Block 2, D.L.  735, Plan 3421) from M-2 to
        CD-1 to permit artist  'live/work' studios be referred to  a Public
        Hearing, together with:

        (i)     plans received November 10, 1995;
        (ii)    draft  CD-1 By-law  provisions,  generally  as contained  in
                Appendix A;
        (iii)   draft conditions of approval listed in Appendix B; and
        (iv)    the  recommendation  of   the  Director  of  Land  Use   and
                Development that this application be refused.

        FURTHER  THAT  the Director  of  Legal  Services  be instructed  to
        prepare  the  necessary CD-1  By-law  for  consideration at  Public
        Hearing, including:

        (i)     an amendment  to the  Sign By-law  to establish  regulations
                for this CD-1 site in accordance with Schedule B (M-2); and
        (ii)    an amendment to the Noise By-law  to include this CD-1  site
                in the activity zone established in Schedule A.

   GENERAL MANAGER'S COMMENTS

        The General  Manager of  Community Services RECOMMENDS  approval of
        the foregoing.

   COUNCIL POLICY

   Council  policy is reflected first of all  in the existing zoning of the
   site and  surrounding area, M-2  (Heavy Industry), which  permits Artist
   Studios and  associated residential units as  conditional approval uses,
   limited to a floor space ratio of 1.0.

   Land  Use Directions  -  North of  Hastings  Street and  Railway  Street
   Industrial  Areas:    On  September  15,  1994  Council  confirmed   the
   industrial  status  of  these areas  and  removed  their  1990 "Let  Go"
   designation.

   Industrial Lands  Strategy:  On March 14,  1995 Council adopted a policy
   framework to guide future  decisions on industrial land.   The objective
   of the  Strategy is  to "retain most  of the City's  existing industrial
   land  base for  industry and  service businesses  to meet  the needs  of
   port/river   related  industry,   and  city-serving   and  city-oriented
   industries".

   In  one of  the Strategy's  area-specific policies,  the Railway  Street
   industrial area north of Alexander Street was confirmed as an area to be
   retained for industrial use.

   Artist 'Live/Work' Studios:    The  Zoning  and Development  By-law  was
   amended in 1987 to encourage the provision of affordable and appropriate
   artist 'live/work' studios.

   On March 28, 1995  new policies were adopted to encourage  the provision
   of legal, safe, functional and  affordable artist 'live/work' studios in
   industrial  districts.    The  new policies  generally  restrict  artist
   studios  to rentals  in  existing buildings  and  for 'high-impact'  art
   production  that requires an industrial  location (i.e. use  of toxic or
   hazardous materials or  processes, or involving  amplified sound).   The
   floor  space ratio for artist 'live/work' studios remains limited to 1.0
   in most industrial districts.

   On April 18  1996, Council  approved that draft  Zoning and  Development
   By-law and Parking By-law amendments to implement Council's new policies
   for artist 'live/work' studios, be referred to Public Hearing.

   PURPOSE AND SUMMARY

   This report assesses an  application to rezone the  site at 303  Railway
   Street from M-2 to CD-1.

   The application does not meet the prerequisites and criteria set  out in
   the Industrial  Lands Strategy rezoning  policy for releasing  land from
   industrial use.  On this basis the Director of Land  Use and Development
   is not prepared to recommend approval of the application.

   However, as Council requested  that the application be processed  in the
   usual manner, and because many interested parties would wish to speak on
   the application,  both for  and against,  the Director of  Land Use  and
   Development recommends  that the  application  be referred  to a  Public
   Hearing and provides draft  CD-1 By-law provisions and draft  conditions
   of approval for this purpose.


























   BACKGROUND

   Proposed  Development:   Interior  and  minor  exterior alterations  are
   proposed to an  existing five-storey  cold storage plant  to provide  40
   long-term rental artist  studios with associated  residential units  and
   some separate common workshop  areas.  The first floor, which  is partly
   below  grade, would be altered to  provide parking (22 spaces), loading,
   storage and workshop areas.  (NOTE: Plans are provided in Appendix E and
   additional information in Appendix F.)

   Proposed alterations on  the first  floor would reduce  the floor  space
   ratio (FSR) of the existing building from 4.44 to 4.0.  This FSR is four
   times the maximum which  is permitted for artist 'live/work'  studios in
   the M-2 district.

   History of the Application:   (See CHRONOLOGY on page  2 of Appendix C.)
   In February, 1995 a development application was made to alter and add to
   the existing building  to provide 56  rental artist 'live/work'  studios
   and 21  parking spaces.  Staff  recommended that it be  processed like a
   previous  application at 1701 Powell  Street, i.e., that  it be approved
   subject  to the  applicant  obtaining a  relaxation  from the  Board  of
   Variance for  an increase  in  FSR from  1.0 to  5.0.   In June  Council
   approved the staff  recommendation, but  the Board of  Variance did  not
   subsequently  grant  the  necessary  relaxation,  and   the  development
   application was refused.

   The  rezoning application  was submitted  on November  10, 1995.   Staff
   recommended it  be refused because the  site did not satisfy  any of the
   circumstances  set out in the Industrial Lands Strategy in which Council
   would consider rezoning industrial  land.  On December 14,  1995 Council
   approved that  the application be processed in the usual manner.  (NOTE:
   Appendix C provides  more complete background  information, including  a
   description  of the  surrounding  area and  a  history of  the  previous
   development application.)

   DISCUSSION

   The  change  of  use proposed  in  this  rezoning  application would  be
   acceptable  under the existing zoning and would generally conform to new
   artist 'live/work' studio  policies, except for  the proposed  four-fold
   increase in the  maximum permitted FSR.  In  this one important respect,
   the application is  not entirely  consistent with  the Industrial  Lands
   Strategy  and  does not  conform to  all  new artist  'live/work' studio
   regulations and guidelines.

   1.  Industrial Rezoning Prerequisites

   The application does  not satisfy any of the circumstances listed in the
   Industrial  Lands  Strategy  which  may  warrant  the  redevelopment  of
   industrial land to other uses:

   (a)  the application is not based upon CityPlan or  other City-initiated
        planning process;
   (b)  the site is not located in a "let go" area;
   (c)  the site is not  located in an area designated  as highway-oriented
        Retail/Industrial  where it  should be  consistent with  the retail
        uses that would be permitted there; and
   (d)  the  site is  not  located within  the  False Creek  Flats  where a
        rezoning  decision  would  be  made   within  the  context  of  the
        City-initiated planning study.

   On this basis, the Director of Land Use and Development recommended in a
   Policy Report dated November 29, 1995 (on file), that the application be
   refused.  The Industrial Lands Strategy has not been amended since then,
   and therefore  the  rezoning application,  which  has not  been  revised
   either, remains inconsistent with the Strategy's objective to retain the
   city's existing industrial land base for industry.

   2. Industrial Rezoning Criteria

   The  Industrial  Lands  Strategy  requires  that  three  conditions   be
   considered before land is released from industrial use:

   (a)  Compatibility    with    Industrial    Activity:   (The    proposed
        non-industrial  use should  not affect  the operations  of adjacent
        existing and potential  future industrial activity  and should  not
        increase the value of surrounding land.)
   (b)  Land  Use  Suitability:  (The  proposed non-industrial  use  should
        comply  with relevant planning policies such  as Central Area Plan,
        Artist "Live/Work" Studio Policy, etc.)

   (c)  Environmental Impacts: (The proposed development should comply with
        relevant   legislation   concerning   environmental   impacts   and
        mitigation measures.)

   The application was assessed  in terms of these criteria,  as summarized
   in the table below.  (A more detailed assessment is provided in Appendix
   C.)



        Rezoning            Detailed Conditions
         Criteria            or Criteria                Criteria Met (š)

         COMPATIBILITY       no impact on adjacent      adjacent industry may
         WITH                existing and potential     impact Studio
         INDUSTRIAL          future industry            livability, but covenant
         ACTIVITY                                       on title would require
                                                        prospective tenants be
                                                        warned about primacy of
                                                        industrial activity

                             no increase in 
                             surrounding industrial               š
                             land values
                             other                      parking relaxation is
                                                        requested in an area
                                                        with high on-street
                                                        parking demand

         LAND USE            maximum FSR of 1.0,        proposed FSR 4.0,
         SUITABILITY         10% bonus FSR for          without a Housing
                             affordable studios in      Agreement
         (compliance with    DD and IC-3 (secured by
          relevant           Housing Agreement)
          policies, i.e.,  
                             existing building                    š          Artist           
          'Live/Work'        limited to rental tenure             š 
          Studio Policies)
                             limited to high-impact
                             art production, separate             š
                             workshops provided

                             minimum size of 47 m2,               š
                             and adequate storage area
                             time-limited               no time limitation       
                             development permit                    

         ENVIRONMENTAL       compliance with Air                  š
         IMPACT              Quality Management By-law
         MITIGATION          (GVRD), Health By-law,
                             and Noise By-law

   The application  seems  consistent  with  most  of  the  detailed
   criteria  and  conditions.    In  overall  terms,  however,   the
   requested  increase  in  FSR  conflicts with  two  of  the  three
   industrial rezoning criteria:

   -    the compatibility of the proposed  artist 'live/work' studio
        use  with  surrounding   industry  could  be   significantly
        decreased by the  proposed FSR of  4.0, which is  four times
        the amount of artist 'live/work' studio space  and number of
        artists as could be permitted under the existing zoning; and

   -    the ability of  the site to  accommodate artist  'live/work'
        studio use could be compromised by the proposed FSR  of 4.0,
        which is four times the amount of artist  'live/work' studio
        space and  number of artists as could  be considered on this
        site under new artist studio regulations and guidelines.

   It cannot be  concluded from the  foregoing review that  the site
   and  its existing  five-storey building  are suitable  for artist
   'live/work'  studio use  as  set out  under  new regulations  and
   guidelines.  However, the proposed  rezoning appears to meet four
   of  the  six  requirements: it  proposes  rental,  Class B  (High
   Impact), functional studios in an existing building.

   CONCLUSION

   The application does not meet the prerequisites  and criteria set
   out  in  the  Industrial  Lands  Strategy  rezoning  policy   for
   releasing land from industrial use.  The proposed change  of use,
   in and of itself, may be permitted under the existing  zoning and
   is consistent with  most proposed new  Artist 'Live/Work'  Studio
   regulations and  guidelines.  However, the  four-fold increase in
   the  maximum permitted FSR  which is requested  is not consistent
   with industrial and  artist 'live/work' studio policies.  On this
   basis the Director of Land Use and Development is not prepared to
   recommend approval of the rezoning application.

   Council  did approve  that this  application be processed  in the
   usual manner.  The previous Policy Report on this application had
   noted  that  the  history  of  the   proposal  may  represent  an
   extenuating  circumstance  which  might  justifiably  exempt  the
   rezoning  application from  the rezoning  policy  set out  in the
   Industrial  Lands  Strategy.    Minutes  of   subsequent  Council
   Committee discussion  report that "the majority  (of Councillors)
   felt the project predates adoption of the referenced policies and
   it would be  unfair not to  permit it to  be processed.  It  will
   still have to go to Public Hearing, and whether or not to approve
   it, based upon existing policies and input received at the Public
   Hearing, is a decision still to be made".

   As Council has requested that the application be processed in the
   usual  manner, and because many  interested parties would wish to
   speak  on  the   application,  the  Director  of   Land  Use  and
   Development recommends that the application be referred direct to
   a Public Hearing.  Draft CD-1 By-law provisions (Appendix  A) and
   draft conditions  of approval (Appendix B) have been prepared for
   this   purpose,  but   not  a   recommendation  to   approve  the
   application.

                                 * * *
                                                          APPENDIX A
                                                         Page 1 of 2

                      DRAFT CD-1 BY-LAW PROVISIONS
                           303 Railway Street   USES

      Artist Studio - Class B;
      Residential Unit associated with  and forming an integral part
      of an Artist Studio - Class B; and
      Accessary Uses customarily ancillary to the foregoing.


   FLOOR SPACE RATIO

      The  maximum floor  space  ratio will  be  4.0, based  on  the
      calculation  provisions of  the  M-2  District  Schedule,  and
      excluding storage space provided below grade and not exceeding
      20  m2 for  each  artist studio,  and  amenity areas  such  as
      meeting room, laundry area, and recreation facility  accessory
      to residential use.

      (Note:  Separate common  workshop areas, including music room,
      kiln  room,  wood shop,  metal  shop, dark  room,  or painting
      studio, are  considered to be  ancillary to the  principal use
      and  will be included  in the FSR  calculation unless provided
      below grade.)


   BUILDING HEIGHT

      The height  of a building will not exceed 20.2 m (66 ft.) from
      the base surface.


   OFF-STREET PARKING, LOADING AND BICYCLE SPACES

   (a)  As  per Parking By-law (a  minimum of one  parking space per
        studio),  except that  the number of  parking spaces  may be
        relaxed for the renovation  of an existing building, but  in
        no case  is the number of parking spaces to be less that 0.5
        per studio.  An  additional two visitor parking  spaces will
        be  required over and above this  basic requirement.  (Note:
        the total number of  spaces required would not be  less than
        0.55 spaces per studio.)

                                   OR

   (b)  As per Parking By-law, except that:

      (i)    a minimum of one space for every studio of 75 m2 or
             less of gross floor area, 1.3 spaces for every studio
             over 75 m2 of gross floor area and one additional space
             per 12 studios on sites with 12 or more studios; and
                                                          APPENDIX A
                                                         Page 2 of 2

      (ii)   the  number of  parking spaces  may be relaxed  for the
             renovation  of   an  existing  building,  and  for  the
             provision  of  rental studios,  but in  no case  is the
             number  of parking  spaces  to be  less  than 0.55  per
             studio.   (Note:  For the  purposes of  determining the
             number of  spaces to be relaxed,  the lawfully existing
             non-conformity with respect to parking requirements for
             the  existing  Storage Warehouse  is  deemed  to be  27
             spaces.)  Consideration of an additional relaxation for
             long-term  rental studios  will require  evidence about
             rates of vehicle ownership  for studio renters compared
             to strata owners.

   ACOUSTICS

      The City's acoustical criteria  shall apply, and an Acoustical
      Consultant's report  shall  be required  which assesses  noise
      impacts on the site  and recommends noise mitigating measures.
      (Note: An amendment to the Noise By-law will include this CD-1
      site in the activity zone established in Schedule A.)



                               * * * * *
                                                          APPENDIX B
                                                         Page 1 of 2

                PROPOSED CONDITIONS OF REZONING APPROVAL
                           303 Railway Street

   (a)  THAT the proposed form of development be approved by Council
        in  principle, generally  as  prepared  by Robert  Leshgold,
        Architect, and stamped  "Received City Planning  Department,
        November 10,  1995", provided that the  Director of Planning
        may allow minor alterations to this form of development when
        approving the detailed scheme  of development as outlined in
        (b) below.

   (b)  THAT,  prior  to  approval   by  Council  of  the   form  of
        development,  the  applicant  shall  obtain  approval  of  a
        development  application by  the Director  of Planning,  who
        shall have particular regard to the following:

        (i) further design development to improve  the functionality
            of the artist  'live/work' studios, including  provision
            of the following: 

            1) additional  common  workshop   areas  separate   from
               residential  units, such  as music  room, woodworking
               shop,  metal  shop,  and  spray-painting  studio, and
               including  sound-proofing  and  ventilation of  these
               workshops as may be appropriate;

            2) extra-wide  doors,  over-size elevator,  and corridor
               dimensions and  configurations which enable  the easy
               movement  of  large or  heavy  works  of art  or  art
               materials between the loading bay, storage space, and
               studios;

            3) adequate ventilation, plumbing and electrical service
               in   very  studio   to  facilitate   high-impact  art
               production;

            4) additional storage space to ensure adequate space for
               the storage of art materials and works of art;

            5) elevator access to the sub-basement storage space, or
               provision  of  some  storage  space  on  the basement
               floor; and

            6) sundeck  and/or gardening  amenity areas  on roof-top
               for residents.

      (ii)  further design development to incorporate  principles of
            crime prevention through  environmental design  (CPTED),
            including but not limited to:

            1) providing a comprehensive security plan;
                                                          APPENDIX B
                                                         Page 2 of 2


            2) reducing opportunities for graffiti on  exposed blank
               walls;

            3) ensuring  that  all  areas  are  well-lit  to  reduce
               mischief opportunities and fear; and

            4) white-painting  parking  area  walls,   ceilings  and
               utility pipes to reduce fear.

   (c)  THAT, prior to enactment of  the CD-1 By-law, the registered
        owner shall, at no cost to the City:

        (i)   execute and  register against  property title a  legal
              agreement, to  the  satisfaction  of the  Director  of
              Legal  Services,  providing that  present  and  future
              property owners  will forewarn  all prospective studio
              occupants  that the  building is  located  in a  heavy
              industrial    district    (M-2)    where    industrial
              activities, including  rail and  port operations, have
              primacy of  use, and therefore  should not be  subject
              to    complaints,   directly    or   indirectly,   for
              environmental impacts  which conform  to the  relevant
              regulations;

        (ii)  execute and  register against property  title a  legal
              agreement,  to  the  satisfaction of  the  Director of
              Legal Services,  providing that  the 40 artist  'live/
              work' studios on  the site will not be  strata-titled,
              thereby ensuring that  the studios will remain  rental
              over the long term;

        (iii) make arrangements to the satisfaction of the General
              Manager  of Engineering Services and Director of Legal
              Services,  for  the  provision  of  curb,  gutter  and
              sidewalk  on  the  east  side  of  Gore  Avenue,  from
              Railway  Street  to   the  lane  north,  and   asphalt
              pavement for  half the width  of Gore Avenue  abutting
              the site from Railway Street to the lane north;

        (iv)  make arrangements  for the  provision of  street trees
              adjacent the site; and

        (v)   make   arrangements  for  the  undergrounding  of  all
              utilities from the closest  existing suitable  service
              point.



                               * * * * *
              SITE, SURROUNDING AREA, PROPOSED DEVELOPMENT
                         AND NON-MAJOR ELEMENTS

   Site  and  Surrounding  Area:  The   site  is  developed  with  a
   five-storey Cold  Storage Plant which provides  no parking spaces
   and  substandard loading  spaces (part  of the  first floor  is a
   basement).   Previously occupied  by Versacold Storage  Ltd., the
   building is now vacant.  The  site and surrounding area are zoned
   M-2 (Heavy Industry).  

   The  Downtown-Eastside/Oppenheimer  District  (DEOD) Sub-Area  4,
   south  of  Alexander  Street,  permits  light   industrial  uses,
   residential uses,  some commercial  uses, and  artist 'live/work'
   studios.    The Central  Waterfront  District  (CWD) Sub-Area  4,
   encompassing  CP and  Port  lands west  of  Gore Avenue,  permits
   continuing port and  rail uses, new  marine and commercial  uses,
   and  some commercial  uses on  CP lands  after relocation  of the
   railyard.   The  Central Waterfront  Port Lands  Policy Statement
   approved by City Council in February 1994, and also the Vancouver
   Port Corporation, allows commercial  and residential uses on Port
   lands east of Canada Place to Main Street (Policies 2.1 and 5.1).

   Chronology:  The table  on the following page  provides a summary
   of pertinent events preceding this  rezoning application.  A more
   detailed description of some of these events follows.

   Railway Street Industrial Area:  The  small M-2  industrial areas
   north of Alexander Street and north of Hastings, but south of the
   CP rail line and Port lands, were designated as "Let Go" areas in
   1991, but a Planning study subsequently determined that they were
   unsuitable  for converting to residential use.  In a report dated
   June  30, 1994 (on file),  staff reported on  land use directions
   for these areas.

   The 12.76-acre area  north of  Alexander Street was  found to  be
   primarily in industrial use (76.8 percent).  While the small lots
   and  narrow streets in the  area hamper the  manoeuvring of large
   trucks, the area remains viable for industry and acts as a buffer
   between  24-hour rail  and  port operations  and the  residential
   development south of  Alexander Street.  The area was found to be
   unsuitable  for residential  use due  to several  activities with
   noxious impacts:

   -    noise from industrial, port, and rail operations,
   -    odours from food processing operations and fumes from trucks
        and rail equipment,
   -    the storage and use of hazardous substances including paints
        and flammable gases,
   -    the rail transportation of hazardous materials (estimated to
        range between 20-25 movements daily), and
   -    visual impacts of open storage and port and rail activities.


                         INDUSTRIAL         ARTIST LIVE/WORK    303
     DATE                LANDS              STUDIO POLICIES     RAILWAY STREET
     Feb. 22, 1994       Council adopts
                         Central
                         Water-front Port
                         Lands Policy

     Sept. 15, 1994      Council approves
                         Railway St. area
                         be retained for
                         industry

     Dec. 15, 1994                          Council approves
                                            that staff report
                                            all A.L/W.S.
                                            applications for
                                            Council advice
     Feb. 21, 1995                                              development
                                                                application
                                                                submitted

     Mar. 14, 1995       Council adopts
                         Industrial Lands
                         Strategy

     Mar. 28, 1995                          Council adopts
                                            new policies
     June 1, 1995                                               Council approves
                                                                processing of
                                                                development
                                                                application

     June 28, 1995                                              Board of
                                                                Variance appeal
                                                                for FSR
                                                                relaxa-tion
                                                                disallowed

     Aug. 23, 1995                                              2nd Board of
                                                                Variance appeal
                                                                for FSR
                                                                relaxa-tion
                                                                disallowed
     Nov. 10, 1995                                              rezoning
                                                                application
                                                                submitted

     Dec. 14, 1995                                              Council approves
                                                                processing of
                                                                rezoning
                                                                application

     April 18, 1996                         Councils refers
                                            proposed By-law
                                            amendments to
                                            Public Hearing


   High  land costs,  lack of  residential amenities,  and difficult
   social  conditions   were  also  observed.     The  economics  of
   residential  development were  investigated  by  the Housing  and
   Properties  Department and found to be unfavourable.  Due in part
   to such  conditions, little interest was  expressed in developing
   residential uses in the area.

   On  September  15,  1994,   Council  Committee  on  Planning  and
   Environment considered this report and approved that the "let go"
   designation be removed from the Hastings and Railway Street areas
   and that any  future land use review be guided  by the Industrial
   Land  Strategy once it is  approved.  Although  this retained the
   area for industrial use,  artist 'live/work' studios continued to
   be a permitted use in the M-2 district.

   History of the Previous Development Application:   An application
   (DE217589)   was  submitted   on  February   21,  1995   to  make
   interior/exterior  alterations  to  and  change  the  use  of  an
   existing  Cold   Storage  Plant  to  provide   56  rental  Artist
   'Live/Work'  Studios.   The  application proposed  a floor  space
   ratio (FSR) of 5.26 whereas M-2 regulations limit FSR to 1.00 for
   non-industrial uses.

   Staff sought  Council's advice  on  the application  in a  report
   dated May  19, 1995  (on file).   Support was  expressed for  the
   proposed  provision  of  affordable  rental   artist  'live/work'
   studios in an obsolete industrial building.   It recommended that
   the application be approved with an  FSR of 5.0 provided that the
   applicant  can and  does obtain  a relaxation  from the  Board of   Variance for FSR exceeding 1.0, i.e. that it be processed  in the
   same  manner as  a  previous application  at  1701 Powell  Street
   approved in  February, 1994.   Although the  application did  not
   fully  conform to  new artist  'live/work' studios  policies, the
   report  noted  that it  was submitted  prior  to adoption  of the
   revised   policies  and  that   future  development  applications
   proposing  an FSR  exceeding 1.0  for artist  'live/work' studios
   would not be supported due to the new Council policies.

   On  June  1, 1995  Council's Standing  Committee on  Planning and
   Environment approved the  staff recommendation  that DE217589  be
   processed  similarly to  a  previous application  at 1701  Powell
   Street.  Council  also confirmed  that it did  not favour  future
   artist 'live/work' studio developments exceeding an FSR of 1.0.

   The applicant's subsequent  appeal to the  Board of Variance  for
   the required  FSR relaxation was  heard on June 28,  1995 and not
   allowed.     On  August  23,  a  second  appeal,  for  a  revised
   application  proposing fewer  studios,  additional  parking,  and
   reduced  floor area, was also disallowed.  Failing to satisfy the
   development approval conditions, the development  application was
   therefore refused, on September 15, 1995.

   History of the Rezoning Application:    The rezoning  application
   was submitted on November 30, 1995 to rezone the site from M-2 to
   CD-1  to  provide  40 rental  Artist  'Live/Work'  Studios.   The
   application was similar to  the development application which was
   revised on July 20, 1995 in response to staff concern about units
   facing the eastern interior property line.

   Pursuant to the rezoning policy in the Industrial Lands Strategy,
   staff sought Council's advice in a report dated November 29, 1995
   (on  file).   The report  described the  history of  the previous
   development application which had  been supported by the Director
   of  Land  Use  and Development  and  City  Council,  but it  also
   concluded  that the site did not satisfy any of the circumstances
   required by the Industrial Lands Strategy before Council would be
   prepared  to consider  rezoning  it.   Because rezoning  would be
   contrary  to industrial  policies and  had  no basis  for further
   assessment, staff recommended  that it be  refused.  On  December
   14,  1995,   Council   Committee  approved   that  the   rezoning
   application be processed in the usual manner.

   Industrial Lands Strategy (Conditions to be Considered before
   Land is Rezoned for Non-Industrial Uses):

   In  circumstances  where  the  rezoning  of  industrial  land  is
   contemplated,  the Industrial Lands  Strategy requires that three
   conditions first be considered:

   (a)  Compatibility  with  Industrial   Activity:  (The   proposed
   non-industrial  use  and   development  should  not   affect  the
   operations of adjacent  existing and potential future  industrial
   activity  in  the  area and  should  not  increase  the value  of
   surrounding industrial land.)

   Artist  'live/work' studios are not likely to directly affect the
   operations of adjacent  industry.  On the contrary, the potential
   impacts  and  hazards  of   some  art  production  processes  and
   materials, e.g., noise and flammable liquids, are most compatible
   with  industry  and,  for  this  reason,  artist  studios  are  a
   conditional approval use in commercial and  industrial districts.
   Nevertheless, there  is risk of incompatibility  between proposed
   artist studio use and  surrounding industry.  This risk  would be
   significantly increased by the proposed FSR of 4.0, which is four
   times as much  artist 'live/work'  space and four  times as  many
   occupants as could be permitted under the existing zoning.

   Staff  have identified  and reviewed  three potential  impacts of
   this proposed rezoning: 

   (1)  Artist 'live/work'  studios could be affected  by the noise,
        odours,  and  other  impacts   of  abutting  rail  and  port
        activities.  These impacts on livability could cause  studio
        occupants  to   complain  about  and  seek  restrictions  on
        industry.

        The  application proposes  sound attenuation  techniques, as
        recommended by an acoustic consultant, to mitigate potential
        noise  from  adjoining  port   and  rail  operations.    The
        applicant also  states  that an  environmental  consultant's
        study  of  potential  odours  in  the  area  concluded  that
        occupants are unlikely to be impacted, except in  very rare,
        worst-case conditions.  Finally,  the applicant advises that
        rental tenure will facilitate the forewarning of prospective
        occupants, and the relocation of affected tenants.

   (2)  Approval of an increased  FSR for artist 'live/work' studios
        could  be perceived  as  a precedent  and thereby  stimulate
        speculative increases in land values surrounding the site.  

        The  Manager of Real Estate Services  has confirmed that the
        price paid for the  site is similar to prevailing  values in
        the  area, and  that  a 'pro forma'  financial analysis  has
        indicated  that  renting the  studios  over  the long  term,
        rather than  selling them as strata  units, reduces revenues
        and  profit  so  much  as  to  make  the  project marginally
        feasible under current market  conditions.  The Manager also
        confirmed that this housing benefit exceeds the market value
        of increased FSR.   The Manager concluded that  there should
        thus be  no upward pressures  on industrial  land values  in
        this area directly caused by this project.

   (3)  Inadequate parking provision  would mean increased on-street
        parking demand, and  this would  have impact in  an area  of
        older  industrial buildings  which  do not  provide adequate
        parking.

        The  previous development  application,  which  proposed  56
        studios,  sought a  relaxation  to provide  only 21  parking
        spaces (0.375 spaces per  studio).  The rezoning application
        proposes  22 parking spaces for  40 studios (0.55 spaces per
        studio).    This  is  a considerable  improvement  over  the
        previous  proposal   but  a   relaxation  continues   to  be
        requested.  (See additional discussion in Appendix D.)

   Based on the  foregoing, staff cannot conclude  that the proposed
   rezoning  would have no impact  on adjacent industry.   Impact on
   industrial land  values may be  unlikely, given the  economics of
   long-term rental  investment and the  considerable uncertainty of
   obtaining a rezoning of another similar site in future.  However,
   on-street  parking demand  is  a potential  negative impact  (see
   additional discussion below), as are  potential artist complaints
   about surrounding industrial activity.

   Should  Council wish  to consider  approval of  this application,
   staff recommend that the City's acoustical criteria would have to
   be  met as a condition  of development approval  (see CD-1 By-law
   provisions  listed in Appendix A).  Staff likewise recommend that
   all prospective studio occupants  be forewarned that the building
   is located  in an M-2  industrial district where  heavy industry,
   including  rail  and  port  operations, has  primacy  of  use and
   therefore  should  not  be  subject to  complaints,  directly  or
   indirectly,  for  environmental  impacts  which  conform  to  the
   relevant  regulations  [see  condition of  rezoning  approval  in
   Appendix B (c)(ii)].

   (b)  Land Use Suitability: (The  proposed non-industrial use  and
   development should comply with relevant planning policies such as
   Central Area Plan, Artist 'Live/Work' Studio Policy, etc.)

   The site  and its existing five-storey building  can be converted
   to artist 'live/work' studio use, as there are no soil mitigation
   measures required,  and building code upgrading  can be achieved.
   However,  the  suitability of  the  site  for artist  'live/work'
   studio use could be compromised by the proposed FSR of 4.0, which
   is four  times the amount  of space  and the number  of occupants
   which  could be considered on  the site under  either existing or
   new regulations  and guidelines.   Relative to these  policies to
   encourage the provision of legal, safe, functional and affordable
   artist 'live/work' studios,  staff have  identified and  reviewed
   six  elements of  the proposal  to assess  the site's  ability to
   accommodate artist 'live/work' studio use: 

   (1)  New policies continue to limit artist 'live/work' studios to
        a maximum of FSR  of 1.0, but they also  provide for density
        bonuses in  the  DD  and IC-3  Districts  to  encourage  the
        provision of artist 'live/work' studios  that are affordable
        for low-income artists.  (NOTE: The bonuses would not exceed
        a 10 percent increase in maximum floor space ratio, and they
        would  be secured  through  a  Housing Agreement  authorized
        under Section 565.2 of the Vancouver Charter.)

        The  application does  not propose low-cost  artist studios,
        i.e., studios rented at less than market rates.  However, it
        intends the proposed studios  to be relatively affordable --
        rented at a monthly rate of just over one dollar ($1.10) per
        square  foot (gross).   (Note:  Housing Centre  staff advise
        that a  monthly rent of $0.75  to $1.00 per square  foot, in
        studios  ranging  in  size from  500  to  1,000  sq. ft., is
        affordable for most artists.)

   (2)  New policies limit artist studios to existing buildings.

        The application proposes to upgrade and renovate an obsolete
        industrial  building   to  provide  40   artist  "live/work'
        studios.

   (3)  New  policies  limit artist  'live/work'  studios  to rental
        tenure, with no strata-titling allowed.

        The  application proposes  that  the tenure  of the  studios
        would be rental for  the life of  the building.  This  would
        increase the stock of rental studios in the city from 149 to
        189,  or 27 percent.  (Note: Rental studios comprise only 21
        percent of the 713 studios constructed or under construction
        as  of   March,  1995.)    A  legal   agreement  to  prevent
        strata-titling, registered against  title, would ensure that
        the  studios  remain rental  over the  long  term.   This is
        recommended  as  a  condition  of  rezoning  approval should
        Council wish  to consider  approval of the  application [see
        Appendix B (c)(i)].

   (4)  New   policies   limit   artist   'live/work'   studios   to
        "high-impact" art production, i.e., involving electronically
        amplified sound, toxic or  hazardous materials, or processes
        such as welding, woodworking, spray painting, silk screening
        and fired ceramics (referred to as Artist Studio - Class B).

        As with the  previous development  application, the  studios
        would  be constructed  to meet  the  requirements of  the F2
        (medium hazard industrial  occupancy) classification in  the
        Building By-law.

        Common workshop areas, separate  from living areas, are also
        proposed so that  activities using toxic/hazardous materials
        or  having other  objectionable  impacts can  be pursued  in
        separate space designed to  mitigate the impact of hazardous
        production  processes  (i.e. ventilated  and sound-proofed).
        About 338.2 m2 (3,640 sq. ft.), 7.7 percent of the net floor
        area, is proposed for  this purpose and will include  a kiln
        room, music rehearsal studio, and dark room.

        Should   Council   wish  to   consider   approval   of  this
        application, staff  recommend further design  development to
        improve  the functionality of  the artist studios, including
        the provision  of additional common workshop  areas and that
        such areas  be sound-proofed and ventilated  [see Appendix B
        (b)(i)].

   (5)  New policies  specify a minimum  and maximum floor  area for
        artist 'live/work' studios, 47 m2  (506 sq. ft.) and  500 m2
        (5,382 sq. ft.) respectively.

        The floor areas of  the proposed artist studios would  be at
        the  low   end  of  this  spectrum,   ranging  from  48.3 m2
        (520 sq. ft.) to 105.9 m2  (1,140 sq. ft.), with  an average
        size of 78.5 m2 (845 sq. ft.).  Separate storage space would
        provide  about  4.8 m2  (52  sq. ft.) per  studio,  about 30
        percent more than the 3.7 m2 (40 sq. ft.) per dwelling which
        is encouraged in multiple dwelling districts.

        Should Council wish to consider approval of the application,
        staff recommend some  additional features to  improve studio
        functionality, to be provided at the development application
        stage, including: extra-wide  doors, over-size elevator, and
        corridor dimensions to enable the movement of large or heavy
        art  and  art materials  between  the  loading bay,  storage
        space,  and  studios;  adequate  ventilation,  plumbing  and
        electrical  services in  every  studio  to facilitate  high-
        impact art  production;  and  additional  storage  space  to
        ensure adequate space for  the storage of art materials  and
        completed works of art.  [See Appendix B (b)(i)].

   (6)  New policies provide that development permits may be limited
        in  time for the use  and occupancy of  artist studios where
        the scale of  proposed development (12  studios or more)  or
        increased parking may impact on the viability of surrounding
        industrial activities.  Time-limited permits  will assist in
        By-law  enforcement and  ensure that  the use  of industrial
        land  is   limited  to  artist  studios   which  require  an
        industrial location.  Surrounding landowners  and businesses
        would  be consulted, as  well as  the advice  of a  panel of
        artists,  before approving or renewing permits.   It is also
        intended that  all artist  studios will be  inspected on  an
        annual basis.  

        A time-limited development permit is not contemplated in the
        present rezoning application.  The economics of the proposed
        building upgrade and conversion, and long-term investment in
        a  rental-only   building,  require  a  much,   much  longer
        amortization period than  the one, two  or five years  which
        might otherwise limit approval of use and occupancy.

   It  cannot be concluded from  the foregoing review  that the site
   and  its existing  five-storey building  are suitable  for artist
   'live/work' studio  use  as set  out  under new  regulations  and
   guidelines.  However, the proposed rezoning appears to meet  four
   of  the  six  requirements: it  proposes  rental,  Class  B (High
   Impact), functional studios in an existing building.

   (c)  Environmental  Impacts:  (The  proposed  development  should
   comply with relevant legislation concerning environmental impacts
   and mitigation measures.)

   The  proposed development  is  expected to  comply with  relevant
   legislation  concerning  environmental  impacts   and  mitigation
   measures, such as the  Noise By-law, Health By-law, and  GVRD Air
   Quality Management By-law.

   COMMENTS FROM REVIEWING AGENCIES, THE PUBLIC AND THE APPLICANT


   Comments  of  the General  Manager of  Engineering Services:  The
   General Manager of Engineering Services has no  objections to the
   proposed rezoning  provided that the applicant  complies with the
   draft rezoning approval conditions (iii) to (v) listed in section
   (b) of Appendix  B and  the parking requirement  listed in  draft
   By-law provisions (Appendix A).

   Engineering  staff  have  advised  that the  proposed  number  of
   parking spaces  (22) is  satisfactory.   They recommend that  the
   present Parking  By-law requirement continue to  apply (a minimum
   of one  parking space per studio),  but they also  confirm that a
   relaxation  be  considered  since  the  application  proposes  to
   upgrade and renovate an  existing, parking-deficient building, so
   long as a minimum of  0.5 parking spaces per studio be  provided.
   In addition,  in response  to concerns about  increased on-street
   parking   demand   in   an   area  which   has   several   older,
   parking-deficient  buildings,  they  recommend  that  two parking
   spaces for visitors  also be  provided.  Should  Council wish  to
   consider   approval   of   the   application,   the   recommended
   requirements are  included in the draft  By-law provisions listed
   in Appendix A.

   Planning   staff   note   that  for   the   previous  development
   application, which  proposed 56  studios, staff were  prepared to
   approve  a   relaxation  to   provide  only  21   parking  spaces
   (0.375 spaces per studio).   The rezoning application proposes 22
   parking  spaces for 40 studios (0.55 spaces per studio), which is
   a considerable improvement over the previous proposal.

   The  new  artist  'live/work' studio  policies  include increased
   parking  requirements.    The  draft  Parking  By-law  amendments
   recently referred  to Public  Hearing specify  "a minimum  of one
   space for  every studio of 75 m2 or less of gross floor area, 1.3
   spaces for  every studio over 75  m2 of gross floor  area and one
   additional  space per  12  studios  on  sites  with  12  or  more
   studios".    These standards  would increase  from  40 to  52 the
   number  of  parking   spaces  required  on  the   site  prior  to
   consideration of any parking relaxations.

   In  the context of the  Industrial Lands Strategy  which seeks to
   retain land  for industry, the  impact of non-industrial  uses in   industrial districts  should be minimized,  including impacts  on
   access, circulation and on-street parking of local truck traffic.
   Accordingly, while the  application proposes more  parking spaces
   per  studio than  were  previously approved  in principle,  under
   regulations and  guidelines then  in effect,  it might  be argued
   that  it is  now  more  appropriate  to  apply  the  new  parking
   requirements,  given the  many other  old warehouse  buildings in
   this area which do not supply adequate parking.

   However,  the  new Artist  Studio  Guidelines  also provide  that
   "reduced parking  and loading  requirements may be  considered in
   the case of  a renovation  of an existing  building which  cannot
   accommodate all the  required parking or  loading spaces and  for
   low-cost  rental  studios  secured  through a  legal  or  housing
   agreement".    The  question  which  then  arises   is  how  much
   relaxation, if any, should be provided.

   First,  a  relaxation is  supported,  as  per standard  practice,
   regarding the  lawfully existing  parking non-conformity for  the
   existing  Storage Warehouse,  which  is deemed  to be  27 spaces.
   Second,  given that artists who  rent studios do  not express the
   same  need  for  parking   as  strata-owners,  a  relaxation  for
   long-term rental  studios might  perhaps be considered,  not just
   just low-cost rentals.

   Should Council wish to  consider approval of the application,  it
   may also  wish to consider  that new parking  requirements should
   apply,  and also that a  relaxation for market  rental studios be
   considered.   With such a possibility in mind, staff suggest that
   any relaxation of  this nature be based on  evidence satisfactory
   to Engineering staff that rental studios generate a significantly
   lower parking  demand than strata  studios (i.e., lower  rates of
   vehicle ownership  for studio  renters compared to  studio strata
   owners).   This alternative requirement is provided  in the draft
   CD-1 By-law for Council consideration (see Appendix A).

   Principles of Crime Prevention Through Environmental Design:
   Police Department staff comment as follows:

        This  development   is  located  in  a   high  crime  impact
        environment.   Safer environmental  design should be focused
        at  all  types  of  property theft,  mischief  and  nuisance
        associated  with   prostitution  and  drugs,   and  fear  of
        residents.    The  infusion of  a  diversity  of  housing is
        considered positive in this location.

   Issues which  they recommend to  be addressed at  the development
   permit  stage are listed  in rezoning approval  condition (ii) in
   section (b) of Appendix B.

   Urban Design Panel:  The  application  was  not  referred  to the
   Panel for review because its proposed exterior alterations to  an
   existing  building are  minor and  have few implications  for the
   form of development,  which is otherwise not  a significant issue
   in industrial districts.

   Environmental Implications:  The  proposed change of  use of this
   existing building, for artist 'live/work' studios, would have few
   environmental impacts.   Atmospheric pollution by journey-to-work
   commuting would be minimized by combining 'live/work'  use on the
   same site.

   The  renovation and  re-use  of an  existing obsolete  industrial
   building  would  extend the  economic life  of a  structure which
   would otherwise likely be demolished and removed as garbage.

   Social Implications:  The provision of rental  artist 'live/work'
   studios would  help to  achieve City  objectives to  increase the
   supply  of  affordable  artist  'live/work'  studios.   Increased
   activity  on this site would  help to reduce  safety and security
   problems in the surrounding area.  There are no implications with
   respect  to  the  Vancouver  Children's Policy  or  Statement  of
   Children's Entitlements.

   PUBLIC INPUT

   Planning staff mailed a notification letter to 88 property owners
   in  the  surrounding area  on January  18,  1996.   The applicant
   installed  an information sign on  the site on  January 30, 1996.
   Several phone calls and letters have been received.

   Many businesses  and community groups have  expressed support for
   the previous development application and/or the  present rezoning
   application.   These  include Artists  for Creative  Environments
   (ACE), the  Downtown Eastside Residents  Association (DERA),  and
   the  Tenants Rights  Coalition.   Immediate neighbours  have also
   expressed  support, including  Astra Cold Storage  (329 Railway),
   Ideal Iron Works (369  Alexander), Main Service Automotive Centre
   (298 Alexander), and Burrard Iron Works (220 Alexander).

   Some of the reasons for supporting  artist 'live/work' studios at
   this location include:

   -    reduction in crime and vagrancy;
   -    investment and improvement in the area;
   -    increased business from building occupants; and
   -    many  buildings in area are vacant, are no longer viable for
        industrial use, and need improvement.

   Many businesses and organizations  have also opposed the proposed
   artist  'live/work' studio use on  this site.   Letters have been
   received  from  Canadian  Fishing  Company,  Canadian Stevedoring
   Company, B.C.  Maritime Employers  Assoc. and the  Vancouver Port
   Corporation.   Opposition  has also  been expressed  by CP  Rail,
   Tymac Launch Service, and Casco Terminals Ltd.

   The  concerns expressed  by the  surrounding property  owners and
   businesses  which  are  opposed   to  the  rezoning  include  the
   following:

   -    proposal is contrary to Industrial Lands Strategy and policy
        retaining the lands north of Hastings for industrial use;


   -    rezoning approval  will set  a precedent that  may encourage
        other owners to convert to non-industrial uses;

   -    site  is  part  of  a  buffer  zone  between  the  port  and
        residential uses to the south;

   -    residential use  is not compatible with  industrial and port
        activities -- occupants will complain about inevitable noise
        and  smells in this port industrial area, and which occur at
        all hours  of the  day  and night,  thereby undermining  the
        viability of this industrial activity;

   -    existing   parking  deficiencies   in   the  area   will  be
        exacerbated; and

   -    it  will be difficult to  limit occupancy of  the studios to
        legitimate artists.

   These matters have  been addressed in  one way or another  in the
   preceding pages.

   APPLICANT'S COMMENTS

   The  applicant has been given a  copy of this report and provides
   the following comments:

   "As  applicant we are  pleased that  the Planning  Department has
   recommended that  our rezoning application be  referred to Public
   Hearing.   However, we are also disappointed that the Director of
   Land Use and Development is  recommending that the application be
   refused.     We   understand   that,  based   on  the   technical
   interpretation  of current policy,  the Planning Department seems
   obliged  to recommend refusal.   However, based  on the project's
   previous support  by Council,  its conformity  to all aspects  of
   current policy other than  FSR, and its clear public  benefit and
   merits, we believe that the project should have the unconditional
   support of  the Planning Department.   We have set  out below our
   comments which support our position:

   1. Previous Support from Council

      On  two previous  occasions City  Council  has voted  for this
      project to proceed.   Council's support  of the processing  of
      the rezoning  application is referenced  in this report.   The
      minutes from the June 1st  meeting of the Standing  Committee,
      considering the development permit application state:

      "the majority felt fairness  required that this application be
      dealt with in  accordance with  the policies in  place at  the
      time  of  submission.   The  application's  rental status  was
      viewed as crucial.  It was also noted artist live/work studios
      are incompatible with other residential use".
      At the  June 1st  Committee meeting  Councillors heard  from a
      broad  range of speakers  for and  against, including  all the
      interested  parties mentioned  in this  report.   Council then
      supported a motion to allow the application to be processed in
      a  similar manner to 1701  Powell Street which  had achieved a
      relaxation  on FSR  from the  Board of  Variance to  allow the
      project to proceed.

   2. Conformity to Policy

      Although the rezoning application does not, strictly speaking,
      meet the  current rezoning  criteria for industrial  land, the
      actual proposed land use generally complies with both past (at
      the  time  of  Development  Permit  Application)  and  current
      policies for Artist live/work  and industrial land in  all but
      the reutilization of approximately 3.0 FSR contained within an
      existing 60 year old building.

   3. Public Benefit & Merits

      A study by  the Housing and  Properties Department has  stated
      that  the housing  benefit of  providing 40 rental  studios in
      perpetuity exceeds the value  of the gain to the  applicant of
      the additional  re-used floor space.   Furthermore the project
      has the  resolute support of  many community groups  and three
      out of  four  of its  direct  neighbours.   The  compatibility
      concerns  of  some nearly  industries  are dealt  with  by the
      verifiable  technical  and  legal measures  described  in this
      report."


                                                          APPENDIX F

     APPLICANT, PROPERTY OWNER AND DEVELOPER INFORMATION


       APPLICANT                         Robert Leshgold, Architect
       PROPERTY OWNER                    Reliance Holdings Ltd.

       DEVELOPER                         Reliance Holdings Ltd.


       SITE INFORMATION AND STATISTICS


       STREET ADDRESS                    303 Railway Street

       LEGAL DESCRIPTION                 Lot A, Block 39A, D.L. 196, Plan 4600
       SITE AREA                         1 096.5 m2 (11,803 sq. ft.)

       WIDTH (Railway Street)            22.7 m (74.54 ft.) at front, 28.3 m (92.85 ft.) at rear

       DEPTH (Gore Avenue)               44.2 m (145.16 ft.) and 45.9 m (150.53 ft.)


       DEVELOPMENT STATISTICS


                                                                                            RECOMMENDED
                                         DEVELOPMENT                                        DEVELOPMENT (if
                                         PERMITTED IN             PROPOSED                  different than
                                         M-2 DISTRICT             DEVELOPMENT               proposed)

       LAND USES                         Industrial Uses,         Artist Studios, and
                                         Other Uses               Dwelling Units
                                                                  associated with Artist
                                                                  Studios
       MAXIMUM FLOOR SPACE RATIO         5.0 (except that         3.96 (4.44 existing)      4.0 (FSR to include
                                         non-industrial uses                                common workshop areas
                                         are limited to 1.0)                                at/above grade)

       TOTAL FLOOR AREA                                           4 342 m2                  4 380 m2
                                                                  (46,740 sq. ft.)          (47,149 sq. ft.)

       DWELLING UNITS ASSOCIATED WITH
       ARTIST STUDIOS                                             40
       MAXIMUM HEIGHT                    30.5 m (100 ft.)         20.12 m (66 ft.)          21 m 

       NUMBER OF STOREYS                 n/a                      4 storeys + basement

       FLOOR-TO-CEILING HEIGHT           n/a
          average                                                 2.8 m (9.3 ft.)
          maximum                                                 4.0 m (13.2 ft.)  
       FRONT YARD SETBACK                not required             0 m

       SIDE YARD SETBACK                 not required             0 m

       REAR YARD SETBACK                 3.1 m [0 m]              0 m
       BICYCLE SPACES                                             45

       LOADING SPACES                                             1

       PARKING SPACES                                             22