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