POLICY REPORT URBAN STRUCTURE Date: May 30, 1996 Dept. File No.: RP TO: Standing Committee on Planning and Environment FROM: Director of Community Planning, in consultation with General Manager of Engineering Services Manager of Housing Centre Manager of Real Estate Services Director of Social Planning Director of Legal Services General Manager of Parks and Recreation Director of Permits and Licenses SUBJECT: Oakridge/Langara Public Benefits Strategy RECOMMENDATION A. THAT Council adopt the Oakridge/Langara Public Benefits Strategy, including the allocation of funds to identified capital projects and implementation actions, as described in this report. B. THAT the area of Oakridge/Langara shown in Figure 1 be established as a Development Cost Levy (DCL) District and that the policies in Appendix A be adopted to guide administration of DCLs in the Oakridge/Langara neighbourhood. C. THAT the 1996 rate for collection of Development Cost Levies (DCLs) be set at $34.98 per square metre ($3.25 per square foot) for all uses; other than for daycare which will be set at $5.49 per square metre ($.51 per square foot). D. THAT the levy proceeds be spent in the following proportions: (i) 63 percent for park acquisition and development; (ii) 30 percent for replacement housing; and (iii) 7 percent for street (walking) improvements. E. THAT the Director of Legal Services be instructed to prepare the necessary by-laws for report back. F. THAT the General Manager of Engineering Services and Director of Community Planning work with area residents in the design and implementation of street (walking) improvements along pedestrian collector routes (mainly Heather, Tisdall and Willow Streets) to improve safety and convenience, with the source of funds to be DCLs. G. THAT the General Manager of Parks and Recreation work with area residents in the design and implementation of improvements to Oak Park and Tisdall Park, with the source of funds to be DCLs. H. THAT the Manager of Real Estate Services be instructed to secure a waterfront park site, or sites, as suitable sites arise as a priority, with the source of funds to be Community Amenity Contributions (CACs), or the Property Endowment Fund (Land Acquisition Fund), to be repaid, with interest, by CACs as they become available. I. THAT staff report back on public involvement, design and detailed funding arrangements, prior to implementation of capital projects described in this Strategy. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A to I. COUNCIL POLICY Since 1989, some applicants for CD-1 rezonings in Vancouver have been required to make Community Amenity Contributions (CACs). In 1992, Council adopted the Downtown South DCL By-law and related polices including the policy "that development cost levies outside the Downtown South be considered as part of area-wide rezonings based on a community plan," and in 1994, Council established a DCL District for Burrard Slopes, and in 1995, Council established a DCL District for the Arbutus Neighbourhood. On July 27, 1995, Council approved the Oakridge/Langara Policy Statement. Council also directed staff to complete traffic management planning and a public benefits strategy (including investigation of applying DCLs). Staff were further instructed to report back on alternative approaches to recovering the cost of city infrastructure upgrades needed to service the new population, and on possible infrastructure phasing options. In 1994, Council approved the Public Art Policies and Guidelines, which seek contributions from any privately-initiated rezoning resulting in new floor space of greater than 15 000 square metres (161,463 square feet). The current rate is $10.23 per square metre ($0.95 per square foot). On May 28, 1996, Council instructed staff to report back on staffing needs to administer the existing and future DCLs, CACs and the regional DCCs, if introduced. SUMMARY On July 27, 1995 Council adopted the Oakridge/Langara Policy Statement and directed a report back on a Public Benefits Strategy, and on alternative approaches to recovering infrastructure upgrades and possible phasing options. The Public Benefits Strategy described below provides a comprehensive approach to new public amenities provision. It recommends applying: (a) DCLs; and (b) CACs, and using these contributions in concert with direct provision of amenities by developers to ensure that new development pays its fair-share toward public benefits needed by the new population. Analysis of infrastructure upgrade impacts on the City's water, sewer and transport systems conclude that sufficient incremental upgrades will be achieved at the time of new construction. Staff do not recommend these costs be added to the proposed DCL charge. Staff recommend a general DCL rate of $34.98 m2 ($3.25 sq. ft.) and a reduced rate of $5.49/m2 ($.51/sq. ft.) for daycare. This could result in the collection of about $15,500,000 in DCL contributions as the area develops. The proposed DCL boundary is shown in Figure 1. Staff also recommend that through rezonings, direct provision of amenities and CACs be pursued which could result in the collection of $16,900,000 of cash or in-kind benefits. The estimated total supply of funds from new development to provide new amenities is $15,500,000 from DCLs and $16,900,000 from CACs, for a total of $32,400,000. Additional funding from future Capital Plans, or other sources, may be needed to fully address the identified benefit items or to add new amenities. The estimated cost of identified public benefit items is $41,500,000. Residents assisted in the identification and prioritizing of required benefits. This resulted in a modification to the pro-rated approach of providing new amenities to provide funding of Existing Park Upgrading and Walking Improvements at 100% of costs. Figure 1. Proposed DCL Boundary Based on the recommended approach the DCL allocations are: Park Purchase, Development and Upgrading, 63%; Replacement Housing, 30%; and Walking Improvements, 7%. CACs are recommended to provide Childcare Facilities, Non-market Housing and some Park Acquisition and Development. Council retains the flexibility to re-allocate DCL and CAC expenditures in the future. Area residents and interested parties have been informed of the recommended approach and that they may address Council Committee as delegations. PURPOSE The purpose of this report is to present a Public Benefits Strategy that responds to the need for public amenities required by new development in Oakridge/Langara. The Strategy seeks to: - have Council approve an approach to supplying public benefits, including the application of DCLs, CACs and other funding measures; - adopt the boundary, rate and administrative policies for the DCL district; - establish how DCL proceeds should be allocated; - request the necessary by-laws be brought forward for enactment; and - have Council approve priority implementation actions. The Strategy also addresses the needs for infrastructure servicing requirements. An accompanying report on traffic management planning in Oakridge/Langara includes: details on how current traffic issues may be addressed; and measures required to mitigate traffic impacts from redevelopment. BACKGROUND 1. Oakridge/Langara Policies On July 27, 1995 Council adopted the Oakridge/Langara Policy Statement and directed staff to report back on a Public Benefits Strategy. The Policies provide for new development where opportunities for increasing residential variety and affordability exist, and where shops, services and transit are found. New development could add approximately 3,500 new housing units and 5,800 new residents, over 20 to 30 years. During the Policy Statement preparation, residents expressed a desire to maintain the current level of amenities in their neighbourhood. The Public Benefits Strategy addresses specific Policy Statement objectives such as: - increased daycare facilities, park space and community centre space should be provided; - provide for housing variety and affordability, e.g., 20% non-market housing units on large sites and replacement housing where new housing would be unaffordable for displaced tenants; - Greenways, bikeways and walkways should be complemented with traffic calming on important local routes; and - redevelopment should contribute its share towards public infrastructure to accommodate long-term servicing requirements. The Public Benefits Strategy aims to ensure that all new development contributes its fair-share towards new public benefits provided by the City. Staff note that existing Oakridge/Langara zoning has the un-built capacity to allow approximately 3,000 more people. Under existing zoning, redevelopment would not be subject to DCLs or CACs, and would not contribute towards additional public amenities such as daycare or affordable housing. In addition, this development would provide only .81 ha (2 ac.) of new park which compares to the City standard for park requirements for 3,000 people of 3.4 ha (8.25 ac.). 2. How the City Typically Provides Public Benefits The City has evolved several approaches to providing public benefits for its residents. The three most common approaches are: the City and Park Board Capital Plans, Major Project Development and Area Planning. Capital Plans strive to ensure City standards for public facilities are met city-wide, while also responding to new service demands arising from a growing and changing population. Capital Plan funds come from borrowed funds, cost sharing from senior government and the operating budget. These city-wide, Capital Plan public benefits are financed, in part, by all taxpayers. The Major Projects approach recognizes that significant land values are created when large scale redevelopment occurs (such as False Creek North). These projects are mainly controlled by one landowner and through the planning process they typically provide a full range of public benefits that meet City standards. Many of these benefits are fully funded by the developer. Area planning generally involves redevelopment of numerous small sites, with different landowners. CACs and DCLs are collected over time to provide public benefits. Without CACs and DCLs, redevelopment may not be required to provide any new public amenities. The area planning approach analyzes existing amenities, area needs and the needs of the new population. Public benefit items are costed and are typically priorized or pro-rated as redevelopment contributions often do not cover the full costs of these amenities. A key difference between CACs and DCLs is that CACs can be used to fund any public amenity anywhere Council specifies, where DCLs can only fund expenditures for parks, daycare, replacement housing and infrastructure (water, sewer and streets) within a designated area, except for replacement housing which can be provided inside or outside the area. In addition to these means of providing public amenities, there are a number of other ways in which residents can be involved in increasing neighbourhood amenity. Examples include Local Improvements, Community Public Art, Artist in Residence Program, Neighbourhood Matching Fund, Neighbourhood Greenways and Business Improvement Areas. DISCUSSION 1. Oakridge/Langara Approach to Funding Public Benefits The Oakridge/Langara Public Benefits Strategy integrates all of the above approaches including in-kind provision of amenities, CACs, area-wide DCLs, as well as potential future Capital Plan contributions. The Policy Plan used City standards to set objectives and these have been combined with the findings of a comprehensive community amenities inventory and resident input to identify public benefit demands. The analysis includes public benefit requirements resulting from development contemplated by the Policy Statement, including the increased demand on City infrastructure (water/sewer). The community amenity inventory and public input process, allowed existing residents to assist in the identification and prioritizing of required benefits (Appendix B provides a summary of this methodology, complete documentation of the Community Amenity Inventory and Public Involvement is on file with the City Clerk ). (a) Public Benefit Demands and Costs Details of public benefit demands and costs are provided in Appendix C. (i) Parks The current Oakridge/Langara park supply is roughly equal to the City standard of 1.1 ha/1,000 people (2.75 ac./1,000 people). When this standard is applied, 6.5 ha (16 ac.) of new park space is required. Several potential parks, as part of redevelopment sites, are identified in the Policy Statement, totalling approximately 3.6 ha (9 ac.): the BC Transit site, the Dogwood/Pearson sites and the Oakridge Shopping Centre. To meet the park standard 2.9 ha (7 ac.) of additional park must be purchased. When the Policy Statement was approved, staff recommended purchase of a 1.6 ha to 2.0 ha (4 ac. to 5 ac.) site on the Fraser River, using DCLs or CACs. This site has come under litigation and Real Estate staff advise the owner is now unwilling to sell. Staff have also further analyzed and received public input on park needs in the area. To maximize Park Board park purchase flexibility, staff recommend that the park space total be divided equally between the residential area north of Marine Drive and the industrial area south of Marine Drive. Average land values north of Marine Drive of $8.36/m2 ($90/sq. ft.) and $3.25/m2 ($35/sq. ft.) south of Marine Drive are used to estimate costs. Acquisition of some waterfront park space is a recommended priority to fulfil the Policy Statement direction and to create waterfront access for the public. In addition, residents involved in the Public Benefits Strategy process indicated strong support for upgrading of existing parks, particularly for passive uses. Estimated costs for parks are: New Park Acquisition $19,100,000 New Park Development $ 3,000,000 Existing Park Upgrading $ 300,000 Total $22,400,000 (ii) Affordable Housing Currently, 24% of area households qualify as requiring "core-need" housing. Non-market housing represents 5% of existing housing stock. The Policy Statement aims at increasing the range of housing types available to accommodate a diversity of household types, and to increase the supply of affordable housing through the provision of 20% non-market housing on redevelopment sites with over approximately 100 units. The Policies also discourage redevelopment of existing affordable rental housing near Oakridge Shopping Centre. The City's DCL authority allows for replacement housing when it is anticipated that, as a result of development, people will be displaced and unable to afford comparable accommodation in the area. It is expected that 127 existing affordable housing units could be redeveloped, based on the age, condition and current density of these apartments. As in other DCL areas, the replacement housing could be provided in several ways. Is is assumed that provincial social housing funding is available for 25% of the units and the City would lease land to a non-profit society. The remaining 75% of the units are assumed to be rental housing. This is similar to the approach taken in the City's first DCL By-law in Downtown South where a portion of the replacement housing funds were assumed to be targeted to rental housing. In Oakridge-Langara, the DCL funds could be used to either acquire an existinf rental building or acquire a site and build a new rental building. The DCL funds would be used to ensure that the rents are low-end of market and additional City funding would not be required. Staff will be reporting back to provide an appropriate policy context prior to any specific projects intended to secure rental housing. To estimate 20% non-market housing costs, only large sites (BC Transit and Pearson/Dogwood) were used. Staff expect that these units will be provided on-site. Non-market housing may also be provided on other sites such as the former Police Station site which is an active rezoning application. Estimated costs of affordable housing are: Replacement housing - 127 units $ 7,500,000 20% Non-market Housing $ 7,600,000 Total $15,100,000 (iii) Childcare Currently, there are 16 childcare facilities with over 500 spaces located in Oakridge/Langara. Several are part-time nursery school programs catering to special needs and specific cultural/ linguistic groups from across the City. However, Social Planning advises that based the current supply of childcare spaces, there is no immediate need for additional facilities. Over time, this situation will change as new residents arrive. If City-standards for daycare provision are applied to the projected population from new development, an additional 73 daycare and 34 out-of-school care spaces are required. A new "Class A" daycare and out-of-school facility is recommended as a medium-term, 10-15 year, priority. Estimated cost of childcare facility is: Land acquisition $1,400,000 Facility construction $1,600,000 Total $3,000,000 (iv) Walking Improvements and Traffic Calming The Policy Statement identifies several general directions to improve the pedestrian environment, especially on pedestrian collector routes. Residents involved in the Public Benefits Strategy strongly supported improving walking safety, comfort and convenience along non-arterial streets, particularly Heather, Tisdall and Willow Streets. As these improvements would be provided without a contribution from adjacent residents it is not part of the neighbourhood Greenways program, although it would certainly have greenway qualities. This would involve provision of sidewalks, curb ramps where none exist and appropriate traffic calming measures (including landscaping). Implementation will involve resident participation in the design these improvements. Estimated cost of walking improvements is: Walking improvements to mainly Heather/Tisdall/Willow - Total $1,000,000 (v) Other Public Benefits In addition to the above public benefits, identified as priority items for funding, other public benefits were considered in preparing this Strategy. Some of these other benefits can be achieved within current supply mechanisms, others need monitoring and future review before implementation. Infrastructure: The need for infrastructure upgrades due to the added demand caused by new development was raised by the public as an issue when Council considered the Policy Statement. Council requested the report back address alternate approaches to recovering the cost of water and sewer upgrades and possible phasing options to limit the rate of development based on infrastructure capacity. Currently, the City seeks developer contributions towards off site servicing costs if existing infrastructure is inadequate to serve the proposed rezoning requirements. This could include installation of a new left turn bay, contribution towards a local improvement for pavement and curbs to sidewalks, upgrading of a watermain to address fire demand, or replacement of a sewer line. Developer contributions are normally limited to the immediate, local increased effects of the rezoning proposal on the adequacy of the infrastructure. They do not address increased demand on the overall water supply, the need for sewage treatment plant expansion or other city-wide growth impacts. City-wide impacts are normally funded through debt financed Capital Budgets which are repaid through the property tax or water rates. One exception, currently being considered, is the GVRD's proposal to implement a Regional Development Cost Charge for the growth component of sewage treatment costs. Under existing funding schemes, new developments also contribute toward infrastructure expansion to the extent that they add to the property tax base from which the debt charges for these new facilities are repaid. This added tax base also contributes towards the maintenance and replacement of existing infrastructure, sharing this burden with existing residents. Staff believe there is no justification to implement DCLs to fund basic infrastructure expansion on a city-wide basis. Area DCLs should be considered and used to fund the provision of specific amenities or services to the area affected by development. Provision of basic services such as sewer, water and transportation facilities to benefit the City as a whole, should be provided through the City's normal capital financing process, with repayment from taxes or user fees. There is no need to phase development in Oakridge/langara to ensure infrastructure keeps pace. Any local deficiencies in the water system will be upgraded, at the time of construction. The sewer system is generally adequate to serve the proposed level of development. The overall increase in demand from the additional development in Oakridge/Langara will not be significant on the broader, city-wide scale. Community Space: A need for community centre space was identified when the Policy Statement was approved. When City-standards are applied against the projected new population there is a need for an additional 1 230 m2 (13,300 sq. ft.) of community centre space. The community facilities inventory found that when existing community centre space (city-owned and other publicly-accessible space) is added, there is over 13 000 m2 (140,000 sq. ft.) of space available now. This includes the approximately 3 700 m2 (40,000 sq. ft.) in the Marpole/Oakridge Community Centre. There are also numerous other publicly-accessible community spaces available within, and immediately adjacent to, Oakridge/Langara. Residents involved in the Public Benefits Strategy supported upgrading existing facilities rather than building new ones. Park Board staff support this approach. It should be noted that the Marpole/Oakridge Community Centre has recently been renovated and that future additions can be addressed in future Capital Plans. In addition, staff note that as new development proposals arise, the need for community space can be re-evaluated. Greenways and Bikeways: Three city-wide Greenways traverse Oakridge/Langara, on 37th and 59th Avenues and on the Fraser River foreshore. Detailed design is underway for the pilot city Greenway, the Ridgeway on 37th Avenue, with implementation targeted for this year. It will provide a significant new amenity to area residents. On 59th Avenue, staff will negotiate Greenways streetscape treatments during the rezoning process on adjacent redevelopment sites. Heather Street, from the Off-Broadway Bike Route on 7th Avenue to the Ridgeway Greenway on 37th Avenue, will become a bike route later this year or early 1997, linking Oakridge/Langara with the city bike routes. The walking improvements along Heather/Tisdall/Willow Streets, proposed in this Strategy, will create a safe and pleasant pedestrian environment linking local schools, parks and shopping. These improvements will also enhance the bicycling environment. Public Art: There are several opportunities for public art to be achieved in Oakridge/Langara. The city-wide Greenways program has integrated public art into the greenway design process and as noted above, this area is traversed by three such Greenways. Council has a city-wide policy of seeking developer contributions, at a rate of $10.23/m2 ($0.95/sq. ft.) on rezoning applications creating new floor space greater than 15 000 m2 (161,463 sq. ft.) for public art. This is consistent with economic analysis of development sites, described below, which suggests the economic feasibility of providing a public benefit contribution generally increases with site size. While smaller sites would not be expected to contribute, some medium-sized sites could and large sites should be able to contribute towards public art. In addition, there are opportunities for involvement of a public artist in the design process for public benefit projects such as walking improvements and park upgrading. Heritage: The only significant heritage resource located within an identified Oakridge/Langara redevelopment site is on the Oakherst site. This site has an active rezoning application and staff are recommending retention of the "A" listed, heritage building and contextual landscaping. If approved at Public Hearing, the CAC for this site would consist of the heritage retention. This is consistent with the Policy Statement objectives. The allocation of Oakherst's CAC to heritage does not affect the overall public benefits supply approach because it assumes that medium-sized sites, such as this, provide a small portion of the overall CAC sum to be collected. This provides flexibility for site-specific negotiations to occur without jeopardizing the overall Strategy. Neighbourhood House and Community Crime Prevention Office: Some residents have expressed interest in developing community-based services in Oakridge/Langara, including a Neighbourhood House and a Community Crime Prevention Office. Based on the community facilities inventory, staff conclude that small, incremental additions of community space cannot be justified without a proven sponsor organization to provide ongoing, cost-effective management. Police Department staff note that this neighbourhood is a low-crime area within a low-crime district, when compared to the rest of the city. However, the opportunity for additional community space to be secured through future rezonings will remain as redevelopment is expected to occur over the next 20 to 30 years. The need for this space will be subject to community-based initiatives that demonstrate service needs and organizational capability. Indoor Pool: Residents have indicated the desire to have an indoor pool in Oakridge/Langara. The Park Board Management Plan and more recently the Outdoor Aquatics Taskforce addressed this issue. The Management Plan indicates that if a new indoor aquatic facility were to be built outside of the downtown peninsula, it would likely be sited in the southeast quadrant of the city. The Outdoor Aquatics Taskforce recommended that the Sunset pool be replaced with an new outdoor pool and that the outdoor pool at Oak Park be eventually phased out. School Space: Increased residential population puts additional pressure on area schools and staff have worked with School Board staff to identify impacts, noting that school facilities funding is a provincial function. Staff projections suggest that over 20 to 30 years of redevelopment, 300 to 400 school-aged children (6 to 18 years old), might be generated. Staff will continue to work with School Board staff, noting that student populations will vary with the pace and type of development and age of students. Use of schools in all areas is also affected by district programs and out-of-school catchment area students. The School Board recently received Provincial approval to upgrade Churchill Secondary School to build additional space for students now using portables. 2. Summary of Estimated Public Benefit Costs In summary, the estimated costs of public benefits are: Benefit Item Estimated Cost Park Purchase and Development $22,100,000 Existing Park Upgrading $ 300,000 Replacement Housing $ 7,500,000 20% Non-market Housing $ 7,600,000 Walking Improvements $ 1,000,000 Class "A" Daycare and $ 3,000,000 Out-of-School Care Total Costs $41,500,000 Appendix D shows approximate locations of proposed public benefits. 3. Supply of Public Benefits As noted earlier, there are three ways to supply public benefits from area redevelopment: direct provision from development; CACs which apply to rezonings; and DCLs which apply to all redevelopments. The Public Benefits Strategy proposes an approach that blends all three. On sites that could redevelop without rezoning (mainly in commercial-zoned areas) only DCLs would apply. On small rezoning sites with limited redevelopment potential it is likely only a DCL would apply, unless a 20% density bonus is requested in return for desired public benefits. On larger sites where significant value is created through rezoning, direct provision and/or CACs are anticipated, in addition to DCL charges. Three other City areas have DCL districts. The residential/ commercial rates are: $66.52/m2 ($6.18/sq. ft.) in Downtown South; $53.82 m2 ($5.00 sq. ft.) in Burrard Slopes; and $43.06 m2 ($4.00 sq. ft.) in the Arbutus Neighbourhood. For Oakridge/Langara a levy of $34.98 m2 ($3.25 sq. ft.) is proposed for office, retail, service and residential uses. Analysis conducted by Real Estate Services and an independent consultant conclude that this charge is economically feasible by all potential redevelopment sites. The estimated potential DCL funds collectable (representing a 20- to 30-year build-out) are approximately $15,500,000. CAC potential is more variable as it depends on a variety of market forces and it is the result of rezoning negotiations. The estimated potential CAC funds collectable are approximately $16,900,000. The combined DCL and CAC potential is $32,400,000, or 78% of the estimated $41,500,000 public benefits costs. Staff note that this is based on a relatively conservative method of calculation as it assumes that all sites achieve less than the full density provided for in the Policy Statement. The shortfall in funding for public benefits is typical of City experience in other redevelopment areas where there is multiple ownership of development sites. DCL estimates for other redevelopment areas have provided a range from approximately 40% to 80% of estimated public benefit costs. Future Capital Plans may need to be explored as a means to achieve full city standards for public amenities in these areas. In contrast, ad hoc development in areas where CACs and DCLs are not applied result in minimal developer contributions toward public benefit needs. Figure 1 below shows the proposed DCL boundary. The boundary differs from the study area boundary as it excludes the Marpole RM district and the industrial area south of Marine Drive. The Marpole RM district is excluded because it does not contribute to the demands generated by new development as it is largely built-out. Figure 1. Proposed DCL Boundary This area also contains a portion of the Hudson industrial "let-go" area which will be subject to its own area planning program shortly. The south of Marine Drive industrial area is excluded as it is subject of a separate study arising from the Industrial Lands Strategy which may consider separate DCLs. 4. Allocation of DCL and CAC Proceeds Council must decide on the proportions for spending DCL proceeds before a DCL by-law can be enacted. This must be expressed as a percentage of the anticipated $15,500,000 DCL proceeds ad must be allocated to each type of levy project. There are no similar restrictions on CACs. Council may choose any allocations totalling 100% for DCLs. Staff recommend that based on the demand analysis, Council allocate the DCL and CAC proceeds on a pro-rated basis, proportional to the costs of identified public benefits. However, staff note that when the pro-rated approach is strictly applied it results in a significant reduction to two of the smaller benefit items: Existing Park Upgrading and Walking Improvements. Public involvement during preparation of the Policy Statement and the Public Benefits Strategy indicated strong support for these measures. Staff recommend modifying the pro-rated distribution so that these items are fully funded. This deviation from a pro-rated approach is not intended to set a precedent for other areas, as each will have unique circumstances which influence benefit allocations. This approach would result in the following allocations: Pro-rated* Allocation Estimated Totals DCL CAC Benefit Item Cost DCL and CAC Park Purchase and $22,100,00 $ $ $16,200,000 Development 0 9,500,000 6,600,000 $ Existing Park Upgrading $ $ N/A 300,000 Replacement Housing 300,000 300,000 N/A $ 4,700,000 20% Non-Market Housing $ $ $ $ 7,400,000 Walking Improvements 7,500,000 4,700,000 7,400,000 $ 1,000,000 Class "A" Daycare and $ N/A N/A $ 2,900,000 Out-of-School Care 7,600,000 $ $ $ 1,000,000 2,900,000 1,000,000 N/A $ 3,000,000 Total Costs $41,500,00 $15,500,00 $16,900,00 $32,400,000 0 0 0 * Pro-rated allocations modified to fund Park Upgrading and Walking Improvements at 100% of costs. Council is required to identify DCL allocations expressed as a percentage of DCL proceeds. Based on the proposed approach these are: DCL Benefit Items Funds Allocated % Allocation Park Purchase and Development $9,500,000 61 Existing Park Upgrading $ 300,000 2 Replacement Housing $4,700,000 30 Walking Improvements $1,000,000 7 Total Costs $15,500,000 100% Overall, an estimated 78% of the full costs of all identified public benefits can be covered by the anticipated DCL and CAC proceeds. However, due to the distribution of benefit items between CACs and DCLs the percent shortfall varies. Park purchase and development funding from DCLs and CACs is 73% of costs. Park upgrading and walking improvements funding from DCLs are funded at 100% of costs. Replacement housing funding from DCLs is 63% of costs. The 20% non-market housing funding and childcare funding from CACs are 97% of costs. Council legally retains flexibility to change the DCL allocations in the future, provided the funds continue to be spent on projects that are required as a result of development in the DCL district. It is also possible that the Charter authority could be expanded to allow spending DCLs on other community facilities in the future. As the time frame for the Public Benefits Strategy is 20 to 30 years, adjustments to respond to new demands or changing priorities are likely. Council should also be aware that the anticipated DCL and CAC proceeds are a projection of what might reasonably be generated over the next 20 to 30 years. The actual amount collected might be higher or lower, depending on redevelopment activity and market conditions. 5. Public Benefits Strategy Implementation (a) Rezonings The Public Benefits Strategy will used by staff to guide privately-initiated, site-specific rezoning negotiations for desired public benefits. Currently, there are four active rezoning applications in Oakridge/Langara; the former Police Station Site, St. John Ambulance site, the Oakherst site and 5650 Oak Street. Staff have advised applicants of the general directions of the Public Benefits Strategy to assist in rezoning negotiations. Staff note that with the exception of the Oakherst site, all applicants are pursuing the maximum recommended density, which will in turn, provide the maximum amount of public benefits (in-kind or in-cash). (b) Park Upgrades and Walking Improvements Staff recommend that priority action be taken on two items, park upgrading on Oak and Tisdall Parks and walking improvements on Heather/Tisdall/Willow. Both projects need to involve area residents in the detailed design process. These items are not overly expensive and could provide tangible and immediate improvements to the neighbourhood environment. While clearly linked to the needs of the new population from redevelopment, these projects also provide benefits to existing residents. Based on the current level of redevelopment activity, it appears that sufficient DCL funds may be available within two or three years to cover the $1,300,000 needed for these projects. Staff recommend that the design phase for these projects begin as soon as staff resources are available. If DCL funds are not available at construction stage, staff recommend other funding sources, such as CACs, be explored, to be repaid as DCLs become available. (c) Waterfront Park Space Staff recommend that Real Estate Services be instructed to secure new park sites on the waterfront, south of Marine Drive, as a priority. Waterfront park space was a key element of the Policy Statement's park supply requirements. Due to the uncertainty regarding the Policy Statement's preferred waterfront park site, other options should be vigorously explored before all waterfront park space opportunities are lost. The source of funds would be CACs, or the Property Endowment Fund to be repaid, with interest, as CAC funds become available. (d) Community Space Staff recommend that community-based initiatives such as pursuit of a Neighbourhood House or Community Crime Prevention Office be acknowledged, noting that these projects require a significant and prolonged commitment of community resources to be successful. Through the redevelopment process flexibility is retained to respond to this type of initiative on a site-by-site basis. Additional community centre space could also be addressed through future Capital Plans. (e) Schools The increased population resulting from redevelopment will place additional demands on schools in Oakridge/Langara. Staff are working with the School Board to address future needs, noting that capital planning for school facilities is a provincial jurisdiction. (f) Traffic Management The Public Benefits Strategy has been prepared in-tandem with a Traffic Management Planning process. Traffic management planning has examined traffic concerns related to existing conditions, and identified traffic issues related to future redevelopment. A comprehensive set of traffic measures has been developed and is reported to the Traffic Commission separately. PUBLIC COMMENTS Through preparation of the Policy Statement there was extensive public input which focused on resident desires for public benefits. In general, residents supported new development as long as amenities are maintained. More affordable housing and a housing mix were also seen as desirable. Public input into the Public Benefits Strategy included the Neighbourhood Portraits Program, in which residents took photos or drew images of what was most, and least, desirable in their neighbourhood. These images were presented in March, 1996 at a two-day open house at Oakridge Shopping Centre, a 4-day display and a community workshop at Marpole/Oakridge Community Centre (see Appendix B for details). In May, 1996 a Draft Public Benefits Strategy Newsletter was distributed throughout the neighbourhood. In addition, a DCL notification letter was sent to all registered property owners and business operators. Staff have received limited public comments on the Public Benefits Strategy. Comments received affirm resident desires to ensure new development pays its fair-share toward new amenities, to preserve existing neighbourhood character and to address traffic concerns. SOCIAL IMPLICATIONS The Public Benefits Strategy will have a positive impact on Council's directions for social policy. It will make funds available to: purchase, develop and enhance park space; to provide affordable housing; to improve walking safety and convenience; and to provide additional childcare facilities. Further enhancements to the neighbourhood environment will occur through the city-wide Greenways and Bikeways programs and through public benefits negotiated on a site-specific basis through the redevelopment process. PERSONNEL IMPLICATIONS The Director of Permits and Licenses notes that the proposed DCL area is relatively large and could present a new workload for staff. In the context of a previous DCL report, he recommended that the General Managers of Community and Corporate Services report back on the staffing implications of administering these types of programs as soon as possible. FINANCIAL IMPLICATIONS There are several potential expenditures of DCL and CAC funds that may arise in advance of sufficient funds being available. In cases where land acquisition is at issue, Council has established an interim financing source in the Property Endowment Fund and it is recommended that this source continue to be used in relation to Oakridge/Langara. For other expenditures required in advance of DCL or CAC funding, alternative financing arrangements will be recommended at the time project approvals are brought to Council. Staff note that all expenditures from DCL and CAC funding require specific Council approvals. Although no formal process for reviewing these expenditures has been developed beyond individual project approvals, it is the longer term intent to co-ordinate these approvals with the approval process for other capital expenditures, including those arising from the City s Capital Plans. The provision of new or expanded public amenities from DCL or CAC funding could create the need for ongoing operating costs to added to the Operating Budget. These will be specifically identified as projects are brought forward for approval. Many of these costs will be offset by increased property tax revenue resulting from new development or redevelopment. However, in some cases, additional funding from the city-wide tax levy may be required. CONCLUSION The Public Benefits Strategy provides a comprehensive approach to the provision of new public amenities in Oakridge/Langara. The approach blends the use of DCLs and CACs (in-cash or in-kind) to ensure that new development pays its fair-share toward public benefits to meet the demands created by the new population. In preparing this Strategy a new approach was taken that could be applied in other similar programs. It involved residents in identifying their preferences for public amenities and it provided a community amenity inventory that allowed for an integration of City-standards with resident preferences to ensure new amenities reflect actual needs and are prioritized in a manner that best mitigates immediate impacts from redevelopment and allows for long-term flexibility as new needs arise. The Strategy provides a guide for staff to use in the assessment of redevelopment proposals as they arise. It also provides residents with some certainty as to the public amenities they will receive from new development. * * * * *