SUPPORTS ITEM NO. 2
P&E COMMITTEE AGENDA
FEBRUARY 25, 1999

POLICY REPORT

URBAN STRUCTURE

Date: February 16, 1999

Author: DeMarco/7684

Smith/7846

RTS No. 00163
CC File No. 5317

TO:	Standing Committee on Planning and Environment
FROM:	Co-Directors of Planning, in consultation with the Manager of Real Estate Services
SUBJECT:	Proposed High Technology Zone (I-3)

RECOMMENDATION

A. THAT the Director of Central Area Planning on behalf of Land Use and Development be instructed to make application to amend the Zoning and Development By-law to:

… create a new I-3 District Schedule (High Technology Zone) that includes information technology as a permitted use to 3.0 FSR generally in accordance with Appendix A;

… amend Section 2 to create a definition for information technology and an expanded definition for laboratory generally as outlined in Appendix C; and

… allow general office uses (listed in section 3.2.O) in conjunction with all uses, not to exceed 33_ % of the total gross floor area of all of the principal and accessory uses combined ( section 4.7.1, Appendix A);

FURTHER THAT the Director of Legal Services be instructed to prepare the necessary by-laws for consideration at Public Hearing;

AND FURTHER THAT the applications and by-laws be referred to a Public Hearing.

B1. THAT the Director of Legal Services be instructed to prepare an amendment to the Parking By-law to apply Information Technology uses to Section 4.2.5.2 of the Parking By-law which would have a parking maximum as in the existing FC-1 District Schedule, which provides for reduced parking requirements near rapid transit stations, as outlined in Appendix C-1;

AND FURTHER THAT the Director of Legal Services be instructed to bring forward the amendment to the Parking By-law at the time of enactment of the Zoning By-law.

OR AS AN ALTERNATIVE

B2. THAT with respect to the Parking By-law the regulations pertaining the Information Technology uses follow the existing office provisions as outlined in Section 4.2.5.1 of the Parking By-law.

C. THAT, subject to approval of the I-3 zone at a Public Hearing, the Subdivision By-law be amended to apply the regulations pertaining to the I-2 District to the I-3 District;

AND FURTHER THAT the Director of Legal Services be instructed to bring forward the amendment to the Subdivision By-law at the time of enactment of the Zoning By-law.

D. THAT subject to approval of the I-3 zone at a public hearing, the Director of Legal Services be instructed to bring forward an amendment to the Sign By-law to establish regulations for the I-3 District generally in accordance with Appendix C.

E. THAT, if approved at Public Hearing, the I-3 By-law be accompanied at the time of enactment by an amendment to the Noise Control By-law to include the I-3 District.

F. THAT the revised False Creek Flats Preliminary Concept Plan, as contained in Appendix D, be adopted by Council and that this plan guide future subdivision applications in False Creek Flats.

G. THAT the Director of Central Area Planning on behalf of Land Use and Development be instructed to make applications to amend the Zoning and Development By-law to rezone from I-2 and M-2 to I-3 areas in False Creek Flats generally as shown in Figure 1.

H. THAT a development cost levy district boundary and rates be established for the area in False Creek Flats proposed to be rezoned to I-3 prior to the Public Hearing to rezone lands to I-3.

I. THAT individual property owners in the False Creek Flats area proposed for rezoning to I-3 be allowed to have the option of being rezoned to I-3 or retain their current zoning.

J. THAT owner-initiated rezonings in the Grandview/Boundary Industrial Area be considered upon approval of the Grandview/Boundary Industrial Area Interim Rezoning Policies, which will be proposed in a forthcoming report.

K. THAT the Director of City Plans monitor the amount and type of industry that is locating on lands zoned as I-3 and the impacts on the downtown, and commercial and industrial areas in the city, and report back to Council in three years (2002), or earlier if significant consequences are identified.

L. THAT it be City policy that privately-initiated rezonings to I-3 for industrial sites other than those identified in Figure 1 for False Creek Flats, and lands identified in the Grandview/Boundary Industrial Area Interim Rezoning Policies, be discouraged until Council has considered the monitoring report described in Recommendation K.

GENERAL MANAGER OF COMMUNITY SERVICES COMMENTS

The objective of encouraging high technology industries to locate in Greater Vancouver is a worthy one. The proposal contained in this report may have some marginally positive impact on that objective, but at a high cost to the City's and Region's urban development plans and with potentially expensive implications for our transportation infrastructure.

The definition of information technology creates a use which looks like, feels like, behaves like and for all intents and purposes is "office", with attendant high employment densities and high transportation impacts--particularly if parking is provided without limit and there is not ready access to transit (as is the case with the Finning site). Potential tenants and the real estate industry are not going to appreciate and understand the subtle distinction between "information technology" and general office, and our inspectors are going to find this distinction impossible to enforce. The I-3 districts will become large office precincts.

The proposal in this report will create two or more office areas, with development potential equivalent to two-thirds of the existing office development in downtown Vancouver. Over time, the development of these areas will have significant implications on transportation demand and on the character of surrounding neighbourhoods. They will create employment concentrations which are, in my opinion, counter to the directions of the Livable Region Strategy and CityPlan. These employment concentrations should be directed to the downtown or to regional town centres.

As the alternative of serving information technology demand in existing and planned office areas, consistent with regional and city plans, has not been explored; as the urban structural implications of the current proposal are profound; and as once office potential is created it is much more difficult to reduce; the General Manager of Community Services does NOT recommend the foregoing.

CITY MANAGER'S COMMENTS

While the City Manager supports the development of high technology industry, many of the comments of the General Manager of Community Services should be considered.

If Council wishes to proceed to Public Hearing on the I-3 rezoning, the City Manager RECOMMENDS approval of A to L, and the following additional recommendation:

M. THAT staff report at the Public Hearing on the impacts and interim solutions regarding parking in Recommendation B1 and B2.

The City Manager further RECOMMENDS that Recommendation I be expanded to establish a deadline, prior to zoning enactment, for owners to opt out of the I-3 zoning should Council approve the recommendation permitting same.

The City Manager further notes there is a soil contamination issue affecting City-owned lands in the proposed I-3 area. This involves the requirement to obtain an approval in principle from BC Environment for a soil remediation plan prior to enactment of the zoning. If this cannot be done in time, the City-owned lands may need to be excluded from the rezoning.

COUNCIL POLICY

Council approved the Industrial Lands Strategy in March 1995 which seeks to retain most of the city's existing industrial land base for a variety of industrial and city-serving activities.

Council approved a new district zoning schedule (I-2) in November 1996 as an implementation measure for the Industrial Lands Strategy to better accommodate the needs of contemporary industry and to ensure compatibility of industrial areas with adjoining residential areas. Approximately 1000 acres were rezoned from M-1 or M-2 to I-2. The main features of the I-2 zone are:

a) recognizes labs, production studios, software manufacturers as bona fide industrial uses;

b) increases amount of allowable office space from 25% to 33% of total floor space; and

c) defines computer programming as an office use.

Council approved the False Creek Flats Preliminary Concept Plan in June 1996 which identified areas within the False Creek Flats Industrial Area as a suitable location for a high amenity urban industrial park. This concept plan also identifies lands around the SkyTrain station at Main Street as suitable for office development. Council also approved, in July, 1998, a planning program for the Finning lands to prepare a concept plan and zoning appropriate for a high amenity urban industrial park.

The GVRD Livable Region Strategic Plan promotes the creation of more complete communities through the development of a network of regional and municipal town centres supported by an appropriate level of public transit.

PURPOSE AND SUMMARY

This report responds to a July 23, 1998 Council motion requesting that staff prepare a new I-3 District Schedule for referral to Public Hearing which:

… includes a new definition of high technology which does not require the need for on-site manufacturing or distribution of products;

… permits these uses to a full 3.0 FSR; and

… identifies areas well served by rapid transit for rezoning.

Recent studies have highlighted the importance of growth in high technology jobs to the local and regional economy. An ample supply of land is needed to provide choice for the diverse range of high technology industries. A "high technology job climate" can be facilitated in the City by creating a new industrial zone (I-3) that allows all types of high technology industry development rights similar to other industrial uses. This report contains a draft high technology district schedule and recommends referral to Public Hearing, along with lands to be considered for rezoning. This report further recommends lands that could be considered for owner-initiated rezonings to I-3.

This initiative will provide a large land supply near rapid transit, offering choices for high technology. The recommended zoning schedule responds to preferences expressed by high technology companies to reserve some areas in the city for high technology industries. The existing I-2 industry schedule has been used as a base for the new I-3 schedule. The I-2 schedule has been adjusted to help create an attractive high technology environment by not permitting some uses such as outdoor storage and car lots. Some industries that can potentially create odour or noise have been made conditional to ensure that their impacts will not discourage high technology industry from locating within this new zone.

This report recommends that a development cost levy district be established for the False Creek Flats area. A forthcoming report will make a similar recommendation for the Grandview/Boundary Industrial area. The DCL funds will be used to help pay for street improvements, stream daylighting/drainage, acquisition and development of parks, and sewer/water infrastructure that will help these areas transform from heavy industrial /distribution uses with low density employment levels to high amenity, high employment density areas.

There are some enforcement issues related to the new zone. Under the current industrial zoning schedules industrial uses build industrial space, ie laboratories, studios, production areas and ancillary offices are clearly marked in the approved plans. However, in this new zone, entire buildings will be built to office standards. It is important to the success of these zones that the space is primarily used for high technology uses and general office uses as permitted in the I-3 district schedule. The misuse of this zone could be to the detriment of the downtown and other commercial areas where office uses typically locate.

BACKGROUND

Concern has been expressed that some information technology firms are having difficulty finding sites in the city, especially larger companies that may have outgrown their space in the downtown. Some firms are looking for large floorplates that are not readily available in the commercial areas. In July 1998, Council considered a report that recommended the creation of a new zone for high technology. Upon considering this report, Council passed a motion requesting that staff prepare a new I-3 District Schedule
( High Technology Zone).

The City has a long established policy of concentrating higher density employment in the downtown and in other commercial centres well served by transit. The City also protects the industrial land base and building stock for industries that need production, storage, and loading space. One way to meet these planning objectives, is to expand the supply of land for information technology firms at locations well served by high capacity rapid transit. This will give more choice of location for information technology firms, especially those needing larger floorplates, while at the same time ensure good public transit access for employees and preservation of the bulk of the industrial land base.

Recent studies on the outlook of the BC economy highlight the importance of the high technology sectors in providing new job growth. In recent years, growth in the high technology sector in BC has exceeded 20% per year. The City's challenge is to ensure that there is ample zoned land and buildings to respond to the needs of this growing sector. A study carried out by the Provincial Government (Defining the British Columbia High Technology/Knowledge Sector in British Columbia, January, 1996) used a number of indicators to identify high technology industry, including advanced technology commodity lists, employment of scientists and other highly skilled labour, and expenditure on research and development. These industries make up about 3% of BC business establishments.

High technology employment embraces a wide variety of industry and service activities ranging from electronics manufacturing to software development. Some high technology businesses require industrial space while others require office space. Many types of high technology industry are well served by the city's current industrial zones, such as manufacturing, biotechnology, and new media. However, there are opportunities for expanding the choice of location for some sectors, such as the information technology sector.

Information technology is a high technology use which differs from industrial uses in that these firms generally do not produce a physical product and therefore do not need production and storage space, or goods loading. Information technology firms generally have space requirements and worker densities similar to conventional office uses. Worker densities are usually around 200 square feet per employee in the information technology compared to about 600 to 1200 square feet per employee in other industrial sectors.

Employees in the information technology sector work at computers and produce a diverse range of products, ranging from PC software to software for machinery, or programming to aid in business systems. Many information technology firms have located in office buildings in the Downtown or Central Broadway (i.e., IBM, Seagate, Sierra Systems, Radical Entertainment) and they are a permitted use in all commercial zones. Some have located within industrial areas but in these cases, they are limited byurrent zoning to one third of the total floorspace, to a maximum of 1.0 FSR, as general office use. The proposed I-3 schedule permits Information Technology uses to 3.0 FSR

DISCUSSION

This section outlines the principles and proposed features of a new high technology zone. In preparing this schedule, city staff have drawn on the expertise of high technology zones in other jurisdictions and consulted with a broad cross-section of high technology firms and representatives from office/industrial development industry.

1. GUIDING PRINCIPLES FOR THE NEW HIGH TECHNOLOGY ZONE

There are a number of principles that have been considered in the creation of the proposed high technology zone :

a) ensure an adequate supply of land for all high technology activity and provide an atmosphere that encourages a clustering of high technology industry;

b) concentrate high density employment near rapid transit and seek opportunities to reduce car dependency and increase use of public transit;

c) retain an adequate supply of affordable industrial land.

a) Ensure an adequate supply of land for all high technology activity and provide an atmosphere that encourages a clustering of high technology industry

High technology activity can be broadly grouped into the following sectors:

… Information technology;
… Biotechnology;
… High technology manufacturing; and
… New media. ( e.g., film studios, post-production facilities)

All of the above uses are currently given full development rights in the I-2 zone, except for information technology. An inclusive high technology zone can be achieved by creating a new industrial zone (I-3) with information technology as a permitted use having the same development rights as all other industrial uses. In addition, an expansion of the definition of laboratory uses would ensure that all biotechnology and enviro-technology uses are permitted in this new zone. The zone would also continue to allow high technology manufacturing, and all the facilities such as production studios required to accommodate new media.

One option is to create a new I-3 zone by amending the existing I-2 district schedule to add information technology uses. However, a number of high technology firms emphasised the importance of achieving a high technology atmosphere and preferred a zone where similar industries could cluster.

Many municipalities have special zones among their industrial and commercial zones to create "business park environments" for specific parcels of land. A number of industry representatives from high technology firms were contacted to determine their space and location preferences. Many industries identified the preference for a high technology zone that helps create a "high technology atmosphere" in the city by allowing similar industries to cluster. They cited examples of this atmosphere at the Discovery Parks in Burnaby and UBC and some business parks in suburban municipalities. This atmosphere can be achieved by creating a zoning schedule that permits high technology industry and a broad range of lighter industries but excludes the heavier industry and industries requiring outdoor storage. Urban design standards and open space/Greenways provision can also help create this setting.

b) Concentrate high density employment near rapid transit and seek opportunities to reduce car dependency and increase use of public transit

Some high technology sectors, such as information technology, will make more efficient use of industrial land by increasing employment densities in industrial areas. However, some of the benefits will be lost if the new development increases commuting by car. Consequently, staff propose locating the new high technology zones in areas well served by high capacity rapid transit. The stock of industrial land available in False Creek Flats in the Main and Terminal area and near the proposed SkyTrain stations in the Grandview/Boundary industrial area offer good locations for high technology uses near transit. Increased employment densities adjacent to new SkyTrain stations could be a contribution from the City toward increasing ridership on the new rapid transit line.

c) Retain an adequate supply of affordable industrial land for other industrial activities

Conventional industrial uses have generally developed in the city at densities less than 1.0 FSR, even though the permissible density is 3.0 FSR in I-2 zones and 5.0 FSR in M-2 zones. This is the result of need for ground floor access for loading, high ceilings for production, storage, and parking. It is likely that many information technology uses will take advantage of the allowable density of 3.0 FSR This situation will make it difficult for other industry and service uses to compete with the information technology sector. It is therefore important that a good stock of I-2 land remains available to ensure choice for all other industry. If the areas available for rezoning are limited to areas near rapid transit in False Creek Flats and Grandview/Boundary, this would result in potentially 175 to 255 acres for the I-3 zone. The remaining stock of land zoned as I-2 would be approximately 750 to 800 acres which should provide an adequate supply for a broad range of other industrial uses.

2. PROPOSED I-3 SCHEDULE

A copy of the proposed zoning is attached in Appendix A. Appendix B shows the adjustments made to the existing I-2 district schedule to create the new I-3 High Technology Zone. The section numbering system below corresponds with the proposed I-3 District Schedule numbering as shown in Appendices A and B.

1. Intent

The following intent statement is proposed for the I-3 ( High technology) zone:

The intent of this Schedule is to permit high technology industry, and industry with a significant amount of research and development activity. It is also the intent to permit light industrial uses that are generally compatible with one another and with adjoining residential or commercial districts.

2. Outright Approval Uses

2.2 Uses

2.2.M [Manufacturing]

Most of the manufacturing uses permitted in the existing I-2 schedule will continue to be permitted in the new I-3 schedule. This allows for a broad spectrum of "clean industry". All manufacturing activities that were outright approval uses in the I-2 schedule but potentially have negative environmental impacts or could detract from the "high technology atmosphere" have been listed as conditional uses rather than outright uses in the new I-3 schedule. Some particularly noxious manufacturing activities that required conditional approval in the I-2 schedule, have been deleted from the I-3 schedule, ie paper, chemical and chemical products manufacturing, rubber and linoleum, and vegetable oil manufacturing.

2.2.O [Office]

The main "enabling" feature of the new I-3 zone is the addition of a new outright use in the schedule called high technology uses, under Section 2.2.O [Office]:

… General offices, but limited to information technology.

A new definition would appear in the Section 2 "definitions" of the Zoning and Development By-law and this use would continue to be permitted in all current zones that permit offices:

Information Technology means the development or production of computer software, and the design or research of computer, electrical, electronic or communications equipment, and similar products.

This definition is meant to allow information technology uses to locate in the new I-3 zone. However, simply using a computer for work does not qualify a firm to use space in this zone. For example, the definition does not include "stand-alone" firms providing real estate, insurance, legal, advertising, accountant, or financial services as these uses are more appropriately located downtown and in other commercial areas. However, some office uses that are not high technology uses would continue to be permitted as general office on a conditional approval basis, such as architectural/engineering offices, data processing, call centres, see section 3.2.O below.

It would not be desirable to permit a broad range of office uses as outright uses in these areas for the following reasons:

i) the space should be reserved for high technology uses: The use of space in the high technology zone for non-high technology activities diminishes the supply of space and takes away from the "high technology atmosphere". Many high technology firms have expressed the desire to be near similar industries;

ii) there is capacity in the downtown, Central Broadway, and in existing neighbourhood centres to provide for a range of other office uses; and

iii) the commercial service needs for the high technology workers and firms ( i.e., lawyers, accountants, insurance firms, etc.) can be met by relying on nearby commercial areas to provide these services. In the case of False Creek Flats, commercial zoning is well situated near the SkyTrain station and along Main Street. If the need arises, some additional commercial space may be accommodated through rezoning in conjunction with industrial activities within False Creek Flats over time. In the case of the proposed Grandview/Boundary SkyTrain stations, it is expected that commercial zoning will be provided adjacent to the stations.

The option of designing the schedule by listing the office uses that are not permitted was explored. However, the legal department and by-law administrators recommended that the by-law would be easier to administer by providing a clear definition of information technology uses.

2.2.S - [Service]

An expansion of the definition of laboratory would be added to Section 2 Definitions to clarify the inclusion of a broad range of high technology firms :

"Laboratory, which means the use of premises not providing service directly to the public for the provision of analytical, research, or testing services, including biotechnologies and energy and environmental technologies, but does not include Photofinishing or Photography Laboratory*"

*Photofinishing and Photography Laboratory are listed as a separate permitted use in the industrial district schedules.

3. Conditional Approval Uses

3.2 Uses

3.2.I [Institutional]

Education facilities offering training in high technology industry can be an important complementary activity in high technology zones. Accordingly trade schools and universities and colleges that cater to high technology industry are listed as conditional uses. On the other hand, a number of uses which are not considered appropriate in a high technology zone and were listed as conditional uses in the I-2 schedule have been omitted from this schedule, such as auction halls and funeral homes.

3.2.O [Office]

In the existing I-2 schedule, general office uses are permitted as a conditional use up to a maximum of 33 1/3 % of the total floor area of all principal and accessory uses combined, and up to a maximum of 1.0 FSR. These office uses do not need to be related to the principal use, i.e. they can be entirely separate businesses. However, certain "stand alone" office uses are not permitted: accountants, lawyers, and notary publics nor the offices of real estate, advertising, insurance, travel and ticket agencies. All other types of offices are permitted, e.g., data processing centres, offices of service and manufacturing establishments, non-profit groups, professional offices of architects, engineers, consultants, graphic artists.

The policy objectives behind this regulation were 1) to provide sites for a number of "back office" functions to locate in combination with industrial uses but not become the primary use, 2) to help industrial users make more efficient use of industrial land. For example, a firm could put their own manufacturing and ancillary office uses on one floor and the second floor could be built out as office space for a completely separate tenant.

With information technology added as an outright use, it would be possible to build, for example, 2.0 FSR for information technology firms, and 1.0 FSR for a range of other offices , i.e., architects, engineers. This could result in entire buildings built to office space standards. There is some concern that this option would promote more office space construction in the I-3 , and make it difficult for other industrial uses to compete. If this is a concern, current regulations for general office space could continue to apply to all uses except information technology uses.

3.2.R [Retail] and
3.2.S [Service]

A number of high technology firms have expressed a need for convenient services within walking distance of the high technology zone, e.g., restaurants, print shops, dry cleaners, accountants, corner shops, cafes, fitness centre. Two options were considered for accommodating these uses:

1) allowing a limited percentage of floorspace on all sites for these services; and

2) clustering these uses in nearby commercial areas.

Option 1 gives flexibility to the individual property owner but it spreads these uses over a broad area and may result in some services being poorly situated. Option 2 is preferred for a number of reasons. First, both areas proposed for high technology zones offer opportunities for a clustering of commercial uses. In the case of False Creek Flats, the Main/Terminal area has a good supply of commercial land. In the case of Grandview/Boundary, it is desirable to cluster these uses near the SkyTrain stations to ensure "eyes on the street" around the stations and maximize accessibility. The clustering will also help create a more interesting urban environment. Over time, if it is determined that more areas are needed to serve workers, the commercial service areas can be expanded.

The I-3 schedule would continue to allow some services and small restaurants as conditional uses. However, a number of conditional uses have been removed in order to help create "high technology atmosphere," such as vehicle dealers, furniture, retail stores, auction halls, funeral home, and drive-in restaurants.

4. Regulations

4.3 Height

The height permitted in the proposed I-3 schedule would be identical to the I-2 schedule. A height of 60 ft. (18.3 m) would be permitted outright, and heights exceeding 60 ft. (18.3 m) up to 100 ft. (30.5 m) ft. would be conditional, depending on the impact on adjoining residential areas.

4.7 Floor Space Ratio

The maximum FSR permitted in the proposed I-3 schedule would remain unchanged at 3.0 FSR

An amendment made to section 4.7.1(a) includes information technology (Office Uses listed in Section 2.2.O) as an outright use and these uses can develop up to the full 3.0 FSR. Other changes to section 4.7 are minor wording amendments to improve clarity of this section.

3. PARKING AND LOADING

Transportation services is a critical issue in the creation of high technology zones in an urban setting. The lack of public transit is one of the key concerns of high technology firms located in suburban areas. On the other hand, software firms located in the downtown and Central Broadway cited "access to public transit" as a critical location benefit. The information technology sector in particular has high worker densities, ie around 200 square feet (18.6 m²) per worker. For example, a building of 100,000 square feet could generate 500 cars in the morning peak if everyone took a car.

Proximity to rapid transit was the key criteria in choosing the location of the high technology zones. Eventually the Grandview/Boundary area is expected to be serviced by a new SkyTrain service. Parts, though not all, of the False Creek Flats, are now within easy walking distance of high capacity rapid transit.

Given the timing for improved transit services, two options are presented for parking regulations.

Recommendation B1: Provision of a Parking Maximum

This recommendation looks to the longer term, when new transit services are in place, and proposes limiting parking for high technology uses to encourage workers to commute by transit.

Offices ( including information technology firms ) locating in the downtown currently have parking maximums as outlined in the Parking By-law. These maximums range from a maximum of one space for each 860 square feet (80 m²) of floor area to one space for every 1076 square feet (100 m²) of floor area, depending on what part of the downtown. Around Main and Terminal, in the FC-1 zone there is also a parking maximum of one space for every 500 square feet (46.5 m²). These maximums help ensure good use of transit infrastructure and are consistent with the City's Transportation Plan goals of accommodating the future growth in trips to the downtown through transit rather than adding additional car volumes.

Recommendation B1: Parking Maximums
(same provisions as FC-1 zone at Main and Terminal)

	COLUMN 1 BUILDING CLASSIFICATION	COLUMN 2 REQUIRED PARKING SPACES
4.2.5	Commercial
4.2.5.2	Office Uses in the following districts: FC-1, I-3	A minimum of one space for each 70 square metres ( 754 ft2) of gross floor area and a maximum of one space for each 46.5 square metres ( 500 ft2 ) of gross floor area.

Recommendation B2: No Parking Maximum

In the short term high capacity rapid transit is not available in the Grandview/Boundary area. Even the existing 99B does not stop along the Broadway industrial frontage. Rapid transit service is currently available from the Main Street Station. This serves a portion of False Creek Flats.

Given the current transit services, a second recommendation is presented which does not place a maximum on the provision of parking for information technology uses. Recommendation B2 would permit applicants in I-3 areas to provide parking more in line with standards currently experienced in suburban office parks.

Suburban office park developments most often provide 4 or 5 spaces per 1000 square feet of floor space, reflecting the fact that everyone must come by car because public transit is minimal or non-existent. Preliminary discussions with the development industry indicate that information technology firms would ask for at least 3 spaces per 1000 square feet in False Creek Flats and in the Grandview/Boundary industrial area. This is three times the amount of parking permitted in the central office core of the downtown.

In Central Broadway and other office areas outside the downtown, there are currently no parking maximums but most developments do not provide more than the maximum of 1 space for each 538 square feet (50 square metres) required in the Parking By-law. Residential parking permit areas are required to prevent impacts of parking overflow on adjoining residential areas.

Some members of the development industry have expressed the view that parking maximums in the proposed high technology zone may inhibit development, at least in the shorter term where proposed high technology zones are not as accessible by public transit as the downtown. They also note that some firms have a certain proportion of employees who work irregular hours when transit service is poor or not provided and therefore need a car to get home.

Recommendation B2:No Parking Maximums

	COLUMN 1 BUILDING CLASSIFICATION	COLUMN 2 REQUIRED PARKING SPACES
4.2.5	Commercial
4.2.5.1	Office Uses	A minimum of one parking space for each 100 square metres (1076 ft2 )of gross floor area up to 300 square metres, and one additional space for each additional 50 square metres (538 ft2) of gross floor area.

Should Council prefer Recommendation B2, staff will include in the Monitoring Recommendation( K) the topic of transit access. As transit access improves in the areas zoned for high technology a maximum parking standard may be proposed to discourage commuting by car and encourage transit use.

It is proposed that existing Parking By-law standards for all other uses in the I-3 remain the same as existing standards for the I-2 District Schedule. The Parking By-law makes provision for parking standards to be relaxed if an applicant can demonstrate that required number of spaces are not needed.

Loading

The existing loading space requirements for office and industrial uses in the I-2 schedule are:

	COLUMN 1 BUILDING CLASSIFICATION	COLUMN 2 REQUIRED LOADING SPACES
5.2.2	Office Uses	A minium of one loading space for each 2 800 m¾ ( 30,000 ft2) of gross floor area.
5.2.4	Laboratory; Production Studio; Manufacturing Uses	A minimum of one loading space for the first 465 m¾ ( 5000 ft2) of gross floor area plus one space for any portion of the next 1 860 m¾ (20,000 ft2) and one additional space for each additional 2 325 m¾ ( 25,000 ft2).

It is proposed that loading bay standards for office buildings and other industrial uses remain the same as current regulations. However, it is noted that where office standards are applied, the ability to provide flexibility for future uses of the building may be limited. The necessity of loading bays can vary significantly depending on the nature of the activity. The Parking By-law makes provision under Section 3.2 for the Director of Planning to relax loading requirements if it can be demonstrated by the applicant that the loading spaces are not required. In some cases, it may be practical to downsize conventional loading spaces to courier spaces to satisfy loading and delivery needs.

4. PROPOSED LOCATIONS FOR I-3 ZONE

Two locations considered appropriate for high technology have been identified: False Creek Flats Industrial area and the Grandview/Boundary Industrial Area.

The lands identified in the False Creek Flats Preliminary Concept Plan as suitable for high amenity urban industrial parks near rapid transit are well suited for the new high technology zone. As shown in Figure 1, this creates a high technology land supply of about 125 acres (50.6 ha). If this land is developed at 1.0 FSR, the potential floor space would be about be about 5,500,000 sq. ft. (506 400 m¾) and if densities of 3.0 FSR are achieved the floor space could total 16,000,000 sq. ft. (1 520 200 m¾). By way of comparison, the downtown currently has about 25 million square feet of office space.

The Grandview/Boundary Industrial area offers opportunities adjacent to rapid transit. provided that the proposed SkyTrain is built. In the event that SkyTrain is not built, additional stops for the 99B Express Bus would be needed to serve this area. The area that might be rezoned within easy access of proposed stations could total between 50 to 130 acres (20 ha to 53 ha), depending on station location, demand, etc. If these lands are developed at a density of 1.0 FSR, this would result in a supply of about 2 million to 5.6 million sq. ft. ( 200 000 m¾ to 526 000 m¾). If this area developed at 3.0 FSR , between 5.0 million to 16 million sq. ft. would be available for high technology uses.

This results in a supply of at least 175 to 255 acres (71 ha to 100 ha), about 20% to 25% of the I-2 land supply in the City. This could result in floor space on I-3 lands in the range anywhere from 7 million to over 30 million sq. ft., depending on the floor space achieved. It is difficult to estimate the annual absorption rate for high technology. At current growth rates, it is estimated that demand for industrial sites for high technology industry could reach about 100,000 to 200,000 sq. ft. a year (9 290 m¾ to 18 580 m¾). Accordingly, several decades supply would be created through this zoning initiative.

5. IMPLEMENTATION

There are many different ways of implementing the I-3 zoning. The practice and experience in other municipalities in the Lower Mainland were investigated to determine implementation measures that meet city objectives, encourage private industry investment, and could be executed in a timely manner. For example, in the high technology parks in Burnaby the planning and approval process is carried out in two stages. First an overall concept plan is done for the business park outlining roads, public space, urban design standards, etc. Individual CD rezonings are then initiated for each individual development. In Richmond, heavy industrial land is converted to business park zones through owner-initiated rezonings. It is recommended that a combination of approaches be used in Vancouver to help achieve choice of location and high technology environments in False Creek Flats and Grandview Boundary Industrial areas.

1) False Creek Flats

a) City-initiated I-3 zoning

In 1996, City Council approved the Preliminary Concept Plan for False Creek Flats. It identified areas suitable for high amenity urban industry. These areas identified in the approved concept plan are considered suitable for high technology industry. The concept plan has laid out land use policies as well as a conceptual road pattern and Greenway options. Appendix D provides some more detailed amendments to this concept plan to ensure that subdivision occurs in an orderly fashion.

Street layout options for False Creek Flats have been revised to include the street network proposed for the Finning property which connects to future streets north of Industrial Avenue. Consideration has now been given to a street pattern over the CN South Railyard, which in 1996 was expected to remain for the long term, but which may see partial redevelopment sooner. Other minor changes have been made to the previous road options as new information regarding sewer alignments and transportation needs has become available.

The open space and greenway connections plan has been revised to include the proposed greenway and park on the Finning site. Also added to this plan are optional routes for a daylighted stream from China Creek Park and the Grandview Cut to False Creek.

With the amended concept plan in place and I-3 zoning in place, these areas of False Creek Flats could be developed immediately for high technology uses. Accordingly, it is recommended that the 125 acres identified in False Creek Flats (Figure 1) as appropriate for rezoning to I-3, proceed to Public Hearing as a City-initiated rezoning.

It is recommended that a development cost levy district boundary and fee structure be established for False Creeks Flats prior to the Public Hearing on the I-3 District Schedule. This levy will help pay for infrastructure upgrades to support higher employment densities, acquisition of Greenways, etc. The levies need to be low enough to ensure that development is not discouraged but at the same time it is important that the rates contribute to the costs of servicing this area.

Some existing industries in False Creek Flats have expressed concern that property values and taxes may increase with the new zoning, to the detriment of business operations . It is therefore recommended that individual landowners who choose to opt out of the new zoning be allowed to do so.

A special opportunity to promote high technology is available to the City in False Creek Flats. The City owns 7 acres of industrial land and buildings within the area proposed for rezoning to I-3. These buildings presently provide space for a range of small industrial activities and services. Many of the existing buildings are old and have not been upgraded. These properties could provide an opportunity for the city to supply incubator space to a wide range of businesses, both high technology and traditional industry. Such a venture could be taken on by the City or as a joint public/private initiative.

b) Great Northern Technology Park

Planning is currently underway in the southern portion of False Creek Flats on 40 acres (16.2 ha) of land between Great Northern Way and Industrial Avenue. This land is part of the sub-area identified in the 1996 False Creek Flats Preliminary Concept Plan as suitable for high technology redevelopment and has been included in the lands proposed for a City-initiated I-3 zoning. The principal landowners are Finning (26 acres) and BNSF railway (10 acres).

With the I-3 zoning in place, Finning could still decide to rezone a portion of the area to CD-1. Based upon the preliminary findings of the applicants in investigating high technology parks throughout North America, the CD-1 application could possibly include a hotel, a limited amount of live-work, and some retail and service uses to meet the needs of the Technology Park workers. These activities have been identified as important associated uses for a high technology. These other land uses will be evaluated on their merits and in regard to the implications on similar uses in the area. The CD-1 would also allow for a varied building height strategy. Some areas of the site would be proposed to be built to 100 ft. (30.5 m¾) in height, while other areas would be much lower in order to preserve upland views.

Apart from the amenity provided by a wider range of land uses, there are other amenities associated with a high technology park which are beneficial to the businesses and public alike. New streets are to be provided which will connect Great Northern Way to Industrial Avenue and will open up the southern part of the Flats. A greenway route is to be provided across the site and at the centre of the technology park, a public open space is planned. These amenities, which are integral to the worker environment in a high technology park will serve as public benefits in the rezoning.

As parts of the technology park are beyond walking distance to the SkyTrain station, special attention will need to be paid to improving transit/car-vanpooling/cycle/and pedestrian access to this area.

2) Grandview/Boundary I-3 Rezoning Process

There is no concept plan approved for the Grandview/Boundary area. Staff are currently working on this concept plan. Station area planning for the new SkyTrain has also been initiated in this area. Rather than wait for completion of these plans, staff will shortly be reporting on a set of principles and procedures for rezoning in Grandview/Boundary Industrial Area. These interim policies will indicate areas suitable for I-3. They will ensure that opportunities are identified for improved internal and external traffic circulation, pedestrian and cycling routes, Still Creek daylighting, and the application of broad landscape and urban design guidelines.

With approved interim rezoning policies for the Grandview/Boundary Industrial Area, Council could then consider individual owner-initiated rezonings to the I-3 schedule. A forthcoming report recommends that owner-initiated rezonings be the main mechanism for implementing the high technology zone in the Grandview/Boundary area until a concept plan is in place to guide redevelopment. This will allow high technology development to proceed without having to await completion of station area planning.

Applicants seeking a rezoning to I-3 will need to demonstrate how their proposal responds to future rapid transit stations, area infrastructure, and amenity requirements. This gives the City the assurance that amenity and access needs are met as the lands go through a transition of large tracts of unsubdivided heavy industrial land to smaller lots of high technology/light industrial uses. Rezoning gives the City the ability to acquire public rights of way, roads, access, open space as needed. An accelerated rezoning process could be achieved as the I-3 District Schedule is already prepared and rezoning fees are less as owners would apply to change to the I-3 zoning schedule, rather than a CD-1.

A development cost levy boundary will need to be established for the Grandview/Boundary industrial area. When the station area planning programs are complete, the Interim Rezoning Policies will be replaced by an area plan. Once the concept plan and development cost levies are in place a City-initiated rezoning to I-3 could be considered for the area.

3) Other Areas to be Considered for I-3 Zoning

There have been a number of inquiries from industrial landowners on the possibility of having lands rezoned as I-3, such as on the Fraser River, and around Clark Drive. It is recommended that sites in other areas not be considered for rezoning to I-3 until Council has considered a monitoring report on the amount and type of industry that is locating on I-3 lands and the impacts on commercial and industrial areas in the city to determine if areas are meeting the intent of the new schedule. The appropriate time period for a monitoring report is around three to five years, to enable the market to respond to this rezoning initiative.

6. LIKELY IMPACTS OF THE NEW HIGH TECHNOLOGY ZONE

a) Impact on the Downtown and Commercial Areas

The downtown and Central Broadway areas now provide sites for the information technology sector. Five of the largest software developers in the region are located in the Central Area. A number of factors have been identified by high technology firms which make the central city particularly attractive: proximity to public transit; proximity to entertainment, shopping, and restaurants; downtown university/college campuses and film school; stock of recyclable older, attractive buildings; ample bandwidth available; hospital complexes for the biotechnology industry; and nearby residential areas.

CityPlan and Central Area Plan policies recognize the importance of a strong and vibrant downtown. The continued use of downtown space for information technology, i.e., downtown core, Yaletown, Victory Square, and Gastown should be encouraged. Some cities have certain areas of their inner city earmarked for high technology firms. New York, for example, has "Silicon Alley" and San Francisco has "Multimedia Gulch".

It is expected that the downtown and Central Broadway will continue to be the preferred choice for many high technology firms. The new high technology zone, however, will provide more choice in location and provide the flexibility to build larger floorplates, which is often difficult in the downtown.

b) Impact on Industrial Activity

It is likely that many types of industrial activity will not be able to compete with the information technology sector for space within the I-3 areas. Information technology uses are likely to be able to achieve the full 3.0 FSR, compared to a typical industrial densities of 0.7 FSR. Consequently information technology uses will likely yield higher rent/land price returns than typical industry. The potential supply of I-3 lands resulting from areas identified in this report is about 175-255 acres. The remaining stock of I-2 and M-2 lands (1,400 to 1,500 acres) will continue to be available for a broad range of industries, transportation and storage, utilities, etc. requiring industrial land.

c) Impact on Property Taxes

Some owners of existing industrial firms have expressed concern that their property taxes would go up if their lands are rezoned to I-3. It is difficult to predict what will happen to property values but if the market does provide buildings at densities greater than 1 FSR, it is probable that land values will rise.

If land values do in fact increase, this would result in an increase in the assessed commercial/industrial tax base.

It is recommended that property owners who do not wish to be rezoned to I-3 have the option of remaining zoned as I-2. However, if these owners do decide later that they would prefer an I-3 zone, they will need to pay rezoning fees.

d) Enforcement

There are some enforcement issues related to the new zone. Under the current industrial zoning schedules, enforcement is fairly straightforward. Industrial uses build industrial space, ie laboratories, studios, production areas, etc. and ancillary offices are clearly marked in the approved plans. However, in this new zone, entire buildings will be built to office standards. It is important to the success of these zones that the space is primarily used for high technology uses and general office uses as permitted in the I-3 district schedule. The misuse of this zone could be to the detriment of the downtown and other commercial areas where office uses typically locate.

Proposed uses will be checked upon application of a business licence It is proposed that the areas rezoned to I-3 be monitored and periodically checked by Property Enforcement Officers to ensure that the intent of the new zone is being respected. If concerns arise, these will be reported to Council with options for action.

CONCLUSION

The high technology zoning initiative will expand the choice of locations for certain sectors of high technology industry, primarily the information technology sector. It is recommended that the High Technology Zone be implemented by referring to Public Hearing the proposed zoning schedule to initially apply to 125 acres identified in False Creek Flats. For the Grandview/Boundary area, it is suggested that owner- initiated rezonings for areas located near proposed SkyTrain stations be guided by Grandview/Boundary Industrial Area interim rezoning policies contained in a forthcoming report.

ATTACHMENTS TO THIS DOCUMENT THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ON FILE IN THE CITY CLERK'S OFFICE

* * * * *

(c) 1998 City of Vancouver