Agenda Index City of Vancouver

POLICY REPORT
URBAN STRUCTURE

TO:

Standing Committee on Planning and Environment

FROM:

Director of Central Area Planning

SUBJECT:

VGH Precinct - Medical Biotechnology Proposal

 

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Council Policy regarding Vancouver General Hospital (VGH) consists of a series of resolutions listed in Appendix C, of which those with immediate relevance are quoted below.

PURPOSE AND SUMMARY

Mark Betteridge and Associates (MBA) Inc. on behalf of the Vancouver Hospital and Health Sciences Centre (VHHSC), proposes rezoning to develop up to 700,000 sq. ft. of leasable floor area for medically oriented biotechnology (bio-tech) uses on parts of the VGH site where redundant facilities are expected to be demolished. Some housing is also proposed. However, these uses are not currently permitted; the VGH Open Space Plan and current legal agreement may not provide appropriate locations for such development; and floor area is proposed which exceeds expected demolition. Therefore a CD-1 text amendment rezoning would be required to introduce appropriate use terms and added floor space potential. To provide a framework for a specific rezoning application, significant policy issues concerning appropriate uses, open space and relationships to surrounding districts require analysis.

This report outlines recent VGH precinct history and recommends a planning program involving a dedicated staff team based on full cost recovery to review the policy framework, determine the feasibility of accommodating bio-tech development and respond to a possible subsequent rezoning application. Staff believe that a comprehensive land use and urban design analysis of the precinct could identify options for siting high tech biomedical buildings, while achieving VHHSC's full open space commitment. Alternate configurations and locations could yield an equal area and quality of open space while providing development sites for businesses which benefit from proximity to VGH. The precinct must
also maintain capacity for future hospital needs and not encourage commercial or bio-tech uses which could locate in the Broadway C-3A District. This must be achieved without introducing unacceptable traffic, adjacency, environmental or visual impacts affecting nearby communities.

DISCUSSION

Background

Zoning: The VGH CD-1 zoning provides only for hospital related uses, with ultimate 2.23 FSR and 50% site coverage limits contained in Council resolutions. The FSR has been adjusted by Council resolution to reflect site area changes. Both FSR and site coverage have been increased for temporary periods to permit staging of development and demolition. The duration of the original temporary increase in June 1988 to accommodate the new tower (LSP-2a, see Appendix D) is subject to a Section 215 covenant. Subsequent temporary increases have resulted in site coverage of 55.48% and 2.40 FSR. Demolition of old buildings would restore site coverage to 42.5 % and density to 2.04 FSR.

Park Commitments: The Open Space Agreement reflected in the above noted covenant is based upon a Landscaping Plan approved as DP 95998 in April 1989. A separate 1985 legal agreement requires VGH to provide an alternate site for the existing tennis courts if the site at 12th and Oak is redeveloped. In 1984 Council rezoned the area south of VGH to RM-4 Multiple Dwelling District, permitting a significantly higher density which anticipated the agreed upon VGH public open space development. Recent Park Board resolutions have reaffirmed the Board's expectation of achieving these open space commitments.

Conceptual Development Plan: In response to the 1991 Ambulatory Care (LSP-2b) application, Council required preparation of a master plan. In 1992 VGH responded with a Conceptual Development Plan: 1992-2002, which enlarged the future open space to include the power plant site, offsetting the area occupied by the 1906 portion of Heather Pavilion, proposed for retention by the Heather Heritage Society. Based on this plan (Appendix E), Council approved resolutions contained in Appendix C of which the following relate to open space:

A. THAT Council endorse the draft Conceptual Development Plan 1992-2002, including the revised open space boundaries, subject to the following changes:

B. THAT VGH be advised that the additional floor space, other than that specified in Recommendation D, and a development permit for LSP 2B (Ambulatory Care Centre), will not be approved by the City until the requirements set out in recommendation A are reflected in a revised open space agreement.

Heather Pavilion Resolutions: On April 22, 1997, Council approved the following resolution to give proponents of retaining the Heritage Registry B-listed Heather Pavilion reasonable time to bring forward a future use of that structure, once plans to vacate it permit prospective users to make commitments:

THAT the Heather Heritage Society and the Vancouver Hospital and Health Sciences Centre (VHHSC) be advised that Council would consider re-use proposals for the Heather Pavilion (1906 portion), including a rezoning if necessary, for up to one year after VHHSC vacates that building; and

FURTHER THAT VHHSC be requested to notify the City and the Heather Pavilion Society at least six months in advance of the intended date to vacate the 1906 Heather Pavilion.

Nurses' Residence: A July 1992 report of the Director of Permits & Licenses regarding illegal occupancies and by-law deficiencies in that building, as well as ongoing concern about increased site coverage, floor area and lack of promised open space prompted the following October 1993 resolution of Council:

THAT VGH be requested to demolish the former Nurses' Residence and develop, at the earliest possible date, an interim public open space on that site to serve only until completion of a 2.2 ha (5.5 ac.) open space north of West 12th Avenue (plans to be reviewed by Vancouver Park Board).

Current Status of Development: Podium level space in the tower has been completed. Development applications are expected to deal with interior completion of the tower later in 1999. Once occupancy reaches 70%, the first legal obligation will take effect requiring demolition of the first phase of older buildings within a 24 month period. The proposed single phase demolition is not in effect because the application for LSP-2b (Ambulatory Care) was withdrawn and Council condition A above has not been fulfilled. However, a new development application for LSP-2b is now anticipated and the process recommended in this report could result in fulfilment of these conditions or a new proposal. A revised sequence of demolition could be approved as a result. The former Nurses' Residence remains largely vacant and may provide some potential options for socially beneficial housing.

Biotechnology Proposal

Introduction of land use terms to accommodate medically oriented biotechnology businesses wishing to grow beyond the incubator stage in the VGH precinct could offer the hospital a potential long term revenue source, while encouraging the formation of business enterprises involving on-site medical practitioners and researchers. Direct linkages to the hospital and teaching function provide immediate access to clinical experience and ideas which can spawn innovation. This would allow on site professionals to capitalize on their knowledge. Immediate proximity to a major hospital, particularly one with university linkages, permits professionals to continue practices, while managing research based businesses on site. This opportunity is expected to attract high quality professionals to VGH and UBC.

There is a growing trend toward this symbiotic relationship, with 80% of Bio Parks world wide being located in association with teaching and research hospitals. This type of precinct benefits from a high quality urban environment, preferably including park sites and attractive streetscapes. Nearby transit services and a range of commercial services providing convenience, restaurant, hotel and conference space are desirable. A similar proposal for 250,000 sq. ft. of research facilities on the C-3A zoned 600 block West 10th Avenue (north side) is anticipated from the B.C. Cancer Institute in the near future. These sites would fill out the range of locational options for high technology uses and contribute to the critical mass needed in the city to attract broader investment interest and research personnel.

Planning staff believe a comprehensive planning analysis of this precinct could generate options to provide open space equal to or better than that currently reflected in legal agreements, as well as accommodate bio-tech development. To account for linkages to surrounding areas, the study precinct, as distinct from the zoning district, would be defined to extend from Oak to Yukon Streets and from Broadway to 13th Avenue.

There are several potential sources of anxiety for surrounding communities. Proposals for additional buildings could raise concerns over potential loss of the anticipated open space. Construction of the new tower left a legacy of sensitivity to loss of views. Traffic and parking are perennial concerns in the area which new development must seek to alleviate rather than intensify. There are also environmental considerations associated with biotechnology which may need to be assessed at arms length.

Policy Review and Rezoning Process

An updated comprehensive policy context is needed as a basis for considering a rezoning. The existing policy context apparently is not serving the hospital's evolving future needs. However, community and Park Board expectations cannot be diminished by the continuum of changes in health care. A policy review would assess existing policy; proposed program and built form concepts; long term hospital needs; possible housing options within the precinct; traffic, pedestrian and other movements through the precinct and relationships to surrounding districts. This work would form a basis for engaging an urban design consultant to develop several site planning options, presenting alternate open space concepts.

A series of discussions with adjacent communities, Park Board representatives, City staff and the proponent would then assist in evaluating these options in terms of public, institutional and economic objectives which could be achieved. Staff would develop guiding recommendations for an acceptable rezoning proposal based on this evaluation. The extent of appropriate increases in FSR would be related to options for achieving broadly supported open space configurations, timing of its implementation and comparative densities in adjacent districts. Analysis of fundamental rezoning issues such as density, built form, traffic and parking needs for the B.C. Cancer Institute application would be closely linked to this study in the initial stages.

At the outset, it is important to note that staff have not prejudged the appropriateness of altering any of the existing policies or zoning. The process promises to seek options which broaden the range of public objectives achievable, by incorporating substantial opportunities for biotechnology focussed on hospital related research without sacrificing current public expectations. Alternatives must work better than existing commitments for all parties. Park Board, Engineering and related Community Services staff have been consulted in preparing this program and will be continuously involved in policy and rezoning reviews.

Staffing Resources - Full Cost Recovery

Proposed City staffing and resources to complete a policy review, assessment of a rezoning application and enactment are outlined in Appendix B. Although rezoning fees would provide partial cost recovery, those fees are not structured to reflect the cost of extensive policy analysis and public process leading to a rezoning application, as would be needed in this case. Therefore, to ensure full cost recovery, an additional contribution by the proponent would be needed to provide a dedicated staff team and management through the major projects process.

Where possible, existing City staff resources will be utilized, but temporary staff as well as other resources will be needed to meet the schedule needed by the proponent. Initial exploratory discussions and related work were undertaken with existing City staff resources. The estimated value of that work is in the order of $ 30,000.

A sixteen-month policy review and rezoning program is recommended. The interdepartmental major projects management structure would be applied to this program, led by planning staff, reporting to the Major Projects Steering Committee and involving Council workshops at key points in the process. This is consistent with established practices for large inner-city projects. Initial phases, including preparation of this report, are being undertaken by staff who normally respond to rezoning enquiries and policy initiatives in Central Area. The same staff will also process a related application from the BC Cancer Institute on 10th Avenue, which will be more or less cost recovered through the normal rezoning fees. The in-depth stages of the study when dedicated staff will be provided for this program will be completely cost recovered by the recommended financial contribution by the proponent. VHHSC and the development proponent agree with the program outlined in this report and will pay the cost of this process to the City, to be credited toward rezoning fees if a rezoning ensues.

The policy review and rezoning process for VGH is estimated to cost $280,309 as detailed in Appendix B. To ensure full cost recovery it is recommended that developer's contributions be provided up front. If a rezoning application proceeds after the policy review process, contributions will be credited against rezoning fees. If rezoning applications do not ensue, further City resources would not be used and unspent funds would be reimbursed to the proponent. If a significant delay occurs, a pro-rated additional monthly contribution may be required to retain staff and related resources.

Proponent Comments

By letter of June 8, 1999, VHHSC confirms its desire to engage in the process outlined in this report and has agreed to fully provide the necessary financial contributions for City cost recovery to complete this work.

Park Board

Park Board staff have reviewed this report and concur that it accurately reflects recently re-affirmed policies with respect to open space in the VGH Precinct.

Conclusion

Medically oriented bio-tech development proposed for the VGH Precinct, would benefit from direct proximity to a major hospital with teaching and research functions. This location, adjacent to the Broadway C-3A Commercial District, is likely to benefit from the availability of nearby commercial services and is likely to also generate development opportunities within the commercial district. This type of development also typically benefits from a high amenity environment, consistent with providing high quality on-site open space. Nevertheless, there remain issues of potential concern which surrounding communities will wish to have thoroughly assessed. The public, Park Board and Council also have long standing expectations with respect to restoration of FSR and site coverage limits and provision of public open space.

A thorough analysis of land use and urban design factors in the VGH precinct could generate options for high-tech biomedical research based companies, while achieving at least as desirable an open space plan for the precinct as previous commitments would require. Some of the desired development potential can be achieved within the long term development potential of the existing zoning subsequent to demolition of redundant structures. Additional floor area may prove to be supportable in the context of a CD-1 text amendment rezoning which would introduce suitable use terms and potentially provide for some forms of housing within the precinct. The recommended fully cost recovered planning program would provide guidance to proponents on what would constitute a potentially supportable application as well as a basis for evaluating such a proposal.

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

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