TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: March 4, 2024 Report No. DEV-24-013
TO: Council
FROM: James Davison, Manager of Development Services
SUBJECT: Development Permit and Development Variance Permit - 900 Carlton Terrace/900 Esquimalt Road - File No. DEV-23-013
RECOMMENDATION:
Recommendation
That Council approve Development Permit No. DP000221 and Development Variance Permit No. DVP00138 and instruct the Director of Development Services not to issue either permit until the Section 219 Covenant, which will secure the amenities and the transportation demand management (TDM) measures, as described in staff report DEV-24-013, is registered on title.
Body
EXECUTIVE SUMMARY:
The applicant has applied for Development Permit and Development Variance Permit to construct a 272-unit mixed-use building with a Floor Area Ratio (FAR) of 4.7. The application proposes a mix of condo units (176), rental units (96), and 730m2 (7858 ft2) of commercial space. The two subject properties are zoned Neighbourhood Commercial [C-2]. The properties are within the Commercial/Commercial Mixed Use Proposed Land Use Designation within the Official Community Plan (OCP).
The Development Variance Permit addresses a height variance from 13m to 84m, a rear yard setback variance from 3.0 m to 0.5 m and several parking variances to the existing Parking Bylaw. While the application is being considered under the current Parking Bylaw, staff have included an analysis (Appendix "J”) showing how the proposal compares with the proposed Parking Bylaw.
The Development Permit addresses the Development Permit Guidelines within the following Development Permit Areas:
• DPA 1: Natural Environment
• DPA 4: Commercial
• DPA 7: Energy Conservation & Greenhouse Gas Reduction
• DPA 8: Water Conservation
• DPA 11: West Bay
Staff is supportive of the application in its current form, although discretionary issues stand out for staff in design, density bonusing contributions, height and parking.
Ideally, and as echoed by APC Design Review Committee, the tower could be of a more bold, iconic nature despite recent additions of the glass extrusions and subtle changes to the façade’s textures/extrusions.
Whether the density bonusing contribution is sufficient also remains a question. Are the public realm improvements and one million dollars in density bonusing acceptable to Council? The Township has no quantitative measure or specific requirements.
The significant variance issue for Council to consider in this application is whether the height variance from 13m to 84m enabling a total density of 4.7 FAR (as opposed to the maximum base density of 3.0 FAR in the OCP Land Use Designation) is reasonable.
Another issue is whether Council wishes to consider this application in the context of what the proposed draft Parking Bylaw permits, as opposed to the current Parking Bylaw.
BACKGROUND:
Application details
Applicant: Richard Gill, Development Manager at GMC Projects Inc.
Owner: Jordan Milne, President and CEO at 900 Carlton Holdings Inc.
Designer: dHKarchitects, Victoria BC
Property Size: 3,650m2 (combined)
OCP Land Use Designation:
Current: Commercial/Commercial Mixed Use
Proposed: Commercial/Commercial Mixed Use
Zone: Neighbourhood Commercial [C-2]
Existing Land Use: Commercia Mixed Use
Proposed Land Use: Commercial Mixed Use
Surrounding Land Uses:
North: Commercial (Restaurant) and Multifamily Residential
South: Multifamily Residential and Commercial Mixed Use
East: Multifamily Residential and Commercial
West: Multifamily Residential
Requested Variances
The Development Variance Permit addresses the following variances:
• Variance to the height in the C-2 zone within the Zoning Bylaw from 13m to 84m
• Variance to the rear setback in the C-2 zone from 3m to 0.5m
• Variance to the Medium and High-Density Apartment zone parking stall requirement in Table 1 of the Parking Bylaw from 354 to 204.
• Variance to the Retail Sales of goods and services parking stall requirement in Table 2 of the Parking Bylaw from 20 to 17
• Variance to the Restaurant parking stall requirement in Table 2 of the Parking Bylaw from 18 to 10
This proposal meets the use and density requirements within the C-2 zone, and as such it does not require a rezoning. The C-2 zone does not contain a maximum density. A rezoning is only required if the proposed use is not in the existing list of permitted uses in the zone, or the proposed density is above what the zone permits. This is true regardless of what the proposed Land Use Designation’s maximum FAR is within the Official Community Plan.
It is notable that the application requires a significant vehicle parking variance under the existing bylaw, but provides a surplus of parking under the proposed parking bylaw (but does not provide enough bicycle parking). The applicant is flexible and willing to remove some vehicle parking spaces in exchange for additional bicycle parking.
Chronology
1. June 26, 2023: Application received
2. November 21, 2023: Advisory Planning Commission
3. December 13, 2023: Advisory Planning Commission Design Review Committee
Advisory Body Recommendations
Advisory Planning Commission (APC)
APC considered the following motion, which resulted in a tied 3-3 vote, and was hence defeated.
That the Esquimalt Advisory Planning Commission recommends to Council to approve the application for Development Variance Permit and Development Permit to construct a 272-unit mixed-use building with a floor area ratio (FAR) of 4.7 at 900 Carlton Terrace/900 Esquimalt Road, for the reasons that it addresses the critical housing and community space revitalization needs of the community, with the following conditions:
1) That the second level parking be replaced with office, commercial, or residential units for the reason that it addresses critical housing and community space revitalization needs of the community.
2) Revisions to the tower to make it a landmark and unique building in Esquimalt and the greater Victoria region;
3) Revisions to the Transportation Demand Management program to address the concerns of Engineering and encourage alternative transportation measures;
4) Update the shadow study to be at a more appropriate scale;
5) Provide affordability within the building and in perpetuity;
6) Consider improvements to the amenity plan to better serve Esquimalt residents.
Advisory Planning Commission Design Review Committee (DRC)
DRC made the following motion, and the vote was 4-2, resulting in a recommendation to approve the application.
That the Esquimalt Advisory Planning Commission Design Review Committee
recommends to Council to approve the applications for Development Variance Permit and Development Permit to construct a 272-unit mixed-use building with a floor area ratio (FAR) of 4.7 at 900 Carlton Terrace/900 Esquimalt Road with the following conditions:
1) The design be enhanced to be as extra ordinary as the ask. The committee has reservations that the 2 residential massing components are generic. The large ask for additional height and density requires the design to be a landmark that represents Esquimalt as it will become one of the tallest buildings on Vancouver Island.
2) That the committee would not be supportive if the design remains generic.
In response to the DRC’s comments, the design team made some changes as described in the “Design Considerations” section below.
Staff Referral Comments
Staff referral comments have been included as Appendix AA”.
ANALYSIS:
OCP Analysis
Appendix "T” contains the full staff Development Permit Area analysis.
The proposed FAR of 4.7 (residential 4.5 and commercial 0.2) exceeds the OCP’s Mixed Residential/Commercial Land Use Designation’s maximum residential FAR of 3.0. That this density is effectively enabled by the requested height variance does justify the Township’s request for density bonusing contributions as described in Section 6.1 of the OCP:
• Privately-owned, publicly-accessible open space;
• Public art;
• Contributions towards the enhancement of public recreation facilities;
• Contributions towards street and boulevard enhancements, including street furniture and decorative lighting;
• Building to a higher step of the BC Energy Step Code than required under the Building Bylaw;
• Group daycare and respite facilities for children and adults;
• Preservation of heritage structures, features or assets;
• Affordable housing units;
• Special needs housing units;
• Community gardens;
• Enhanced green family play space for residents;
• Public space improvements supporting and surrounding transit stations; and
• Other as may be appropriate to the development proposal or surrounding community as deemed appropriate by Council.
The applicant has offered the following in terms of density bonusing contributions:
• A one-million-dollar ($1,000,000) contribution to affordable housing ($100,000 will be given to the Esquimalt First Nation and $100,000 to the Songhees First Nation for affordable housing (see correspondence in Appendix “FF”). This money would also be used to cover the rental difference for existing tenants who wish to move back into the new building at a 20% rent reduction (Appendix “Y”).
• Public plazas along Esquimalt Rd
• Publicly accessible dog park at the rear of the building
• Commercial vehicle EV charging
• Enhanced sidewalk amenities
• Enhanced bus stop amenities
Staff has prepared a comparison to other recent applications’ contributions, available in Appendix "Z”. The density bonusing contributions will be secured through a Section 219 Covenant which must be registered on title in advance of the registration and issuance of the Development Permit and Development Variance Permit. The contributions to affordable housing must be secured in a Housing Agreement Bylaw, which likewise must be adopted in advance of the registration and issuance of the Development Permit and Development Variance Permit.
Council is welcome to consider how the proposal meets the Commercial/Commercial Mixed Use Proposed Land Use Designation (including a density or FAR of 3.0 with opportunity for density bonusing) as part of their consideration of the height and how the height variance enables the proposed 4.5 FAR residential density and the 0.2 FAR commercial density.
Staff is supportive of the application and feels that the requested variances will enable a development which meets the OCP goals, Council’s priorities, and will be a significant benefit to Esquimalt.
Official Community Plan (OCP) Consistency
Staff believes that this development proposal is generally consistent with the OCP. There are many aspects of the proposal which address housing supply and efficient, climate-friendly density close to walkable and bikeable employment, retail, recreation, and the downtown core. The applicant is proposing density bonusing measures to offset the impacts of the additional 1.5 FAR over the maximum base density within the Commercial/Commercial Mixed Use Land Use Area.
Council must consider the OCP in its entirety when considering whether the proposal meets its goals. Council may also consider its priorities of creation of housing, climate resilience, environmental stewardship, and diversified and thriving economy when considering the variances.
Design Considerations
Staff believes that the treatment of the pedestrian experience this project provides will be a significant net benefit to the site. The second storey parkade does detract, but it comes with a significant greenhouse gas reduction in reducing underground parking. Furthermore, it permits a significant amount of flexibility in use for the future, including conversion to bike parking or commercial space.
Staff notes that the OCP Design Review Committee (DRC) did not wish to support this project unless the tower design was ‘a landmark that represents Esquimalt’ and the committee would not support the project if the ‘design remains generic’.
The applicant came back with an additional glass extrusion design for the building, as well as bolder cladding extrusions and textures for the lower portion of the tower and for the podium. Staff remains unconvinced that this is the iconic design that DRC was envisioning, but it is a definite improvement. It is up to Council to determine whether the design is exceptional enough for approval. Note that, as everything, bolder design comes with a potential cost in energy efficiency and the affordability of the project.
Zoning Analysis
|
|
C-2 Zone |
Proposed |
|
Lot Coverage |
80% |
70% |
|
Setbacks: |
|
|
|
Front (Head St) |
0.0m |
2m |
|
Exterior Side (Esquimalt Rd) |
0.0m |
3.5m |
|
Interior Side (North - Residential) |
3.0m |
10m |
|
Interior Side (North - Commercial) |
0m |
0m |
|
Rear (Carlton Terrace) |
3.0m |
0.5m (variance) |
|
Building Height |
13m |
84m (variance) |
Traffic Analysis
The Traffic Impact Assessment within Appendix "K” has the following conclusion:
Traffic from the proposed development can be accommodated on the existing road network on both opening day and 10 years post-development.
Due to the proximity of the Head Street driveway to the Esquimalt Road / Head Street intersection, it is recommended that the driveway be restricted to right-in / right-out only movements. A full moves driveway is still provided from Carlton Terrace.
Loading for parcel deliveries and service vehicles can be accommodated in the loading space internal to the building. Loading for larger vehicles (such as move-in / move-out and deliveries for the commercial uses) can be accommodated in the proposed lay-by along the Carlton Terrace frontage.
The Traffic Impact Assessment makes the following recommendations:
WATT makes the following recommendations to the developer of the site:
1. Build out frontage of Esquimalt Road to provide protected bike lanes.
2. Provide sidewalks along the frontage of the development.
WATT makes the following recommendations to the Township of Esquimalt:
1. Monitor the Esquimalt Road / Head Street intersection and adjust the traffic signal timings as necessary to mitigate long queues in the southbound left turn and eastbound through / right turn lanes.
2. Prioritize the implementation of the Esquimalt Active Transportation Network Plan.
3. Work with BC Transit to support the routing and service changes identified in their 2021 Esquimalt-View Royal Local Area Transit Plan.
Parking Analysis
The applicant has requested the following variances to the Parking Bylaw:
• A variance to the Medium and High-Density Apartment zone parking stall requirement in Table 1 from 354 to 204.
• A variance to the Retail Sales of goods and services parking stall requirement In Table 2 from 20 to 17
• A variance to the Restaurant parking stall requirement in Table 2 from 18 to 10
The Parking Study within Appendix I” provides the following conclusion:
This study found that the total expected parking demand for the site is 278 off-street parking spaces. The total demand exceeds the proposed supply by 47 spaces. However, the applicant can reduce the total demand by sharing all of the residential visitor parking and commercial parking spaces. Further, by committing to the two recommended TDM measures, the applicant could reduce the residential parking demand. With shared parking and TDM, the total expected parking demand for the site is 227 parking spaces, which is four less than the proposed supply (231).
The Parking Study provides the following recommendations:
The provision of 231 parking spaces is supported if the applicant commits to the
following:
1. Sharing all the residential visitor and commercial parking spaces
2. Committing to the three TDM measures, which include:
a. Carsharing program (one vehicle + memberships for all units).
b. Oversized bicycle parking whereby 10% of the total long-term bicycle parking spaces are designed as oversized; a certain percentage of the total long-term spaces have access to a 110V outlet; and all long-term spaces are in a secure facility.
c. The provision of a T4 transit shelter on Esquimalt Road.
Note that the application provides more vehicle parking than the proposed Parking Bylaw requires, but less bicycle parking. The applicant is prepared to adjust the vehicle/bicycle parking ratios to provide more bicycle parking if necessary. Detailed tables showing the vehicle and bicycle parking breakdown is available in Appendix J”; a summary is here:
Environmental Impact
The addition of significant residential density near public transit, bike lane network, schools, and employment centres represents a significant improvement in advancing community’s goal of reducing greenhouse gas emissions, and providing a much needed supply of rental and strata housing in a form that is more affordable and attainable than low-density ground-based housing.
OPTIONS:
Regarding the Development Variance Permit, Council may:
1. Approve the requested variances, or some of the variances.
2. Table the application and request more information or changes to the application.
3. Deny some or all the requested variances.
Regarding the Development Permit, Council may:
1. Approve the Development Permit.
2. Table the application and request more information or changes to the application.
3. Deny the Development Permit with reasons.
COUNCIL PRIORITY:
• Housing
• Climate Resilience & Environmental Stewardship
• Diversified and Thriving Economy.
FINANCIAL IMPACT:
There is no significant financial impact because of this development proposal.
COMMUNICATIONS/ENGAGEMENT:
The applicant has included a community engagement summary attached as Appendix "X”. As the application includes variances, notification has been mailed to owners and occupants of properties within 50 metres of the subject properties.
TIMELINES & NEXT STEPS:
• If Council approves the applications the next steps are registration of the S.219 Covenant to secure the density bonus amenities and transportation demand management measures prior to issuance of the development variance permit and development permit followed approval of the building permit.
REPORT REVIEWED BY:
1. Bill Brown, Director of Development Services, Reviewed
2. Ian Irvine, Director of Finance, Reviewed
3. Deb Hopkins, Director of Corporate Services, Reviewed
4. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
Appendix A Aerial Map
Appendix B Applicant Letter
Appendix C Architectural Drawings
Appendix D Architectural Renderings
Appendix E Mural Description
Appendix F Shadow Study
Appendix G Landscape and Planting Drawings
Appendix H Arborist Report
Appendix I Parking Study
Appendix J Parking Analysis Table (Current vs New Bylaw)
Appendix K Traffic Impact Assessment
Appendix L Green Building Checklist
Appendix M Environmental Report - 900 Carlton Terrace
Appendix N Environmental Report - 900 Esquimalt Road
Appendix O Development Permit Area No. 1 Applicant Responses
Appendix P Development Permit Area No. 4 Applicant Responses
Appendix Q Development Permit Area No. 7 Applicant Responses
Appendix R Development Permit Area No. 8 Applicant Responses
Appendix S Development Permit Area No. 11 Applicant Responses
Appendix T Staff Development Permit Area Analysis
Appendix U Fire Underwriter’s Survey
Appendix V Preliminary Servicing Report
Appendix W Water Main Sizing Calculation Sheet
Appendix X Community Engagement Summary
Appendix Y Tenant Assistance Policy Summary
Appendix Z Amenity Contribution Comparison Table
Appendix AA Staff Referral Comments
Appendix BB Staff Presentation
Appendix CC Applicant Presentation
Appendix DD Development Variance Permit
Appendix EE Development Permit
Appendix FF Correspondence