TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: April 7, 2025 Report No. DEV-25-007
TO: Council
FROM: James Davison, Manager of Development Services
SUBJECT: Official Community Plan Amendment and Rezoning Application - 1209 Lyall St - File No. DEV-25-007
RECOMMENDATION:
Recommendation
1. That Council give first and second reading to Official Community Plan Bylaw, 2018, No. 2922, Amendment Bylaw, 2025, No. 3152, which would allow, within Low Density Residential Development, a continued commercial use and mixed residential-commercial redevelopment on properties with historic commercial uses in a manner that is respectful of the neighbourhood at intensity levels less than the Neighbourhood Commercial Mixed-Use designation.
2. That Council give first and second reading to Zoning Bylaw, 1992, No. 2050, Amendment Bylaw, 2025, No. 3153, which would amend the RS-6 (Single Family DADU Residential) zone to permit a Liquor Lounge and Accessory Retail at 1209 Lyall Street (Lot 5, Section 11, Esquimalt District, Plan 946) as a secondary use to Single Family Residential.
3. That Council direct staff to schedule a Public Hearing for Official Community Plan Bylaw, 2018, No. 2922, Amendment Bylaw, 2025, No. 3152 and Zoning Bylaw, 1992, No. 2050, Amendment Bylaw, 2023, No. 3153, mail notices, and advertise for same on the Township’s website and public notice boards.
Body
EXECUTIVE SUMMARY:
The applicant has applied for rezoning and Official Community Plan (OCP) amendment to supplement their existing Micro Beverage Manufacturer use at 1209 Lyall Street with a 10-person capacity Liquor Lounge and accessory retail (for the sale of packaged alcoholic beverages produced on-site for off-site consumption). The applicant is not proposing (or able to provide) any vehicle parking on-site. A six-space short-term bicycle rack is proposed.
The OCP amendment is required as the proposed use is inconsistent with the present and proposed Land Use Designation of Low Density Residential within the OCP. Staff is proposing an amendment to Section 5.2 Low Density Residential part of Section 5 Housing and Residential Use policy in relation to allowing appropriate small-scale commercial use in locations which reflect such historical uses, as is the case with the subject property.
BACKGROUND:
The subject property’s principal building, constructed in 1911, once hosted a retail commercial establishment, the ‘Round the Corner’ grocery store, and is on the Esquimalt Heritage Register. The applicant currently operates a micro beverage manufacturing use on the property and wishes to expand that use to include a 10-person liquor lounge and an accessory retail component where alcoholic beverages are sold to be consumed off-site. The liquor lounge will occupy the former retail component of the building, at 32m2 (345 ft2).
Chronology:
January 27 2025 - OCP Amendment Consultation List approved by Council
November 19, 2024 - Advisory Planning Commission
November 13, 2024 - APC Design Review Committee
October 21, 2024 - Neighbourhood Open House (applicant)
November 21 2022 - Public Hearing for Zoning amendment to permit Micro Beverage Manufacturer
Advisory Body Recommendations:
Advisory Planning Commission
That the Esquimalt Advisory Planning Commission recommends to Council that the rezoning which would allow the construction of a 32 square metre Brewery Tasting Room and licensed retail store on the premises be approved. Carried Unanimously.
Design Review Committee
That the Esquimalt Design Review Committee recommends to Council to approve the Rezoning Application for 1209 Lyall Street which would allow the construction of a 32 square metre Brewery Tasting Room and licensed retail store on the premises as outlined in Staff Report No. DRC-24-008. Carried Unanimously.
Referral Comments:
OCP Amendment Consultation
No comments of any consequence were returned to the Township.
Engineering Comments
The applicant must provide information regarding sewer connection size. This will be resolved before the application comes to Public Hearing.
Parks Comments
No comment/concern.
ANALYSIS:
The applicant is proposing to supplement their micro beverage manufacturer use on the property with the tasting room and accessory retail uses in a location that currently has a Present and Proposed Land Use Designation within the OCP of Low Density Residential and, is zoned RS-6 (Single Family DADU Residential).
OCP Amendment
Staff propose adding the following to Section 5.2 Low Density Residential Development:
Policy
Permit continued commercial use and mixed residential-commercial redevelopment on properties with historic commercial uses in a manner that is respectful of the neighbourhood at intensity levels less than the Neighbourhood Commercial Mixed-Use designation.
This permits rezonings to small-scale commercial in a low-density residential context on properties with a historic commercial use such as the subject property. Changing the OCP Land Use Designation to Neighbourhood Commercial Mixed-Use, the lowest-density designation permitting mixed-use available in the OCP, is inappropriate in this context.
Council could consider removing the ‘historical’ aspect of the commercial component to permit rezonings to local low-density commercial uses, such as corner stores, in a wider range of locations where appropriate.
Zoning Amendment
The amendment to the zoning proposes a new defined use within the Zoning Bylaw:
“Beverage Manufacturer - Micro with Liquor Lounge” - (also Micro Beverage Manufacturer with Liquor Lounge) means a Micro Beverage Manufacturer where part of a building thereof is used as a licensed manufacturer lounge subject to the Liquor Control and Licensing Act, as amended.
The unit size and floor area ratio regulation within the RS-6 zone has been amended to clarify that the proposed use does not exceed a floor area of 32 square metres, and that the proposed use is to be included for the purpose of calculating Floor Area Ratio.
S.219 Covenant Modification
The registered S.219 covenant (Appendix G) put in place during the rezoning to permit the micro beverage manufacturer use on the property must be modified to remove the following restrictions:
2(a) no retail sales are permitted on the Lands;
2(b) no customers are permitted on the Lands;
The applicant is planning on operating the liquor lounge and accessory retail at a limited number of hours through the week. The provincial liquor license permits the tasting room and store to be open from 9am to 11pm, but the applicant is requesting the following:
• Hours of operation 11am to 8pm
• Maximum hours of operation 40 hours per week
• Maximum days of operation at five per week, with flexibility as to which days
The modification to the S.219 Covenant will be made accordingly and registered in advance of the adoption of the OCP and zoning amendment bylaws.
Parking
The applicant has a single garage vehicle parking space for residential use.
The applicant is not proposing any off-street vehicle parking (there is no space for vehicle parking on-site) for the commercial component and is proposing one six-bike short-term rack.
Under the current Parking Bylaw, the applicant would be required to provide three off-street vehicle parking spaces for the licensed liquor establishment and one off-street vehicle parking space for the retail component for a total of four parking spaces.
Under the proposed Parking Bylaw, the applicant would be required to provide two off-street vehicle parking spaces for the liquor lounge tasting room and one off-street vehicle parking space for the liquor store, and a six-space short-term bike rack.
The zoning amendment specifies that the use of Micro Beverage Manufacturer with Liquor Lounge including Accessory Retail use does not require vehicle parking, but that six bicycle spaces must be provided.
The proposed parking provision is written into the amendment bylaw.
Servicing
The applicant is working with Engineering to ensure that there is adequate sewer capacity to accommodate the change of use. This will be resolved in advance of the Public Hearing.
OPTIONS:
1. That Council give first, and second reading to Official Community Plan Bylaw, 2018, No. 3152 and Zoning Bylaw, 1992, No. 2050, Amendment Bylaw, 2025, No. 3153 and that Council direct staff to set a Public Hearing.
2. That Council postpone consideration of Amendment Bylaws No. 3152 and No. 3153 pending receipt of additional information.
3. That Council defeat Amendment Bylaws No. 3152 and No. 3153.
COUNCIL PRIORITY:
Diversified and thriving economy.
FINANCIAL IMPACT:
There is no financial impact associated with this application.
COMMUNICATIONS/ENGAGEMENT:
The applicant held a required Neighbourhood Open House on Monday October 21, 2024. There were no attendees.
TIMELINES & NEXT STEPS:
The next steps are as follows:
1. Servicing capacity for the site will be confirmed in advance of the Public Hearing.
2. Public Hearing and third reading of the bylaw will be scheduled after first and second readings of the amendment bylaws.
3. S.219 covenant modification will be registered on title.
4. Amendment bylaws will be adopted by Council at a regular meeting.
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 Official Community Plan Bylaw, 2018, No. 2922, Amendment Bylaw, 2025, No. 3152
Appendix B Zoning Bylaw, 1992, No. 2050, Amendment Bylaw, 2025, No. 3153
Appendix C Aerial Map
Appendix D Applicant Letter to Council
Appendix E Building Location Survey Certificate
Appendix F Site Plan
Appendix G Section 219 Covenant
Appendix H Public Correspondence
Appendix I Staff Presentation
Appendix J Applicant Presentation