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June 11, 2019

ADMINISTRATIVE REPORT TO COUNCIL

ON

REZONING APPLICATION NO. REZ00670 765 MCGILL ROAD

OWNER/APPLICANT: MCGILL REDEVELOPMENT CORPORATION PURPOSE To amend the CD-2 (McGill Road/Summit Drive Comprehensive Development Zone Two) zone to increase the maximum number of residential units and to reduce the minimum and maximum permitted commercial area in order to allow the conversion of two commercial units to residential units. SUMMARY The subject property is Landmark Place, which is located on the south side of McGill Road between Summit Drive and Dalhousie Drive, across the street from Thompson Rivers University (TRU) and immediately north of Hillside Cemetery. The property is 4,189 m2 in area and is zoned CD-2. The purpose of the CD-2 zone is “to provide a large scale mixed-use commercial residential development appropriate for this key location”. The site is the location of a mixed-use building that contains 83 residential units and 6 commercial strata units. In 2018, the applicant sought Council’s approval to convert five commercial units to residential units. As that application was not successful, the applicant now wishes to convert two of the commercial strata units in the building to residential units. Since the maximum number of residential units permitted in the CD-2 zone (200 units) has already been constructed, a zoning amendment is required to increase the maximum density of the CD-2 zone to 202 units before the two commercial units may be converted to residential. As a housekeeping measure, the minimum/maximum amount of commercial space in the CD-2 zone must also be revised from 4,645 m2/9,290 m2 to 3,680 m2/3,700 m2. Staff support converting two commercial units to residential use as the impact on the commercial base of the overall development will be minimal and the parking demand will be reduced because residential uses requires less parking than commercial uses. To partially address a parking deficiency on the neighbouring properties to the west—Landmark One and Landmark Two (795 and 775 McGill Road) (Attachment “A”)—the applicant recently registered a parking covenant/easement on strata lot 6 of 765 McGill Road to reserve 12 parking stalls (the current number of surplus parking stalls on the site) to be used by Landmark One and Landmark Two (Attachment “B”). The applicant has agreed to replace this 12-stall covenant/easement with a 14-stall covenant/easement as a condition of rezoning approval, thereby satisfying Landmark One’s and Landmark Two’s parking requirements. The amended covenant is possible because the conversion of two commercial units to residential use creates additional surplus parking at Landmark Place.

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As the Public Hearing process provides an opportunity for the public and members of the two stratas to express their views on the application, staff recommend that Council authorize a Public Hearing, as outlined in the recommendation.

RECOMMENDATION: That Council authorize: a) Zoning Bylaw Amendment Bylaw No. 5-1-2902 (Attachment “C”) be

introduced and read a first and second time b) a Public Hearing to consider Zoning Bylaw Amendment Bylaw

No. 5-1-2902 Note: Should Council choose to approve the above noted zoning amendment, Zoning Bylaw Amendment Bylaw No. 5-1-2902 will be held at third reading pending: • discharge of the registered covenant/easement requiring that a

minimum of 12 parking stalls in the development may be utilized by the Landmark One and Landmark Two stratas (795 and 775 McGill Road)

• registration of a restrictive covenant/easement requiring that a minimum of 14 parking stalls in the development may be utilized by Landmark One and Landmark Two stratas (795 and 775 McGill Road)

• approval by the Ministry of Transportation and Infrastructure

COUNCIL POLICY The property is designated “McGill Corridor” in KAMPLAN: City of Kamloops Official Community Plan 2017. KAMPLAN supports mixed-use development in this area “to facilitate the development of a lively urban destination with a combination of commercial, residential, and limited office uses.” This vision for the corridor originated in the McGill Corridor/Southgate Concept Plan (2002).

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SITE CONDITIONS AND BACKGROUND • Neighbourhood - University District • KAMPLAN Designation - McGill Corridor • Current Zoning/Use - CD-2 (McGill Road/Summit Drive Comprehensive

Development Zone Two)/six-storey, mixed-use building

• Proposed Zoning Amendment - Increase maximum density from 200 units to 202 units, reduce the minimum commercial area from 4,645 m2 to 3,680 m2, and reduce the maximum commercial area from 9,290 m2 to 3,700 m2

• Surrounding Uses - Mixed-use commercial/residential to the east and west, TRU to the north, and Hillside Cemetery to the south

• Application Date - November 14, 2018 • Restrictive Covenant - Parking covenant/easement • Project Evaluation Team (PET) - November 30, 2018 • Parcel Size - 4,189 m2 • MOTI Referral - Formal approval of bylaw by MOTI required DISCUSSION The subject property is the Landmark Place building, located on McGill Road between Summit Drive and Dalhousie Drive, immediately north of Hillside Cemetery. The property is 4,189 m2 in area and is zoned CD-2, which is a comprehensive development zone designed to facilitate a four-phase, mixed-use (commercial and residential) strata development. The six-storey Landmark Place building is the final phase of development within the CD-2 zone. There are currently 83 residential units on the subject property. The applicant wishes to convert two of the commercial strata units in the building to residential units. As the maximum number of residential units in the CD-2 zone has already been constructed, a zoning amendment is required to allow two additional residential units (for a total of 85 residential units on the subject property). It should be noted that the applicant initially attempted to convert two commercial units to residential without valid building permits. Staff issued a stop work order on April 6, 2018, and instructed the applicant to submit building permit applications to finish the units as commercial (office) space. The applicant complied with this request, with the understanding that only commercial space could be constructed, in accordance with approved permits. The permits have an expiry date of July 13, 2020. The minimum and maximum number of residential units currently permitted within the CD-2 zone are 100 units and 200 units, respectively. The minimum and maximum amounts of commercial space permitted within the CD-2 zone are 4,645 m2 and 9,290 m2, respectively. Parking requirements within the development are to be addressed comprehensively, which means that any given phase might be deficient on its own, provided that the parking shortfall is made up for in a separate phase and that the necessary legal agreements are in place to

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guarantee access to those parking stalls. The overall density and parking allocation for the four phases, both currently and with the proposed zoning amendment, are as follows:

Development phase Number of residential

units permitted

Area of commercial space/number of commercial units

permitted

Parking required

Parking provided

Parking surplus/ shortfall

Landmark One (795 McGill Road)

36 891 m2/five units 70 66 -4

Landmark Two (775 McGill Road)

38 872 m2/six units 72 62 -10

Landmark Centre (755 McGill Road)

43 1,678 m2/17 units 102 132 +30

Landmark Place (765 McGill Road) with proposed zoning amendment

85 249 m2/four units 109 125 +16

(Landmark without proposed zoning amendment)

(83) (459 m2)/six units) (113) (125) (+12)

Total 202 3,689 m2/32 units 353 385 +32 (Total without conversion of two commercial units to residential)

(200) (3,900 m2/ 34 units) (357) (385) (+28)

There is currently 459 m2 of commercial space on the property, which, when combined with the commercial space in the other phases of development, results in a total of 3,989 m2 for the entire CD-2 zone. If the two commercial units in the building in question are converted to residential use, the total amount of commercial space in the CD-2 zone will be 3,689 m2. In either case, the amount of commercial space is less than the minimum amount of commercial space required in the CD-2 zone (4,645 m2). At the time the CD-2 zone was established, the minimum commercial area was established to accommodate a much larger volume of commercial space in Landmark Centre and on the subject property (which was originally envisioned as a 21-storey building). The requested increase in residential units and the reduction in commercial space reflect evolving market conditions in the city and the site’s technical challenges related to the provision of underground parking; therefore, it is reasonable to amend the CD-2 zone to allow a minimum commercial area of 3,680 m2 and a maximum commercial area of 3,700 m2. The table above shows an overall parking surplus of 28 stalls for the entire development if the two commercial strata lots in question are converted to residential; however, the table also highlights parking deficiencies of 4 stalls for Landmark One and 10 stalls for Landmark Two, for a total deficit of 14 stalls in these two phases. On the other hand, the table shows parking surpluses of 30 stalls for Landmark Centre and, if the two commercial lots affected by the proposed zoning amendment in place convert to residential, there would be 16 surplus stalls on the subject property (Landmark Place) (Attachment “A”). Without the zoning amendment, there are 12 surplus stalls on the subject property. This four-stall increase in surplus parking is due to the fact that the parking requirement for residential use in the CD-2 zone (1.2 stalls/unit) is lower than that of commercial use (3 stalls/100 m2 of gross leasable area of commercial space).

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It should be noted that the applicant has provided a parking study completed by DC Dean Associates Inc. (Attachment “D”), which demonstrates that, in addition to reducing the number of parking stalls by four stalls, the proposed conversion of commercial units to residential use also frees up surface parking (which is in relatively high demand), as residents will use secure underground parking. Based on the current 12-stall parking surplus, the applicant recently registered a parking covenant/easement on strata lot 6 of the subject property to allow the adjacent strata to use 12 stalls on site. These stalls are located in Landmark Place’s under-building parkade. As the subject property is subject to a rezoning application that reduces parking demand, the City is in a position to require that this 12-stall agreement be replaced with a new covenant/easement providing Landmark One and Landmark Two guaranteed access to 14 stalls of the newly created 16-stall parking surplus for the subject property. The applicant has agreed to this condition, should the zoning amendment be approved. Because 49 of the 125 parking stalls on the subject property are located on an individual strata lot (strata lot 6) within the building rather than on common property or limited common property associated with units, the proposed 14-stall covenant/easement will be registered on this strata lot without unnecessarily encumbering other units within the development. With this covenant/easement in place, all phases of development will have met their parking requirements, as per Zoning Bylaw No. 5-1-2001. Accordingly, staff recommend approval of the proposed zoning amendment. Author: S. Bentley, MCIP, RPP, Planner

Reviewed by: E. Beach, MCIP, RPP, Planning and

Development Supervisor R. J. Martin, MCIP, RPP, Planning and

Development Manager/Approving Officer

M. Kwiatkowski, P.Eng. Development, Engineering, and Sustainability Services Director

Approved for Council SB/lm/kjm/ts Attachments