REPORT TO THE CHIEF ADMINISTRATIVE OFFICER FROM THE DEVELOPMENT AND ENGINEERING SERVICES DEPARTMENT ON BYLAW AMENDMENTS ZONING BYLAW NO. 5-1-2001 March 1, 2017 PURPOSE To seek Council s authorization to amend Zoning Bylaw No. 5-1-2001 to define High-Tech and add it as a permitted use with a new parking requirement in selected zones, and to amend the City Centre and North Shore Revitalization Tax Exemption (RTE) Bylaws to add High-Tech to the eligibility criteria and to make further amendments to provide consistency in regulations and tax exemption eligibility between the City Centre and the core areas of the North Shore. SUMMARY In late 2016, Council approved a $100,000 fund for Venture Kamloops and Kamloops Innovation to attract businesses from all economies, with a particular emphasis on the technology industry. In line with this initiative, staff propose making amendments to the Zoning Bylaw and the RTE bylaws to provide further incentives to draw technology businesses to Kamloops. These amendments will: add and define High-Tech as a permitted use in the Zoning Bylaw add a new parking requirement for High-Tech permitted uses add High-Tech to the eligibility criteria in the City Centre RTE Bylaw (Attachment A ) and areas designated Tranquille Market Street and MacKenzie Triangle in KAMPLAN in the North Shore RTE Bylaw (Attachment B ). In addition, amendments to increase consistency between the RTE bylaws will add the same eligibility criteria currently found in the City Centre RTE Bylaw to the core areas (Attachment C ) in the North Shore RTE Bylaw, which are designated North Shore Town Centre, Tranquille Market Street and MacKenzie Triangle, in KAMPLAN. These amendments will: provide the opportunity for multiple-family developments, hotels, above and below ground parking structures, and alterations to existing improvements exceeding a value of $100,000 or 30% of the value to receive a 100% tax exemption for a 10-year term reduce parking standards for multiple-family developments in these core areas to one parking space per unit with 15% visitor parking similar to the standards in the downtown parking exemption area Accordingly, staff recommend that Council authorize Administration to amend the bylaws as outlined in general terms in the recommendation.
ZONING BYLAW NO. 5-1-2001 Page 2 RECOMMENDATION: That Council authorize: a) A Public Hearing to amend Zoning Bylaw No. 5-1-2001 as follows: i) Division Four, Definitions, by adding the following definition: High-Tech means the design, research, manufacture, testing, and servicing of commercial products, including computer software and hardware, in the fields of electronics, telecommunications, digital media, robotics, clean energy, and biotechnology. ii) iii) Division Thirty-Five CBD (Central Business District) and Division Thirty-Six C-1T (Tranquille Road Commercial) by adding High-Tech as a permitted use Division Fifty-Two, Off-Street Parking, Section 5207, by adding the following: High-Tech as a type of use with a minimum requirement of two spaces per 100 m 2 of gross leasable area (GLA) and bicycle parking of 0.2 spots per 100 m 2 Multiple-family density within the core areas of the North Shore (designated North Shore Town Centre, Tranquille Market Street, and MacKenzie Triangle in KAMPLAN) as a type of use with a minimum requirement of one space per dwelling unit with 15% visitor parking and bicycle parking of 0.2 spots per unit b) Staff to amend City Centre Revitalization Tax Exemption Bylaw No. 22-4-5 as follows: i) Adding the definition: High-Tech means the design, research, manufacture, testing, and servicing of commercial products, including computer software and hardware, in the fields of electronics, telecommunications, digital media, robotics, clean energy and biotechnology.
ZONING BYLAW NO. 5-1-2001 Page 3 ii) Adding High-Tech to the eligibility criteria for a project involving the construction of a new improvement where a minimum of 80% of the GLA of the improvement is used exclusively for High-Tech uses c) Staff to amend North Shore Revitalization Tax Exemption Bylaw No. 22-4-2 as follows: i) Adding the definition: High-Tech means the design, research, manufacture, testing, and servicing of commercial products, including computer software and hardware, in the fields of electronics, telecommunications, digital media, robotics, clean energy and biotechnology. ii) iii) Adding High-Tech to the eligibility criteria for a project involving the construction of a new improvement where a minimum of 80% of the GLA of the improvement is used exclusively for High-Tech uses for areas of the North Shore designated Tranquille Market Street and MacKenzie Triangle in KAMPLAN. Adding the following eligibility criteria for core areas of the North Shore designated North Shore Town Centre, Tranquille Market Street, and MacKenzie Triangle in KAMPLAN: For a project involving the construction of a new improvement, the project must: a) be multiple-family residential; or b) be a hotel/motel construction; or c) be an underground parking structure or an above-ground multi-storey parking structure that includes public parking, and only the area of the structure dedicated to public parking will be eligible for tax exemption and a covenant for the public parking will be registered against the Parcel for the term of the tax exemption
ZONING BYLAW NO. 5-1-2001 Page 4 For a project involving the alteration of an existing improvement: a) the value of the alteration must be at least $100,000 or 30% of the assessed value of improvements the year before the alteration is to begin, whichever is greater b) the project must include a public realm improvement; and the land use classification for the completed project must be one of the uses permitted in the applicable zone for the Parcel, as set out in Zoning Bylaw No. 5-1-2001, as amended, and must be consistent with the future land use designation for the Parcel, as set out in KAMPLAN: City of Kamloops Official Community Plan, Bylaw No. 5-1-2146, as amended DISCUSSION In response to increasing interest in expanding the local technology industry, staff recommend updating the Zoning Bylaw and RTE bylaws to accommodate this emerging sector. Council has supported the potential expansion of the technology industry through its recent allocation of funds to attract more high-tech businesses. Technology businesses are often employee-intensive and staffed by young professionals who desire central, walkable employment locations near amenities such as housing, parks, restaurants, and shopping. High-tech uses in the City Centre and North Shore core areas are appealing additions to the more typical office, retail, and entertainment uses. As outlined in KAMPLAN, the purpose of the RTE program is to revitalize specific areas, strengthen the viability of existing businesses, and encourage new private investment. The following amendments are to stimulate development of the high-tech sector, support business attraction initiatives in Kamloops, and provide clarity and consistency. Zoning Bylaw add High-Tech as a permitted use in the CBD (Central Business District) and C-1T (Tranquille Road Commercial) zones add a new parking standard for High-Tech (two spaces per 100 m 2 of GLA) amend parking regulations for multiple-family developments to one space per unit with 15% visitor parking (similar to the parking regulations in the Downtown Off-Street Parking Specified Area) in the core areas (Attachment C ) of the North Shore, designated in KAMPLAN as North Shore Town Centre, Tranquille Market Street, and MacKenzie Triangle
ZONING BYLAW NO. 5-1-2001 Page 5 Revitalization Tax Exemption Bylaws add High-Tech to the eligibility criteria in the City Centre RTE Bylaw (Attachment A ) add High-Tech to the eligibility criteria in the North Shore RTE Bylaw for the areas designated Tranquille Market Street and MacKenzie Triangle in KAMPLAN (Attachment B ) expand the City Centre RTE eligibility criteria to the core areas (Attachment C ) of the North Shore, designated in KAMPLAN as North Shore Town Centre, Tranquille Market Street, and MacKenzie Triangle High-Tech The proposed new definition for High-Tech in Zoning Bylaw No. 5-1-2001 is: High-Tech means the design, research, manufacture, testing, and servicing of commercial products, including computer software and hardware, in the fields of electronics, telecommunications, digital media, robotics, clean energy, and biotechnology. High-Tech will be added as a permitted use in the CBD and C-1T zones to accommodate High-Tech uses in the City s core areas. High-Tech uses noted above do not generally incorporate brick-and-mortar storefronts that provide in-person customer service. Accordingly, High-Tech will be added to the Zoning Bylaw to reflect a new parking standard of two-spaces per 100 m 2 of gross leasable area. Typical office uses require three parking spaces per 100 m 2 ; however, given that the technology industry is employee-driven and does not draw customers to the site, a parking ratio of two spaces per 100 m 2 is considered acceptable. If the use of the building changes, more restrictive parking standards may apply and will have to be accommodated. To make development of the technology industry more attractive, High-Tech will be defined and added to the eligibility criteria in the City Centre RTE Bylaw (Attachment A ) and the Tranquille Market Street and MacKenzie Triangle portions of the North Shore RTE Bylaw (Attachment B ). To be eligible for a tax exemption, High-Tech uses will have to encompass 80% of the building; this requirement will be secured through the registration of a restrictive covenant. Should the building be converted from High-Tech use to other uses in the future, the tax exemption would be discontinued. The High-Tech tax exemption has not been extended to the area designated North Shore Town Centre in KAMPLAN as it is more automobile-oriented and lacks on-street parking.
ZONING BYLAW NO. 5-1-2001 Page 6 North Shore Core Revitalization Tax Exemption Eligibility Criteria The City currently has two RTE bylaws: City Centre RTE Bylaw No. 22-4-5 and North Shore RTE Bylaw No. 22-4-2; however, the eligibility criteria within the bylaws varies. To provide greater consistency, the eligibility criteria for core areas (designated in KAMPLAN as Tranquille Market Street, MacKenzie Triangle, and North Shore Towne Centre, as shown on Attachment C ) in the North Shore RTE Bylaw will be amended to match the City Centre RTE Bylaw eligibility criteria. These amendments include adding a 100% tax exemption for a 10-year period for new multiple-family developments, hotels/motel construction, above and below ground parking structures construction, and alteration to existing improvements that have a value of at least $100,000 or 30% of the assessed value and include a public realm improvement. All other areas of the North Shore RTE Bylaw will remain unchanged, and tax exemption eligibility will be determined based on the minimum requirements set forth in the development checklist and the incentive matrix. North Shore Core Parking In conjunction with the revised eligibility criteria in the core areas (Attachment C ) of the North Shore RTE Bylaw, parking for multiple-family developments in these areas will be amended to reflect similar standards to the Zoning Bylaw s Downtown Parking Exemption Area. Accordingly, parking for multiple-family developments in areas designated North Shore Town Centre, Tranquille Market Street, and MacKenzie Triangle in KAMPLAN will be reduced to one space per dwelling unit with 15% visitor parking. While the Downtown Parking Exemption Area does not require visitor parking, there is less on-street parking available on the North Shore; therefore, the visitor parking requirement will remain. This reduced parking standard has been applied successfully in the City Centre for a number of years to attract new multiple-family developments by offsetting some of the higher costs associated with providing underground parking structures and higher land values. The reduction in parking is acceptable in these areas given their proximity to services, walkability, on-street parking, and transit. M. Kwiatkowski, P.Eng. Development and Engineering Services Director Approved for Council Consideration: Author: B. McCourt, MCIP, RPP, Planner Reviewed by: E. Beach, MCIP, RPP, Planning and Development Supervisor R. J. Martin, MCIP, RPP, Planning and Development Manager/Approving Officer BM/ts/lm