Planning & Strategic Initiatives Committee

REPORT TO: DATE OF MEETING: February 2, 2015 SUBMITTED BY: Planning & Strategic Initiatives Committee Alain Pinard, Director of Planning PREPARED BY: Katie Anderl, Senior Planner, 519-741-2200 ext. 7987 WARD(S) INVOLVED: Ward 9 DATE OF REPORT: December 19, 2014 REPORT NO.: CSD-15-005 SUBJECT: ZONE CHANGE APPLICATION ZC14/08/M/KA 5 MICHAEL STREET OWNER: 1397036 Ontario Ltd. RECOMMENDATION: That Zone Change Application ZC14/08/M/KA for 1397036 Ontario Ltd. for the purpose of changing the zoning from Neighbourhood Institutional Zone (I-2) with Special Use Provision 281U to Neighbourhood Institutional Zone (I-2) with amended Special Use Provision 281U be approved in the form shown in the Proposed By-law dated December 18, 2014 attached to Report CSD-15-005 as Appendix A. 1-1

EXECUTIVE SUMMARY: The owner of 5 Michael Street is proposing to change the zoning to permit up to 100% office in the existing building with a total of 36 parking spaces. Staff are supportive of the proposed zone change application. REPORT: The subject lands are located at 5 Michael Street which is located a block outside of the boundary of the downtown. The site currently contains a music retail store and music school. The owner of the site has entered into an agreement of purchase and sale with a local high-tech office user who plans to expand their local operations into the subject building as additional office space for employees. It is intended that client and public functions would be handled out of the main office location in the downtown. The lands are located adjacent to a multiple residential development to the east and a Ukrainian Catholic Centre (Church Hall) to the west. Lands along the north side of Michael Street contain single detached and duplex dwellings, with a factory conversion at the intersection of Michael Street and Victoria Street South. The entire neighbourhood is designated under Part V of the Ontario Heritage Act as it is located within the Victoria Park Heritage Conservation District. The subject building also has a Heritage Conservation Easement Agreement with the City, which regulates property specific exterior and interior heritage attributes. Policy Conformity Provincial Policy Statement (2014) The Provincial Policy Statement (PPS) sets the policy foundation for regulating the development and use of land. The PPS promotes the efficient development of lands; accommodating a range and mix of residential, employment and other uses; and establishing land use patterns based on a mix of land uses which efficiently use existing and planned infrastructure and public service facilities, support active transportation and which are transit supportive. Policies call for providing opportunities for a diversified economic base, including maintaining a range and choice of suitable sites for employment uses, and encourage compact, mixed-use development which incorporates employment uses that are compatible with and which support liveable and resilient communities. The PPS also requires that significant building heritage resources are conserved. Using the existing building for up to 100% office will bring additional employment uses to the central City, where existing and planned infrastructure and services (including transit) result in efficient development as office uses are typically more dense than institutional uses. The subject use also adaptively reuses and aids in the long term conservation of a designated heritage resource. The proposed zone change is consistent with the Provincial Policy Statement. 2006 Growth Plan for the Greater Golden Horseshoe The subject lands are within the designated built-up area as defined by the 2006 Growth Plan for the Greater Golden Horseshoe and are a Major Transit Station Area (as identified in the Adopted Official Plan) in accordance with Growth Plan policies. Policies related to Major Transit Station Areas promote residential and employment densities that support and ensure the viability of existing and planning transit service level and a mix of residential, office, institutional and commercial development wherever possible. Growth Plan policies support accommodating employment growth in communities that are transit supportive and pedestrian friendly, and support development which provides for a diverse mix of land uses, and a range and mix of 1-2

employment and housing types. The subject applications conform with the policies of the Growth Plan. Regional Official Policies Plan The subject lands are within the Urban Area established in the Regional Official Policies Plan (ROPP). Regional policies support the development of complete communities having development patterns and densities that support walking, cycling and transit. The proposed zone change complies with the ROPP. Official Plan and Adopted Official Plan The subject lands are currently designated Neighbourhood Institutional in Victoria Park Secondary Plan with Special Policies 8 and 9. Policies of both the existing Official Plan and new Official Plan (under appeal), allows Council to consider extension of land use and relaxation of parking regulations to encourage and assist with adaptive reuse of heritage resources, when conservation activities are undertaken. The zoning on the site was changed in 2003 (through zone change application ZC 00/12/M/JG) under these Conservation Policies. In accordance with the conservation policies of the current and new Official Plans, and given previous zone change decision, the subject application to permit 100% office is considered appropriate within the Neighbourhood Institutional designation and an Official Plan Amendment is not required. The Official Plan encourages the adaptive reuse of industrial and historical buildings to promote intensification and preservation of the City s heritage. While not located in the Warehouse District the building is located in close proximity to this district (within about 1 block) and shares many of the same characteristics as former industrial buildings in this district. The range of uses permitted, including office, are limited to the existing building and help to encourage the retention and adaptive reuse of this heritage resource. Proposed Zone Change The applicant is proposing to amend Special Use Provision 281U, which was added to the site in 2003 to permit uses including artisan s establishment, multiple dwelling, personal services, repair of musical instruments, retail of music related goods, studio and office in the existing building. The regulation also provides for 36 parking spaces, provided that the gross leasable commercial space does not exceed 60% of the building s gross floor area. The applicant is proposing office use within 100% of the existing building s gross leasable commercial space with a minimum of 36 parking spaces. Office is currently a permitted use, however it is limited to a maximum of 10% of the gross leasable commercial space, but may be provided together with other permitted uses. The previous zone change was requested mainly for the purposes of permitting music related businesses, with office added as a complementary use. However, staff are of the opinion that permitting the building to be used for 100% office is a good adaptive reuse of the existing building and will be compatible with the surrounding neighbourhood. The subject building is located in close proximity to the downtown and within a future rapid transit station area. While it is located near low-rise residential uses, the site has always been a nonresidential site in a neighbourhood. Typically, office uses have low levels of impact associated with them and do not generate noise or other nuisance. The use will be limited to the floor space of the existing building, and all renovations and alterations must be completed in accordance with the Victoria Park Heritage District Plan and the Conservation Easement Agreement Registered on title with the City. Heritage matters are further discussed in response to a property owner s question in the Community Input section of this report. The applicant has also requested that the zone change application permit that 36 parking spaces be legalized for the proposed office use. In support of this request a Transportation Demand Management (TDM) Plan has been prepared to justify the proposed number of spaces. 1-3

Currently, the special use provision permits 36 spaces for uses locating in the existing building, provided that at no time shall the gross leasable commercial space exceed 60% of the gross floor area. What this regulation recognizes is that gross leasable commercial space excludes non-leasable space including hallways, washrooms and mechanical rooms. This type of calculation works well for multi-tenanted buildings, however it is anticipated that the building will be occupied by one office user. With one user, there will still be non-useable space in the buildings such as hallways, mechanical rooms and washrooms however, for clarity in implementing the zoning by-law, it makes most sense to clarify the provision to specify that office uses may occupy of 100% of the gross leasable commercial space with a minimum of 36 parking spaces. The TMD Plan recommends that as this site is located in such close proximity to the downtown that the downtown parking ratio of 1 space per 69 metres squared be considered rather than the suburban parking ratio of 1 space per 28 metres squared. The downtown ratio takes into consideration locational features of the downtown including access to transit, access to cycling, walking and off-site parking availability. The subject site is currently well served by public transit being very near the GRT Charles Street station. It is also located near the Iron Horse Trail and is in a very walkable and cycling friendly location (the site receives a walk score of 83/100 as per walkscore.com). Based on the proximity to transit, off-site parking, and excellent walkability and access to cycling routes, staff are supportive of generally considering a downtown type of parking rate for this site. In addition to the reductions resulting from a downtown type location, the owner is proposing a number of site specific TDM measures including Travelwise membership (which provides tools and services to help employees find commuting solutions and reduce the number of employees driving alone to work), on-site bicycle storage, as well as financial incentives for employees not to drive to work. Such measures have been quantified by the Region on their TDM worksheets and result in a further parking reduction. Therefore, based on the downtown rate of 1 space per 69 m 2 and a gross floor area of 2657m 2 39 spaces are required. The additional reductions resulting from TDM measures will further reduce parking demands. The TDM Plan suggests that parking could be reduced to 20 spaces, however as the site can accommodate 36 parking spaces, staff are recommending that a minimum of 36 parking spaces be required in the zoning by-law. Agency Comments No concerns were raised by any commenting department or agency with respect to the proposed zone change. Community Input In response to the preliminary circulation staff received five written responses from nearby property owners. These are attached in Appendix D. One respondent indicated specific support for additional high-tech office in the area. Three respondents were not concerned with the proposed office use and of these two noted that the change in use may help decrease on-street parking demands and congestion which are cited as being very high with the current music school located in the building. One respondent raised concerns with respect to increases in background traffic resulting from office uses in the area. Two respondents questioned how additional parking could be added to the subject property, and a third has questioned whether 36 spaces will be sufficient for the proposed use. One respondent raised concerns about renovations and alterations being made to a heritage building and questions whether there is consistency in implementing the Victoria Park Conservation District Plan between business and home owners. 1-4

Parking Layout and Quantity of Spaces With respect to questions about parking layout, a site plan was approved in 2003 which shows how 36 parking spaces can be accommodated on the subject lands. While minor changes will be required to the Site Plan to ensure current Barrier Free Parking requirements are met, Transportation Services staff have indicated that they are satisfied with the proposed parking plan. Prior to occupancy of the new use, the parking lot must be restriped to show the additional parking spaces. With respect to the quanitity of parking proposed, a Transportation Demand Management (TDM) Plan has been prepared in support of this application. This plan has been reviewed and accepted by Transportation Services. The TDM Plan recommends that it is appropriate to apply the City s downtown parking ratio to the site, together with an additional reduction to recognize the significant TMD measures that are being proposed by the office user. These measures are discussed in detail in the Proposed Zone Change section of this report. Traffic Generation With respect to increases in background traffic in the area, staff acknowledge that with downtown growth, and redevelopment in the nearby Warehouse/Innovation District, that there may be a recent increase in background traffic in the area. With respect to the subject site, the current owner has indicated that depending on lesson schedules, there are between 250 and 700 vehicles entering and exiting the site in a given day (i.e. there are currently lots of short visits to the site generating high levels of parking turnover). The parking lot for the proposed office will be able to accommodate a maximum of 36 cars at any given time and given typical office hours and work schedules, it is not expected that there will be a high amount of in/out traffic as is the case today with a retail music store and school. Office staff not having access to on-site parking will have alternative commuting options available including transit, cycling and off-site parking options such as the City owned Bramm Street parking lot. This is similar to the situation and experience of most downtown businesses where staff rely on and support public transit, and choose other modes of travel including walking, cycling and carpooling to get to and from work. The intended high-tech office user is an established member of Travelwise (which provides tools and services to help employees find commuting solutions and reduce the number of employees driving alone to work), and also provides financial incentives if employees elect not to receive a parking permit. Heritage With respect to anticipated renovations and alterations to the building to facilitate the change to an office use, staff confirm that the building is designated under Part V of the Ontario Heritage Act as it is located within the Victoria Park Heritage Conservation District. Furthermore, the site is subject of a Heritage Conservation Easement Agreement with the City. This easement agreement specially lists a number of external heritage features including all window and door openings, the yellow brick walls, brick corbelling at roofline, roof, roofline and chimney and internal features including the heavy timber construction, hardwood, parquet and terrazzo floors, walk-in safe and sprinkler system, among other features. Because of the easement agreement, the building at 5 Michael is subject to much more rigorous heritage control than those which generally apply to homes in the area. Heritage Permits are required for exterior and interior alterations and such alterations must comply with both the Victoria Park Heritage Conservation District Plan and the Heritage Conservation Easement Agreement. Heritage Planning staff have no concerns with the proposal to convert the existing building from 10% to 100% office subject to the owner obtaining the necessary heritage permit approvals prior to renovations. 1-5

Planning Analysis: In considering the foregoing, staff are supportive of the proposed Zone Change to permit 100% of the existing building to be used as office, with a minimum of 36 parking spaces. Staff are of the opinion that the proposed use will be compatible within the context of a residential neighbourhood, that it represents an appropriate adaptive reuse of an existing non-residential building and that given proximity to existing transit and future Rapid Transit, cycling, walking and off-site parking opportunities, membership in Travelwise and staff parking incentives, that 36 parking spaces will be sufficient for the subject site. The subject applications are consistent with policies of the Provincial Policy Statement, Growth Plan for the Greater Golden Horseshoe, and the Regional Official Policies Plan. Staff are of the opinion that the proposed Zone Change represent good planning. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: This proposal supports development of our community and will align with the Kitchener Strategic Plan as it aligns with the Community Priorities: Development. The proposed Zone Change application supports the conservation and adaptive reuse of a heritage resource, and also supports the City s focus on cluster development as the proposed use will help support the established high-tech office cluster in the vicinity, and that it represents a use that is compatible with this neighbourhood. FINANCIAL IMPLICATIONS: There are no financial implications associated with this recommendation. COMMUNITY ENGAGEMENT: INFORM & CONSULT - The proposed draft plan of subdivision was originally circulated to property owners within 120 metres of the subject lands in October 2014. In response to this circulation staff received responses from five property owners, which are summarized as part of this report and included in Appendix D. Notice signs are also posted on the property. A courtesy notice of the public meeting will be circulated to all property owners responding to the preliminary circulation. Notice of the Public Meeting will be given in The Record on January 9, 2015 and a copy of the Notice is attached in Appendix B. This report will be posted to the City s website with the agenda in advance of the council/committee meeting. CONCLUSION: Based on the foregoing, proposed Zone Change is appropriate and represents good planning. It provides for an appropriate adaptive reuse of the designated heritage building and the proposed use will be compatible in the existing neighbourhood. Therefore, it is recommended that the application be approved. REVIEWED BY: Della Ross, Manager of Development Review ACKNOWLEDGED BY: Mark Hildebrand, Acting Deputy CAO (Community Services) Appendices A Proposed Zoning By-law B Newspaper Notice C Agency Comments D Neighbourhood Comments 1-6

follows: PROPOSED BY LAW December 18, 2014 BY-LAW NUMBER OF THE CORPORATION OF THE CITY OF KITCHENER Appendix A Proposed Zoning By-law (Being a by-law to amend By-law 85-1, as amended, known as the Zoning By-law for the City of Kitchener 1397036 Ontario Ltd. 5 Michael Street) WHEREAS it is deemed expedient to amend By-law 85-1 for the lands specified above; NOW THEREFORE the Council of the Corporation of the City of Kitchener enacts as 1. Subsection 281U of Appendix C to By-law 85-1 is hereby deleted and replaced with the following: 281U. Notwithstanding Sections, 6.1.2, 32.1 and 32.2 of this by-law, within the lands zoned I-2, 1R, 281U on Schedule 85 of Appendix "A" and described as Part of Park Lot 552, Grange's Amended Survey, Registered Plan 378: a) only the following uses and accessory uses thereto shall be permitted: Artisan's Establishment, including accessory retail Dwelling Unit Educational Establishment Home Business Multiple Dwelling Office Personal Services Repair of Musical Instruments Retail of Music Related Goods Social Service Establishment Street Townhouse Dwelling Studio b) Artisan's Establishment, Office, Repair of Musical Instruments, Retail of Music Products, Social Service Establishment and Studio shall be 1-7

Appendix A Proposed Zoning By-law permitted only in the building existing on June 16, 2003, and the building existing as of June 16, 2003 shall be deemed to comply with regulations of s. 32.5; c) Uses other than those listed in b) above shall be permitted to locate either in the building existing on June 16, 2003 or a building or part thereof constructed after June 16, 2003 in which case the regulations of Section 32 shall apply, except as otherwise provided herein; d) the maximum gross leasable commercial space devoted to each of Repair of Musical Instruments or Social Service Establishment shall be 10% and the maximum gross leasable commercial space devoted to Retail of Music Related Goods shall be 25% of the total gross floor area of the existing building; e) the minimum parking requirement for the permitted uses in the building existing on June 16, 2003 shall be 36 spaces, provided that at no time shall the gross leasable commercial space exceed 60% of the gross floor area of the existing building; and f) Office may occupy up to 100% of the gross leasable commercial space of the existing building and notwithstanding e) the minimum parking requirement for office shall be 36 spaces. PASSED at the Council Chambers in the City of Kitchener this day of, 2015. Mayor Clerk 1-8

Appendix B Newspaper Notice PROPERTY OWNERS AND INTERESTED PARTIES ARE INVITED TO ATTEND A PUBLIC MEETING TO DISCUSS A PROPOSED AMDNEMDNT TO THE KITCHENER ZONING BY-LAW UNDER SECTION 34 OF THE PLANNING ACT 5 Michael Street The City of Kitchener has received an application for a Zone Change for 5 Michael Street. The purpose of this application is to allow up to 100% of the existing building to be used for office use, with a minimum of 36 parking spaces. The public meeting will be held by the Planning & Strategic Initiatives Committee, a Committee of Council which deals with planning matters on: MONDAY, FEBRUARY 2, 2015 at 6:30 P.M. COUNCIL CHAMBERS, 2 nd FLOOR, CITY HALL 200 KING STREET WEST, KITCHENER. Any person may attend the public meeting and make written and/or verbal representation either in support of, or in opposition to, the above noted proposal. If a person or public body does not make oral submissions at this public meeting or make a written submission prior to approval/refusal of this, the person or public body is not entitled to appeal the decision to the Ontario Municipal Board, and may not be added as a party to the hearing of an appeal unless there are reasonable grounds in the opinion of the Board. ADDITIONAL INFORMATION is available by contacting the staff person noted below, viewing the report contained in the meeting agenda (posted 10 days before the meeting at www.kitchener.ca - click on the date in the Calendar of Events and select the appropriate committee), or in person at the Planning Division, 6 th Floor, City Hall, 200 King Street West, Kitchener between 8:30 a.m. - 5:00 p.m. (Monday to Friday). Katie Anderl, Senior Planner - 519-741-2200 ext. 7987 (TTY: 1-866-969-9994), katie.anderl@kitchener.ca 1-9