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HomeMy WebLinkAboutCSD-13-051 - Rockway Centre Recommendations - Complete REPORT TO:Community and Infrastructure Services Committee DATE OF MEETING: May 27, 2013 Michael May, Deputy CAO, Community Services SUBMITTED BY: (519-741-2200, ext. 7079) Michael May, Deputy CAO, Community Services PREPARED BY: 9 WARD(S) INVOLVED: May 16, 2013 DATE OF REPORT: CSD-13-051 REPORT NO.: ROCKWAY CENTRE RECOMMENDATIONS SUBJECT: RECOMMENDATION: 1. That the Rockway Feasibility Study and Business Case, as atta Department report CSD-13-047, be received for information and st undertake the following actions prior to a final decision being consider the findings of the Rockway Feasibility Study as part of the Citys Leisure € Facilities Master Plan (LFMP) Update and Development Charges (DC prioritization against other recreational needs within the commu gather all relevant information and begin the Request for Propo € the redevelopment of the Rockway Centre (736 Charles Street East East) into a medium-to-high density residential building that ad value of the property and includes a ground floor older adult/co operated by the municipality with the option to own), as well as medical/dental, retail or office type uses; and, 2. That pursuant to Section 29 of the Ontario Heritage Act, the Notice of Intention to designate the property known as the Rockw Crescent and 1405 King Street East) as being of cultural heritag specific recognition given to Rockway Gardens being identified a landscape; and, 3. That pursuant to section 27 of the Ontario Heritage Act, 736 Street East (Rockway Centre) be listed on the Municipal Heritage designated property of cultural heritage value or interest in ac of Significant attached as Appendix B to CSD-13-052; and, 4. That no direction be given to publish a Notice of Intention t property (736 Charles Street East / 1405 King Street East) until process which will include specific heritage requirements; and further, 5. That the Rockway Centre facility remain in its current config significant renovations or upgrades), and be maintained to a rea line with other municipally owned facilities, until a final deci the long-term vision for the Centre. 13a - 1 REPORT PURPOSE: The future of the Rockway Centre is a complex issue that touches community interests and public policy objectives. The intent of information contained in the two staff reports listed below, as (Appendix A) by Coldwell Banker Peter Benninger Realty (CBPB Rea and recommend a course of action for the future of the Centre: CSD-13-047, Rockway Centre Feasibility Study and Business Case € CSD-13-052, Designation of the Rockway Gardens & Rockway Centre € Part IV of the Ontario Heritage Act After considering all of the information contained in these repo and community interests involved in this issue, staff are recomm taken in relation to the Rockway Centre: 1. Defer a decision on the Rockway Centre Feasibility Study and time for: (1) consideration of the findings as part of the Leisu (LMFP) Update and Development Charges (DC) review for prioritiza recreational/facility needs within the community, and (2) an RFP redevelopment of the Rockway Centre property. 2. Gather all relevant information and begin the RFP process for redevelopment of the Rockway Centre into a medium-to-high densit building that addresses the heritage value of the property and i older adult/community centre (to be operated by the municipality own), as well as possible ancillary medical/dental, retail or of 3. Recognize the heritage value of the Rockway Gardens and Rockw properties by (1) proceeding to designate the Rockway Gardens, ( the Rockway Centre on the Municipal Heritage Register, and (3) i heritage requirements related to the Rockway Centre in the RFP p 4. Continue efforts to maintain the Rockway Centre facility to a is in-line with other municipally owned facilities, during the i long term alternative is implemented. BACKGROUND: The following timeline summarizes the Council decisions that led On February 22, 2010, City Council passed a motion directing st € study and business case analysis including public consultation a to look at the long term use of the Rockway Seniors Centre site adult service delivery and possible other uses.Ž That study has attached to CSD-13-047 for review by City Council. On February 4, 2013, City Council passed a motion to defer Heri € recommendation to publish a notice of intention to designate the Rockway Centre properties. That Heritage Kitchener motion was de 13a - 2 2013 meeting of the Community and Infrastructure Services Commit completion of the Rockway Centre Feasibility Study and Business regarding the heritage of these two properties is included in CS On March 4, 2013, City Council passed a motion directing staff € complete an urban design brief to determine the optimum develop Rockway Centre site, optimizing the density on the site, conside and the provision of the necessary space to provide older adult future.Ž This analysis, completed by Coldwell Banker Peter Benni and the GSP Group, is attached to this report as Appendix A. REPORT: The remainder of this report provides details on the next steps to the Rockway Centre. As noted above, this course of action is balance between the many municipal and community interests in the site while continuing to move the City towards a final decision on a long-term vision for 1. Defer a decision on the Rockway Centre Feasibility Study and time for: (1) consideration of the findings as part of the Leisu (LMFP) Update and Development Charges (DC) review for prioritiza recreational/facility needs within the community, and (2) an RFP redevelopment of the Rockway Centre property. As outlined in CSD-13-047, the Rockway Centre Feasibility Study Team has completed an extensive study (including significant pub engagement of current Rockway Centre users) of eight options for programs and services currently being provided at the Rockway Ce working on this study was made up of City staff, the Ward Counci the Rockway Centre Advisory Committee, a representative from the on Kitchener Seniors, and one Neighbourhood Association represen consideration of all of the data collected, the Project Team has addition onto the Forest Heights Community Centre (FHCC) is the future program and services needs of our growing older adult pop The challenge now facing the City is the reality that any recomm study cannot be completed at this time, or in the near future, d For this reason, staff believes it would be prudent to defer a f until such time as further information can be gathered regarding revenues, development charges, a private sector partner). Comple a decision on the long-term vision for the Rockway Centre will e information to inform its decision on this important issue. As the Rockway Centre Feasibility Study and Business Case has be staff has also begun two significant initiatives related to the Leisure Facilities Master Plan (LFMP) update and the South Distr process. While these initiatives are not yet complete, it has be recreational needs of the community go well beyond the Citys ab replacement recreational facilities through traditional sources or development charges) over the next ten years. 13a - 3 Given the wide range of future recreational needs within the com amenities to serve the residents living in the south west portio several existing community centres), it is important the City pr needs against one another to ensure limited available funding is facilities. For this reason, it is advisable to refer the Rockway Centre Feasibility Study and Business Case to the LFMP Update already underway and the prepar Development Charges Background Study and Bylaw (DC Review) which later this year. The LFMP Update will be completed later this ye scheduled for completion in 2014. By referring the feasibility study to the LFMP Update and DC Rev determine how high of a priority it should be over the next ten recreation/facility needs within the community, and then determi available through the capital budget. Making a decision on the f result in less funding being available for other recreational ne as a higher priority through the LFMP Update. It may be helpful while the LFMP Update is not yet complete, given the high priori recreational needs in the community, and the limited funding ava the Rockway Centre Feasibility Study and Business Case may not b priority to fall within the Citys 10 year planning horizon or c In addition to allowing the findings of the feasibility study to Update and DC Review, deferring a decision on the study would al parallel RFP process to secure a public/private redevelopment on that includes a new purpose built, older adult/community centre. 2. Gather all relevant information and begin the RFP process for redevelopment of the Rockway Centre into a medium-to-high densit building that addresses the heritage value of the property and i older adult/community centre (to be operated by the municipality own), as well as possible ancillary medical/dental retail or off On March 4, 2013, Council directed staff to engage a consultant optimum development scenario for the Rockway Centre property wit adult/community centre as part of a public/private partnership d Following that direction, staff engaged Coldwell Banker Peter Be and the GSP Group to complete this analysis. A copy of their rep Appendix A. According to CBPB Realty, the Rockway site has strong locational attributes when considering a potential public/private redevelopment. The site is situated adj the Rockway golf course, it is near the future Charles and Bento located on the citys main streetŽ and at the easterly gateway Through their analysis, CBPB Realty determined a mixed use, medi redevelopment that includes an older adult/community centre at g and retail/office use components (e.g. drug store, medical/denta could provide an attractive development option for the private sector.Ž 13a - 4 Several key findings from CBPB Realtys report include the follo ƒit is anticipated that there would be a noticeable increase in € proposed redevelopment if it were to include a mixed use compone the community centre. The community centre as well as additional amenities (i.e. medical/commercial uses) located immediately ons marketing opportunity for the project and also creates a clear d audience in the aging population.Ž The new community space at the base to the building could be a € for prospective residents/purchasers, and combined with the loca Gardens and good transit service, differentiate this project fro marketplace.Ž High level research into the feasibility of a public/private pa € mixed use development including a municipally run seniors / comm adjoining residential component, was also conducted. Initial con development community indicated there would be interest. It was seniors/community centre and residential units specific to senio in generating interest in the partnership. Developers would requ to satisfy themselves with respect to the market, demand, etcƒŽ For these reasons, staff believe it would be more advantageous, chances of successfully finding a private sector partner, to iss requirement for a municipally run older adult/community centre v In addition to the potential to redevelop the Rockway Centre sit built older adult/community centre), CBPB Realty indicates that a redevelopment of the site could serve as a catalyst to spur additional development of othe Ottawa/Charles LRT station area. As stated in their report,  While the Ottawa/Charles area has significant redevelopment potential, change to date has been slo the Rockway site is, to a certain extent, a pioneering opportu CBPB Realty did note a number of constraints to the site includi compromises the efficiency of the site and its ultimate yield po Preston Streets is not owned by the City; there is a 3 metre gra and; there are wide right-of-ways on both Charles and King Stree It is important to note that the analysis conducted by CBPB Real not guarantee the City would be successful in attracting a priva ability of the City to attract the right development partner to external considerations beyond the Citys control such as market absorption and developer interest. Given funding through traditional municipal sources (taxes, development charges) will likely not be available within the Citys 10 year capital forecast, staff b relevant information to begin an RFP process for the property ar by the potential benefits. After considering CBPB Realtys marke benefits to the City in terms of achieving a new, purpose built sooner and at a lower financial cost than if the City attempted recommending the City engage in an RFP process for the site. 13a - 5 Request for Proposals (RFP) Process: Undertaking an RFP for this site is a significant and lengthy pr approval at several key points along the way. Should Council dir gathering all relevant information for an RFP, staff would prepa consideration prior to issuing the Terms of Reference to the pri that would provide further details on the process and potential costs to the munici While the exact timing of a potential redevelopment of the site individual proposals, and could vary significantly, staff antici process could take approximately 6 years (including 2 years for note this timeline is very high-level and would depend on a vari control such as the market response and financing arrangements f The Citys Purchasing Bylaw outlines the process for public/priv the RFP process would include the following: (1) preparation of design guidelines for the site; (2) preparation and approval by Council of the Terms of Referenc (3) request for expressions of interest; (4) receipt of expressions of interest; (5) evaluation and determination of two preferred expressions of (6) selection of a preferred proposal (if applicable), and; (7) negotiation of agreements (e.g. development agreement, agree sale, shared services agreements). If the City were unsuccessful in attracting a private sector par would have two options to consider at that time: (1) Return to the Rockway Study Feasibility Study and Business C recommendation. By that time the Citys LFMP Update and DC Revie and Council would have a better understanding of its priority ag funding needs within the community. (2) Continue to operate the Rockway Centre as an older adult/com configuration and wait until market conditions improve (highly l impact of LRT), and reissue an RFP a second time at a later date It is important to realize that if the City was not successful i proposal, that would not necessarily negate the value of the RFP may need to be patient in order to realize a public/private part 3. Recognize the heritage value of the Rockway Gardens and Rockw properties by (1) proceeding to designate the Rockway Gardens, ( the Rockway Centre on the Municipal Heritage Register, and (3) i heritage requirements related to the Rockway Centre in the RFP p As part of the process to complete the Rockway Centre Feasibilit cultural heritage assessment was completed and concluded that bo Rockway Gardens are of cultural heritage value (see CSD-13-052). 13a - 6 Staff are recommending three specific measures be taken at this heritage of both properties while keeping Councils options open information pertaining to a potential public/private redevelopme property: i. Rationale for this designation, as Proceed to designate the Rockway Gardens: recommended by Heritage Kitchener, is included in CSD-13-052. ii. On October List the Rockway Centre property on the Municipal Heritage Regis 2, 2012 Heritage Kitchener recommended City Council proceed with to designate the Rockway Centre property. City Council deferred Heritage Kitchener recommendation so that it could have more inf future plans for the site prior to making a decision on the desi does not have sufficient information related to the option for a staff are recommending Council not make a final decision on the this property at this time, but rather proceed to list the property on the Municipal Herit Register. Listing properties on the Municipal Heritage Register identifying the Citys cultural heritage resources and would ser the heritage value of the Rockway Centre property. It does not i obligations with regard to obtaining heritage approvals, meaning require a heritage permit or City approval to make alterations. have implications in ensuring that the City is consistent with t Statement when processing Planning Act applications. This means the submission and approval of a Heritage Impact Assessment or a as a condition of the processing of a Site Plan application for owners of property listed on the Municipal Heritage Register mus notice of their intent to demolish, with such notice providing t consider designation … although this is not a specific issue in is owned by the City. iii. As part of an RFP for a Include specific heritage requirements in the RFP process: potential public/private redevelopment, the City would include s recognize the heritage value of the property, including: the pot some, or all of the existing building; the reuse of items and ma statement of significance appended to CSD-13-052; or the commemo propertys history. By requiring proposals to recognize the heri the City is able to engage the resources and creativity of the p options that may not only be acceptable, but welcomed by the Cit City has seen several very positive examples of the private sect properties (e.g. The Tannery, The Breithaupt Block, Kaufman Loft requirements included in the RFP would be assigned a score and t would be scored on their ability to recognize the heritage of th important criteria. Council may choose to assign greater points the adaptive reuse of the existing building versus a proposal th removal of the building but achieve a level of conservation thro the reuse of materials from the existing building in a new struc commemoration of its historic significance through interpretatio the property and full requirements for any proposals would be de approved by City Council before the RFP is issued. 13a - 7 Once City Council has received specific proposals from the priva three options depending on the nature of proposals received: i. Reject all proposals and proceed to designate the property. ii. Accept a proposal that includes the adaptive reuse of some, building and defer consideration of heritage designation until a complete. This would be very similar to the approach being taken redevelopment of the Rumpel Felt building as part of the multi-m would also mirror the approach taken for The Tannery and The Bre downtown Kitchener. iii. Accept a proposal for the redevelopment of the property tha existing building (but recognizes the properties heritage value do not designate the property. At this time, staff does not believe Council has enough informat private sector proposals) to make a decision on which of the thr most advantageous for the municipality. As a municipally owned b redevelopment will occur on the property until City Council has decision on a heritage designation at a later date. 4. Continue efforts to maintain the Rockway Centre facility to a is in-line with other municipally owned facilities, during the i long term alternative is implemented. Much like other recreation facilities owned and operated by the regular facilities maintenance program. The facility systems (e. pump, etc.) are reviewed at least annually and repaired or repla budget availability in relation to the needs of other City facil has spent a total of $1,084,300 in maintenance and capital inves Centre building which is in-line with other municipally owned bu In 2010, an independent audit conducted on the facility showed t maintained and cared for by City staff. However, a number of inh foundation repairs, accessibility limitations, program space/equipment constraints) continue to pose challenges to the use of the facility as an older adult rec As part of the 2010 facility audit, the external consultant did immediate priority for action, representing items of structural or as a liability. The consultant did identify a number of prior estimated at a cost of $1,453,000 in 2010 (excluding HST, constr and engineering fees). Significant areas of concern identified through this audit inclu limited barrier-free access and a need to replace the existing e of water into the basement of the Centre during periods of wet w significant risk to the facility. Staff has made every effort to the installation of a significant sump pump/filtration system, i and filtration changes, iii) remediation efforts from the interi 13a - 8 of rain leaders away from the foundation. Staff will continue to occur and attempt to limit their impact on programming in the ce In addition to the building/site related limitations noted above needed to the facility to continue to support older adult recrea long-term. The existing three storey building is poorly configur programs, activities and events expected in a modern older adult interior is rearranged. These challenges include: Poor traffic flow on all levels Visual and auditory challenges Insufficient elevator system Kitchen deficiencies: to function as a commercial kitchen, the i need to be upgraded ($100,000) Kitchen and dining room/auditorium in the basement level Limitations for programming/activities (e.g. low ceiling height Flooring in areas is not conducive to programming Lower multipurpose room acts as a fire route for the lower level Many rooms act as pass through to other rooms making scheduling There is insufficient storage There are no change rooms to support fitness activities and the changing Lack of adequate space limits activities that are in demand The Centre cannot accommodate a Senior Day Program, which is in Use of the patio is limited for older adult programming (proximi Given the Citys financial limitations to implementing the Rockw Business Case, and the timeframe for any potential public/privat Rockway Centre, it is important to recognize that older adult pr offered at the Centre for years to come. For that reason, the Ci its regular maintenance program to ensure the facility is kept a At the same time, given continuing questions around the long-ter older adult recreational centre, staff does not believe it would significant capital dollars on major renovations or upgrades to vision for the Centre is known. Should the facility require any maintain it to a reasonable standard, staff will seek Councils ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendations contained in this report align with the foll included in the City of Kitcheners Strategic Plan: : A public/private partnership Quality of Life (community programs and facilities) € development on the Rockway site could allow the City to achieve adult/community centre faster and at a lower financial cost to t do so on its own. As noted in the Citys strategic plan, the rec could help balance tax approach with opportunities to invite in programs and facilities. 13a - 9 A new, purpose built older Diversity (offer ample opportunities for inclusion): € adult/community centre would provide a fast growing portion of o recreational and gathering space that is purpose built and can b existing and future older adults. The Development & Environment (intensification is earth and people friendly): € reurbanization of the Rockway Centre site would support the impl Growth Management Strategy, Official Plan and Mixed Use Corridor Zoning along King Street, by promoting urban intensification and the development o oriented built form along King Street. In addition, the redevelo catalyst to spur additional development of other underutilized s LRT station area. Efficient and Effective Government (financial management … stewardship of public € While the Rockway Feasibility Study and Business Case identifie funds): addition on the FHCC as their preferred option, staff recognize available for recreational needs over the next ten years. For th recommending the findings of the feasibility study be considered Update and DC Review to ensure the limited funding available is priority recreational needs of the community. Efficient and Effective Government (financial management … reduc € By engaging the private sector in the potential redevelopment o taxes): and the construction of a new, purpose built older adult/communi potential to achieve that new centre sooner, and at a lower fina to do so on its own. Recognizing that older adult Efficient and Effective Government (asset management): € programming will continue to be offered at the Rockway Centre fo will continue its regular maintenance program to ensure the faci standard. FINANCIAL IMPLICATIONS: Staffs recommendation to engage in an RFP process for the Rockw potential financial impacts: RFP Process Some of the work required to develop the Terms of Reference for : € has already been completed, however, some additional expenditure (e.g. legal advice, fairness advisor, real estate analysis, etc. Purchasing Bylaw, the City could also potentially incur some cos candidates for their more detailed submissions. Specific costs r identified and presented to City Council at a later date (along of the process itself), but prior to issuing the Terms of Refere. The exact components of the Citys financial contribution to a Public/Private Partnership: € public private development are not known at this time and could Council receives further information, including specific proposa The cost to the City of individual private sector proposals woul proposal evaluation process. At this point it is safe to assume 13a - 10 land would be the largest component of the Citys financial cont redevelopment on the site. COMMUNITY ENGAGEMENT: A full description of the extensive public consultations underta Study and Business Case Project Team is included in CSD-13-047. recommendations to City Council have been shared with the Projec Immediately after sharing this report with City Council, staff w community centres, including the three older adult recreation ce Breithaupt Centre and the Downtown Community Centre) to make use access and read this report online. Hard copies will also be mad staff will be spending time discussing the report details with u following its release. In an effort to inform the general public about this report staf interviews with local media outlets. This report will be posted and will also be available to the general public as part of the May 23. Staff will use social media to make residents aware of t direct links to where it can be found online. Jeff Willmer, CAO ACKNOWLEDGED BY: 13a - 11 APPENDIX A: Rockway Centre Development Concepts Report By Coldwell Banker Peter Benninger Realty and the GSP Planning G 13a - 12 May 15, 2013 1405 King St. E Rockway Centre Development Concepts Report Prepared by: Coldwell Banker Peter Benninger Realty 508 Riverbend Drive Kitchener, ON N2K 3S2 P: 519-743-5211 F: 519-571-4371 DISCLAIMER: Please note all information provided herein is for information purposes and has been obta which have been deemed reliable, but Coldwell Banker Peter Benninger Realty cannot guarantee its accuracy or completeness. 13a - 13 1.0 Purpose The City embarked on a feasibility study and business case to look at the long term use of the Rockway Seniors Centre and site for the provision of older adult service delivery and possible other uses. In addition to the options that have been developed to date for the Rockway Centre at 1405 King Street East, the City wishes to also consider the redevelopment of the subject property (the SiteŽ) a mixed used development with a residential and community centre/commercial component, and a high density residential option should the community centre function move from the site. The purpose of this report is to prepare and test the mixed use Rockway Centre Main Entrance on King residential concepts discussed above for the Site and the adjacent land. Site Description & Community Context The Site is 1.9 acres in size, triangular in shape and is bordered by King Street East to the north, Charles Street East to the south, and Preston Street to the west. Currently located on the Site is the Rockway Centre, with its main entrance fronting onto King Street East. Two accessory buildings are located at the corner of Charl and Preston Streets. At the intersection of King and Preston Streets Charles Street Frontage is a lot of 0.12 acres under separate ownership. This lot is currently occupied by four commercial billboards. Aerial image with outline of the Site and separately owned parcel Page 2 of 15 13a - 14 The Site is located along the King Street corridor in central Kitchener. This is an area of mixed land use and density, and is undergoing a gradual transition and improvement spurred by its central location in the City, and the anticipated LRT service. The Site is part of the gateway to the City of Kitchener given its location at the south end of the central urban area, and its proximity to the terminus of Highway 8 and an interchange of the Conestoga Parkway. As well, the Site is unique in its location adjacent to the historic Rockway Commercial Use on King Street Gardens and the Rockway Golf Course. Adjacent to the Site across King Street are two apartment buildings, one six and the other twelve storeys. Both of these buildings are targeted towards senior residents. Also on King Street are various commercial uses, such as retail, office, automotive and health service businesses, within walking distance of the Site. The Kitchener Memorial Auditorium Complex, the A. R. Kaufman YMCA, and a number of elementary and secondary schools are also in the vicinity of Adjacent King Street Development the Site. The Site is located on the GRT No.7 mainline local bus route, which provides frequent service to the core areas of Kitchener and Waterloo and Fairview Park Mall. The bus stop is located in front of the Rockway Centre. The iXpress bus route stops nearby at the intersection of Charles St. E and Ottawa St. S, an approximately 500 metre walk from the Site. The future LRT service will also include a station at the intersection of Charles and Borden Streets, an approximately 600 metre walk from the Site. 2.0 Planning Framework 2.1 City of Kitchener Official Plan In the City of Kitchener Official Plan, the Site is designated as Mixed Use Corridor. The intent of this designation is to provide for a broad range of commercial and residential uses. Mixed Use Corridors should intensify over time through pedestrian-oriented developme surrounding low rise areas. New development which abuts major or arterial roads will be allowed to build to a maximum Floor Space Ratio (FSR) of 4.0. Retail uses are limited to a maximum gross floor area of 1,000 square metres and must be located within mixed used developments or existing buildings. The Site is also within a Special Policy Area as contained in Section 13.2.3 of the OP. The Special Policy Area encourages the development of a high profile entranceway to the city through the redevelopment of higher density mixed use buildings along the King Street corridor. Page 3 of 15 13a - 15 2.2 City of Kitchener Zoning By-law The Site is zoned Commercial Residential Four (CR-4) in the City of Kitchener Comprehensive Zoning By- Law. The CR-4 zone permits commercial and residential uses, including multiple residential and residential care facility. The zone permits a maximum FSR of 4.0 and maximum 4.0 metre setback for any yard that abuts King St. Side yards must be a minimum of 3.0 metres for any building over 10.5 metres in height, and rear yards must be 7.5 metres or one half the building height, whichever is greater. The landscaped area is to be a minimum of 10 percent of the lot area. There is no ma height limit in the CR-4 zone. The properties adjacent to the Site across King Street and across Preston Street are zoned Mixed Use Two (MU-2) and Mixed Use Three (MU-3). These zones are similar to the CR-4 zone in the range of uses permitted and some of the regulations are the same, for example, the maximum permitted FSR in all of these zones is 4.0. The MU-2 and MU-3 zones differ from the CR-4 that are permitted, which allowed buildings to be situated closer to the street. The MU-2 and MU-3 zones also contain regulations for minimum height requirements and minimum glazing requirements on street facades. Under Section 6.1.2 of the By-law, a multiple residential unit development of 61 units or more requir 1.5 parking spaces per unit. A residential care facility requires 3 spaces, plus 1 space for every 3 staff. In the MU-2 and MU-3 zones, multiple residential developments require only 1.0 parking space per unit. 3.0 Site Opportunities and Constraints This Site is a unique redevelopment opportunity. It sits along the easterly portion of King Street, the citys main street and on the entrances from Highway 7/8 to Downtown. The Site overlooks the beautiful Rockway Gardens and the Rockway Golf Course, providing spectacular views for residential units oriented to the south. High frequency transit service is in place at the door and an express bus stop is within walking distance to the Site. The Rockway Gardens and Golf Course Official Plan policies and Zoning By-law regulations currently i place promote higher density redevelopment of this and nearby sites, and the creation of an entranceway to the central part of the city. There have been three apartment buildings constructed in this area over the last 20 years, and the development of the site could serve as a catalyst to spur redevelopment of other underutilized sites in the Ottawa/Charles LRT station area. Preston Street Grade Change Page 4 of 15 13a - 16 The Site is within the catchment area of the future LRT station on Charles Street between Borden Avenue and Ottawa Street. The neighbourhood around the station is anticipated to redevelop and intensify, transitioning from low rise and low density manufacturing and commercial uses to a high density, mixed use neighbourhood. The City of Kitchener will be creating a Station Area Plan in the near future to provide a policy, zoning, and infrastructure framework to facilitate this change. The Region prepared the Station Area Plan Pilot ProjectŽ report in 2008 which included a demonstration plan for the Ottawa/Charles area to illustrate the process and key features of future station area plans. The demonstration plan illustrates significant redevelopment in the neighbourhood including a mixed use building on the Preston Street frontage of the Site, adjacent to the Rockway Centre. Public sector involvement through infrastructure upgrades and development of public sites can be a catalyst for change (such as the City of Kitcheners involvement in the University of Waterloo School of Pharmacy in the King/Victoria area) and spur other development in the area. This could be a positive outcome of the redevelopment of the Site. Page 5 of 15 13a - 17 There are some constraints to Site development. The triangular shape of the Site is not as efficient or as useable as a rectangular site. The lot at the corner of King and Preston Streets not owned by the City creates limitations as well by introducing more irregularity to the parcel shape. This is the deepest part of the site and the inclusion of the external parcel, notwithstanding its limited size of 0.12 acres, significantly enhances the developability of the Site as the corner of the block can be efficiently used. There is a grade change of about 3 metres across the property in the King/Preston/Charles portion of the site. This may be beneficial in some schemes with underground parking, but poses some constraints for schemes with significant surface parking, such as that preferred for the community centre. The Site currently has access from Charles, Preston and King Streets. Concepts for a seniors centre on the site previously prepared for the City have utilized Preston and King Streets for vehicular access. All three streets could work with proper driveway siting. Both Charles and King Streets have significantly wide boulevards adjacent to the Site. Currently a portion of the parking lot sits on the Regions King Street right-of-way. It is uncertain if the R ever require the full 30 metre ROW in this corridor given the decision to route the LRT in another location, and it should be asked whether some of this ROW could be consolidated with the Site, or at a minimum whether surface parking could be located within the ROW as is currently the case. Along Charles Street, if the City reduced the boulevard so that it was parallel to the curb at a depth of 3 or 4 metres (sufficient for sidewalk, lighting and street trees), the additional land would provide design flexibility for the any development scheme. 4.0 Development Concepts Two series of development concepts have been prepared for the Rockway Centre, the first providing for a mixed use development with a senior/community/medical and commercial facilities on the ground floor and residential above, and the second series with only high density residential development. F each of these scenarios, development concepts were prepared for the City owned property and for the full block should the City choose to pursue the acquisition of the 0.12 acre parcel at the corner of King and Preston Streets. The concepts illustrate an order of magnitude for site redevelopment options. More detailed architectural and engineering analysis and design will be required prior to selecting a preferred development strategy. The City of Kitchener has recently had Development Concepts prepared for a senior centre on this site as part of the Rockway Centre Feasibility Study and Business Case Study prepared by the Re-Think Group with AECOM Canada Architects Limited. Option 3 of this series c on the site (see image below). The mixed use concepts in this report have utilized the Option 3 footprint and expanded it slightly to create a ground floor for community, medical and commercial use of approximately 35,000 sq. ft. Page 6 of 15 13a - 18 AECOM Option 3 Concept Plan for a new Rockway Centre The CR-4 and MU-3 Zones applying to the Site and nearby, do not contain a building height limit. The Eastwood Seniors apartment adjacent to the Site is 12 storeys in height. Other recent apartment buildings constructed or in the approval stage within the nodes and corridors of Kitchener and Waterloo are in the 15 to 17 storey range. This building height, with well designed building mass and architecture, is appropriate for this location. The building mass should be oriented to King Street if possible to enclose the street space and create an appropriate edge to the public realm. The appropriate amount of parking to be provided on-site will be a function of market conditions, zoning by-law requirements and future transit service. The current Rockway Centre has approximately 112 parking spaces on-site for a building in the order of 15,000 sq. ft. The Zoning By-law currently requires one space for every 23 sq. m. of community centre space which for a building in the order of Concept Three would be approximately 133 spaces. Notwithstanding this requirement, Concept Three of the February Feasibility Study only provided 91 spaces. The MU Zone applying to this area (but not this site) requires a minimum of one space per residential unit. This parking requirement, lower than the 1.25 or 1.5 spaces per unit in other parts of the City, recognizes the good transit service in the area, and that service will improve with the implementation of the LRT service over the course of the next five years. The required parking will have to be addressed through a minor variance or zoning by-law amendment. The number of residential units that could be generated with new buildings is dependent on the size of the apartment units. It is anticipated that development at this location will attract buyers looking for larger units, rather than the small units that are more in demand in the Downtown market. As such, the unit counts provided in these concepts assumed a nominal unit size of 800 sq.ft., with some units being larger and smaller. Page 7 of 15 13a - 19 Concepts One and Two (Note: copies of each concept plan are included following each summary. The full detail concept plans and massing models for each option are included as Appendix I). Concepts One and Two provide for a mixed use development with a main floor community centre/medical/commercial activity of approximately 35,000 sq. ft. Above this building is an L-shaped residential component with a tower at the north end parallel to Preston Street and a mid-rise wing oriented to King Street. In Concept One, the option utilizing the complete block, the building is oriented to the Preston/King corner. A 16 storey tower situated above the community facility with a mid-rise component of 3 floors oriented towards King Street. This L-shaped building configuration of tower and mid-rise with a community centre podium has a total floor area of approximately 248,000 sq. ft. and total FSR of 2.8. Depending on the unit mix, it is anticipated that approximately 190 apartment units could be created. One level of underground parking could be provided under the building complex and site to accommodate approximately 200 parking spaces. The surface parking arrangement is similar to that of Option 3 of the ReThink feasibility study, however it has been expanded to encroach onto the very deep King St. right-of-way associated with King Street. The total surface parking supply is approximately 107 spaces to serve the community facilities at grade. Concept Two takes a similar building program and utilizes only the City owned land. The building has to be shifted to the southwest towards Charles Street to accommodate the community centre floor plate. The Community Centre is approximately 35,000 sq. ft. in size and the residential tower and mid-rise wing create in total approximately 250,450 sq. ft. of floor area with an FSR of 3.1. The residential building is 16 storeys and 3 storeys in height and will provide for approximately 190 apartment units, depending on unit size. The underground parking supply will be approximately 200 spaces on one leve for the residential component and the surface parking totals approximately 52 spaces. The parking l Page 8 of 15 13a - 20 located along the King Street frontage of the Site. As such, this arrangement does not enhance the King Street corridor as well as Concept One. Concepts Three, Four and Five In these scenarios, only high density residential development is provided on Site. In Concept Three, a 17 storey tower along Preston Street, with an attached 4 storey wing adjacent King Street and a 6 storey building wedged into the tip of the triangle adjacent to Rockway Gardens are provided. This concept generates a total floor area of approximately 298,300 sq. ft., 270 units and has an FSR of approximately 3.4. Similar to the previous Concepts, a single level of underground parking generates approximately 200 spaces with 77 spaces of surface parking at a rate of approximately one space per unit can be provided. Additional density could be provided if a second full or partial level of underground parking was provided. Page 9 of 15 13a - 21 Concept Four utilizes only the City owned property. This building Concept generates a total floor area of approximately 238,170 sq. ft. and an FSR of 3.6. Two towers of 17 and 14 storeys are provided at end of the Site with podium bases edging King Street. Approximately 324 units would be contained in these buildings. To support this level of density, two underground parking levels would be required to generate in the vicinity of 300 parking spaces. The surface parking component is shown as 74 spaces with access from Preston and King Streets. Concept Five utilizes structured parking (3 levels above grade, 1 below) to address parking needs. Brownstone style, 3 storey townhouses are laminated onto the King and Charles Street frontages of the parking structure to shield it from the street. A 17 storey tower is situated along Preston Street with a 4 storey mid-rise at the east end. This concept generates a total floor area of about 256,170 sq. ft. and an FSR of 3.1. Approximately 219 residential units and 268 parking spaces are provided. Page 10 of 15 13a - 22 A summary of the five building concepts (estimated figures) is included in the following table: Concept Site Building Community Residential F.S.R Community Residential Area Area Centre Units Centre Parking (s.f.) (s.f.) Parking (ac) One 2.0 248,000 35,000 190 2.8 107 spaces 200 spaces Two 1.9 250,450 35,000 190 3.1 52 spaces 200 spaces Three 2.0 298,300 - 270 3.4 - 277 spaces Four 1.9 238,170 - 324 3.5 - 324 spaces Five 1.9 256,170 - 219 3.1 - 268 spaces 5.0 Market Assessment 5.1 Market Data Condominiums are one of the fastest growing segments in Waterloo Region and are represented by a mix of townhome and apartment style developments in both urban and suburban settings. The condo market is becoming an attractive option for many residents from various age groups which have a strong desire for urban lifestyles featuring a high number of amenities within walking distance. There is an increasing demand for high density development and reurbanization in the Regions Urban Growth Centres as a result of the anticipated Rapid Transit system that will include Light Rail Transit (LRT), an Adapted Bus Rapid Transit (aBRT) as well as a revised pattern of iXpress corridors. Developers are able to take advantage of these increased density allowances, specifically in Urban Growth Centres of Kitchener and Cambridge by receiving significant Development Charge incentives. There are a number of new condo development projects in Waterloo Region, each at various stages of marketing and/or development. A high level analysis of 17 different condo projects was conducted. Although this may not capture all projects it was used to provide a sense of how many units are sell per project per month. From the information gathered on these projects, it appears to be between 3 and 4 units per project, per month. The re-sale apartment condo market has been experiencing sales of approximately 500 units per year Region wide, of which, approximately 300 units per year are sold in Kitchener (a more detailed chart summarizing both townhouse and apartment condos is also included in Appendix II; Source Kitchener-Waterloo Association of Realtors M This report provides redevelopment options of the Rockway Centre site located at 1405 King St E, Kitchener. These options include a mixed use development with a residential and community centre/commercial component, and a high density residential option without the community centre function. The market data indicates that the new condo market is a highly competitive market providing consumers with a wide array of options. As such, it is anticipat increase in unit sales for this proposed redevelopment if it were to include a mixed use component which incorporates the community centre. The community centre as well as additional complimentary amenities (i.e. medical/commercial uses) located immediately onsite provides a unique marketing Page 11 of 15 13a - 23 opportunity for the project and also creates a clear definition of a target audience in the aging population. Alternatively, prospective developers may also be enticed by the ability to stage the development in multiple phases when considering a solely residential high density development. Introducing the project in phases is common in new condo development as it provides the developer with the opportunity to commence construction of a smaller number of units at the outset, while ultimately achieving the desired density on a given site. In either scenario, the site also benefits from its proximity to the Rockway Gardens and Rockway Golf Course. Although it is not presented as a development option within this report, conceptually, it is feasible that the development that incorporates the inclusion of the community phased approach. By tightening up the foot print and creating a 2-storey community centre with residential above, it allows for a second stage of residential units to be constructed afterwards. High level research into the feasibility of a public/private partnership relating to the mixed use development including a municipally run seniors/community centre with an adjoining residential component, was also conducted. Initial conversations with the development community indicated there would be interest. It was noted that the seniors/community centre and residential units specif seniors would be a key driver in generating interest in the partnership. Developers would require further due diligence to satisfy themselves with respect to the market, demand, etcƒ An analysis was also completed to provide a basic valuation of the land under an optimized development scenario. Comparable properties were evaluated that were located within the City of Kitcheners Urban Growth Centre and the Central Neighbourhoods Boundary as these would most likely possess the most similar site characteristics such as zoning, proximity to amenities and to public transportation including proposed LRT station areas as well as city/regional incentive pr development charge and parkland dedication savings). The site has many positive features in these respects including the size of the parcel, the permissive zoning and its location being within the 800m catchment area of the proposed Charles/Borden LRT Station Area. 6.0 Development Recommendations The development concepts of this report illustrate both mixed use (community facilities with residential above) and residential only options for the Site at densities contemplated by the Mixed Use designation of the Official Plan. Concepts One, Three, Four, and Five are oriented to the King Street edge and create a strong urban fabric in the area. In conjunction with building mass and height shown in these concepts, the redevelopment of the Site will serve as a new gateway to the centre part of the City. Concept Two is also a viable option but does not support King Street in as positive a manner as the other plans. Page 12 of 15 13a - 24 Concepts One and Two with the community facilities at grade could provide an attractive development option for the private sector. While the Ottawa/Charles area has significant redevelopment potential, change to date has been slow, and the redevelopment of the Rockw pioneering opportunity. The new community space at the base to the building could be a very attractive element for prospective residents/purchasers, and combined with the location near Rockway Gardens and good transit service, differentiate this project from others in the local marketplace. The planned King Street right-of-way in this location is extremely wide at 30 metres. There is currently a three lane cross section and no on-street parking. The distance from the property line to the current curb line is approximately 14 metres. If the Region has no plans to expand the road to utilize its maximum right-of-way, perhaps the Region could sell back some of this excess right-of-way to the City to expand the Site area. Similarly, a very wide boulevard is in place along Charles Street with the distance between curb and property line ranging from 3 metres at the bend to about 11 metres at mid- block. A narrower boulevard of approximately 3 or 4 metres could accommodate sidewalks, lighting and street trees with a balance of the land going to increase the width of the block as it progresses to the east. The residential towers should be in the 12 to 18 storey range with a smaller floor plate to minimize the bulk and encourage slenderness in the built form at this City gateway location. The tower should be sculpted to be an elegant architectural statement. The tops of the towers should be carefully designed and integrated with the overall architectural vocabulary. A strong building podium and base should be created and designed to support the public realm of King Street. Direct access to King Street and grade level design that animates King Street is also recommended. The Zoning By-law will require an amendment to reduce required parking for both community centre and residential uses. Other adjustments to current regulations may also be necessary depending on final concept. Page 13 of 15 13a - 25 Appendix I 13a - 26 13a - 27 13a - 28 13a - 29 13a - 30 13a - 31 13a - 32 13a - 33 13a - 34 13a - 35 13a - 36 Appendix II 13a - 37 WATERLOO REGION RESALE CONDO MARKET 13a - 38