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Home My WebLink AboutDSD-19-106 - CRoZBy - New Zoning By-law (Stage 1)REPORT TO:Planning & Strategic Initiatives Committee DATE OF MEETING:May 13, 2019 SUBMITTED BY:Alain Pinard, Director of Planning, 519-741-2200 ext. 7319 PREPARED BY:Brandon Sloan,Manager, Long Range & Policy Planning 519-741-2200 x7648 Richard Kelly-Ruetz,Technical Assistant (Planning & Zoning) 519-741-2200 x7110 WARD(S) INVOLVED:Wards 9 & 10 DATE OF REPORT:May 3, 2019 REPORT NO.:DSD-19-106 SUBJECT:New Zoning By-law (Stage 1) Deferred Items: Urban Growth Centre Bonusing/Zoning RECOMMENDATION: ThatSections 6(Urban Growth Centre) and 4.3 (Bonusing) of the new Zoning By-law (Stage 1) and associated mapping attached as Appendix D to report DSD-19-049be approved asAmendment No.1 to By-law 2019-051subject to the following minor updates: to include Net-Zero Development with updated Bonus Values of: o Equivalent to LEED Gold or above (or comparable): 1.0 FSR o Net Zero Energy: 1.25 FSR o Net Zero Carbon: 1.5 FSR o Net Positive Energy or Carbon: 1.75 FSR age metric onlyto be: o Greater than 10%: 1.0 FSR o Greater than 25%: 2.0 FSR o Greater than 50%: 1.5 FSR; and further Thatstaff prepare the Bonusing Implementation Guide, with additional stakeholder consultation, within one year of the approval of the bonusing provisions of the new Zoning By-law. BACKGROUND: Council deferred consideration of the bonusing provisions for the Urban Growth Centre(i.e. -law from April 29, 2019 to May.The base Urban Growth Centre zones and properties were also deferred. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 1 - 1 REPORT: The exchange of community benefits for additional building height and/or density ofa development, referred to as bonusing, is a tool currently allowedunder section 37 of The Planning Act (as amended). This tool is often used as an incentive. It does not guarantee that the provisions will happen, but in combination with other approaches as part of an overall city- Kitchener Official Plan). The Kitchener approach to bonusing could be one of the most innovative and would set us apart from other municipalities in our region and most others intheprovince. balances community and development interests by providing a mechanismto secure community benefits that exceed standard and allowable requirements in a way that is transparent, predictable and streamlined. If used to its maximum potential, development of up to 8.0floor space ratio (FSR) would be allowed as-of-right in appropriate areasof the downtown without the need of a zoning by-law amendment. If none of the bonusing provisions are used, a maximum of 3.0 FSR wouldgenerallybe permitted in the downtown. Currently, bonusing provisions are already encoded within many ofthe downtown zones of By- law 85-1.However, there are only three community benefits (residential dwelling units, amenity area and heritage conservation).Although the tool was rarely used until recently, the existing provisions have now led to positive downtown benefits. Through a consultative process, the approach to downtown development and bonusing was updated in the approved and in effect Official Plan(Sections 15.D.2 and 17.E.17). A range of objectives and community benefits were identified including affordable housing, public amenity area, green infrastructure, environmental performance,and transportation demand management. Through the 4-year process of preparing the new zoning by-law, which must conform to the Official Plan, additional benefits such as food store, architectural excellence, 2or 3- bedroom dwelling units, creative industriesand business incubator space were also identified. Garment St. Condos - Momentum The eegulations for the Urban Growth Centre allows for greater density in an appropriate area in exchange for certain pre-defined community benefits. The working team of Planning and Economic Development staff reviewed the approach of 14 other municipalities, investigated potential implications using 3D visualizations, undertook numerous internal discussions,andreviewed recent developments in the City of Waterloo, Toronto, Ottawa and Kitchener. A first draft was released for public review in May2016 and an updated version was released for further public review at the April/May 2018 Statutory Public Meeting. Comments were reviewed and responded to. Staff presented and discussedwith the Downtown Action and Advisory Committee twice, attended a Downtown Business Improvement Area (BIA)meeting and worked further with local consultants to further refine the approach. 1 - 2 The new zoning by-law provisions translate the policy direction and list of community benefits of the Official Plan into the Zoning By-law but since the by-law is a regulatory, legal tool it should be more specific (and as definitive and clear as possible). Not only should the bonusing provisions be considered in combination with the Official Plan policies, but the next step will be to prepare a Bonusing Implementation Guideline document to further detail the process and more in depth logistics of how each benefit is provided through the development process and agreement (to be registered on title under s.37 of The Planning Act). {ƷĻƦ Ќʹ {ƷĻƦ Њʹ {ƷĻƦ Ћʹ LƒƦƌĻƒĻƓƷğƷźƚƓ hŅŅźĭźğƌ tƌğƓƚƓźƓŭ .ǤΏƌğǞ DǒźķĻ Important Considerations Before bonusing isconsidered, a development proposal would needto be pre-qualified. A landowner would be required to prepare, and receive approval of, a Bonusing Justification Study to confirm it is compatible with surrounding areas, achieves Official Plan and urban design objectives, has the necessary infrastructure and is good planning. Oncepre-qualified, the Study wouldidentifyand justify the facility, services or matters to be provided in exchange for the additional density.These would be considered and secured through the site development and bonusing agreements. Proposed community benefits must be over and above the standard requirements and exceed the level of improvements that a municipality otherwise has the authority to require.All of the benefitslisted in the bonusing provisions of the new zoning by-law are over and abovestandard requirements and through a bonusing by-lawthere isa legal mechanismto secure the benefit for the short and long-term. Advantages There are a number of advantages to the recommended approach, including: Pre-defined,transparentand predictable. Different fromthe approach of most other municipalities, which can be lengthy and 1 undetermined negotiation of benefits. Balanced approach. Economic developmentand planning incentive (along with the approach to new downtown parking provisions) in a time immediately following the sun-setting of the downtown DC exemption incentive. Certaintymakes up front development costs easier to predict. It provides a clear understanding to landowners, public and Council of what is permitted and what to expect. 1 In Ontario, the Town of Grimsby includes some community benefits in exchange for added density within its zoning by- law. The City of London has a hybrid approach. Most others utilize a site-specific zoning by-law amendment application approach. Nanaimo, BC (different provincial legislation and policies) uses a tiered approach within their zoning. 1 - 3 Cutsprocess while still maintaining certainty.Reduces time, expenseand risk. Intensificationin the Urban Growth Centre (UGC)benefitsthebroadercommunity. Is one of the only tools available to municipalities to ensure that many of the matters are provided and maintained with a development. Focuses growth and amenities in the UGC. Does not rely on valuation; instead uses provision of items, sizes, costs, percentages. Integrates into the site plan process. Involves an agreement to secure the benefits and how they are maintained for the long term. Amore detailed description of the process, and examples of the benefits will be provided in the th staff presentation and discussion at the May 13Committee meeting. It is very important to distinguish the recent developmentprojectsin the City of Kitchener that have used the existing By-law 85-1provisions or are located outside of downtownand were considered through site- specific applications. Thebenefits secured thought these developments were not pre-defined. Potential Risks Potential risksinclude a lack of interest in pursuing the bonusing provisions or an uneven use of bonusing provisions, where only a selected few community improvements are being provided. Because this is aninnovativeapproach and there are limitedcomparable precedents, staff will monitor the effectiveness and the impactsof the bonusing provisions and the Cityof Kitchener can make adjustments as needed through the annual by-law update process. Another potential risk is that at the time of writing, the Provincial government announced another series of proposed planning reforms, includinglegislative changes related to bonusing reduced or even eliminated. However, based on initial announcements it would appear that roposed approach aligns the provincial objective of ensuring that development costs and community benefits arepredictable. Next Steps Staff will also preparing the . This will outline the details of how bonusing is integrated into the development and agreement process. The Implementation Guide will have more description for each community benefit (including examples)and will provide a course of action for how the bonusing provisions are to be deployed (e.g. how and where the added Њ͵ ƚƓźƓŭ .ǤΏƌğǞ park space or public realm funds provided will be utilized and the definition of affordable). Approval of the zoningprovisions would provide Ѝ͵ wĻǝźƭĻͲ ƩĻķǒĭĻͲ Ћ͵ .ƚƓǒƭźƓŭ more certainty for the preparation of the ƩĻķźƩĻĭƷͲ ğķƆǒƭƷLƒƦƌĻƒĻƓƷğƷźƚƓ implementationdetails. ĬĻƓĻŅźƷƭ ğƓķ ǝğƌǒĻƭDǒźķĻ The mid-to long-range objective is to reduce, remove, and adjust the bonusing provisions as more of the community benefits are provided, to Ќ͵wĻǝźĻǞ incorporate further refinements in the approach, or to re-prioritize objectives (potentially within different 1 - 4 downtown districts).Theregion has begun the process of updating their official plan polices to implement the updated provincial growth plan and growth for the next planning horizon. Subsequently, the city will have to update our plan to conform, including revisiting downtown growth, density and bonusing. As such, the new UGC and bonusing regulations will be revisited again in the coming years. Potential Bonusing in Other Areas A future step is to review the potential approachtocommunity benefits within 450 meters of an ION stop as per the Official Plan and approved PARTS Plans. Planning Analysis to bonusing balances community and development interests by providing a mechanism to secure community benefits that exceed standard and allowable requirements in a way that is transparent, predictable and streamlined. The recommended zoning by-law is consistent with and conforms to provincial policy, the Regional Official Plan and the Kitchener Official Plan. Theproposed community benefits implementsnumerouspolicy objectives related to transportation demand management, affordable housing and sustainable development. Minor updates are recommended to respond to comments at the April 2019 Statutory Public Meeting, including incorporating Net-Zero Development and refining the affordable housing value. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Strategic Priority 2Strong and Resilient Economy Strategy 2.5 Facilitate the ongoing development of Downtown Kitchener as the heart of the City. Strategic Priority 3 Safe and Thriving Neighbourhoods Strategy 3.3 Manage growth, curb urban sprawl, and foster more mixed-use development, ensuring new development is integrated with the diversity and character of the surrounding community. 2019 Business Plan NB11 Comprehensive Zoning By-law Review FINANCIAL IMPLICATIONS: The CRoZBy project is currently within its allocated budget. COMMUNITY ENGAGEMENT: th See previous report and description in the report above. In addition, between the April 29 Council decision and the preparation of this report, planning staff had further conversations and correspondence with each ofthe delegations on the topic along with some members of Council. PREVIOUS CONSIDERATION OF THIS MATTER: Report CSD-16-022 CRoZBy Component B First Draft (Urban Growth Centre Zones, other) Report CSD-18-002 -CRoZBy Final Draft and Companion Official Plan Amendment Stat. Mtg. Report CSD 19-049New Zoning By-law (CRoZBy) Stage 1 Non-Residential Zones 1 - 5 CONCLUSION: Utilizing a zoning by-law to secure community benefits in exchange for added density is a tool currently allowed under ThePlanning Act(as amended)and is further authorizedand directed in the Kitchener Official Plan. Staff developed an updated and balanced Kitchener approach through a lengthy public process over the last 8 years (new Official Plan and new Zoning By- law). The downtown is the primary area where the Province, Region and Citywant intensification. This is one tool that will continue to give Kitchener the edge while at the same time helping ensure that with added density, new development will positively contribute to our community. REVIEWED BY: Cory Bluhm, Executive Director, Economic Development ACKNOWLEDGED BY: Justin Readman -General Manager, Development Services 1 - 6