July 17, 2017 - Minutes

Date:

Monday, July 17, 2017

Place:

Anderson Room
Richmond City Hall

Present:

Mayor Malcolm D. Brodie, Chair
Councillor Chak Au
Councillor Derek Dang
Councillor Carol Day
Councillor Ken Johnston
Councillor Alexa Loo
Councillor Bill McNulty
Councillor Linda McPhail
Councillor Harold Steves

Call to Order:

The Chair called the meeting to order at 4:00 p.m.

MINUTES

It was moved and seconded

That the minutes of the meeting of the General Purposes Committee held on July 4, 2017, be adopted as circulated.

CARRIED

FINANCE AND CORPORATE SERVICES DIVISION

1.

Award of Contracts through RFP to Radical I/O Technology Inc.
(File Ref. No. 04-1300-01/2017) (REDMS No. 543291 v. 4)

With the aid of a PowerPoint presentation (copy on file, City Clerk’s Office), Grant Fengstad, Director, Information Technology, provided background information and highlighted that the customer web portal and digital strategy integration will enhance customer service and extend the reach of City services into the digital space.

In reply to queries from Committee, Mr. Fengstad advised that (i) external customers are currently the focus of the City’s digital strategy, (ii) a privacy impact assessment has been conducted and the City will meet all provincial legislative requirements, and (iii) if directed by Council, staff could also examine integrating library services.

It was moved and seconded

(1)

That the contract for Digital Strategy Integration Services RFP 5951P be awarded to Radical I/O Technology Inc. in the amount of $670,000 based on the public Request for Proposal (RFP) process;

(2)

That the contract for Customer Web Portal Implementation RFP 5952P be awarded to Radical I/O Technology Inc. in the amount of $495,000 based on the public Request for Proposal (RFP) process;

(3)

That an amount of $100,000 be approved as contingency funding as part of the approved capital funding; and

(4)

That the Chief Administrative Officer and the General Manager, Finance and Corporate Services be authorized to negotiate and execute the consulting services contract with Radical I/O Technology Inc.

CARRIED

PLANNING AND DEVELOPMENT DIVISION

2.

Application by Onni Development (Imperial Landing) Corp. for a Zoning Text Amendment at 4020, 4080, 4100, 4180, 4280 and 4300 Bayview Street (formerly 4300 Bayview Street) to Amend the "Steveston Maritime Mixed Use (ZMU12)" Zone and the "Steveston Maritime (ZC21)" Zone
(File Ref. No. RZ 13-633927) (REDMS No. 5421598 v. 3)

Wayne Craig, Director, Development, accompanied by Sara Badyal, Planner II, presented the application by Onni Development (Imperial Landing) and the following information was noted:

§   

this application was last presented to Planning Committee in May 2014; at that time, the applicant was seeking a rezoning (i) to permit a wide-range of commercial, retail and service uses in the ground floor of all the buildings and second floor of Building 2 and (ii) to remove certain restrictions related to maritime activities;

§   

in 2014, the total area proposed to be rezoned to accommodate the new uses was approximately 59,500 square feet and the applicant proposed to provide the City with an amenity contribution consisting of (i) a $2 million cash contribution, (ii) three potential lease offers for the City to obtain space in the development, (iii) off-site transportation improvements, (iv) a comprehensive plan to manage commercial parking and loading activities, and (v) payment of the applicable DCCs for the change in land use;

§   

the 2014 application was referred back to staff for further refinement and the revised current proposal provides (i) a 32-room hotel complete with cooking facilities, (ii) a paired down list of potential commercial uses on the site that would allow Office, Restaurant and General retail in Buildings 1 to 4, Health services in Buildings 1, 2, and 4, Indoor recreation in Buildings 2 and 4, and Grocery store in Building 2;

§   

the revised proposal also only deals with the ground floors of the six buildings as the second floor of Building 2 was rezoned to permit a child care operation in July 2016;

§   

in comparison to the 2014 application, the revised current proposal reflects a reduction in the amount of commercial, retail, and service uses from 59,500 square feet to approximately 30,600 square feet;

§   

staff have focused on the proposed cash amenity contribution and both the City and the applicant retained independent economic consultants to determine an appropriate amenity contribution amount; the consultants could not reach a consensus on the valuation;

§   

the current site is already subdivided through an airspace parcel subdivision; this subdivision would enable each building to be sold separately; under the existing condition, the valuation of the site would be significantly higher than if the site were under a single ownership scenario;  the applicant indicated that they intend to retain ownership of the entire site so it was decided that a legal agreement would be registered, which would ensure that all airspace parcels would remain under a single ownership scenario;  however, the economic consultants could still not reach a consensus on the valuation;

§   

the City’s consultant determined the increase to be approximately $5.5 million and the applicant’s consultant determined the increase to be approximately $4.1 million;  both consultants agreed that the hotel use would not increase the value of the site given the high tenant improvement costs;

§   

the applicant is proposing a cash amenity contribution of $2.375 million to a Steveston Area account, which represents 50% of the mid-point between the two consultants’ valuations; and

§   

although the revised amenity contribution is an improvement on the previous offer, the City typically seeks a higher return than 50% of the increase in valuation.

Discussion took place and in reply to queries from Committee, Mr. Craig advised that (i) the current proposed application has not been subject of a public consultation process, however the applicant has engaged with the public in an unofficial capacity, (ii) a hotel is an acceptable use within the existing Steveston Area Plan, and (iii) a potential user for the proposed indoor recreation space has not been identified.

In response to a query regarding the proposed cash amenity contribution amount, Joe Erceg, General Manager, Planning and Development, stated that given that no direction was given to achieve a specific amount, staff cannot comment on the adequacy of the applicant’s proposed cash amenity contribution amount.

Discussion further ensued and in response to queries from Committee, Mr. Craig remarked that (i) a marina is beyond the scope of the application, (ii) the City owns the water lots adjacent to the proposed subject site, (iii) Council may utilize the proposed cash amenity contribution at its discretion, (iv) the current allowance for Maritime Mixed Uses will remain in place as the proposed application is seeking to add a range of commercial uses to this definition, and (v) previously, a business licence was refused by Council as the business owner was contending that a seafood restaurant fit within the scope of Maritime Mixed Use.

Also, Mr. Craig noted that the proposed commercial uses were chosen in an attempt by the applicant to respond to stakeholders’ wishes and to meet multiple other objectives.

In response to a query from the Chair, Mr. Craig stated that staff could engage with the public on the proposed current application if directed to do so by Council.

Discussion further ensued on the potential for a marine hotel and marina, similar to what is offered at Vancouver’s Granville Island.  Cathryn Volkering Carlile, General Manager, Community Services, advised that staff have reported to Council on the potential for a City marina at Imperial Landing and that such information can be re-circulated to Council for information.

Chris Evans, Executive Vice-President, Onni Development, commented on the history of the application before Committee and spoke on various efforts by Onni to address the concerns of the City and other stakeholders.  Mr. Evans stated that although the proposed amenity contribution amount appears to not have increased significantly since the 2014 offer, it has increased dramatically as the revised current proposal is seeking a reduced overall amount of retail area (30,600 square feet as oppose to 59,500 square feet).

Mr. Evans remarked that Onni has met with the Richmond Chamber of Commerce, the Steveston 20/20 group, the Steveston Merchants Association, and other stakeholders and that Onni feels that the proposed application has landed positively with all stakeholders.

In response to queries from Committee, Mr. Evans stated that (i) tenant improvements to Buildings 5 and 6 for the hotel are estimated at $100,000 per room for a total of 32 rooms, (ii) the operating model for the proposed hotel has not been explored in detail, however as with any business, a flexible model is ideal, (iii) Onni has met with the Steveston Community Association regarding its concerns on the potential use of the proposed indoor recreation space.

Discussion took place regarding the potential rezoning process timeline and the Chair remarked that the proposed application can be forwarded to a Public Hearing date of Council’s choice.

John Roston, 12262 Ewen Avenue, referenced the staff report with regard to the public input and remarked that 96 pieces of correspondence received from 120 Richmond residents / business owners indicate that 73 writers did not support the proposal; therefore, the public is not as in favour of the proposal as indicated by the applicant.  He added that many of the writers indicated their desire to see the subject site developed similar to what is offered at Granville Island and the proposal before Committee does not reflect that vision.  Mr. Roston distributed his remarks (attached to and forming part of these Minutes as Schedule 1).  He drew attention to anticipated lease rates for each building based on use, and was of the opinion that regardless of what is permitted in each building, the space will likely be occupied by the service that yields the highest lease.  Mr. Roston then commented on the proposed community amenity contribution amount and was of the opinion that Council should insist on 100% of the land lift value and not 50% as being offered by the applicant.

Jeff Jones, 12333 English Avenue, queried who was being consulted by the applicant as he has lived adjacent to the subject site since 2004 and has yet to be approached.  Mr. Jones remarked that the site has remained vacant for far too long and at this point, he would simply like to see something there to vitalize the area.

Rob Akimow, Chair, Richmond Chamber of Commerce, remarked that the Chamber is pleased to see some movement with regard to the proposed application and wishes to see a timely resolution.  In reply to a query from Committee, Mr. Akimow stated that any types of business would be welcome on the subject site as the market will address any concerns on what is most needed.

It was moved and seconded

(1)

That Official Community Plan Amendment Bylaw 9062, to amend the land use definition of "Maritime Mixed Use" by adding a range of commercial uses in Appendix 1 (Definitions) to Schedule 2.4 of Official Community Plan Bylaw 7100 (Steveston Area Plan), be introduced and given first reading;

(2)

That Bylaw 9062, having been considered in conjunction with:

(a)

the City’s Financial Plan and Capital Program; and

(b)

the Greater Vancouver Regional District Solid Waste and Liquid Waste Management Plans;

is hereby found to be consistent with said program and plans, in accordance with Section 477(3)(a) of the Local Government Act;

(3)

That Bylaw 9062, having been considered in accordance with OCP Bylaw Preparation Consultation Policy 5043, is hereby found not to require further consultation;

(4)

That Richmond Zoning Bylaw 8500, Amendment Bylaw 9063, to:

(a)

amend the "Steveston Maritime Mixed Use (ZMU12)" zone by widening the range of permitted commercial uses at 4020, 4180, 4280 and 4300 Bayview Street; and

(b)

amend the "Steveston Maritime (ZC21)" zone by widening the range of permitted commercial uses at 4080 and 4100 Bayview Street;

be introduced and given first reading;

(5)

That the Application by Onni Development (Imperial Landing) Corp. for a Zoning Text Amendment at 4020, 4080, 4100, 4180, 4280 and 4300 Bayview Street (formerly 4300 Bayview Street) to Amend the "Steveston Maritime Mixed Use (ZMU12)" Zone and the "Steveston Maritime (ZC21)" Zone be considered at the October 16, 2017 Public Hearing;

(6)

That staff be directed to consult with affected stakeholders, including the Steveston 20/20 group, the Steveston Merchants Association, and the Steveston Community Association;

(7)

That staff be directed to provide previous materials regarding the potential for a City marina at Imperial Landing;

(8)

That the amenity contribution for the Application by Onni Development (Imperial Landing) Corp. be dedicated to the eventual improvement of the Steveston Community Centre; and

(9)

That staff continue to discuss the amount of the community amenity contribution with the applicant.

The question on the motion was not called as discussion ensued and Committee expressed concern regarding the applicant’s proposed community amenity contribution amount and it was noted that the amount should better reflect 100% of the land lift value.  Also, Committee wished to see neighbours of the subject site engaged as they will be the ones most directly impacted by the proposal.

Discussion further ensued and the following referral motion was introduced:

It was moved and seconded

That the Application by Onni Development (Imperial Landing) Corp. for a Zoning Text Amendment at 4020, 4080, 4100, 4180, 4280 and 4300 Bayview Street (formerly 4300 Bayview Street) to Amend the "Steveston Maritime Mixed Use (ZMU12)" Zone and the "Steveston Maritime (ZC21)" Zone be referred back to staff to examine a marine-based hotel, services for boaters, and options for a marina.

DEFEATED
Opposed:  Mayor Brodie
Cllrs. Au
Dang
Johnston
Loo
McPhail
McNulty

The question on the main motion was then called and it was CARRIED with Cllrs. Day and Steves opposed.

ADJOURNMENT

It was moved and seconded

That the meeting adjourn (5:48 p.m.).

CARRIED

Certified a true and correct copy of the Minutes of the meeting of the General Purposes Committee of the Council of the City of Richmond held on Monday, July 17, 2017.

_________________________________

_________________________________

Mayor Malcolm D. Brodie
Chair

Hanieh Berg
Legislative Services Coordinator