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ON: PO.123-99
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Date:
Monday, November 1,1999
File# P/t/-
Res. tKo/if-fir ~1
Meeting:
General Purpose and Administration Committee
Report #:
PD-123-99
FILE #: PLN 2.4.1.5
By-law #
Subject:
OFFICIAL PLAN AMENDMENT AND REZONING APPLICATIONS
APPLICANT: FIRST PROFESSIONAL MANAGEMENT INC.
CITY OF OSHA W A - NORTHEAST CORNER OF HARMONY ROAD
NORTH AND TAUNTON ROAD EAST
FILE NO.: PLN 2.4.1.5
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report PD-123-99 be received;
2. THAT the Region of Durham Planning Department and the City of Oshawa be advised
that the Municipality of Clarington objects to the proposed retail commercial
development proposal as submitted by First Professional Management Inc.; .
3. THAT the Region of Durham be requested to review this application as a matter of
regional significance and to require an amendment to the Durham Regional Official Plan
prior to consideration of any amendment to the Oshawa Official Plan;
4. THAT the City of Oshawa be requested to enter into a discussion to amend the Boundary
Road Agreement to reflect the requirements for growth in north-east Oshawa; and
5. THAT a copy of this report and Council's decision be forwarded to the City of Oshawa
Planning Department and the Region of Durham Planning Department. .
1. APPLICATION DETAILS
1.1
Applicant:
First Professional Management Inc.
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REPORT NO.: PD-123-99
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1.2 Oshawa Official Plan Amendment:
Part 1: Harmony Road and Conlin Road
From Planned Commercial Centre (Community Central Area) to
Local Central Area
Part 2: Harmony Road and Taunton Road
From Local Central Area and Residential to Planned Commercial
Centre (Community Central Area) and Special Purpose
Commercial
Part 3: Townline Road and Taunton Road
Lift Deferral and Modify from Special Purpose Commercial to
Planned Commercial Strip
1.3 Taunton Part II Plan Amendment:
Part 1: Harmony Road and Conlin Road
From Planned Commercial Centre - Community to Planned
Commercial Centre - Neighbourhood and Medium Density
Residential
Part 2: Harmony Road and Taunton Road
From Planned Commercial Centre Neighbourhood,
LowlMedium Density Residential, Public Elementary School, and
Neighbourhood Park to Planned Commercial Centre - Community
and Special Purpose Commercial
Part 3: Townline Road and Taunton Road
Lift Deferral and Modify from Special Purpose Commercial to
Planned Commercial Strip and Medium Density Residential
1.4 Rezoning:
Appropriate to permit the development of 578,950 if of retail,
personal service, and special purpose commercial floorspace
1.5
Site Area:
23.8 hectares (58.4 acres)
2. LOCATION
2.1 The amendments impact a number of sites in order to facilitate the First Professional
proposal. This new format development would be located at northwest comer of
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REPORT NO.: PD-123-99 PAGE 3
Harmony Road and Taunton Road in the City of Oshawa (see Attachment #1). The site is
rectangular in shape with a larger road frontage on Taunton Road. The applicant's land
holdings total 23.8 hectares (58.4 ac).
3. PROPOSED DEVELOPMENT
3.1 First Professional Development Inc. has developed new format commercial properties
throughout Ontario during the past number of years. They have tenant relationships with
WalMart, supermarkets (Loblaws and Fortino's), restaurants (Kelsey's, The Great
Canadian Bagel, Montana's Cookhouse & Saloon, Outback Steakhouse), Canadian Tire,
crafts and art supplies (Michael's), books (Chapters), LCBO, pet supplies (Super Pet),
Cineplex Odeon, and Mikasa. It is presumed that many of these chains will be
represented at this location. WaIMart, Home Depot and Cineplex Odeon will be primary
tenants at this site. The latest version of the proposed site plan is provided by Attachment
#4 of this report.
3.2 The City of Oshawa approved the following retail commercial mix:
RETAIL ORIGINAL APPROVED
CATEGORY PROPOSAL PROPOSAL
Supermarket 72,500 ft:l 55,000 ft:l
Jr. Department Store 128,000 fi2 155,950 ft:l
Home hnprovement Store 113,000 ft:l 123,000 ft:l
Other Retail and Personal 158,600 ft:l 166,500 ft2
Service Uses
Cinema 73,500 ft2 78,500 ft:l
Totals 545,500 fiT 578,950 ft:l
The approvals granted by the City would permit a maximum floorspace area of 83,250 jt2
to be used for smaller retail pads of 15,000 jt2 or less. This provision would
accommodate smaller "new format" retailers.
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3.3 Although the project is planned as one large big-box centre, the floorspace is divided over
two land use designations:
. 225,450 sq. ft. in the Planned Commercial Centre - Community
. 353,500 sq. ft. in the Special Purpose Commercial Area
The net effect of this "arrangement" is that although the proposal is for a significant
regional commercial centre, no amendment to the Regional Official Plan is required.
It should be noted that the City did not formally circulate this application to the
Municipality and staff had to request copies of materials and reports.
4. CURRENT PLANNING POLICIES
4.1 The subject lands are located within the Taunton Planning Area. The Taunton Part II
Plan provides detailed land uses for the area. The Durham Region Planning Department
approved this Plan as Amendment #36 to the Oshawa Official Plan on March 29, 1996.
4.2 The Taunton Part II Plan anticipates a planned population of approximately 20,000
persons within an area bounded by Conlin Road to the north, Townline Road to the east,
Taunton Road to the south, and Harmony Road to the west. A full range of commercial
facilities is planned to meet the retail needs of people within the area.
A "Planned Commercial Centre - Community" (pCC-C) or referred to as a Community
Central Area in the Durham Regional Official Plan, is designated at the southeast comer
of Harmony Road and Conlin Road. A community scale shopping centre with a
maximum retail floorspace of 200,000 if is planned at this location. The following
phasing policies are required for this commercial area:
. Phase I must include a major food store and ancillary retail and personal service
floorspace.
. Phase 2 must include a discount department store or mass general merchandise store
and ancillary retail and personal service floorspace.
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A "Planned Commercial Centre - Neighbourhood" (pCC-N) or referred to as a Local
Central Area in the Durham Regional Official Plan, is designated at the northeast comer
of Harmony Road and Taunton Road. A neighbourhood scale shopping centre with a
maximum retail floorspace of 80,000 if is planned at this location.
Lands located at the northwest comer of Townline Road and Taunton Road are
designated for Special Purpose Commercial (SPC) uses but have been deferred at
Clarington's request to address impact of uses on our retail commercial structure.
s. MECHANICS OF PROPOSED OFFICIAL PLAN AMENDMENT
5.1 The proposed official plan amendment and modifications would have the following
impact on the commercial structure of the Taunton Planning Area:
. The PCC-C designated at the southeast comer of Harmony Road and Conlin Road
would be moved just north of the comer of Harmony Road and Taunton Road (see
Attachment #2). The area would contain a 55,000 if supermarket, a 155,950 if
discount department store (WalMart), and 14,500 if of ancillary retail/personal
service floorspace (see Attachment #2).
. The PCC-N designated at the northeast comer of Harmony Road and Taunton Road
would be relocated to the southeast comer of Harmony Road and Conlin Road (see
Attachment #2).
. The deferred SPC designation would be relocated from the northwest comer of
Townline Road and Taunton Road to wrap around the PCC-C (see Attachment #3)
designation. An additional SPC area would have to be designated to accommodate all
of the proposed development. This area would accommodate a 123,000 if home
improvement store (Home Depot), a 78,500 if Cineplex Odeon theatre complex, and
152,000 if of retail/personal service commercial floorspace.
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6. COMMENTS
6.1 Retail Market and Opportunity Study
The Climans Group Inc. prepared a retail market and opportunity study in support of the
development proposal. Oshawa functions as the Primary Trade Area for the development
with Whitby, Scugog, and Clarington comprising the Secondary Trade Area. The
discussion below focuses on the maj or retail categories contained within the proposal.
i) RecapturinK Expenditure Outflows
The market study revealed two major areas of expenditure outflow from the
Oshawa retail area:
. Existing discount department stores in Oshawa capture 65.2% of Oshawa's
expenditures. The Whitby WalMart accounts for 29.5% of Os haw a's
expenditures at discount department stores. The study estimated that an
Oshawa WalMart could recapture the expenditure outflow and increase the
capture rate from 65.2% to 90.0%.
. Oshawa's existing home improvement stores only capture 14.4% of Os haw a
expenditures. Besides capturing 82.1 % of all Oshawa potential, the Home
Depot in Whitby captures 80.7% of the Secondary Trade Area expenditures.
The study estimates that Home Depot could increase capture rates of
Oshawa's expenditures from 14.4% to 60.0%.
The purpose of the development is to recapture major expenditure outflows to
Whitby.
ii) Excessive Reliance on the Secondary Trade Area
Telephone and license plate surveys were conducted to determine current
expenditures patterns of residents within the primary and secondary trade areas.
The following table shows existing and proposed expenditures patterns for the
major retail categories contained in the proposal.
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Retail Category Current Capture Rates Projected Capture Rates Additional
of Clarington of Clarington Clarington
Expenditures in Expenditures in Oshawa: Expenditure
Oshawa: 1998 2000-2006 Outflow up to:
($ millions) ($ millions) ($ millions)
Supennarket 22.6% 25.0% $ 10.9
. ($18.8) ($22.5 - $29.7)
Discount 27.1% 40.0% $ 8.9
Department Stores ($6.7) ($11.8 - $15.6)
Non-Department 31.6% 35.5% $ 23.2
Store DSTM ($37.3) ($45.6 - $60.5)
Home Improvement 12.3% 40.0% $ 6.8
Stores ($1.9) ($6.6 - $8.7)
For each category, the market study projected that the proposal would capture
additional Clarington retail expenditures. These increased levels of expenditure
outflows from the Municipality will delay the introduction of planned retail
commercial floorspace within Clarington. Courtice, in particular, will be affected
but it may negatively impact the Bowmanville Main Central Area.
iii) Impact on Clarinf{ton '$ Planned Commercial Structure
The impact analysis portion of the study did not address impact on Clarington's
existing and planned commercial structure for any retail categories. For example,
the report indicated that the Loblaws located in the Kingsway Village at Townline
Road and King Street East may suffer significant decreases in sales that may not
be regained until after 2006. No impact assessment was completed for the Price
Chopper across the street in Courtice.
The Study also did not address the impact on the ability of the planned
commercial centres in Clarington to achieve the role identified for them in the
Durham Regional Official Plan, in particular whether the Courtice Main Central
Area could achieve its planned target of 430,000 ft2. By comparison, the
proposed retail portion is 500,00 ft2, which exceeds the size (430,000 ft2) of the
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planned Courtice Main Central Area with the Durham Regional Official Plan.
iv) Study Approach
The study appears to be irregular in its approach to analyzing market support
between retail categories:
. The study assumes that WalMart will have a minimum market share of 35%,
which apportions the remaining 65% market share betWeen four Zellers
locations in Oshawa This approach was not taken for other retail categories.
. The study only determines supportable retail floorspace for certain retail
categories. Otherwise, market share transfers and/or increases in Secondary
Trade Area expenditure capture rates are assumed.
v) Study Conflict
The principal of the Climans Group Inc., Jeff Climans, prepared the Town's
Commercial Hierarchy Study in June 1993 through Arthur Andersen. A
telephone survey of consumer expenditure patterns indicated that a significant
amount of Clarington expenditures flowed to external retail destinations. A
premise of this study was to establish a planning policy framework to recapture
these expenditures. The same consultant is now recommending increased capture
rates of Clarington consumer expenditures. An independent examination of both
studies should be prepared.
6.2 Retail Opportunity Study
The City of Oshawa commissioned this study to examme expenditure patterns of
Oshawa, Whitby, and Clarington residents and Oshawa's retail commercial structure to
determine the potential for future retail expansion. The study drew the following
conclusions:
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. No warehouse membership club stores (ie. Costeo), large format home improvement
centres (ie. Home Depot), or non-department store type merchandise stores (ie. Future
Shop, Winners, Michael's) are located in Oshawa.
. There is no power centre that contains "big box" retail stores presently located in
Oshawa.
. None of the large scale movie theatre developments are represented.
As a result of this Study, the City took steps towards redesignating lands on the north side
of Highway 401, west of Stevenson Road for this purpose. This may be abandoned in
light of this proposal. The current application encompasses the majority of these retail
formats and categories listed above.
6.3 Expanded Special Purpose Commercial Designation
The Taunton Part II Plan had designated approximately 3.0 ha (7.5 ac) for Special
Purpose Commercial uses at the northwest comer of Townline Road and Taunton Road.
This area was deferred at the Clarington's request due to concerns regarding the impact of
large format retailers on Clarington's retail commercial structure. The City now proposes
to lift the deferral and shift this designation to Harmony Road and Taunton Road.
However, the proposed development requires an additional 9.3 ha (23.0 ac) of Special
Purpose Commercial area, 4.0 hectares (10.0 ac) of which would be used for the theatre.
Therefore, an additiona15.3 ha (13.0 ac) beyond what was rationalized through the Part II
planning exercise are required for retail development. Municipal staff have not been
approached on the lifting of this deferral.
6.4 Timing of Commercial Development
The Taunton Part II Plan envisioned that the PCC-C originally located at Harmony Road
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REPORT NO.: PD-123-99
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and Conlin Road was to be developed towards the latter stages of development within the
Taunton Planning Area, presumably once sufficient population was in place for market
support. Instead, the following will now occur:
. The proposal relies on market recapture of lost expenditures, market share transfers
from other locations, increased secondary trade area capture rates, and increased
inflow rates to compensate for the lack of surrounding market support within Oshawa.
. The introduction of additional commercial lands will reduce the number of housing
units by 412, which represents approximately 1,000 fewer persons within the market
area.
If the development proceeds in the near term, the Taunton Planning Area will be largely
unbuilt. Additional residential development can also be accommodated in other planning
areas such as Pinecrest and Samac. If this is indeed, in part, a Community Central Area,
there is no planning or market basis for it to proceed. The only basis is the recognition of
this site as having regional significance and regional market draw.
6.5 Transportation Issues
Based on the City of Oshawa report, it appears that the transportation study prepared in
support of the application did not address impacts of the development on sections of
Taunton Road within Clarington and Townline Road. Based on the assumption of
increased market shares generated from within Clarington, a development of this
magnitude, in conjunction with other development in north-east Oshawa, may cause a
number of traffic problems within Clarington. The following transportation issues should
be addressed.
. Timing and commitments to improve Townline Road to accommodate large volumes
of traffic from the CourticelEast Oshawa area.
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. Intersection improvements required at the intersection of Townline Road and Taunton
Road.
.
Increased traffic volumes will be experienced on Taunton Road as a result of this
development and other commercial development on Taunton Road. Traffic volumes
through Mitchell's Comers are negatively impacting the rural residential character of
the hamlet. It is now time to commence studies to provide for Taunton Road to be
realigned to bypass Mitchell's Comers.
. The Region should accelerate the Beatrice Avenue and Rossland Road extensions into
Clarington. This would alleviate some traffic pressures on Townline Road and
Taunton Road.
. The Boundary Road agreement between the City of Oshawa and the Municipality of
Clarington needs to be revised to reflect changing circumstances.
7. CONCLUSIONS
7.1 Based upon a review of the application, the Municipality of Clarington objeCts to the
proposal on the following basis.
. The planning studies for the Taunton Planning Area provided for a Community
Central Area for a time when the planned population was in place. The amendment
proposes a Community Central Area in advance of the population. As a result, the
proposal relies heavily on capturing market shares from the Secondary Trade Area,
rather than from population within the Primary Trade Area.
. The retail market study did not examine the impact of development on the adjacent
retail structure within Clarington yet it relies on increasing the capture of Clarington
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REPORT NO.: PD-123-99
(REVISED) PAGE 12
expenditures by up to $50 million annually. Impacts on the Secondary Trade Area
must be examined more thoroughly, especially in Courtice.
. The scale of the proposal impacts Clarington's planned commercial centres,
especially the Courtice Main Central Area. The impact may downgrade the role of a
Main Central Area in Courtice as identified in the Regional Official Plan and to delay
the achievement of the planned progress within the timeframe of the Clarington
Official Plan. Further detailed analysis of these issues need to be examined.
. The proposal establishes a new regional centre and should proceed by amendment to
the Durham Regional Official Plan.
. Transportation issues within the Municipality of Clarington need to be examined.
Major arterial roads serving the development will need to be upgraded.
Respectfully submitted,
Reviewed by,
Or'~~
Da d J. me, M.C.I.P., R.P.P.
Director of Planning & Development
Franklin Wu, M.C.I.P., R.P.P.
Chief Administrative Officer.
RH*DJC*df
26 October 1999
Attachment #1 - Key Map
Attachment #2 - Oshawa Official Plan Amendment Schedule
Attachment #3 - Oshawa Official Plan Amendment Schedule
Attachment #4 - Site Plan
Interested parties to be notified of Council and Committee's decision:
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REPORT NO.: PD-123-99
PAGE 13
Interested parties to be notified of Council and Conunittee's decision:
Mr. Ted Goodchild, Conunissioner
City {)f Oshawa Planning Department
50 Centre Street
OSHA W A, Ontario
LIH 3Z7
Mr. Alex Georgieff, Conunissioner
Region of Durham Planning Department
Lang Tower, West Bldg, 4'" Floor, Whitby Mall
1615 Dundas Street East
WHITBY, Ontario
UN 6A3
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Schedule "A"
Land Use Plan
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to Oshawa Official Plari Schedule "AI!
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~I.I.I~ SUIl-CE!lTRAl. M'EA BOUNIlAflY
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Modification _to
Amendment No. 36 to the
Oshawa Official Plan
Schedule "A"
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