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HomeMy WebLinkAboutPD-136-93 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON DN: HIER.GPA Meeting: General Purpose and Administration Committee File # Res. #C~~-SS(l- 13. # Date: Monday, October 4, 1993 #: I'D 136 ~nFile #: I'LN 32.4.7 TOWN OF NEWCASTLE COMMERCIAL HIERARCHY STUDY OVERVIEW FILE: PLN 32.4.7 It s respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PD-136-93 be received for information; and 2. THAT Arthur Andersen and Company be thanked for their efforts to complete this study and be advised of Council's decision. 1. On November 25, 1991, Municipal Council directed the Planning and Development Department to retain a consultant to prepare the Newcastle Commercial Hierarchy study as a background component of the Official Plan Review process. The purpose of the study was to determine realistic benchmarks of commercial floorspace and provide policy direction for future urban commercial development throughout the municipality during the next 20 year timeframe. 2. The final report has been received from Arthur Andersen and a cursory overview is offered below: . Based on anticipated population growth within Clarington, approximately between 1.72 to 2.24 million square feet of commercial floorspace could be supported during the next 20 year period. Much of this floorspace will be accommodated in Bowmanville to reinforce its importance. In addition, office space 558 RECYCLED PAPIER PAPER RECYClto. Tl-HS IS PRwn:D ON RECYCLED PAPER REPORT NO.: PD-136-93 PAGE 2 requirements have been proj ected to be approximately 405,500 square feet for the same period; . Policies must be developed to create a Main Central Area in Courtice. Activities including office, residential and institutional development, in conjunction with future population growth, would act as a catalyst to establish major retail facilities in downtown Courtice; . The viability of existing Main Central Areas must be maintained by carefully phasing commercial development according to community demand; . Special Purpose Commercial Areas should be limited to key intersections along Highway 401 and Highway 35/115; . Retail activities should be restricted to uses which directly serve industrial areas; and, . Retail impact studies should be required for new commercial proposals in excess of 25,000 square feet to protect existing development. 3. The findings of the Commercial Hierarchy Study will be taken into consideration in developing planning policies within the Official Plan Review exercise. 4. A copy of the study's executive summary has been attached to this report for committee's perusal. Copies of the entire document are available upon request from the Planning and Development Department. 559 REPORT NO.: PD-136-93 PAGE 3 Respectfully submitted, dr~~ ~ Franklin Wu, M.C.I.P. Director of Planning and Development RH*DC*FW*df Attachment No. 1 - Executive summary 24 september 1993 Interested parties to be notified of Council and Committee's decision: Arthur Andersen & Co. Toronto Dominion Centre 1900-79 Wellington Street West P.O. Box 29 Toronto, ontario. M5K 1B9 Att: Messrs. George Wasserstein and Ron Bidulka 560 Attachment No. 1 NEWCASTLE COMMERCIAL HIERARCHY STUDY Page iii EXECUTIVE SUMMARY Existing Retail Environment · Bowmanville is the largest and most developed retail area in the Town, offering the widest selection of goods and services at the largest number of locations. The Bowmanville retail market caters to Bowmanville residents and acts as an important retail destination for other Newcastle residents. · Courtice, while representing the second largest concentration of retail space in the Town, does not have a well developed retail market and loses a substantial proportion of expenditure potential to competing centres, particularly Oshawa. · Newcastle Village, Orono and Other Newcastle locations offer primarily convenience goods and services, catering almost exclusively to local residents' everyday needs. · Newcastle retail locations attract minimal retail expenditures from Oshawa residents. Future Retail Supply and Potential · Mirroring the dramatic increases in population growth expected over the next 20 years, the size of the retail market in Newcastle is anticipated to grow unprecedently over the medium term, increasing by a factor of 2.5 over the next 20 years if all development applications currently on file proceed. · 93 % of development applications are concentrated in Courtice and Bowmanville. · As the Town grows in size and its retail base matures, the Town is forecasted to be able to support 2.2 million square feet of retail space. Two-thirds of this space is expected to be concentrated in Bowmanville. ARTHUR ANDERSEN 50% recycled content 15% post consumer waste ARTHUR ANDERSEN & CQ SC 561 NEWCASTLE COMMERCIAL IDERARCHY STUDY Pageiv Supportable Retail Space in The Town of Newcastle BOWUANVIu.E FCTM Stores 94.140 142,925 - 144,682 181,000 - 185.322 221,130 - 229,238 263,099 - 276,462 DSTM Stores 109,890 370,201 - 404,814 471,030 - 556,486 5n,302 - 738,032 688,444 - 953,805 Other Retail 35,345 35,801 - 39,263 45,645 - 54,215 56,019 -72,167 66,869 - 93,563 Services 63.850 51.170 - 54.758 63.924 - 72.596 n.366 - 93.440 91.425 -117.681 Total, Bowmanville 303,225 600,097 - 643,518 761,599 - 868,618 931,817 - 1,132,8n 1,109,837 - 1,441,511 COURTlCE FCTM Stores 16,100 51,172 - 51,802 62,894 - 64,396 75,248 - 78,007 88,167 - 92,645 DSTM Stores 31,418 161,165 - 176,475 197,715 - 234,242 236,235 - 303,324 276,520 - 385,375 Other Retail nJa 16,175 - 17,700 19,n4 - 23,394 23,567 - 30,191 27,534 - 38,253 Services 31.390 30.915 - 33.191 38.605 - 44.154 46.710 - 57.057 55.186 - 72.165 Total, Courtice 78,908 259,428 - 279,167 318,989 - 366,186 381,760 - 468,581 447,407 - 588,438 NEWCASTLE V1UAGE FCTM Stores 8,900 20,532 - 20,782 25,976 - 26,597 31,720 - 32,883 37,724 - 39,640 DSTM Stores 13,030 36,183 - 39,439 44,227 - 51,936 52,710 -66,787 61,581 - 84,318 Other Retail 8,450 6,63? - 7,263 8,128 - 9,637 9,709 - 12,474 11,361 - 15,842 Services 17.210 10.828 - 11.660 13.853 - 15.948 17 .043 - 21.034 20.378 - 27.027 Total, Newcastle Village 47,590 74,173 -79,145 92,184 - 104,118 111,181 - 133,178 131,044 - 166,827 ORONO FCTM Stores 5,325 2,376 - 2,405 2,519 - 2,579 2,669 - 2,767 2,826 - 2,970 DSTM Stores 10,800 8,089 - 8,762 8,907 - 10,342 9,769 - 12,178 10,671 - 14,306 Other Retail 10,200 1,628 - 1,n4 1,695 - 1,991 1,766 - 2,242 1,840 - 2,530 Services 8.695 3.579 - 3.903 4.195 - 4.939 4.845 6.172 5.524 - 7.630 Total. Orono 35,020 15,672 - 16,845 17,316 - 19,851 19,049 - 23,359 20,861 - 27,436 OTHER NEWCASTLE FCTM Stores 14,621 1,711 - 1,732 1,767 - 1,809 1,826 - 1,893 1,888 - 1,984 DSTM Stores 25,404 3,657 - 3,948 3,902 - 4,511 4,160 - 5,164 4,429 - 5,920 Other Retail 15,465 1,272 - 1 ,425 1,568 - 1,935 1,880 - 2,556 2,207 - 3,306 Services 48.996 1 ,427 - 1.535 1.470 - 1.686 1.515 - 1.856 1.563 - 2.048 Total,OtherNewcasUe 104,486 8,067 - 8,641 8,707 - 9,941 9,382 - 11,469 10,088 - 13,258 NEWCASTLE Total FCTM Stores 139,086 218.716 - 221,404 274.157 - 280,703 332,592 - 344,788 393,704 - 413.701 Total DSTM Stores 190,542 579,294 - 633.438 725,780 - 857,517 88O,ln - 1,125.485 1,041.646 - 1.4-43.724 Total Other Retail 69,460 61,507 - 67,426 76,811 - 91,172 92,941 - 119.631 109.811 - 153.495 Total Services 170.141 97 .919 - 105.048 122.047 - 139.323 147.479 - 179.560 174.075 - 226.552 TOTAL. NEWCASTLE 569,229 957.437 - 1.027,315 1.198,795 - 1,368,715 1,453,169 - 1.769,464 1,719,236 - 2,237,472 . ExpenditUre dMded by IndustJy average dollars per square foot Note: T""1s may not add due to rounding. Source: Arthur Andersen & Co., 1992. 562 NEWCASTLE COl\1MERCIAL IllERARCHY STUDY Page v · Courtice is expected to increase dramatically in size, as it develops to become better able to compete locally within the Town and regionally with Oshawa. Retail Industry Trends · During the next 20 years, the retail industry will respond to the changing characteristics of the population and its expenditure habits, The industry will also evolve in new ways as it recovers from the current economic recession. In general, retailers will be facing a climate of slower market growth, changing consumer preferences and evolving retail formats. New forms and marketing techniques will emerge, for example: - "Category Killers" - Niche Marketing - Multi-format Tenants - Power Centres Implications for the Commercial Structure of the Town · Consumers will demand an increasing array of retail services within their community and across all levels of the hierarchy. · Retailers wi11lean toward differentiation in marketing and merchandising and will seek to better define and position their stores and projects as shopping "destinations": · larger stores require larger trade areas to sustain acceptable levels of sales productivity; larger trade areas may not be directly related to the size of the community in which it is located; and ARTHUR ANDERSEN 50% recycled content 15% post consumer waste ARTHUR ANDERSEN & Co sc 563 NEWCASTLE COMMERCIAL HIERARCHY STUDY Page vi · a wide range of goods and services will need to be available at all levels of the retail hierarchy as different types of stores diversify their retail mix to respond to local market opportunities. In the context of this study, therefore, the consultant has identified emerging trends, some of which cannot be readily accommodated within the traditional pattern of development. These trends, however, stress the need to maintain a balance between policies which support the continued development of the commercial hierarchy of the Town with policies that acknowledge .~d make provision for non-traditional future commercial growth. a. Maintaining the Viability of Existing Main Central Areas . The pace of retail development in each urban area should be closely tied to current market potential as evidenced by U111llet demand in the community. In particular, neighbourhood and regional retail centres should not be over-built to the extent that more than a two to three year supply of vacant space in small to medium commercial units are available in the market. Limitations on the potential supply of commercial retail unit space should maintain demand for existing retail space and redevelopment sites in and adjacent to the downtown areas. Downtown marketing and redevelopment plans should be implemented to ensure that opportunities for synergy between independent merchants in the downtown areas are pursued. In this regard, planning policies should contribute to the marketing efforts of Downtown Merchants Associations through physical improvement to the transportation infrastructure, parking, streetscape improvements and pedestrian accessibility through the downtown areas. . Policies should be enhanced to further preserve and enhance the downtowns of Bowmanville, Newcastle Village and Orono as the focal points of cultural, civic and community activity. 564 NEWCASTLE COMMERCIAL HIERARCHY STUDY Page vii b. Creation of a Downtown Area in Courtice · Development adjacent to the municipal boundary in the Sub-Central Area should proceed in the short-term to address interim opportunities to capture retail expenditures of Courtice and Oshawa residents residing in the immediate area. Focusing development within the Sub- Central Area will establish and reinforce Courtice as a destination location and lay the foundation for the establishment of a downtown in the Main Central Area. · In an effort to avoid further strip development along Highway 2, ensure that over the medium term (5-10 years) additional commercial development in Courtice is situated only within the vicinity of the Main Central Area. · The catalyst for a downtown area in Courtice should, however, be non-retail activities including office, residential and institutional development. Policies that support the introduction of these land use developments will in turn create a site specific market for ancillary retail services, These retail services may be developed in conjunction with or ancillary to the other forms of development. Over time, the combination of population growth within Courtice and the limitations on development opportunities between Oshawa and Bowmanville should create a sufficient level of demand to support further retail intensification in the designated downtown area. c. Special Purpose Commercial Areas · Special Purpose Commercial Areas should be designated in high visibility, high accessibility areas adjacent to Highway 401 and Highway 35/115. These areas should include lands situated at or near highway access points. Lands located at the interchanges of Highway 401 and Waverly Road in Bowmanville and Highway 401 and Courtice Road in Courtice should be considered priority areas for designation. This designation should generally be restricted from the Highway 2 corridor and from within urban areas where more suitable alternative designations exist for a majority of the currently permitted uses. Residential uses should be excluded in all cases. ARTHUR ANDERSEN 50% recycled content 15% post consumer waste ARTHUR ANDERSEN & Co sc 565 NEWCASTLE COMMERCIAL HIERARCHY STUDY Page viii · Permitted uses should be restricted somewhat from the current definition to include only: retail superstores warehouse outlets/ clubs automobile sales centres building supply dealers garden centres and nurseries other uses particularly catering to highway traffic (e.g" gas bars and restaurants) d. Retail and Office Uses in Industrial Areas . Industrial areas should be preserved for industrial uses and related commercial services only. Where the location and nature of adjacent uses serve to attract specialized operations, such levels should be redesignated from industrial to Special Purpose Commercial. . If not already contained in official Town policies, retail and personal service uses in industrial areas (for example, banks, restaurants, personal services and convenience commercial uses) should be restricted to uses which directly serve the industrial area. e. Establishment of Development Thresholds . The consultant has identified development thresholds, based on population targets approximating 5-year intervals, to guide future development in the Town. . These thresholds will: allow the development of a sustainable critical mass of retail space in. the West Main Central Area of Bowmanvi11e while serving the stated public interest in preserving a viable commercial district in the Downtown Area; 566 NEWCASTLE COMMERCIAL HIERARCHY STUDY Pageix enable the development of a sustainable critical mass in the Sub-Central Area of Courtice initially, to address interim opportunities to capture retail expenditures, respond to current development pressures and lay the foundation for the establishment of a downtown in the urban area. At subsequent thresholds the Main Central Area wi11 assume an increasingly important role in the developing hierarchy; and enable Newcastle Village to maintain and strengthen its role as the primary retail destination in the urban area. · Office space requirements have been projected to be approximately 405,500 square feet when the Town achieves a population of 110,500 persons. · Future retail growth in the Town based on these development thresholds will be in line with the letter and intent of the Durham Region Official Plan, particularly as it relates to total development potential. f. Retail Market and Impact Studies · Retail market and impact studies should conform with a specific set of guidelines to ensure that applications are evaluated on a consistent basis and with regard to the probable consequences of development on the structure of the commercial hierarchy. · Market studies evaluate the relationship between supply and demand generally as it relates to specific development applications. They also address the need for commercial development at a particular location, offering a particular range of merchandise and services. · In the future, impact studies should respond to and be required when proposed developments impact one or more of the following: 1. proposal does not f1fitfl within established retail thresholds (including both existing and already approved developments); ARTHUR ANDERSEN 50% recycled content 15% post consumer waste ARTHUR ANDERSEN & Co sc r-/7 ~)() . ~ - NEWCASTLE COMMERCIAL HIERARCHY STUDY Page x 2. project proposed to establish a new central area; 3. project proposed to expand an already established central area; 4. project's impact not assumed to be restricted to the immediate location; 5. project comprised of a single, dominant use or user. · In the future, impact studies should be required when proposed retail developments are of a sufficient size, for example greater than 25,000 square feet. Recommendations are made regarding the content of such studies and their review to ensure that there is a clear development rationale and an adequate understanding of the impact. · Where a proposed development is above a certain size, say 100,000 square feet, the Town should reserve the right to insist that an independent consultant undertake the market and impact assessment, with the municipality and development sponsor jointly choosing the consultant (and the developers paying all fees). · Where impacts are found to be too severe or where the means through which impacts will be mitigated are not felt to be adequate, the public interest will not be served through the project's development. Such projects should therefore be denied approval. Special Purpose Commercial Areas should be required to provide market demand and impact studies at the time of application. 5- 8 ,,6)