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HomeMy WebLinkAboutPD-72-96DN:RBTAMMA THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: General Purpose and Administration Committee File #' =("� Date: Tuesday, May 21, 1996 Res. (.Lo Report #: PD -72 -96 File #: OPA 95 -002 /D By -law # Subject: PROPOSED AMENDMENT TO THE DURHAM REGIONAL OFFICIAL PLAN TO PERMIT LARGE RETAIL WAREHOUSES IN EMPLOYMENTS AREAS FILE: OPA 95 -002 /D Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PD -72 -96 be received; 2. THAT Report PD -72 -96 be approved as the comments of the Municipality of Clarington on the proposed amendment to the Durham Regional Official Plan on Large Retail Uses in Employment Areas; and, 3. THAT a copy of this report be forwarde&to the Region of Durham Planning Department. 1. PURPOSE 1.1 The Durham Region Planning Department has proposed to amend the Durham Regional Official Plan to permit large retail warehouses in Employment Areas. The Region circulated the proposed Official Plan Amendment (Attachment #1) to all local municipalities for comment. A Public Meeting was held by Regional Planning Committee on April 16, 1996 to solicit public opinion on the proposed amendment. The purpose of this report is to provide comments on the proposed amendment. 2. BACKGROUND 2.1 This amendment was precipitated by the redesignation of Employment Area lands O•- • •� •. PAGE 2 for large retail warehouse uses at the southeast corner of Thickson Road and Highway 401 in Whitby which was approved in 1993. Due to various market concerns raised by municipalities to the amendment, Durham Region Planning Department has initiated this amendment which would permit large retail format warehouses in Employment Areas throughout Durham Region subject to selected criteria. W_\Zrl MAM_\ I INLY/_\."1 4 M Lei IM 3.1 The large retail warehouse format, which was pioneered in the United States, continues to gain further acceptance in Canada. With the current economic climate, consumers are remaining very price conscious and less sensitive to aesthetics. The combination of a comprehensive marketing strategy, high volume purchasing, delivery, and high merchandise turnover rates provide consumers with savings. This retail phenomenon appears firmly entrenched in the Canadian marketplace and will continue to expand geographically into high growth areas such as Durham Region. 3.2 Retail warehouses are locating in agglomerations, which because of their size and market impact are referred to a "power centres ". They may offer discount department stores, off -price stores, membership warehouse clubs or "category killers" which offer a tremendous range of merchandise in various categories at low prices. Floorplates for larger retail warehouses generally range in size between 50,000 sq.ft. (4,645 sq.m.) to over 100,000 sq.ft. (9,290 sq.m.) although many store types (eg. clothing, crafts, etc.) have floorplates between 15,000 sq. ft. (1,400 sq.m.) and 25,000 sq.ft. (2,320 sq.m.). Power centres range in size from 250,000 sq.ft. (23,225 sq.m.) to 600,000 sq.ft. (55,740 sq.m.) with primary trade areas which include several municipalities. .* •. .� PAGE 3 4.1 The proposed amendment to the official plan would permit retail warehouse uses in Employment Areas as designated in the Durham Region Official Plan. The amendment defines retail warehouses as 'large- scale, single - purpose facilities, having a minimum gross leasable area of approximately 21,500 sq.ft. (2,000 sq. m.) serving a regional trade area, and storing and displaying products in a warehouse format ". This definition would also include power centres which includes a number of retail warehouses in a shopping centre format as opposed to a large single user. 4.2 The amendment proposes to permit retail warehouses or power centres in appropriate locations as designated by local municipal Councils in area municipal official plans subject to the following criteria; • sites should be designated adjacent to either a Type A or Type B arterial road and in proximity to a Provincial freeway interchange. A traffic study is required to identify impacts on the Regional road system and associated mitigative measures. The cost of any required road improvements will be the responsibility of the applicant; • a retail market study is required which demonstrates that the proposed floorspace will not unduly impact any designated Central Areas; • the proposal should be compatible with surrounding uses; • the lands should be placed in an appropriate commercial zone in accordance with this amendment; and, • the proposal is subject to any other matters deemed necessary by local municipal Councils. :L61 - • S. STAFF COMMENTS 5.1 Retail warehouses are permitted on private services. Initially, the Region indicated that retail warehouse uses should proceed on full municipal services. A lack of full municipal servicing in the Courtice Employment Area places Clarington at a disadvantage compared with other lakefront municipalities. As a result, the Municipality of Clarington recommended to the Region that these uses be allowed to proceed on private services, subject to the completion of hydrogeological and site servicing studies. The Region has indicated that Section 5.3.20 of the Regional Plan provides some flexibility to consider such uses as limited infilling or minor expansion to existing development on private services subject to the satisfaction of the Region. In essence, retail warehouses would have to comply with the same requirements as a dry industry. 5.2 The locational criteria should allow retail warehouses on Type C arterial roads in some instances. The amendment requires that these uses be located adjacent to Type A and Type B arterials and in proximity to Provincial freeway interchanges. Although these locational criteria are generally supported, Staff believe that these uses should also be permitted adjacent to Type C arterials, provided that a traffic study determines the location as appropriate. Any necessary road improvements would remain the responsibility of the applicant. Accordingly, it is recommended that proposed Section 11.3.18(a) be modified by inserting the word "generally" before the word "adjacent ". 5.3 Any retail market impact analysis should be prepared with input from area municipalities. The Municipality of Clarington supports the requirement for a retail market REPORT NO.: PD -72 -96 REVISED PAGE 5 impact study which demonstrates that the proposed retail warehouse will not unduly impact any designated Central Areas. The regional nature of these developments leads to cross - jurisdictional impacts on existing and future Central Areas. However, the experience to date with the retail warehouse proposals in Whitby have not been particularly helpful in addressing the issues of concern to Clarington (ie. what impact will there be on the Courtice Main Central Area ?) In this regard, the policy should be clarified that affected municipalities should have input into the terms of reference and analytical approach to be used in undertaking the retail impact assessment. Accordingly, it is recommended that proposed Section 11.3.8 (b) be modified as follows: "(b) a retail market study, prepared in consultation with the area municipalities in the potential trade area, is required;" 6. CONCLUSIONS 6.1 The Municipality of Clarington does not oppose the principle of retail warehouses within Employment Areas. The Municipality opts for a cautious approach subject to the following policies being incorporated into the amendment: ® These uses should be permitted to develop in Employment Areas on private services subject to the completion of appropriate hydrogeological and servicing studies; ® A market impact study should be examined but the process for establishing terms of reference and the analytical approach to be used in undertaking the retail impact assessment should be open to input from adjacent municipalities; and, REPORT • PD-72-96 REVISED PAGE 6 Retail warehouses should also be permitted adjacent to Type C arterials where deemed appropriate through a traffic study. Respectfully submitted, r'" t. Franklin Wu, M.C.I.P., R.P.P. Director of Planning and Development RH *FW *df 4 June 1996 Reviewed by, W.H. Stockwell Chief Administrative Officer Attachment #1 - Proposed Amendment for Large Retail Warehouses in Employment Areas ATTACHMENT #1 Proposed Amendment to the Durham Regional Official Plan Purpose: The purpose of this amendment to the Durham Regional Official Plan is to permit the development of retail warehouses in the Employment Areas. Basis: It has been determined that the introduction of retail warehouse uses in locations in proximity to freeway interchanges would provide for a broader range of employment - generating activities within the Employment Areas without unduly impacting the planned function of existing and designated Central Areas. The amendment will allow area municipalities, after due consideration and subject to specific criteria, to designate areas suitable for accommodating retail warehouses. Actual The Durham Regional Official Plan is hereby amended by: Amendment: i) adding the words "retail warehouses," between the words "materials," and "freight" in Section 11.3.1; adding new policies after 11.3.16 as follows: "11.3.17 Retail warehouses shall be defined as large- scale, single - purpose facilities, having a minimum gross leasable area of approximately 2,000 square metres, serving a regional trade area, and storing and displaying products in a warehouse format. 11.3.18 Councils of the area municipalities may, in the area municipal official plans, designate locations in the Employment Area for retail warehouse uses. These locations shall: a) be adjacent to either a Type A or a Type B arterial road and in proximity to a Provincial freeway interchange. In addition, a traffic impact study shall be prepared to identify impacts on the Regional road system and to recommend mitigating measures. The cost of any required improvements to the Regional road system will be the responsibility of the applicant; b) be the subject of a study which demonstrates that the proposed floorspaco will not unduly affect the viability of any designated Central Area on Map "A "; C) be compatible with surrounding land uses; d) be zoned in an appropriate commercial category in the respective zoning by -law in accordance with the provisions of this section; and e) be subject to any other matters deemed necessary by Councils of the area municipalities." Implementation: The provisions set forth in the Durham Regional Official Plan, as amended, regarding the implementation of the Plan shall apply in regard to this Amendment. Interpretation: The provisions set forth in the Durham Regional Official Plan, as amended, regarding the interpretation of the Plan shall apply in regard to this Amendment. 5 REPORT NO. PD -73 -96 PAGE 6 5.5 The market study utilizes assumptions on the origin of market shares for the proposal. Under the two scenarios, the source of sales from both Whitby and Oshawa would range between 25 to 33.3 %, "Other Durham" municipalities would represent between 21.2% to 25% and inflow would account for 11.1 % to 25 %. These market shares are used in conjunction with total potential market expenditures to determine the amount of retail expenditures required from each market area to support this development. Clarington has been included with Ajax and Pickering into the "Other Durham" category. Based on these two market share scenarios, retail expenditures supporting the proposal from the "Other Durham" municipalities will total between $4.8 to $6.0 million for 1997. When both the proposal and the Thickson Ridge Power Centre are combined, retail expenditures from "Other Durham" municipalities are expected to account for between $16.9 to $18.7 million for 1997. 6 STAFF COMMENTS 6.1 The application is essentially seeking to permit a Special Purpose Commercial Area within an Employment Area. Unlike the previous Invar applications, which permits only larger retail warehouses (greater than 21,500 sq. ft.), this application targets the tenants traditionally locating in Special Purpose Commercial Areas (5,000 to 20,000 sq. ft.) 6.2 Although the market study discusses potential expenditure impacts'on Clarington, it concludes that these impacts will be minor in nature. Staff feel that potential impacts have not been adequately documented for the following reasons: ® The market study provides no breakdown between the "Other Durham" municipalities. Based on the license plate survey conducted for Home Depot, staff estimate that as much as 50% of "Other Durham" expenditures ...7