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HomeMy WebLinkAboutPD-73-96UNFINISHED BUSINESS DN: INVAR.GPA THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: General Purpose and Administration Committee File # '� � � _oI Date: Tuesday, May 21, 1996 Res. # I- � � '�_q ( . Report #: PD -73 -96 File #: OPA 95 -014/D By -law # Subject: PROPOSED AMENDMENT TO THE DURHAM REGIONAL OFFICIAL PLAN APPLICANT: INVAR INDUSTRIAL LIMITED PART LOTS 19 & 20, B. F. CONC., TOWN OF WHITBY FILE: OPA 95 -014/D Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PD -73 -96 be received; 2. THAT Report PD -73 -96 be approved as the comments of the Municipality of Clarington on the proposed Official Plan Amendment submitted by Invar Industrial Limited; 3. THAT a copy of this report be forwarded to the Town of Whitby and Region of Durham Planning Departments; and, 4. THAT the Region advise the Municipality of Clarington at such time that the Official Plan Amendment and rezoning is approved. 1. 1.1 1.2 1.3 APPLICATION DETAILS Applicant: Invar Industrial Limited Agent: Proposal: 1.4 Site Area Farano Green To permit a 120,000 sq. ft. warehouse format retail centre with a minimum tenant size of 5,000 sq. ft. with no less than 50% of tenants having a minimum size of 10,000 sq. ft. or larger. A maximum of 18 tenants would be permitted. 4.0 hectares (10.0 acres) ME W REPORT NO. PD -73 -96 PAGE 2 2. LOCATION 2.1 The subject lands located within the Town of Whitby consist of 4.0 hectares (10.0 acres) south of Highway 401 at the southeast corner of Thickson Road and Victoria Street East (see Attachment # 1). The proposed development is situated south of the Thickson Ridge Power Centre at Highway 401 and Thickson Road which presently contains such tenants as Home Depot and Sports Authority. The property is described as Part Lots 19 & 20, Broken Front Concession located in the Town of Whitby. 3. BACKGROUND 3.1 Invar Industrial Limited submitted an application to amend The Durham Regional Official Plan which would permit the development of a 120,000 sq. ft. addition to the Thickson Ridge Power Centre in Whitby. The applicant proposes a minimum tenant size of 5,000 sq. ft. with a minimum of 50% of tenants sized at 10,000 sq. ft. or larger (see Attachment #2). This would permit a maximum of 18 tenants within the development. Given the regional market implications of the proposal, the Municipality was circulated by the Durham Region Planning Department to provide comments. Supporting documentation includes a retail market study and impact evaluation submitted by Malone Given Parsons Limited and an economic and fiscal impact analysis prepared by IBI Group. 3.2 The original application for the Thickson Ridge Power Centre was submitted in 1992. The initial proposal contemplated a Price Club warehouse and a Aikenhead's Home Improvements Warehouse totalling 242,000 sq. ft. on a 8.95 hectare (22.1 acre) site. Staff initially raised the following concerns in Report PD- 42 -93: ....3 1211 REPORT NO. PD -73 -96 PAGE 3 The market analysis submitted to support the application underestimated the primary trade area, specifically the impact on the Courtice Urban Area; and Additional policies relating to retail warehouses and power centres should be incorporated into the Durham Region Official Plan. An assessment of their impacts on Central Areas should also be undertaken. 3.3 Upon approval of the development by the Town of Whitby and Durham Region Councils, the application was appealed to the Ontario Municipal Board. Once the appeals were withdrawn, the Board approved the proposal. 3.4 Aikenhead's was purchased by the Home Depot chain which developed the warehouse as approved by the Board. With the merger between Price Club and Costco and the development of a Costco location in Ajax, Price Club was no longer interested in the site. Due to these changing market conditions, the application for the Price Club lands was revised from a 116,000 sq. ft. single use warehouse to a multi- tenant 250,300 sq. ft. retail power centre containing retail warehouse uses in addition to the banks, offices, and restaurants permitted in the Employment Areas. As a result, the total site development would total 376,000 sq. ft. The following Staff concerns as summarized were outlined in Report PD- 101 -94: • The applicant had not adequately addressed the market impact of development on existing commercial development within Clarington; • The proposal could have a negative impact on the timing, scale of development, and the planned function of the Courtice Main Central Area and the Courtice Sub - Central Area; • The Region should undertake a comprehensive review of power centres to ensure that these uses do not undermine the commercial structure in the Regional Plan; and ....4 1212 REPORT NO. PD -73 -96 PAGE 4 • The additional floorspace contemplated for the site may necessitate a floorspace transfer from another Central Area. The application was approved by the Town of Whitby and Durham Region Councils in 1995 to permit the second phase of development which recently opened. The Thickson Ridge Power Centre now comprises of: • Home Depot (135,000 sq. ft.) • Nine other Retail Warehouses (approximately 230,000 sq. ft.) • Banks and Restaurants 4. OFFICIAL PLAN POLICIES 4.1 The Durham Regional Official Plan designates the subject lands as "Employment Area" which permits manufacturing, assembly and processing, services industries, warehousing, limited personal service uses, hotels and transportation facilities. However, earlier amendments to the Plan incorporated an exception under Section 20.11.5 to permit retail warehouses on the north east quadrant of Victoria Street East and Thickson Road. Each retail warehouse must exceed 21,500 sq. ft. and the major retail warehouse must exceed 129,000 sq. ft. The proposed development does not conform with the Employment Area policies and the applicant seeks a further exception to the policies of the Durham Region Official Plan. 5. RETAIL MARKET STUDY 5.1 A retail market and impact evaluation was prepared by Malone Given Parsons Limited in support of the application. The consultant has proposed a 120,000 sq. ft. special purpose commercial centre with a maximum of 114,000 sq. ft. devoted to retail uses. The remaining 6,000 sq. ft. would be used for personal service space or other types of commercial space. The proposed minimum tenant size is 5,000 sq. ft. with a minimum of 50% of tenants sized at 10,000 sq. ft. or larger. This would permit a maximum of 18 tenants within the development. ....5 1213 REPORT NO. PD -73 -96 PAGE 5 5.2 The following reasons are provided for requesting a decreased tenant size: The Thickson Ridge Power Centre has absorbed a number of retail warehouse tenants over 21,500 sq. ft., leaving few potential tenants within this size category; • There is a market opportunity within Southern Ontario to attract available tenants within the 5,000 to 20,000 sq. ft. range which may not benefit from traditional downtown locations; • These tenants would benefit from the regional market draw attracted to the Thickson Ridge Power Centre; and • The rectangular configuration of the subject lands imposes site constraints in terms of building size and location of parking facilities. 5.3 The market study prepared by Malone Given Parsons Limited examined the impact of the proposal on the Town of Whitby's retail structure. It is clear that this area will develop as a powerful retail node. The study indicates that this development will co -exist with existing and planned commercial development within Whitby as well as other municipalities because the market area of power centres is regional in nature. It is argues that their role and function differs from retailers which locate in traditional central areas. For this reason, the study recommends that department stores, supermarkets and conventional drugstores be excluded from this location. Although there may be some negative impacts, the study suggests these to be minor in nature and /or short -term as Durham Region is considered a growth area, both in terms of population and retail expenditures. 5.4 A license plate survey was prepared by Malone Given Parsons Limited to examine the origin of patrons for the Home Depot at the Thickson Ridge Power Centre. Data obtained from this survey indicates that 12.25% of expenditures at the Home Depot comes from the Municipality of Clarington. ....6 REVISED 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 REPORT NO. PD -73 -96 PAGE 7 may come from Clarington. This suggests that the amount of retail outflow from Clarington to Whitby is quite significant. The timing of future commercial development at the Bowmanville and Courtice Main Central Areas, which are respectively designated for 2,152,000 sq. ft. and 430,000 sq. ft. in the Durham Region Official Plan, could be delayed by the loss of these expenditures; and • The report examined the Whitby Central Business District commercial inventory by business size and concluded that the majority of businesses were well below 5,000 sq. ft. This analysis shows that few existing tenants would potentially relocate from Whitby's Central Area locations to the proposed development. This form of analysis should have been conducted for the other lakeshore municipalities in Durham Region to examine the number of tenants likely to relocate to the proposed development. 6.3 Staff have the following concerns about cumulative impacts generated by future retail development at this location: • The original Invar application was approved for 242,000 sq. ft. and subsequently revised to 376,000 sq. ft.; • The Town of Whitby has designated all four quadrants of the Highway 401 /Thickson Road intersection as "Special Activity Node B" (currently Deferred by the Region). This area is expected to accommodate approximately 600,000 sq. ft. of commercial floorspace comprised of retail warehouses and special purpose commercial uses such as nurseries, home improvement centres and hotels. The subject lands are not within this land use designation and would therefore increase the amount of commercial floorspace envisioned for the area beyond the present allocation; and lu 1216 REPORT NO. PD -73 -96 PAGE 8 The approval of retail uses on the subject lands establishes a precedent for further development on lands not designated for retail uses. Discussions with Regional Staff indicate that the Town of Whitby has received an application on a 10 acre site adjacent to the east of the subject lands. This developer is requesting a 120,000 sq. ft. retail warehouse and an industrial use for the manufacturing of clothing with 40% ancillary retail uses. This application in conjunction with the Invar proposal could potentially increase the floorspace from 600,000 sq. ft. to between 800,000 sq. ft. and 900,000 sq. ft. The retail strength of the area would rival that of many designated Central Areas. 6.4 The potential for additional lands being designated for retail warehouse uses within the area increases competition among developers to secure tenants. With a limited number of retail warehouse tenants available, the pressure to decrease the retail warehouse floorplate size below 5,000 sq. ft. will increase substantially. As a result, the pressure to accommodate traditional retail uses in the area instead of the intended retail warehouse uses may increase. 6.5 The Durham Region Official Plan does not permit retail warehouses and power centres in Employment Areas. The Durham Region Planning Department is considering an amendment to the Official Plan which provides policies on retail warehouses with respect to minimum size, retail market impact study requirements, and locational criteria. The amendment currently proposes a minimum floorspace size of 21,500 sq. ft. Staff maintain that policies on retail warehouses should be included in the Durham Region Official Plan prior to consideration of this application. 7. CONCLUSIONS 7.1 In summary, the following points are Clarington's concerns: M 1217 REPORT NO. PD -73 -96 PAGE 9 • the retail market study has not adequately documented the question of impact on the existing and future Clarington retail structure; • designating additional lands for retail warehouse uses has cumulative retail impacts on adjacent municipalities as the Thickson Ridge Power Centre diversifies and becomes a major retail centre. This also establishes a precedent for the redesignation of additional lands for such uses; • the proposal may have a negative impact on the timing and scale of development within the Bowmanville West and Courtice Main Central Areas due to the increase in scale and the diversification of tenants in the current application; and, • policies on retail warehouse and power centre uses should be included in the Durham Region Official Plan prior to consideration of this application. Respectfully submitted, Franklin Wu, M.C.I.P., R.P.P., Director of Planning and Development RH *FW *cc Reviewed by, 4�-- ki'k, W. H. Stockwell Chief Administrative Officer Attachment #1 - Key Map Attachment #2 - Invar Warehouse Format Retail Concept Plan Attachment #3 - Proposed Amendment to the Durham Region Official Plan May 14, 1996 Interested parties to be notified of Council and Committee's decision: Mr. Robert Short Town of Whitby Planning Department 575 Rossland Road East Whitby, Ontario UN 2M8 Mr. Alexander L. Georgieff Durham Region Planning Department 1615 Dundas Street East 4th. Floor, Lang Tower, West Building Whitby, Ontario UN 6A3 1218 ATTACHMENT #1 KEY MAP O,P.Q.95 -014/D 12 t,9 ATTACHMENT #2 INVAR WAREHOUSE FORMAT RETAIL COMMERCIAL CONCEPT PLAN Invar Warehouse Format Retail Commercial Concept Invar Site Prepared for: INVAR BUILDING CORPORATION Prepared by: MALONE GIVEN PARSONS LTD. Date: December 1995 1220, ATTACHMENT #3 Proposed Amendment to the Durham Regional offici.:-il Plan Purpose: The purpose of this Amendment to the Durham Regional Official Plan is to permit warehouse format retail uses on the southeast corner of Victoria Street and Thickson Road. Location: The subject site is located at the southeast corner of Victoria Street East and Thickson Road, being part of Lot 20, Broken Front Concession in the Town of Whitby. Basis: Amendment No. 8 to the Durham Regional Official Plan, approved by the Minister of Municipal Affairs on April 7, 1995 is further modified to include lands on the south side of Victoria Street. An application submitted by Invar Industrial Limited proposing smaller scale warehouse format retail uses on the south side on Victoira Street is considered complementary to the established retail uses on the north side of Victoria Street and would not undermine the planned function of existing and planned Central Areas within the Region. Actual The Durham Regional Official Plan is hereby amended by: Amendment: i) modifying Section 20.11.5 (modifications are highlighted in bold) in order to accommodate the proposal as follows: "20.11.5 Notwithstanding any other provisions of this Plan to the contrary, retail warehouse uses and ancillary uses may be permitted on approximately 12.5 hectares of land located at the northeast quadrant of Victoria Street East and Thickson Road and on approximately 4.1 hectares of land located at the southeast quadrant of Victoria"Street East and Thickson Road in the Town of Whitby, subject to the following provisions: i) retail warehouse uses with a minimum gross leasable area of 24000 sq.m. may be permitted on approximately 8.6 hectares of land located on the western portion of the northeast quadrant; 1 ? 2 11 ii) a retail warehouse use with a minimum gross leasable area of 12,000 sq.m. without food - related sales may be permitted on approximately 3.9 hectares of land located on the eastern portion of the northeast quadrant; iii) warehouse format retail uses with up to 50% of the gross leaseable area having a minimum store size of 464.5 sq.m., wiht the balance of the gross leaseable area having a minimum store size of 929 sq.m. and automotive service commercial may be permitted on approximately 4.1 ha. Of land located at the southeast quadrant; and iv) all development shall be subject to satisfactory arrangements having been made with the Region including road improvements at the Thickson RoadNictoria Street intersection and the site being zoned to a special commercial zoning category in the respective zoning by- law in accordance with the provisions of this Section. In addition, the total gross leaseable floor area in all buildings or structures on the site devoted to the sale of food shall not exceed, in the aggregate, 5,000 sq.m. In addition, food shall only be sold in a building or structure where the building or structure is occupied by a single user and the minimum gross leasable area of the building or structure is 7,500 sq.m. Implementation: The provisions set forth in the Durham Regional Official Plan, as amended, regarding the implementation of the Plarl 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. .