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Home My WebLink AboutPD-101-94Subject: OFFICIAL PLAN AMENDMENT 1. THAT Report PD- 101 -94 be received; 2. THAT the Town of Whitby and Region of Durham be advised that the Municipality of Clarington considers the proposed Official Plan Amendment submitted by Invar Industrial Limited to be premature subject to consideration of the concerns raised in this report; 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. APPLICATION DETAILS 1.1 Applicant: 1.2 Agent: Invar Industrial Limited Sal Crimi 1.3 Proposed Use: A 23,255 m2 (250,300 facility containing uses in addition to restaurants and otho currently permitted Area designation. J ft. 2) retail retail warehouse the banks, offices, �r similar type uses the in Employment REPORT NO.: PD- 101 -94 PAGE 2 1.4 Official Plan: To amend the Region of Durham and Town of Whitby Official Plans to permit the proposed uses. 1.5 Zoning By -Law: To amend the Town of Whitby Zoning By- Law from the present "Prestige Industrial (Ml -A)" zone to permit the proposed uses. 1.6 Site Area: 8.67 hectares (21.42 acres) 2. LOCATION 2.1 The subject lands located within the Town of Whitby consist of 8.67 hectares (21.42 acres) fronting on Victoria Street East at the southeast corner of Thickson Road and Highway 401 (Attachment #1). In legal terms, the property is described as Part Lots 19 & 20, Broken Front Concession in the Town of Whitby. 3. BACKGROUND 3.1 On June 8, 1994, the Municipality of Clarington was circulated by the Durham Region Planning Department with an application from Invar Industrial Ltd. Given the regional market implications of the proposal, the Municipality was circulated for comment. 3.2 The Municipality was previously circulated an application by Invar Industrial Ltd. to permit the development of a 10,776 m2 (116,000 ft2) Price Club Warehouse and a 11,705 m2 (126,000 ft2) Aikenhead's Home Improvement Warehouse on an 8.96 hectare (22.1 acre) site. The concerns that were raised in the previous Report PD -42- 93 are summarized as follows: J�J REPORT NO.: PD -10 -94 PAGE 3 • The market analysis submitted to support the application underestimated the primary trade area and the subsequent impact of the development on the Municipality, particularly on Courtice; and, • Additional policies and land use designations for power centres /warehouse facilities should be incorporated into the 1991 Durham Region Official Plan. In addition, an assessment of their impact on Central Areas should also be undertaken. 3.3 The application was approved by the Town of Whitby and Durham Region Councils but subsequently appealed to the Ontario Municipal Board. However, the appeals were withdrawn after a pre- hearing and the amendments received Board approval on January 25, 1994. The Board approved an 11,705 m2 (126,000 ft2) Aikenhead's Home Improvement Warehouse east of the subject lands and a 10,776 m2 (116,000 ft2) Price Club warehouse with a maximum retail food component not exceeding 5,000 m2 (53,800 ft2). The Home Depot chain has purchased Aikenhead's but will continue to retail the same type of merchandise carried by Aikenhead's. With the Price Club merger with Costco and the development of a Costco location in Ajax, Price Club is no longer interested in this location. 3.4 The present application encompasses the former Price Club, site and additional lands to the west totalling 8.67 ha (21.42 ac). The subject application does not include the 3.69 ha (9.12 ac) site on which the Home Depot is to be constructed. The amount of commercial floorspace on the total holdings is J/6 REPORT NO.: PD- 101 -94 PAGE 4 proposed to increase from 22,481 m2 (242,000 ft2) as approved by the Board to 34,930 m2 (376,000 ft2). 4. OFFICIAL PLAN POLICIES The 1991 Durham Region Official Plan designates the subject lands as "Employment Area" which permits manufacturing, assembly and processing, service industries, research and development, warehousing, business parks, limited personal service uses, hotels, storage facilities and transportation facilities. However, Amendment #283 to the 1976 Durham Region Official Plan permits a 10,776 m2 (116,000 ft2) retail warehouse (former Price Club) with a maximum retail food component not exceeding 5,000 m2 (53,800 ft2) on the eastern portion of the subject lands. As the proposed retail development on the western portion of the subject lands does not conform with the Employment Area policies, an amendment to the 1991 Durham Regional Official Plan is required. The applicant is also seeking to amend the relevant policies in the Town of Whitby Official Plan. 5. RETAIL CONCEPT DESCRIPTION 5.1 The retail warehouse or "big -box" concept was developed in the United States and appears to be altering the retailing environment in Ontario. Often referred to as "Power Centres" because of their size, their markets tend to be regional in nature. These "no- frills" outlets generally offer certain categories of merchandise to price - conscious consumers. The price savings are achieved by keeping merchandising to a minimum (warehouse style operation), dealing primarily in cash or with a narrow group of credit (club membership retailing), reducing operating costs and emphasizing fast turnover with low profit margins on REPORT individual items. Given the recent purchase by Walmart of the Woolco chain and the increased interest shown by other American warehouse retailers in Ontario, this concept is expected to cover a wider range of merchandise including clothing, sporting goods and electronics. 5.2 These individual retail warehouses tend to be characterized by large floorplates ranging in size from 50,000 ft2 to over 100,000 ft2. As power centres can range anywhere between 250,000 ft2 to 600,000 ft2, industrial locations featuring large land parcels are preferable. Usually located along major highways, industrial areas also offer excellent visibility and accessibility as well as reduced construction costs and taxes. 5.3 A retail market analysis was prepared in support of the application by Malone Given Parsons Ltd. which outlined three development scenarios for the site. Scenario #1: This scenario would permit the development of the previously approved warehouse facility (former Price Club) of 10,776 m2 (116, 000 ft2) as well as 12,449 m2 (134,000 ft2) of commercial uses for a total of 23,225 m2 (250,000 ft2). The tenant mix is presently unknown. Scenario #2: This scenario would permit the development of Special Purpose Commercial uses totalling 23,225 m2 (250,000 ft2) . Although the tenant mix is unknown, the market study has indicated that 85% of the floorspace would be utilized for "Department Store Type Merchandise" (DSTM). Scenario #3: This scenario would permit the development of 23,225 m2 (250,000 ft2) of floorspace with 5,000 m2 (53,800 ft2) being developed for a food store as previously REPORT NO.: PD- 101 -94 PAGE 6 approved. The remaining 18,225 m2 (196,200 ft2) of floorspace would be developed for other retail uses, 85% of which would be DSTM. 6. COMMENTS 6.1 The market study prepared by Malone Given Parsons Ltd. discussed the impacts of the development on the retail structure in the Town of Whitby. The study draws on examples across Ontario where similar power centres have been developed. Based upon the report, it is clear that this development will become a "Power Centre ". The study argues that this development will coexist with existing and planned commercial development because power centres are destination - oriented drawing clientele from across Durham Region. Their role and function, it is argued, is therefore different than traditional commercial areas. Although there may be some negative impacts, the proponent's consultant considers that these will generally be limited in nature and /or short -term. The market study indicates that the power centre's role and market draw are determined by the tenant mix. As the tenant mixes are not provided, any assessment of the proposal's impact on the future commercial development both in Courtice and Bowmanville becomes difficult. 6.2 The market study provides assumptions on origin of sales and market shares for the proposal. Under the various scenarios, the source of sales from Whitby would range between 33 % -40 %, Oshawa would represent between 33 % -34% of the sales while inflow would account between 25 % -34% of sales. No analysis to determine the origin of this inflow is provided. However, it can be assumed that a significant REPORT NO.: PD-101-94 PA99 U proportion of the inflow will originate from the Courtice and Bowmanville urban areas as these are within 10 -20 minutes of the development according to the report. With a potential retail size of 34,930 mz (376,000 ft2) , this development could impact the timing of future commercial development in Courtice Main Central Area where the 1991 Durham Region Official Plan has designated a total of 40,000 m2 or 430,000 ft2. 6.3 The 1991 Durham Region Official Plan identified a commercial structure with four "regional level" centres as follows: • Pickering • Oshawa • Oshawa North • Bowmanville The Pickering and Oshawa Main Central Areas provide regional level functions at present. The North Oshawa Main Central Area does not exist while the Bowmanville Main Central Area provides only community level services. The Regional Plan did not contemplate power centres and did not review this phenomenon on a comprehensive basis. The Invar power centre proposal and other similar proposals in the Region may not only negatively impact the existing businesses, the planned function of more immediate Central Areas including the Courtice Main Central Area, but could render the Region's concept of the "regional level" Central Area in Bowmanville and North Oshawa unachievable. Moreover, the competition by local municipalities for "Power Centre" locations could create havoc with the approved commercial structure in the context of the 1991 Durham Regional Official Plan. REPORT NO.: PD- 101 -94 PAGE 8 6.4 The justification of commercial structure in the 1991 Durham Regional Official Plan was based on total floorspace per capita requirements for the ultimate population with the greatest share being allocated through the Durham Plan. The "residual" amounts were to be allocated through area municipal official plans in Community and Local Central Areas, Special Purpose Commercial Areas and convenience commercial areas. A portion of that residual floorspace was allocated in the original Price Club /Aikenheads proposal. The further expansion of 134,000 ft2 would either "use" a portion of the Town of Whitby's residual floorspace or result in a "transfer" from an existing allocation. This again demonstrates the need for a comprehensive review of this issue. 6.5 The Durham Region Planning Department should incorporate suitable policies and land use designations for power centres /warehouse retailers into the 1991 Durham Region Official Plan. This review should also examine the impact of these uses on the existing commercial hierarchy. A reallocation of floorspace from regional -scale centres and the Whitby Main Central Area may be required to accommodate the increased scale of the proposal. 6.6 The 1991 Durham Region Official Plan does not permit power centre /warehouse retail development in Employment Areas. There are no locational criteria, market impact study requirements or other policies to guide the review of such applications. Although the original development proposal was approved within the context of the 1976 Durham Region Official Plan, the site specific approval approach for additional lands designated for Employment Uses under the 1991 Durham Regional Official Plan clearly places other municipalities at a disadvantage. Without the 1991 Plan REPORT NO.: PD- 101 -94 PAGE 9 containing the necessary policies, the remaining municipalities cannot attract such development to their Employment Area lands. Should the Durham Region Planning Department, upon examination of the issue, deem commercial development to be appropriate within Employment Areas, necessary policies should be incorporated into the Durham Plan prior to approving this application. 7. SUMMARY Based on the preceding comments, consideration of the Invar official plan amendment application is premature. The following points are noted: • the proponent has not adequately addressed the question of market impact on existing Clarington businesses and approved developments; • the proposal may have a negative impact on the timing and scale of development and the planned function of the Courtice Main Central Area and Sub - Central Area due to the increase in scale and diversification of tenants in the current application; • there is a need for a comprehensive review of power centres in the Region. While this form of retailing may be inevitable, it was not contemplated in the preparation of the Durham Regional Official Plan. There is the potential to create havoc with the planned commercial structure identified in the Durham Plan. The establishment of one or a number of power centres may affect the ability for the Bowmanville Main Central Area to achieve its planned function as a regional level centre; and, REPORT NO.: PD- 101 -94 PAGE 10 ® the additional floorspace required for this proposal may require the "use" of a residual allocation in Whitby or a "transfer" from another Central Area. Respectfully submitted, A3- Franklin Wu, M.C.I.P. Director of Planning and Development RH *DC *FW *df Attachment #1 - Key Map Attachment #2 - Site Lands Attachment #3 - Concept Plan Recommended for presentation to the Committee Y William H. Stockwell Chief Administrative Officer Interested parties to be notified of Council and Committee's decision: Town of Whitby Planning Department 575 Rossland Road East Whitby, Ontario L1N 2MB Attn: Mr. R. Short Durham Region Planning Department 1615 Dundas Street East 4th Floor, Land Tower, West Building P.O. Box 623 Whitby, Ontario L1N 6A3 Attn: Mr. Alexander L. Georgieff P377J_19 �8 Lj cc INVAR SITE LANDS Highway 401 /Thickson Rd. -F- -1- Proposed Additional Site Lands -i- -}- Warehouse Membership Club Site rdv PEN SPACE OPEN SPACE f n 3 Prepared for: INVAR BUILDING CORPORATION e-F Prepared by: MALONE GIVEN PARSONS LTD. Date: APRIL 1994 U` INVAR SPECIAL PURPOSE COMMERCIAL CONCEPT PLAN Highway 401 /Thickson Rd. 1 ACE � p p I ?EN SPACE Prepared for: INVAR BUILDING CORPORATION Prepared by: MALONE GIVEN PARSONS LTD. Date: APRIL 1994 W