HomeMy WebLinkAboutPD-32-95Subject: PROPOSAL TO AMEND THE DURHAM REGIONAL OFFICIAL PLAN TO
PERMIT LARGE RETAIL WAREHOUSE USES IN EMPLOYMENT AREAS
FILE: OPA 95 -001 /D
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report PD -32 -95 be received;
2. THAT Report PD -32 -95 be approved as the comments of the
Municipality of Clarington on the proposed amendment to the
Durham Regional Official Plan on Large Retail Warehouse Uses
in Employment Areas; and,
3. THAT a copy of this report be forwarded to the Region of
Durham Planning Department.
1. PURPOSE
1.1 The Durham Region Planning Department has proposed an
amendment to the Durham Region Official Plan which would
permit large retail warehouse uses in Employment Areas. In
its circulation of the proposed amendment, the Region has
asked that comments be provided by the municipalities by
March 24, 1995. The purpose of this report is to provide
comments on the proposed amendment to the Durham Region
Official Plan.
2. BACKGROUND
2.1 An application to redesignate Emplo,
develop large retail warehouse uses
of Thickson Road and Highway 401 in
approved by Durham Regional Council
result of the structural and market
�ment Area lands and
at the southeast corner
the Town of Whitby was
on April 28, 1993. As a
concerns raised by local
REPORT NO.: PD -32 -95
PAGE 2
municipalities through the circulation of the amendment,
Durham Region Planning Department has initiated this
amendment which would permit large retail warehouse uses in
Employment Areas throughout Durham Region subject to certain
criteria.
3. LARGE RETAIL WAREHOUSE FORMAT
3.1 The large retail warehouse or "big -box" format has been
pioneered in the United States and continues to alter the
Canadian retail environment. In the current economic
environment, consumers are increasingly becoming price
sensitive and less conscious about service and aesthetics.
By combining a comprehensive marketing strategy with high
volume purchasing, delivery, inventory and sales activities
to achieve extremely fast stock turnover and high sales
volumes, these retailers are able to provide consumers with
price savings. Retail floorplates for these warehouses tend
to range in size between 50,000 sq.ft. to over 100,000
sq.ft.
3.2 Agglomerations of retail warehouses are generally referred
to as "power centres" because of their size and regional
market impact. They may offer discount department stores,
off -price stores, membership warehouse clubs or " category
killers" which offer tremendous selection of merchandise in
a particular category at low prices. These developments may
consist of several anchors with a limited number of
specialty retail tenants. These centres range in size from
250,000 sq.ft. to 600,000 sq.ft. with primary trade areas
extending between 8 to 16 kilometres from the development.
3.3 The shift towards large retail warehouses and power centres
represents an "evolution" of the retail industry. Retailers
are reducing costs which are reflected through lower prices
to consumers. Although this type of retailing is an
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PAGE 3
REPORT NO ®: PD ®32 ®95
American phenomenon, it is now firmly entrenched in the
marketplace in Canada and will continue to expand both
geographically and into high growth areas. This phenomenon
appears to be inevitable. In this regard, one can appreciate
the intent of the Region to initiate such an amendment to
provide certain criteria to guide and control this type of
development.
4. PROPOSED AMENDMENT TO THE DURHAM REGIONAL OFFICIAL PLAN
4.1 The proposed official plan amendment would permit retail
warehouses in Employment Areas as designated in the Durham
Regional Official Plan. The amendment defines retail
warehouses "as a group of large scale, non - traditional
retail facilities with regional drawing power that display
and store products in a warehouse format ". This definition
could also include "power centres" which incorporate a
series of retail warehouses in a shopping centre format as
opposed to a large single user.
4.2 It is proposed that retail warehouses or power centres may
be designated in appropriate location by Councils of area
municipalities in the area municipal official plans subject
to the following criteria:
• developments must be accessible to either Type "A" or
Type "B" arterial roads and in proximity to Provincial
freeway interchanges;
• a retail impact dstud muhaveeannadversenimpactsoneanyat
the floor p
Central Areas;
• the development must be compatible with surrounding
land uses; and,
• Councils may identify other matters as deemed
necessary.
514
REPORT f PD-32-95 PAGE ..
S. COMMENTS
5.1 The proposed amendment could undermine the structure
established in the Durham Regional Official Plan.
The Durham Regional Official Plan did not originally
contemplate the development of large retail warehouses and
power centres. The structure of the Regional Plan is based
on Central Areas which function as activity focal points
within a particular area. Main Central Areas represent the
principle retail focal points of the Region. The retail and
personal service floorspace areas were allocated according
to scale of importance.
Developing large retail warehouses or power centres in the
magnitude of between 250,000 sq.ft. to 600,000 sq.ft. within
Employment Areas could negatively impact the planned
function of existing and planned Main and Sub - Central Areas.
Moreover, this could render the concept of regional level
Central Areas in Bowmanville and North Oshawa unachievable.
Although Bowmanville has been allocated 2.2 million sq.ft.
of retail floorspace under the Durham Regional Official
Plan, the implications are that this may not be achievable
if power centres are permitted in Employment Areas.
There is an inherent danger that by allowing area
municipalities to designate a "regional" level facility
without an amendment to the Durham Regional Official Plan,
the planned regional structure can be compromised.
5.2 Retail market impact studies should determine market impact
on Region -wide basis.
The Municipality of Clarington supports the requirement of a
retail market impact study demonstrating that a retail
warehouse or power centre proposal will not negatively
impact existing and proposed retail development. However,
the regional market nature of these developments must
require a study examining retail impact on a Region-wide
basis. Each area municipality should have some meaningful
measure of assessing the impact of a proposed retail
warehouse on their commercial structure. Accordingly, the
amendment should provide for a process which allows area
municipalities to have input into the terms of reference and
analytical approach to be used in undertaking the retail
impact assessment.
5.3 The issue of servicing requirements needs to be clarified.
The proposed amendment would permit municipalities to
designate large retail warehouses and power centres within
Employment Areas. The amendment does not specify whether
these developments must proceed on the basis of full
services. However, the accompanying Regional Staff report
indicates that sites shall only be designated within fully
serviced Employment Areas.
The Municipality of Clarington recommends to the Region that
full services not be imposed as a criterion. A lack of
available services in the Courtice Employment Area places
the Municipality of Clarington at a competitive disadvantage
with the other lakefront municipalities where their
Employment Areas are mostly serviced. Until full services
are extended to the Courtice Employment Area, the prop
amendment should permit these uses to develop on private
services subject to the completion of hydrogeological and
site servicing studies.
5.4 Many of the benefits associated with large retail warehouses
and power centres will accrue to the western municipalities.
By permitting retail warehouses and power centres in
Employment Areas, the westerly Municipalities of Ajax,
576
REPORT NO.: PD °32 °95 PAGE 6
Pickering, Whitby and Oshawa will have a distinct advantage
to attract these uses due to proximity to Metro and a larger
population base. Without some meaningful controls on the
amount of floor space that could be built in any one
municipality, Clarington will remain vulnerable to outflow
of expenditure dollars to those retail warehouses and power
centres to be built in neighbouring municipalities.
The Municipality of Clarington recommends to the Region that
permissable retail floorspace allocations for retail
warehouses and power centres for each area municipality's
Employment Areas based on population projections be included
in the amendment.
5.5 The locational criteria appear to be sufficient.
The locational criteria require that the Employment Area
sites be accessible to either Type A or Type B arterial
roads and in proximity to Provincial freeway interchanges.
We support this general locational criteria. In Clarington,
those lands designated Employment Areas adjacent to Highway
401 appear to have certain fits. If and when the Region's
amendment is approved, Staff will bring forth an amendment
to the local Official Plan to identify the locations for
retail warehouses and power centres.
5.6 Retail warehouses and power centres should be encouraged
within Central Areas where possible.
Although the proposed amendment permits retail warehouses
and power centres in Employment Areas, the policies should
still encourage them to locate within Central Areas. This
would reaffirm the prominence of Central Areas.
The Costco retail outlet in Ajax and the Canadian Tire in
Bowmanville are examples within Durham Region where large
retail warehouses are located within Main Central Areas.
REPORT NO.: PD-32-95 PAGE .7
The City of Oshawa is currently reviewing a proposal by !PCP
Properties Ltd. for a 200,000 sq.ft. food warehouse south of
the Oshawa Shopping Centre. In light of the proposed
policies, there appears to be some attraction for these
retailers in Central Areas. This helps to create a level
playing field between new and traditional forms of retail
uses and allows the eventual retrofit of buildings should
this retail form be succeeded.
6. CONCLUSIONS
6.1 Retail warehouses establishing in Employment Areas will
impact the commercial structure of the Region and may even
undermine it if there is not a cautious approach to
permitting these land uses. In consideration of the
comments contained in this Report, the Municipality of
Clarington does not oppose the principle of permitting
retail warehouse /power centres within Employment Areas,
subject to the following modifications being incorporated
into the amendment.
• Retail floorspace for retail warehouse uses should be
allocated to each municipality proportionately based on
future population;
• Retail market study criteria within this proposed
amendment should specify the required information to
identify the impact on neighbouring municipalities and
to allow for participation of adjoining municipalities
in establishing the terms of reference for retail
impact studies;
• The proposed amendment should permit these retail
warehouse uses to develop in Employment Areas on
private services subject to the completion of
hydrogeological and site servicing studies; and,
• Retail warehouses and power centres should be
encouraged to locate within Central Areas where
possible.
REPORT NO.: PD-32-95 PAGE 8
Respectfully submitted,
d �'Jw
Franklin Wu, M.C.I.P.
Director of Planning
and Development
RH *FW *km
Recommended for presentation
to the Committee
W. H. Stockwell
Chief Administrative
Officer
Attachment #1 - Durham Region Planning Department Report No. 95-
P-2
579
ATTACHMENT #1
SUBJECT
Proposal to Amend the Durham Regional Official Plan to Permit the Development
of Large Retail Warehouse Uses, File: 4.16.7
RECOMMENDATIONS
1. THAT Planning Committee authorize staff to advertise in the appropriate
newspapers, that Planning Committee and Regional Council will be considering an
amendment to the Durham Regional Official Plan to include new policies that
would permit large retail warehouse uses in the Employment Areas; and
2. THAT Commissioner's Report No. 95 -P -2 be forwarded to the area municipalities
for comment.
REPORT
1. Purpose
1.1 The purpose of this Report is to address new format retailing, and propose new
policies that would permit large retail warehouse uses in the Employment Areas.
2. Background
2.1 On April 28, 1993, Regional Council considered Commissioner's Report No. 93 -P-
37, and approved the redesignation of land located at the northeast corner of
Victoria Street East and Thickson Road for two large retail warehouse uses in the
Town of Whitby. It was indicated to Committee at that time, that opportunities
for identifying and designating other locations for retail warehousing within the
Highway No. 401 interchange areas, would be examined in the future and that is
the purpose of this report. In addition, it was indicated to Committee that the
issue of residual commercial floorspace, the additional floorspace outside of
designated Main and Sub - Central Areas, would also be examined. Commissioner's
'580
Commissioner's Report No. 95 -P -2 Page 2
Report No. 94 -P -5 pertaining to floorspace allocations outside of Main and Sub -
Central Areas was tabled by Planning Committee and subsequently withdrawn by
staff on February 8, 1994. Retail warehousing is not included within the residual
floorspace allocations. Staff will be reporting to Committee on the residual
floorspace issue in the near future.
2.2 Several area municipalities are undertaking comprehensive reviews of their Official
Plan. Area municipal planning documents have recognized some of the emerging
trends in the retail sector by proposing new land use policies that would
accommodate large retail warehouses (refer to Attachment No. 1).
2.3 At the request of the Ontario Municipal Board, the retail warehouses concept was
also examined for the Bowmanville West Main Central Area in the Municipality of
Clarington.
3. New Format Retailing
3.1 The average consumer has become extremely sensitive to price and more willing
f
to compromise on service, convenience and aesthetics in order to save money.
The result is a retail sector seeking ways of reducing operating costs to offer the
consumer cheaper prices. This is evidenced by the rapid growth of new format
retail stores such as warehouse clubs, power centres, home improvement centres,
and outlet malls in Ontario, both in urban and rural areas. For clarification, power
centres are considered an agglomeration of retail warehouses, often located in
contiguous or at least adjacent buildings, and sometimes sharing parking and road
access. Two examples of power centres in the Greater Toronto Area are:
Crossroads Business Centre (Weston Road/Highway 401, North York) - this
400,000 sq.ft. centre, adjacent to a 200,000 sq.ft. Knob Hill Farms Food
Terminal, includes such tenants as Toys R Us, Lewiscraft (super store format),
The Brick, Bi -Way, Mark's Work Warehouse, Consumer's Distributing,.
Fabricland, Future Shop, Canadian Tire and OE Direct;
Oakville Town Centre I and II (Dorval Road/Queen Elizabeth Way) - this
centre, which is actually two centres on either side of Dorval, is comprised of
some 460,000 sq. ft. Major retailers include Winners, Valdi's National Sports,
Michaels, Pennington's Warehouse, Multitech Warehouse, HMV, and Business
581
Commissioner's Report No. 95 -P -2
Page 3
Depot on the one side, and Toys R Us, A &P, BiWay, Moore's The Suit People,
Famous Player's Theatre, and Consumer's Distributing on the other side.
3.2 The key difference of new format retailing from traditional retail uses is the
format. This new format is expressed in product mix, the volume of goods
offered, price, display and the packaging of these goods. Other important
characteristics of new format retailing include: large floor areas, in -store
warehouse component, large volume of goods, lower retail prices, high stock
turnover rates and larger trade areas. The trade areas associated with these
individual format stores and power centres tend to cross local and regional
municipal boundaries.
3.3 In the Greater Toronto Area there is a trend for these large retail format stores to
locate in industrial areas and other non - traditional commercial locations; due to
cheaper land costs, rent, availability of large sites, adequate parking, good
visibility and access from freeway interchanges. The strong market pressure for
large warehouse stores and power centre developments is expected to continue as
consumers are drawn to value - oriented retailers.
3.4 The prediction that new format retailing would undermine the planned function of
existing commercial areas prompted the Province of Ontario, through the
Provincial Facilitator's Office, to address "big box" retailing and its impact on the
municipal planning system. A report released in June, 1994 entitled "New Format
Retailing and the Public Interest" concluded that:
• warehouse retailing will continue to expand in Ontario, in the form of free-
standing stores and power centre agglomerations. It is becoming part of the
retail fabric in new growth/greenfield areas and in slow growth/no growth
mature areas;
• the retail hierarchy guidelines being followed by many municipalities appear to
have served the planning process reasonably well and should be adapted to
accommodate and manage new retailing formats; .
• these large- scale, new format retail facilities have regional and inter- regional
impacts and need regional markets to survive;
r 582
VMS
Commissioner's Report No. 95 -P -2 Page 4
while new retail formats are very popular with value conscious consumers and
serve to fulfill specific shopping needs, they augment the traditional retail
establishments which are convenient for frequent trips; and
the new format retailers are forcing more traditional retailers to re- assess their
approach to their consumers and to create new marketing techniques to respond
and maintain their shares of the market.
3.5 Other municipalities in the Greater Toronto Area have amended their respective
official plans to accommodate new format retailing (refer to Attachment No. 2).
4. Comments
4.1 The Employment Area policies of the Durham Regional Official Plan recognize
and protect industries and/or locations as an important component of the Region's
economic base. As well, professional office, commercial, institutional and
community uses are allowed, provided that such uses are compatible with the
predominant industrial nature of such areas. Through the review of a recent
amendment application, Invar Industrial Limited (OPA 92 -002), it has been
determined that large retail warehouse uses are appropriate in certain locations in
Employment Areas. Such uses are destination rather than community- oriented.
There is a need to accommodate large retail warehouses in strategic locations that
draw from a regional population. This will allow the Region to effectively
compete on an equal footing, and attract its share of larger format stores to serve
the regional market. These retail activities can provide increased employment
opportunities and improve the Region's competitive position.
4.2 Since new format retail warehouse uses draw consumers from a large trade area, it
is appropriate to concentrate these uses at locations adjacent to major arterial roads
in proximity to Highway No. 401 interchanges. This allows for orderly and
efficient movement of traffic to /from the sites with minimal disturbance to the
surrounding community, maximizing exposure and accessibility. These uses
should not be located in the interior of the Employment Areas in order to avoid
disrupting normal industrial operations. In terms of building appearance, retail
warehouses tend to be constructed as typical warehouse buildings. There is always
the potential to reuse the buildings for industrial or other uses. The possibility for
new format retailing is limited in traditional downtowns, due to the predominance
of smaller lot and building sizes. However, some opportunities may exist in other
583
Commissioner's Report No. 95 -P -2 Page 5
Central Areas for the integration of large retail formats.
4.3 Central Areas are focal points of activity, interest and identity within the Urban
Areas. The traditional Central Area functions, where shopping is combined with
housing, employment, recreation, social, and cultural activities, will not be
undermined by the introduction of specialized retail warehousing within the
Employment Areas. Retail warehousing at key locations will add a broader range
of uses in the Employment Areas that are compatible with the employment focus;
can service existing businesses; attract new businesses; and fill vacant space.
Furthermore, the use of Employment Area lands for retail warehouse uses would
not significantly reduce the amount of vacant land currently available for other
economic activities.
4.4 In conclusion, the development of large retail warehouses in the Region is an
objective which should be pursued in order to provide employment opportunities
and capture changing consumer expenditure patterns that may not be currently
satisfied within the Region. The introduction of retail warehousing should be
considered on the basis of maintaining the viability of Employment Areas and
complementing rather than competing with Central Areas. Upon reviewing this
issue, an amendment to the Durham Regional Official Plan is proposed which
would enable area municipalities to redesignate a portion of their fully - serviced
industrial areas to permit retail warehouse uses, provided the following criteria is
addressed:
- locations must be adjacent to either Type A arterial roads or Type B arterial
roads in proximity to Provincial freeway interchanges;
- a retail impact study must be prepared to ensure that the development of retail
warehouse uses do not unduly affect the viability of any designated and
approved Central Areas; and
- must be compatible with surrounding land uses.
Attachment No. 3 contains an amendment to implement the above requirements.
4.5 Preliminary meetings and discussions with area municipal staff have taken place
with respect to the above matters. The circulation of the proposed amendment will
facilitate further discussion.
j } 4 -81
Commissioner's Report No. 95 -P -2 Page 6 C
4.6 Upon completion of the circulation of the Amendment to the area municipalities,
and a review of comments received from the public, an Amendment will be
presented to Planning Committee.
GM
Attachments: No. 1 - Area Municipal Documents
No. 2 - Other Municipal Documents
No. 3 - Proposed Amendment to the Durham Regional Official
Plan
J85
Attachment No. 1
Area Municipal Documents
Municipality of Clarington
The draft Official plan permits retail superstores, warehouse outlets and
membership clubs in designated Highway Commercial Areas, subject to the
submission of a retail impact study.
City of Oshawa
The Economic Development policies and new concepts in retailing such as new
format retailing are being reviewed as part of the City's 5 -year. Official Plan
review.
Town of Whitby
The newly - adopted Official plan for the Town designates the lands at the
immediate intersection of Thickson Road/Highway No. 401 as "Special Activity B"
allowing the opportunity for retail warehouse uses in addition to the already
permitted prestige industrial uses.
Town of Ajax
Amendment No. 33 to the Ajax District Plan proposes to add a new Planning
Community A8 which would permit retail warehouse uses on a tract of land
bounded by Highway No. 2, Audley Road, Carruthers Creek and the lands fronting
onto the north side of Magill Drive.
Town of Pickering
The "Backgrounder No. 2 - Addressing the Issues" report, part of the Pickering
District Plan review accommodates new and emerging retail trends that require a
Regional market, such as large, free - standing retail warehouses within Special
Purpose Areas.
5 R6
im
Attachment No. 2
Other Municipal Documents
Town of Markham
Amendments to the Town's Official Plan include designating "Retail Warehouse
Areas" in both the Town's primary Official Plan and Secondary Plans, pre - zoning
sites for retail warehouse uses, and where sites/areas are not pre -zoned but
designated, provide criteria for reviewing rezoning applications through the
Secondary Plans. Criteria for evaluating applications would include reviewing
land use compatibility, traffic and cumulative impact of this form of development
on the viability of the Town's established commercial areas. Urban design
guidelines are also being prepared as part of the Town's evaluation criteria,
primarily to be implemented through site plan control.
City of Toronto
A number of new policies and refinements to existing policies that propose to
regulate retail warehouse uses in the City. These recommendations include
introducing a retail warehouse definition in the Part 1 Official Plan, establishing an
8,000 sq.m. floorspace limitation for retail warehouse uses, as well as prohibiting
retail warehouse uses in seven areas of the city. The Part 1 Plan does not propose
to designate areas/sites for these uses but rather relies on the Part 2 Secondary
plans to designate and implement such uses.
City of North York
Amendments to the Official Plan include deleting the current retail warehouse
definition and instead including a definition within the Zoning by -law. The
Official Plan will now, subject to Ministry of Municipal Affairs approval, include
Policies to permit retail warehouse uses on lands designated Mixed- Industrial or on
land which flank arterial roads, include policies for implementing holding
provisions for uses over 3,000 sq.m., subject to the completion of a traffic study,
and for uses over 9,000 sq.m. both a traffic impact study and market analysis
study be provided.
587 1-1-
Attachment No. 3
Proposed Amendment To The Durham Regional Official Plan
Purpose: The purpose of this amendment to the Durham Regionat.Official Plan
is to permit the development of large retail warehouses in the Region's
Employment Areas.
Basis: It was determined that the introduction of large retail warehouse uses
in locations in proximity to the Highway No. 401 interchanges would
provide for a broader range of employment generating activities within
the Employment Areas without impacting the viability of existing and
designated Central Areas.
The Amendment will allow the area municipalities, after due
consideration and in a restricted fashion, to designate suitable areas for
accommodating large format stores.
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;
ii) adding new sections after 11.3.16 as follows:
" 11.3.17 Retail warehouses shall be defined as a group of
large scale, non - traditional retail facilities with
regional drawing power that display and store
products in a warehouse format.
11.3.18 Councils of the area municipalities may, in the area
municipal official plans, permit retail warehouse
facilities provided these uses are designated in
appropriate locations and'meet the following
requirements:
� Q 8
a) be accessible to either Type A arterial roads or
Type B arterial roads and in proximity to
Provincial freeway interchanges;
b) require that a retail impact study be undertaken
to ensure that the floorspace does not--have an
adverse impact on any designated Central Area
on Map . "A";
c) be compatible to surrounding land uses; and
d) such 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.
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