DEVELOPMENT SERVICES COMMITTEE

 

 

 

 

 

TO:

Mayor and Members of Council

 

 

 

 

FROM:

Jim Baird, Commissioner of Development Services

Valerie Shuttleworth, Director of Planning & Urban Design

 

 

 

 

PREPARED BY:

Elisabeth Silva Stewart, Senior Policy Planner

 

 

 

 

DATE OF MEETING:

2005-Apr-05

 

 

 

 

SUBJECT:

Neighbourhood Commercial Strategy for the New Urban Areas

 

 

 


 

 

RECOMMENDATION:

That the report dated April 5, 2005, entitled “Neighbourhood Commercial Strategy for the New Urban Areas”, be received;

 

That the Strategy described in the report be endorsed;

 

That Development Services Committee authorize staff to proceed with implementing the Neighbourhood Commercial Strategy as outlined in this report;

 

And that Development Services Commission staff, together with Finance staff, report back on the potential financial impact of deferring development charges and cash in lieu of parkland, or other financial incentives to support the implementation of the neighbourhood commercial sites identified in the proposed Strategy.

 

PURPOSE:

The purpose of this report is to describe the proposed Neighbourhood Commercial Strategy presented to the Commercial Policy Review Committee in the Fall of 2004.  The Commercial Policy Review Committee recommended that staff report directly to Development Services Committee for direction to proceed.

 

EXECUTIVE SUMMARY:

The Town’s Secondary Plan policies create numerous opportunities for new neighbourhood retail/service development within the new urban areas of the Town (OPA No.5 areas).  Neighbourhood commercial uses are permitted, to accommodate local neighbourhoods with a place to shop, function as community focal points, and enhance community structure.  However, to date there has been limited implementation by the development industry of the opportunities created by the Town for neighbourhood commercial centres. 

 

In December 2003, the Town commissioned a Commercial Policy Review.  The Review of Markham’s Commercial Policies (April 2004) was prepared by John Winter Associates Limited.  Among the findings and recommendations of the review was that a critical community building block such as the neighbourhood commercial centre should not rely on the serendipity of the market to respond to the commercial and mixed use policies of the Town’s Secondary Plans.  The study recommended that the Town identify in Secondary Plans key locations where a minimum number or gross floor space of neighbourhood retail/service developments should be provided, and to explore means to mandate such uses.

 

Staff reported the findings of the RMCP to Development Services Committee (DSC) on May 18th,, 2004.  The staff report and recommendations were referred to a Committee set up to review all the policy recommendations. The proposed Neighbourhood Commercial Strategy was presented and discussed at the Commercial Policy Review Sub-Committee on September 29, 2004 and the Committee endorsed the Strategy and recommended that staff report to the Development Services Committee to obtain direction to proceed with the Strategy.

 

Proposed Strategy

The strategy outlined in this report involves taking specific actions corresponding to the circumstances in individual planning areas.  These actions may include developing new policy or zoning, implementing current zoning or monitoring development already approved.

 

The Secondary Plan process for the new Highway 404 North Planning District, which is underway, will continue and a neighbourhood commercial area will be identified.  Future zoning will be required to implement the future secondary plan policies.

 

Secondary Plan amendments are required for Angus Glen and Greensborough to require a minimum gross floor area of neighbourhood retail/service uses within the Community Amenity Area identified in the Angus Glen Planning District and within the Village Square area of the Greensborough Planning District.  Zoning Amendments are also required in these two areas to implement the Secondary Plan amendment policy changes.  The minimum gross floor area and uses will vary by Secondary Plan area and will be identified by staff after consulting with land owners.  Staff will report back to Development Services Committee in separate reports which focus on each individual area/location.

 

It will be necessary to ensure that the policies related to the provision of retail uses in several Secondary Plans are implemented through zoning.  These include Cathedral, Berczy, and Cornell Secondary Plans. 

 

Furthermore, it is proposed to attempt to ensure that applications or proposals such as those in Wismer Commons, Rouge Northeast (Legacy) and Swan Lake Planning Districts, which are seeking the removal of neighbourhood retail/service uses in favour of strictly residential use, are addressed in a manner that will continue to make provision for neighbourhood retail/service opportunities.

 

It is recognized that many developers/builders are reluctant to commit to the provision of neighbourhood retail/service uses in the new urban areas.  This reluctance relates to the market demand for retail development only later in the build out of a community, when a significant number of residents are living in the immediate area.  Staff has begun to look at incentives to support and encourage the early provision of these neighbourhood retail services.  These possible incentives include: the use of the new NC3 Zone; requiring a built form which can accommodate mixed-use; reducing parking standards for neighbourhood retail/service uses; and prioritizing servicing allocation to mixed-use neighbourhood retail/service uses and, possibly, to those mainly residential developments which incorporate the construction neighbourhood retail/service uses.  Financial incentives to be reviewed include deferring Development Charges and cash-in-lieu of parkland payments or providing a flexible payment plan; and/or reducing the cash-in-lieu of parkland requirements.

 

BACKGROUND:

Need for community focal points to be developed in the new urban area

One of several commercial policy challenges facing Markham has been the limited up-take by the development industry on opportunities for new neighbourhood retail/service development within newly developing communities in the new urban areas of the Town (OPA No. 5 areas).  These designated neighbourhood commercial centres need to be implemented to provide a basic retail service to residents and to help new communities establish a community focus.   The Community Amenity Area category in the new urban area Secondary Plans introduced a new and widespread opportunity for what many Markham residents wished to see: mixed-use, pedestrian oriented, smaller-scale retailing.  Many new Secondary Plans introduced the Community Amenity Area designation as the opportunity to accommodate neighbourhood retail/service development.  However, there has often been a lack of market up-take of the retail opportunity, and the lands have generally been developed exclusively with residential uses.  There is a need for the Town to take a more proactive role in facilitating the development of neighbourhood retail/service development, to form local focal points within the new communities.

 

Council’s list of Strategic Priorities identifies need to pursue neighbourhood retail

On May 11, 2004 Council received and confirmed a list of Strategic Priorities and Actions associated with each priority for 2004 to 2006.  Strategic Priority No.2 is to create a better quality community.  “In a   quality community, neighbourhoods are designed to include pedestrian friendly activity centres which serve as focal points where residents can choose to gather to shop, socialize, learn or be entertained.”  Action No.2 associated with Strategic Priority No.2 is to “specifically pursue small neighbourhood retail focus/community gathering places, in central locations, in those new communities currently needing such facilities.”

 

Study finds local commercial strategy needed in the new urban area

In 2004, the Town commissioned John Winter to review the commercial policies in the Official Plan.  The Review of Markham’s Commercial Policies (RMCP) confirmed that there are trends and pressures in retailing that impact some of the Town’s policies. 

 

The RMCP noted that a critical community building block such as the Neighbourhood Commercial Centre should not rely on the serendipity of the market to respond to the Town’s mixed-use policies of the Community Amenity Area designation.  The market up-take for neighbourhood retail/service development has not been occurring, to the extent required, particularly along the Bur Oak spine of the new urban areas.  The RMCP explained that this has, in part, occurred due to the short term value of residential land being higher than commercial land, and due to developers looking for short-term returns on residential development, rather than a longer-term return from a commercial investment.  Fragmented land ownership (as opposed to ‘master planned’ communities under a single developer/builder), and an apparent unwillingness of developers to underwrite and support retail development ahead of residential build-out have also been mitigating factors.  The result is that even at good locations within the Community Amenity Area category of designation (such as arterial intersections), there is no guarantee as to if or when a sufficient amount of commercial space will be built.  The Town has had no formal mechanisms in place to encourage or require the “community” commercial development needed on a daily or weekly basis by the consumers living within the general vicinity.

 

The RMCP recommended that the Town must specify, in Secondary Plans, key locations where a minimum number of Neighbourhood Commercial and Community Commercial retail developments should be in order to assure basic future service for its residents.

 

Staff reported on the findings of the RMCP to Development Services Committee (DSC) on May 18th,, 2004.  Among the recommendations was that staff review opportunities to secure neighbourhood commercial centres in the newly developing Secondary Plan Areas of Official Plan Amendment No. 5, and report back to Development Services Committee with appropriate recommendations, including possible amendments to Secondary Plans and Zoning By-laws to implement the recommendations of the RMCP.  Development Services Committee referred the matter to a Committee set up to review all the RMCP policy recommendations.

 

Commercial Policy Review Sub Committee considered strategy

The proposed Neighbourhood Commercial Strategy was presented and discussed at the Commercial Policy Review Committee on September 29, 2004.  The Committee recommended that staff review the comments made by the Commercial Policy Review Sub Committee regarding the Neighbourhood Commercial Strategy, and report to the Development Services Committee to obtain direction to proceed with the Strategy.

 

Building “Complete Communities”

The proposed Neighbourhood Commercial Strategy is consistent with the Draft Growth Plan for the Greater Golden Horseshoe which lists several principles for guiding decisions on how land is developed.  One of these principles is to build “complete communities” that provide sustainable housing and transportation and enhance quality of life.  “Complete communities” have an identifiable centre and provide local communities with services along with an appropriate mix of jobs, a full range of housing, recreational and cultural opportunities for their residents.  Neighbourhood retail/service uses help to complete communities.

 

OPTIONS/DISCUSSION:

Strategy Approach

The Neighbourhood Commercial Strategy was constructed by examining all the Secondary Plan policies and associated zoning within each of the Secondary Plans within the newly developing urban areas.  The Secondary Plan process used for each of these plans identified where neighbourhood retail/service development was appropriate, and the assumption made in this strategy that these locations continue to be the appropriate places for this form of development to occur.

 

Through this exercise it became evident that there are areas where there is risk of no neighbourhood retail/service development due to the permissive, “mixed-use” nature of the secondary plan policies and zoning.  The Strategy outlined in this report identifies where Secondary Plan Amendments should be considered to secure a minimum number or amount of gross floor space for neighbourhood retail/service development, and where implementing zoning by-law amendments for the same are recommended. The minimum gross floor area and uses will vary by Secondary Plan area and will be identified by staff after consulting with land owners.  Staff will report back to Development Services Committee in separate reports which focus on each individual area/location.  Finally, where the policies and zoning have adequately protected for neighbourhood retail/service development, the Strategy identifies that these policies and zoning standards should be retained.

 

Markham Centre and Times-Galleria are not included in this Neighbourhood Commercial Strategy because neighbourhood retail/services for residents are available or being provided through current planning approvals. 

 

This Neighbourhood Commercial Strategy also has not included alternatives in the case of South Unionville, because there is still ample opportunity available within the Community Amenity frontage along Kennedy Road for provision of neighbourhood retail/service uses to serve this planning district.  In fact, there are eight mixed use units which incorporate neighbourhood retail/service uses at grade and residential uses above grade within the Andrin Kennedy Homes townhouse development at the intersection of Castan and Kennedy.  Furthermore, the immediate proximity to the existing Highway 7 commercial opportunities also contributes to the retail needs of this planning district.

 

Finally, in accordance with the conclusions of the Review of Markham’s Commercial Policies, this Neighbourhood Commercial Strategy is not intended to address the provision of larger scale retail/service uses.

 

This Neighbourhood Commercial Strategy also includes consideration of incentives to support and encourage the provision of these neighbourhood retail services.  These incentives may include: the use of the new NC3 Zone; requiring a built form which can accommodate mixed-use; reducing parking standards for neighbourhood retail/service uses; and prioritizing servicing allocation to mixed-use neighbourhood retail/service uses and possibly to those mainly residential developments which incorporate the construction neighbourhood retail/service uses.  Financial incentives to be reviewed include deferring Development Charges and cash-in-lieu of parkland payments or providing a flexible payment plan; and/or reducing the cash-in-lieu of parkland requirements.

 

Highway 404 North Planning District

Official Plan Amendment No.113 identified a site that could accommodate neighbourhood retail/service uses (Figure 1 – APPENDIX A).  The Highway 404 North Secondary Plan is currently being developed.  The exact category of designation and the particular policies to be applied to the subject lands will be determined through the secondary plan process.

 

Implementing zoning will proceed at a later date.

 

PROPOSED STRATEGY: Continue with the current Secondary Plan process and incorporate provisions ensuring adequate neighbourhood retail/service uses into the Secondary Plan and Zoning.

 

Cathedral Planning District

A recent amendment to the Cathedral Community Secondary Plan (Official Plan Amendment No.123) has identified a central core area where retail/service uses will be required at grade (Figure 2 – APPENDIX A).  There is no option for residential uses at grade.  These lands are designated Community Amenity Area in the Official Plan, and Cathedral Precinct and Community Amenity Area – Main Street in the Cathedral Secondary Plan.  This area will provide ample opportunity for neighbourhood retail/service uses to integrate into the community.  Official Plan Amendment No.123 was adopted on July 1, 2004 and is currently before the Region awaiting approval.

 

Implementing zoning will proceed at a later date.

 

PROPOSED STRATEGY:  Continue with the current Secondary Plan Amendment (No.123) process, and ensure the zoning will implement the policy intent for the area.

 

Angus Glen Planning District

The Angus Glen Secondary Plan includes one site designated Community Amenity Area I (Figure 3 – APPENDIX A).  Permissions for this site include both the commercial uses as contemplated by the Official Plan as well as residential development in the form of apartment dwellings. 

 

The site is zoned CA1(H) in Zoning By-law 177-96 and could permit a range of residential, community retail and service uses. 

 

This site has not yet developed.  We have recently been advised by Angus Glen (Kylemore) that they are preparing preliminary design drawings for a retail/office development at this location.

 

PROPOSED STRATEGY:  Continue discussions with the owner with regard to development of neighbourhood retail/service uses, including an option to mandate retail at grade.  Following these discussions, staff will report further on the need for a Secondary Plan Amendment and/or Zoning By-law Amendment.

 

Berczy Planning District

Figure 4 (APPENDIX A) illustrates 6 possible sites within the Berczy Secondary Plan for neighbourhood retail/service uses. 

 

Sites 1 and 2

Sites 1 and 2 are designated COMMERCIAL (Community Amenity Area) in the Official Plan and Community Amenity Area – Arterial in the Secondary Plan.  Permissions include commercial uses as contemplated by the Official Plan, and the Secondary Plan requires that these sites shall include 5600 to 8400 square metres of retail, personal service and related entertainment uses designed to fulfil the weekly shopping needs of the surrounding community. 

 

The zoning for Site 1 is not yet in place, however Site 2 is zoned CA1*103 (H) in Zoning By-law 177-96 and permits a commercial shopping centre of 3000 square metres subject to the removal of the (H) (no residential permission).

 

Site 2 has received site plan approval and is in the Site Plan Agreement stage.  The Site Plan Agreement has not been executed.  There is no activity on Site 1 yet.

 

PROPOSED STRATEGY FOR SITES 1 AND 2:  Retain the policies and zoning requirements for Site 2, and ensure that the future zoning for Site 1 implements the policies of the Secondary Plan relating to the required commercial development.

 

Site 3

Site 3 is designated URBAN RESIDENTIAL in the Official Plan and Urban Residential in the Secondary Plan and permitted uses include the range of urban residential uses, except retail service uses.

 

The implementing zoning is not yet in place.  This site is being used as an active farm.

 

PROPOSED STRATEGY FOR SITE 3: The potential for neighbourhood retail/service opportunities on Site 3 will be addressed in the context of the Community Design Plan and reviewed through future draft plan of subdivision and zoning approvals required before the lands may be developed, when the owners are ready to proceed.

 

Site 4

Site 4 is designated Neighbourhood Commercial Centre in the Secondary Plan.  Permitted uses are based on the provisions of the Official Plan and Secondary Plan, which provides for neighbourhood retail/service uses.

 

The zoning implements the policies of the Secondary Plan - the site is zoned NC1 (H) in Zoning By-law 177-96 and could permit a range of neighbourhood retail/service uses.

 

There has not been any development application received for this site yet.

 

PROPOSED STRATEGY FOR SITE 4: Retain and encourage development under the current zoning and review possible incentives.

 

Wismer Commons Planning District

Figure 5 (APPENDIX A) illustrates the opportunity available within the Wismer Commons Secondary Plan. 

 

The site is designated COMMERCIAL (Community Amenity Area) in the Official Plan and  Neighbourhood Commercial within the Secondary Plan.  The Secondary Plan further states that retail is not to exceed 500 square metres of gross floor area within the ‘Circle’ identified within the Secondary Plan.  This is the last remaining opportunity to provide commercial uses within the ‘Circle’ as all other Neighbourhood Commercial areas within the ‘Circle’ have developed with residential uses.

 

There is currently no implementing zoning in place.   

 

The Town has received an application for subdivision and zoning in which the proposed uses are residential.

 

PROPOSED STRATEGY FOR SITE 1:  Enter into discussion with landowner to make provision for at-grade retail at an appropriate location through the zoning by-law amendment and the current development approval process and review possible incentives.

 

Greensborough Planning District

The Greensborough Secondary Plan currently designates its Village Square as Community Amenity Area – Central Corridor -- the Official Plan designation is COMMERCIAL (Community Amenity Area) (Figure 6 – APPENDIX A).  The Secondary Plan provides that among the permitted uses, the primary use of the lands may be for medium density residential development.  The Community Design Plan identifies these lands as the Village Square, and it is intended to be the commercial centre and central gathering place for the community.  The Village Square retail/service strip is integrated with the adjacent park as it encircles it.  Together, the park and the retail/service strip will function as a community focal point and gathering place for the community.

 

The zoning permits both residential and retail uses.  The area is zoned CA2*138 (H) in Zoning By-law 177-96 which could permit a range of residential, community retail and service uses.

 

The Village Square retail /service strip portion is undeveloped and no application has been received for the site.  The park portion of the Village Square is developed.

 

PROPOSED STRATEGY:  Recognizing the current permissive policies and zoning in place, the proposed strategy is to amend the Secondary Plan and Zoning By-law to require a minimum gross floor area of at-grade neighbourhood retail/service uses within the Village Square.  Staff have initiated discussion with the Greensborough Developer to ensure that the Village Square objectives of the Secondary Plan and Community Design Plan are implemented and include a strong component of retail use.  Staff will also examine which possible incentives might assist in securing these objectives. 

 

Swan Lake Planning District

The Swan Lake commercial site (Figure 7 – APPENDIX A) is designated URBAN RESIDENTIAL in the Official Plan and designated Neighbourhood Commercial in the Secondary Plan.  Permitted uses are those listed in the Official Plan provided they front on the road in a main street fashion, and shall front on the adjoining local road with no access from 16th Avenue. 

 

The lands are zoned NC1*3 in Zoning By-law 177-96 which permits neighbourhood retail/service uses (no residential uses permitted). 

 

A site plan application was approved in September 2002, to develop the east side as Neighbourhood Commercial Centre, however, the site plan agreement has not yet been executed and the approval will lapse in September of 2005.  The west side is yet to be developed.

 

PROPOSED STRATEGY:  Retain and implement the current policies and zoning for each of the two sites, and review possible incentives.

 

Cornell Planning District

The Cornell Secondary Plan identifies and designates several sites for neighbourhood commercial uses illustrated in Figure 8 (APPENDIX A).  These neighbourhood centres are to be the pedestrian oriented focal points of each respective neighbourhood, in keeping with the new urbanism master plan for Cornell.

 

Site 1

Site 1 is designated URBAN RESIDENTIAL in the Official Plan and Neighbourhood Centre in the Cornell Secondary Plan.  It has been appropriately developed with a mixed use project with retail at grade level and residential apartments above, known as the “Cornell Mews” (APPENDIX B).  The secondary plan’s intent that this site accommodate a range of medium density residential and a limited amount of convenience retail, personal service and business activity at-grade has been met. 

 

This site is zoned NC2*6 in Zoning By-law 177-96 which permits a range of neighbourhood retail/service uses at-grade and residential uses above grade.

 

The site is fully developed since 1999.

 

PROPOSED STRATEGY FOR SITE 1:  Retain the current policies and zoning.  This site provides a good example of how a street oriented, mixed use development with retail at grade, and integrated with adjacent parkland, can provide a true focal point for a residential neighbourhood (see APPENDIX B).

 

Site 2

Site 2 is designated COMMERCIAL (Community Amenity Area) and Community Amenity Area – Corridor in the Secondary Plan. This designation permits residential, commercial and institutional development in medium and high density residential buildings, office and institutional buildings.  The intent of the secondary plan is that retail, service and office uses and institutional uses be accommodated on the ground floor of residential or office buildings.

 

Site 2 is zoned R2*163*190*210 in By-law 177-96 and permits a range of neighbourhood retail/service uses at-grade and residential uses above grade.

 

This site is not yet developed.  This site is part of the Metrus development.

 

PROPOSED STRATEGY FOR SITE 2: Retain and implement the current policies and zoning and encourage the provision of at-grade retail through the site plan process.

 

Sites 3, 4 and 5

Sites 3, 4 and 5 are designated URBAN RESIDENTIAL in the Official Plan and Neighbourhood Centre in the Secondary Plan. It is intended that these sites accommodate a range of medium density residential and a limited amount of convenience retail, personal service and business activity at grade in a “corner store” format.

 

Site 3 is zoned R2*190*193*257 in By-law 177-96 and permits convenience retail stores, retail stores and restaurants with a maximum floor area of 120square metres per premises only in the first storey of a building;  not more than 2 dwelling units are permitted provided they are located above the 1st storey.  Site 3 has not yet been developed, but is part of the Cornell Rouge development.

 

Sites 4 & 5 are have not yet been zoned.

 

There is now a new NC3 Zone Category in By-law 177-96 which was modelled after Site 2 and 3 and will facilitate zoning new “corner store” sites within the new urban areas.

 

PROPOSED STRATEGY FOR SITE 3: Retain and implement the current policies and zoning

 

PROPOSED STRATEGY FOR SITES 4 AND 5: The new NC3 Zone in By-law 177-96 should be applied to Sites 4 and 5 to implement the Secondary Plan.

 

Site 6

Site 6 is designated COMMERCIAL (Community Amenity Area) in the Official Plan and Community Amenity Area – Corridor within the Secondary Plan and is commonly referred to as the Mattamy live/work product line.  This designation permits residential, commercial and institutional development in medium and high density residential buildings, office and institutional buildings.  The intent of the secondary plan is that retail, service and office uses and institutional uses be accommodated on the ground floor of residential or office buildings.

 

Site 6 was zoned to permit 53 Live-Work townhouse units along both sides of Bur Oak Avenue with a variety of commercial type uses in the ground floor component of each building, and with permission for a café/restaurant type use for the 2 lots that have direct exposure to the central parkette on Bur Oak Avenue.   The zoning categories used are CA3*191*255 and CA3*191*255*256 which permit a range of residential, and retail and service uses at-grade.

 

Some of these units have been sold but are not yet developed.  Appendix C provides floor plans and elevation drawings of this product line to illustrate what these units will look like.

 

PROPOSED STRATEGY FOR SITE 6:  Retain and implement the current policies and zoning, and encourage this type of mixed use product to be introduced in other areas within the Town.

 

Box Grove Planning District

Figure 9 (APPENDIX A) illustrates the three possible Box Grove Secondary Plan sites.  Sites 1, 2 and 3 are located along 14th Avenue at the realignment of 9th Line and are designated COMMERCIAL (Community Amenity Area) in the Official Plan and Community Amenity Area - Village Centre in the Secondary Plan.  The intent of the secondary plan designation is that the Village Centre is expected to become the central urban focus of the district and provide opportunities for development of single use and mixed use buildings and projects.  This designation permits the COMMERCIAL (Community Amenity Area) uses listed in the Official Plan with the exception of hotels, motels, night clubs, automobile service stations, car washes, funeral homes, automobile repair uses and banquet halls.

 

Generally, the zoning requires commercial uses at grade with residential uses above.  Sites 1, 2 and 3 are zoned CA1*228, CA1*231 and CA1*233 respectively in By-law 177-96 and permitted uses include a range of neighbourhood retail/service uses at-grade and residential uses above grade.

 

Sites 1 and 2 will be home to moved heritage buildings.  The heritage building for Site 1 has already been moved and will receive site plan approval shortly.  The heritage building for Site 2 has not yet been moved.  None of these 3 sites are yet developed.

 

PROPOSED STRATEGY: Retain and implement the current policies and zoning including reviewing possible incentives.

 

Rouge Northeast Planning District

Figure 10 (APPENDIX A) illustrates two sites within the Rouge Northeast secondary plan designated for neighbourhood commercial uses. 

 

Site 1

Site 1 is designated URBAN RESIDENTIAL in the Official Plan and Neighbourhood Commercial Centre in the secondary plan.  The permitted uses are those listed in the Official Plan.

 

The site is zoned NC1*17 (H) in By-law 177-96 which could permit a range of neighbourhood retail/service uses.

 

The property currently has access onto Rouge Bank Drive and 9th Line.  The 9th Line is proposed to be realigned south of Highway 407 to the east around the existing Box Grove Hamlet, and this By-Pass is expected to be completed by Spring 2006.  When the 9th Line By-Pass is constructed, access from the property to 9th Line will be eliminated.  The viability of this commercial site, particularly for a conventional commercial plaza, may be affected by the lack of visibility from a major road such as the 9th Line By-Pass.  Also, when the 9th Line By-Pass is completed, the 9th Line right-of-way north of Rouge Bank Drive will no longer be required for road purposes by the Region of York and would be downloaded to the Town.  The 9th Line right-of-way north of Rouge Bank Drive is proposed to provide a road connection to a future transitway proposed west of 9th Line, south of Highway 407, within the Legacy Secondary Plan area.

 

This site was subject to a Secondary Plan Amendment and Zoning Amendment Application to re-designate the site to Urban Residential and to use the site for exclusively single detached residential purposes which is currently before the Ontario Municipal Board under appeal. 

 

PROPOSED STRATEGY FOR SITE 1: The objective for this site is to obtain a multiple residential building form incorporating opportunity for at grade retail.  The strategy for this site is to work through the appeal process to mandate the potential for retail on this site, while responding to the community objective to see the primary use of the site as residential.

 

Site 2

Site 2 is a Town owned building known as the “Club House”, which functions as a small scale community centre and the club house for the Town Owned Markham Green golf course.  The site is designated OPEN SPACE and HAZARD LANDS within the Official Plan and Neighbourhood Commercial Centre in the Secondary Plan.  The Secondary Plan policies related to Open Space and Hazard lands apply to this site as well as the use permission of the Neighbourhood Commercial Centre in the Official Plan.  The Secondary Plan also identifies some additional use permissions.

 

The site is zoned NC1*14 in By-law 177-96 which permits a range of neighbourhood retail/service uses in addition to other uses.

 

The building currently functions as a Community Centre (Rouge River Community Centre) with meeting rooms and a public swimming pool, and a snack bar and registration desk for the golf course.  There is no indication that it will be redeveloped with any greater focus on retail/service uses in the future. 

 

PROPOSED STRATEGY FOR SITE 2:  Retain the current policies and zoning at this time.  The Town does have the option in the future of considering additional neighbourhood retail/service uses in this Town owned building should the opportunities in Site 1 be lost.

 

Need for Incentives to support the strategy

It is recognized that this strategy alone may not be enough to realize the development of neighbourhood commercial centres, as desired.  In addition to the planning strategy to be pursued for each site, discussed above, possible incentives, as further encouragement have been reviewed. 

 

Reduction in Property Taxes

There is no immediate or practical way to reduce municipal tax requirements for the new retail component of these new neighbourhood retail service uses.  There is no “small retail” property class in existing assessment legislation that could be used to reduce taxes to this type of development at this time. (The Province of Ontario is considering implementing a “small retail” property class, but has not enacted amended legislation or regulations to do so).  Alternatively, the ability to tax different assessment levels in the commercial and industrial property classes (graduated rates) at different tax rates does exist in current legislation, but has the effect of increasing the taxes for the larger businesses (e.g. shopping malls) in these classes, and/or shifting tax burden to the residential class.  The reduced rate also would only apply to the Town and Region share of the taxes (30%), as there is no reduction permitted on the Provincially controlled education portion (70%). In any case, the authority to implement graduated rates is with the Region of York Council and would be in effect for all nine York Region municipalities.  Staff is not recommending this option be pursued as it is not an appropriate or practical incentive.

 

Defer Development Charges

Deferral of Development Charges for neighbourhood retail/service use sites identified in this report may assist in making the development of retail uses more attractive to developers/builders.  This practice may also be supplemented by a flexible phased repayment plan.  Use of this incentive would allow small retail/service uses to become established early on, and only begin to pay for the development charges after the initial start-up expenses are dealt with.

 

Relax cash-in-lieu of parkland policy

Another possible financial incentive is to adjust the Town’s cash-in-lieu of parkland policy.  Payments might be deferred and phased in a flexible payment plan or reduced, or a combination of the two.

 

New NC3 Zone

As mentioned in the discussion for sites 2 and 3 in the Cornell Planning District, there is now a new NC3 Zone Category in By-law 177-96 which was modelled after corner store sites in Cornell.  This new zoning category facilitates the zoning standards for corner “store” by reducing the parking requirements for the retail component of a mixed use building with retail or restaurant uses at grade.  This new zone can now be used throughout the By-law 177-96 area which encompasses the entire new urban area.

 

Reduced parking requirements for Neighbourhood Commercial sites

As noted, the new NC3 Zone reduces the parking requirement for the retail portion of a mixed use development. Further review of possible parking reductions will be reviewed elsewhere as staff move forward with the implementation of the Neighbourhood Commercial Strategy. 

 

Build for mixed-use

Requiring or providing for “mixed-use” built form, with retail on the ground floor of a residential or office development may also create an incentive for delivery of neighbourhood retail/service uses.  This built form and mix of uses could provide an alternate revenue stream, (residential and/or office rental income) until the retail uses are established.  The new “live/work” product being developed in the Cornell Planning District provides for some potential for securing future retail at grade.  However, this built form will be reviewed as incentive for other sites, where retail uses will be mandated through zoning.

 

Servicing Allocation

Another possible incentive is to prioritize servicing allocation to those mixed-use neighbourhood retail/service uses which include at grade retail with residential uses above (such as the Village Square area of Greensborough).  The Town should also consider giving priority to servicing allocation for residential development where the delivery of neighbourhood retail/services uses are a component incorporated in the development.  In this case, the timing of allocation to residential uses may be linked by an agreement to the timing of the construction of the neighbourhood retail/service uses.

 

FINANCIAL CONSIDERATIONS:

Development Services Staff has consulted with staff from the Finance Department.  The possible financial incentives outlined above, have been developed following that consultation.  Should Council consider it appropriate, staff will report back on a detailed financial incentive program, in the form of Development Charges and cash-in-lieu of parkland deferrals.

 

ENVIRONMENTAL CONSIDERATIONS:

None at this time.

 

ACCESSIBILITY CONSIDERATIONS:

None at this time.

 

ENGAGE 21ST CONSIDERATIONS:

The basic strategy in this report is to pursue policy and zoning opportunities for neighbourhood retail/service uses, and to mandate such uses through zoning, where appropriate.  We have also identified possible opportunities for the use of Town lands to support the provision of small scale, pedestrian oriented commercial development.

The recommendations of this report are consistent with Corporate Goal No.4 “Managed Growth” and will contribute to well-planned retail services to be provided to the residents of the new urban areas within the Town of Markham.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Comments from Town departments will be addressed at the time of site plan approval.

 

ATTACHMENTS:

APPENDIX A – Figures 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10.

APPENDIX B – Cornell Mews

APPENDIX C – Mattamy Live/Rent

 

 

 

 

 

 

Valerie Shuttleworth, M.C.I.P., R.P.P.

Director of Planning & Urban Design

 

Jim Baird, M.C.I.P., R.P.P.

Commissioner of Development Services

 

 

Q:\Development\Planning\MISC\MI491 Commercial Policy Review 2004\Reports\Neighourhood Commercial Strategy Report March 1.doc