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:

Biju Karumanchery, Co-ordinator, South District, ext. 2970

T.J. Lambe, Manager, Policy and Research Division, ext. 2910

 

 

 

 

DATE OF MEETING:

March 22, 2005

 

 

 

 

SUBJECT:

RECOMMENDATION REPORT

 

 

Miller Paving Limited

7781 Woodbine Avenue

Applications for Official Plan and Zoning By-law Amendments to permit a major shopping centre at the northeast corner of Woodbine Avenue and 14th Avenue.

FILES:  OP.04-017217 & ZA.04-017225

 

___________________________________________________________________________________________

 

RECOMMENDATION:

THAT the record of the Public Meeting held on October 19, 2004 with respect to the applications by Miller Paving Limited for Official Plan (OP.04-017217) and Zoning By-law (ZA.04-017225) amendments, to permit a major shopping centre at the northeast corner of Woodbine Avenue and 14th Avenue, be received;

 

AND THAT the applications by Miller Paving Limited for Official Plan and Zoning By-law amendments be refused.

 

EXECUTIVE SUMMARY

Refusal of the Applications is Recommended

This report outlines the fundamental policy issues related to this proposal.  Given the factors noted, the report recommends that the applications by Miller Paving Limited for Official Plan and Zoning By-law amendments, to permit a major shopping centre at the northeast corner of Woodbine Avenue and 14th Avenue be refused for the following reasons:

·        The supply of land for industrial use in Markham is limited and the Town is actively engaged in identifying additional land;

 

 

·        The Industrial designation of the Miller property, as adopted by Council in 2003, is consistent with the need to ensure an adequate supply of industrial land;

·        the Industrial designation of the property is consistent with the provisions of the Official Plan, the Provincial Policy Statement and is now demonstrated to be consistent with the strategy for the preservation and protection of industrial lands identified by the Province;

·        The proposed change in designation of the property is not consistent with the Town’s Economic Development Strategy to establish, promote and support Markham as the best location for diverse high-tech, knowledge-based and related businesses. 

·        There is sufficient land designated in the Official Plan to accommodate retail development and there is no compelling reason to designate additional land for more large scale, retail development at this time;

·        Markham’s existing retail employment is at an appropriate level; the need to approve additional lands to provide for additional retail jobs is not required at this time; and,

·        The proposal is not consistent with discouraging auto-oriented big-box retail development in favour of other forms of retail development, to support a Strategic Priority of Council to create a better quality of community.

 

Report Summary

The lands subject to the current applications consist of approximately 20.47 hectares (50.5 acre) adjoining Woodbine Avenue and form part of a larger 35.58 hectare (87.91 acres) property located at the northeast corner of Woodbine Avenue and 14th Avenue.  The larger property has historically contained extractive and low intensity industrial  uses.  On the 20.47 hectares the applicant proposes to develop a major commercial shopping centre with individual premises of up to 13810 m2 (148,663 sq. ft.).

 

Markham’s Official Plan requires that the consideration of applications that seek to change a land use designation, shall have regard for “the availability of other designated lands to accommodate the uses proposed and the effect of a change in designation on the supply of land in the categories affected.” It must, therefore, be determined if the requested change in designation of 20.47 ha. is warranted, to achieve an increase in the supply of land for commercial uses while concurrently reducing the supply of industrial land.

 

Markham is a key employment centre within the GTA with an economic base supporting a diversity of employment including prestige, knowledge-based industries. The Town has identified a need to designate additional land to accommodate forecast growth in industrial employment in order to maintain Markham’s competitive economic position.  This need was initially identified in the 2000 Employment Lands Strategy Study, and confirmed in subsequent analysis by staff.  The Town’s findings were reinforced by a 2004 analysis commissioned by the Urban Development Institute that identified that high growth locations such as Markham have limited designated and developable lands available for employment growth.

 

The Town has been actively engaged in a program to identify and designate additional industrial land since 2000.  Staff’s analysis indicates that with, at best, a 5 to 6 year potential land supply that might become available for industrial use, most of which cannot be guaranteed to become market-ready, Markham cannot rely on there being sufficient designated, marketable land to competitively address near term need. Concurrently therefore, the potential land supply is also not sufficient to meet a requirement of up to 20 years, as identified in the Provincial Policy Statement. As part of the Town’s commitment to designate and preserve lands for industrial use, Council adopted Official Plan Amendment No.112 in 2003, identifying lands in the Highway 407/Rodick Road area, including the Miller property, for industrial use.

 

Emerging Provincial policy confirms the need to secure viable industrial lands and to assure that opportunities for infill, and the redevelopment of underutilized lands, are actively pursued in managing new growth.  In February 2005, the Province released the final version of the Provincial Policy Statement (PPS), which came into effect on March 1, 2005.  Also, in February 2005, the Province released the Draft Growth Plan for the Greater Golden Horseshoe (GGH). The Growth Plan’s policies elaborate on the policies of the PPS.  Both these documents establish the importance of industrial lands within the GGH context, where such lands should be located, and how they should be protected. It is important to understand that the Provincial policies are consistent with, and reinforce, the provisions of Markham’s Official Plan, and that the decisions by the Town, in support of designating and preserving industrial land, including the adoption of OPA No.112, are consistent with the Provincial strategy.

 

There is a high demand for industrial space in Markham. The pace of new development in Markham is lagging behind the “GTA North” market, due to a short supply of industrial land and the fact that there are few large land parcels available for sale. To maintain competitiveness, Markham must conserve its industrial land supply. The proposed conversion of viable industrial land is not consistent with the Town’s Economic Development Strategy to establish, promote and support Markham as the best location for diverse high-tech and related businesses.  

 

Based on Council requests over the last two years, staff undertook a review of Markham’s commercial policies as well as an inventory of commercial development in Markham.  The review concludes that the Town currently has sufficient land and retail floorspace potential to meet the needs of new residents to at least 2011.  The review also found that in terms of supply and demand, sufficient commercial floor space has been provided/planned in the right places to satisfy Markham requirements. Staff has also investigated the assertion that Markham is significantly under-represented in retail jobs compared to the Region of York and has concluded that Markham’s retail employment is at an appropriate level.  There is no compelling need to designate additional land in Markham, to create additional opportunities, for more, large scale, retail development at this time.

 

Finally, in 2004, Council identified a Strategic Priority for 2004 to 2006 of “creating a better quality of community”.  In support of this priority, identified by Council, an action to shift planning policies to discourage auto oriented big box retail development and encourage pedestrian friendly retail activity.  The proposed development incorporating significant big box components is not consistent with supporting this Council priority.

 

This report outlines the fundamental policy issues related to this proposal.  Given the factors noted in this report it is concluded that the preferred designation and continued use of the property is industrial, and that the applications to change the land use designation to permit large scale retail development should be refused.

 

The report also notes that any future redevelopment of the Miller property will require servicing and traffic studies as well as a Phase II environmental site assessment since the property has been identified as having some potential for contamination.

 

PURPOSE:

The purpose of this report is to provide a detailed review of the Official Plan and Zoning By-law amendment applications submitted by Miller Paving Limited to permit a major shopping centre at the northeast corner of Woodbine Avenue and 14th Avenue, and to recommend that the applications be refused.

 

BACKGROUND:

Subject Lands and Area Context

The lands subject to the current applications consist of approximately 20.47 hectares (50.5 acre) adjoining Woodbine Avenue and form part of a larger 35.58 hectare (87.91 acres) property located at the northeast corner of Woodbine Avenue and 14th Avenue (Figure 1).  The larger property is used for low intensity industrial types of uses such as an office and garage complex, asphalt plant, roller maintenance facility, asphalt testing lab, refuelling areas, a bus washing facility and a waste transfer facility (Figure 3).  The site also contains a former aggregate pit and area of ponded groundwater. Extensive earthworks are currently underway on the property which may relate to a restoration plan for the former pit, required to be completed to the satisfaction of the Ministry of Natural Resources.

 

The subject property is bounded to the north by a Hydro Corridor and lands being protected by the Province for a proposed future Highway 407 transitway, and further north by lands owned by Magna International and Highway 407.  The Hydro lands are currently being used for storage and maintenance of York Region Transit vehicles and Miller trucks (Figure 3).  The subject property is bounded to the south by an existing gas station located at the northeast corner of Woodbine and 14th Avenues and further south across 14th Avenue by a vacant property, a fire station as well as existing industrial buildings. To the east is the remainder of the applicant’s property and a works yard owned by the Town of Markham.  To the east, across Rodick Road, and to the west, across Woodbine Avenue, are existing industrial buildings. (Figure 3).

 

Proposal is to Develop the Lands for a Major Shopping Centre

The applicant is proposing to develop the subject lands (20.47 hectares) with a major shopping centre.  To this end the applicant has requested a redesignation of the subject lands to Commercial and specifically the Retail Warehouse Area and the Major Commercial Area sub categories.  The remainder of the applicant’s lands (15.11 hectares) do not form part of these applications and are identified for future development with industrial uses as well as a new Regional waste transfer station. No application for approval of the industrial uses has been submitted. The waste transfer facility serving southern York Region is to be constructed and operated by the owner on a 4.4 ha. (11 ac.) portion of the property and a site plan application for the facility is currently under review.

 

The applicant has submitted a conceptual site plan for the commercial proposal that includes retail stores having a total retail floor space of approximately 47,473 m² (511,000 ft²) to be anchored by three major tenants, which are not confirmed at this time.  The concept plan indicates that the major tenants will occupy “big box” buildings of 13,810 m2 (148,663 sq. ft.), 10,215 m2 (109,955  sq. ft.) with room for future expansion, and 8,225 m2 (88,539 sq. ft.).  The concept plan also demonstrates how the future industrial lands to the east of the subject lands might be developed (Figure 4).

 

A Public Meeting with Regard to these Applications was held in 2004

A Public Meeting was held on October 19, 2004 to consider these applications.  As suggested by staff, at that meeting Committee recommended that the applications be referred back to staff for a report and recommendation following Council's approval of the Highway 407/Rodick Road Secondary Plan.  At the time of the Public Meeting it was felt that it would be appropriate to consider the applications in the context of the required Secondary Plan which staff had been directed to prepare.  However, based on the work undertaken to date it is felt that there is sufficient information for staff to make a recommendation with respect to these applications.

 

An Official Plan Amendment prepared as part of Highway 407/Rodick Road Land Use Study Redesignated the subject lands from Parkway Belt West to Industrial

The Official Plan currently designates the property as Parkway Belt West, with a Former Waste Disposal Site symbol at the southwest corner of the property.  It should be noted that in 1995, the lands were deleted from the Parkway Belt West Plan.  However, no change in the Parkway Belt West designation in the Town’s Official Plan was subsequently requested by the owner and this designation, although outdated, remained until amended by the Town in 2003.

 

In July 2003, Council adopted Official Plan Amendment No. 112 to designate the lands in the Highway 407/Rodick Road area, including the subject property, as Industrial, and submitted the Amendment to the Region of York for approval.  In January 2004 the Development Services Committee directed staff to initiate a Secondary Plan for the lands subject to the designations established by OPA No. 112.  In June 2004, staff proposed a land use concept for the OPA No. 112 area to the Committee, and received authorization to continue with preparation of the Secondary Plan to implement the Industrial designation of OPA No. 112 based on the concept. The concept showed the majority of the lands being designated General Industrial Area, with the balance of the lands adjoining Woodbine Avenue designated Business Corridor Area. The large format retail elements of the applicant’s proposal are not consistent with OPA No.112, as adopted by Council prior to the submission of the subject applications, or with the direction from the Development Services Committee in regard to the Secondary Plan.

 

For the purpose of consideration of the subject applications the Industrial designation of the lands, adopted in 2003, represents the established intent of Council. The Industrial designation of the subject lands replaced the outdated Parkway Belt West designation. The lands currently have an industrial zoning and have been used in accordance with this zoning for many years. By virtue of use, zoning and adopted designation, the lands can be regarded as industrial.

 

Zoning By-law Amendment Required

With respect to zoning, the property is currently zoned Rural Industrial (M4) under By-law 2284-68, as amended (Figure 2).   A rezoning application is required to permit the proposed commercial uses. Revision to the current zoning would also be required to implement new industrial development in accordance with the required Secondary Plan.

 

OPTIONS/DISCUSSION:

Markham Official Plan Addresses Employment Land Supply

Central to consideration of the application is the request to change the land use designation of the property. Council adopted an industrial designation for the property in 2003. The Official Plan requires that the consideration of applications that seek to change a land use designation shall have regard for:

 

 “the availability of other designated lands to accommodate the uses proposed and the effect of a change in designation on the supply of land in the categories affected.”

 

The applications propose to change the Industrial designation adopted in OPA No. 112 to Commercial on a 20.47 ha portion of the property. It is understood that the application contemplates the construction of a waste transfer station on a further 4.4 ha of the property and possible industrial use of the balance (10.7 ha). It must be determined if the requested change in designation of 20.47 ha is warranted, to achieve an increase in the supply of land for commercial uses while concurrently reducing the supply of industrial land.

 

The Supply of Land for Industrial Use in Markham is Limited

Markham is a key employment centre within the GTA with an economic base supporting a diversity of employment including prestige, knowledge-based industries. Consistent with the provisions of the Official Plan, the Town monitors the supply of land for development and considers this information in regard to planning studies and approvals. The Town has identified a need to designate additional land to accommodate forecast growth in industrial employment, thus maintaining Markham’s competitive economic position. This need was initially identified in the 2000 Employment Lands Strategy Study, and confirmed in subsequent analyses by staff. The Town has been actively engaged in a program to identify and designate additional industrial land since 2000. To date, lands have been approved in Box Grove, designated in the Highway 404 North and Highway 407/Rodick Road areas and identified for designation in Armadale West. Concurrently, to preserve the supply of land presently designated or zoned for industrial use, staff has recommended that proposals to convert viable industrial lands to non-industrial use should not be supported.

 

There is a continuing need to bring additional industrial lands to the market, especially if these additional lands are suitably located, can be readily serviced, and offer the potential to provide for larger development parcels. Based on forecast employment, staff has estimated a near term, 10 year requirement for industrial land only, of between 600 and 875 hectares. Based on the minimum requirement of 600 ha, the current supply of designated land that is market-ready would satisfy the industrial land need for only one year (+/-53ha). If additional designated lands could be made market-ready by the owners these could satisfy up to an additional two to three years of industrial land need (+/-148 to194 ha).  The lands currently awaiting approval could contribute up to a further two year supply of industrial land (+/-121 ha). However given the uncertainty of outstanding planning approvals, installation of services and landowner priorities, it is not clear when, or how much of the designated and approved lands (+/-269-315 ha) could be relied upon to become market-ready within the near term.

 

The policies of the Official Plan and monitoring of the industrial land supply are intended to ensure that the Town remains in compliance with the Provincial Policy Statement (PPS), 1997 which requires the provision of sufficient land for employment uses “…to accommodate growth projected for a time horizon of up to 20 years” and maintains a land supply consistent with the growth projections established for the Town through the Regional Official Plan. Staff’s analysis indicates that with, at best, a 5 to 6 year potential land supply that might become available for industrial use, most of which cannot be guaranteed to become market-ready, Markham cannot rely on there being sufficient designated, marketable land to competitively address near term need. Concurrently therefore, the potential land supply is also not sufficient to meet a requirement of up to 20 years, as identified in the PPS. Given the challenges to ensuring an adequate supply of industrial land, the Town must pursue every opportunity to preserve and enhance the industrial land supply, particularly within the existing urban area.

 

UDI Analysis Confirms Limited Land Supply in Markham

In 2004 the Urban Development Institute retained Malone Given Parsons to assess the demand and supply of urban land to meet forecast growth in the GTAH to 2031. The resulting Analysis of Land Supply in the GTA-Hamilton Area concluded that the supply of employment land in the GTA, within 40 km of Pearson Airport (includes Markham), is only 45% of the total required, and that high growth locations such as Markham have limited designated and developable lands available for residential and employment growth. The analysis identified the Markham supply of designated, vacant and developable employment land as only 110 hectares.

 

Council has Designated the Miller Property for Industrial Use

As part of the Town’s commitment to designate and preserve lands for industrial use, Council adopted Official Plan Amendment No.112 in 2003, identifying additional lands in the Highway 407/Rodick Road area for industrial use; Regional approval of that Amendment is pending. This Amendment includes the Miller property which has an industrial zoning and has been used for extractive and low intensity industrial uses for many years. Prior to the adoption of OPA 112, the owner had expressed an interest in relocating some of the current uses on the property and developing new, more intensive uses. In discussions with the owner’s agent at that time, staff was provided with a concept plan for the property proposing an industrial development pattern with lots averaging 2 hectares (+/-5 acres)  in area. The potential for a Business Corridor Area designation, on lots of appropriate depth adjoining Woodbine Avenue was discussed, and it was understood that the final determination of detailed land use designations and related provisions would be made in the context of the Secondary Plan to implement OPA No. 112.

 

Following the adoption of OPA No.112 Council directed staff to prepare an implementing Secondary Plan to provide specific policies to guide the approval of development for industrial use. This work is in progress. Council also approved a site plan application for the Parkway Transformer Station, currently under construction, on a substantial portion (+/-40 ha) of the vacant and underutilized lands originally included in OPA No.112.

 

The decision by Hydro One to construct the Transformer Station significantly reduced the potential additional industrial land contemplated in the approval of OPA No.112 and focuses more importance on the remaining lands as the final major opportunity to extend the industrial park development, already existing on surrounding lands. The Miller property comprises 35.6 ha (+/-88 acres), a significant area of underutilized land within this existing industrial park context. Historically, the property has been used for low intensity industrial  uses and is located to form a logical extension of the industrial development to the east (Rodick Road), west and south (South Don Mills) and north (Brown’s Corners).  In combination with other properties in the Highway 407/Rodick Road area, these lands also represent the best remaining opportunity to substantially improve the industrial land supply within the Town’s current urban boundary, in keeping with the direction of Council.

 

The Industrial designation assigned to the property through OPA No.112 reflects the historical industrial zoning and use of the property, while permitting its evolution to more intensive industrial development. The industrial development contemplated would be in keeping with the character of the existing industrial development on surrounding lands. In recent discussions, the owner has identified the option of continuing, and potentially expanding the existing uses, in the event that the retail development proposed in the applications is not approved.  The continuation, or expansion, of existing uses would not be consistent with the intent of OPA No. 112 to bring underutilized industrial lands to the market and to accommodate new industrial development.  The owner should be encouraged to work with the Town to implement the intent of OPA No. 112 and the Town’s position in regard to the continuation or expansion of existing uses, should be addressed in the context of the required Secondary Plan and implementing zoning.

 

Provincial Policy Supports Designation and Protection of Industrial Land

Several recent documents released by the Province point to the importance of ensuring a viable supply of land to accommodate industrial employment. Forecasts in The Growth Outlook for the Greater Golden Horseshoe, published in January 2005, confirm that York Region will continue to be a significant location for new office and industrial employment through 2031, and that industrial employment will continue to comprise the most significant component of the employment mix. These forecasts underscore the importance of key Regional employment centres like Markham that attract and contribute office and prestige industrial employment to York Region and the GTAH, and the need to ensure that opportunities to accommodate these types of employment continue to be available.

 

Emerging Provincial policy confirms the need to secure viable industrial lands and to assure that opportunities for infill, and the redevelopment of underutilized lands, are actively pursued in managing new growth. In February 2005, the Province released the final version of the Provincial Policy Statement (PPS), which came into effect on March 1, 2005.  A central theme of the PPS is building strong communities through managing land use to achieve efficient development and land use patterns. Section 1.1.2 requires that:

 

“Sufficient land shall be made available through intensification and redevelopment and , if necessary, designated growth areas, to accommodate an appropriate range and mix of employment opportunities… to meet projected needs for a time horizon of up to 20 years.”

 

Section 1.3, Employment Areas (full extract in Appendix A) establishes a policy that:

 

Planning authorities shall promote economic development and competitiveness by…planning for, protecting and preserving employment areas for current and future uses…”

 

Also, in February 2005, the Province released the Draft Growth Plan for the Greater Golden Horseshoe (GGH). Section 2.5 of the Plan (Employment Areas) confirms that employment areas within the GGH are among the largest centres for manufacturing and distribution in North America and a major contributor to the economic prosperity of the Province. It specifically addresses issues of industrial land supply and the conversion of industrial lands to accommodate major retail uses, issues with which Markham has also been dealing. The Plan states that:

 

“Demand for industrial space including knowledge-based industries traditionally found in employment areas is expected to be an important element of economic growth in southern Ontario. We need to ensure an adequate supply of land is available … to accommodate industrial uses in large areas separated from residential and other sensitive uses. These employment areas should be strategically located within urban areas near major transportation corridors….

 One of the challenges facing municipalities…is ensuring employment areas are retained for industrial uses. The conversion of employment areas to other uses…can result in a shortage of employment lands.  The Growth Plan’s policies elaborate on the policies of the PPS by discouraging major retail uses in employment areas, and by requiring that a conversion to non-employment or major retail uses will not result in an expansion of the designated growth area.” (full extract in Appendix B)

 

Policies in the Draft Growth Plan clearly address the conversion of land within employment areas to major retail use. Section 2.5.2 provides that:   

 

“1. Municipalities may permit the conversion of lands within employment areas to non-employment or major retail uses only through a comprehensive review and only where it has been demonstrated that the conversion or designation is necessary to address other provincial priorities…or -

a)      the land is not required over the long term for employment purposes for which it has previously been designated, and

b)      the conversion does not result in an expansion of the settlement area to meet future         employment needs.

 2. Municipalities are encouraged to designate and preserve lands in the immediate vicinity

    of existing major highways… for manufacturing, warehousing and associated retail, office

    and ancillary facilities.”

 

Note: An “employment area” as defined in the PPS is an area, “designated in an official plan for clusters of business and economic activities including but not limited to, manufacturing, warehousing, office, and associated retail and ancillary activities”. The Draft Growth Plan makes it clear that major retail uses are not contemplated as part of an “employment area”.

 

It is recognized that the provisions of the new Provincial Policy Statement and the Draft Growth Plan may not bind Council in regard to a decision on the subject applications, which were submitted in 2004. The provisions of the previous PPS regarding land supply were operative at the time the applications were filed.  It is important however, for Council to understand that the new Provincial policies enunciate a  strategy to provide and protect a supply of industrial land that the Province is directing municipalities to pursue, and that the strategy specifically discourages major retail uses in defined employment areas. This strategy is consistent with, and reinforces, the provisions of Markham’s Official Plan requiring that a change in the Industrial land use designation shall consider effects on the land supply. The decisions already made by the Town in support of designating and preserving industrial land, including the adoption of OPA No.112, are consistent with Provincial policy and the evolving strategy.

 

The Proposal is Not Consistent with Markham’s Economic Development Strategy

There is a high level of demand for industrial space in Markham.  Industrial vacancy rates in Markham (based on Q4-2004) are sitting at 4.3% compared to the GTA average of 5.1%. Markham is part of the GTA North node and in 2004, this node enjoyed its highest level of absorption in five years due to increased demand.  In Markham the pace of new development is lagging GTA North market growth due to Markham’s short supply of industrial land and the fact that there are few large land parcels available for sale. To maintain the Town’s competitiveness, Markham must conserve its industrial land supply. 

 

With construction of the Rodick Road overpass underway and new listings of medium to large sized pieces of industrial land, the industrial block bounded by Hwy 404, Rodick Road, Highway 407 and 14th Avenue (including the Miller lands) has been experiencing increased interest and broker activity for industrial development.  Currently there are no significant vacancies in this block.  There have been numerous inquiries from industrial users, site selectors and developers that have come through the Economic Development Office looking for information.  In addition, members from the following organizations have gone on record to identify increased industrial interest for available development opportunities in this block:

·      Colliers International – numerous purchase offers on land listed at Yorktech Blvd. and Rodick. Rd.  Purchase of 3.2 acres by St. Regis Crystal  to construct a 60,000 sq ft light manufacturing plant.

·      Ontario Realty Corporation – numerous inquiries and eventual sale of 16 acre piece of land at Highway 407 and Addiscott Rd. to an industrial developer, Bloorguard Investments Ltd.

·      Connell Real Estate and Royal Lepage Commercial both state they have represented many industrial clients interested in locating in this area.  

 

The proposed change in designation of the property is not consistent with the Town’s Economic Development Strategy to establish, promote and support Markham as the best location for diverse high-tech and related businesses.  The Miller property is one of the few remaining development opportunities in Markham that can serve to accommodate the demand for industrial space. Retaining the industrial development potential of the property, is warranted for the following reasons:

·     Office and administrative employment alone cannot sustain continued growth in Markham’s High-Tech and knowledge-based community.  A true High-Technology cluster requires the support of specialized high-tech manufacturing, research facilities and laboratories to achieve growth in the cluster.

·     Ancillary functions such as warehousing, distribution, component manufacturing and light consumer goods manufacturing are also necessary to achieve economic growth.  These uses, together with certain high-technology companies which seek flexible building forms other than offices, will require designated industrial land and purpose-specific buildings.

·     The Town’s economic strategy also calls for a continued diverse economic base to achieve a more   balanced economy that can still achieve overall growth when one particular industry sector is suffering.

·     In 2004, Council approved a budget for the Economic Development Department to commission a Competitiveness Study that will critically review the current economic development strategy.  It is premature to allow the conversion of any industrial lands prior to receipt and adoption of the study recommendations.

 

Commercial Development in Markham Has Been Responsive to Consumer Needs

In 2003 Council requested a review of the Town’s commercial policies and in 2004 an inventory of commercial development in Markham. The Review of Markham’s Commercial Policies, April, 2004 concludes that the Town currently has sufficient land and retail floorspace potential to meet the needs of new residents to at least 2011, the current limit of the Official Plan planning period. The Review identified a total additional floorspace potential of 3.45 million square feet on lands presently designated to accommodate retail and service activities. The Review further identified the retail floorspace requirement for additional population growth to 2011 as 1.78 to 2.14 million square feet based on a standard between 50 and 60 square feet per capita. The floorspace potential exceeds the need to 2011, and continued development of floorspace on currently designated land could satisfy new residents’ needs to at least that year.

 

The Review also identified that the supply of designated land with the potential to accommodate big-box retail is diminishing. However, there is still sufficient land to accommodate an additional 1.6 million square feet of floorspace in the form of very large scale retail buildings, if the Town confirms that this type of retail development is still appropriate. In the event that this type of development is not what Council determines is appropriate, this available land  could be considered  for other forms of retail and mixed use development.

 

The Inventory of Markham Commercial Space, January 2004, identifies that there is currently 14 million square feet of retail and service floorspace in Markham, an increase of about 5 million square feet since 1992. This floorspace represents a service level of 59 square feet per capita, virtually the same standard identified in 1992. The review observes that:

 

“The consistency of the results indicates a self-regulating stability or “equilibrium”, in the overall commercial land market in Markham over the past 12 years. In terms of supply and demand sufficient space has been provided/planned in the right places to satisfy Markham requirements.”

 

The Inventory demonstrates that there is sufficient opportunity to continue to meet retail and service needs until at least 2011. The Inventory also reveals that Markham’s commercial floorspace has been evolving in terms of the size of commercial premises. The proportion of floorspace in larger establishments has been declining, compared to that in smaller and mid-sized premises. The proportion of floorspace in establishments over 50000 square feet declined from 25% in 1992 to 17.4% in 2004. Also notable are the increases in the proportion of floorspace in establishments under 2500 square feet (22.4 to 25.3%) and those in the 10000 to 50000 square foot range (21.2% to 25.9%). Overall, the Inventory confirms a substantial increase of almost 5 million square feet in commercial floorspace since 1992, characterized by much larger increases in small to mid-size retail premises compared to very large scale, big-box retail premises. Based on the findings of both studies there is presently no apparent reason to support a departure from the retail floorspace standard that characterises the commercial market in Markham, or a compelling need to designate additional land, to create additional opportunities, for more, large scale, retail development.

 

 

Markham’s Retail Employment is at an Appropriate Level

At the Public Meeting on October 19 2004, a consultant for the applicant advised the Development Services Committee that Markham is significantly under-represented in retail jobs compared to the Region of York as a whole. It was stated that the Town has approximately 6% of its employment in retail jobs, compared to a Regional average of 10% and suggested that on this basis the Miller proposal should be approved in order to add more retail jobs.

 

Staff has investigated this assertion, including a review of the report entitled Employment and Industry 2003 prepared by the Region, and referred to by the consultant. The Region’s report acknowledges (page A-3) that its primary focus is employment areas (business parks) and that it therefore significantly under-reports employment in certain parts of Markham, most notably locations such as Shoppes on Steeles, Markville Mall and Pacific Mall, that accommodate significant retail employment. This circumstance is clearly illustrated on Figure 40 of the Report. The report is therefore not an accurate data source for the conclusion regarding retail employment presented to the Development Services Committee.

 

Staff also examined 2001 Census data that demonstrates that the share of retail jobs in Markham was 5.6 % of the total, compared to a Regional share of 6.1%. The variation is minor and there is of course no planning rationale, or policy, dictating that Markham should display a share of a given employment type equivalent to that of the Region. As the Inventory of Markham Commercial Space demonstrated, the increase in retail floorspace in Markham has a responsive yet stable relationship to the growth in population, not to an artificial Regional average. In fact, Markham’s share of other employment types exceeds the Regional average in several instances reflecting the economic strategy pursued by the Town.  Staff believes that there is no basis to conclude that the amount of retail employment in Markham is not sufficient and will not continue to grow as currently available retail lands develop, and consequently, that there is any related rationale to approve additional lands for large scale retail development.

 

A Strategic Priority of Council  Includes Discouraging Big-Box Retail Development

In 2004, Council identified a Strategic Priority for 2004 to 2006 of “creating a better quality of community”.  As one action in support of this priority, Council identified:

 

“Shifting planning policies to discourage auto-oriented big-box retail development and encourage pedestrian friendly retail activity and mixed land uses at community focal points.”

 

It is understood that identified actions supporting the strategic priorities are to be considered in regard to policy recommendations and decisions by staff and Council. Approval of the proposed development which includes large scale retail buildings and large surface parking areas to accommodate auto access would not be consistent with supporting Council’s Strategic Priority.

 

Servicing and Traffic Studies are required for the Property

Although some servicing is available in the vicinity of the subject lands, a servicing study is required to determine if the existing municipal sanitary sewers and watermain can accommodate any future development with no adverse impacts on the existing system. With respect to stormwater management,  there are no Town storm sewers available in the vicinity and a drainage study is required for the subject property to accommodate any future development.

 

As part of the Highway 407/Rodick Road study, a transportation report was prepared which reviewed current traffic conditions and identified a number of transportation improvements which are being investigated within the Highway 407/Rodick Road area.  However, any significant redevelopment of the subject lands will require a site specific traffic study.  The applicant has submitted a traffic study to support the proposal and it has been forwarded for peer review.  However, in light of the issues raised in this staff report, the peer review has been put on hold, pending a policy decision by Council on the issues raised herein. 

 

Potential Contamination Issues will be Addressed prior to any future Development Approvals on these Lands

The existing Official Plan identifies a Former Waste Disposal site on the subject lands.  This identification, and the related policies, were incorporated into the Town’s Official Plan by a modification required by the Ontario Ministry of the Environment.  The policies require that prior to any development of these lands, environmental studies and any necessary mitigative measures be undertaken to the satisfaction of the Town and the Ministry of the Environment.  

 

As part of the Highway 407/Rodick Road study, a preliminary environmental site screening report was prepared by the Town’s consultants to identify areas of potential contamination, and to provide recommendations for additional studies/action plans.  According to the study, the majority of the subject property has a moderate potential for contamination.  The consultant identified adjacent lands, as well as a small portion of the subject lands as having a high potential for contamination.  Phase I and Phase II Environment Site Assessments will be required prior to any future development approvals on the subject lands.  In addition, prior to the granting of any approval for development a Record of Site Condition should also be completed for the subject lands by a qualified person, in accordance with current environmental legislation and standards.  To confirm that the site is suitable for the proposed use and, if necessary,  remediated in accordance with the Ministry of Environment standards, the Town should require that the Record of Site Condition be filed with the Environmental Site Registry office of the Ministry of the Environment and be acknowledged by the Ministry of the Environment.  The Town will also require an environmental clearance letter for any lands conveyed to the Town.

 

CONCLUSION:

This report outlines the fundamental policy issues relating to the consideration of the applications to redesignate the subject lands.  Based on consideration of these issues, as outlined in the report, staff concludes that a change in the Industrial land use designation, adopted by Council in 2003, to a Commercial designation, to permit large scale retail development is not warranted, and that the applications should be refused for the following reasons:

·        The supply of land for industrial use in Markham is limited and the Town is actively engaged in identifying additional land;

·        Council’s 2003 designation of the Miller property as Industrial is consistent with the need to ensure an adequate supply of industrial land and followed an extensive consultation process;

·        Retaining the Industrial designation of the property is consistent with the provisions of the Official Plan and is now demonstrated to be consistent with the strategy for the reservation and protection of industrial lands identified by the Province;

·        The proposed change in property designation is not consistent with the Town’s Economic Development Strategy to establish, promote and support Markham as the best location for diverse high-tech, knowledge-based and related businesses. 

·        There is sufficient land designated in the Official Plan to accommodate retail development and there is no compelling reason to designate additional land for more large scale, retail development at this time;

·        Markham’s existing retail employment is at an appropriate level; the need to approve additional lands to provide for additional retail jobs is not required at this time; and,

·        The proposal is not consistent with discouraging auto-oriented big-box retail development in favour of other forms of retail development, to support a Strategic Priority of Council to create a better quality of community.

 

FINANCIAL CONSIDERATIONS:

Markham’s strategic plan and economic development strategy focus on continued growth in the knowledge-based, R&D industrial sectors within the Town’s economy. The retention of underutilized industrial land and the approval of additional industrial land that can attract and accommodate new jobs, within and complementary to these sectors, is supportive of the Town’s continued economic well-being.

 

ENVIRONMENTAL CONSIDERATIONS:

As discussed above, potential for contamination exists on the subject lands and will have to be addressed to the Town’s satisfaction, in consultation with the Ministry of the Environment where appropriate, prior to any future development approvals.

 

ENGAGE 21ST CENTURY MARKHAM:

The retention of the Industrial designation of the property and continued effort to encourage the development of the property for industrial use responds to corporate goals relating to managed growth and economic development established in Engage 21st Century Markham, and particularly to the strategic choice that, “The Town will continue to focus on and actively support its position as the high tech/knowledge based capital of Canada”.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

The applications were circulated to internal departments (Fire, Building, Engineering, Design, Waste Management), and external agencies for comments. The Economic Development Department was consulted, and assisted in the preparation of this report.

 

 

 

 

 

 

 

 

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\APPL\ZONING\04 017225_MillerLands\DSC_March 22_05 -  Miller Final Report.doc

 

ATTACHMENTS:

Appendix A    Extract from The Provincial Policy Statement, March 1 2005

Appendix B    Extract from Places to Grow, the Draft Growth Plan, February, 2005

Figure 1:           Location Map

Figure 2:           Area Context/Zoning

Figure 3:           Aerial Map

Figure 4:           Conceptual Site Plan (Option 1)

 

AGENT/          Malone Given Parsons Ltd.                                           Tel: (905) 513-0170

                        c/o Jim Kirk                                                                 Fax: (905) 513-0177

                        140 Renfrew Drive

                        Markham, ON

                        L3R 6B3