RECOMMENDATION:
THAT the Development Services Commission Report entitled “IBM Canada
Limited, Applications for Official Plan and Zoning By-law Amendments and Site
Plan Approval to permit a new Toyota automobile dealership at 3300 Steeles
Avenue East, Northwest corner of Steeles Avenue and Victoria Park Avenue (File
No. OP 04 006802, ZA 04 006805 and SC 04 006813), dated June 28, 2004, be received;
AND THAT the applications for Official
Plan and Zoning By-law amendments and Site Plan Approval be
denied.
PURPOSE:
IBM Canada
Limited (the current property owner) has submitted applications for official
plan amendment, rezoning and site plan approval on behalf of Don Valley North
Automobile Inc. (prospective purchaser), to permit a new Toyota automobile
dealership at 3300 Steeles Avenue East. The
purpose of this report is to provide information and analysis regarding the
applications and to bring forward a staff recommendation.
EXECUTIVE SUMMARY:
Official Plan
and zoning by-law amendment and site plan applications have been submitted on
behalf of Don Valley North Automobile Inc. to permit a new Toyota automobile
dealership at 3300 Steeles
Avenue East. The applicant proposes to redesignate the
subject lands from Business Park Area to a Business Corridor Area category,
with zoning amendment, to accommodate the dealership. A number of issues were
identified through the application review process, including the Public
Meeting, and were addressed as follows:
- It was felt that the proposed development
would be most appropriately located within a Commercial Corridor Area land
use designation;
- It was felt that a redesignation from
Business Park Area to another land use category to accommodate a car
dealership could potentially set a precedent, which could contribute to
the erosion of high quality prestige industrial lands elsewhere in the Town;
- An investigation of comparative tax
assessment indicates that a Class ‘A’ office building could potentially
generate higher tax but that such development is not likely to occur until
the office vacancy rates are more favourable, and that taxes generated by
an industrial built to suit use and the proposed dealership would be
comparable;
- While the visual impact of the parking and
vehicle storage along the east and north sides of the building is of
concern, it was felt that this impact would be reduced/softened by the
proposed grading which lowers the vehicle storage compound, proposed
perimeter landscaping and the colonnade structure and landscape feature in
the parking lot;
- Multi-storey office component for lease to
others is not feasible but the applicant intends to construct for their
own use additional office space in the future within the two 4-storey
tower elements at the front of the building;
- The applicant is prepared to co-operate
with the Town to apply, if required by the Town, the funds that would be
necessary for a temporary sanitary servicing scheme towards the cost of
improving the municipal system.
It is evident from the analysis in this report that the proposed
development is not without merit.
However, the loss of Business Park Lands and the potential for setting a
precedent remains an overriding concern, relative to the merit of these
applications and, accordingly, staff cannot recommend approval of the subject
applications.
BACKGROUND:
Property and area context
The 2.339 ha (5.78 acres) property is
located at the northwest corner of Steeles Avenue and Victoria Park Avenue (See
Figure 1). The site contains a
significant number of trees, hedges and shrubs along the perimeter of the site. There are no structures or buildings situated
on the property. The existing grades within the site are significantly higher
than the surrounding lands (as high as 2.5 to 3 metres higher near the centre
of the site).
To the north of the site, across Torbay Road, is a vacant parcel of land
also currently owned by IBM Canada Limited but conditionally sold to Don Valley North Automobile Inc. as a package deal involving the subject
lands. (A dealership representative has indicated that once the dealership
takes title to this property it will be reviewed for potential office
development and/or put on the market for sale).
To the west, abutting the subject property, is
an industrial building fronting onto Torbay Road and an office building
fronting onto Steeles Avenue. To the
east, across Victoria Park Avenue is a high quality office building currently
occupied by the Maritime Life Assurance Co. and TD Waterhouse. To the south, across Steeles Avenue, are more
commercial office buildings (See Figures 2 & 3).
Proposal is for a new Toyota
automobile dealership
The applicant has submitted applications for official plan and zoning
by-law amendments and site plan approval, on behalf of Don Valley North
Automobile Inc. to permit a new Toyota automobile dealership having a total
gross floor area of 9,474 m2 (101,983 ft2).
The existing Don Valley North Toyota dealership at 3120 Steeles Avenue
east, located about 200 metres to the west of the subject site, has been at
that location in Markham since 1972 and currently contains a combination Toyota
and Lexus dealership. The applicant has
indicated that due to sales volume, customer service and corporate
requirements, the dealership management intends to expand their operation by
constructing a freestanding dealership building in close proximity to the
existing dealership. The new building is
intended to accommodate the Toyota component of the operation and would be
served by approximately 170 employees.
This dealership would include a showroom/sales offices, a service
centre, an automatic car wash for customers, as well as a basement area of
approximately 1,427m2 (15,360 sq. ft.) to be utilized for general storage, and storage of
demonstration vehicles. The existing dealership building is proposed to be
refurbished and used solely as a Lexus dealership.
OPTIONS/DISCUSSION:
Site specific Official Plan Amendment
would be required to accommodate the proposal
The Official Plan designates the subject property “Business Park
Area”. The intent of this designation is
to accommodate a mix of high quality business activities including corporate
head offices and research facilities.
The applicant is proposing to
re-designate the lands to “Business Corridor Area” to accommodate an automobile
dealership. The planned function of the
Business Corridor Area as described in the Town’s Official Plan is to provide:
“High quality
business activities in corridors along major road frontages, primarily adjacent
to industrial areas. Business Corridor
Areas are intended for industrial and commercial uses that require the exposure
offered by such locations in order to accommodate the business and service
needs of companies and employees, and to accommodate at appropriate location
certain businesses that may also serve the general public.”
The proposed use does not necessarily
serve the business and service needs of companies and employees in the vicinity
and would require exemption from certain Business Corridor Area provisions as
follows:
·
whereas the Business Corridor
Area designation caps the size of individual retail premises to generally not
more than 6,000 m2, the proposal is for a 9,474 m2
facility;
·
whereas this designation
prohibits automobile repair uses, the proposal would include a an automobile
service component as part of the dealership facility; and
·
whereas this designation prohibits
retail and industrial uses involving accessory outdoor storage and display of
merchandise, the proposal would involve the outdoor storage of used vehicles
and possible display of some new vehicles.
Within the Town’s current Official Plan
context, the proposed use would be more appropriately located within a
Commercial Corridor Area designation, the intent of which is to accommodate
retail and other uses which primarily serve the travelling public or whose
operating characteristics require a location with direct exposure to traffic on
Major roads. This designation would
permit automobile repair uses and accessory outdoor storage and display of
products for sale. However, a site
specific exemption to permit a retail premises greater than 6,000 m2
would still be required.
The proposed development would require rezoning
The subject property is currently zoned Select Industrial and Limited
Commercial [M.C.(80%)] under By-law 108-81, as amended. The current zoning permits a variety of
industrial, office and limited commercial uses, but does not include permission
for automobile sales and service uses and therefore the proposal requires a
rezoning.
Public Meeting held on May 4, 2004
A statutory Public Meeting was held on May 4, 2004, to consider the
proposed Official Plan and Zoning By-law Amendments. The proposal was generally well received by
Committee members, but certain concerns and questions were raised with respect
to the following:
·
whether the
proposal would set a precedent for redesignating other Business Park Area lands
for commercial uses;
·
alternative uses
for the subject property and a comparative tax assessment;
·
visibility of
the parking area from Victoria Park Avenue;
·
feasibility of adding a multi-storey office component to the proposal;
and
·
whether throw-away costs can be avoided with respect to servicing.
Each of these matters are discussed in detail below:
Redesignation of the subject
property could set a precedent
A question was raised as to whether or not the proposed official plan
amendment to permit an automobile dealership could set a precedent with respect
to the conversion of other Business Park lands for retail/commercial uses.
The applicant has noted that the subject site is the last remaining
significant vacant office/business park site with frontage on Steeles Avenue,
along this corridor and that the site has development constraints, which
reduces its viability as a Business Park site.
For these reasons they have argued that the site is unique and that
similar redesignation opportunities are not present elsewhere along this
corridor. However, similar arguments and
unique circumstances could be raised by other developers in favour of
redesignating other Business Park lands. Any time valuable Business Park lands
are redesignated for non-industrial uses, it could potentially set a precedent,
which could contribute to the erosion of high quality prestige industrial lands
elsewhere in the Town.
Alternative Uses and
comparative tax assessment
Committee
enquired as to alternative uses and an indication of comparative tax assessment
for the property. The current zoning
by-law permits a variety of uses on the subject property including the
following:
- Industrial uses such as warehousing,
assembly of manufactured goods, manufacturing within enclosed buildings,
repair and servicing of goods, data processing centres and computer
related functions, research laboratories and printing establishments; and
other industrial uses similar to the above uses;
- Private clubs and Health centres;
- Banks and financial institutions;
- Business and Professional Offices;
- Commercial Schools;
- Hotels and motels.
In
addition, the Business Park Area designation in the Official Plan would permit
a range of additional uses such as ancillary retail and restaurant uses,
banquet halls, certain institutional uses, community uses, day care centres,
trade and convention centres, private schools etc.
Of
these uses, it was felt that a Class ‘A’ office building or a build to suit
industrial user would provide the most appropriate tax assessment comparisons
vis-à-vis the proposed dealership. Based
on discussions with the Economic Development Department, real estate and
development industry representatives and the Finance Department, staff have
developed potential development scenarios for the subject site and comparative
tax assessments.
A
likely scenario is a Class ‘A’ 4-storey office building containing
approximately 9,290 m2 (100,000 sq. ft.) although, we are advised,
this scenario is unlikely to occur in the near term under the current market
conditions involving high office vacancy rates.
An alternative scenario would involve a build to suit industrial
building containing 9,290 m2 (100,000 sq. ft.) with approximately
85% warehouse space and 15% accessory office space.
The
following table provides a comparison of potential development scenarios for
the subject site. It should be noted,
however, that the office and industrial-warehouse scenarios do not take into
consideration development costs, such as property value, which may be a factor
in determining the feasibility of developing the site for such uses.
|
|
Scenario
1
|
Scenario
2
|
Scenario
3
|
|
Building
Type
|
Car Dealership
|
Class “A”
Office
|
Built to suit
industrial warehouse
|
|
Storeys
|
4
|
4
|
1 plus 2-storey
office
|
|
Gross
Floor Area
(sq.
metres)
(sq.
feet)
|
9,474 sq.
metres 101,981 sq. feet
|
9,290 sq.
metres
100,000 sq.
feet
|
9,290 sq metres
100,000 sq.
feet
(15% accessory
office)
|
|
Taxes per
sq. foot
|
$2.22
|
$4.20
|
$2.14
|
|
Estimated
Tax
|
$226,398
|
$420,000
|
$214,000
|
|
Parking
spaces required
|
276
|
Approx. 279
|
Approx. 90
|
Clearly the office scenario generates the highest
property tax, but such development is not likely to occur until the office
vacancy rates are more favourable. Tax
generated by the industrial built to suit use and the proposed dealership would
be comparable.
Visibility of parking area along Victoria Park
Certain Committee members raised concerns regarding the visibility of
the large parking and vehicle display area from Victoria Park Avenue and Torbay
Road. However, it was also noted that
even if the site was developed with a Class ‘A’ office building there would
likely be a significant parking area visible from the roads (storage and
display of vehicles are discussed later in this report).
Specific concern related to the 36-metre setback of the rear portion of
the building from Victoria Park Avenue, accommodating four rows of parking and
two driveways. The applicant was asked
to explore the opportunity to redesign the building to reduce the building
setback in this area. The applicant has
advised that based on the required layout and function of the building this
redesign could not be accommodated without exposing a significant number of
double overhead garage doors and garbage facilities to Victoria Park Avenue.
A colonnade structure and landscape feature in the parking lot, which
breaks up the large parking area at the side of the building, facing Victoria
Park Avenue, was initially proposed.
Since the Public Meeting the applicant’s architect has submitted
drawings which enhances the colonnade providing both vertical and horizontal
elements and which serves to further mitigate the impact of the parking area
between the building and Victoria Park Avenue.
Multi-storey office component for lease to others is
not feasible
Another matter raised at the Pubic Meeting by Committee involved the
feasibility of constructing a multi-storey office component to the dealership
for lease to others.
The applicant has indicated that, in an effort to incorporate office
space for leasing into the proposal, discussions have taken place with lenders
but that financial institutions have advised that due to the existing and
anticipated future market conditions (ie. high vacancy rates) office space can
be leased and/or subleased for less than the cost of new construction and have
therefore refused the necessary funding.
However, the applicant has noted that their intention is to construct
additional office space in the future within the two 4-storey tower elements
consisting of a total net floor area of 1,154 m2 (12,422 ft.2). The tower elements are currently being
designed to accommodate this future office space construction but such space
would be for Toyota’s use.
Throw-away servicing costs may be avoidable
As discussed below, capacity of the downstream local sanitary sewer
system in this area is limited and therefore the applicant is proposing an
expensive temporary servicing scheme involving a holding tank until the Town
sewers have been improved. At the Public
Meting staff was asked to explore the feasibility of avoiding the throw-away
cost and utilizing the money the applicant would have to spend on the temporary
system towards the ultimate improvements that are necessary in the area.
To this end, staff met with the applicant and his consultants, and the
applicant indicated his willingness to allow the Town to apply the funds that
would be necessary for a temporary system towards the cost of improving the
municipal system. However, allowing the
applicant to connect to the municipal system at the outset involves the risk of
exacerbating the existing situation.
Staff is currently reviewing the severity of the existing situation to
determine whether that system has sufficient capacity during peak periods to
accommodate the proposed development.
Once the review has been completed a decision will be made by the
Engineering Department on whether or not the applicant should be allowed to
connect to the municipal system at the outset as opposed to accepting the
holding tank solution.
Issues
identified in the preliminary report have, for the most part, been addressed
The applicant has tried to resolve the
concerns/issues identified in the preliminary staff report considered by
Development Services Committee on April 6, 2004, to the satisfaction of staff,
as follows:
Site plan and elevation details
The subject lands are at a highly visible corner location in a prestige
Business Park area. Any building(s) at
this site is expected to demonstrate a high quality of architecture and urban
design.
The proposed building is a three storey structure, consisting of two
storey high curtain wall glazing and a one storey high aluminium fascia at the
top, along the Steeles Avenue frontage, anchored by two 4-storey high glazed
circular tower elements. The three
storey high structure with two storey high glazing is continued around the east
side of the building facing Victoria Park Avenue for more than half the
building length. The rear (north)
portion of the building, as viewed from Victoria Park Avenue, has a lower
height (2 storeys) with precast concrete panel exterior and a glazed
semi-circular tower element.
The proposed building is positioned close to Steeles Avenue, providing a
strong street related presence. The
massing, design and materials, at the Steeles and Victoria Park intersection,
do address the built form context of prestige office buildings in the
area. However, after a short distance
from the intersection the building has been set back to accommodate parking
areas and driveways. As mentioned above,
the applicant’s architect is proposing a colonnade structure and landscape
feature in the parking lot facing Victoria Park, to visually break up the
parking area and also to bring architectural elements closer to the
street.
The proposed site plan shows two full moves accesses from Torbay Road
which will be gated for security purposes, one full moves access off Victoria
Park, and a right-in /right-out access from Steeles Avenue. The Steeles Avenue access has been approved
by the City of Toronto, conditional on the applicant extending the existing
raised central median at the Victoria Park and Steeles Avenue intersection to a
point in line with the westerly property line.
The proposed site and building layout proposes the majority of the
overhead service doors of the facility facing the west property line, away from
the streets. Also, the freestanding
1-storey automatic car wash to serve the dealership customers is located near
the northwest corner of the property, as far away from Victoria Park and
Steeles Avenues as possible.
The applicant also proposes to re-locate two existing bus shelters
onto the subject property, one each along Victoria Park and Steeles avenues,
with enhanced waiting areas. However,
such efforts remain to be reviewed with the relevant authorities. If approved, any necessary easements for the
bus shelters would be granted to the appropriate authorities (York Region
Transit and the TTC).
The applicant has indicated that all deliveries of vehicles by
transport truck will occur at their automobile holding compound located in the
Town of Whitchurch-Stouffville. Only those new cars sold are transferred, one
or two vehicles at a time, to the dealership; therefore, no new vehicles are to
be stored for inventory purposes at the dealership. With new vehicle storage being off-site,
unloading of new vehicles by the large vehicle transport trucks should not be a
problem.
Employee parking is provided along the west property line, on the
west side of the building, as well as within the secured compound at the rear
of the property. Customer parking is to
be provided on the east side of the building adjacent to Victoria Park Avenue.
Majority of
surplus parking is required for future expansion
The parking by-law requires the proposed automobile dealership parking
supply to be calculated at a rate of 1 parking space per every 25 m2 of the net floor area, plus 1 parking space
per 100 m2 of basement area which is used for new vehicle preparation
and clean-up. Based on the submitted plans, the development
will require a total of 276 parking spaces 365 spaces are proposed, for a total
surplus of 89 spaces.
The applicant has indicated that in the future they plan to
construct additional office space within the two 4-storey tower elements,
having a total net floor area of 1,154 m2, which would require an additional 46 parking spaces. Including the future expansion a surplus of
43 parking spaces would remain. However,
it is noted that 27 of the parking spaces on site are located inside the
building (as part of service reception).
Therefore, over the long term, it could be viewed that only 16 surplus
exterior parking spaces would be present at this site.
Compatibility of outdoor
storage and display with prestige office area
The proposed outdoor storage and display of vehicles, as with any large
parking area, is of some concern, particularly in relation to views from public
roads such as Victoria Park Avenue and Torbay Road. Although new vehicles are to be stored
off-site, the applicant has indicated that the proposed outdoor vehicle storage
at the site will involve ongoing display of used vehicles, as well as
demonstrators and flow through of new vehicles that are ready for pick-up by
customers. A fenced/secured area at the
rear of the site will contain the vehicle storage and service compound parking
areas as well as the majority of the employee parking.
Unlike the property to the west across Victoria Park Avenue, the
size and configuration of the subject property does not allow for expansive
landscaping (e.g. berms) along the property boundaries. The key objective with respect to the
proposed vehicle storage area at the rear of the property would be to avoid
unsightly chain-link security fences and to soften the impact of the large
parking area. The applicant has indicated that while some chain-link fencing
would be used in the interior of the site, security along the perimeter of the
site, along Torbay Road and Victoria Park Avenue, is achieved through wrought
iron gates and a combination of landscaping features such as armourstone and
bollards placed/hidden within landscaping.
In addition, the grading plan shows that much of the rear parking
area would be used for stormwater management purposes and would be below the
Victoria Park Avenue elevation with the greatest elevation difference being
approximately 0.5 metres. The grade
difference, together with the proposed perimeter landscaping (i.e. armourstone,
low hedges, and perimeter and boulevard trees) would help to soften the visual
impact of the rear parking area.
Tree
preservation and on-site landscaping
The applicant has submitted a tree inventory, which shows a large number
of healthy trees along the perimeter of the site and, under typical situations,
investigation of the opportunities for tree preservation is a key component of
the site plan review process. However,
there is a significant amount of fill on the property and the applicant has indicated
that due to the need to remove fill and re-grade the site all the existing
trees would have to be removed. A soils
report submitted by the applicant supports this conclusion.
A 3-metre landscaping strip is provided to separate the vehicle storage
compound from the public realm. The
applicant is proposing a combination of armourstone edge and shrubs as well as
deciduous trees along Victoria Park Avenue and Torbay Road frontages. In addition, conifers and evergreen materials
are proposed for winter interest at the corner of Victoria Park and Torbay
Road, at the driveway entrances and at the south end of the visitor parking
area. In addition to the deciduous trees
within the property and along the property boundary, trees would also be
provided within the Town boulevards along Victoria Park Avenue and Torbay Road.
Landscaping in the form of interlocked paving is shown on the proposed
landscape plan. Much of this paving is
located on public boulevards, particularly along Steeles Avenue and the south
portion of the Victoria Park Avenue frontage, and would have to be approved by
the Town’s Roads Department and the City of Toronto. To date the Roads Department has indicated a
willingness to accept the interlocked paving within boulevards provided the
concrete sidewalk is retained. The City
of Toronto has yet to comment on this matter.
As part of the landscaping efforts the applicant also proposes to
re-locate two bus shelters onto the subject property with enhanced waiting
areas and grant any necessary easements to the appropriate authorities (York
Region Transit and the TTC). However,
such efforts remain to be reviewed with the relevant authorities.
Applicant
is prepared to co-operate with Town to address Sanitary Sewer constraint
Engineering staff have indicated that the capacity of the downstream
local sanitary sewer system is limited and some sections of the sewer in this
general area surcharge during peak periods.
The introduction of additional sewage into the system during peak periods
may exacerbate the situation. The Engineering
Department’s 2004 budget includes funding to assess the severity of the
situation and to investigate possible solutions. The timing and the cost of any required
improvements have not yet been determined.
The applicant is proposing an expensive temporary servicing scheme that
involves the installation of a private pumping station and holding tank that
would discharge sewage into the existing sanitary sewer during off peak
periods. The expensive temporary servicing
scheme could be considered a throw-away cost for the applicant since the
proposed facility would be able to hook-up to the municipal system once current
problems have been resolved.
As discussed above, the applicant is prepared to co-operate with the
Town to apply the funds that would be necessary for a temporary system towards
the cost of improving the municipal system.
A decision on whether this approach is more desirable than allowing the
applicant to build a holding tank would be made by the Engineering Department
after completing a review of the severity of the existing situation.
As
stated above, the lands are currently designated Business Park Area in the
Town’s Official Plan and are intended to be used for high quality business
activities such as corporate offices and research facilities. The Steeles Avenue
corridor in this vicinity, inclusive of the subject property, is generally
considered a prime location for office and business park uses. The current
existence of both mature and newer office/business park development in the
area, reflected by the various companies on the north and south side of Steeles
Avenue, including various prestige computer and insurance/finance firms in
close proximity, enhances the value and prestige of the property for a
prospective office/business park employer.
The Town's supply of serviced/ready for development, vacant business
park land is constrained. Furthermore,
available lands in the area south of 14th Avenue, east of Woodbine Avenue and
west of Kennedy Road are in shorter supply.
This property presents one of the last remaining opportunities for
prestige office development in this mature, high quality business area. According to the Town's vacant land
inventory, the property is the last significant vacant office/business park
site with frontage on Steeles Avenue, along this corridor.
Economic Development staff indicate that, while current office vacancy
rates may discourage the construction of speculative office buildings at this site
in the short term, this would not preclude a large prestige single user with
build to suit needs from occupying the subject property, given its prime
location. In addition, high vacancy
rates are cyclical and expected to improve over time.
The potential loss of Business Park lands is a serious concern, and
requires consideration in a Town wide context, as well as within the context of
the character and status of this immediate area. While, from a built form standpoint the
proposed development may not be out of charcter in an area context, the loss of
prime Business Park lands and the potential for setting a precedent are
significant concerns that cannot be overlooked.
CONCLUSION
It is evident from the analysis in this report that the proposed development
is not without merit from a built form perspective. Many of the site plan matters identified in
the preliminary report and at the public meeting can be satisfactorily
addressed through development review process.
However, the loss of Business Park Lands and the potential for setting a
precedent remains an overriding concern, relative to the merit of these
applications. Accordingly, staff cannot
recommend approval of the subject applications.
FINANCIAL CONSIDERATIONS:
A
comparative tax / revenue assessment of the proposed development vis-à-vis
alternate development scenarios is provided in this report and was prepared in
consultation with the Financial Services Department.
ENVIRONMENTAL CONSIDERATIONS:
The issue with respect to the proposed tree removal at
this site has been addressed in this report.
BUSINESS UNITS CONSULTED AND AFFECTED:
The application was circulated to all Town
departments and external agencies. No
adverse comments were received.
|
|
|
|
|
Valerie Shuttleworth, M.C.I.P., R.P.P.
Director of Planning & Urban Design
|
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Jim Baird, M.C.I.P., R.P.P.
Commissioner of Development Services
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FILE PATH: Q:\Development\Planning\APPL\OPAPPS\04006802
Don Valley North Toyota\Toyota - Final Report.doc
ATTACHMENTS: Figure 1 – Location Map
Figure
2 – Area Context and Zoning
Figure
3 – Aerial Photo
Figure 4 –
Site Plan
Figure
5 – Elevations
AGENT: Mr. Mike
Everard
Augusta
National Inc.
34
Melchior Cresent
Markham,
Ontario
L3R
9A4
Tel:
905-944-9709
Fax:
905-944-9710
Cell:
416-464-0145
Figure 1
