Report to: Development Services Committee Date of Meeting: May 16, 2006

SUBJECT: Recommendation Report

Application for Site Plan Control Approval

Ruland Properties Inc. (The Remington Group)

Proposed Office Building – Honeywell Canada

Markham Centre, south side of Enterprise Boulevard

SC 06 108800

PREPARED BY: Richard Kendall, Manager of Development, Central District, Extension 6588

RECOMMENDATION:

That the report dated May 16, 2006, entitled “Recommendation Report, Application for Site Plan Control Approval – Ruland Properties Inc. (The Remington Group) Proposed Office Building – Honeywell Canada, Markham Centre, south side of Enterprise Boulevard ” be received;

That the application for site plan control approval by Ruland Properties for a 5-storey, 14,320 square metre (155,000 square feet) office building to house Honeywell Canada’s corporate offices be endorsed in principle, subject to the conditions attached as Appendix A;

That site plan approval be delegated to the Director of Planning and Urban Design or her designate, to be issued following execution of a site plan agreement. Site Plan approval is issued only when the Director has signed the site plan; and,

That Council authorize the enactment of a by-law to remove the Hold (H) provisions on the subject lands and that the H removal by-law be enacted in advance of a site plan and a subdivision agreement being executed, subject to the Owner providing an undertaking to the Town, prior to lifting the H, committing to execute a Subdivision Agreement and Site Plan Agreement to the satisfaction of the Commissioner of Development Services and the Town Solicitor.

EXECUTIVE SUMMARY:

This report recommends site plan control approval of the application by Ruland Properties (the Remington Group) for a 5-storey, 14,320 square metre (155,000 square foot) office building within their Downtown Markham project to accommodate the corporate offices of Honeywell Canada. In June, 2003, Council granted draft plan approval to the Remington Group’s comprehensive, mixed-used project ‘Downtown Markham’ project, which implements many of the Town’s objectives for Markham Centre.

The Honeywell building represents the first new office component within Downtown Markham, and the applicants have provided a concept as to how the balance of the lands within this block will ultimately be built-out, including provisions for future parking structures. The Honeywell office project is a very positive contribution to the prestige office employment base of Markham Centre, and efforts are being made to expedite approval.

While the project is consistent with the Downtown Markham precinct plan and the intent of the Markham Centre Zoning By-law, the applicant will be seeking relief from the by-law by way of minor variance to address several issues, including front yard setback and structured parking provisions. A consent application will also likely be required to create an individual development parcel for the purposes of the long-term lease and registration of various agreements.

Since the granting of draft plan approval, the Remington Group has been addressing certain technical issues associated with the conditions, prior to executing a subdivision agreement. Resolving these issues and other changes to the plan to introduce a park as the central component require amendments to the conditions of draft plan approval. These changes, which will be the subject of a future staff report, should not affect the processing of this site plan application.

In order to allow this development to proceed in advance of the developer’s group agreement being in place, the conditions of site plan control approval require the owner to provide an undertaking to the Town committing to execute a Developer’s Group Agreement and pay their proportionate share of the costs of community infrastructure and facilities relating to the Honeywell building.

The report also recommends that Council authorize the lifting of the Hold (H) in advance of the subdivision and site plan agreements being executed. This would allow processing of the application to continue through the summer recess of Council and provide for the issuance of building permits as soon as they are available. The early (H) removal would be conditional on the Owner providing an undertaking to the Town committing to execute the agreements.

The proposal will be reviewed by the Markham Centre Advisory, prior to final site plan approval, and requirements of the various commenting agencies have been included as conditions of approval.

FINANCIAL CONSIDERATIONS:

Not applicable

In June, 2003, Council granted draft plan approval to the Remington Group’s comprehensive, mixed-used project ‘Downtown Markham’. It is a project, which implements many of the Town’s objectives for Markham Centre, including protecting for the introduction of rapid transit through the centre; respecting and enhancing the Rouge River valley; providing for a internal road network; creating a series of new public spaces and urban parks, including a large, urban central park as a new focus for Town-wide activities and celebrations; and, providing for a variety of development parcels to accommodate a wide range of uses.

Downtown Markham will contribute to achieving the Markham Centre vision though the introduction of up to approximately 362,750 square metres (3,904,736 square feet) of office and business park uses, 33,755 square metres (363,348 square feet) of grade-related retail and up to 3,889 residential units in a medium to high density form.

The plan, which will be phased, anticipates an approximate 20 year plus build-out, and provides for a series of residential and mixed-use neighbourhoods and local parks. Office uses are strategically located within three large blocks between Enterprise Boulevard and Highway 407.

In July, 2004, the Markham Centre Zoning By-law (2004-196) was enacted to implement the Downtown Markham plan. This application represents another significant step in the development of Markham Centre and realizing the Town’s mixed use vision for an urban core.

Since the granting of draft plan approval and enactment of the By-law, the applicant has been working towards addressing certain technical issues associated with the conditions of draft plan approval, prior to executing a subdivision agreement. Addressing these technical issues will likely result in certain amendments to the conditions of draft plan approval, which will be the subject of a future staff report. In the meantime, the applicants are proceeding with obtaining phase one site plan approvals to be in a position to finalize building permits, once the subdivision agreement has been executed.

Project Description Including Block Build-out Concept

The applicants are proposing a 5-storey, 14,320 square metre (155,000 square foot) office building on the south side of Enterprise Boulevard, immediately east of the Motorola site, within their Downtown Markham project. The building will be oriented towards Enterprise Boulevard and a single, mid-block access is proposed off Enterprise Boulevard, opposite the Remington visualization centre. Opportunities are being explored for future shared access with the Motorola site as well as for driveway connections to the future Birchmount Road extension.

It should be noted that the applicant is seeking a second signature tenant for this building which could result in additional floors being added. This should not alter the footprint of the building, nor affect the design concept or building materials. Staff will continue to work with the applicant to ensure an appropriate building massing and level of finishes.

This building represents the first office component within this block and the applicants will be providing a concept as to how the block will ultimately be built-out, including provisions for future parking structures. The concept will outline the balance of a building programme for the lands on the south side of Enterprise Boulevard, between the Motorola site and the Birchmount Road extension. Significant potions of the site will initially be dedicated to surface parking, but consistent with the long-term parking strategy for Markham Centre, the concept will address the transition from surface to structured parking over time in concert with the building out of this 7.4 ha (18.3 acre) block.

Presently, surface parking only is proposed for the Honeywell building. Located behind a 30 metre landscaped setback, this parking is being provided at a ratio consistent with that of the new Markham Centre Zoning By-law No 2004-196 (specify ratio). The applicants are proposing this parking on a temporary basis until additional demand and office development warrants a parking structure.

Building materials consist of a mix of elements, including a precast stone base material, a combination of brick colours, spandrel glass, accented by aluminum columns and, panels on the roof (see Figure 5). The Enterprise elevation features a colonnade detail beneath a glass projection. Primary access to the building will be via a central courtyard, with secondary exits to Enterprise Boulevard and service functions to the rear of the building. In order to reinforce the Enterprise frontage the colonnade is proposed to extend in front of the central courtyard to tie-in with a future building phase to the east.

Zoning and Official Plan

The lands are designated Community Amenity Area within the Markham Centre Secondary Plan (OPA 21). The general Community Amenity Area policies in the Plan recognize a mix of residential, commercial, employment and community uses, including the proposed office building. The lands are zoned Markham Centre Downtown One MC-D1 Zone in the Markham Centre Zoning By-law, which implements the secondary plan policies and permits business offices and associated uses.

Variances / Consent will be Required

Notwithstanding the proposal is consistent with the Downtown Markham precinct plan and intent of the Markham Centre Zoning By-law, relief will likely be required to the by-law to address several issues. The by-law does not recognize the proposed colonnade in front of the building as its main wall, thereby necessitating relief to the front yard setback provisions of the by-law. The applicant’s intent to proceed initially with surface parking only, also necessitates relief to the by-law which specifies a maximum of 20 percent of the parking will be provided on the surface.

As noted, parking is proposed to be provided in accordance with the Markham Centre By-law. However, in order to address current market expectations for parking, the by-law contemplates a process whereby additional, short-term parking may be available through temporary use permission or by minor variance. A temporary by-law would be reported on separately to Council. In addition, a consent application may be required to create an individual development parcel for the purposes of the long-term lease and/or registration of various agreements.

Proceeding in Advance of a Subdivision Agreement

Draft plan approval for the Remington Group’s comprehensive 98.3 ha Downtown Markham development was granted in 2003, and since then the applicant has been working towards addressing certain technical issues associated with the conditions of draft plan approval, prior to executing a subdivision agreement. As a result of addressing these issues and other changes relating to introducing a park as the central component of the plan, amendments to the conditions of draft plan approval will be required. These amendments, which will be the subject of a future staff report, should not affect the processing of this site plan application. The conditions of site plan approval require the Owner to provide an undertaking to the Town committing to execute a Subdivision Agreement, which includes the subject lands, to the satisfaction of the Town Solicitor and Commissioner of Development Services.

The Markham Centre Landowners Group Agreement has not been Executed

In order to allow this development to proceed in advance of the Developer’s Group Agreement being in place, the conditions of site plan control approval require the owner to provide an undertaking to the Town committing to execute a Developer’s Group Agreement and pay their proportionate share of the costs of community infrastructure and facilities relating to the Honeywell building, to the satisfaction of the Town Solicitor and Commissioner of Development Services. It is noted that this project does not require a servicing allocation, and is similar to other office developments which have been expedited in Markham Centre.

Hold (H) must be Lifted

Consistent with the Markham Centre By-law, these lands are subject to a series of Hold (H) provisions relating to requirements which must be addressed including the completion of various studies, agreements and other financial obligations, prior to development occurring. In order to ensure that this building can proceed as expeditiously as possible, particularly, given the summer meeting schedule, staff are recommending that Council authorize the lifting of the (H) in advance of the subdivision and site plan agreements being executed. This would allow processing of the application to continue through the early summer and provide for the issuance of building permits as soon as they are available. The early (H) removal will be conditional on the Owner providing an undertaking to the Town committing to execute the agreements to the satisfaction of the Commissioner of Development Services and the Town Solicitor.

Markham Centre Advisory Group will Review the Proposal

This project is scheduled to be presented to the Markham Centre Advisory on June 15, 2006, to review the plans for compliance with the Performance Measures Document. Staff will work to ensure the Advisory’s comments are addressed in the final site plans and elevations, and the conditions of site plan approval contain clauses relating to the Performance Measures’ Green Infrastructure and TDM requirements, including the provision of bike racks. Key components of this proposal include connecting to District Energy and a bioswale feature within the surface parking lot to attenuate stormwater run-off.

Departmental/Agency Comments

The application has been circulated to relevant agencies and municipal departments for review and comment.

The Ministry of Transportation in reviewing this proposal has requested the applicant address the draft plan conditions, prior to proceeding with the office component. In this regard, staff note that the applicant continues to address the conditions of draft plan approval and that as a condition to site plan approval for the Honeywell building, staff require the applicant to enter into an undertaking committing to execute the subdivision agreement.

Fire Services advise that yard hydrants and a Fire Route is required, which must be designed and signed according to Town standards.

In order to provide full movement access to the Honeywell site in advance of the construction of the Birchmount Road extension or a shared access agreement with Motorola, the access drive is aligned with a temporary break in the median along Enterprise Boulevard, opposite the Remington Visualization centre. Primary site access movements would occur at this location until Birchmount Road is extended to Enterprise Boulevard, at which time full movement access would occur via a signalized intersection.

ENVIRONMENTAL CONSIDERATIONS:

This proposal will be evaluated against the Markham Centre Performance Measures. Issues of Green Infrastructure will continue to be addressed in concert with the Advisory’s on-going review of this and other applications in Downtown Markham. The project will connect to district energy.

ACCESSIBILITY CONSIDERATIONS:

There are no accessibility implications for the Town in this report.

ENGAGE 21^ST CONSIDERATIONS:

The proposal aligns with the following key Town of Markham Corporate Goals: Managed Growth, Quality Community and Infrastructure Management.

BUSINESS UNITS CONSULTED AND AFFECTED:

The applications have been circulated to applicable departments and agencies for comment, and their requirements have been included as conditions of approval.

CONCLUSION:

The Honeywell building represents a significant step in the development of Markham Centre as a truly mixed-use community, and in the Town achieving its vision of a dynamic, transit supportive, people-friendly and sustainable downtown.

RECOMMENDED BY:

________________________ ________________________

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

Director of Planning and Urban Design Commissioner of Development Services

Figure 1: Site Location

Figure 2: Area Context and Zoning

Figure 3: Aerial Photo

Figure 4: Proposed Site Plan

Figure 5: Proposed Elevations

Figure 6: Draft Block Plan

Appendix A: Conditions of Site Plan Approval

Q:\Development\Planning\Teams\Markham Centre\Coordinator\Remington\Honeywell Site Plan Recommendation Report.doc

Appendix A- Conditions of Site Plan Approval

1. That prior to final site plan approval, the Owner provide an undertaking to the Town and Trustee of the Markham Centre Developers Group committing to execute a Developer’s Group Agreement and pay their proportionate share of the costs of community infrastructure and facilities in the Markham Centre area on a pro rata basis relating to the Honeywell building prior to site plan approval to the satisfaction of the Town Solicitor and Commissioner of Development Services;

2. That the Owner revise the building elevations and site plan to address the concerns raised by staff and the Markham Centre Advisory Committee to the satisfaction of the Commissioner of Development Services;

3. That the Owner revise the site plan to comply with the applicable zoning, or shall obtain variances for relief from the setback and other requirements of the by-law, including a possible temporary use permission for additional surface parking, to accommodate the building programme, as described in this report;

4. That the Owner enter into a Site Plan Agreement with the Town, containing all standard and special provisions and requirements of the Town and other public agencies, including the specific requirements identified in the staff report, prior to site plan approval or any land severance coming into full force and effect, including providing for the following:

· That the Owner enter into an easement agreement respecting access, egress, parking and other related shared facilities to the satisfaction of the Commissioner of Development Services;

· That the Owner prepare an overall utility plan (Composite Utility Plan) to the satisfaction of the Town for this block. The plan shall comply with the approved streetscape design criteria for Markham Centre, and minimize the exposure of above grade service structure/equipment to the satisfaction of the Commissioner of Development Services;

· That the Owner provide and implement a comprehensive TDM plan which clearly identifies bike parking, carpool parking, provision of shower facilities for office staff using alternate forms of transportation and any other measures to promote alternative modes to the single occupant vehicle;

· That the Owner provide and implement a comprehensive Green Infrastructure plan which provides for connection to the District Energy network to the satisfaction of the Commissioner of Development Services;

5. That the Owner pay all applicable fees, local service contributions, Town Wide and Area Specific Development Charges and make arrangements to satisfy financial obligations related to applicable Landowner/Developers Group Agreements, prior to the issuance of permits;

6. That prior to site plan approval the Owner satisfy cash-in-lieu of parkland obligations for the office building, in accordance with the Parkland Principles for Markham Centre and pursuant to the Markham Centre Secondary Plan, to the satisfaction of the Commissioner of Development Services.

7. That prior to the execution of the site plan agreement, the Owner shall submit final drawings including, but not limited to, site plans and elevation drawings, parking layout plan, grading, servicing and engineering drawings that comply with all requirements of the Town and authorized public agencies, to the satisfaction of the Commissioner of Development Services;

8. That the Owner submit a Landscape Plan, including a detailed lighting submission, prepared by a Landscape Architect, having O.A.L.A. membership for approval by the Commissioner of Development Services, prior to the execution of the site plan agreement;

9. That the location, size and construction of all refuse storage areas and recycling facilities, and arrangements for waste collection be to the satisfaction of the Town of Markham Waste Management Department;

10. That provisions for Fire Routes, yard hydrants, Siamese connections and other emergency access requirements be to the satisfaction of the Fire Department;

11. That provision for snow storage, sidewalk alignment and maintenance be to the satisfaction of the General Manager of Operations and Director of Engineering;

12. That the Owner provide and implement a detailed stormwater management plan, including quality control measures/devices to the satisfaction of the Director of Engineering;

13. That the Owner comply with all requirements of the Town and authorized public agencies, including PowerStream and MTO to the satisfaction of the Commissioner of Development Services;

14. That the Owner participate in the enhanced hoarding programme for Markham Centre and that staff be authorized to enter into a Hoarding Agreement with the Owner;

15. That Town support for minor variances to the oversupply of parking be conditional on the parking surplus being provided on a three-year temporary basis;

16. That the Owner explore opportunities for shared access with the Motorola site and that the break in the Enterprise Boulevard median to accommodate full movement access to the Honeywell site be temporary only until Birchmount Road is extended and/or alternate arrangements are available through the Motorola site; and,

17. That this endorsement shall lapse and site plan approval will not be issued, after a period of three years commencing May 16, 2006, in the event that the site plan agreement is not executed within that period.