Report to: Development Services Committee                                    Report Date: April 3, 2007

 

 

SUBJECT:                                       PRELIMINARY REPORT

                                            Dougson Investments Inc. (Nissan)/1475398 Ontario Inc. (BMW)

                                            Official Plan and Zoning By-law amendment applications to permit two additional automotive dealerships on the east side of Kennedy Road, north of Helen Avenue in South Unionville.

                                               

                                            FILES: OP.06-132776 and ZA.06-132779

 

PREPARED BY:                             Teema Kanji, ext. 4480

                                            Senior Planner, Central District

 

 

RECOMMENDATION:

That the report dated April 3, 2007 entitled “PRELIMINARY REPORT, Dougson Investments Inc. (Nissan) /1475398 Ontario Inc. (BMW), Official Plan and Zoning By-law amendment applications to permit two additional automotive dealerships on the east side of Kennedy Road, north of Helen Avenue in South Unionville (OP.06-132776 and ZA.06-132779)” be received;

 

That staff be authorized to schedule a Public Meeting to consider the Official Plan and Zoning By-law amendment applications;

 

And that staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:

As part of the original BMW applications (2001) for lands at the northeast corner of Kennedy Road and Helen Avenue, two car dealerships were proposed on lands totaling 2.2 hectares.  Staff were concerned that the proposed dealerships were not in keeping with the intended range of uses for Community Amenity Area designation of the lands.  To address these concerns, BMW replaced one of the dealership sites with a mixed use block consistent with the Community Amenity Area (CAA) designation and a townhouse component.  The application was approved on the basis that one dealership on the lands would not adversely impact the ability of the Community Amenity Area lands to function in its intended manner.  As discussed in detail in the background section of this report, there is a long history relating to the development of the existing BMW site, which includes an outstanding appeal to the Ontario Municipal Board (severance), unresolved Developers Group obligations, and lapse of site plan approval for an employee parking lot.

 

The current applications relate to lands immediately north east of the existing BMW Dealership, that are now proposed for two additional dealerships BMW (1.33 ha) and Nissan (1.53 ha) (Figure 1).  The proposed BMW lands were previously approved (2001) for mixed use and townhouses and specifically prohibited an additional car dealership.   The landowners are seeking Official Plan and Zoning By-law amendments for two additional car dealerships (a dealership on BMW lands with frontage onto Kennedy Road and a Nissan Dealership with frontage onto South Unionville Avenue) in addition to the existing BMW Dealership, which is to remain.  A future phase (20-25 year timeframe) contemplates the construction of a parking structure for each dealership and townhouse intensification of the site.  A concurrent severance application has been filed by the Owners of the proposed Nissan site to facilitate the consolidation of land to create the lot proposed to be developed with a Nissan Dealership. 

 

Issues to be addressed include finalization of outstanding matters relating to the existing BMW dealership operations; resolution and completion of the local road network; servicing, stormwater management pond, grading, tree preservation and other site plan-related requirements; buffering and relationship to adjacent residential community; and appropriateness of the proposed dealerships in the context of addressing the community amenity requirements and other policy issues within the South Unionville Community.  A public meeting should be held at this time.

 

FINANCIAL CONSIDERATIONS:

Not applicable at this time.

 

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (Environmental, Accessibility, Engage 21st, Affected Units)             6. Attachment(s)

PURPOSE:

The purpose of this report is provide preliminary information regarding Official Plan and Zoning By-law amendment applications for lands on the east side of Kennedy Road, north of Helen Avenue and to obtain authorization for staff to schedule a Public Meeting to consider the applications. 

 

BACKGROUND:

Subject lands and area context

The subject lands are located immediately east of the existing BMW Dealership north of Helen Avenue, in the South Unionville Planning District.  The subject lands are owned by 1475398 Ontario Inc. (BMW, 1.33 ha) and Dougson Investments Inc. (Nissan, 1.53 ha) and include a total land holding of approximately 2.9 ha (7.2 acres) (Figure 1).  The lands have an irregular shape with frontages on Kennedy Road, Helen Avenue, and the future South Unionville Avenue.  There are two swales located east of Kennedy Road (Figure 3). There is an existing single detached house with some mature trees along the Helen Avenue frontage of the property.  A portion of the site, immediately east of the existing BMW Dealership is being used as an employee parking lot for the BMW Dealership.  The remainder of the site is vacant with no significant vegetation.

 

Surrounding land uses include vacant lands to the north.   To the south, across Helen Avenue is a Volkswagon dealership, single detached houses and further south is Highway 407.  To the east are existing single detached residential dwellings and to the west across Kennedy Road are three existing auto dealerships (Honda, Ford, Mercedes Benz) (Figure 3).

 

Existing BMW Dealership approved in 2001 at the northeast corner of Kennedy Road and Helen Avenue

In April 2001, Council approved applications for Official Plan Amendment and Rezoning to permit an automobile sales establishment, a mixed use block and a townhouse block (26 units) on lands owned by BMW at the northeast corner of Kennedy Road and Helen Avenue. 

 

Official Plan and Zoning By-law amendments prohibited additional dealerships

The 2001 Official Plan and Zoning By-law amendments established specific development standards for the existing BMW Dealership.  This included permitting only one automobile sales establishment, with a location and maximum size equivalent to that now built for the existing BMW Dealership.  The amendments also prohibited automobile sales establishments on additional lands under the same ownership as the BMW dealership, which form part of the current applications (Figure 7).  The Official Plan and Zoning By-law amendments required these additional lands under the same ownership as the BMW to be developed with mixed uses (Kennedy Road frontage) and residential uses (north of Helen Avenue).  As part of these previous applications, the applicant presented to Council two context plans which illustrated how the remaining BMW lands could be developed in the future with abutting lands to the east (Figure 8 and 9).  Both context plans contemplated mixed uses and residential uses to reflect the Town’s intended uses for the area.  BMW is now proposing to develop these lands with a second automobile dealership, which is not consistent with previous approvals granted by Council.

 

A site plan application was also approved in 2001 by Council to permit the construction of a 3,592 m˛ (38,665 ft˛) Town & Country BMW Dealership (Figure 7).  This dealership has since been constructed and contains showrooms for new and used cars, an area for vehicle service/repair and outdoor storage of vehicles.  Site plan approval for the mixed use block and townhouse blocks was never pursued by the applicant.

 

Severance applications for the existing BMW Dealership lands have been appealed to the Ontario Municipal Board

In August 2001, the Committee of Adjustment granted provisional consent to create the three separate parcels contemplated in the earlier Official Plan and Zoning By-law amendment applications.  One parcel would be occupied by the existing BMW Dealership, and the other two parcels would accommodate mixed use and townhouse blocks (Figure 7).  One of the conditions of that severance was for the applicant to submit to the Town a certificate from the Trustee for the South Unionville Developers Group indicating that arrangements have been made to satisfy any obligations financial or otherwise, as set out in the South Unionville Developers Group Agreement.   

 

The applicant appealed this condition to the Ontario Municipal Board (OMB) but a hearing date was never scheduled.  Recently, the OMB advised that the file would be closed if they did hear back from the applicant within 30 days.  The applicant has requested that this matter be heard and a hearing date has been scheduled for April 18, 2007.  If the condition is upheld by the OMB, the applicant will have a year from the date of the Board decision to fulfill the severance conditions.  Discussions are ongoing between parties to resolve this issue.

 

Site plan approval for parking lot for existing BMW Dealership has lapsed

In November 2002, the applicant applied for a minor variance (A/197/02) to permit a temporary employee parking lot (98 parking spaces) on lands immediately east of the existing BMW dealership building.  Given the Town & Country BMW’s urgent need for additional employee parking, staff did not object to a minor variance to permit the parking lot expansion into the residentially zoned lands on a temporary basis, provided the applicant applied for a rezoning application to permit the parking lot use on a permanent basis.  In addition to other conditions, Staff required the applicant execute a site plan agreement with the Town, provide a 6 metre buffer along the eastern property line and privacy fencing on the east and south boundaries of the proposed parking area.  The conditions of approval were discussed and agreed to by the applicant’s agent at the time.

 

The Committee of Adjustment approved the parking use on a temporary basis only, for the exclusive use of the BMW employees, for a period to expire on October 31, 2003.  The applicant appealed this decision to the Ontario Municipal Board requesting the use on a permanent basis and that the additional fencing and buffering not be required.  The Board determined that the parking lot could be permitted on a permanent basis and a rezoning application was not required, but the conditions relating to buffer and fencing remained.  The applicant has not complied with the Board order. The conditions of minor variance have not been fulfilled, and include the following:

 

 

In August, 2002, the applicant obtained site plan approval for the employee parking lot (98 parking spaces) and a site plan agreement was sent to the applicant for execution in July and November 2003).  The applicant did not execute the site plan agreement and site plan approval has now lapsed.  

 

BMW is now proposing to expand the existing parking lot

The applicant has now submitted a site plan application to comply with the requirements of approval of the minor variance by the OMB.  However, the new site plan application proposes to expand the parking lot from 98 parking spaces to 195 parking spaces and extend the lot south, to Helen Avenue (Figure 10).   The Official Plan and Zoning By-law amendments approved by Council in 2001 required these lands to be developed with mixed use and the lands north of Helen Avenue to be developed with residential to be compatible with future low density residential housing development of lands on the south side of Helen Avenue.   The proposed site plan application is not in keeping with the intent of the Official Plan and Zoning By-law requirements for this site.  The use is not permitted and the appropriateness of allowing the parking lot to expand south to Helen Avenue remains to be determined.

 

Proposal for two additional automobile dealerships

The applicants are now proposing a second dealership on the BMW lands with frontage onto Kennedy Road and a Nissan dealership with frontage onto the future South Unionville Avenue, in addition to the existing BMW dealership (Figure 4).  The concept plan submitted by the applicants indicates that the development will be phased.  The initial phase would involve the construction of the two additional automobile dealerships with extensive surface parking.  The final phase (20-25 year timeline) would include the construction of a parking structure for each dealership and townhouses north of Helen Avenue and along the eastern property boundary (Figure 5).  

 

Severance to create a lot for the proposed Nissan Dealership

Dougson Investments Inc. (Nissan) and 1553204 Ontario Limited have filed severance applications to facilitate the consolidation of land to create the lot proposed to be developed as a Nissan dealership, a road right-of-way (South Unionville Avenue) and the remainder of the lands will be consolidated by 1553204 Ontario Limited to create a larger parcel (north of South Unionville Avenue) proposed to be sold to a purchaser who intends to develop these lands with Community Amenity uses (Figure 11).  1553204 Ontario Limited also owns lands on the west side of Kennedy Road occupied by Honda and Markville Ford.

 

The recommended conditions of severance require the Owners to convey a road right-of-way for South Unionville Avenue and a north/south road that connects Helen Avenue to South Unionville Avenue.  The Owners will also be required to design and construct these roads as a condition of severance.  The severance applications were heard by the Committee of Adjustment on January 24, 2007.  The applicants requested that consideration of these applications be deferred until the applicants and the Town can agree on the conditions of severance, particularly relating to the location and timing of providing the Town with a north/south road.

 

Official Plan and Zoning By-law amendments required to permit the proposed uses

The Official Plan designates the west portion of the lands which fronts onto Kennedy Road as COMMERCIAL – Community Amenity Area and the South Unionville Secondary Plan (OPA 22) designates the lands as Community Amenity Area (Figure 6).  The Community Amenity Area designation provides for a range of commercial, residential and institutional uses.  The Official Plan designates the majority of the eastern portion of the lands as URBAN RESIDENTIAL, and OPA 22 designates it as Low Density Housing, which permits single and semi-detached houses duplex and link dwellings at up to 14.8 units per hectare (6 units per acre) (Figure 7).  

 

In April 2001, Council approved Official Plan Amendment 83 (OPA 83), which permitted one automobile sales establishment (existing Town & Country BMW) involving accessory outdoor storage and/or display of vehicles, and automobile repair uses within a fully enclosed building.  The lands east of the constructed BMW are also subject to OPA 83, which only permits this portion of the lands to be used for low and medium density residential uses (detached, semi-detached and townhouse dwellings).   As mentioned earlier, a portion of these lands is now being used as an employee parking lot for the existing BMW Dealership.

 

The lands proposed to be developed with the new, second BMW Dealership are zoned Community Amenity One *140 – Hold [CA1*140(H)] and Residential Two *141 – Hold [R2*141(H)].  The lands zoned Community Amenity One specifically prohibit motor vehicles body shop, motor vehicle sales establishment and townhouse dwellings.  The lands zoned residential [R2*141(H)] are permitted to be developed with residential uses with a maximum density of 50 units per hectare (20 units per acre) (Figure 2).

 

The lands proposed for a Nissan Dealership are zoned Single Family Rural Residential (RRH) and Rural Residential One (RR1) under By-law 304-87, as amended and Residential Two – Lane Access *52 (Hold) [R2-LA*52(H)] and Residential Two *31 (Hold) [R2*31(H)] under By-law 177-96, as amended (Figure 2). 

 

Amendments to the Official Plan and Zoning By-law are required to permit automobile sales establishment, automobile repair uses and outdoor storage/display associated with the proposed automobile dealerships.  Zoning by-law amendments are required for the proposed long-term residential use on the proposed Nissan site lands, but have not been applied for at this time.

 

OPTIONS/ DISCUSSION:

The following is a brief summary of concerns/issues raised to date.  These matters, and any others identified through the circulation and detailed review of the proposal, will be addressed in a final staff report to be presented to Committee at a later date.

 

Existing Town & Country BMW Dealership

 

Proposed second BMW and Nissan Dealerships

 

Community Amenity Area required in South Unionville 

The planned function of the Community Amenity Area along the east side of Kennedy Road is to provide an identifiable node for South Unionville, comprised of a diverse range and mix of commercial, service, community, institutional, recreational and residential uses.  The area is intended to primarily serve the residents of South Unionville, with commercial uses providing for their day-to-day needs.

 

As part of the original (2001) BMW application, two car dealerships were proposed totaling 2.2 hectares.  At the time, staff indicated concern that the proposed dealerships did not “fit” within the intended range of uses for Community Amenity Area.  To address these concerns, the applicant replaced one of the dealership sites with a mixed use block consistent with the Community Amenity Area (CAA) designation.  The application was approved on the basis that one dealership on the lands would not adversely impact the ability of the Community Amenity Area lands to function in the intended manner.

 

The applicant is now proposing two additional automobile dealerships (a second dealership on BMW lands and Nissan) in addition to the existing Town & Country BMW, three in total.  If the applications are approved, the only remaining parcel available to provide a Community Amenity Area to service the South Unionville Planning Area would be east of Kennedy Road north of the future South Unionville Avenue (approximately 3.14 ha) (Figure 4).   Staff have had preliminary discussions with agents representing these lands and have been advised that they intend to develop the site with a mixed-use building.  However, no applications have been submitted at this time.  

 

Additional auto dealerships not in keeping with Markham Centre/South Unionville vision

The approval of two additional dealerships in this area, in addition to the other established dealerships would undermine the Town’s urban design objectives for the Kennedy Road corridor and the development of transit supportive and pedestrian oriented development to support the Markham Centre/South Unionville Vision.

 

Kennedy Road is a primary urban corridor and arterial road.  This section of Kennedy Road is considered a gateway location for Markham Centre and the South Unionville Community, as both a high order land use destination and focal point due to its high degree of accessibility and exposure.  Staff have met with the applicants on several occasions and indicated that this area is not considered appropriate for any additional dealerships, and the continued trend in that direction would not be supported.  Improvements, expansions and enhancements to existing automobile sales/storage sites may be considered based on merit, but new site locations are to be discouraged.

 

Amendments to permit two additional automobile dealerships would also contravene the intent of the Town’s Smart Growth initiatives.  Such an important urban corridor should be characterized by high-density mixed use development to take advantage of surrounding transit services (i.e. GO Train, future Viva alignment, future Highway 407 transit way), community uses such as YMCA, new schools and parks in the area.  The proposal does not provide significant employment, does not promote transit supportive development, and is not in keeping with Town initiatives regarding mixed land use and compact urban form.

 

Final location of stormwater management facility to be determined

There are currently two temporary stormwater management ponds located east of Kennedy Road, which were constructed as part of two draft plans of subdivision [United Castan – Markham Corporation and Abidien Inc. (Swallow’s Nest)].  Development cannot proceed on the balance of the lands east of Kennedy Road (including the applicant’s lands) prior to the construction of a permanent stormwater management facility to replace the two existing temporary stormwater management ponds.  The current proposal contemplates the entire stormwater management pond within a future park north of South Unionville Avenue. A servicing strategy for this area is required in order to address this issue, which may require a more detailed evaluation of on-site storage opportunities to minimize the size of the stormwater management pond.

 

Location of South Unionville Avenue and north/south road to be finalized

The South Unionville Secondary Plan (OPA 22) contemplates an east/west collector road known as South Unionville Avenue, extending from McCowan Road to Kennedy Road, and a north/south road which connects South Unionville Avenue with Helen Avenue.  This local north/south road is vital to the overall traffic circulation for the area because the only other connection from South Unionville Avenue to Helen Avenue is at Harry Cook Drive. The Town will require that Nissan (and 1553204 Ontario Limited) provide these right-of-ways to the Town as a condition of the proposed severances (Figure 11).

 

Applicants are not signatory to the Developers Group Agreement

A Developers Group Agreement is in place for the South Unionville Area to secure community facilities and to compensate the landowners on whose properties the community facilities are located.  The applicant will be required to be a signatory to the Developers Group Agreement, and pay their proportionate share as per the South Unionville Secondary Plan (OPA 22). 

 

Area Specific Development Charge By-law to be amended

There is currently an Area Specific Development Charge (ASDC) By-law in place for the South Unionville Area.  The Engineering Department is in the process of amending the ASDC By-law to include updated cost estimates required in the South Unionville area.  Until such by-law is amended, all development within the area will be subject to the current ASDC By-law 42A-1.

 

FINANCIAL TEMPLATE: (external link)

Not Applicable

 

ENVIRONMENTAL CONSIDERATIONS:

There are two swales located east of Kennedy Road (Figure 3).  One swale runs north/south on the BMW property and the second swale originates at Kennedy Road and extends east to the Nissan property. The subject lands are within the TRCA screening zone and this may have an impact on the proposed development.  TRCA has not provided comments at this time, but all comments will be considered in the final report.

 

ACCESSIBILITY CONSIDERATIONS:

Not Applicable

 

ENGAGE 21ST CONSIDERATIONS:

The proposed development provides for a key goal set out in “Engage 21st Century Markham” by providing lands required for the construction of South Unionville Avenue, and a north/south road that would connect South Unionville Avenue to Helen Avenue.

 

 

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Town departments and external agencies have been circulated with these applications and all comments will be considered in the final report.

 

It is recommended that a public meeting be held to receive input on the proposal, and that the applications be referred back to staff for a final report.

 

RECOMMENDED BY:

 

 

 

 

________________________                        ___________________________

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

Director of Planning & Urban Design    Commissioner of Development Services

ATTACHMENTS:

File Path: Amanda\File ZA 06-132779/Documents tab\Preliminary Report

 

ATTACHMENTS:

Figure 1:  Location Map

Figure 2:  Area Context/Zoning

Figure 3:  Air Photo

Figure 4:  Conceptual Site Plan – Initial Phase

Figure 5:  Conceptual Site Plan – Final Phase

Figure 6:  South Unionville Secondary Plan Area (OPA 22)

Figure 7:  Approved BMW Site Plan

Figure 8:  Context Plan A – presented to Council 2001

Figure 9:  Context Plan B – presented to Council 2001

Figure 10: Site plan – parking lot expansion

Figure 11: Land Ownership

 

                         

AGENT:

The Planning Partnership

c/o Rick Merrill

1255 Bay Street, Unit 201

Toronto, ON

M5R 2A9

 

Tel: (416) 975-1556

Fax: (416) 975-1580