Report to: Development Services Committee Report Date: November 20, 2007

SUBJECT: RECOMMENDATION REPORT

Honda Canada Inc.

Application for Site Plan Approval to permit the construction of a corporate head office, a training facility, distribution centre and a research and development plant

11258 Woodbine Avenue

SC.07-129149

PREPARED BY: Stephen Kitagawa, Senior Planner – West Development District

RECOMMENDATION:

THAT the Site Plan application (SC.07-129149) submitted by Honda Canada Inc. be endorsed in principle, subject to the general and specific conditions outlined in Appendix ‘A’

That the Mayor and Clerk be authorized to execute a development agreement (Town, Honda Canada Inc. and Rice Commercial Group) for the construction of Street A (Honda Blvd.) and associated infrastructure by the Rice Commercial Group, as set out in the report.

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

EXECUTIVE SUMMARY:

The subject property is approximately 21 hectares (51.89 ac.) in area and is located north of Elgin Mills Road, adjacent to Highway 404, and with frontage on Woodbine Avenue.

The proposed 41,811 m² (450,064.5 ft²) development will include three independent, but interconnected buildings, 1,024 parking spaces (19 handicapped) and 17 loading docks, all arranged in a campus setting. The building components feature a four-storey corporate head office, a single-storey technical building and a distribution warehouse.

A by-law was passed in June 2007, zoning the lands to Business Park (Hold) [BP(H)] with a Holding provision appended to the zoning. The Holding provision will not be removed until studies relating to the site plan approval have been submitted to the satisfaction of the Town. The lands are zoned Business Park, by By-law 177-96, as amended. The proposed development complies with the zoning provisions.

Construction access is currently from Woodbine Avenue. Access to the site will ultimately be from a new north-south collector road (Honda Blvd.) connecting to a section of the Woodbine Avenue By-pass. Construction and dedication of Honda Blvd. and the By-pass by the Rice Commercial Group will be timed to precede the occupancy of the Honda buildings. The financing and construction schedule of the Woodbine Avenue By-pass is being finalized. In addition to the submission of the required studies, the Holding provision on the zoning ensures that the applicant and Rice Commercial Group enters into a development agreement with the Town for the construction of Honda Blvd. and associated infrastructure, and a tri-party agreement (or other financial arrangements to the satisfaction of the CAO and Town Solicitor) relating to the completion of the Woodbine Avenue By-pass. The Development Agreement and Tri-party Agreement (or other suitable arrangements to the satisfaction of the CAO and Town Solicitor) must be executed prior to the execution of the site plan agreement. This report also requests Development Services Committee’s authorization to execute a development agreement for the construction of Honda Blvd. and associated infrastructure.

Honda’s campus proposal includes a number of Leadership in Energy and Environmental Design (LEED) initiatives which will improve the building’s performance and result in an efficient facility for occupants, a more economical building to operate and reduced environmental impacts. Honda intends to register the project with the Canadian Green Building Council with a goal of receiving a LEED Gold Certification.

The office building is faced with clear anodized aluminum, spandrel glazing with metal sun shades. The training and distribution areas are faced with insulated metal panels, precast concrete panels, brick and vision glazing. Staff are satisfied with the positioning of the building and the proposed elevations.

The overall stormwater management strategy was conceived with the goal of minimizing the reliance on downstream end-of-pipe storm water management ponds. The proposal includes recycling roof run-off to irrigate the landscaping and a system of bio-swales to improve groundwater recharge.

FINANCIAL CONSIDERATIONS:

Not applicable.

1. Purpose 2. Background 3. Discussion 4. Financial 5. Environmental

6. Accessibility 7. Engage ^21st 8. Affected Units 9. Attachment(s)

PURPOSE:

This report provides background information and recommends site plan endorsement, subject to conditions, for a corporate head office, a training facility, distribution centre and a research and development facility north of Elgin Mills Road, west of Woodbine

Avenue, at the property municipally known as 11258 Woodbine Avenue in the 404 North Planning District.

BACKGROUND:

The subject property is approximately 21 hectares (51.89 ac.) in area and is located north of Elgin Mills Road, adjacent to Highway 404, and with frontage onWoodbine Avenue, in the 404 North Planning District, as shown in Figure 1. The western portion of the site is rectangular with a 30 metre wide strip extending east to Woodbine Avenue.

Across the northern edge of the subject property, running in an east-west direction, is the Trans Canada Pipeline easement. There is an Ontario Hydro Corridor easement running in a roughly north/south direction across the 30 metre wide strip, just west of Woodbine Avenue.

Adjoining the property to the south and east, across Woodbine Avenue are agricultural lands. To the west, across Highway 404, are lands within the Town of Richmond Hill designated Rural Residential and Open Space and planned for Medium Density Residential. To the north is Fletcher’s Field Rugby Stadium and lands presently being used for open storage.

Proposal for an industrial/office building

The proposed 41,811 m² (450,064.5 ft²) development will include three independent, but interconnected buildings, 1024 parking spaces (19 handicapped) and 17 loading docks, all arranged on a campus setting (see Figures 4 and 5). Adjacent to the east yard is a slow pitch softball diamond and soccer pitch. The building components feature a 12,860 m² (138,428.4 ft²) four-storey corporate head office, a 8,130 m² (87, 513.4 ft²) single-storey technical building (housing Honda’s Canadian research and development department, quality engineering department, training centre and the mechanical central plant), and a 20,821 m² (224,122.7 ft²) distribution warehouse. There are 14 loading spaces for the parts and distribution centre and 3 loading spaces for the office and technical operations building. The 14 loading spaces adjacent to Highway 404 will be screened with enhanced landscaping and a berm.

Official Plan

The Highway 404 North Planning District Secondary Plan (OPA 149) was adopted by Council in April 2006, and approved in part, save and except for the lands and policies that are subject to appeal by the landowners of 2705 19^th Avenue. A settlement has been reached, however, it is subject to Ontario Municipal Board approval. The settlement ensures that any development within the Secondary Plan area will not preclude the following for the landowners of 2705 19^th Avenue:

• Direct access from the proposed internal road system
• Access to the proposed municipal servicing systems
• Sufficient design capacity within the proposed municipal servicing systems

Although the north/south collector road (conceptually shown in the Secondary Plan) roughly in the middle of the Honda lands has not been provided, this will not preclude the development of or access to, the subject property or other properties in the Secondary Plan area.

The Highway 404 North Planning District Secondary Plan designates most of the subject lands “Business Park Area” except for a 30 metre wide strip of land, proposed to be used for a temporary construction access to Woodbine Avenue, which is designated Business Corridor and Transportation and Utilities. Once access is available from Honda Blvd., the ownership of the 30 strip will be transferred back to the Rice Commercial Group. To develop the 30 metre strip, it will have to be combined with the adjacent lands.

The Business Park Area category applies to office/industrial business parks characterized by development displaying high design standards including corporate head offices and research facilities. The visual attractiveness and consistent image of such areas is of prime importance.

Uses provided for within the Business Park Area designation include light industrial, research, training, office and other similar uses consistent with the planned function and policies of the category of designation.

The proposed industrial and office building complies with the planned function of the Business Park Area category.

OPTIONS/ DISCUSSION:

Zoning By-law passed in June 2007

In April 2007, the Rice Commercial Group submitted an application to amend the Town’s by-laws to rezone the subject lands from Agriculture One (A1) and Rural Residential Four (RR4) to Business Park Area (BP). In June 2007, the by-law was passed with a Holding provision appended to the zoning. The Hold provision will be removed when the following are completed:

• Execution of a site plan agreement.
• Execution of a development agreement (Town, Honda Canada Inc. and Rice Commercial Group) which will include provisions ensuring the construction of Honda Blvd and associated infrastructure.
• Execution of a tri-party agreement (Town, Region and the 404 North Developers Group) ensuring the completion of the final phase of the Woodbine Avenue By-pass or other financial arrangements to the satisfaction of the CAO and Town Solicitor.
• Honda Canada Inc. enters into a developer’s group agreement with the other owners in the 404 North Secondary Plan area to address the sharing of the common costs of development.
• The required studies, noted below, have been submitted to the satisfaction of the Town.

The Secondary Plan also provides for the preparation for approval by the Town of a number of studies, reports and plans that will be used to determine in greater detail the necessary requirements and controls to permit development to proceed within the Planning District.

The following studies are required for final site plan approval and Hold (H) removal for the proposed development:

• Site specific Traffic Impact Study (submitted and being reviewed)
• Well Monitoring Program (awaiting submission)
• Functional Servicing Report (awaiting submission)
• Stormwater Management Report (submitted and being reviewed)
• Phase 1 Environmental Site Assessment (submitted and being reviewed)
• Noise and Vibration Report (awaiting submission)
• Tree Inventory and Conservation Plan (submitted and being reviewed)
• Archaeological Assessment (submitted and approved)

The applicable findings and requirements will be incorporated into the site plan agreement.

Agreements for construction of Woodbine Avenue By-pass and Honda Blvd.

The applicant is proposing to use the 30 metre wide parcel of land as an interim construction access to Woodbine Avenue until the permanent access through the new road network can be constructed, prior to occupancy. The permanent access will be from a north-south collector road (Honda Blvd.) which will be extended south to intersect with the extension of the Woodbine By-pass. Honda Blvd. will cross three properties: 11258 Woodbine Avenue (the Honda lands), 11160 (Rice Commercial/11160 Woodbine Ltd.) and 11050 Woodbine Avenue (Vetmar). Once access is available from Honda Blvd., the ownership of the 30 strip will be transferred back to the Rice Commercial Group. To develop the 30 metre strip, the lands will have to be combined with the adjacent property.

To expedite and facilitate the construction, conveyance and dedication of Honda Blvd., Vetmar/11050 Woodbine Avenue is conveying a required 0.7 ha (1.73 ac.) parcel of land to the property owner to the north (Rice Commercial/11160 Woodbine Avenue). Once the land for the right-of-way have been conveyed, the lands will be combined with the entire road allowance for Honda Blvd and it will be constructed by Rice Commercial Group/11160 Woodbine Avenue and conveyed to the Town via reference plan.

To ensure that Honda Blvd. is constructed, a Holding (H) provision was appended to the zoning requiring the applicant to enter into a development agreement (Honda Canada Inc., Rice Commercial Group and Town) providing for construction by or on behalf of the ower. The development agreement will specify a time line for the completion of the road construction and ensure the Rice Commercial Group constructs and pays for Honda Blvd. This report recommends that Development Services Committee authorize the Mayor and Clerk to execute the development agreement.

The Woodbine Avenue By-pass will be extended to intersect with the future Honda Blvd. A tri-party agreement between the Region, Town and the 404 North Developer’s Group is required to advance the construction of the final phase of the Woodbine Avenue By-pass which will allow for access to Elgin Mills. Detailed conditions for the construction and completion of the Woodbine Avenue By-pass will be set out in the tri-party agreement. The Mayor and Clerk were authorized to execute the tri-party agreement for this final section (from the north end of the Cathedral Community to Woodbine Avenue) of the Woodbine Avenue By-pass at the June 26, 2007, Council meeting.

Trans Canada Pipeline

TransCanada Pipelines Limited (TCPLL) operates three high-pressure natural gas pipelines within its right-of-way adjacent to the north property line. The applicant is required to demonstrate that requirements of TCPLL have been, or will be, met prior to final development approval by the Town. TCPLL is regulated by the National Energy Board which, in addition to TCPLL, has a number of requirements regulating development in proximity to the pipelines. This includes approval requirements for activities on or within 30 metres of the right-of-way.

All crossings of TransCanada’s right-of-way by roads, access ramps, trails or pathways, and above or below ground services and utilities, must have TransCanada’s authorization. The future east-west industrial collector road conceptually shown in the Secondary Plan at the north end of the subject property, will require the approval of TCPLL. Any conditions forwarded to staff will be incorporated into the site plan agreement.

TCPLL has requested that the applicant revise the site plan with respect to the turning circle at the north end of the subject lands which crosses the TCPLL easement.

Ministry of Transportation

The Ministry of Transportation requires submission for Ministry permits and approval of the site illumination plans, Stormwater Management report, Traffic Impact Study, Site Servicing and Grading Plans.

Hydro One Network approval required

The Hydro Electric Power Corridor crosses the 30 metre wide temporary access to Woodbine Avenue. Approval by Hydro One Network is required for the proposed temporary access across the Hydro corridor.

Region of York

The Region of York’s conditions will be incorporated into the site plan or site plan agreement.

Servicing proposed to come from the Cathedral Community

The necessary municipal water and sanitary sewers are proposed to be provided to the subject property according to the requirements and policies of the Secondary Plan. These services are to be extended from the Cathedral Community, located south of the Highway 404 North Planning District. Depending on the timing of the extension of the Woodbine Avenue By-pass into the Highway 404 North Secondary Plan area, municipal services will be provided to the property line from Honda Blvd. as part of the land development by Rice Commercial Group.

Should this development require the use of interim servicing measures prior to the completion of the construction of municipal services to the site, appropriate technical and engineering submissions will need to be made to detail the proposed interim systems and to protect for and accommodate the ultimate servicing schemes as contemplated by the Secondary Plan.

Urban Design

The office building is faced with clear anodized aluminum, spandrel glazing with metal sun shades. The training and distribution areas are faced with insulated metal panels, precast concrete panels, brick and vision glazing.

Staff have been working with the applicant on the building elevations. Staff had requested:

· Additional vision glazing on the west elevation of the office building and for the exterior walls of the staircase towers.

· More substantial sun shades on the office building to project a stronger visual element and extend them to the glazed areas of the west elevation.

· Enhanced landscaping along the east wall of the parts and distribution building.

The applicant indicated that the glazing design as proposed is consistent with the program components (LEED) and designed to mitigate solar heat gain. Glazing is minimized on the west, east and on the south elevations to meet LEED requirements. Exterior wall glazing ratios have been designed to optimize the building energy performance.

The applicant also indicates that sun shades are designed for the adequate shadow depth ratio. An increase in depth would require additional structural bracing. Sun shades have only been provided on the south elevation of the office building. Extending them onto the west and east elevations would not provide any functional value due to the low sun angle. The design strategy for the east and west elevations was to mitigate heat gain.

The applicant indicates that they plan on expanding the building within two years of the move in date. Concerns were expressed by the applicant with respect to any permanent landscape installation along the east wall. The applicant is working with the Urban Design Section and has agreed to provide low shrubbery and tall grasses.

Staff are satisfied with the positioning of the building and the elevations.

Honda’s campus includes a number of LEED initiatives

Honda’s campus proposal includes a number of Leadership in Energy and Environmental Design (LEED) initiatives. These include design measures to dramatically improve the building’s performance and result in an efficient facility for occupants, a more economical building to operate, and provide an attractive rate of return and a concrete example of Honda’s commitment to a sustainable environment. The Town encourages the use of green technologies and best practices in support of sustainable community and building design and applauds Honda’s approach. The following are some of these initiatives:

• Re-naturalization of portions of the site
• Rainwater harvesting
• Use of “white”, energy star compliant roofing systems for reduction of heat island effect
• Extensive use of local and re-cycled materials in construction
• Uses of extensive subsurface bio-filter systems for stormwater management to improve site water balance and dramatically reduce its dependency of off-site treatment facilities (see section below for description)
• Energy efficient and non-polluting site lighting design
• Water saving low flow plumbing fixtures
• Increased thermal resistance of the building envelope
• Under-floor air distribution for displacement ventilation and individual control
• Daylight harvesting and energy efficient interior lighting systems
• Campus centralized mechanical plant and high performance building control system.

Honda intends to register the project with the Canadian Green Building Council with a goal of receiving a LEED Gold Certification.

Campus serviced by a stormwater management system which promotes source controls and infiltration

The campus will be serviced by a storm drainage/stormwater management system which promotes source controls and infiltration. Storm runoff will be captured and conveyed by a series of shallow inlets and granular biofilters to storm sewers which will convey controlled flows to a central stormwater management facility off site.

A component of the stormwater management system collects runoff from the roof-top on the Parts Distribution Centre and stores it for re-use as a supply for the irrigation system. Water from the roof-top area is relatively clean. The system is comprised of a series of underground pipes that store water beneath the surface of the recreational field area.

The entire parking lot area is captured and conveyed using a network of bio-filters. The bio-filters are essentially gravel filled galleries that attenuate runoff and encourage infiltration into the underlying soils. The bio-filters provide both quantity capture and quality enhancement. Set beneath the islands in the parking lot, the surfaces of the bio-filters are landscaped with trees, shrubs and grasses to enhance the visual scale of the parking lot area.

Porous pavement in the form of precast concrete pavers is integrated into the design of parking lots. Porous pavement pads are strategically located to intercept and infiltrate runoff from hard surface areas, complementing the function of the bio-filters.

A portion of the stormwater conveyance system has been designed with an emphasis on minimizing the use of in-ground sewers and utilizing overland flow and vegetated swales. The vegetated swales serve to moderate flow rates while providing water quality benefits through infiltration and absorbtion of pollutants.

In order to moderate the rate of storm water flow from the site to the receiving off-site storm water management system, an overflow attenuation area is incorporated into the landscape plan. The shallow basin is designed to store excess runoff from roof top surface areas and slowly release the stormwater either into the rainwater storage/irrigation facility (as described above) or into the storm sewers on the adjacent roads

In addition to the above, the landscape plan permits an expressive naturalized area which will enhance evapo-transpiration while providing habitat benefits for birds and wildlife.

404 flyover will not impact Honda lands

Town staff met with the Region of York in August 2007, and it is understood that any future flyover of Highway 404 has no bearing or impact on the Honda lands. A feasibility study would only impact the Rice Commercial property (11160 Woodbine Avenue).

In 1996, Heritage Markham approved the demolition of two dwellings on site

In August 1996, Heritage staff conducted a site visit and determined that the two heritage dwellings on site were not salvageable. Heritage Markham had no objection to the demolition of the dwellings by an earlier owner of the property.

The current applicant is requested to commemorate the former dwellings with an interpretive plaque in a publicly visible location, as part of the development of the property.

CONCLUSION:

Staff recommend approval, subject to the general and specific conditions outlined in Appendix ‘A’ to this report.

FINANCIAL TEMPLATE (external link):

Not applicable at this time.

ENVIRONMENTAL CONSIDERATIONS:

The TRCA has requested the applicant submit for their review, prior to final approval, an Environmental Management Study, Stormwater Management report, Hydrogeological assessment and additional information and design parameters of the LEED certification.

ACCESSIBILITY CONSIDERATIONS:

The site plan shows a total of 19 parking spaces for the physically handicapped all located close to the main entrance of the office building.

ENGAGE 21^ST CONSIDERATIONS:

Economic Development

The proposal is consistent with a key goal set out in “Engage 21^st Century Markham” with respect to Economic Development. The proposal, which will result in the completion of an industrial/office development, establishes, promotes and supports Markham as the best location for diverse high-tech and related businesses.

Industrial development plays a key role in achieving many of the economic development objectives set out by the Town. These include the expansion and diversification of the Town’s economic base and the maintenance of the fiscal health of the community through the development of non-residential lands.

BUSINESS UNITS CONSULTED AND AFFECTED:

The application was circulated to all Town departments and external agencies, and their recommendations/comments have been incorporated into this report.

RECOMMENDED BY:

________________________ ___________________

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

Director, Planning & Urban Design Commissioner, Development Services

ATTACHMENTS:

Figure 1 – Location Map

Figure 2 – Area Context

Figure 3 – Arial Photograph

Figure 4 – Site Plan

Figure 5 – Elevations

Figure 6 – Elevations

Figure 7 – Elevations

APPLICANT/AGENT:

Gagnon, Law, Bozzo Urban Planners Ltd.

Attn: Jennifer Bozzo

21 Queen Street East

Suite 500

Brampton, ON

L6W 3P1

File path: Amanda\File 07 129149\Documents\Recommendation Report

Appendix ‘A’

SITE PLAN CONDITIONS

1. THAT site plan approval be delegated to the Director of Planning & Urban Design or her designate, to be issued following the execution of a site plan agreement. Site plan approval shall be issued only when the Director has signed the site plan “approved”.

2. THAT the owner will enter into a site plan agreement with the Town of Markham containing all standard and special provisions and requirements of the Town and public agencies, including:

a) Provision for payment by the applicant of all applicable fees, recoveries, and development charges;

b) Provision for satisfying all requirements of the Town’s Departments and external agencies, including the Regional Municipality of York Transportation and Works Department, Hydro One, Ministry of Transportation and Toronto and Region Conservation Authority;

3. The Owner covenants and agrees to commemorate the two Heritage Buildings previously situated on the subject property (which were not salvageable, and were removed with Town permission by a previous owner of the property), with an interpretive baked enamel plaque.

4. THAT the site plan agreement and final plans reflect the environmental and Leadership in Energy and Environmental Design (LEED) initiatives proposed by the applicant in order to register the project with the Canadian Green Building Council;

5. THAT the Developers Group Agreement, Development Agreement and Tri-party agreement (or other suitable financial arrangements to the satisfaction of the CAO and Town Solicitor) be executed prior to the execution of the site plan agreement;

6. THAT this endorsement shall lapse and site plan approval will not be issued, after a period of three years commencing November, 2007, in the event that the site plan agreement is not executed within that period.