Report to: Development Services Committee Report Date: May 6, 2008

SUBJECT: PRELIMINARY REPORT AND STATUS UPDATE

Applications for Official Plan & Zoning By-law Amendments

Markhamgate Summit (Bayview Summit Development Ltd.)

2900 Steeles Avenue East

Northeast corner of Don Mills Road and Steeles Avenue East

File Nos.: OP.07-130802 & ZA.08-110745

PREPARED BY: Sabrina Bordone, Planner – West District

RECOMMENDATION:

THAT the staff report entitled “Preliminary Report and Status Update, Applications for Official Plan & Zoning By-law Amendments, Markhamgate Summit, 2900 Steeles Avenue East, Northeast corner of Don Mills Road and Steeles Avenue East, File Nos.: OP.07-130802 & ZA.08-110745” be received;

AND THAT a Public Meeting to consider an application for a Zoning By-law Amendment submitted by Markhamgate Summit to permit a mixed-use retail, office and residential community, municipally known as 2900 Steeles Avenue East, be held when the issues identified in this report (and the Preliminary Report dated March 18, 2008) are sufficiently addressed;

AND THAT staff be authorized and directed to do all things necessary to give effect to this resolution.

EXECUTIVE SUMMARY:

Applications for an Official Plan and Zoning By-law Amendment have been submitted by Markhamgate Summit (Bayview Summit Development Limited) for 2900 Steeles Avenue East. The subject property is approximately 7.1 hectares (17.7 acres) in area and is located on the northeast corner of Don Mills Road and Steeles Avenue East.

The site currently supports a shopping centre (“Shops on Steeles and 404”), three additional commercial buildings on pads located adjacent to Steeles Avenue East, and a gas station at the northeast corner of Don Mills Road and Steeles Avenue East. The applicant is proposing a phased redevelopment of the existing mall and contemplates a comprehensively planned, mixed use development with retail, office and residential uses.

On March 18, 2008, staff brought forward to Development Services Committee a Preliminary Report regarding the Official Plan Amendment application submitted by Markhamgate Summit to permit the proposed development. In that report, staff advised that an application for a Zoning By-law Amendment was also required. One purpose of this report is to advise that a Zoning By-law Amendment application was submitted to the Town on March 13, 2008.

The March 18, 2008 report also outlined the establishment of a working group, whose purpose is to obtain input from the residents and to relay information regarding the progress of the application, and any revisions, back to the community at large. Staff are working with the local ward councillor to finalize the membership roster for this working group and are also working closely with both the local ward councillor and the applicant on the Terms of Reference. It is anticipated that the first meeting will be held in May.

On March 18, 2008 Committee asked staff to review processing options for this site, including the feasibility of passing an Interim Control By-law for the subject lands and/or incorporating the subject lands in a larger district study, which would examine aspects such as land use and built form for the area. Staff are of the opinion that neither option is necessary or appropriate and recommend that proposed development be reviewed through the normal process, the working group, and in the context of the “Lifestyle Centre” concept. Peer review expertise pertaining to the “Lifestyle Centre” concept will be sought on behalf of the Town.

Staff recommend that a Public Meeting be held to consider the application for a Zoning By-law Amendment when the issues identified in this report are sufficiently addressed.

FINANCIAL CONSIDERATIONS:

Not applicable at this time.

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

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

PURPOSE:

The purpose of this report is as follows:

i) to advise members of the Development Services Committee that a Zoning By-law Amendment application (file no. ZA.08-110745) has now been received;

ii) to respond to various suggestions, which were raised at the March 18 Development Services Committee meeting, related to responding to the applications;

iii) to outline, in greater detail, the working group process and suggested timelines; and,

iv) to provide context for a “Lifestyle Centre” review of the proposal.

BACKGROUND:

On March 18, 2008, staff brought forward to Development Services Committee a Preliminary Report regarding an Official Plan Amendment application by Markhamgate Summit to permit a mixed-use retail, office and residential development on the site municipally known as 2900 Steeles Avenue East (Figure 1).

At that meeting, staff were requested to review processing options for this site, including the feasibility of passing an Interim Control By-law for the subject lands and/or incorporating the subject lands in a larger district study, which would examine aspects such as land use and built form for the area.

Area Context

The subject property is approximately 7.1 hectares (17.7 acres) in area and is located on the northeast corner of Don Mills Road and Steeles Avenue East (Figures 2 & 3).

The subject lands are bounded by the following uses:

• To the north and west, are townhouses;
• To the south, across Steeles Avenue East, townhouses and six-storey apartment buildings in the City of Toronto; and,
• To the east, across Highway 404, employment uses.

The existing mall contains retail and office uses

The site currently supports a shopping centre (“Shops on Steeles and 404”), three additional commercial buildings on pads located adjacent to Steeles Avenue East, and a gas station at the northeast corner of Don Mills Road and Steeles Avenue East. The existing mall is enclosed and contains 22,634 m² (243,638 ft²) of retail space (Food Basics, Sears Outlet store, general retail and 3 restaurants) and 2,829 m² (30,448 ft²) of office space.

The subject site is currently served by three access locations. Two are located along Steeles Avenue East. The most eastern of these accesses is fully signalized and has full moves, whereas the western access is a right-in/right out access. The third access, located on Don Mills Road, has full moves, however, is not signalized.

Redevelopment of the site to be phased

The applicant is proposing a phased redevelopment of the existing mall and contemplates a comprehensively planned, mixed use development with retail, office and residential. The general concept of the proposal is inspired by a Lifestyle Shopping Centre model that favours an unenclosed main street shopping experience and steers away from the automobile oriented suburban mall (Figure 4).

The residential component proposes a gross floor area of approximately 157,948 m² (1,700,199 ft²), including 2,057 units. Seven, mid to high rise buildings ranging from 10 to 32 storeys in height are proposed on the periphery of the subject site abutting Steeles Avenue East and Don Mills Road. The taller buildings are proposed on the eastern portion of the site. The overall floor space index is 2.5.

The applicant is also proposing 18,990 m² (204,410 ft²) of retail space and 2,617 m² of office space. The retail/office space would be primarily along the central shopping street running east/west through the subject site, with additional retail space extending along the two entrance streets from Steeles Avenue East.

Zoning By-law Amendment application has been received

In the March 18, 2008 report to Development Services Committee, staff advised that a Zoning By-law Amendment application was required, but had not yet been received. The subject lands are zoned Community Commercial by By-law 2612, as amended. The Community Commercial zoning permits a planned shopping centre with uses ranging from hotels, offices, retail stores, restaurants and personal service shops, among other uses. A Zoning By-law Amendment is required to permit the proposed residential uses, as well as incorporate site specific development standards. A Zoning By-law Amendment application was submitted to the Town on March 13, 2008.

No servicing capacity available

As noted in the March 18, 2008 report, the residential portion of this application has not yet received servicing allocation. Following the allocation distributions to 2011 recommended in the February 5, 2008 Servicing Allocation Report, there are many residential development applications in Markham awaiting additional servicing capacity from the Region. The Region and the Town will continue to review options and timing of servicing allocation that can relate to 2012 building construction and beyond.

Studies required

As detailed in the March 18, 2008 report, the following studies are required:

• Traffic Impact Study (received and circulated to MTO, York Region, City of Toronto, and the Town’s Transportation Section)
• Functional Servicing Study
• Noise Impact Study
• Stormwater Management Study
• A review of the potential replacement/loss of retail space and the potential shift in the type of retailing that may be involved
• Phasing Plan
• Tree Inventory and Preservation Plan
• Shadow Study
• Analysis of adjacent parks and recreational uses

Staff have also requested additional information related to the following:

· Built form analysis (examination of the relationship of the proposed buildings and the existing neighbourhoods to the north, west and south). The use of an interactive 3D model of the site and surrounding neighbourhoods would be beneficial

· Potential street and block pattern (showing proposed entrances, internal circulation pattern, grouping of buildings, parking and open space)

· Views, vistas, and view terminations

· Buffer and edge treatment

· Vehicular circulation, parking, servicing and loading

· Types of parks, squares, open space and linkages to pedestrian networks (identification of pubic parks and open spaces in the neighbourhood. Understand how public space in the proposal relates to the surrounding neighbourhood)

· Improvement of Steeles Avenue (identify any ROW improvements – street trees, planters, lighting, etc.)

· Land uses at grade along Steeles Avenue and Don Mills Road

OPTIONS/ DISCUSSION:

Membership selection and Terms of Reference being reviewed for Working Group

In the March 18, 2008 report, staff advised that at a Community Information Meeting, hosted by Councillor Shapero, on February 26, 2008, area residents were given the opportunity to volunteer as members of a working group. The purpose of the Markhamgate Summit Working Group (MSWG) is to obtain input from the residents and to relay information regarding the progress of the application, and any revisions, back to the community at large. Staff plan on holding a series of 4-5 working group meetings, during the months of May - November, to review the proposal in depth with more focused discussion than the larger Community Information meeting forum permits. It is proposed that the MSWG will review the proposal, consider development options and explore urban design and development principles.

Staff are currently in the process of working with the local ward councillor to determine the membership roster for the MSWG, which will have representation from both Markham and the City of Toronto. As directed at the March 18, 2008 meeting, members from the Thornhill Sub-committee of Development Services Committee will also participate in the MSWG. In addition, staff are also working closely with both the local ward councillor and the applicant on the Terms of Reference for the working group, which is scheduled to have its first meeting in May (Appendix A). It is anticipated that the Terms of Reference, meeting topics and schedule will be finalized at this first meeting.

Interim Control By-law is not recommended

At the March 18, 2008 DSC meeting, the feasibility of enacting an Interim Control By-law for the subject lands was raised as an option to allow time for consideration of the proposal in the absence of completion of the Town-wide Growth Management Strategy, which is currently in progress. Section 38 of the Planning Act enables a council of a local municipality to enact an Interim Control By-law where the council has, by by-law or resolution, directed that a review or study be undertaken in respect of land use planning policies. The by-law may be in effect for a period of time up to one year and prohibits the use of land, buildings or structures within the defined area of the by-law for, or except for, such purposes as are set out in the by-law. The by-law could be repealed prior to the one-year period if the study and implementation have been completed. As well, the by-law can be extended for up to an additional one year in order to complete the study, if necessary.

Council has not directed a review or study to be undertaken in respect of the land use planning policies applying to the subject lands, nor does staff believe a study is necessary. The invocation of an Interim Control By-law is intended to prevent the potentially undesirable development or redevelopment of a site with a use permitted by the current zoning, during the timeframe of an initiated study. In this instance, the Community Commercial zone permits a variety of uses including hotels, offices, retail stores, restaurants and personal service shops, among other uses. The residential uses being proposed are not currently permitted. Approval of the residential component can only be granted by Council by way of an Official Plan and/or Zoning By-law Amendment. Therefore, interim control is not required to “freeze” an otherwise permitted proposal.

Larger district study unnecessary given nature of surrounding uses and other Town-initiated studies

In addition to examining the feasibility of passing an Interim Control By-law, there was discussion of incorporating the subject lands in a larger district study, which would examine aspects such as land use and built form for the area. While a larger district study could be considered, staff are of the opinion that such a study is not required, given that the surrounding uses include stable residential communities to the north, west and south, which are unlikely to redeveloped in the near future. Furthermore, the employment lands to the east, across Highway 404, will be reviewed within the context of the Employment Land Strategy, the first phase of which will be incorporated into the overall Growth Management Strategy for the Town. The Employment Lands Strategy will examine the 25 year period to 2031 (2006-2031) and will culminate in an updated policy framework for the provision and development of employment lands. In this regard, staff are of the opinion that a larger district study is unnecessary given that the surrounding uses are either unlikely to redevelop in the near future or will be considered in the context of other studies currently underway in the Town.

Staff to seek further advice regarding Lifestyle Shopping Centre concept

As previously indicated, the applicant is proposing to gradually replace and redevelop the existing mall with a mixed-use development comprised of new residential, retail and office uses. The general concept of the proposal is inspired by a Lifestyle Shopping Centre Model. This retail format steers away from the automobile-oriented suburban mall model in favour of an unenclosed main street shopping experience, which is pedestrian oriented. Lifestyle centres are typically characterized by mixed-use multi-storey buildings with residential/office over a retail base. Appendix B provides a summary of the Lifestyle Retail Tour that members of Council and staff took in May 2005. The purpose of the tour was to examine leading best practice models for retail mixed-use development by visiting examples of lifestyle centres in northern climate contexts. Emerging principles, arising from that tour, and developed with a view to having retail centres function as a community focus include:

• The centre should have direct access from, or visual relationship to a major street
• The retail focus should have a pedestrian oriented, urban ‘street’ character
• The retail layout should promote pedestrian movement and circulation loops
• Urban ‘street’ retailing should be supported by convenient curb side parking
• The centre should have public amenity focal features and facilities that accommodate programmed activities
• The centre should have a mix of national and local retailers to create a unique community destination and retail experience
• Large format retail outlets should have a restricted ground floor footprint
• The centre should incorporate a mix of uses including institutional uses, offices and residential primarily in vertically mixed use buildings
• Upper residential floors should be set back to allow retail character to dominate
• The centre should be developed with architectural consistency, high quality urban design and material treatments
• The centre should be established with a structured parking location and phasing strategy in place and parking structures implemented from the outset
• The centre should have on-site management to ensure operating and maintenance quality and facilitate programming
• Residential tenure should be flexible to evolve from rental to ownership after retail stabilization

It is staff’s intention to not only review the proposed development in the context of these principles, but to also seek expert advice regarding the “Lifestyle Centre” concept, which is fairly new to Canada and the GTA.  Sufficient funds are available in the Planning & Urban Design consulting operating account to cover a reasonable “peer review” of the proposal in the context of market retail and design principles.

CONCLUSION:

The applicant has now submitted a Zoning By-law Amendment application, to be processed along with the previously submitted Official Plan Amendment application. In addition to the normal department and agency review of the applications, the working group has been established and a series of 4-5 meetings will be held with the group through the coming months.  As well, staff will consult with the applicant and an appropriate outside expert regarding the "Lifestyle Centre" components of the proposal.  It is anticipated that a further report or Part A presentation before Development Services Committee regarding progress of the applications, will be submitted later in early September. 

FINANCIAL TEMPLATE (external link):

Not applicable.

ENVIRONMENTAL CONSIDERATIONS:

Council has directed staff to require minimum LEED silver certification for all high density residential development proposals and the applicant has been advised accordingly. As part of any future site plan approval process, staff will explore opportunities with the applicant to support sustainable development and a range of green building strategies.

ACCESSIBILITY CONSIDERATIONS:

Accessibility considerations will be reviewed as part of any future site plan approval process.

ENGAGE 21^ST CONSIDERATIONS:

The proposal promotes certain key goals set out in “Engage 21^st Century Markham” by providing for the use of existing infrastructure and compact development. Efficient and effective growth management is a strategic priority for the Town and the proposed infill development promotes effective growth management by optimizing the use of the Town’s current infrastructure.

BUSINESS UNITS CONSULTED AND AFFECTED:

The application has undergone a full circulation to obtain comments and conditions from all internal departments and external agencies.

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 and Zoning

Figure 3 – Air Photo

Figure 4 – Concept Plan

Figure 5 – Urban Plaza View Looking East

Figure 6 – Shopping Centre View Looking West

Figure 7 – Aerial View Looking East

Appendix A – Terms of Reference for Markhamgate Summit Working Group

Appendix B – Lifestyle Retail Tour Presentation (May 11-13, 2005)

APPLICANT/CONTACT:

Walker Nott Dragicevic Associates Limited

Attn: Andrew Fernacik

172 St. George St.

Toronto, ON M5R 2M7

Tel: 416-968-3511

Fax: 416-960-0172

File path: Amanda\File 07 130802\Documents\Recommendation Report