April 18, 2006

REPORT TO DEVELOPMENT SERVICES COMMITTEE

SUBJECT: RECOMMENDATION REPORT

Leisureworld Inc. (Hilton Suites Hotel)

Southwest corner of Highway #7 and Warden Avenue Zoning By-law Amendment Application to permit a Condominium Apartment Development

Markham Centre

CONTACT/AUTHOR: Scott Heaslip, Senior Project Coordinator,

Central Development District (ext. 3140)

APPLICATION #: File: ZA 04 012403

RECOMMENDATION:

That the staff report entitled “Recommendation Report, Leisureworld Inc. (Hilton Suites Hotel), Zoning By-law Amendment Application to permit a Condominium Apartment Development (File number ZA 04 012403)” be received;

And that the Zoning By-law Amendment application be approved and the draft Zoning By-law Amendments attached as Appendix ‘A’, be finalized and enacted.

EXECUTIVE SUMMARY:

The subject property encompasses approximately 3.84 ha. (9.5 acres) located on the south side of Highway 7, west of Warden Avenue (Figure 1). The Hilton Suites Hotel and Conference Centre, and associated surface parking, occupies the site.

The owner of the property, Leisureworld Inc., has applied to amend the Town’s Zoning By-laws to permit the redevelopment of the southern portion of the property with a condominium apartment project. The proposed development consists of two, 10 storey residential buildings, linked by a two-storey high common lobby, containing 272 units, to be located to the south of the Hilton Suites Hotel and Conference Centre on lands currently used for parking. The buildings will face onto the proposed easterly extension of Clegg Road. The displaced hotel parking and additional parking for the apartments will be provided in the proposed underground parking area. A Site Plan Control application has not yet been submitted.

The development is consistent with the objectives of the Markham Centre Secondary Plan and Guiding Development Principles, and with the Regional Centre and Corridors policies of the York Region Official Plan. It represents another step in achieving the Town’s vision of a dynamic, transit supportive, people-friendly and vibrant mixed-use downtown.

The proposed residential building heights, at 10 storeys, will be below the height of the clock tower within the hotel, at approximately 13 commercial storeys, and comply with the maximum height policies of the Markham Centre Secondary Plan. The proposed development will continue the pattern established on the Liberty lands to the west and will help to screen surface parking and the loading areas of the hotel from public view. The development will also facilitate the completion of the easterly extension of Clegg Road through to Warden Avenue.

This report recommends that staff be authorized to prepare by-law amendments for enactment by Council at the first available opportunity to incorporate the subject property into the Markham Centre By-law and zone it to reflect the existing hotel and the proposed residential development. There is currently no servicing allocation for the proposed development. Therefore, the zoning by-law will need to include a holding provision, to be removed following assignment of servicing allocation to the project, site plan approval and the submission of required supporting studies.

FINANCIAL HIGHLIGHTS:

Not applicable

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

Director, Planning & Urban Design

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

Commissioner, Development Services

Property and Area Context

The overall property encompasses approximately 3.84 ha. (9.5 acres) located on the south side of Highway 7, west of Warden Avenue (Figure 1). The Hilton Suites Hotel and Conference Centre occupies the northerly portion of the site.

The 10-storey hotel was built in 1987, and contains a variety of accessory uses such as restaurants, small personal service shops, a health club and spa facility. Since its construction, the hotel has been expanded through the introduction of long-term suites as well as conference facilities, which bring the total floor area of the buildings to approximately 48,280 square metres (519,685 square feet).

Surrounding land uses are as follows:

North - Markham Civic Centre

South - Liberty Development Corporation’s lands, which are the subject of approved applications for zoning amendment and draft plan of subdivision for a mixed-use development containing approximately 1,800 units, and approximately 25,609 square metres (275,662 square feet) of office and commercial floor area. To the south of these lands is IBM Canada.

East - Warden Avenue and vacant lands owned by Lonsmount Construction Limited and former Rak Properties respectively.

West - Liberty Development Corporation’s lands (under construction) also form the westerly boundary of the applicant’s site.

Official Plan and Zoning By-law

The property is designated “Community Amenity – Major Urban Place” in the Markham Centre Secondary Plan (OPA 21). Land uses provided for within this designation include a mix of residential, commercial, employment, and community uses. The proposed development conforms with this designation.

The property is zoned Select Industrial with Limited Commercial (M.C. 90%) by By-law 165-80. Permitted uses in this zone include a mix of office, light industrial and compatible commercial uses. The Committee of Adjustment previously approved variances to the zoning of the subject lands to allow the expansion of the hotel, and increase the density of the site to approximately 126%. In order for the proposed

development to proceed, the subject property needs to be incorporated into the Markham Centre By-law (2004-196) and zoned to reflect the existing hotel and the proposed residential development.

Servicing Allocation

There is currently no servicing allocation assigned to the proposed development. Therefore, any zoning permission for residential use at this property needs to be subject to a holding provision consistent with the Markham Centre By-law, to be removed following site plan approval and assignment of servicing allocation to the project by the municipality in consultation with the Developers Group Trustee.

Proposal

The applicant has applied to rezone the property to a Mixed Use Residential Commercial Zone to permit the further development of the property with two street related buildings facing onto the future easterly extension of Clegg Road through to Warden Avenue.

The proposed buildings will contain a total of approximately 272 condominium apartment units, which will share certain access, amenity areas and other facilities with the hotel operation. The applicant is proposing to market the project towards seniors. The buildings will be 10 storeys in height, and feature a two-storey base intended to ensure a pedestrian scale, with the ground floor of the buildings comprising lobby, amenity and common space for the residents. The two-storey penthouse will be setback from the building face, allowing for a variation in roofscape, walkouts, terraces and roof gardens. The two proposed buildings will increase the site density from the current 126% to 180%.

Parking is proposed to be located in a two level underground garage, accessed by a ramp off a future north/south street which will connect Highway 7 and the Clegg Road extension. The applicant has previously agreed to provide land towards the future construction of this road and discussions are on-going with respect to the timing of this dedication. The proposed underground parking supply will compensate for the surface spaces displaced to accommodate the proposed development , and provide parking for the residential component. At 1.2 spaces per unit (including visitor), the proposed residential parking supply (327 spaces) is consistent with the ratio in the Markham Centre Zoning By-law. The new easterly extension of Clegg Road will also incorporate limited on-street parking.

ISSUES/CONCERNS:

Proposal Conforms with the Secondary Plan

The Major Urban Place component of the secondary plan designation recognizes that the highest concentration of development and greatest variety of activities within the District will be located on lands with this designation, and that a mix of residential, commercial, employment and supporting uses will be provided, either within single buildings or within development blocks. Lands within this designation may also be used for predominantly medium or high density residential development, subject to the review and approval of a specific development proposal and rezoning.

The Secondary Plan recognizes the clock tower within the hotel, at approximately 13 commercial storeys, as the benchmark for maximum height at key nodes within Markham Centre. With a height of 10 storeys, the proposed development will be consistent with the height graduation policies of the Secondary Plan, as the buildings would transition down from the highest point along Highway #7. The proposed density of 180% in a concentrated built form would support transit and help to transform this area into a major urban centre.

The development will continue the pattern established on the Liberty lands to the west and will help to screen surface parking and the loading areas of the hotel from public view.

The development will also facilitate completion of the easterly extension of Clegg Road through to Warden Avenue. Currently the applicant leases a portion of the future right-of way (previously conveyed to the Town) for surface parking and these lands will revert back to the Town to facilitate the construction of Clegg Road. As well, this applicant’s future participation in the Markham Centre Landowners Group will be beneficial in the cost sharing of community and common facilities.

Issues identified in the preliminary report will be addressed at the site plan approval stage

The preliminary report identified a number of issues, including:

ensuring consistency with the Precinct Plan work being undertaken by Liberty Developments for the remainder of the lands between South Town Centre Boulevard, Cedarland Drive, Warden Avenue and Highway #7.
traffic and transportation issues, including access and parking supply to ensure compliance with the objectives of the parking strategy
on and off-site microclimate impacts
compliance with the Transport Canada Buttonville Airport Height Restrictions
noise impact
servicing and stormwater management

The overall design of the proposed development is generally acceptable and zoning can proceed, subject to an Hold (H). The applicant will be required to submit the necessary studies/reports (noise, servicing and traffic) and revise the plans as required to address these issues prior to site plan approval. An application for site plan approval has not been submitted.

Statistical appendix to the Secondary Plan is being monitored to incorporate proposed residential units

In processing previous applications by Liberty and Stringbridge within the Warden West Precinct, staff advised Council of changes to the statistical appendix (Appendix 1) to the Central Area Secondary Plan (OPA 21) to reflect the additional residential units and retail use generated by these developments.

Appendix I needs to be further updated to incorporate the additional 272 residential units generated by the proposed development, as follows:

Warden West District Targets
	Warden West District (as endorsed by Council on June 28, 2005)	Warden West District (revised to include Leisureworld)
Target Residential Units	2,188 high density units	2,460 high density units
Target Population @ 2ppu	4376 persons	4,920 persons
Schools	None	None
Target Retail	6,602 m²	6,602 m²
Target Employment *	394,250 m² (2x FSI) to 422,550 m² (2.5x FSI)	394,250 m² (2x FSI) to 422,550 m² (2.5x FSI)

* based on the ultimate build-out of the Stringbridge lands.

The proposed additional residential density can be supported by existing and planned infrastructure. Increased residential density at this location is consistent with the Region’s Centres and Corridors policies and is supportive of the Viva Transit initiative. It is also consistent with the objectives of the Markham Centre Secondary Plan to create a dynamic, transit supportive, people-friendly and vibrant mixed-use downtown for the Town.

No significant concerns raised at the public meeting

A Public Meeting was held on September 16, 2004 to consider the requested zoning by-law amendment. One area resident expressed concern regarding the potential for hotel guests to infiltrate into condominium parking.

Markham Centre Advisory Committee

The Markham Centre Advisory Committee reviewed the subject application on November 15, 2004. The Committee had concerns with pedestrian and open space connectivity, street animation and the amount of surface parking. The applicant subsequently revised the project plans to reduce the amount of surface parking which would be visible from Clegg Road. Further refinements will be required at the site plan approval stage. Staff will work with the applicant to refine the site plan and building elevations and will take the project back to the Advisory Committee for further review and comment prior to site plan approval.

CONCLUSION:

The proposed development is another step in achieving the Town’s vision of a dynamic, transit supportive, people-friendly and vibrant mixed-use downtown. This proposal is consistent with the objectives of the Markham Centre Secondary Plan and Guiding Development Principles, and with the Regional Centres and Corridors policies of the York Region Official Plan.

It is recommended that the attached by-law amendments be enacted by Council. The amendments:

Delete the subject property from By-law 165-80, and incorporate it into Markham Centre Zoning By-law 2004-196.
Zone the property “Markham Centre Downtown.”
Make the zoning subject to an “H” – Holding provision. The Hold would be removed upon application by the Owner once the Town has confirmed that servicing allocation has been assigned to the project and following execution by the Owner of a site plan agreement.
Incorporate site specific setback and parking provisions into the by-law to recognize the existing hotel development, which was constructed prior to the Markham Centre By-law, and was subject to previous applications for minor variance.

Official Plan and Zoning By-law

Servicing Allocation

Proposal

The requirements of applicable departments and agencies will securred in the conditions of site plan approval and the site plan agrrement.