COUNCIL AGENDA REPORT

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1 COUNCIL AGENDA REPORT Meeting Date: 8 September 2015 Subject: Boards Routed Through: South Point Commercial and Residential NSPs Municipal Planning Commission Date: 20 August 2015 Issue: Council is being asked to give three readings to: 1. Bylaw No. B-04/2015, which would amend the South Airdrie Area Structure Plan; 2. Bylaw No. B-05/2015, which would enact the newly created South Point Commercial Neighbourhood Structure Plan; and 3. Bylaw No. B-06/2015, which would enact the newly created South Point Residential Neighbourhood Structure Plan. Background: Vesta Properties, the owner of the subject parcels, is applying for the creation of two Neighbourhood Structure Plan (NSP) documents one commercial and the other residential that are situated adjacent to each other. Both plans fall within the South Airdrie Community Area Structure Plan. I. Aligning South Airdrie ASP with the Airdrie City Plan The Airdrie City Plan identifies the proposed commercial NSP area as Commercial/Mixed Business, and the residential NSP area as Residential (see Figure 2), and therefore amendments to the City Plan are not required. The subject lands are both part the South Airdrie Area Structure Plan (ASP) and are designated as Light Industrial in this plan. As a result of the changes made to the land designations in the 2014 Airdrie City Plan, the land use portion of the South Airdrie ASP would need to be amended to reflect the new designations, regardless of the application under consideration. The change from an Industrial land designation to Commercial and Residential was made due to the changing dynamics surrounding the area. The most significant event was the approval of the Hillcrest neighbourhood in 2009, which

2 changed the character of the area from non-residential to residential. The area east of Hillcrest and west of the CPR line (the South Point Residential NSP area) became isolated and too small to establish large industrial parcels, and as such, changing this area to residential became a more logical transition. For the area adjacent to Highway 2 and east of the CPR line, the area was transitioned from Industrial to Commercial/Mixed Business because of changing land values, proximity to residential and availability of highway exposure. Figure 1: Vicinity Map Showing Subject Area and Surrounding Land Use Bylaw No. B-04/2015, the South Airdrie Area Structure Plan amendment, would bring the South Airdrie ASP into conformity with the Airdrie City Plan. The main modifications in the ASP would occur in the figures and the land use tables. The change required to align with the City Plan is depicted in Figure 7: Development Map, which shows the two proposed NSP areas changing from Light Industrial to Commercial on the east side of the CPR line and from Industrial to Residential west of the CPR line and east of Hillcrest (refer to Figure 2).

3 Figure 2: Subject Area in the Airdrie City Plan Figure 3: Current and Proposed Land Use within the South Airdrie ASP

4 II. Commercial Plan Proposal: South Point Commercial NSP The South Point Commercial Plan area consists of 76.7 gross acres and is located south of Sierra Springs Commercial Centre and is bound by the Canadian Pacific Rail (CPR) line to the west, future 40 th Avenue to the north, Highway 2 to the east, and Nose Creek to the south (see Figure 4). The proposed commercial lands are currently used for agricultural and livestock pasture and do not have any permanent structures onsite. The land is zoned Urban Holding (UH) District and currently accommodates a corral and feed structure at the southern portion of the parcel. The land includes three Class III wetlands, as identified by a Biophysical Impact Assessment (BIA). The Nose Creek corridor extends through these lands including some portions that have been re-aligned and channelized along the west edge of Highway 2 until the creek rejoins its natural course along the southern edge of the property. The applicants are proposing to develop 48 net acres (17.03 hectares) of Regional Commercial uses which would include medium to large format commercial services and retail development which would function as an extension of the commercial uses located to the north of this site in the Sierra Springs development. The applicant is proposing to develop an auto-oriented development supporting large footprint buildings along with smaller support retail, restaurants and services. The anticipated floor area ratio (FAR) within the development will range from 0.2 to 0.4 and will provide between 40,000 to 80,000 sf of commercial development. III. Residential Plan Proposal: South Point Residential NSP The South Point Residential NSP is located to the west of the commercial area and is bound by the Hillcrest neighbourhood to the west, the future 40 th Avenue corridor to the north, the CPR line to the east, and agriculture/pasture lands to the south (see Figure 5). It consists of 70.4 gross acres. The proposed residential lands are currently vacant and devoid of structures. Until a few years ago, the site had a temporary recreational vehicle (RV) storage facility located on the northern half of the parcel which is currently zoned as Direct Control District Eighteen (DC-18). The rest of the parcel in the southern portion is zoned UH. The applicant is proposing to develop acres (15.70 hectares) of residential development consisting of a low density residential, medium density (predominantly townhomes) and high density apartment type units. The proposed dwelling unit count is 608 units with a net residential density of 9.01 upa (22.26 uph). IV. Plan Review: South Point Commerical NSP The South Point Commercial NSP (Bylaw No. B-05/2015) proposes to create a future regional retail centre south of the existing Sierra Springs commercial area. Approximately 42 net acres would be dedicated as commercial parcels.

5 Land Use: The proposed land uses consist primarily of commercial most likely in the form of highway-oriented regional retail. The balance of land will be public area, including the Environmental Reserve (ER) surrounding the creek and the Public Utility Lot (PUL) that surrounds the stormwater pond. A breakdown of land uses is summarized in Table 1. Table 1: Commercial NSP Land Use Summary Municipal Reserve: Since the applicant is applying for two NSPs simultaneously, there is a unique opportunity to transfer MR credit from one NSP area to the other. The applicant is proposing to transfer the full 10% MR dedication from the commercial NSP area to the residential area, which equates to 12.5 acres of park space, school area and an offleash dog park. Without the extra dedication, only 6.75 acres would be dedicated to MR (4 acres of which would be used for the school site). Rather than contributing cash-inlieu or establishing MR in the commercial NSP area, the applicant is proposing to locate the MR in the adjoining residential neighbourhood where it would provide more accessible parks and open space. Servicing Concept: A stormwater facility would be constructed in the southwest portion of the site and would serve both the South Point Commercial and Residential NSP areas. Stormwater runoff will be directed to the South Point pond and will provide a controlled maximum discharge of 71.3 L/s into Nose Creek. Transportation and Site Circulation: A key component of the plan is the proposed circulation, which would be developed in the interim and ultimate phases. The interim phase includes Main Street being extended southward to a central traffic roundabout. The roundabout is essentially a cross-road for the commercial NSP area, as it is proposed to provide a connection from Main Street to 40 th Avenue via South Point Landing. An interim on-ramp is also proposed as an outlet for southbound traffic on Highway 2. At ultimate build-out, this ramp will likely be replaced by a southbound on-ramp coming off of 40 th Avenue. The ultimate build-out phasing would include 40 th Avenue being extended eastward and bridging over Main Street and Highway 2, eventually connecting to Sharp Hill Way in King s Heights. Within the NSP project area, a southbound highway ramp would be constructed from 40 th Avenue. The location of this future ramp will interfere with a stretch of the existing Nose Creek alignment that runs along the western edge of the Highway 2 right-of-way (ROW). The construction of the highway on-ramp will make it

6 necessary to re-position Nose Creek to the west and a new ER area would need to be established. This, in turn, would ultimately affect the commercial parcel sizes. Figure 4 and Table 1 reflects the ultimate land use scenario proposed for the commercial NSP area. Because the 40 th Avenue road-widening project extends into the applicant s parcels, the City has entered into an agreement with the applicant to front-end some major infrastructure improvements. This includes connecting Main Street to 40 th Avenue, along with extending main service lines southward down Main Street and ultimately under the CPR line westward. To achieve this, Vesta is currently providing the City with earth from the proposed residential NSP parcel to construct the embankment that would extend 40 th Avenue over the CPR line, and ultimately over Main Street and Highway 2. Pedestrian Connectivity and Circulation: A regional pathway is planned to connect with an existing pathway running along Nose Creek to the north of the site. Because of the future 40 th Avenue interchange, the pathway would need to run within the right-of-way along Main Street and re-join the creek corridor in the south of the site. Biophysical Assessment: A Biophysical Assessment was conducted on the site in The most significant feature on the property is the Nose Creek corridor. The habitat area was identified in the Ecological Inventory and Expansion and Environmental Best Practices Report prepared by O2 Planning + Design (O2 report). The habitat loss resulting from the development will involve primarily non-native grassland, but will also include disturbed habitat, low-shrub grassland and wetland. Effects on the regional ecosystem are expected to be low to moderate. Historical Assessment: A historical Resources Impact Assessment was undertaken in June 2015 by Bison Historical Services. The report suggested that no further study was required, with the exception of one site near the creek in the southern portion of the site, where it was recommended that deeper excavation take place. Speargrass Historical Resources was hired to perform the excavation and nothing of significance was reported resulting in historical clearance for development. Master Site Plan Requirements: The applicant intends to follow up with a land use amendment application for the commercial NSP, pending approval of the new NSPs. Typically, for a developer to apply for Regional Commercial District (C-3) zoning, a Master Site Plan for the retail development is required. However, in order for road and deep service construction that would connect Main Street to 40 th Avenue to move forward, it is necessary to first have land use in place before the developer can enter into a Subdivision Servicing Agreement (SSA) with the City. Planning has advised the applicant that only land use west of Main Street within the commercial NSP should be applied for (without a Master Site Plan) in order for road and servicing construction to move forward. The developer would not be allowed to build within the commercial parcels at this time. After the design for the 40 th Avenue Highway 2 interchange is finalized (which would definitively set the commercial parcels and creek ER on the east side of Main Street) Planning would

7 accept a land use application, along with an accompanying Master Site Plan for the remainder of the site (i.e. lands east of Main Street). Figure 4: Proposed South Point Commercial NSP Concept

8 V. Plan Review: South Point Residential NSP The South Point Residential NSP concept plan (shown in Figure 5) proposes to create a 600-unit development consisting of single family homes, semi-detached homes, townhomes and apartments. Figure 5: Proposed South Point Residential Concept

9 Housing Mix: There is policy in the NSP document stating that multi-family housing (townhomes and apartments) cannot exceed 60% of the total housing stock, and a minimum of 25% must be single family homes. The bulk of the medium and high density housing would be located at the northern portion of the plan area, close to 40 th Avenue. The applicant is also proposing innovative or cluster housing which would surround the southern public park. The applicant wishes to apply a Comprehensively Planned Residential District, which is being contemplated for Airdrie s revised Land Use Bylaw (scheduled to go into effect in early 2016). Under this District, the developer of these sites would need to provide a Master Site Plan when applying for land use and would need to demonstrate that the housing and site layout is innovative enough that it does not fall under any other residential land use district. The proposed overall density for the NSP area is 9 units per acre (upa). Table 2: Proposed Housing Mix in the Residential NSP Housing Allocation: The proposed housing mix of 59% multi-family units (townhouses and apartments) is the highest amount of multi-family housing proposed for a residential NSP to date. Earlier drafts of the plan set the allocation of multi-family housing at almost 80%. Planning advised that a 60% multi-family allocation should be the maximum limit and instructed the applicant to create policy that would limit the percentage of multi-family units from exceeding that threshold. As for the proposed location of the multi-family site, Planning feels that the site is well-situated next to 40 th Avenue, providing quick access in and out of the residential NSP area and close to potential public transit routes. Cluster Housing: The residential NSP is proposing to include two areas for innovative or cluster housing. The applicant intends to be one of the first developers to introduce a unique housing product to Airdrie using the Comprehensively Planned Residential District being proposed in the revised Land Use Bylaw. If this zoning is not in place when the developer applies for land use, it is likely that a Direct Control District will be applied for.

10 Housing Orientation: Planning had asked the applicant to front their single family laned homes toward the main north-south collector road (South Point Gate) across from the school site. The rationale for this request was that it would improve the streetscape by having front doors, porches and articulated facades facing the main collector as one drives southbound, rather than seeing the sides of houses. This orientation would be more consistent with the majority of the homes that front onto the collector within the neighbourhood. Also, by T-ing the end of the block, the lane would only access the surrounding residential roads rather than directly onto the main collector. The applicant was reluctant to modify the blocks and stated that extra articulation would be applied to the corner units. Municipal Reserve: The applicant is proposing that in addition to the standard 10% Municipal Reserve (MR) dedication, an additional 5.7 acres of MR would be added to the residential NSP area, due to a MR transfer from the South Point Commercial NSP area. As a result of this transfer, South Point residential will have nearly double the park space otherwise required. The NSP concept includes two parks (3.2 acres and 1.6 acres) and half of a school site (shared with Hillcrest). Three Public Utility Lots (PULs) that carry the City s sewer and water trunk lines to and from Calgary extend along the west side of the CPR line. The applicant is proposing to use this vast space as a public off-leash dog park and is asking the City to dedicate 50% of the land toward MR credit (which would equate to approximately 3.7 acres of MR). Normally, the City does not credit PUL area for MR. However, the NSP states that improvements will be made to the off-leash facility (such as fencing, benches and other items associated with dog parks), as well as providing some landscaping and a regional pathway along the length of the PUL. School Site: If the residential NSP is approved, the 4 acres allocated for the school site (which is shared with Hillcrest) can be developed. The site belongs to Rocky View School Division (RVSD) and is planned to accommodate grades K-4. Former concept plans had shown the school in different configurations, but RSVD prefers a squared-off site. The school site shown in the final concept (see Figure 5) was agreed upon and became an organizing principle for South Point. The applicant has included the school site as part of the first phase of development. Servicing Concept: Development for the South Point Residential NSP will be reliant upon receiving services (water, sanitary, stormwater and gas) from the South Point Commercial NSP area via a conduit extending under the CPR line. Since the residential area will be utilizing the stormwater pond located in the commercial NSP area, it is critical that the pond is built in the first phase of construction. If the commercial NSP is not approved, the residential NSP (if approved) would have to modify its servicing plans. Stormwater Management Concept: The residential NSP area proposes to utilize the storm pond located in the southern portion of the commercial NSP. Stormwater drainage systems are designed to drain west to east.

11 To reflect the volume release targets of the Nose Creek Watershed Management Plan, the on-site stormwater retention techniques will include reuse of stormwater, soil infiltration and overland conveyance. Biophysical Assessment: The site was assessed in 2012 for habitat, vegetation and ecosystem significance. The site was deemed to have limited ecological significance. One wetland identified on the property was connected to a larger wetland that has been compensated for and received Water Act approval to be converted to a stormwater facility for the Hillcrest development to the west. Historical Resources Assessment: The site has recently been used for an RV storage facility and before that, used for agriculture. The site was assessed and received Historical Resources Act clearance for development. Public Consultation The applicant held a public open house at Genesis Place on Wednesday August 19, Advertising for the open house appeared in Airdrie s two local newspapers two weeks prior to the date. Signs were placed at the corner of 8 th Street and 40 th Avenue and at the corner of Reynolds Gate and 40 th Avenue. The open house was attended by approximately people. Overall, the plan seemed well received and there was no negative feedback. The main comments and questions people had were in regards to: the timing and details of the 40 th Avenue Main Street connection and the 40 th Avenue Highway 2 interchange; the timing of commercial development and what kind of stores were anticipated; the amount of high density residential seemed to be balanced by the large open space areas; the green spaces were well-distributed; the housing types being offered; the location of high density made sense near 40 th Avenue; and the support for the interim on-ramp to Highway 2. Rationale for Planning Recommendation: Planning has considered the following items in its evaluation of the proposed amendments: 1. City Benefits/Infrastructure Improvements: A key component of the proposed NSPs involve the construction of significant City works projects for which the developer has agreements with the City to front-end much of the costs. The most important project in the early phases of development is the extension of 40 th Avenue from Reynolds Gate to the South Point Landing, which accesses Main Street. This would effectively create a direct link from Sierra Springs to the communities of Morningside, Hillcrest, Cooper s Crossing and Windsong. Eventually, 40 th Avenue would further extend eastward to a southbound Highway 2 interchange and bridge over the highway to King s Heights. An interim southbound ramp is proposed to be built at the south end of Main Street until the 40 th Avenue interchange would be completed.

12 2. Nose Creek Re-Alignment: To accommodate the southbound ramp at the Highway 2 40 th Avenue interchange, the current Nose Creek alignment must be shifted to the west. The commercial NSP accounts for this shift and establishes a 30 metre ER which consists of a newly constructed riparian corridor. The relocation of the creek presents both potential opportunities and constraints. The creek in its current state is channelized along the side of the highway and generally lacks any riparian characteristics. There is an opportunity to greatly revitalize and naturalize the creek with proper design and the commercial NSP acknowledges this. However, the exact timing and location of the creek realignment cannot be known until construction drawings for the on-ramp are complete. Therefore, the commercial NSP can only make assumptions for the future creek alignment, along with the allocation of ER and commercial area. When this information becomes available, an NSP amendment will likely be necessary. Until that time, land use and subdivision agreements cannot be made for the potentially affected areas east of Main Street. 3. Traffic Impact Assessment (TIA): A TIA was conducted in May 2014 for both the commercial and residential NSP sites. Upon review of the TIA, Planning and Engineering had no major concerns with the findings. It was noted that the unit count assumption for the residential NSP area was close to 800 units rather than the 600 units projected in the residential NSP. Also, the commercial projections for square footage (over 611,000 sf) was likely based on an area that did not contemplate the re-alignment of the Nose Creek corridor, which would decrease the amount of developable commercial land as shown in the commercial NSP. Therefore, it can be assumed that the traffic trip generation predicted in the TIA will, if approved, be much less based on what is being proposed in the two NSPs. 4. Regional Pedestrian Connectivity: If the two NSPs are adopted, two main regional pathways would be extended southward. There is a pathway that runs along Nose Creek and ends abruptly near the south end of Sierra Springs. Due to the future 40 th Avenue interchange, this pathway would need to connect to Main Street and then run south to the south end of the commercial NSP site, where it would then re-join the Nose Creek channel. The other main trail runs along the west side of the CPR line and currently ends at the south end of Morningside. In the residential NSP, this pathway would extend under 40 th Avenue next to the tracks and continue southward along the PUL. This regional pathway will have direct connections into the residential NSP s two parks. 5. Alignment with the Airdrie City Plan: As discussed at the beginning of this report, it was noted that Council has already approved the changes covering the subject area in the Airdrie City Plan from industrial uses to commercial and residential. The amendment for the South Airdrie ASP brings the document into conformity. The two South Point NSPs are in alignment with the direction of the City Plan. Alignment with AirdrieONE: An analysis was made to establish how the proposed NSPs align with the sustainability objectives outlined in AirdrieONE:

13 Economic Prosperity: The proposed commercial NSP would potentially provide a range of employment opportunities; The proximity of the proposed residential NSP area to the commercial NSP area promotes people s access to employment areas. Built Environment: The proposed NSPs are a logical extension of the built environment; The proposed NSPs have minimal road infrastructure for the City to maintain; The proximity of the proposed residential NSP area to the commercial NSP area promotes people s access to shopping opportunities and other services. Socially Sustainable Communities: The increased MR dedication and pathway connections in the proposed residential NSP contribute to an active, livable community; The proposed residential NSP provides a range of housing opportunities including a potentially high percentage of affordable housing in the multi-family site. Sustainable Natural Environment/ Water: The proposed commercial NSP has the opportunity to restore and enhance the quality of the Nose Creek riparian corridor within the plan area. Sustainable Transportation: The 40 th Avenue Main Street connection in the proposed commercial NSP potentially improves the movement of goods in the City; The proximity of the proposed residential NSP area to the commercial NSP area reduces people s dependency on driving to shopping opportunities and employment areas; The proposed residential NSP locates its higher density housing near major arterial and collector routes which have the most potential to accommodate public transit. Boards Routed Through: The proposed bylaws were presented to the Municipal Planning Commission (MPC) on August 20, The main comments, questions and concerns from MPC were regarding: the appropriate sizing and timing of development of the school site; the southbound interim ramp onto the highway and would it be used as an excuse for Alberta Transportation not to build the interchange at 40 th Avenue and Highway 2; the possibility of incorporating a future LRT within the NSP plan areas; the possibility of including a grade-separated pedestrian crossing over the CPR line to connect the residential area to the commercial area; the defining or re-wording of the term cluster housing in the residential NSP; the over-saturation of large retail in Airdrie competing with nearby Cross Iron Mills; the phasing of development within the multi-family site and how construction may affect homeowners living in early phases; the adequate amount of parking for the off-leash dog park; the concern over possible restrictive covenants being applied by the developer or by retail tenants in the commercial area; and the projected stormwater release rates being adequately met as prescribed in the Nose Creek Watershed Water Management Plan.

14 MPC recommended that Council: 1. Adopts Bylaw No. B-04/2015 (amendments to the South Airdrie ASP) by a unanimous decision; 2. Adopts Bylaw No. B-05/2015 (the Commercial NSP) by a vote of 8-1; 3. Adopts Bylaw No. B-06/2015 (the Residential NSP) by a vote of 7-2; 4. Alters the term cluster housing in the Residential NSP until the term is more clearly defined in the Land Use Bylaw (carried by a vote of 8-1); 5. Amend the Commercial NSP to indicate that no caveats can be registered against any of the subject properties that would restrict the City s ability to do urban planning (carried unanimously). In response to MPC s recommendations, the applicant has changed all references of cluster housing to innovative housing in the residential NSP and has added a no caveat clause within the text of the commercial NSP. Alternatives/Implications: 1. South Airdrie Area Structure Plan: To bring the South Airdrie Area Structure Plan into alignment with the 2014 Airdrie City Plan and to reflect the City s road improvements proposed for 40 th Avenue Road and Main Street, Council is required to adopt Bylaw No. B-04/2015. The changes proposed to the South Airdrie ASP would update the land designations and the sections pertaining to transportation and roadway connections to align with decisions already approved through Council. Should Council choose not to support the proposed NSPs, the only change that would be required to the South Airdrie ASP is to modify Figure #7 to remove the text referencing South Point. 2. South Point Commercial NSP Council has three alternatives with respect to the proposed bylaws for the South Point Commercial NSP: Alternative One: That Council adopts Bylaw No. B-05/2015 (South Point Commercial NSP) as presented. Choosing this option means that Council is in favour of approving the proposed concept plan and land use allocation as outlined in the commercial NSP. Alternative Two: That Council tables Bylaw No. B-05/2015. Choosing this option means Council feels more information should be provided by the applicant or by staff, or certain modifications to the South Point Commercial NSP should be made prior to Council rendering a final decision. Tabling the bylaw would result in delaying the proposed development.

15 Alternative Three: That Council defeats Bylaw No. B-05/2015. Choosing this option means Council is not supportive of the Commercial NSP and recommends that Council not accept the applicant s proposal. If Council chooses to defeat the bylaw, there may be a significant delay in the funding and construction of the 40 th Avenue extension. This would also delay the residential NSP area indefinitely (should it be adopted) because all main services would be coming from the commercial NSP area. 3. South Point Residential NSP Council has three alternatives with respect to the proposed bylaws for the South Point Residential NSP: Alternative One: That Council adopts Bylaw B-06/2015 (South Point Residential NSP), as presented. Choosing this option means Council is in favour of approving the proposed concept plan and land use allocation as outlined in the South Point Residential NSP. Alternative Two: That Council tables Bylaw B-06/2015. Choosing this option means Council feels more information should be provided by the applicant or by staff, or certain modifications to the proposed plan should be made prior to Council rendering a final decision. Tabling the bylaw would result in delaying the proposed development. Alternative Three: That Council defeats Bylaw B-06/2015. Choosing this option means Council is not supportive of the Residential NSP and rejects the applicant s proposal. If Council chooses to defeat the bylaw, there may be a significant delay in the funding and construction of the 40 th Avenue extension. Communications Plan: Should Bylaw Nos. B-04/2015, B-05/2015 and B-06/2015 be adopted by Council, they would then be advertised in the New Laws to Know section of the municipal City Connection advertisement in accordance with City standard practice. Recommendation: The Council gives three readings to Bylaw No. B-04/2015, Bylaw No. B-05/2015 and Bylaw No. B-06/2015 as presented. Mark Spence Senior Planner Presenter: Mark Spence Department: Planning & Development Review ed by: Agenda Setting Attachments: Attachment : Bylaw No. B-04/2015 Attachment : Bylaw No. B-05/2015 Attachment : Bylaw No. B-06/2015 Appointment: N/A

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