Recommendation: APPROVE the modifications to Official Plan Amendment No. 89

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1 Page 1 of Report PB Planning and Building Department TO: Development and Infrastructure Committee SUBJECT: IKEA Properties Ltd North Service Road Halton Region modifications to Official Plan Amendment 89 Report Number: PB File Numbers: /11 & /11 Report Date: August 27, 2013 Ward Affected: All Date to Committee: September 9, 2013 Date to Council: September 9, 2013 Recommendation: APPROVE the modifications to Official Plan Amendment No. 89 requested by the Region of Halton and forward the modified amendment, attached as Appendix 1 to Report PB-76-13, to the Region of Halton for approval. File: /11 Purpose: Address goal or action in strategic plan Establish new or revised policy or service standard Respond to legislation Respond to staff direction Address other area of responsibility Reference to Strategic Plan: The purpose of this report is to seek Council approval of the modifications proposed by the Region of Halton to OPA 89, the Official Plan Amendment related to the IKEA development applications at 3455 North Service Road. Vibrant Neighbourhoods Prosperity Excellence in Government N/A Background: IKEA Properties Ltd. submitted applications seeking an Official Plan amendment (OPA), zoning by-law amendment and site plan approval in March 2011 to facilitate the relocation and expansion of IKEA s retail store, Canadian corporate head office and warehouse space from its existing location at 1065 Plains Rd. E. to the property at 3455 North Service Road.

2 Page 2 of Report PB Planning staff prepared five reports for committee during the processing of these applications discussing the key issues (employment conversion, transportation and creek block issues) and presented a comprehensive recommendation report on the OPA and rezoning applications in January 2013 (PB-10-13). Discussion The most recent planning report (PB-62-13), approved by Council on July 15, 2013, presented the by-law to adopt OPA 89 to permit the IKEA development. The Region had advised city staff early in the processing of the IKEA applications that they would retain approval authority for the proposed OPA. City staff therefore prepared the OPA 89 record prescribed by Ontario Regulation 198/96 and forwarded it to the Region for approval on July 23, The Region reviewed the record and responded to planning staff with proposed modifications to OPA 89 as highlighted below. Northwest quadrant of Walker s Line and QEW In addition to the uses permitted in Part III, Subsection a) and e) of this Plan, the property at 3455 North Service Road shall permit a large furniture and appliance store provided it forms a component of a building that also includes office uses having a minimum floor area of 2,000 m 2 and warehouse space having a minimum floor area of 17,700 m 2. The retail portion of the subject building may occupy no more than 49% of the gross floor area and includes accessory related store office and restaurant uses. A warehouse space component that is accessible to the public shall be limited to a maximum of 42% of the total warehouse space also be permitted and shall not be included in the retail calculations. FINANCIAL MATTERS: N/A It is staff s opinion the proposed modifications do not impact the building uses or site layout discussed in the recommendation report (PB-10-13). It is also staff s opinion that the modifications provide greater clarity concerning the employment components required to permit the increase in retail floor area for this development proposal. This report therefore recommends that Council approve the modifications to OPA No. 89 requested by the Region of Halton, and that the modified amendment, attached as Appendix 1 to Report PB-76-13, be fowarded to the Region of Halton for approval.

3 Page 3 of Report PB COMMUNICATION MATTERS: It is staff s understanding that the proposed modifications have been presented to IKEA representatives. CONCLUSION: Council adopted OPA 89 for the IKEA development on July 15, 2013 and forwarded the amendment to the Region of Halton for its approval. Regional staff have proposed minor modifications to OPA 89 that have been reviewed by city staff. This report recommends Council approved the modified OPA 89, attached as Appendix 1 to this report, and forward it to the Region for approval. Respectfully submitted, Original signed by Silvina Kade Silvina Kade, MCIP RPP, AICP Senior Planner Development Planning Notifications: (after Council decision) Name Laurielle Brooks, Halton Region Mailing or Address Laurielle.Brooks@halton.ca Paul Sipos, Stark Architects sipos@starland.ca Approvals: *required Original signed by Bruce Krushelnicki *Department Head n/a City Treasurer Original signed by Bruce Krushelnicki Acting General Manager n/a City Manager Committee Disposition & Comments Council Disposition & Comments To be completed by the Clerks Department 01-Approved 02-Not Approved 03-Amended 04-Referred 06-Received & Filed 07-Withdrawn

4 Page 4 of Report PB Approved 02-Not Approved 03-Amended 04-Referred 06-Received & Filed 07-Withdrawn

5 Page 5 of Report PB APPENDIX I AMENDMENT NO. 89 TO THE OFFICIAL PLAN OF THE BURLINGTON PLANNING AREA (IKEA PROPERTIES LTD NORTH SERVICE RD.) CONSTITUTIONAL STATEMENT The details of the Amendment, as contained in Part B of this text, constitute Amendment No. 89 to the Official Plan for the Burlington Planning Area, as amended. PART A PREAMBLE 1. PURPOSE OF THE AMENDMENT The purpose of this Amendment is to permit additional commercial development at the Business Corridor designated lands at 3455 North Service Road. The site-specific text amendment to the Business Corridor policies will permit a large furniture and appliance store, and related store office and restaurant uses, to occupy up to 49% of the floor area of a building provided it also includes office uses with a minimum floor area of 2,000 m SITE AND LOCATION The property at 3455 North Service Road is located at the northwest quadrant of Walker s Line and the QEW interchange. The property has frontage of 320 metres on North Service Road and is 9.84 hectares in area. North of the property is the CNR rail line and industrial development, to the east is Tuck Creek and Walker s Line, to the south is North Service Road and the QEW, and to the west is a truck rental operation and prestige employment uses. The site, owned by Hopewell Development (Ontario) Inc. is currently vacant but has supported various industrial uses in the past. 3. BACKGROUND The amendment would permit the development of a 40,872 m 2 building to incorporate the Canadian head office for IKEA Canada Ltd., a retail furniture store and warehousing. The breakdown of uses in the proposed 3 storey building include: 2,036 m 2 for corporate head office operations, 10,269 m 2 for non-public warehousing, receiving and technical areas; 7,519 m 2 for publicly accessible warehouse space, 16,385 m 2 for retail uses, 2,713 m 2 for store office and staff areas, and an 890 m 2 restaurant.

6 Page 6 of Report PB BASIS FOR THE AMENDMENT a) The permission for additional retail space permits the city to maintain an established international company and major employer (400 jobs) that has outgrown its current site and would create an additional 165 jobs as a result of a 74% expansion. b) Despite the addition of furniture retail sales and related office and service commercial uses up to 49% of the gross floor area of the building, the proposed development maintains the employment function of the business corridor designation due to the large warehouse and office components. c) Permitting the additional commercial use as a component of a building that must maintain an office component of at least 2000 m 2 ensures employment uses in accordance with the employment area requirements of the Provincial Policy Statement are maintained. d) Permitting the additional commercial use on a site-specific basis within the Business Corridor designation ensures the employment area function is maintained over the long term. e) The proposed IKEA furniture store, that includes an office furniture component, and restaurant, shall also serve businesses and employees in the surrounding employment area. f) Maintaining the large lot size, as well as the development form, with a significant warehousing component that could accommodate other major industrial users should IKEA ever vacate the site, maintains the long-term employment function of the property. g) The addition of furniture retail sales at the development will not introduce incompatible or sensitive uses that will impact the viability of the surrounding employment lands. h) The proposed development is in accordance with the policies of the Provincial Policy Statement to support redevelopment of a brownfield site. i) The applicant submitted technical studies that provide adequate and appropriate information to support the development upon construction of the identified infrastructure improvements.

7 Page 7 of Report PB PART B THE AMENDMENT 1. DETAILS OF THE AMENDMENT Text Change: The text of the Official Plan of the Burlington Planning Area, as amended, is hereby amended as follows: By adding the following policy m) at the end of Part III, Section 3.4 Business Corridor Designation, Subsection 3.4.3, Site Specific Policies: Northwest quadrant of Walker s Line and QEW b) In addition to the uses permitted in Part III, Subsection a) and e) of this Plan, the property at 3455 North Service Road shall permit a large furniture and appliance store provided it forms a component of a building that also includes office uses having a minimum floor area of 2,000 m 2 and warehouse space having a minimum floor area of 17,700 m 2. The retail portion of the subject building may occupy no more than 49% of the gross floor area and includes accessory store office and restaurant uses. A warehouse space component that is accessible to the public shall be limited to a maximum of 42% of the total warehouse space and shall not be included in the retail calculations. 2. INTERPRETATION This Official Plan Amendment shall be interpreted in accordance with the Interpretation policies of Part VI, Implementation, Section 3.0, Interpretation, of the Official Plan of the Burlington Planning Area. 3. IMPLEMENTATION This Official Plan Amendment will be implemented in accordance with the appropriate Implementation policies of Part VI of the Official Plan of the Burlington Planning Area. /OPA89/August 27, 2013