Recommendation: APPROVE the by-law adopting 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 By-law for Official Plan Amendment 89 Report Number: PB File Numbers: /11 & /11 Report Date: June 26, 2013 Ward Affected: All Date to Committee: July 8, 2013 Date to Council: July 15, 2013 Recommendation: APPROVE the by-law adopting Official Plan Amendment No. 89, as contained in Appendix I of Report PB-62-13, and forward the amendment to the Clerk of 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 advise Council of progress made on the conditions related to the IKEA Official Plan Amendment and rezoning applications approved by Council on January 28, The report recommends that the By-law adopting OPA 89, attached as Appendix I to Report PB-62-13, be approved and forwarded to the Region of Halton. The zoning by-law will be presented to Council for enactment at a later date once the conditions from Report PB are satisfied. These conditions require execution of a development agreement addressing the timing and funding of transportation improvements to the satisfaction of the city and MTO and related Conservation Halton creek block issues, and payment of variable rezoning fees. Vibrant Neighbourhoods Prosperity Excellence in Government N/A

2 Page 2 of Report PB Background: Previous reports to committee 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 shown below. Planning staff prepared four reports for committee culminating in a report presented to the Development and Infrastructure Committee on January 14, 2013 recommending approval of the OPA and rezoning applications as modified by staff (Report PB-10-13). Council approved the recommendations in this report on January 28, 2013 as indicated below. January 28, 2013 Council approval APPROVAL OF OFFICIAL PLAN AMENDMENT AND REZONING APPLICATIONS FOR 3455 NORTH SERVICE ROAD - IKEA PROPERTIES LIMITED Adopt Amendment No. 89 to the City of Burlington Official Plan, as contained in Appendix II of Report PB-10-13, for a site-specific text amendment to the business corridor policies to permit a large furniture and appliance store, including the store office and staff areas, and restaurant, to occupy up to 49 percent of the gross floor area of the building to be developed at 3455 North Service Road and provided the

3 Page 3 of Report PB building also includes office having a minimum floor area of 2,000 m2, and Deem that Section 17 (21) of The Planning Act has been met; and Direct the City Clerk to prepare the necessary by-law adopting Official Plan Amendment No. 89, as contained in Appendix II of Report PB , and forward the amendment to the Clerk of the Region of Halton for approval upon completion by the applicant of the following: Execution of a development agreement that satisfactorily addresses the timing and funding of transportation improvements to the satisfaction of the Director of Transportation for the City of Burlington and the Ministry of Transportation of Ontario (MTO), and related Conservation Halton creek block issues as described in Report PB ; and Approve the application by IKEA Properties Limited, c/o Paul Sipos, Stark Architects Inc., 2560 Matheson Blvd. E., Suite 317, Mississauga, ON L4W 4Y9 to rezone lands at 3455 North Service Road from BC1 to BC1-exception to permit a large furniture and appliance store, including the store office and staff areas, and restaurant, to occupy up to 49 percent of the gross floor area of the building to be developed at 3455 North Service Road, and Instruct staff to prepare the by-law to amend Zoning By-law 2020, as amended, rezoning the lands at 3455 North Service Road from BC1 to BC1-exception, upon completion by the applicant of the following: 1) Execution of a development agreement that satisfactorily addresses the timing and funding of transportation improvements to the satisfaction of the Director of Transportation for the City of Burlington and the Ministry of Transportation (MTO), and related Conservation Halton creek block issues as described in Report PB ; 2) Payment of variable rezoning fees on a net site area basis in accordance with By-law , as amended; and Deem that the amending zoning by-law will conform to the Official Plan for the City of Burlington once Official Plan Amendment No. 89 is approved by the Region of Halton; and State that the amending zoning by-law will not come into effect until Official Plan Amendment No. 89 is approved by the Region of Halton. (PB ).

4 Page 4 of Report PB Discussion: Transportation Issues/Road Improvements The previous planning reports prepared for the IKEA development proposal consistently identified traffic impacts among the key issues associated with the review of the applications. Several updates were required to the applicant s traffic study to assess the impact of the proposal on adjacent roadways and identify improvements to accommodate the IKEA development before staff could complete its recommendation report on the applications. The road improvements, described in a report by Transportation Services staff presented November 12, 2012 (TS-34-12) include the following: Short-term improvement (required for opening day): Widening of the Walker s Line/North Service Road intersection to accommodate dual northbound left turn lanes and a widening of the North Service Road from Walkers Line to the IKEA site from two to four lanes. IKEA is responsible for all costs to design and construct the necessary road improvements for opening day. IKEA s consultants have estimated the cost of these works to be approximately $2.6M. Long-term improvement: relocation of the North Service Road/ Walker s Line intersection further north to provide an acceptable length for queuing purposes from the interchange. Cost for this work is estimated at $16M (including net land purchase). Council directed the Director of Transportation Services to facilitate discussions regarding the cost sharing of these works with the Province, the Region of Halton and area developers. At this time, none of these other parties have agreed to cost sharing. IKEA s letter of response is attached as Appendix II to this report. MTO requirements November 2012 The Walker s Line/North Service Road intersection is within the MTO s controlled access jurisdiction so any roadway modifications require its approval. Report TS advised that the MTO had agreed in principle to permit the proposed IKEA development to proceed with the recommended dual northbound dual left turn lanes in place as an interim improvement before opening day, subject to the following: 1. MTO approval of detail design of the interim improvement. 2. MTO and Burlington enter into an agreement governing traffic operation during the interim period. 3. MTO and Burlington come to an agreement on the long term solution for the 10 year forecasted traffic flows. 4. MTO and Burlington agree on a trigger condition at which point the long term solution requires implementation (actual date of implementation may be in less than 10 years). 5. Burlington acknowledges responsibility for ensuring funding of the long term solution is in place.

5 Page 5 of Report PB Progress with MTO Transportation Services and Engineering staff met with IKEA and MTO several times and in April 2013 received approval of the interim functional plan, design criteria and the long term design functional requirements. The city is now negotiating an agreement with MTO over the road improvements and will present the agreement to committee concurrent with the final development agreement with IKEA as the two agreements have interdependencies. Conservation Halton The subject property is regulated by Conservation Halton (CH) as the development site abuts Tuck Creek and contains a portion of the valley lands, top of bank, floodplain and 7.5 m setback from the creek. Approval and permits are required from CH for works within the site located within the regulated area and for proposed improvements to North Service Road including an urban cross-section and turn lane configurations at the Walker s Line intersection to accommodate truck movements. IKEA s transportation consultants prepared alternative conceptual alignments for widening North Service Road in Fall 2011 that were circulated to technical staff and assessed at an agency site visit. CH provided formal comments in February 2012 that state: Conservation Halton staff are prepared to consider alterations to the regulated area associated with Tuck Creek to permit the widening of North Service Road, however, only minor modifications to Tuck Creek itself would be considered. The letter also outlined the criteria/requirements to receive approvals from CH. IKEA s consultants advise they were seeking approval of design criteria by MTO before proceeding with detailed North Service Road design alternatives and these criteria were agreed to in April On May 7, 2013, city staff attended a meeting with IKEA s consultants and CH staff to discuss the parameters and schedule of the North Service Road design exercise and a follow-up meeting is to be scheduled in early July when IKEA s consultants are to have detailed designs and stormwater analyses available for review. The North Service Road improvements must be designed to minimize impacts on the creek block while accommodating traffic and sidewalk needs, and from a development perspective, one needs to see if the road design impacts the developable area of the IKEA site. IKEA timing There are numerous outstanding issues to be resolved related to the IKEA OPA, rezoning and site plan applications before development can proceed and many of these issues involve approvals by outside agencies. Significant progress has been made in the last few months with MTO and work on the CH issues has now been initiated.

6 Page 6 of Report PB FINANCIAL MATTERS: IKEA recently met with city staff to discuss development schedule issues and requirements to finalize their land purchase. They have requested consideration of parallel processes on the transportation improvements agreement (MTO, CH and city agreement required), final approval of OPA 89 (Regional approval required), fulfillment of conditions to allow the zoning by-law to be enacted and processing of their site plan. In January 2013, Council approved the OPA and rezoning for the IKEA applications but by-laws could not go forward until conditions were satisfied concerning the identified transportation and creek block issues. Progress has been made on these issues but the necessary agreements cannot be completed until IKEA s consultants submit completed detailed designs for the short-term transportation infrastructure improvements. Given the progress made in the last few months, staff is recommending the by-law for OPA 89 be approved so it can be released to the Region of Halton for their consideration. The requirement for an agreement on the transportation improvements, including funding and satisfying CH requirements concerning Tuck Creek, must still be addressed before the zoning by-law can be enacted so development cannot proceed until IKEA has completed these matters. Staff is concurrently proceeding with processing of the site plan application and advising IKEA of technical and design issues to be addressed so site plan approval could proceed quickly once the OPA and zoning approvals are in place. It is noted that timing of both the zoning and site plan matters is dependent on timely submission by IKEA s consultants of the plans and technical reports to address outstanding issues. It is anticipated a further progress report can be presented to Council in Fall All costs related to the short-term infrastructure improvements are the responsibility of the developer. The financial implications of the long-term transportation infrastructure improvements were addressed in Report TS IKEA s response to participating in cost-sharing of the longterm improvements is included in Appendix II. Further information from the negotiations with other parties will be included in the future report to committee when the completed agreements are submitted for approval. COMMUNICATION MATTERS: N/A

7 Page 7 of Report PB CONCLUSION: Council approved the IKEA Official Plan Amendment and rezoning applications on January 28, The by-law to adopt OPA 89 and the enactment of the zoning by-law were to follow execution of a development agreement addressing timing and funding of the short-term and long-term transportation improvements to accommodate the proposal and related Conservation Halton creek block issues related to the widening of North Service Road. Progress has been made with the MTO on road design issues and the applicant is now working on design alternatives for the North Service Road that will require approval of Conservation Halton. This report recommends approval of the by-law adopting OPA 89 so it can be forwarded to the Region of Halton for approval. The conditions outlined in Report PB still need to be satisfied prior to enactment of the zoning by-law and it is anticipated this can occur in Fall Respectfully submitted, Original signed by Bruce Krushelnicki Bruce Krushelnicki Director of Planning and Building Notifications: (after Council decision) Name Bruce Zvaniga Director of Transportation Services Mailing or Address P. Sipos, Stark Architects sipos@starland.ca Approvals: *required Original signed by Bruce Zvaniga N/A Original signed by Scott Stewart *Department City Treasurer General Manager City Manager N/A 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 01-Approved 02-Not Approved 03-Amended 04-Referred 06-Received & Filed 07-Withdrawn

8 Page 8 of Report PB APPENDIX I THE CORPORATION OF THE CITY OF BURLINGTON BY-LAW NUMBER xx-2013 A By-law to adopt Amendment No. 89 to The Official Plan (1994) of the Burlington Planning Area to permit additional commercial development at 3455 North Service Road. File: /11 (PB and PB-62-13) WHEREAS the Council of the Corporation of the City of Burlington in accordance with the provisions of Sections 17 and 22 of the Planning Act, 1990, as amended, approved the recommendations in Report PB on January 28, 2013, and the recommendations in Report PB on July 15, 2013, NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF BURLINGTON HEREBY ENACTS AS FOLLOWS: 1. THAT Amendment No. 89 to The Official Plan (1994) of the Burlington Planning Area consisting of the attached amendment and supporting documentation is hereby adopted. 2. THAT this by-law shall come into full force and take effect on the final day of passing thereof. ENACTED AND PASSED THIS 15 TH day of July, Rick Goldring MAYOR Angela Morgan CITY CLERK

9 Page 9 of Report PB OFFICIAL PLAN OF THE BURLINGTON PLANNING AREA AMENDMENT NO. 89 The attached Amendment No. 89 to The Official Plan (1994) of the Burlington Planning Area, was approved by the Burlington Development & Infrastructure Committee, and was recommended to the Council of the Corporation of the City of Burlington under the provisions of Sections 17 and 22 of the Planning Act, 1990, on the 8 th day of July, COUNCILLOR RICK CRAVEN, CHAIR DEVELOPMENT & INFRASTRUCTURE COMMITTEE This Amendment was adopted by the Corporation of the City of Burlington by By-law No. xx-2013 in accordance with Sections 17 and 22 of the Planning Act, 1990, on the 15 th day of July RICK GOLDRING MAYOR ANGELA MORGAN CITY CLERK

10 Page 10 of Report PB 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.

11 Page 11 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.

12 Page 12 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. The retail portion of the subject building may occupy no more than 49% of the gross floor area and includes related store office and restaurant uses. A warehouse space component that is accessible to the public shall also be permitted 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.

13 Page 13 of Report PB APPENDIX II

14 Page 14 of Report PB-62-13