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Agenda - Special Council - 20040929TOWN OF AURORA PUBLIC PLANNING AGENDA NO.04-30 MEMBER 29, 2004 7:00 P.M. COUNCIL CNAMBERS AURORA TOWN NALL PUBLIC RELEASE tit 24/09/04 TOWN OF AURORA SPECIAL COUNCIL - PUBLIC PLANNING MEETING AGENDA NO. 04-31 Wednesday, September 29, 2004 I DECLARATIONS OF INTEREST II APPROVAL OF AGENDA RECOMMENDED: THAT the content of the Agenda be approved as presented. Ill PLANNING APPLICATIONS IV READING OF BYLAWS RECOMMENDED: THAT the following listed by-law be given 1st, 2nd and 3rd readings, and enacted: 4600-04.0 BEING A BY-LAW to (pg.112) Confirm Actions by Council Resulting From This Meeting - Wednesday, September 29, 2004. V ADJOURNMENT AGENDA ITEMS PL04-109 - Zoning By-law Amendment Application (pg. 1) Andrew Weber and Neal Santin 74 Wellington Street East Lot 13, RP 107 File D14-09-04 RECOMMENDED: THAT report PL04-109 be received as information and that Council determine their position with respect to the application, subject to public comments received. 2. PL04-111 - Official Plan Amendment, Rezoning and (pg. 10) Subdivision Applications Ballymore Homes and Fred Rankel (Conseil Scolaire de District Catholique Centre-Sud) Part of Lot 71, Concession 1, E.Y.S., 65M-2767 Northeast corner of Bathurst Street and Bloomington Road Files D09-04-04, D14-04-04 and D12-04-1A RECOMMENDED: THAT Council receive as information the following overview of Official Plan Amendment, Rezoning and Subdivision applications D09-04-04, D14-04-04 and D12-04-1A scheduled for the September 291h, 2004 Public Planning Meeting. Further staff input be received and considered in concert with the public input prior to Council finalizing its position respecting the application. 3. PL04-112 - Whitwell Developments Limited (First Professional) (pg. 26) Part of Lot 21, Concession 3 Wellington Street and Leslie Street Official Plan and Zoning Amendment Applications Files D09-10-03 & D14-28-03 respectively RECOMMENDED: THAT Council receive as information the following overview of the final peer reviews completed for Official Plan Amendment and Zoning By-law Amendment applications D09-10-03 and D14-28-03 respectively regarding Whitwell Developments Limited, and; THAT in view of the completed peer reviews that Council provide direction to staff respecting any further information it requires to enable it to address the proposed official plan and zoning by-law amendments. PUBLIC PLANNING — SEPTEMBER 29, 2004 AGENDA ITEM # _1 TOWN OF AURORA PUBLIC PLANNING REPORT No. PL04-109 SUBJECT: Zoning By4aw Amendment Application Andrew Weber and Neal Santin 74 Wellington Street East Lot 13, RP 107 File Number D14-09-04 FROM: Sue Seibert, Director of Planning DATE: September 29, 2004 RECOMMENDATION THAT report PL04-109 be received as information and that Council determine their position with respect to the application, subject to public comments received. BACKGROUND Location/Land Use As illustrated on the attached Figures 1 and 2, the subject lands are located at 74 Wellington Street East, and legally identified as Lot 13, Registered Plan 107. The lands front onto Wellington Street and backs onto Centre Street. The property is approximately 1035 sq. m. (11,141.0 sq. ft.) in size and has a frontage of 18.7 m (61.35 ft.) on Wellington Street East. This house is listed in the "Town of Aurora List of Heritage Properties", known as "The Morrison House" and built in 1886. This property has been plaqued by the Aurora Heritage Committee (AHC) and designated under the Ontario Heritage Act (OHC) in 1989. Surrounding Uses To the North: Residential; South: Residential properties and properties zoned for medical, business and professional offices; East: Residential dwellings (fronting Wellington Street East and Centre Street); West: Residential dwellings (fronting Wellington Street East and Centre Street). —1— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 2 - Report No. PL04-109 Official Plan The subject lands are designated "Urban Residential" by the Official Plan (OP) and are located within the Town's "Heritage Resource Area". To support the viability of Aurora's heritage, limited commercial uses, such as small scale professional or business offices, and studios which are compatible with residential uses, are permitted along arterial streets in the "Heritage Resource Area". Such uses are subject to a site plan agreement and the availability of sufficient on -site parking which is screened to protect adjacent residential areas. The owner has filed a concurrent site plan application underfile D11-10-04 which is currently under review. The proposed rezoning to allow the lands to be used for business and professional offices, excluding medical offices is therefore in keeping with the policies of the Official Plan. Zoninq By-law The subject lands are currently zoned "Special Mixed Density Residential (R5) Zone." The proposed use of the lands is not permitted in the By-law. The owner has applied to the Town to rezone the property from "Special Mixed Density Residential (R5) Zone' to "Special Mixed Density Residential (R5-X) Exception Zone" to allow the lands to be used as a professional office to be located in the existing heritage building. The list below outlines the proposed zoning requests: ■ A minimum side yard setback of 1.2 m (3.93 ft.) to the existing dwelling ■ A minimum side yard setback of 1.0 m to the existing garage • Amend Section 6.27.8 (a) Ingress and Egress to and from required parking spaces shall be provided by means of a driveway or passage way at 3.95 m (less than 4m) ■ Delete Section 6.31.2 (ii) for a 1.5 m grassed buffer strip As shown on the site plan (Figure 3), the applicant is proposing to construct a parking lot providing 8 parking spaces, located in the rear yard of the property and two parking spaces within the existing garage. The entrance to the site is from Wellington Street East, and a second entrance is proposed from the rear yard of the property off of Centre Street. In our review of the application, it was determined that a one-way driveway is appropriate for this site, which would allow entrance to the site off of Wellington Street, and to exit would be from Centre Street. The applicant agrees with this change. Landscaping is proposed along the property lines adjacent to the parking lot and fronting Centre Street and a 1.8 m high wood fence is proposed along the property lines. The applicant has indicated that there will be no changes to the exterior of the building. The owner has also filed a concurrent site plan application under file D11-10-04 forthe subject lands which is currently under review. —2— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 3 - Report No. PL04-109 COMMENTS Planning Considerations As noted, the lands are designated "Urban Residential" by the OP and located within the Town's "Heritage Resource Area". The proposed rezoning from "Special Mixed Density Residential (R5) Zone" to "Special Mixed Density Residential (R5-X) Exception Zone" is in keeping with the policies of the OP. The proposal to allow for business and professional offices, specifically a computer software development company, is consistent with the existing built form located in the surrounding neighborhood, as a number of site specific R5 Exception Zones have been created along arterial streets in the "Heritage Resource Area". This property fronts onto Wellington Street, and backs onto Centre Street, with a proposed additional access driveway off of Centre Street. Planning Staff have been sensitive to this, and have worked with the applicant and the Town Departments, specifically the Leisure Services Department to ensure that the parking lot is screened/buffered to protect the adjacent residential area. Also, the applicant has excluding the medical offices and only permitting professional offices, which we feel is appropriate in this area. Staff are of the opinion that the one-way only proposal will decrease the traffic impacts, as vehicles will enter the site from Wellington Street and exit from Centre Street. The applicant has stated that the predominate users of the parking lot will be staff members of the professional office. Staff would like to note, that the applicant has restored and preserved a significant heritage property as encouraged in the OP. Staff have reviewed the zoning requests and offer the following comments: • Permission to allow a minimum side yard setback of 1.2 m (3.93 ft.) to the existing dwelling. ■ Permission to allow a minimum side yard setback of 1.0 m (3.28 ft.) to the existing garage. ■ Amend Section 6.27.8 (a) Ingress and Egress to and from required parking spaces shall be provided by means of a driveway or passage way at 3.95 m (less than 4m) Staff have no issue with these requests. The requests are existing situations. ■ Permission to delete Section 6.31.2 (ii) 1.5 m grassed strip requirement In our review of the application, the Building Administration Department identified that the proposed angled parking layout did not conform to Town standards and was notfunctional. In order to achieve this, the 1.5 m buffer strip would have to be reduced or eliminated. The Leisure Services Department proposed a compromise which would allow for a functional parking lot, and still provide a buffer from the adjacent residential lots. The Landscape Architect proposes the edge of paving/curbing be realigned to follow the shape of the parking stall in order to provide triangular areas of landscaping suitable for canopy tree planting and landscaping (see Figure 4) . A 1.8 m solid wood high fence is proposed and the Town's Landscape Architect recommends additional decorative detailing on the fence including vine planting. To ensure further buffering, planting for the Centre Street frontage shall include street trees, shrub screen or hedge (approximately 0.9 m) in height which will buffer the parking lot. The Planning Department concurs with the Leisure Services —3— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 4 - Report No. PL04-109 Department and is of the opinion that the compromise is acceptable and therefore deleting the requirement under Section 6.31.2 (ii) for a grassed strip is appropriate in this instance. Department Comments Staff have reviewed the application and have offered the following comments. The Public Works Department have no concern with the rezoning application. They have offered comments in relation to the site plan application currently under review. The Public Works Department has also stated that they do not anticipate increased levels of traffic on Centre Street from the proposed professional office use, and the proposal of an additional eight (8) parking spaces. For Council's information, the Public Works Department is in the process of preparing a traffic calming study which would look at the entire neighbourhood and create a traffic calming design for the area. The Building Administration Department noted some deficiencies with the original parking layout proposal and itwas recommended that the required 1.5 m buffer strip requirement be deleted in this instance. To ensure adequate buffering, the Building Administration Department and the Leisure Services Department recommended the redesign of the parking lot to ensure the parking lot was functional and would provide adequate landscaping. Therefore, the applicant redesigned the parking lot, provided a new angle parking layout and proposes to provide the recommended landscaping. The Heritage Committee has reviewed the application and have no objection to the proposal and have requested that the Director of Corporate Services review the final landscape drawings. The Region of York also has no objection to the proposal and they have stated that they are in concurrence with a one-way access proposal provided that appropriate signage is posted on the site. Aurora Hydro has no objection to the rezoning, and has offered comments regarding the site plan application. The Central York Fire Services Department also has no comment on the application. Resident Concerns Residents in the neighbourhood have expressed a concern with the possibility of increased traffic from this business. As noted above, the Public Works Department has stated that they do not anticipate an increase in traffic levels on Centre Street do to this type of small business. The applicant has informed us that the parking lot is predominately for staff members of the company. CONCLUSIONS An application has been submitted for a Zoning By-law Amendment application to rezone the property from "Special Mixed Density Residential (R5) Zone" to "Special Mixed Density Residential (R5-X) Exception Zone" to allow the lands to be used for business and professional offices, excluding medical offices. Should Council determine there is merit in the proposal, it is suggested it be referred back to staff to resolve matters identified, as well as those that may be raised by the public and members of Council and that a further report detailing how such matters have been addressed be prepared. —4— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 5 - Report No. PL04-109 FINANCIAL IMPLICATIONS Not applicable. LINK TO STRATEGIC PLAN The Strategic Plan contains objectives to ensure high quality, comprehensive community planning to protect the overall investment of citizens in the community. Critical review of the subject application through the Zoning By-law Amendment process will facilitate this objective. ATTACHMENTS Figure 1 - Location Plan Figure 2 - Survey Figure 3 - Proposed Site Plan Figure 4 - Leisure Services Recommendation Plan PRE -SUBMISSION REVIEW Management Team Meeting — September 22, 2004 Prepared by: Cristina Celebre, Planner Extension 4343 Sei er , M.C.I.P., R.P.P. recto Planning —5— Ll cc uj � � � s §\ E\. lu m en¥] \ co \ � $ Q { \ � f a w LU m ; w 2 . w � C j Cl) Z { # IS m%d % \ m m%d 2 ) M « LU m � � z \ � k ) « t \ � ) z � / } § C °C \ § z w , a O_ ka�§ ) §k)IL Q «$�@ IJa§1S q°06i CLwWw 2220 �1 F 1� q ---ZtYTEMbtK ZU, ZUU4 :g 4 w 6 Y NY lo ggr y �IaY ep p fi a i1:�� � �� 9 d>18saRys:uy6rtR@e *0 ePs Y Ya oY �� k N i Q 19y IY 64 s y. 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I I K Gu I y ^qq 0� 4 r� VQ Fog& F Z 9 n J W 3 O a i O t I —8— V* Zr1% � q r V Ae l A L.! abp PUBLIC PLANNING - SEPTEMBER 29, 2004 6i; TOWN OF AURORA PUBLIC PLANNING REPORT No. PL04-111- SUBJECT: Official Plan Amendment, Rezoning and Subdivision Applications Ballymore Homes and Fred Rankel (Conseil Scolaire de District Catholigue Centre-Sud) Part of Lot 71, Concession 1, E.Y.S., 65114-2767 Northeast corner of Bathurst Street and Bloomington Road Files D09-04-04, D14-04-04 and D12-04-1A FROM: Sue Seibert, Director of Planning DATE: September 29, 2004 RECOMMENDATION THAT Council receive as information the following overview of Official Plan Amendment, Rezoning and Subdivision applications D09-04-04, D14-04-04 and D12- 04-1A scheduled for the September29th, 2004 Public Planning Meeting. Furtherstaff input be received and considered in concert with the public input prior to Council finalizing its position respecting the application. BACKGROUND Location/Land Use The subject lands are located on the northeast corner of Bathurst Street and Bloomington Road. The application is made up of two parcels in separate ownership, the northerly parcel is identified legally as Block 31, Registered Plan 65M-2767 and approximately 24 acres in size, and the southerly parcel is identified legally as Part of Lot 71, Concession 1 approximately 22 acres in size, illustrated on the attached Figures 1 and 2. The total vacant lands are 18.92 ha (46.75 ac.) in size and have a frontage of 501.4 m (1645.01 ft.) on Bathurst Street, and a frontage of 397.2 m (1303.1 ft.) on Bloomington Road. Surrounding Uses To the North: GO Transit rail line; South: Residential; East: Residential; and West: Residential. -10- PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29 2004 -2- Report No. PL04-111 Official Plan The site is within the Yonge Street South Secondary Plan (OPA 34) (see Figure 3). The lands are designated "Transitional Residential', "Low Density Suburban Residential" and "Suburban Residential". The easterly part of the site is designated "Transitional Residential', which permits detached dwellings having a minimum lot area of 0.4 hectares (1 acre) and a minimum lot frontage of 30 metres (100 ft.). The southerly and westerly part of the site (fronting Bloomington Road and Bathurst Street) is designated "Suburban Residential' which permits detached dwellings having a minimum lot area of 0.2 hectares (0.5 acres). The internal portion of the site is designated "Low Density Suburban Residential' which permits single detached dwellings, semi-detached dwellings, duplex dwellings and linked housing having no more than 5 units per hectare (2 units per acre) of gross residential land. In all residential designations, minor institutional facilities are permitted. The lands are also located within the "Settlement Area" of the Oak Ridges Moraine Conservation Plan (ORMCP) as implemented through OPA 48. Zoning By-law The subject lands are currently zoned "Rural (RU-ORM) Zone", which does not permit the proposed use of the lands. PROPOSAL The application is a joint venture between Ballymore Homes and Conseil Scolaire de District Catholique Centre-Sud. The applicants have applied for a Draft Plan of Subdivision along with an application for a Zoning By-law Amendment and an Official Plan Amendment. As illustrated on Figure 2, the applicants are proposing the development of the subject lands for 59 detached dwelling units on 10.46 ha (25.8 acres) of the site, and a French Separate Secondary School on 5.56 ha (13.73 acres) of the site. The proposed entrances to the site are from Bathurst Street and from Bloomington Road. Sidewalks are also proposed along Bloomington Road. All the lots will front onto internal roads and are proposed to be serviced with municipal water and sewage supply. The following is a breakdown of the proposal: Single Detached # of Lot Area (min) Lot OPA 34 Residential Lots Frontage Designation Lots min Lots 1-3, 25, 45 5 2000 sq.m. (0.5 acre) 24.0 m Suburban Residential Lots16 to 23 8 4000 sq.m (1 acre) 30.0 m Transitional Residential Lots 4-15, 24, 26-44 46 1000 sq.m 24.0 m Low Density 46-59 No more than (2 units/ac.) Suburban Residential —11— PUBLIC PLANNING - SEPTEMBER 29, 2004 September 29, 2004 - 3 - Report No. PL04-111 School Site Lot Area -� _ Block 60 5.56 ha (13.73 acres) Other Lot Area Stormwater Management Pond Block 61 5.56 ha (13.73 acres) Roads Streets A, B, C 2.18 ha 5.38 acres An Official Plan Amendment application has been submitted to redesignate the school site lands from "Suburban Residential" and "Low Density Suburban Residential" to a "Major Institution" designation to permit the use of the lands for a French Separate Secondary School. As noted, the site is zoned "Rural (RU-ORM) Zone". The applicant is proposing site -specific exception zones for the residential lots and school site. This includes the French School Site to be zoned to an "Institutional (1) Exception Zone". The residential lots are to be zoned to "Detached Dwelling Suburban Residential (RI-XX) Exception Zone", "Detached Dwelling Low Density Suburban Residential (R1-XX) Exception Zone" and "Detached Dwelling Transitional Residential (RI-XX) Exception Zone". Official Plan As noted previously, the subject lands are within the Yonge Street South Secondary Plan (OPA 34) and are located within the "Settlement Area" designation of OPA 48. The subject lands are also identified in OPA 34 by Schedule "CC' as Block A. Prior to the approval of any development within a Block Plan on Schedule "CC", a Block Plan is required as well as supporting studies. The lands are also identified on Schedule "AK and designated "Transitional Residential", "Low Density Suburban Residential" and "Suburban Residential". There are specific policies that shall apply to the development of the subject lands, and the proposal generally conforms with the policies of OPA 34. The gross residential density average over the constrained and unconstrained lands is less than 5 units per hectare (2 units/acre) as required by OPA 34. (Specific density is 4.4units per hectare). Within the three specific residential designations Transitional, Suburban Residential and Low -Density Suburban Residential, the proposal conforms to the standards identified for minimum lot area, minimum lot frontage, also requirements including minimum building setbacks and the preservation of a land in a landscaped and or natural condition, which the applicant has identified. Also, Urban Design Guidelines are required for this development. The applicant has provided an example of Design Guidelines for the Ballymore Development at St. John's Sideroad and Bathurst Street and will submit specific guidelines for this development in the future. -12- PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 4 - Report No. PL04-111 In regards to the request for an Official Plan Amendment to redesignate the school site lands from "Suburban Residential' and "Low Density Suburban Residential' to a "Major Institution" designation to permit the use of the lands for a French Separate Secondary School appears appropriate. The applicant has identified that the size and scale of the proposed school is similar to an elementary school. There is not the capacity to expand, and is limited to the French community (see Attachment 1). Approval of the proposal is reliant on background studies which must be prepared to the satisfaction of the Town and any appropriate agency or Authority. These studies have been submitted and have been reviewed by applicable departments, agencies and have been peer -reviewed. The studies have been evaluated to ensure compliance with the requirements of OPA 34 and OPA 48. An overview of the studies submitted is below, under "Supporting Studies" Section. The studies were also reviewed to ensure compliance with the requirements in Section 11.2 (Supporting Studies) in OPA 34. Oak Ridaes Moraine (ORM As noted previously, the lands are located with the "Settlement Designation" of the Oak Ridges Moriane Conservation Plan (ORMCP) implemented through OPA 48. This designation permits all uses approved within the Official Plan for the subject lands being OPA 34. However, the ORMCP policies must also be addressed along with the policies of OPA34 in the review of the application. The applicant has submitted studies and reports to address the requirements of the ORMCP. It should be noted that for the most part these studies/reports overlap with the requirements of OPA 34. Upon completion of the peer - review and resolution of all outstanding items the applicant will be required to demonstrate compliance with the requirements of the ORMCP as implemented through OPA 48. The requirements are for the most part set out within Section 19(3) and 31(4) of the ORMCP. Supporting Studies As noted earlier, approval of the proposal is reliant on background studies which must be prepared to the satisfaction of the Town and any appropriate agency or Authority. It is also a requirement within OPA 34, that a peer review of any supporting documentation be completed The peer -review was undertaken by North -South Environmental Inc., who completed the background work on OPA 34. The following are summary conclusions provided by North -South Environmental for the individual supporting studies provided by the applicant in support of the proposal. Natural Heritage Evaluation Conclusion: ELC mapping on the site omits cultural meadow, however, this is unlikely to change the conclusion: that significant species will not be affected by the development. Vegetation Preservation Study Conclusion: The reports needs to be clarified with regard to specific recommendations for —13— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 5 - Report No. PL04-111 long-term tree protection and maintenance. All areas of trees and other vegetation considered for removal should be clearly mapped along with characterization of tree species, condition and vegetation communities affected Breeding Bird Survey and Wildlife Habitat Analysis Conclusion: Our review concurs with the conclusion that the field should not be considered Significant Wildlife Habitat under the Oak Ridges Moraine Technical guidelines Landform Conservation Report Conclusion: (1)The proponent should prepare a grading map (i.e 'cut and fill' map) showing the post - development land surface including the amount of change and locations where elevations have increased, have decreased, and remain the same. This would be useful both in terms of site planning and municipal servicing. (2) The applicant must demonstrate to the extent possible, that adequate planning, design and construction practices will be utilized to keep the disturbance to the landform character a minimum. (3) The Town will need more information and options from the applicant prior to the final determination pertaining to compliance with the Landform policies of OPA 34 and 48. Phase 1 Environmental Site Assessments (CSDCCS and Ballymore Homes) Conclusion: (1) The Stantec report should include copies of all correspondence received from contacts pertaining to the Phase 1 Environmental Site Assessment. (2) Both reports should clearly illustrate the location of the one regulated waste generator site and describe the nature of the materials and any implications for the developments. Hydrogeological Study Conclusion: The hydrogeological Assessment provides sufficient information to provide a clear understanding of shallow sub -surface conditions beneath the property. The report is deficient in the following areas: (1) There is no characterization of the groundwater quality. (2) The groundwater flow system has been only partially described. (3) The hydrogeological setting descriptions focus on the shallow groundwater system and little information is provided on the deeper aquifers especially the regional municipal aquifer that supplies the Town of Aurora. (4) The significance of the internally drained areas with respect to groundwater recharge has not been adequately recognized. —14— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 6 - Report No. PL04-111 (5) The impact of the proposed development has been assessed qualitatively with little supporting documentation or reference materials to support the conclusions. (6) The report does not provide sufficient supporting information to conclude that `the resulting change in recharge, as a result of the development will be limited'. (7) The report provides an incomplete discussion of recharge enhancement opportunities on the property. (8) The report is lacking a discussion of the potential for impact on local private and municipal wells. (9) No details are provided on the discharge area to the south of the property nor how it is being protected by the development plan Compliance with Supporting Studies in OPA 34 As mentioned earlier, there are specific requirements within OPA 34 under Section 11.2. Compliance with OPA 34, was reviewed by North -South Environmental and they have identified outstanding issues that must be addressed. Firstly, they have determined that an Environmental Impact Study was note prepared, as required. They have stated that some form of an overall statement or summary combining the results of the various studies and examining the project holistically would be useful. In general, North -South concur that the site consists of former agricultural lands and contains no significant woodlands orwetlands nor any Key Natural Heritage Features or Significant Hydrological Areas as defined in the ORMCP. North -South does not fully concur with the results of the Landform Conservation Study, in particular there were no design alternatives to protect and enhance landform should have been prepared. Further, requirements in OPA 34 for assessments of soils, offsite impacts and potential well interference have not been met in the supporting documentation. Conclusion of Peer -Review North -South Environmental through its evaluation has identified the most critical deficiencies in the information. The first is the need for alternative lotting/road design along with their corresponding grading plans, in order to properly evaluate the potential impacts to the east -west ridge on the Ballymore Homes property. The second is the need for a detailed water budget in order to properly evaluate post -development recharge conditions. The third is groundwater quality sampling of the shallow groundwater zone in order to establish current conditions and likely impacts due to the development. In the Town's evaluation, the Town will need more information and options from the applicant to final determination pertaining to compliance with the Landform polices of OPA 34 and 48. In conclusion, North -South Environmental have stated that "the information provided to —15— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 7 - Report No. PL04-111 date, the planning framework, and their knowledge of the site, they believe that the area can be developed for residential and institutional uses without resulting in significant environmental impact. North -South Environmental and their consultants are prepared to work with the Town and the applicant to ensure deficiencies can be resolved and a suitable proposal is developed". Departmental and Agency Comments The applications were circulated internally and externally and to date the following comments were obtained: Building Administration Department The Building Administration Department has stated that the By-law shall include specific definitions and elements that will protect the intent of maintaining specific percentages of landscaped areas. The Department also suggests that warning clauses should be included in the offer of purchase and sale detailing site specific restrictions, which may be necessary to ensure landscaped areas remain intact. Also, setback restrictions are required to the GO Transit line. Other technical issues such as drainage and building code related items will be addressed at the time of building design. Leisure Services Department The Leisure Services Department have identified some issues which require review and clarification specifically the trail system, woodland clarification, buffering and parkland dedication. The Department have offered draft comments offering standard conditions including providing a Vegetation Preservation and Restoration plan and to provide landscape design plans including the installation of street tree planting, landscape structures, subdivision entry features, buffer planting or any other landscape features required by Urban Design Guidelines. Also, the owner shall provide landscape design plans and implement landscape works on -site for the stormwater management facility in accordance with the MOEE Stormwater Management Practices Planning and Design manual and in accordance with Town standards. The Regional Municipality of York The Region's Planning and Development Services Department has no objection to the land use change to permit a French Separate School Board, and offer the comment that access to the school site be limited to local streets and that mitigation measures shall be considered regarding noise/and or environmental impacts from CN Rail/Go Transit. In regards to the draft approval of the plan of subdivision, the Region does not support the plan at this time. The Region has stated that the Town of Aurora does not have the servicing capacity available to supply this development. Additional capacity will be available upon the completion of the 16th Avenue portion of the YDSS extension and the Southeast Collector Trunk Sewers. The anticipated completion of the 16th Avenue portion —16— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 8 - Report No. PL04-111 of the YDSS extension will increase capacity for the northern municipalities of the Region by mid-2008. In accordance to the Regional policy, draft approval may proceed 2 years from the anticipated availability of water and sewer infrastructure needed to service a particular development. The Region anticipates providing comments on the plan in 2006, and provide conditions at that time. GO Transit GO Transit has provided comments on the subject proposal. The development is located adjacent to the GO Bradford rail corridor, and have provided Draft conditions to be cleared by GO Transit. They have also reviewed the Noise Control Feasibility Study and have provided comments. Town of Richmond Hill The Town of Richmond Hill has provided comments, and do not have an objection to the Official Plan Amendment to permit a French Separate Secondary School. The applicant has advised the Town of Richmond Hill Engineering staff of the potential for the subject lands to be serviced through the Town of Richmond Hill, however any connection would require approval from Town of Richmond Hill Council. The have stated that until the Town of Richmond Hill Council has an opportunity to review the potential impact of these lands on servicing capacity downstream in Richmond Hill, the Town is not in support of the Zoning Amendment or Draft Plan of Subdivision. Other External Agencies Aurora Hydro has indicated that they have no objections to the Official Plan Amendment to permit a French School Board. They have stated however, that Aurora's Hydro's system capacity, reliability and servicing will be dependant on Hydro One providing additional transmission and transformation capacity by the winter of 2006 and the electrical requirements of the subdivision. The Public Works Department have not submitted a comment, however will have comments prepared for the Public Planning Meeting. Planning staff would like to note that the Public Works Department will have to ensure that the Stormwater Management Pond conforms to the requirements of the ORMCP as identified with OPA 48. The Toronto and Region Conservation Authority has not submitted a comment. For Council's information, the Lake Simcoe Region Conservation Authority requested that the Toronto Region Conservation Authority be the lead agency to deal with review, as only a small portion of the subject property is located within their jurisdiction. The Central York Fire Services Department, York Region District School Board and Ministry of Transportation have indicated that they have no objection to the proposed applications. —17— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 9 - Report No. PL04-111 Servicing Allocation As noted above in the Regions comments, no additional servicing capacity is available at the present time that would allow this development to proceed. While the School, being an institutional use does not require capacity, the residential development can not proceed without the allocation of servicing capacity. We are advised that the business agreement between the two owners of the property is that Ballymore will service both the residential and school parts of the site. The School Board will need approximately 12 acres of the 25 in the south part of the site and will sell the residual to Ballymore, the residential developer. This will provide some cash return to the School Board. As noted however this part of the site would not be able to proceed until 2008 when servicing become available. The only unallocated capacity currently available is the 200 units that have been held by Council for Core Area infill. Should Council wish to provide capacity from this reserve, it can do so, however there are a series of core area developers vying for the 200 unit allocation. In that respect however, it is noted that this capacity has been held in reserve since 2001. Community Response Staff have received correspondence from people in support of the proposed French Separate School Board. OPTIONS At the Public Planning Meeting, Council has the option of approving the applications in principle, subject to the resolution of outstanding issues, orthey have the option of denying the applications outright. If Council are generally in support of the proposal, there are three approaches it could take in dealing with application: • approve the school proposal but none of the residential given the servicing allocation constraints; • approve a small portion of the residential development; or, • reserve a decision on all of the residential development until servicing capacity is available. Notwithstanding the above, given the outstanding issues and in concert with any "in principle" decision Council might make, it is recommended that Staff report back as to the resolution of outstanding issues, as identified in this report those raised by community member and others at the Public Planning Meeting. Should Council decide to deny the applications, they should be cognizant of the Departmental and Agency comments and OPA # 34. �-C PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 10 - Report No. PL04-111 CONCLUSIONS The application is a joint venture between Ballymore Homes and Conseil Scolaire de District Catholique Centre-Sud. The applicants have applied for a Draft Plan of Subdivision along with an application for a Zoning By-law Amendment and an Official Plan Amendment. As illustrated on Figure 2, the applicants are proposing the development of the subject lands for 59 detached dwelling units on 10.46 ha (25.8 acres) of the site, and a French Separate Secondary School on 5.56 ha (13.73 acres) of the site. Staff are not in a position to recommend draft approval of the plan of subdivision at this time given servicing constraints and other outstanding technical issues. We do however suggest that the School building has merit, in that it can form a desirable architectural gateway feature to the community in concert with appropriate landscaping. It will also provide both a local and regional service that has the support of the community it serves. Insofar as the residential development is concerned the proposal also appears generally to meet the provisions of OPA # 34 and a high quality large lot residential development would be compatible with the existing estate lot development within the area surrounding to the west. The peer review finds the various supporting studies required by OPA # 34 are generally acceptable however additional work is required particularly in the area of Hydrogeology. Given the outstanding issues and comments that are outstanding it is recommended that Staff report back as to the resolution of the issues, as identified in this report and those raised at the Public Planning Meeting. This will also allow Staff to work with the applicant and the community to try and obtain the best possible form of development on the subject lands. FINANCIAL IMPLICATIONS The proposed residential development will be high quality given the large lot nature of the development, thus providing tax revenue. LINK TO STRATEGIC PLAN The Strategic Plan contains objectives to ensure high quality, comprehensive community planning to protect the overall investment of citizens in the community. Critical review of the subject applications through their respective processes will facilitate this objective. ATTACHMENTS Figures Figure 1 - Location Plan Figure 2 - Survey Figure 3 - Proposed Draft Plan of Subdivision Figure 4 - OPA Plan —19— PUBLIC PLANNING - SEPTEMBER 29, 2004 September 29, 2004 - 11 - Report No. PL04-111 Attachment 1 — Correspondence from Conseil Scholaire de District Catholique Centre- Sud PRE -SUBMISSION REVIEW Management Team Meeting - September 22, 2004 Prepared by: Cristina Celebre, Planner Extension 4343 SS e eib , M.C.I.P., R.P.P. ector f Planning -20- 2,> W 0 x i 4 ' (' a ) �� lL b 0 O Q $ � m a G� N m N Z J U x W � a m o 'off �l o aaq�apl3 9p j� w : 2 !/ o m !Its. o � zb LU m J m � N i:i;S`,-'.'�iii':' 0 ❑ („) ❑ c m :EfrrE:.�:::;:ii::r:i:";<ii��+:'i J W � m R:C : W F vi Z c+ 0 i I Z W 0 c.i i V W a z o W T' W h- Q ad F- X V e1 0 a w 0 i-- � a N 1.1. U) N J Z Z- J V LU Z CO LU ® m❑�} 13 w ,gCL --- _�w Qz W o c$u�xao aigsuloy a o J a u. 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Il,./ !r,I!\!r ;r\\ 1rrl\`''II"rr '�/_ /^ .`,/l !\'(r./r'I l ♦! `� 0°aPa0CLOJLr�V//�P7�0))))1Y- Pui��I• S'•r•ppdpo0600app0C80 0p000 od0o°0Oo00aOdPo000d °0a006°p'0p°°p 00P 0P0:0°6".•1rorl.O0-04.Ar°-0Og.00O00°00'0 °0°0ao00.44444c4'+L4: P°p°0a6op0 °0OPad0a6d0P0°04dV°0-0oP4p0PdoOPa oO°00oP°00oOo0dMoo0.w.1lad0PONpPp0O .SO0i d00 04O.0 P0001p0 .0 LU pp4001.0 :o0o00 Z 0 Z 0 0 W 0 2 N M� V w w 0 LL L LEI w J 00 UD yN J LU W F NZ ZW OV oLU Zc=Jv fANZ W=�W Z oa�s� O xUv�o �c�ivaN a ~ N ;� Ei ZLLJ -- ,Z V —i coin w Z d)gW � o ZI WWI - a a a — =) p It LLao 094TU --TC PtANN I NG69Q7F&EPTEMBER 29, 2084D PLANIF TRF CONSIML $COLAARE PE P19tk14T CATMOLPOUR CENTRE -SUP 110, ov mine Orea'rY Toronto ON M2M 1C8 TdWphone: 1416) 3e7-65e4 Sang fraig: 1 800 274.3764 September 23, 2004 Ms. Sue Siebert Director of Planning, Planning .Department The Towri of ,Aurora 100 John West Way, Box 1000 Aurora, ON 1,406J1 Dear Ms. Seibert, ATTACHMENT 9 TOWN OF AURORA PLANNING DEPARTMENT INITIALS SEP 2 4 2004 Re: Official Pisa Amendment, .Rezoning and :Draft Plan of Subdivision Ballymore Homes and Conseil scolalre de district catbolique Centre-Sud D-09-04.04, D-14-04-04 and D12-04-1 A, Part of Lot 71, Concession 1, E.YS, Tl,e Conseil scolaire de district catholique Centre -Sod along with Ballymore Homes will bt appearing at the upcoming Public Meeting on 29 September 2004 to support our application(s). We understand that the findings of the required reports and the Poor Reviews generally conih-tn that the proposals are satisfactory (subjact to further specific, detailed site analysis). The Board is very pleased to see that tho experts seem. to agree that the site characteristics lend themselves to the construction of a school and estate homes. We would like to raise a matter with you that was not considered in the background reports: the matter of servicing allooatiom It is our understanding that residential Draft Plan Approval and Zoning cannot be given unless water and sanitary sewer allocation for each house is given by the Tow, You are probably aware that we are purchasing approximately 23 acres of land in total. Approximately 13 acres of land is required for the school. The residual land will be acquired by Ballymore Homes, out site development and approvals partner. Ballymore has been extremely helpful to us in managing the applications, report preparation and agency follow up. Ballymore is also taking responsibility for our site servicing and access. As part of our arrangement with Ballyn3orc, they have agreed to acquire purchase rights to the residual land from us at such time as it is Draft Plan Approved, subj Oct to final approval by our board of trustees. Our land purchase is to close early in the new year. it is an all cash closing. 7t would be of si ntg 'frcant financial assiMnce to the Board for us to be able to dispose of residual land to Ballymore as soon as possible. This could be facilitated by the Town as we understand that the Town has a.re3wve of unit allocations. There are 13 units shown on our residual land. We are requesting that the Town consider allowing us to have 13 units of all9cat on, This would. enable Ballymore to acquire the land immediately, and, greatlyreduce our overall costs for the project. The Town's cooperation and assistance in this way would be greatly appreciated - Thank you for your cooperation. We look forwardto the Public Mooting on September. 29, 2004. Sincerely,, Conseil scoloire de ddii_st—r_i_cttceatholique Centre-Sud is Francc i Chief of Plant, Planning and Transportation e,c. BallymereHomes -Attn: GerardGervais f'$iGC PUBLIC PLANNING - SEPTEMBER 29, 2004 AGENDA fTE�q # ta6 TOWN OF AURORA PUBLIC PLANNING MEETING SUBJECT: Whitwell Developments Limited (First Professional) Part of Lot 21, Concession 3 Wellington Street and Leslie Street Official Plan and Zoning Amendment Applications File Nos. D09-10-03 & D14-28-03 respectively FROM: Susan Seibert, Director of Planning DATE: September 29, 2004 RECOMMENDATIONS No. PL04-112- THAT Council receive as information the following overview of the final peer reviews completed for Official Plan Amendment and Zoning By-law Amendment applications D09-10-03 and D14-28-03 respectively regarding Whitwell developments Limited, and, THAT in view of the completed peer reviews that Council provide direction to staff respecting any further information it requires to enable it to address the proposed official plan and zoning by-law amendments. BACKGROUND On September 9, 2003 Council authorized staff to engage a consulting team to undertake an independent peer review of the proposed Official Plan and Zoning By-law Amendment justification reports filed by Whitwell Developments Limited for a large format, Regional - serving Retail Commercial development. The Town has retained The Butler Group (Consultants) Inc. as the lead planning peer review consultants for the project and to co- ordinate the reviews of the following consultants: • Retail Market and Impact Analysis —Scott Morgan & Associates Limited ■ Economic Analysis — Gartner Lee Limited. ■ Urban Design — Brook Mcilroy Inc./Pace Architects ■ Traffic— Earth Tech Canada In order to ensure that all issues have been identified and addressed a Public Information meeting -was held on April 28, 2004 and a Public Planning meeting was held on June 23, 2004. A further Council meeting was held on August 17, 2004, to provide an update on the status of the peer reviews of the applications and provide Council with the draft findings of -26- PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 2 - Report No. PL04-112 the peer reviews. Since the August 17, 2004, public meeting, additional consultation has occurred between the Whitwell consultants and Town staff and the peer review team. Specifically, the Whitwell consultants have submitted additional information regarding planning, market, . traffic, and urban design issues. In addition, a revised Concept Plan has been submitted that caps the total amount of retail floor space to 540,000 sq. ft. This report provides an update of the August 17, 2004 Council report and also provides additional details pertaining to the revised concept plans. In addition to the applications being considered by the Town the applicants have also submitted applications to the Region of York who are reviewing the applications based on the policies of the Regional Official Plan and have retained John Winter and Associates to complete a peer review of the applications. Mr. Morgan has met with Mr. Winter and Mr. Jaque (MGP) to address concerns arising from Mr. Winter's review. A summary of this discussion and resolution of most market issues is attached to Mr. Morgan's final peer review. It should be noted that Mr. Winter has still not signed off on the proposal and that he requires further information from the applicant. Mr. Morgan has prepared an addendum response to Winter's concerns that is attached to his peer review. PROPOSAL Whitwell Developments Limited has submitted applications for Official Plan and Zoning By- law Amendments to permit "Regional -serving Commercial Uses" on the south part of the draft plan area accompanied by the required supporting studies. The original application proposed 561,775 square feet of Regional -serving commercial development on the site including a discount warehouse, warehouse membership club, either a large format supermarket or a home improvement outlet, ancillary retail uses, a ten screen cinema, service commercial uses (restaurants, personal services) and office commercial. The office commercial would be in addition to the retail, comprised of 175,000 square feet and be developed after the retail. The total development is 732,075 square feet, in addition to the State Farm holding to the north. The State Farm application for their Canadian Head Office (321,794 square feet) and other buildings that may be constructed on the State Farm part of the property are not subject to this application and are to remain as "Business Park". On July 26, 2004, after preliminary discussions with staff and the peer review team, Whitwell submitted revised four concept options, which decreased the total retail component to 540,000 square feet and increased the office component to 366,000 square feet. Since the August 17, 2004, public meeting, Whitwell has submitted a preferred revised Concept Plan that is attached to this report as Figure 3. Official Plan Amendment # 30, the 2B Secondary Plan provides that: "The development of the lands at Highway 404 have been identified by Council as a —27— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 3 - Report No. PL04-112 high development priority and are designated Business Park to encourage high quality building and site design in the near to long term. Regional -serving Retail Commercial uses are contemplated by this Plan because of the high visibility and accessibility of lands between Leslie Street and Highway 404 and the attractiveness of this location for uses serving not only the growing population of Aurora but also the surrounding urban and rural areas. However, the general nature and scale of future uses cannot be predicated at this time. Regional -serving Retail Commercial uses shall be considered by the Town subject to a public process and amendment to this Plan on lands designated Business Park on the north side of Wellington Street between Leslie Street and Highway 404, if the following conditions are met: 1. pre-eminent site, building and landscape design; 2. comprehensive planning to ensure consistent high quality image as described in Section 3.5 Business Park and 3.9 Urban Design of this Plan; (i.e. OPA # 30) 3. a traffic study prepared by a qualified traffic consultant which demonstrates that traffic impacts associated with the proposed development can be accommodated without adversely affecting the capacity of the road system or adjacent land uses and is acceptable to the Town and Region; 4. a market study acceptable to the Town; 5. impacts on surrounding existing and planned land uses are acceptable to the Town." As previously indicated a public information session was held on April 28, 2004, however there was concern expressed at the meeting that the notice for the applications was inadequate. Therefore due to the proposed size and scale of the applications the notice for the June 23, 2004 Public Meeting was enhanced to include the following: • Notice to all members of the Chamber of Commerce (This would be in addition to the original notice circulated by the chamber). • Notice in two sequential issues of the Newspaper. ■ Mailed notice to properties with commercial zoning in Town ■ Notice to all known ratepayer associations in Town. ■ Notice to all parties who requested notice. ■ Notice to the Town of East Gwillimbury, Town of Newmarket, Town of Richmond Hill and Region of York. • New sign notices on the property. ■ Notice mailed to all property owners within 120 metres (400 feet) of the site. Comments were received from Aird & Berlis on behalf of Loblaws Properties Limited and from Fogler, Rubinoff on behalf of Riotrin Properties and these comments have been forwarded to the peer consulting team for consideration. Aird & Berlis on behalf of Loblaws Properties Limited have subsequently indicated that they no longer have concerns with the proposal. 1214-M PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 4 - Report No. PL04-112 DRAFT PEER REVIEWS Revised Options On July 28, 2004, the applicant provided the Town with four revised concept plans (see attached) as well as additional documentation regarding the issue of the impact of the proposed power centre on the business park function. All are based on a revised floor area concept as noted above, with retail comprising 540,000 square feet and increased office floor area to 366,000 square feet. Since the August 17, 2004, public meeting Whitwell has submitted a revised Concept Plan in an attempt to address Town and peer review consultant concerns. The main purpose of the revised Concept Plan is to respond to staff and peer review team concerns that the original Concept Site Plan did not provide for a proper entranceway to the office component and that the mixing of retail with office uses would diminish the attractiveness of the office use and not provide for successful integration with the State Farm office complex located to the north. The proposed office component is grouped in a campus -style layout along Highway 404, and the main traffic system has been slightly revised to try to accommodate access to the office block without having to drive in front of the Wal-Mart Store. While staff and the peer review team are still assessing this Concept Plan, it is noted that this Concept Plan still requires that office workers and visitors must travel through the retail component (from west to east) to enter the office area. It is recommended that Whitwell explore other options which either link the office area directly to the State Farm Complex or shift the location of the proposed Wal-Mart department store southerly in order to provide an access from Street A (the main north/south collector road). It is felt that the revised Concept Plan is generally an improvement to the original application in that: • it provides for a larger component of office space to match the retail space; • the land area devoted to office space use has been increased to 22 acres; • the layout of the office campus is more functional and efficient; • the orientation of the primary retail stores is improved with two anchor stores now located west of Street A: • improved urban design with the gateway feature and more stores located closer to Wellington Street. It is expected that additional fine-tuning of this issue can occur as part of the site plan approval, if Council approves the proposed development. Whitwell's consultants have also provided information regarding examples of other regional -scale retail centres, which are integrated with office/business park elements including some "new format" retail uses. These examples include Square One/Mississauga —29— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 5 - Report No. PL04-112 City Centre, Scarborough Town Centre, Yorkdale, St. Laurent (Ottawa), Sherway Gardens, Fairview Mall, Bramalea City Centre, Vaughan Corporate Centre, and Winston Park (Oakville/Mississauga). Staff and the peer review team are acquainted with all of these developments. It is noted that most of these examples involve some office component that has developed surrounding an existing enclosed shopping centre or is part of a planned City Centre. To our knowledge, there are no examples of a power centre being developed concurrently with a modern business park in Ontario. The main concern is that the power centre does not overwhelm the business park use orjeopardise in anyway the success of this important employment centre. Whitwell consultants have submitted additional traffic and urban design improvements that they consider will embellish the office component as well as the overall quality of the retail power centre development. We will continue to discuss this issue with Whitwell's consultants. Market Stud Issues which were raised initially for discussion purposes regarding the Malone Given Parsons (referred to as MGP) market study are now largely resolved. The peer review has looked at a wide range of issues, including market support for the development, development scale, and timing. A finalized market peer review has been included as Appendix "A" to this report. The First Pro site was proposed for a large scale power centre to be built in two phases (first full years in 2005 and 2007 per MGP) to serve a broad regional trade area centered on Aurora. Revised market forecasts now under review expect first full years in 2006 and 2007, and the size of the retail component in the options presented would be less than the from 561,775 square feet originally proposed as a result of revisions to the concept plan. (see discussion of options above) The following outlines the conclusions of the Market Study Peer Review: (Please note that the following has been taken directly from the consultant report and as such 1.111, "MY" and "Me" and other similar terms refer to W. Scott Morgan the Market Peer Review Consultant) The process of obtaining additional input and comments from MGP leads me to conclude that: • Aurora has now matured to the extent that an additional retail commercial node with a strong regional orientation is warranted to attract regional trade and to reduce outflow; • Aurora has also matured to the extent that the community commercial node focused on Bayview and Wellington is well positioned to expand with "baby box" new format retail —30— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 6 - Report No. PL04-112 outlets to complement the existing anchor stores; and Aurora will require commercial space at both the Bayview/Wellington node and the First Pro site, as well as at locations elsewhere in the community in future years. This is borne out by the MGP revised analyses and the market tests attached to this peer review. As in other markets, I would recommend protecting the smaller scale retail uses in Aurora's historic core area and in the Bayview Wellington node. In this regard, Council might consider imposing a size restriction on the "baby box" new format retail units in the First Pro development, such as a 5,000 square foot minimum for First Pro's specialty DSTM stores, perhaps in combination with a specified number of units and/or a specified percentage of the total specialty DSTM space to be made up of units less than 5,000 square feet. Council might also consider imposing a use restriction that would prevent a beer store or a liquor store or both from relocating to the First Pro development. Such a use restriction would prevent Aurora's historic core area (which has the LCBO) and the Aurora Shopping Centre (which has the Beer Store) from losing important anchors that attract shoppers to the Yonge Street corridor. Council could revisit this use restriction in the future once First Pro's actual impacts are known. I do not see the need to restrict banks and other financial institutions from locating at the First Pro site given that eight banks are located on Yonge Street (six in Aurora's historic core area, one in the Aurora Shopping Centre, and one in the Canadian Tire Plaza). It is important for new format retail tenants seeking to enter the Aurora market to be able to choose between existing sites and the First Pro site. Such choice has the potential to keep rents competitive and prevent artificial restrictions on where new retailers might locate. The choice might prompt certain of these retailers to hasten their entry into the market. My peer review has not specifically assessed the impact of a 50,000 square feet expansion of Wal-Mart at the First Pro site. However, I would not object to the designation of this space subject to a subsequent market evaluation if a rezoning for this expansion is sought at a future date. This would provide flexibility in the event that existing or proposed zoning elsewhere in Aurora is not taken up. In conclusion, our overall recommendation from a market perspective is for Council to approve the First Pro proposal with appropriate size and use restrictions. Economic Impact (Please note that the following section is taken directly from the consultant report and as such and as such "WE" and other similar terms refer to Clayton Research the Economic Peer Review Consultants) —31— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 7 - Report No. PL04-112 The basic methodology used in the Clayton Report to determine the economic impacts of the proposed development is considered appropriate. Our review of the subject report examined the assumptions and background data incorporated in the analysis, as well as the various calculations. While we initially reported that the methods of calculation used by Clayton framed the proposed development in very optimistic terms with respect to potential economic impacts, we have since met with Clayton Research and agree that utilizing a sensitivity analysis examining a wider range of alternative assumptions is a more appropriate way to approach this analysis. The issue of most significance in the Clayton Report was the potential impact of the proposed development on employment lands within the Town of Aurora. It is noted that the original Clayton Study (July 2003) does not reflect the most recent (2004) Hemson assessment of Employment Lands and the value of this designation to Aurora's planning and development process. The Clayton Study initiates its analysis of employment lands with the assumption that vacant employment lands in the municipality total 378 net acres. By contrast, Hemson estimate in their report (2004) that with adjustments the current inventory is actually 330 net acres. Together with Clayton we have reached an agreement to base the sensitivity analysis on the employment land supply determined by Hemson Consulting. Previously we had concerns with the fact that the Clayton Report makes a conservative assumption in adopting the York Region employment forecast. Together with Clayton we have agreed to incorporate the possible implications for employment land requirements if the Town were to pursue stronger employment growth targets. The Clayton Report states that "the Town's share of future employment growth on "employment lands" is likely to be similar to that of other GTA municipalities" and therefore uses 55% as the basis for future employment land requirements. There is no allowance for the fact that if Aurora continues to attract office and prestige industrial uses to its employment lands, the percentage of employment on employment lands will continue to be higher than the GTA average. In order to address this concern, Clayton has agreed to allow an examination of the implications of higher employment land capture rates into the sensitivity analysis. While the Study's range of possible employment densities from 16-25 employees/net acre for the newly absorbed employment lands in Aurora is reasonable for consideration, the Study's assumption of using 10% for future contingencies is conservative and a range of between 10% and 20% seems to be a more reasonable consideration. Clayton has also agreed to this point. —32— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 8 - Report No. PL04-112 Based on the preceding assumptions, Gartner Lee's sensitivity analysis indicates that the implications of the proposed development on the employment land supply in the Town of Aurora may be more pronounced than contemplated in the original Clayton Report. With the agreement of Clayton Research to adopt the sensitivity analysis performed by Gartner Lee, we now agree that the initial site development concept may result in an employment land supply insufficient to accommodate planned employment growth to 2016. The revised site concept for the Whitwell proposal preserves an additional 22.5 acres of the site strictly for business park purposes, thus supplementing the planned employment function on adjoining lands to the north and south within this broader business park. Not withstanding all of the above however, potential longer -term impacts of the proposal are less of a concern. Even in the worst case of the sensitivity analysis, impacts are not such as to cause undo concern about the long-term adequacy of the employment land supply in Aurora. The potential deficit of employment lands may further be reduced with the relocation of the recreation centre that was to be placed on employment lands in the Wellington/404 area, resulting in a possible 29 acres of additional employment land supply. The release of 2C lands for development towards the middle of the next decade (i.e., 2013 — 2016) will reconcile the long-term employment land supply/demand balance. In terms of municipal finance, the Clayton analysis indicates thatthe development proposal may cause development related revenue to be realized sooner than would otherwise be the case in the absence of this proposal. Over the medium term however, Aurora and the Region can expect these lands to generate additional municipal revenue (above current revenue generated from vacant lands). While the Town, Region and School revenue generated through the proposal is significant, these one-time and ongoing annual revenues serve to support related municipal expenditures. As a result, no significant net fiscal benefit to the Town is anticipated. This is confirmed in Clayton's supplemental report which estimates the annual net operating and maintenance expenditures in providing service to non-residential uses compared to estimated property tax generation. The complete report on the economic peer review is attached as Appendix "B". Traffic The submitted Traffic Report is generally based on the assumptions used within the traffic analysis for the overall business park. The traffic report for the overall business park is currently under review as part of the registration of the subdivision. The Town's traffic consultants have provided detailed technical comments to Whitwell for their review and consideration. Whitwell is currently remodeling the traffic analysis based on the Town's background development potential and other factor raised by the peer review consultant. In summary, additional information and clarification of the above -noted issues is required by the applicant's traffic consultants in order to resolve the outstanding traffic and parking —33— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 9 - Report No. PL04-112 concerns. As noted previously the revised Concept Plan still does not fully address the internal circulation issues and both the peer review team and staff feel that this issue must be addressed prior to the site plan stage. Urban Design Guidelines The applicants have revised the guidelines in order to be consistent with the approved overall guidelines for the subdivision. The Town's peer review consultant is presently reviewing a submission made by Whitwell on July 14, 2004, as well as additional information provided since the August 17, 2004, public meeting. Urban Design issues are extremely important for this site due to its Gateway location at the entrance of the Town. The urban design guidelines which have been incorporated on the revised Concept Plan are still under discussion. It would be preferable if the guidelines could be approved priorto the adoption of the Official Plan Amendment and as such they could form an Appendix to the document. Planning The Butler Group have reviewed the applications by Whitwell Developments Limited and First Pro Shopping Centres for a proposed Aurora Gateway Centre retail commercial development in the Town of Aurora. The planning analysis of this application includes an examination of all supporting documentation prepared by consultants for the applicants as well as the draft comments of the Town's peer review consultants as set out in this report. A limited number of comments from the public that were made at the information meeting held on April 28, 2004, and the public meeting held on June 23, 2004. The following comments are intended to proffer planning opinions based upon the interim review of the above -noted documentation as well as the Provincial Policy Statement, Region of York and Town Official Plans, Town zoning by-law and other relevant materials. Given the amount of detailed information contained in the independent "Planning Report: Aurora Gateway Centre, Town of Aurora" (July 2003) submitted by Macaulay Shiomi Howson Ltd, we have not repeated factual information. Instead, we have attempted to provide an overview and independent planning assessment of what we believe are the principal planning issues before Town Council. Existing Retail Structure The existing historic retail commercial structure is primarily located on Yonge Street, which forms a "main street" for the Town. A second major node is under development on various parcels of land located on the west side of Bayview Avenue, north of Wellington Street. There are limited smaller scale retail services located on Wellington Street. This historic evolution of commercial uses on Yonge Street has resulted in a mature central place commercial function composed of a variety of retail forms including pedestrian- -34— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 10 - Report No. PL04-112 oriented downtown, strip plazas, several smaller shopping centres, and free-standing retail stores of all types and sizes. There are a number of anchor stores including Canadian Tire, Price Chopper, and Winners. While these different commercial forms provide a range of commercial functions, they are presently linked geographically as essentially one large linear commercial concentration. The emerging node on Bayview Avenue consists of a combination of big box uses and supermarkets including Sobeys, Zellers, Home Depot, and a new Loblaws is under construction at BayviewlSt. John's Sideroad. An application has been submitted to expand the Aurora Centre with an additional 88,000 square feet of retail space and a major cinema complex. It is expected that the total amount of gross floor area for this combination of retail activity along all of Bayview Avenue could be as high as 690,000 square feet. The commercial structure is generally deemed to be healthy and successful, and there are no significant vacancies. Proposed Commercial Application The application by Whitwell Developments Limited proposes to add approximately 540,000 square feet of retail/commercial power centre development located at the northwest quadrant of Highway 404 and Wellington Street East. The subject application proposes to redesignate and rezone the lands as a new format retail centre consisting of three anchor stores (Wal-Mart, membership warehouse club and home improvement centre or supermarket) and approximately sixteen free-standing smaller buildings (restaurants and specialty dstm retailers), and five free-standing office buildings. It is noted that the 10 screen multi-plex cinema complex is no longer part of the revised Concept Plan. The original concept for the centre proposed that it be developed in two phases with the first phase consisting of a total of 415,700 square feet and a second phase that would add a total of 171,900 square feet to the two anchor tenants (Wal-Mart and warehouse membership club, for an ultimate total of 587,600 square feet (subject to current discussions on the four revised options). The total site areas is 32.7 ha (81 acres). The site breakdown would be approximately 20.0 ha (49 acres) for the retail/commercial power center and 9.0 ha (23 acres) to be used as office/business park uses. The remaining area consists of roads and a storm water management pond. The option plans contemplate 540,000 square feet of retail/commercial and 366,000 square feet of office/business park uses. To the north of the subject lands is the State Farm site consisting of approximately 36 ha (90 acres) where the State Farm Office building consisting of 321,794 square feet is to be located. The State Farm lands are designated Business Park and have future potential for additional uses as permitted within the Business Park designation. To the south of the subject lands are additional business park lands for which some development applications are currently under consideration. —35— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 11 - Report No. PL04-112 Town of Aurora Official Plan It is observed that the Town has been very careful with respect to its commercial planning over the years and as a priority has attempted to maintain a healthy retail node along Yonge Street. Generally, new commercial growth has occurred incrementally and within the last number of years along Bayview Avenue. It is noted that the original approval of the Aurora Centre contemplated an enclosed shopping centre. The enclosure has not occurred and the present plan is to add additional retail floor area as free-standing developments. It is acknowledged that the Whitwell site has the only Official Plan designation that permits regional -serving commercial uses subject to a number of important qualifications. The key concern is the timing and phasing of development so as to ensure that there are no adverse impacts on the planned function of other commercial facilities located throughout the Town. Some consideration also needs to be given to the 18-20 acre Community Commercial site located at the south—east corner of Bayview and Wellington Street. This site is intended to serve both the needs of the immediate residents and the broader community in concert with the Morguard REIT and Home Depot/Trinity/Riocan lands discussed below. Its role in this function appears to be absent from the current submissions. The text of Official Plan Amendment No. 30 (213 Secondary Plan) has been set out in the Proposal section of this report. The onus is on Whitwell to prove that the various criteria set out in the Official Plan have been met including public input. While regional -serving retail uses are permitted subject to conditions, an Official Plan Amendment is still required and approval is not automatic. The Town has the ability to delay this proposed centre if it considers that the pre -conditions have not been met, or it can reduce the scale and design of the centre, if it considers that it will harm other retail centres in the Town or the Business Park use itself. It is apparent that there are no other future large scale commercial sites pre -designated in the Official Plan. Therefore, any other expansion to the current retail inventory would likely require a site specific approval including an amendment to the Official Plan and zoning by- law. It is noted that the approval of 540,000 square feet of retail development on the Whitwell site would likely preclude any other significant retail developments based on the current Official Plan and population growth estimates. The Whitwell application is the largest proposal for commercial development in the Town and when completed should become a true regional centre for both the Town and beyond. In terms of the commercial hierarchy it would be expected that the largest anchors and a wide range of DSTM merchandise would be provided that may not be available in other commercial centres of the Town. It would be expected that the other commercial centres as set out in the Official Plan including convenience commercial, community commercial, service commercial, and campus commercial would continue to provide other forms of retail service and a variety of other planned functions. However, in practical terms, the anchor stores that have located within these above -noted designations are also regional- -36— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 12 - Report No. PL04-112 serving. It is noted that the majority of new retail growth in the Province over the past five years has been in the form of the new format or big box retail. In larger urban municipalities, these retailers have tended to locate in larger power centers. The Aurora Centre which was originally intended to be an enclosed shopping centre is now developing as a smaller form of a power centre and most of the other development in the BayviewANellington corrider is stand-alone retail. The traditional key test is that the establishment of a regional power centre does not impair the planned function of these other retail centres so that they cannot perform their planned function and/or there is resulting urban blight. Neither of these latter outcomes is deemed to be in the public interest or representative of good planning. The Town's peer review market consultant has carefully assessed the impact of the Whitwell proposal on the existing retail centres in the Town. It is his conclusion that there will be no adverse impact on the long term planned function of these centres. The Official Plan designates the Whitwell site for Business Park uses. It is an objective of the Town to promote high quality office uses with exposure to Highway 404. The State Farm Insurance development is an example of the type of high quality office development that the Town is seeking. Generally, in the Greater Toronto Area retail power centres have not been combined with modern office business parks. There is a general concern that that the retail power centre not impair the expansion or future growth of this business park. It is considered essential that the jobs and assessment created by this type of development are maintained and enhanced. Revisions to the revised Concept Plan may need to be considered. Historically, once power centres are developed, there is in many cases pressures to allow additional retail uses on abutting lands. The lands south of Wellington Street are also designated for Business Park uses. It should be made clear that no additional retail uses should be permitted on adjacent lands in the future and that all of the retail uses be limited to the Whitwell site. Region of York Official Plan The Region of York Official Plan contains land use policies that effect the development of significant retail facilities and in particular developments in excess of 323,000 sq. ft. Policy 3.3.6 of the Plan requires the preparation of Region -wide impact analysis that address transportation requirements, the impact on existing and approved future retail facilities, transit access to the facilities, and the manner in which the proposal is supportive of the centre and corridor policies of the Plan. Policy 3.3.7 also requires more micro -based assessment including the meshing of the proposal's street grid and pedestrian system into the community; the mix of residential and office commercial land uses on each part of the proposal; the integration of the parks, —37— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 13 - Report No. PL04-112 natural areas, and other public spaces into the community; the relationship of the proposed buildings to the street; the distribution of floor space densities across the site and the avoidance of large expanses of parking areas. The Region has retained John Winter and Associates to conduct an independent peer review of the market study and impact evaluation report submitted by Malone Givens Parsons Ltd. on behalf of Whitwell Developments Limited. Mr. Winter has initially raised a number of concerns with respect to this report. The most significant conclusion of the Winter report is that the Wal-Mart, supermarket, and home improvement centre are not needed at this time, and should be delayed for three to five years after a 200,000 sq.ft. first phase proceeds with a cinema, warehouse membership club, restaurants, and ancillary stores and services. As previously indicated, Mr. Winter is not in a position to support the market study submitted by the applicant at this time and has indicated that due to the application for the cinema on Bayview Ave that he can only support 150,000 within phase one of the development. Notwithstanding Mr. Winter's concerns, Mr. Morgan is recommending approval of the Whitwell application subject to a number of restrictions. An addendum to Mr. Morgan's final peer review in which he addresses Mr. Winter's concerns is attached to his final report (please see Appendix "A"). Provincial Policy Statement The Provincial Policy Statement (PPS) provides policy direction on matters of Provincial Interest, and all Official Plans and amendments shall have regard to the PPS. Generally, the main concerns that are applicable to these commercial applications, involve issues related to efficient, cost-effective development and land use patterns, development on full municipal services, maintaining the well-being of downtowns and main streets, and the preservation of significant environmental areas. Based on further review and analysis, it is our opinion that the application has had appropriate regard to the Provincial Policy Statement. OPTIONS The requested peer reviews have now been completed and vetted by all embers of both the Town's team and those of the applicants. Should Council wish further analysis based on input received at the public meeting or resulting from peer review presentation, instructions for such further information should be included in Council's resolution. In the alternative, if Council is satisfied with the peer review conclusions, it can direct that draft that official plan official plan and zoning by-law amendments be presented for its consideration upon the resolution of the outstanding issues outlined within this report. con PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 14 - Report No. PL04-112 CONCLUSIONS • The existing Official Plan provides for a regional -scale commercial facility on the Whitwell site subject to meeting a variety of tests. In this context, the Official Plan ultimately envisions three distinct major commercial nodes for the Town including the Yonge Street node, Bayview /Wellington node, and the Whitwell node. • The planning analysis indicates that the planned function of both the Yonge Street node and Bayview/Wellington node should not be impaired or significantly weakened by the Whitwell development. While the lands at the south east corner of Bayview and Wellington have been designated Community Commercial for a number of years, it is apparent that no recent applications have been submitted for retail use for this vacant parcel and the owner is not objecting to the Whitwell proposal. It is probable that this will be a long term Community Commercial development or it may be converted to another use. Therefore, we have no concerns with respect to the potential delay the Whitwell development may have on this property. • It is evident that the full approval of the Whitwell node at this time will not have adverse impacts particularly on the Bayview /Wellington node. In our opinion, no time delay of the Whitwell application is required in order to allow the proposed expansion and maturation of the Bayview/Wellington node. It is our recommendation that the Aurora Gateway Centre be given the first opportunity to secure a cinema complex for the Town. • The market justification for the entire Whitwell application has now been completed. Based on Mr. Morgan's recommendations, it is appropriate to approve the applications as revised. Mr. Morgan recommends that the zoning by-law have a provision that requires that there be a minimum unit size of 5,000 sq. ft. for a portion of the "baby box" component of the centre in order to attract larger stores that will not directly compete with the Bayview/Wellington centres or the downtown. Furthermore, Mr. Morgan recommends that the zoning by-law not permit a liquor store or beer store in order that the existing facilities located respectively in the downtown and the Aurora Centre not re -locate. These issues as well as restricting the overall size of the retail component can be appropriately addressed in the zoning by-law. • Concerns were initially raised with respect to the loss of employment land and the compatibility of a power centre with a successful office business park. Every effort should be made to achieve as much office development and full employment jobs on the Whitwell site as possible. Mr. Keir, the Town's economic peer review consultant is now satisfied that there will be an adequate supply of employment land to the year 2016. Future employment land beyond this period will ultimately be satisfied with the development of the 2C lands to the north. —39— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 15 - Report No. PL04-112 • Notwithstanding the above, it is imperative that the highest priority be given to the development of the Whitwell lands as a modern business park. The subject application for a regional power centre should not prejudice or impair the planned function of this area as a major employment node. The proposed implementing Official Plan Amendment should contain policies that emphasize this important role and protect for the office component located along Highway 404. The revised Concept Plan that reserves lands adjacent to Highway 404 for office development only in a campus format should be approved as it maintains a continuous business park use along Highway 404 both north and south of Wellington Street. It is probable that all of the urban design issues can be satisfactorily resolved over the next few months, and the completed policies may form part of the Implementing Official Plan Amendment and will be implemented as part of the site plan approval process. Additional work on several technical traffic issues will be required. Staff and the peer review team among other things have requested that Whitwell explore a direct access to the office campus area (that is not through the retail area) and/or a potential connection to the State Farm office complex. Additional discussions and negotiations should occur with the representatives of Whitwell Developments Inc. to resolve outstanding traffic, urban design and site plan issues. It is recommended that Council provide direction to staff and the peer reviewteam detailing any further information it requires to enable it to make a decision respecting the proposed official plan and zoning by-law amendments. FINANCIAL IMPLICATIONS The cost of the Peer Reviews is being charged back to the applicants. The applicants have submitted a Letter of Credit to cover the total upset costs of the peer reviews. LINK TO STRATEGIC PLAN The Strategic Plan has goals of well -planned growth and fiscal responsibility; efforts to balance these goals are pursued to the extent possible in dealing with development applications. ATTACHMENTS Figure 1 — Location Plan —40— PUBLIC PLANNING — SEPTEMBER 29, 2004 September 29, 2004 - 16 - Report No. PL04-112 Figure 2 — Concept Plan Figures 3 — Revised Concept Plan Appendix A — Market Peer Review Appendix B — Economic Peer Review Appendix C - Draft Minutes from Peer Review Meeting Appendix D — John Winters comments on meeting minutes Appendix E — Draft Official Plan Amendment Document PRE -SUBMISSION REVIEW Management Team Meeting — September 22, 2004 Prepared by. David A. Butler, MCIP, RPP, Consulting Planner to the Town of Aurora ZA- eu an i art, M.C.I.P., R.P.P. rector of Planning —41— LOCATION PLAN APPLICANT: WHITWELL DEVELOPMENTS LIMITED (FIRST PROFESSIONAL) FILE: D09-10-03 & D14-28-03 AURORA PLANNING DEPARTMENT SEPTEMBER 29, 2004 00 SUBJECT LANDS FIGURE 1 Location Plan created by the Town of Aurora Planning Department, MorclL4i22004. Modified September 22nd, 2004. Base data provided by York Region. PLANNING - SEPTEMBER 29, 2004 -PUBLIC t'o' D OM q III ----------- ------- -- -- -oiltl RED CD A= 201 412 a UI (D m W w z zi z <> 0_3 W. gn LOU- CLOD 9 W0 u- 0 -J Wo C' Cit 4 LU _j er Lu G.c'q Z Lwu tu- M IL LU U) 0 Lii W W 0 j 3LIC PLANNING - SEPTEMBER 29, 2004 cn w W O U) LL D Q �d. W Q a cl N W N. Z W Z H U) W 0 wm z r z J M W w D C9 u. PUBLIC PLANNING - SEPTEMBER 29, 2004 -45- PUBLIC PLANNING - SEPTEMBER 29, 2004 Appendix "A" W. SCOTT MORGAN, MCIP, RPP, W. Scott Morgan & Associates Limited, Consultant, Land Development and Planning, 15 Grenadier Heights, Toronto, Ontario M6S 2W5 Tel: (416) 762-6384 Fax: (416) 766-6503 September 10, 2004 Ms. Susan Seibert, MCIP, RPP, Director of Planning, The Town of Aurora, 100 John West Way, Box No. 1000, Aurora, Ontario L4G 6J1 Dear Ms. Seibert: Re: FINAL PEER REVIEW of Malone Given Parsons Ltd.'s (MGP's) July, 2003 "Market Study & Impact Evaluation, Aurora Gateway Centre, Wellington Street East & Highway 404, Town of Aurora, Ontario", Prepared for Whitwell Development Limited, (c/o First Pro Shopping Centres), Aurora, Ontario Acronyms: WMC: Warehouse Membership Club FCTM: Food & Convenience Type Merchandise DSTM: Department Store Type Merchandise OSC: Office Supplies & Computers TBA/HAAS: Tires, Batteries & Accessories and Home & Auto Supply HIRM: Home Improvement Related Merchandise GLA: Gross Leasable Area Introduction: Further to your authorization, I have finalized my peer review of the Malone Given Parsons Ltd.'s (MGP's) market study and subsequent revisions submitted in support of Whitwell Development Limited's (First Pro's) proposed Official Plan Amendment and Rezoning applications. The most recently revised applications seek permissions for a retail/commercial power centre development of up to 540,000 square feet (potentially up to 590,000 square feet with a future 50,000 square foot expansion of the Wal-Mart) located on 57.84 acres (excluding the 11.6 sum PUBLIC PLANNING - SEPTEMBER 29, 2004 acre office/hotel component) in the northwest quadrant of Highway 404 and Wellington Street East. The original component phasing was reported in MGP's study (page iv) as follows: Phase 1— 2005 Wal-Mart 132,600 Sq. Ft. WMC 129,700 Sq. Ft. Specialty DSTM 92,700 Sq. Ft. Service & Restaurant 23,200 Sq. Ft. 10-plex Movie Theatre 37,500 Sq. Ft. Subtotal Phase 1 415,700 Sq. Ft. Phase 2 — 2007 Supermarket or Home hnprovement Centre 114,000 Sq. Ft. Specialty DSTM 46,300 Sq. Ft. Service & Ancillary 11,600 Sq. Ft. Subtotal Phase 2 171,900 Sq. Ft. Total Phases 1 & 2 587,600 Sq. Ft. The revised component phasing now anticipates first full years of operation in 2006 and 2007 rather than 2005 and 2007. The revised component phasing also might not include a movie theatre as originally proposed depending on whether the Aurora Centre secures a cinema (there is only room for one cinema), and the supermarket might proceed as one of two modules (i.e. a 114,000 square foot module as originally proposed with 75,240 square feet of conventional supermarket space, or more likely a 55,000 square foot module with 49,500 square feet of conventional supermarket space). The tables in MGP's original study were subsequently revised to include consumer telephone survey shares that are now weighted by zonal population levels. As a result, I make reference to MGP's original text but revised tables, as well as to MGP's textual and tabular responses to questions or issues that I raised during the peer review process. MGP has provided good assistance to me in the course of the peer review. In response to my draft peer review tables, MGP reproduced my tables and prepared alternative tests for each category of space investigated (a series of memorandum reports consolidated under a covering letter of July 23, 2004 from MGP to Scott Morgan). As a result of detailed discussions of my draft peer review tables and MGP's written responses, I have prepared final revised peer review tables. These incorporate various assumptions that test the outside margins of risk to the planned function of existing and approved retail commercial developments elsewhere in Town. The assumptions underlying these tables differ in some respects from alternatives that MGP has suggested, and hence, my tabulations should be regarded as somewhat more conservative than MGP's. -47- PUBLIC PLANNING - SEPTEMBER 29, 2004 John Winter Associates Limited's Peer Review: The MGP study was peer reviewed by John Winter Associates Limited (JWAL) in February 23, 2004 for York Region. MGP has prepared a full and acceptable point by point response which I was able to discuss in detail with MGP and John Winter at a market analysts' meeting at John Winter's office on August 23, 2004. Key concerns raised by JWAL included the following: 1. MGP's consumer telephone survey was conducted from March 11 to March 31, 2003 (including the March break). JWAL suggested that skewing of the results may have resulted from respondents being distracted by the Iraq war, and that the results may not be random because over 20,000 calls were required to obtain a quota sample of 1,100. In response, MGP states that Mr. Paul Gauthier of Network Research has confirmed that the Aurora survey was conducted in accordance with that firm's professional procedures and standards of the Professional Marketing Research Society (PMRS). The ratio of 23 calls per completed survey is typical of the regional scale suburban surveys that Network Research has undertaken in other markets during different months, and the response and refusal rates in the Aurora survey are not related to the March break or respondents' preoccupation with TV coverage of the Iraq war. In Mr. Gauthier's experience, the ratio of calls to completions is higher in large urban centres where the public is frequently surveyed (respondent fatigue) and potential respondents have access to call identifier and call screening devices. The ratio of calls to completions is also higher in rural sub -areas where inconsistencies between postal codes and Zone boundaries lead to extra calls to ensure the integrity of the sample. Moreover, the longer the survey, the higher the refusal rates. hi addition, Mr. John Smart of SM Research (who as a specialist in survey sampling serves on PMRS's Response Rate Committee) has provided an opinion letter stating that his review of the Aurora survey finds it to have been a random sampling that is representative of shopping patterns in the Aurora market. 2. MGP used 2001 census income data for Zones 1 & 2, but 1996 census income data for Zones 3, 4 & 5. JWAL suggested that the 2001 census data should have been used in all zones. MGP has since corrected this in the revised MGP tables using more current data that was not available when the MGP report was originally drafted. 3. JWAL questioned why MGP did not explicitly factor in the Vaughan Mills development at Major Mackenzie and Highway 400, or the Wal-Mart development in Keswick. MGP's response is that the competitive environment in each Zone was considered in deriving future estimates of local capture from each Zone. Also taken into account were the effects of a potential Wal-Mart in Stouffville. 4. JWAL also questioned the survey shares for individual supermarkets (e.g. Sobeys). own PUBLIC PLANNING — SEPTEMBER 29, 2004 4 In my experience, the consumer telephone survey is a reliable instrument for estimating the aggregate supermarket shares by survey Zone. However, consumer telephone surveys do not typically provide a reliable basis for estimating the shares obtained from each Zone by individual supermarkets. For example, the random geographic distribution of respondents may lead to the understatement of the support (survey shares) for supermarkets having strong close -quarter draws, and the overstatement of the support for supermarkets with broader draws. MGP has used consultant judgment to derive the market shares of individual supermarkets based on the aggregate and individual shares derived by survey, as well as the size, age, and banner of individual supermarkets, the location and strength of competing facilities, and in-store inspections. 5. JWAL asked MGP to weight the survey data by population (the proportion of surveys did not match the proportion of the residents in certain zones). The revised MGP tables are now weighted appropriately. 6. JWAL was concerned that the extension of Highway 404 may not proceed quickly enough to permit Phase 1 to have the extensive reach attributed to it by MGP. The MGP analysis is based on the existing road patterns, and is not reliant on future highway improvements. 7. JWAL noted that the proposed cinema is not supported by any market information, although JWAL was of the opinion that Aurora has no alternative cinema locations. MGP is of the opinion that the market should decide the preferred location, either at the Aurora Gateway site or the Morguard site (Aurora Centre). 8. JWAL took issue with the high local capture rates attributed to the proposed Wal- Mart, particularly from affluent Zone 1 residents (40%), noting that the shares projected for a peripherally located Wal-Mart in Aurora are almost double those obtained by the more centralized Wal-Mart in Newmarket (22.3%). MGP's response is that the local capture rate is determined principally by the local competitive market. In Newmarket, the competitive environment includes multiple promotional and major department store choices and a substantial array of big box retail. In comparison, Aurora will have only two promotional department stores (Zellers and Wal-Mart). Hence, MGP assumed 50% outflow from Zone 1 and 50% local capture (39.5% to Wal-Mart and 10.5% to Zellers). MGP recognizes that the higher sales implied by the higher local capture rate from Zone 1 accruing to Wal- Mart accentuate Wal-Mart's impacts. Conversely, JWAL's suggestion that Wal- Mart's local capture rate is too high in Zone 1 implies that Wal-Mart would otherwise have lower sales and lower impacts than tested by MGP. 9. JWAL was concerned that with addition to the new Loblaws, th square feet per capita in 2007) e the introduction of the First Pro supermarket in provision of supermarket would greatly exceed the space in Aurora (6.8 average provision of —49— PUBLIC PLANNING - SEPTEMBER 29, 2004 supermarket space in most other markets (3.0 to 3.5 square feet per capita). JWAL suggested that this would be sufficient to cause closure(s). With the reduction in size of the First Pro supermarket to 75,240 square feet of conventional supermarket space (exclusive of non-food "plus departments"), or more likely, to 49,500 square feet of conventional supermarket space, plus the inclusion of 70,000 square feet of conventional supermarket space at Loblaws on St. John's Sideroad, the future per capita space ratio declines to 4.34 to 3.96 square feet in 2006 (i.e. 295,890 to 270,150 square feet divided by 68,160 persons in Zone 1). Although such per capita space ratios might appear to suggest moderate short-term supermarket over -storing, this simplistic arithmetic calculation does not take into account the service areas of certain individual supermarkets that extend to populations beyond Zone 1 (e.g. Loblaws will serve a portion of Newmarket's population and hence would cause the per capita space ratio to decline). 10. JWAL stated that the Home Depot was seen as a partial assist to resuscitate the Aurora Centre (Zellers and Sobeys), and that the market support was not particularly favourable for two home improvement centres. The proposed Rona and the existing Home Depot will tend to split the home improvement market. The home improvement market continues to grow through real expenditure growth that as yet does not appear to have peaked. The two chains compete directly, and frequently locate near each other and in the same communities. Although MGP agrees that the home improvement market in Aurora will be very competitive over the short term, MGP sees no indication of impacts leading to the closure of Home Depot or attendant risks for the existing Home Hardware. 11. JWAL was concerned that the First Pro site would duplicate existing anchor stores in and proximate to Aurora Centre (Zellers/Sobeys/Home Depot) and act as an intervening opportunity to any trade now coming to the Aurora Centre from the east. JWAL suggested that the Aurora Centre has not yet settled into its market, and hence, the First Pro development may be premature and may undermine the Aurora Centre's planned function. MGP finds that the strength of the Bayview Wellington Area has increased over time. MGP also suggests that the change in timing of the first phase to 2006 rather than 2005 as originally proposed, together with continued growth in market potential and good prospects for outflow recovery, help to reduce or eliminate JWAL's concerns about prematurity. JWAL concluded that beyond the 2003 base year, the Wal-Mart, supermarket, and home improvement centre should be delayed for three to five years (to 2006 to 2008) after a 200,000 square foot first phase proceeds with a cinema, WMC, restaurants, and ancillary stores and services. MGP has tested for phased development between 2006 and 2007. Hence, there is only one year's difference between MGP's timing and the outside margin of John Winter's suggested delay. —50— PUBLIC PLANNING - SEPTEMBER 29, 2004 At the market analysts' meeting at John Winter's office on August 23, 2004, JWAL, MGP, and Morgan agreed that a one year difference in first full year of operation should not present serious problems. JWAL advised that if the Town were to approve a first full year of operation of Phase 1 in 2006, he would not oppose such a decision. A copy of the sign -off letter summarizing the technical discussions of the August 23, 2004 market analysts' meeting is attached as Appendix B. Other Planned Retail Commercial Developments: My peer review is conducted in the market context of other planned retail commercial developments within Aurora and Richmond Hill. Within Aurora, about 130,000 square feet are designated commercial but are unbuilt (per MGP page 21 overleaf revised as reproduced in attached Appendix C), excluding 115,012 square feet within the "Future Bayview Wellington Cluster Expansion (NW)" which requires a rezoning and the submission of supporting market and traffic studies: Trinity Development (NW Wellington East & Bayview) 38,689 Sq. Ft. Aurora Centre Expansion Area (Morguard) 39,505 Sq. Ft. Sobeys Expansion Area (Morguard) 50,000 Sq. Ft. Subtotal 128,194 Sq. Ft. The currently approved caps on the Community Commercial designations on the Morguard REIT and the Home Depot/Trinity sites (375,000 square feet) and the adjacent Campus Commercial designation (100,000 square feet where Sobeys is located) together total 475,000 square feet. An application to delete the Campus Commercial designation and extend the Community Commercial designation over the combined site area would result in the same total amount of space (475,000 square feet) but without the requirement for an enclosed mall. This 475,000 square foot cap could be increased to 590,000 square feet subject to market and traffic justification. Hence, the lands comprising the Morguard REIT and the Home Depot/Trinity sites could support somewhat more space (590,000 square feet) than is proposed on the First Pro site (540,000 square feet) without any subsequent expansion of the proposed Wal-Mart. Including the 106,685 square foot Loblaws store now being built at Bayview and St. John's Sideroad, plus about 160,000 square feet at other locations along Bayview north of Wellington (reference: attached Appendix C), the total potential space along Bayview Avenue would approximate 850,000 square feet, or over 300,000 square feet more than First Pro without an expanded Wal-Mart. Within Richmond Hill, the First Pro proposal would also be competitive with Riotrin Properties (Richmond Hill) Inc.'s proposed 475,000 square foot power centre in the northeast quadrant of Leslie Street and Elgin Mills Road that is now before the Ontario Municipal Board. First Pro is opposing Riotrin's proposal. —51— PUBLIC PLANNING - SEPTEMBER 29, 2004 Scope of Peer Review: I have reviewed the empirical inputs into MGP's revised analysis and am generally satisfied that these inputs conform to standard practice. As a matter of record, I accept the following parameters in MGP's revised tables: • base year of 2003, and test years in 2006, 2007, 2008, 2009, and 2011, assuming a first full year of operation of Phase I in 2006, and a first full year of operation of Phase 2 in 2007, • 2002 value of the dollar, updated by one year of real growth to 2003 to correspond to the 2003 base year population levels, • current and future population levels unadjusted for the Census undercount, • 2000 per capita household income indexes for Zones 1 to 5 (MGP pages 34-35), • regression equations for indexing incomes to expenditures (MGP page 36), • real per capita expenditure growth for the DSTM (department store type merchandise), TBA/HAAS (tires/batteries/accessories and home & auto supply), HIRM (home improvement related merchandise), and FCTM (food & convenience type merchandise) categories, • current (base year) local capture rates derived from the consumer telephone survey, • inflow estimates based on the licence plate surveys conducted in February, 2003 at nine locations (3,276 plates in total), • Wal-Mart sales performance levels (including in its first full year of operation), and • Sales per square foot tests for the identified residuals. Because MGP has not adjusted the population forecasts for the census undercount, I have recast the analysis to incorporate the final revised undercount for 1996 (the 2001 figures are preliminary). By 2011, this adjustment increases the trade area population by 8,515 persons. Unlike MGP, which includes TBA/HAAS spending in their definition of DSTM, I have chosen to exclude TBA/HAAS expenditures from DSTM expenditures, and instead do a separate run for this category. My reason for doing so is to separate out spending in such stores as Canadian Tire to gauge whether any expansion potential exists, and whether a closure/relocation is possible. Consequently, the specialty DSTM residuals that I identify are necessarily lower than MGP's. Sensitivity Testing: In the accompanying sensitivity tests, I have employed certain inputs that are modestly at variance with MGP's, although such variance would only marginally affect the outcomes. These inputs include the following: • Ontario per capita 2002 DSTM expenditures excluding TBA/HAAS (MGP at $3,522, versus Morgan at $3,511), • Ontario per capita 2002 TBAMAAS expenditures (MGP at $259, versus Morgan at $281), -52- PUBLIC PLANNING - SEPTEMBER 29, 2004 Ontario per capita 2002 HIRM expenditures (MGP at $280 retail and $241 wholesale, versus Morgan at $271 retail and $217 wholesale), and • Ontario per capita 2002 food expenditures (MGP at $1,846, versus Morgan at $1,900). I have employed my independent judgment on the future local capture rates that Aurora would attract assuming that the First Pro site is developed at the scale proposed. The most noticeable differences occur in Zone 5 (area west of Leslie Street in the Town of East Gwillimbury and area east of Highway 400 in the Township of King) where I think that draws from the westerly portions of this zone will be weaker than originally estimated by MGP. The shares that I apply are compromise shares after deliberations with MGP. I have also applied inflow factors that generally correspond to MGP's estimates. However, I have applied the percentage inflow factors only to 2006. This maintains the dollar inflow at the 2006 level over the balance of the forecast period. In my view, MGP's alternative of maintaining the percentage inflow over the entire forecast period could have the effect of exaggerating the dollar inflow potential. For example, MGP's department store inflow would increase by $21.6 million from a 2003 base year level of $5.0 million (page 82) to $26.6 million by 2011 (facing page 83). This compares to Morgan's increase in department store inflow of $15.4 million from a 2003 base year level of $5.1 million to $20.5 million by 2011 (attached Table 6). The inflow effects are much more pronounced for the specialty DSTM category. Although I understand MGP's argument that my treatment of inflow in this manner is probably conservative, it at least helps define the outside risks of sales transfer if inflow is more constrained than estimated by MGP. Principal Findings of Peer Review: The accompanying tables summarize in tabular form the principal findings of my peer review. The tables in large measure parallel the format used in the MGP analyses. Tables Ila) & (b): Population Forecasts Unadjusted & Adjusted for Census Undercount Table 1(a) reproduces the population forecasts used in the MGP study, whereas Table l(b) adjusts the population forecasts by the 3.24% undercount for York Region as footnoted. The populations for 2001 correspond to those in attached Appendix A-1 where per capita household income indexes are calculated for the year 2000 from the 2001 census. The income indexes are translated by means of the footnoted regression equations into per capita expenditures for the FCTM, DSTM, TBA/HAAS, and HIRM categories. My per capita household income indexes differ modestly from MGP's revised tables: —53— PUBLIC PLANNING - SEPTEMBER 29, 2004 MGP Morgan Zone 1 132.5 132.0 Zone 2 109.7 110.3 Zone 3 157.3 155.8 Zone 4 98.7 94.4 Zone 5 132.4 138.4 Tables 2-5: Study Area DSTM, TBA/HAAS, HIRM, and FCTM Expenditure Potentials Tables 2-5 multiply the populations in attached Table 1(b) by their corresponding per capita expenditures in Appendix A-1. Real growth of 1.5% per annum compounded to 2011 is applied to all expenditure categories except FCTM, which is increased by real growth of 1.0% per annum compounded to 2011. Table 6: Study Area Department Store DSTM Demands & Residual Space In attached Table 6, my department store shares of DSTM spending are higher than MGP's because of the exclusion of TBA/HAAS spending in my DSTM definition. The base year local capture is from MGP's consumer telephone survey. Future local capture rates are not greatly dissimilar to MGP's estimates except in Zone 5 where in my view the First Pro site on the eastern periphery of Aurora will not draw as strongly as MGP estimates from as far west as Highway 400 (17% by 2007 increasing to 19% by 2009). For purposes of this peer review, I have adopted a future local capture rate of 8.0% (a compromise share after discussions with MGP). Table 6 includes rounded estimates of Wal-Mart's performance, but these are not dissimilar to MGP's (actually estimated under separate cover by The Climans Group hic. for MGP). In my opinion, these estimated sales volumes and their subsequent ramping -up appear to be reasonable expectations at least until 2007 (i.e. when Wal-Mart's sales reach $77.6 million or $585 per square foot). I have discounted the first full year of operation in 2005 below $500 per square foot (to $485 per square foot), as did Climans/MGP (to $486 per square foot). The resulting residual potentials can support the proposed Wal-Mart without significant sales transfers directed against Zellers. If Wal-Mart were to achieve such ramped -up sales ($77.6 million by 2007, $86.2 million by 2008, and $96.8 million by 2011), Zellers would lose only about $0.1 million by 2007 before regaining its base year sales levels or more by 2011. The modest impact in 2007 would cause Zellers sales performance to drop from $172 per square foot in 2003 to $171 per square foot in 2007 (minus 0.5% impact). By 2011, the proposed Wal-Mart would achieve about 5 times the sales of Zellers. One difference between my estimates and those of MGP is in the amount of inflow that Wal- Mart could attract. With a Wal-Mart store in Uxbridge, another slated for Keswick, and another proposed in Stouffville, I am not confident that inflow would increase in dollar terms over the entire projection period. MGP's additional inflow (over and above what I would expect) would be sufficient to eliminate the modest sales transfers in 2007 and contribute to future sales gains by both stores. —54— PUBLIC PLANNING — SEPTEMBER 29, 2004 to The future local capture from Aurora residents ranges from 50% to 60% in Table 6 (compared to MGP's maximum share of 58%). This would still yield a significant amount of outflow to support major department stores in Newmarket and Richmond Hill. This would not be out of line with the split between major and discount department store shares across the province (roughly 50% to 60% in favour of discount department stores), but represents a shift from current shares (roughly 70% in favour of major department stores for Zone 1 residents per MGP Appendix C-2). One other concern is that Zone 1 residents (from Aurora and northern Richmond Hill), with very high per capita household incomes, now spend only 15.3% of their department store dollars in Wal-Mart stores (per MGP Appendix C-1). This is much lower than in any other Zone, and may in part reflect the congestion affecting trips from Aurora principally to the Wal-Mart in Newmarket (Woodland Hills Shopping Centre) and to a lesser extent to the Wal-Marts in Markham (Markville Shopping Centre) and Richmond Hill (Bayview & Major MacKenzie). In Table 6, assuming that Zellers maintains its $10.0 million share from Zone 1, Zone 1 residents would spend almost: • 40% of their department store dollars in Wal-Mart stores in 2006 (i.e. $38.1 million in Wal-Mart sales compared to $96.2 million in Zone l's department store potential), and 45% of their department store dollars in Wal-Mart stores in 2007 (Le. $44.0 million in Wal-Mart sales compared to $98.2 million in Zone 1's department store potential). In my opinion, there is a risk that Zone 1 residents may not shift their spending away from major department stores to this extent. This is important because Zone 1 contributes about 55% of Wal-Mart's projected sales in 2007, and even more in subsequent years. The overall implication is that if high income earners in Zone 1 are not induced to spend such proportions of their department store dollars in Wal-Mart, then the First Pro Wal-Mart will not perform as well as projected by Climans/MGP beyond 2007 or tested by myself. The principle cited by MGP is that lower Wal-Mart shares translate into lower Wal-Mart sales and in turn lower impacts. My acceptance of this principle helps support my conclusion that the proposed Wal-Mart will not have significant adverse competitive effects on Zellers in Aurora Centre. Table 7: Study Area Specialty DSTM Demands & Residual Space Table 7 contains specialty DSTM shares that are net of the department store share of DSTM spending and net of the WMC share of DSTM spending. The base year Aurora capture estimates are derived from the consumer survey results adjusted to net out TBA/HAAS spending based on data supplied to me by MGP. —55— PUBLIC PLANNING - SEPTEMBER 29, 2004 tt In Table 7, Aurora's future local capture rate from Zone 1 residents rises to 60% (compared to an initial 60% and an ultimate 67% in MGP's table facing Page 66). The future local capture rates for residents of all other Zones are not dissimilar to MGP's estimates. A key finding of Table 7 is that the specialty DSTM residuals would support between: • 250,000 square feet (rounded) and 300,000 square feet (rounded) by 2007, and • 340,000 square feet (rounded) and 400,000 square feet (rounded) by 2011. This compares with 242,000 square feet (rounded) of specialty DSTM space that could proceed along Bayview north of Wellington, excluding the First Pro site, but including 98,000 square feet (rounded) for a "Potential Future Bayview & Wellington Cluster Expansion" (MGP's wording) that would require rezoning supported by market and traffic impact studies and a site plan acceptable to the Town (see Table 7 overleaf and MGP page 21 overleaf). This also compares with 381,000 square feet (rounded) of specialty DSTM space that could proceed along Bayview north of Wellington and at the First Pro site. This also compares with 283,000 square feet (rounded) of specialty DSTM space that could proceed along Bayview north of Wellington and at the First Pro site if the 98,000 square feet requiring rezoning for the "Potential Future Bayview & Wellington Cluster Expansion" does not proceed. The implication is that there would be a significant shortfall in residual potential and unacceptable impacts only if all of the 381,000 square feet of specialty DSTM proceeded by 2007. However, this is an unrealistic expectation given that the rezoning required for the "Potential Future Bayview & Wellington Cluster Expansion" will likely be delayed until 2011 at which time the available residual potential (340,000 square feet to 400,000 square feet) would be sufficient to support all such space. The 283,000 square feet (rounded) of specialty DSTM space that could proceed along Bayview north of Wellington and at the First Pro site (assuming that the 98,000 square feet requiring rezoning for the "Potential Future Bayview & Wellington Cluster Expansion" does not proceed in the short to medium term) would fall fully within the margins of the identified residual space by 2007. This finding fully supports the specialty DSTM component sought by First Pro with phasing over two years to 2007. This 283,000 square feet (rounded) of specialty DSTM space would represent an 80% increase in the existing 349,400 square feet of specialty DSTM space in Aurora (per MGP's DSTM inventory of 549,900 square feet in Appendix A-5 adjusted to net out Zeller's 114,400 square feet and 66,100 square feet of TBA/HAAS space). I agree with MGP that there is no need to give, or advantage to giving, preferential treatment to any other proposed addition of commercial space since all can be fully phased into this market in the period 2006 to 2007. —56— PUBLIC PLANNING - SEPTEMBER 29, 2004 12 The Aurora Gateway Centre can proceed over the same time frame as the other potential developments without adverse competitive effects, including undue competition for available tenants. Table 8: Study Area TBA/HAAS (Canadian Tire) Demands & Residual Space The key finding of Table 8 is that only about 15,000 square feet (rounded) of Home & Auto Supply space could enter this market by 2007, and 30,000 square feet (rounded) by 2011. The market implication is that the existing Canadian Tire store is unlikely to undergo a closure/relocation from its current site. Table 9: Study Area HIRM Demands & Residual Space The key finding of Table 9 is that that First Pro's proposed second phase development of a Home Improvement Centre such as Rona (Building Box) at 114,000 square feet could enter this market by 2007 without significant or prolonged directional sales transfers against Home Depot which will have had about four years to settle into the market. This assumes high levels of future inflow (30%) and high levels of contractor sales (35%). This also assumes a future 65% local capture rate from Zone 1 residents (up from 27.5% in the base year). This means that despite the presence of Home Depot, significant amounts of HIRM expenditure potential currently flow out of Aurora, and will continue to do so (but to a lesser extent) even after a second new format Home Improvement Centre enters the market. By 2007, Home Depot could face transfers of up to $3.9 million (the short -fall in residual potential in 2007), although the more realistic expectation is for the new First Pro Home Improvement Centre to split the short -fall in residual potential with Home Depot (i.e. both stores would face declines of roughly $2 million or 5% of Home Depot's base year sales). Full recovery and potential sales gains would emerge by 2008. Assuming "like competes with like", the expectation is that First Pro's Home Improvement Centre will not compete as directly with the smaller 23,800 square foot Home Hardware operation at 289 Wellington Street East as it will with Home Depot. The market implication is that both new format Home Improvement Centres can effectively serve this market with mutual benefits flowing from having regional and community -oriented sites. Both stores will achieve more or less the same sales volume in 2007 and 2008 before sales increases are achievable after 2008. As a final note, it is not uncommon for there to be two new format Home Improvement Centres operating in the same market, or even a short distance away in the same street quadrant without the first entrant being placed at risk or made vulnerable to competition from the newest entrant. Table 10: Study Area Supermarket Demands & Residual Space Table 10 incorporates a number of assumptions on the scale of new space entering the market: —57— PUBLIC PLANNING - SEPTEMBER 29, 2004 13 • The new Loblaws store under construction at Bayview and St. John's Sideroad is assumed to have a first full year of operation in 2005 and to contain 70,000 square feet of conventional supermarket space (66% supermarket), net of other "plus departments" and mezzanine space in an overall building area of 125,277 square feet (per site plan), and • The proposed supermarket on the First Pro site is assumed to have a first full year of operation in 2006 and to contain either 49,500 square feet of conventional supermarket space (90% supermarket) within an overall building area of 55,000 square feet, or 75,240 square feet of conventional supermarket space (66% supermarket) within an overall building area of 114,000 square feet. These assumptions are in contrast to my draft peer review tables, which assumed 90% conventional supermarket space in Loblaws (tested at 88,830 square feet) and First Pro (tested at 102,600 square feet). Table 10 assumes a significant reduction in the amount of conventional supermarket space to be added to the market, testing 66,430 fewer square feet with the 55,000 square foot module, (compared to 46,190 fewer square feet with the 114,000 square foot module). In Table 10, I have assumed that the supermarket share of FCTM spending would not increase as a result of a 55,000 square foot supermarket proceeding at the First Pro site plus the new Loblaws on St. John's Sideroad. This is in contrast to MGP's assumptions (i.e. 2.5% increases in Zones 1 & 2, and 5.0% increases in Zones 3, 4 & 5). With many intervening supermarket shopping opportunities all over the Study Area, I am not lead to believe that two additional supermarkets in Aurora (new Loblaws plus First Pro) would alter supermarket shopping patterns across great distances to the degree assumed by MGP. I have otherwise paralleled MGP's assumed local capture rates. Given that I assume a higher per capita FCTM expenditure for Ontario than MGP, I calculate about 6% more dollars available to Aurora supermarkets than MGP. In Table 10 overleaf, I apply the. same survey -based base year and fixture supermarket shares as MGP. While 1 have doubts about a telephone survey's ability to accurately predict the sales of individual supermarkets, and suspect that the predicted base year sales of Sobeys (Aurora Centre) and IGA (St. Andrews) are too low, I have none -the -less applied MGP's survey shares. These two stores are the lowest performers on a square foot basis in the base year ($463 and $470 per square foot respectively), but such performances are well within industry averages. All other supermarkets perform well above industry averages, particularly No Frills at the Aurora Shopping Centre. The opening of supermarkets on the Loblaws and First Pro sites represents an 80% to 100% increase in the amount of existing supermarket space depending on which module First Pro selects. The directional impacts are expected to be greatest against No Frills (Aurora Shopping Centre) and Dominion (Aurora Village). While the directional impacts cause the sales Im PUBLIC PLANNING — SEPTEMBER 29, 2004 14 performance levels of both of these stores to fall significantly, these stores start from very high base year performances, and even with impacts, remain well above industry averages. The Sobeys store and the IGA (St. Andrews) are assumed to gradually increase their sales volumes to levels well above their base year performances. The Price Chopper (Yonge Street) experiences large declines in sales initially from a high base year performance, with the result that it remains well above industry averages over the projection period. The overall average performance per square foot of Aurora supermarkets remains high throughout the projection period, thereby supporting the notion of adding new supermarket space to better serve the community. MGP also tested the larger 114,000 square foot module, which is patterned on a Loblaw Properties Limited's new format concept, and found that it could proceed on First Pro's site without adverse competitive effects. Although the larger module appears to fit based on MGP's assumed tenant (a new format Loblaws banner) and market share assumptions, I have focused on the smaller module as the most likely and practical tenant option. My finding is that the larger module does yield higher impacts, but these all fall within acceptable tolerances. Table 11: Study Area Specialty Food Demands & Residual Space In Table 11, the consequences of approving the First Pro supermarket are for a declining market support base for the specialty food sector. Initial sales transfers will dissipate by 2009. Thereafter, sales gains emerge. Table 12: Study Area Warehouse Membership Club (WMC) Demands In Table 12, I have paralleled MGP's assumed shares of DSTM and FCTM spending, as well as the local capture rates. I have modestly altered the inflow assumptions (Morgan at 25% versus MGP at 35%) and the proportion of wholesale sales to businesses and institutions (Morgan at 33% versus MGP at 25%). The analysis supports the introduction of a WMC into Aurora, although whether it is a Costco or Sam's Club has yet to be determined. Costco is differentiated from Sam's Club by appealing to the more affluent who seek the low prices typically offered on high quality consumer goods. As analysts, we do not yet have the collective knowledge of how a Sam's Club functions in the Ontario market since so few have been open for so little time. New Format 10-Plex Cinema MGP did not conduct a quantitative analysis of First Pro's prospective new format cinema, and a cinema use has tentatively been dropped from First Pro's site plan application. —59— PUBLIC PLANNING - SEP.TEMBER 29, 2004 15 Typically, a quantitative analysis would necessitate obtaining for the Toronto TVM gross box office receipts, theatre rankings, numbers of screens, and market shares for Famous Players Inc., Loews Cineplex Entertainment, and various independent operators. This information can be purchased from ACNielsen EDI, 8350 Wilshire Boulevard, Suite 210, Beverly Hills, CA 90211.It might also involve consulting such Statistics Canada publications as Catalogue No. 87-211 Annual (Canada's Culture, Heritage and Identity: A Statistical Perspective). Aurora has sought to attract a cinema for some time. An application has been submitted for a cinema on the Morguard site on Bayview north of Wellington. A cinema in the vicinity of Aurora Centre would help strengthen the community level commercial functions that have been built or are planned for this area. However, this is a use that might also benefit from a regional location such as offered by the First Pro site. Market forces will ultimately determine the best location based on the available options Additional Issues Arising From Peer Review Process: The First Pro site is being proposed for a large scale power centre to be built in two phases (first fill years in 2006 and 2007 per MGP's most recent submission) to serve a broad regional trade area centered on Aurora. At this scale, it has been argued that the First Pro power centre could have strong competitive effects on certain anchor stores on Bayview Avenue north of Wellington Street East, including Zellers, the Home Depot, and Sobeys, as well as the Loblaws store now under construction one -and -a half miles to the north on St. John's Sideroad (opening November 2004). The key concern was that reduced shopping traffic to any of these anchors would weaken the nodes or centres in which they operate. Response: It is stressed that the concentration of retail space at Bayview and Wellington at the Aurora Centre and the Trinity site has improved this node's market positioning since Zellers began operation in 1997, and the expectation is that it will continue to do so. The addition of Home Depot and the development of adjacent retail on the Trinity site, together with Morguard's further development of vacant retail lands around Zellers and Sobeys will help this node to further strengthen and consolidate into a unique and diversified commercial complex. With the ongoing expansions of and improvements to this node, it is expected that existing and new tenants will benefit from mutually reinforcing draws, and will be better able to withstand competition from the Aurora Gateway Centre. Moreover, existing and new tenants in the Bayview and Wellington node have the opportunity to benefit fiom the regional draws of the First Pro site by potentially accessing a customer base that is too far removed for this node to attract by itself. On the department store side, Zellers has not been able to significantly improve its market share, as evidenced by Zone l's 85% (rounded) outflow of department store spending as confirmed by MGP's consumer telephone survey. It is expected that Wal-Mart can improve PUBLIC PLANNING — SEPTEMBER 29, 2004 16 the local capture rate while still leaving significant expenditure outflow available for the support of major department stores in particular in Newmarket and Richmond Hill. It has also been argued that the First Pro site has the potential to duplicate the regional scale and tenant mix of retail facilities anticipated on Bayview Avenue north of Wellington Street East. Response: The scale and type of retail facilities on Bayview Avenue north of Wellington Street East are differentiated from the First Pro power centre for the following reasons: • First Pro's Aurora Gateway Centre is a new format regional power centre by virtue of its location, highway exposure, regional access, size, tenant composition, and market function, all of which will contribute to its anticipated regional drawing power; • Certain new format tenancies in the Bayview-Wellington node might overlap with others at the First Pro site, although such overlap is a common occurrence between regional shopping centres and community shopping centres in Ontario, and would not detract from their respective planned functions within the Town's commercial hierarchical structure; • The linear commercial development along Bayview Avenue north of Wellington does not comprise a single regional node like the proposed Aurora Gateway Centre with an integrated design under one management; and • the Bayview-Wellington node is not functionally linked to other commercial sites extending along Bayview Avenue about one -and -a -half miles to the north to the new Loblaws store under construction on St. John's Sideroad, where intervening commercial sites fall under different ownerships and management, and will have different site sizes, tenancies, functions, store formats, designs, trade or service areas, and locations. The argument has also been made that existing anchor uses on Bayview Avenue (Zellers, Sobeys, and Home Depot) would be vulnerable to impact from certain new format anchor uses at the First Pro power centre. Response: The recent addition of Home Depot, the adjacent development underway at the Trinity site, ongoing development of vacant lands around Zellers and Sobeys, the expectation for a cinema complex to locate at the Aurora Centre, plus additional population growth in the immediate vicinity, are expected to allay any such vulnerability to impact. At this stage of its evolution, the Bayview-Wellington node will continue to gain strength with ongoing expansions and improvements that will better enable existing and prospective tenants to compete effectively with the Aurora Gateway Centre. Anchor tenants such as Zellers, Sobeys, and Home Depot can and do co -exist with like - competitors in the same market, and tend to settle into their markets faster and more easily when market demands are increasing, as is the case in Aurora. —61— PUBLIC PLANNING - SEPTEMBER 29, 2004 17 The investigations in this peer review reveal that sufficient short to medium term market potential exists to support not only the First Pro development, but also other planned sites enumerated in Table 7 overleaf. Under these market conditions, the Bayview Wellington community commercial area can be expected to successfully emerge as a unique and attractive shopping node. The same can be said for designated sites to the north on Bayview Avenue. MGP has advanced the argument that timing is a significant factor in the ability to introduce the Aurora Gateway Centre into this market successfully, and that it is important that the initial phases be implemented as soon as possible. At the same time, MGP expects it may be a number of years before development is completed at Aurora Centre, although the ultimate phases of expansion of the "Future Bayview Wellington Cluster Expansion (NW)" and First Pro's Wal-Mart, for which there are no current applications, will involve increasing the capacity of both nodes through rezoning and submission of appropriate market and traffic studies. I accept MGP's position that the most appropriate solution is to encourage the phased development of both the Aurora Centre and the Aurora Gateway Centre concurrently. The MGP and peer review analyses of the market support for the major tenant categories demonstrate that phasing of development along the Bayview corridor and at the Fast Pro site can proceed in the same time frame without risk of significant adverse competitive effects. Conclusions & Recommendations: The process of obtaining additional input and comments from MGP leads me to conclude that: Aurora has now matured to the extent that an additional retail commercial node with a strong regional orientation is warranted to attract regional trade and to reduce outflow; Aurora has also matured to the extent that the community commercial node focused on Bayview and Wellington is well positioned to expand with "baby box" new format retail outlets to complement the existing anchor stores; and • Aurora will require commercial space at both the Bayview/Wellington node and the First Pro site, as well as at locations elsewhere in the community in future years. This is borne out by the MGP revised analyses and the market tests attached to this peer review. As in other markets, I would recommend protecting the smaller scale retail uses in Aurora's historic core area and in the Bayview Wellington node. In this regard, Council might consider imposing a size restriction on the "baby box" new format retail units in the First Pro development, such as a 5,000 square foot minimum for First Pro's specialty DSTM stores, perhaps in combination with a specified number of units and/or a specified percentage of the total specialty DSTM space to be made up of units less than 5,000 square feet. -62- PUBLIC PLANNING - SEPTEMBER 29, 2004 18 Council might also consider imposing a use restriction that would prevent a beer store or a liquor store or both from relocating to the First Pro development. Such a use restriction would prevent Aurora's historic core area (which has the LOBO) and the Aurora Shopping Centre (which has the Beer Store) from losing important anchors that attract shoppers to the Yonge Street corridor. Council could revisit this use restriction in the future once First Pro's actual impacts are known. I do not see the need to restrict banks and other financial institutions from locating at the First Pro site given that eight banks are located on Yonge Street (six in Aurora's historic core area, one in the Aurora Shopping Centre, and one in the Canadian Tire Plaza). I also do not see the need to restrict a cinema use at the First Pro site since the market will ultimately determine the optimal location between two available options (Morguard or First Pro). It is important for new format retail tenants seeking to enter the Aurora market to be able to choose between existing sites and the First Pro site. Such choice has the potential to keep rents competitive and prevent artificial restrictions on where new retailers might locate. The choice might prompt certain of these retailers to hasten their entry into the market. My peer review has not specifically assessed the impact of a 50,000 square feet expansion of Wal-Mart at the First Pro site. However, I would not object to the designation of this space subject to a subsequent market evaluation if a rezoning for this expansion is sought at a future date. This would provide flexibility in the event that existing or proposed zoning elsewhere in Aurora is not taken up. In conclusion, my overall recommendation from a market perspective is for Council to approve the First Pro proposal with appropriate size and use restrictions. Respectfully submitted, W. Scott Morgan, MCIP, RPP (W. Scott Morgan & Associates Limited) Original Sent By FAX (416) 926-0045 to the attention of Mr. David Butler —63— PUBLIC PLANNING — SEPTEMBER 29, 2004 W. SCOTT MORGAN, MCIP, RPP, W. Scott Morgan & Associates Limited, Consultant, Land Development and Planning, 15 Grenadier Heights, Toronto, Ontario M6S 2W5 Tel: (416) 762-6384 Fax: (416) 766-6503 September 21, 2004 Ms. Susan Seibert, MCIP, RPP, Director of Planning, The Town of Aurora, 100 John West Way, Box No. 1000, Aurora, Ontario LAG 6J1 Dear Ms. Seibert: Re: Response to John Winter & Associates Limited's (JWAL's) Peer Review Comments of September 17, 2004 for York Region Regarding Malone Given Parsons' (MGP's) Retail Market & Impact Analysis, Proposed Large Format Retail Centre, Aurora, Ontario As a culmination of the market consultants' meeting and on -going discussions, John Winter (JWAL) has submitted a subsequent memorandum (JWAL to Jeryl Jaque and Scott Morgan, September 17, 2004) re -iterating concerns that he feels are as yet unresolved. Most of the issues raised by JWAL are covered in my Peer Review dated September 10, 2004 (i.e. Issues 1-11 on pages 3-6). Two issues that apparently are still unresolved to JWAL's satisfaction relate to Issues 4 and 8. The issue of Sobeys' market share is resolved in my mind by my comments under Issue 4.I can provide no further elaboration other than my stated opinion. The issue of Wal-Mart's site share of 40% (originally raised in Section 6.3, page 6 of 14, JWAL to James E. Stiver, Senior Planner, York Region, February 23, 2004 and re- iterated in JWAL's September 17, 2004 memo) is covered in my comments under Issue 8. Rather than repeating those comments, I will expand on them as follows: In the first place, JWAL insists that MGP's estimated Wal-Mart site share of 40% obtained from Zone 1 residents is too high compared to the Newmarket Wal-Mart's site shares obtained from Aurora residents as confirmed by surveys conducted by JWAL in —64— PUBLIC PLANNING — SEPTEMBER 29, 2004 1997 and 2000, and by MGP in 2003 (JWAL implies these are site shares — Scott Morgan has not reviewed those studies to confirm this). I contend that the Newmarket Wal-Mart's site shares obtained from Aurora residents are not relevant to the Aurora market except as a matter of potential outflow recovery, and provide a poor proxy for what site shares the Aurora Wal-Mart might obtain from Aurora residents. The reasons are several: The Newmarket Wal-Mart obtains a low site share from all Aurora residents (regardless of distance separation, whereby conceivably higher site shares are obtained from Aurora residents living closest to the Newmarket Wal-Mart). MGP's Zone 1 consists of populations resident in Aurora and the northern part of Richmond Hill. To apply the Newmarket Wal-Mart site share obtained from Aurora residents to Zone I would ignore the fact that Zone 1 (Aurora and the northern part of Richmond Hill) is essentially one city removed from Newmarket. One simply cannot equate the Newmarket Wal-Mart site share obtained from Aurora residents with a proposed Aurora Wal-Mart site share also obtained from Aurora residents (plus north Richmond Hill residents) because the Wal- Mart is proposed in Aurora (same city) as opposed to being one city removed. JWAL also argues that the Aurora Wal-Mart cannot obtain 40% + site shares at 5 km. distance (presumably measured from Yonge Street) if the Newmarket Wal-Mart (4 km. distant at Mulock) and its relocated successor Wal-Mart (7 km. distant at Woodland) do not exceed a site share from Aurora residents of 12.5%. My response is that distance by itself is not the major determinant of the Newmarket Wal- Mart's site share obtained from Aurora residents. JWAL's assertion ignores travel time and congestion, and the broad competitive array of other stores in the intervening distance. hi my opinion, a Wal-Mart site closer to home in Aurora would overcome some of the impediments to a higher Newmarket Wal-Mart site share obtained from Aurora residents. In my opinion, the Local Capture of department store potential is the preferred alternative to the site share analysis. MGP tested the market using both the site share analysis and market share (local capture) analysis. I adopted the latter approach in my Peer Review. With the Aurora Wal-Mart, the intuitive market expectation is for the split between major department stores and promotional department stores to go from a current level strongly in favour of major department stores to a future equilibrium moderately in favour of promotional department stores. From my reading of JWAL, the starting point is Wal-Mart's sales estimates (supplied to MGP by The Climans Group Inc.). I agree with MGP that the Guelph precedent sets the tone for testing the outside risk of the proposed Wal-Mart in Aurora. If the site share is lower than 40%, then the consequently lower Wal-Mart sales would translate into lower impacts. I also agree that since no examples of an affluent community having a low Wal- Mart site share could be identified, it would then be appropriate to test a lower range of site shares. JWAL appears to disagree with the test of a range of site shares. —65— PUBLIC PLANNING — SEPTEMBER 29, 2004 In summary, I would characterize JWAL's concern about the Aurora Wal-Mart site share as a technical issue that is being blurred by an insistence that a site share from Aurora residents accruing to a city once removed (Newmarket) should be representative of a site share from Aurora residents accruing to the same city (Aurora). Moreover, I do not see the relevance of this technical matter to any regional planned function implications. It does not appear that JWAL has linked any of these technical issues to any regional interest matter. I trust this further clarifies my sign -off on the minutes of the market consultants' meeting. Yours truly, W. Scott Morgan, MCIP, RPP (W. Scott Morgan & Associates Limited) Original Sent By FAX (416) 926-0045 to the attention of Mr. David A. Butler Original Also Sent By E-mail: dabnabutlerconsultants.com: sseibertna town.aurora on ca• and jkyle(a),,town.aurora.on.ca PUBLIC PLANNING - SEPTEMBER 29, 2004 -67- PUBLIC PLANNING — SEPTEMBER 29, 2004 APPENDIX "B" Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 prepared for: Town of Aurora prepared by: Gartner Lee Limited reference: date: GLL 40-201 September, 2004 distribution: 2 Town of Aurora 1 Butler Group 1 Gartner Lee Limited PUBLIC PLANNING - SEPTEMBER 29, 2004 Table of Contents Letter of Transmittal Addendum Correspondence — Clayton Research Associates / Gartner Lee Limited Page 1. Introduction....................................................................................................................... 1 1.1 Background.........................................................................................................................1 2. Study Scope, Findings and Conclusions.......................................................................... 2 2.1 Study Data Sources.............................................................................................................3 3. Peer Review....................................................................................................................... 3 3.1 Methodology and Key Assumption Review.......................................................................3 3.1.1 Adequacy of Employment Land Supply................................................................3 3.1.2 Employment Land Inventory (Supply)..................................................................4 3.1.3 Employment Land Requirements...........................................................................6 3.1.4 Share of Employment Growth on Employment Lands..........................................7 3.1.5 Employment Density.............................................................................................. 9 3.1.6 Contingency Factor ............................. :................................................................ 11 3.1.7 Comparison of Employment Land Needs and Supply.........................................11 3.2 Employment Impact of Development Proposal................................................................15 3.3 Municipal Finance Impact of Development Proposal.......................................................15 4. Review Conclusions and Recommendations................................................................18 List of Tables Table 1. Estimated Share of Total Employment Accommodated on Employment Lands ......................8 Table 2. Employment Density on Employment Lands..........................................................................10 Table 3. Calculation of Employment Land Needs, Town of Aurora, 2001-2016 (Peer Review SensitivityAnalysis).................................................................................................................12 Table 4. Sensitivity Analysis on Employment Lands............................................................................14 Table 5. Town of Aurora Development Charge Summary Non-residential Charges - 2004.................16 Table 6. Region of York Non-residential DC Rae per sq. ft. Phase-in..................................................16 Appendices A. Municipal Revenues to be Generated by the Proposed Development (2.0921/40201-n.rrsiO4) ® —69- Gartner Lee PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 1. Introduction The Town of Aurora retained Gartner Lee Limited to provide a peer review of Economic Implications of the Aurora Gateway Centre, Clayton Research Associates July 3, 2003 (hereafter referred to as the Study). The purpose of the Peer review exercise is to: a) examine the Study research and analysis methodology; b) confirm the Study sources and interpretation of secondary source data; c) examine the reasonableness of the Study assumptions; d) identify outdated data incorporated in the Study and provide data updates where readily available; e) examine the reasonableness of the Study conclusions given the analysis provided; and f) identify data or information gaps and areas of investigation where further study is warranted. 1.1 Background The Town of Aurora has received applications for Official Plan and Zoning By-law Amendments to allow retail commercial development on lands designated Business Park in the Secondary Plan, Official Plan Amendment #30. Whitwell Developments Limited, a company in the First Pro Shopping Centres corporate group, proposes the Aurora Gateway Centre as the commercial component of a large mixed -use development, the Aurora Gateway Business Park. The site lands are situated at the northwest quadrant of the intersection of Wellington Street East and Highway 404 in the Town of Aurora. The Business Park concept includes the State Farm Head Offices and a multi -tenant campus style business park. The commercial centre is a regional scale retail/service/hospitality facility in an open unenclosed campus style format. At full development the Aurora Gateway Centre proposal would include 637,575 sq. ft. of space incorporating the following elements: a) large format retail department store (Wal-Mart is anticipated primary tenant); b) warehouse style, club membership retail (such as Costco or Sams Club); c) offices; d) service and ancillary retail; e) hotel; and f) multi screen Cinema complex. (ZM0921140201-YMtY04) -70- ® Gartner Lee PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 2. Study Scope, Findings and Conclusions The Study was commissioned by Whitwell Developments Limited to examine the potential implications of the proposed Aurora Gateway Centre "for the adequacy of the Town's employment land and the potential implications for the local economy"(p.l ). The Study concludes that: a) the Town of Aurora's supply of vacant employment land is sufficient to accommodate projected employment growth to 2016, with or without the Aurora Gateway development; b) the supply of vacant employment land is sufficient to accommodate projected employment growth over the longer term to 2021, assuming implementation of the Town of Aurora's Five Year Official Plan Review recommendations for expansion of the Town's urban boundary; c) the proposed Centre can complement and support economic development in the Aurora Gateway Business Park by: • acting as an initiator for future office development in Aurora's Highway 404 employment lands; • helping to establish an urban profile on Highway 404, creating opportunity for development of a Gateway feature at the entrance of the Town of Aurora; and • providing services for future business tenants. d) with regard to implications for the local economy, the Centre will: • provide accessibility and exposure required to attract shoppers from other municipalities; • permit the municipality to maximize potential commercial employment and taxable assessment by providing a hierarchy of retail uses and reversing the outflow or retail spending from the Town; • employ more than 2,100 persons at full development; • generate approximately $1.4 million in development charges for the Town and $327,000 in building permit fees; and • contribute approximately $350,000 in property taxes for Town purposes annually. (2ra0921/40201-OTtd04) —71— 2 ® Gartner Lee PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 e) subsequent data and analysis provided concluded that the Aurora Gateway Centre will generate a net annual surplus of approximately $85,083 per year for the Town of Aurora. 2.1 Study Data Sources No original data was developed for the Study. References throughout the Study indicate Town of Aurora and York Region reports as data sources. These sources are listed in Appendix A and referred to in this Review. 3. Peer Review The Study focused on the impact of the proposed development on employment land requirements in the Town of Aurora and the potential of the proposed development to generate employment and municipal revenue. This Peer Review examines the Study methodology, assumptions for each of the analysis and the Study conclusions. 3.1 Methodology and Key Assumption Review 3.1.1 Adequacy of Employment Land Supply The Study employs a standard methodology to consider the adequacy of the available and planned inventory of land to meet planning requirements. The Study's approach follows the approach used in the Town of Aurora Five Year Official Plan Review Strategic Directions for Aurora April 2003, and York Region Vacant Employment Lands Inventory, 2001. The Town of Aurora Employment Land Retention Strategy May 2004 was released by Hemson Consulting after the Study was released, and was thus this report was not included in the Study. The methodology involves the following steps: a) consider the forecast of employment growth for the forecast period; b) assume a share of employment growth that will be generated on employment lands; c) assume an employment density per net acre of employment lands; (24921/4020I-fhpts/04) 3 ® Gartner Lee —72— PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 d) calculate the net employment land requirement given the above; e) gross up the net requirement to the total land requirement by applying a net/gross ratio assumption; f) consider the current inventory of vacant employment lands; g) consider planned new employment land designations and other adjustments including current applications for re -designation and exclusions for environmental or other purposes; and h) compare adjusted vacant employment lands supply to estimated employment land requirement to identify adequacy of supply. The basic methodology used in the Study is accurate, however, the key assumptions either made specifically in the Study or implied, require examination and comment. The internal logic and consistency of the set of assumptions were examined and where available a range of assumptions that were applied in other recent Town of Aurora studies are shown and sensitivity analysis provided. 3.1.2 Employment Land Inventory (Supply) The Study notes that according to the York Region inventory, York Region Inventory of Vacant Employment Lands 2001 Aurora had a total vacant employment land supply of 430 net acres in 2001. A downward adjustment is then made to take into account lands within the Bayview Northeast (2C) area, which are planned for recreational uses by the Town of Aurora (the noted source for the adjustment is Hemson, April 2003, Appendix 2). The Study estimate of 378 net acres of vacant employment land is carried forward in the analysis. Peer Review Comments The York Region Vacant Employment Land Inventory 2001 referenced in the Study was considered current to May 31, 2001. This inventory generally includes vacant land parcels greater than 0.25 net acres in.size that are located within employment land designations in Aurora's Official Plan and Zoning by- laws. York Region's updated inventory as of April 2002 estimates vacant employment land in Aurora at 512.81 acres. The 2002 information is used as the starting point from which Hemson calculated employment lands inventory for use in Evaluation of Growth Options January 2003. (2mo921/4020 44/muI04) - 4 - ® Gartner Lee —73— PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 In addition to an adjustment for Town of Aurora recreational uses in Wellington/404 area, as noted in the Study, Hemson made several other adjustments to the 2002 York Region inventory to refine the estimate, including: a) adjustments within The Wellington/404 area; b) exclusion of 20 gross acres for woodlot protection; c) gross to net adjustment reducing lands by 20 %; d) addition of 35 net acres of the Town of Aurora parcel for employment use; e) 20% reduction in inventoried vacant Magna lands to reflect a gross to net conversion; and f) overall net inventory reduction of 10% to allow for anticipated long term vacancy. With these adjustments Hemson estimated net vacant employment lands in Aurora to be 340 acres, not 378 net acres as stated by the Study (p.13). Further updates of vacant land inventory was provided by Hemson in their most recent report, the Town of Aurora Employment Land Retention Strategy, May 2004. Here the current designated net supply of employment land is estimated at 330 net acres, after long term vacancy is taken into account, with 240 of these net acres recently being designated in the Wellington -Highway 404 business park area. The application to redesignate 80 acres of this employment land to commercial for this project has already been submitted to the Town. Discussion with Hemson Consultants and the Town of Aurora indicate that the available inventory in the near and longer term may be further reduced when the following factors are considered: a) survey information for 2003 may indicate further land absorption; b) applications for site plan approval for retail development in the Town of Aurora; c) it is difficult to predict the future development of the Magna lands and whether they will contribute to employment growth. Together the Magna parcels amount to 45 net acres, approximately 13% of the estimated inventory; d) the boundaries of the Oak Ridges Moraine lands south of Wellington Street, on the east side of Leslie, within OPA 30 (the 213 area), have yet to be determined; and e) a 42 acre parcel in the Bayview East area is held by the Ministry of Transportation for Highway 404 interchange improvements; it is not clear if any of these lands will be available for development. Given these factors, the 378 net acres of employment land assumed in the Study is considered to be an overestimate of available supply in the near term. (2mo92114020i-OpW04) - —74- S ® Gartner Lee PUBLIC PLANNING — SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3,2003 3.1.3 Employment Land Requirements There are four components to the estimate of employment land requirements: 1. Employment projections over the forecast period. 2. Allocation of Employment Growth to Employment Lands. 3. Employment density on employment lands. 4. Contingency requirements. Employment Projections The Study adopts the York Region Official Plan employment forecast for Aurora of 26,000 employees in 2016 and 30,000 employees in 2021. This implies employment growth of 12,239 employees by 2021, from a 2001 employment base of 17,761. Peer Review Comments The Study correctly interprets the York Region Official Plan employment estimates for the Town of Aurora and the 2001 employment base correctly reflects Statistics Canada Employment by Place of Work data for 2001. No discussion is provided however on the reasonableness of the employment forecast, the underlying activity rates implied by this forecast or the implications for employment land requirements should the Town pursue stronger employment growth targets. Hemson Consultants have examined York Region's Employment forecast in the context of Aurora's Growth Options and notes that the York Region forecast implies an activity rate of 40% to 43% over the forecast period. If the Town of Aurora wished to move closer to the average York Region activity rate of approximately 50%, higher future employment would be required and the requirement for available employment lands would be stronger. The Study makes an overly conservative assumption in adopting the York Region employment forecast. Consideration should be given to the requirement for employment lands should Aurora pursue employment growth targets which serve to improve the Town's employment/population ratio (i.e., activity rate). (2mO921/40201-vmts/04) 7 —75— 6 ® Gartner Lee PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 3.1.4 Share of Employment Growth on Employment Lands The Study assumes that 55% of Aurora's employment growth would occur on Aurora's employment lands. The Study points to Hemson's work (January 2003) that indicates that employment land employment comprises on average approximately 55% of total employment in major municipalities in the Greater Toronto Area. Hemson also concludes that in Aurora the share of employment on employment lands are likely closer to 65%. The Study offers the following explanation regarding the current discrepancy between allocation rates in Aurora and the GTA: "A higher share of employment on employment lands in Aurora today might reflect a relatively small amount of major office employment (not included in Hemson's definition of employment lands) or Aurora's relatively weak retail commercial sector" (p. 7). The Study further states that: "If Aurora continues to be successful in attracting office and prestige industrial uses to its business parks and if it can reverse the ouOow of commercial expenditures to other municipalities, the Town's share offuture employment growth on "employment lands" is likely to be similar to that of other GTA municipalities" (p. 8). Peer Review Comments With an estimated 65% of employment accommodated on its employment lands, Aurora appears to be an anomaly amongst GTA and other Ontario municipalities. As noted in Table 1, shares of employment on employment lands range from 52% to 61 % in the GTA Regional municipalities. Limited data for a range of local municipalities in Peel Region and outside the GTA show a range of employment allocation from 35% on employment lands in Ottawa to a 60% allocation in Brampton. Note that data on York's area municipalities would be helpful but is not provided by Hemson Consultants. (2,e0921/4020 1-f/,ps/04) 7 ® Gartner Lee -76- PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 Table 1. Estimated Share of Total Employment Accommodated on Employment Lands Year Share 1986 44% 1991 41 % 1996 42% 2001 2001 Estimate By Peel calMunicipality Toronto ' 43% , 31% Peel 56% York 56% Durham 52% Halton 61 % Mississauga 55% Brampton 60% Caledon 1996 Estimate Selected Regional'Municipalities Hamilton -Wentworth Ottawa Carlton 58% Outside the GTA 43% 35% Niagara 41% Waterloo 49% Essex 49% Source: Hemson Consultants Employment Database, 2001 Caution must be applied in inferring too much information from a data set such as this. Municipalities differ in terms of the development permitted on employment lands and past patterns of development will be reflected in the data set. As the Study correctly notes, York Region has a trend that, "in addition to industrial and warehousing activity, non-traditional employment activities such as business and industrial support services, commercial (e.g., theaters, restaurants etc.), and retail warehouse operations have become more common in employment parks" (p.7, York Region 2002). The only reasonable approach to assessing the potential allocation of employment to employment lands in Aurora over the next 10-15 years is to examine the available lands within the Towns planning structure together with the objectives and targets the Town has established. The Study correctly notes that Aurora's relatively high share of employment in employment lands is reflective in part to the relatively small amount of major office employment in the community. In 2002, 84.9% of employment in Aurora was generated by small business with 1-19 employees (York Region Employment and Industry 2002). (2.0921140201 VrpW04) - 8 15 Gartner Lee PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 Aurora's major employers in 2002 included: • Quebecor World; • Sinclair Technologies; • York Region Catholic School Board; • Canada Law Book; • Rebook Canada; and • Magna International. With the exception of the York Region Catholic School Board, which has its offices West of Yonge Street, all of these major employers are located on employment lands in Aurora (York Region Planning and Services Department Employment and Industry, 2002). No evidence is provided to support the Study conclusion that "the Town's share of future employment growth on "employment lands" is likely to be similar to that of other GTA municipalities" or to use 55% as the basis for future employment land requirements. If Aurora were successful in continuing to attract office and prestige industrial uses to its business parks, this (employment land) development would strengthen the contribution of employment lands to the employment base and the percentage of employment on employment lands would continue to be stronger than the Regional average. Increasing the strength of Aurora's retail/commercial development on non -employment lands would tend to bring the allocation share down but a dramatic shift is not a reasonable expectation. It is unlikely that Aurora's allocation of employment to employment lands would approach 55% without a significant change in the structure and location of economic activity in the Town. With the planning structure in Aurora, the share of employment that can be expected to be accommodated on employment lands is not expected to change significantly from the current 65% share. Moreover, in the Study methodology to determine employment land requirements, the employment allocation of 55% is applied to employment growth over the forecast period. When the allocation is applied to growth, the 55% assumption is considered to be extremely conservative. It is expected that at least 65% of employment growth will be attributable to development on employment lands, consistent with the current pattern in the community. 3.1.5 Employment Density The Study presents data from the CB/Madison Economic Development Strategy Background Study, which determined that the average employment density in Aurora's business parks was approximately 12 employees per gross acre, or 15 employees per net acre using a net to gross ratio of 80 percent. It also notes that York Region's Official Plan promotes compact development with a higher ratio of workers per acre with an overall minimum of 20 employees per gross acre (25 employees per net acre). (&a0921/4020141T[./04) 9. ® Gartner Lee --/'B- PUBLIC PLANNING — SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 Peer Review Comments While the CB/Madison 1996 data reflects the existing infrastructure and employment base at that time, York Region's Official Plan refers to the type of new development envisioned for the Region (i.e., compact, higher employment density on employment lands). As illustrated in Table 1, employment densities vary significantly across York Region's area municipalities and the GTA depending on the nature of employment activities in an area. The current figures reflect all employment lands in each community and the average density reflects the historic pattern of business activity. Older employment lands which reflect traditional uses such as warehousing and industrial activities tend to require large tracts of land and result in relatively lower employment density per acre. Office/high tech buildings tend to have a higher worker/floor space ratio than factories typically resulting in higher employment density per acre. Employment densities can be expected to change gradually with emerging employment trends. In York Region's Vacant Employment Land Inventory 2001, the Region argues that over the planning horizon of 25 years there will be opportunities for intensification and more efficient use of lands, resulting in higher densities. The Region's analysis assumes that employment land densities within each of the area municipalities will increase over the next 25 years as noted in Table 2. Similarly, Hemson data indicates a significant range in net employment land densities. Hemson notes that densities in new areas of Whitby and Hamilton are likely higher than the average share included in their database. Table 2. Employment Density on Employment Lands York Region Vacant Employment Lands Hemson Employment Database Inventory 2001 Values, 2001 Vaughan: Vaughan: • manufacturing is dominant sector with 15/net acre • 14/net acre • 16/net acre used for future employment land use Markham: Markham: • concentration of high-tech and business service related employment • 24/net acre with 23/net acre • 25/net acre used for future employment land use Richmond Hill: Whitby: • computer Finance insurance and business services sectors with 25/net • 11/net acre acre • overall, new areas are likely higher • higher in areas of Beaver Creek Business Park • 25/ net acre used for future employment land use Rural Municipalities: Hamilton: • employment typically on private services with 5-8/net acre 15/net acre • 12/net acre used for future employment land use • new areas — Ancaster and Flamborou (2m092I/40201-6tpWa4) to ® Gartner Lee —79— PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 The Study's range in possible employment densities of 16-25 employees/net acre for the newly absorbed employment lands in Aurora is reasonable for consideration. The upper end would be reflective of the target prestige office/industrial development envisioned by the Town for new development while the lower end of the range would represent more traditional manufacturing activity. The likely pattern of development will be a combination of these activities. The closer the Town is able to keep to the stated intentions for the newly developing employment lands, the higher the employment density that will be achieved. 3.1.6 Contingency Factor The Study applies a "Contingency Factor" of 10% to the estimate of net employment land to determine total net acres required. Peer Review Comments a) York Region's Vacant Employment Land Inventory, 2001 incorporates a 30% "vacancy factor" recognizing that uncertainty in short to medium prospects for the economy indicate that a flexible and diverse supply of vacant lands is required in order to respond quickly to changing economic circumstances and demand (p.17). b) Hemson's Strategic Directions for Aurora, April 2003 makes no adjustment to the land requirement calculation for contingencies. Hemson includes a 10% long term vacancy adjustment to the current inventory (land supply) recognizing that full tenancy of a business park is unlikely (as parcels remaining in the park get smaller during development and it can be difficult to develop the remaining parcels). Based on the above information, the Study's assumption of 10% for future contingencies is conservative. 3.1.7 Comparison of Employment Land Needs and Supply The Study compares estimated supply of employment lands to estimated Town requirements. Based on the Study analysis, the 2016 land surplus amounts to 66 to 179 net acres. The conclusion is that the current inventory is sufficient in the short term to accommodate projected growth as well as this proposed commercial development (57.8 acres from the minimum surplus of 66 acres). In the longer term, projected growth to 2021 cannot be accommodated by the current land inventory, however with the proposed designation of new employment lands as recommended in the Hemson Strategic Directions for Aurora, supply would increase to 576 acres. This amount of land would be sufficient for projected growth as well as this proposed development. (u.0021140201-v.,ndo4) - 11 - ® Gartner Lee —80— PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3,2003 Peer Review Comments The Whitwell Developments proposal includes not only 57.8 acres for regional commercial use but also another 11.6 acres for office/hotel use; this would require a total of 69.8 acres to be converted from employment lands designation. Using the Study's analysis of supply and demand, there would thus not be sufficient lands by 2016 to accommodate both projected requirements for employment lands and the land requirements of this proposal based on the conservative lowest density assumption. Adjusting various assumptions to test the sensitivity of the analysis, it is apparent that the gap between supply and requirements for employment lands may be considerably wider. Assuming an activity rate of 46% and an allocation of employment from employment lands to be 65% with a density range of 16-25 employees/acre, the employment land requirement to meet the employment forecast ranges from 318 to 497 net acres. If Aurora had a more aggressive target of achieving a 50% activity rate in the future, with an allocation of employment from employment lands at 65%, with a density range of 16-25 employees, the employment land requirement to meet the employment forecast ranges from 383 to 599 net acres. With an estimated available inventory of 340 net acres, in all but one scenario there is a net shortfall of employment lands available to meet planning targets. Sensitivity analysis conducted is provided in Tables 3 & 4. If a market contingency were included (10% to 30%) to ensure that the variety of supply is available to meet changing needs, this would require further land inventory across all of these scenarios. The following table shows a calculation of the land needs to 2016 based on an allocation of employment from employment lands at 65%. Table 3. Calculation of Employment Land Needs, Town of Aurora, 2001-2016 (Peer Review Sensitivity Analysis) Employment Growth on Employees Vacant Net Land Employment Employment Per Net Net Acres Supply (net Need 2001 Employment 2016 Em to ent 2001-2016 Land Share Lands Acre Required acres) (acres 17,761 26,000 8,239 65% 5355 25 214 340 -126 17,761 26,000 8,239 65% 5355 18 298 340 -42 17,761 26,000 8,239 65% 5355 16 335 340 -5 17,761 26,000 8,239 650% 5355 15 357 340 17 The sensitivity analysis indicates that Aurora's vacant land inventory is adequate to accommodate future employment projections to 2016 as long as the employee density is greater than 15 employees per net acre. This proposed development converting 69.4 acres from employment lands would absorb all of Aurora's flexibility for future employment land growth in every scenario except when there are 25 employees per net acre. No contingency factor is built into this calculation either, which would further exacerbate the land shortfall. (2mO921140201-apcy04) 12 ® Gartner Lee —81— PUBLIC PLANNING — SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3,2003 Based on the information shown in Table 4, it can be seen that based on an allocation of employment from employment lands at 65% when utilizing an activity rate of either 46% or 50% there will be a net land shortfall in every scenario except one by the year 2021. If lands are redesignated as employment lands this shortfall may be managed. Designation of new lands, as recommended by the Strategic Directions for Growth, would significantly increase supply, however the Town has not yet adopted this. Town of Aurora Employment Land Retention ,Strategy The most recent Hemson Consulting report, Town of Aurora Employment Land Retention Strategy, May 2004, stresses the importance of employment land within the community and how important it is to preserve. It is stated that "redesignating employment land to non employment -generating uses is neither in the best interests of the Town of Aurora nor the Region of York" (p.3). Hemson describes how strong policies regarding the retention of the employment land supply is required in order for the Town of Aurora and York Region to maintain their competitive position within the GTA employment market. This analysis reiterates sentiments from the Town of Aurora Economic Development Strategy 2003 that the employment land in the Wellington -Highway 404 area represents an opportunity for Aurora to diversify and enhance the current business park structure and attract significant new economic development opportunities. Hemson Consulting recommended that the Town approve future employment land designations in the following way: 1. The Town should only approve changes to the total amount of employment land designated within a comprehensive planning process (such as a five year official plan review). 2. Otherwise the Town should only approve designation changes because of compelling, site -specific reasons, such as site configuration, access, or surrounding land uses. 3. The proponent should also be required to prove that the proposed development would provide benefits to the Town. The proponent would need to demonstrate that the proposed development is compatible with all permitted uses on surrounding and nearby lands and will not cause a destabilizing of existing and prospective employment uses. 4. All studies submitted in support of the redesignation of employment land are subject to a full peer review. 5. In order to ensure that this approach is implemented, specific policies need to be incorporated into the official plan. (2rW92114020I-vrpts/04) 13 ® Gartner Lee —82— PUBLIC PLANNING — SEPTEMBER 29, 2004 N a �Cp OnN N W O 0 D OM m— — WIT � � m r ��M N MNm�, - N N E 00, � Z Z — ooc C_ ,O d d M M M M M M M M M M M M M M M M M M M M M M U U Z K!� m � U' U M O M o N f0 DO VJ � (D M N M O W O c O N In lU O W Yl � E m L M M N N�DM V d' V' V' 0000 O Nh h V V V V M M mmm E aQnnnn n mmmm rnrnrnm ao mcom w w 0 N_ N In lU M o 0 0 0 0 M o In N IU O O O O O O � O m O ��co to to �m m<o in u, ins m<o coro mco com � in m in E .c mw� ornrnrnrn rnrnrnrn mrnrnrn rnrnrnrn rnmmrn mrnrnm N M M M M M M M M M M M M M M M M M M M M M M M M N N N N N N N N N N r r r n n n r n n n n n NN N" .N .N--N— Qa' N c 0 0 0 0 0 O O O o O O O O N N N N N N N N N N N N ry p,M M M M M M M M M M M M M M M M M M M M M M M M N i W c N fO�n�ro ^^nano iomm^ m^m� rolomn �, neon o n N W N IL N N � O o E E `o w o m 0 S 0 } Q Ol � Q m N J —83— PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 Hemson concludes that protecting the employment land supply will be a significant planning challenge for the Town of Aurora over the next decade. The Aurora Gateway proposal should be reviewed in the context of this recent study and incorporated into the Clayton Research report. 3.2 Employment Impact of Development Proposal The Study makes an assumption of the average number of square feet per commercial and office/hotel employee. From these assumptions, and the number of square feet of commercial and office/hotel space in the preliminary concept plan, the Study makes an approximation of the number of retail/service and office jobs produced. Peer Review Comments The study refers to permanent jobs but makes no reference to part time positions or Full Time Equivalents (FTEs). The Study does not look at the proportion of minimum wage employment associated with commercial development nor does it examine the long-term desirability of trading potential permanent office jobs with part-time retail jobs in the community. Reduced potential to attract prestige office to the business park and associated quality employment after such commercial development is in place should also be addressed. The marketability of the reminder of land in the business park after big box retailers establish should also be examined. While jobs will be created in this commercial/office development, the Study does not acknowledge potential job losses in other areas of Aurora due to commercial competition and potential store closures. 3.3 Municipal Finance Impact of Development Proposal The Study presents estimated Development Charges, building permit revenue and property tax revenue based on Aurora's 2002 development charges for non-residential properties, 2002 permit rates, and 2002 tax rates of $110/sq.ft. for retail assessment and $100/sq.ft. for office assessment. Clayton Research provided an update of the fiscal benefits in a supplementary report entitled Fiscal Benefits of the Aurora Gateway Study, May 7, 2004. This report provides an estimate of the property tax revenue and Town expenditures related to the Aurora Gateway Centre when compared to an alternative scenario under which the lands are developed for employment uses excluding retail. Assumptions in this supplementary report include 562,000 sq. ft. retail space and 171,000 sq. ft. office/hotel space on a 69.4 net acre site for the Centre project and average lot coverage for the alternative. All estimates of property tax and incremental expenditure estimates are bases on 2002 data. (2mO921/40201-t7msd04) 15 ® Gartner Lee -84- PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 Peer Review Comments The Study estimates are based on 2002 data and rates and therefore require updating to reflect the current development charge and tax structure in Aurora and the Region The table below summarizes the Town of Aurora 2004 Non-residential Development Charges approved June 8, 2004. As detailed in The Town of Aurora Development Charges Background Study, 2004, an average cost approach is used to support Town growth -related services, resulting in uniform charges throughout the Town. The non-residential charges are applied to all development on a square foot of gross floor area (GFA) basis. Table 5. Town of Aurora Development Charge Summary Non-residential Charges - 2004 Service Charge Per Square Foot of Gross Floor Area Library Services - Fire and Rescue Services $0.22 Indoor recreation - Park Development and Related - Public Works- Building, Fleets Parking $0.19 General Government $0.13 Subtotal General Services $0.54 Roads and Related $0.83 Sanitary Sewers $0.35 Watermains $0.42 Sub -total Hard Services $1.60 Total Non-residential Charges ($/sq. ft.) $2.14 ($23.03/sq.m.) The following table summarizes the phased approach to development charges for non-residential development in the Region of York. Table 6. Region of York Non-residential DC Rae per sq. ft. Phase -in Non- Retail Retail Ste 1-12 months $2.75 $3.85 Ste 2 —13 to 24 months $3.05 $4.55 Ste 3 — 25 to 36 months $3.35 $5.95 Ste 4 — 37 to 48 months $3.50 $8.05 (2ra0921/40201-VMW04) /6 ® Gartner Lee —85— PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 Table A-11 in Appendix A summarizes the municipal revenues to be generated by the proposed development with rates and charges updated to those applicable as of 2003 and 2004 (where available). Applying the 2004 Town rate to 782,575 sq. ft. GFA for the proposed Centre yields $1,674,710 development charge revenue for the Town. This estimate is not dependent on the mix of office/retail/hotel development. Regional Development Charges amount to $3,343,216 based on the second step of the phased development charge rate schedule and the proposed office/retail mix. The Regional rate does depend on the mix of retail and office development, with higher DC revenue associated with retail floor space. As noted in the Study, the Regional DC schedule will result in substantially higher rates for retail development in the future. Furthermore this phased -in schedule will depend on a number of factors including indexing and the actual transit expenditures. Development Charges for Regional Schools are estimated at $281,727 based on 2003 charges. Building permit revenues have been updated to the Town 2003 rates, yielding $363,506 in revenue for all components of the development proposal, The updated Property Tax revenue estimate presented in Table 1 in the Appendix maintains the Clayton assessment assumptions of $110/sq.ft. for retail space and $100/sq.ft. for office space. Actual assessment for the property will depend on the specific characteristics of the development. No further refinement of the estimate is available at this time. The property tax rates have been updated, however, to reflect 2004 rates. Given these inputs, the Town property tax revenue is estimated at $348,081 annually, the Regional revenue is estimated at $507,911 annually, and the School revenue is estimated at $1,451,876 annually. Net Fiscal Impact As the Study correctly points out, the proposed development may cause municipal revenue streams to be realized sooner than would be the case in the absence of this proposal. Over the medium term however, Aurora and the Region can expect these lands to develop and additional municipal revenue (above current revenue generated from vacant lands) to be generated. Clayton's supplemental report provides an estimate of the annual net operating and maintenance expenditures in providing service to non-residential uses compared to estimate property tax generation in order to estimate the net fiscal impact of the proposal to Aurora. This demonstrates that the net annual surplus to the Town may be in the order of $85,000, marginally higher than other employment use alternatives. Similarly, development charge revenue is directly related to growth —related municipal costs, therefore the development proposal is not expected to result in a significant net fiscal benefit to the Town and Region. (2.0921/40201.vpWW04) 17 ® Gartner Lee -86- PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 4. Review Conclusions and Recommendations The basic methodology used in the Study to determine the economic impacts of the proposed development is considered appropriate. This review has examined the assumptions and background data incorporated in the analysis and notes a number of updates and corrections that are required to provide a current estimate of the potential economic impacts of this development. In particular, the discussion on vacant employment lands in the Study indicates that there are 378 net acres vacant, however Hemson estimated that with adjustments there are 340 net acres (and more recently 330 net acres) of net vacant employment lands in Aurora. The 378 net acres of employment land assumed in the Study is an overestimate of available supply in the near term. The Study does not take activity rates into consideration or the reasonableness of the employment forecast used. The Study makes an overly conservative assumption in adopting the York Region employment forecast. The underlying activity rates for employment forecasts and the implications for employment land requirements if the Town were to pursue stronger employment growth targets should be examined. There is no evidence to support the Study conclusion that "the Town's share of future employment growth on "employment lands" is likely to be similar to that of other GTA municipalities" or to use 55% as the basis for future employment land requirements. If Aurora continues to attract office and prestige industrial uses to its employment lands, the percentage of employment on employment lands would continue to be higher than the Regional average. An examination of the rationale for using the 55% employment on employment lands should be examined further in the Study. While the Study's range of possible employment densities from 16 to 25 employees/net acre for the newly absorbed employment lands in Aurora is reasonable for consideration, the Study's assumption of using 10% for future contingencies is conservative and should be reexamined. Based on sensitivity analysis, this review has shown that the availability of land for this potential development is less than what is indicated in the Study. The Study conclusions on the availability of land in the short and longer terms for development on employment lands should be revisited and updates should be included. Furthermore, the Study does not incorporate the most recent (2004) Hemson assessment of Employment Lands and the value of this designation to Aurora's planning and development process. (2m0921/40201-VrptdD4) 18 ® Gartner Lee —87— PUBLIC PLANNING - SEPTEMBER 29, 2004 Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates, July 3, 2003 In terms of municipal finance, the Clayton analysis indicates that the development proposal may cause development related revenue to be realized sooner than would be the case in the absence of this proposal. Over the medium term however, Aurora and the Region can expect these lands to develop additional municipal revenue (above current revenue generated from vacant lands) to be generated. While the Town, Region and School revenue generated through the proposal is significant, the one-time and ongoing annual revenue serve to support related municipal expenditures. As a result, no significant net fiscal benefit to the Town is anticipated. This is confirmed in Clayton's supplemental report providing an estimate of the annual net operating and maintenance expenditures in providing service to non-residential uses compared to estimated property tax generation. Report Prepared By: Michelle L. Joliat, M.Sc., MCIP, RPP, P.Biol. Consultant Catherine L. Dowling, B.E.S., M.A. Senior Environmental Economist Report Reviewed By: Andy W. Keir, M.Sc., MCIP, RPP Principal �2re0921140201-ffip./04) 19 ® Gartner Lee -88- PUBLIC PLANNING - SEPTEMBER 29, 2004 Appendices (2rb0921/402014/r W04) -89- PUBLIC PLANNING - SEPTEMBER 29, 2004 Appendix A Municipal Revenues to be Generated by the Proposed Development (2,b0921/402014ptOM) -90- PUBLIC PLANNING - SEPTEMBER 29, 2004 m lk mr W It n M O O O N N N N W m M 1- M O o] It - N r' co M M M p M GMD_ (MO X F N 6 co N 0 f9 E9 EFT E9 EA EA E9 6ET N O O to 0 0 0 N O O O ti 0 W N m O O co M `I. NLd M a0 N O O O N O W( U O m O O W O t0 O V; O W W m r N M O O O N M N 9 w O a o a @ M 64 E9 E9 E9 KT NT ER E9 VT F9 EA E9 E9 � O O O N W W I� N O O ti It W LO CD VO O N NG 1`W M ti N M NO m A cp ^- M O v N NW-, N .0. M ^ M (p M O N O 4 V' N N V O N cl)v (O O O V C O O O N M N 'r � � � U 64 f9 EFT f9 f9 E9 6? EA fFT E9 E9 E9 E9 U Z c N 0 cci 0 F n co M N M M �to M W f9 f9 E9 E9 EA H} H3 E9 O 0 O W O O O M co O 0 O O O V' O O O 0)M O VN u M N N V �m W M I. IT NU It O v u� o I W O o v co W m f0 W W m l� M y O , 0 0 N N O v CO E9 E9 EFT E9 E9 E9 09. W. E9 EA fA E9 LO r M N 7 O I` O v co O m W O tW0 V: O r i0 N t` M n It — r .R N V O m V W co W N � o (m(� co m N O N N co 't 0 Lq g 0 q (V W— W N v 12 CL *- N `'" M O E9 f9 ER f9 E9 E9 E9 F9 E9 E9 EIT E9 E9 N O �v �M. d: « « « v « m m rorn� * * * y m U v � 61 N N .N..�� .0.. II W a U C m m ^ �° M u o C 0 N co6 t C 7 N ^ m O U N w c �- ft m N OCD N N a m F m a m s EL a m c c c Im ma om' '0 o '� a v v o m' o m' aO1i 0aNi a' U C U U I- O w E K W H K W N N (Ao0 o mm m a¢ ¢� a m m PUBLIC PLANNING — SEPTEMBER 29, 2004 Addendum Peer Review of the Economic Implications of the Aurora Gateway Centre, Clayton Research Associates July 3, 2003 Introduction The peer review prepared by Gartner Lee Limited, August 2004 was discussed with Clayton Research Associates in order to clarify methodology and data sources for both reports and draw final peer review comments. The following Addendum represents the result of those discussions and summarizes Gartner Lee's review comments. Attached to this document is correspondence prepared by Clayton Research Associates clarifying their position and reflecting the outcome of discussions. Peer Review Findings The basic methodology used in the Clayton Report to determine the economic impacts of the proposed development is considered appropriate. Our review of the subject report examined the assumptions and background data incorporated in the analysis, as well as the various calculations. While we initially reported that the methods of calculation used by Clayton framed the proposed development in very optimistic terms with respect to potential economic impacts, we have since met with Clayton Research and agree that utilizing a sensitivity analysis examining a wider range of alternative assumptions is a more appropriate way to approach this analysis. The issue of most significance in the Clayton Report was the potential impact of the proposed development on employment lands within the Town of Aurora. It is noted that the original Clayton Study (July 2003) does not reflect the most recent (2004) Hemson assessment of Employment Lands and the value of this designation to Aurora's planning and development process. The Clayton Study initiates its analysis of employment lands with the assumption that vacant employment lands in the municipality total 378 net acres. By contrast, Hemson estimate in their report (2004) that with adjustments the current inventory is actually 330 net acres. Together with Clayton we have reached an agreement to base the sensitivity analysis on the employment land supply determined by Hemson Consulting. Previously we had concerns with the fact that the Clayton Report makes a conservative assumption in adopting the York Region employment forecast. Together with Clayton we have agreed to incorporate the possible implications for employment land requirements if the Town were to pursue stronger employment growth targets. (2-add.&d 40201-V WO92I M) —92— I ® Gartner Lee PUBLIC PLANNING — SEPTEMBER 29, 2004 The Clayton Report states that "the Town's share of future employment growth on "employment lands" is likely to be similar to that of other GTA municipalities" and therefore uses 55% as the basis for future employment land requirements. There is no allowance for the fact that if Aurora continues to attract office and prestige industrial uses to its employment lands, the percentage of employment on employment lands will continue to be higher than the GTA average. In order to address this concern, Clayton has agreed to allow an examination of the implications of higher employment land capture rates into the sensitivity analysis. While the Study's range of possible employment densities from 16-25 employees/net acre for the newly absorbed employment lands in Aurora is reasonable for consideration, the Study's assumption of using 10% for future contingencies is conservative and a range of between 10% and 20% seems to be a more reasonable consideration. Clayton has also agreed to this point. Based on the preceding assumptions, Gartner Lee's sensitivity analysis indicates that the implications of the proposed development on the employment land supply in the Town of Aurora may be more pronounced than contemplated in the original Clayton Report. With the agreement of Clayton Research to adopt the sensitivity analysis performed by Gartner Lee, we now agree that the initial site development concept may result in an employment land supply insufficient to accommodate planned employment growth to 2016. The revised site concept for the Whitwell proposal preserves an additional 22.5 acres of the site strictly for business park purposes, thus supplementing the planned employment function on adjoining lands to the north and south within this broader business park. Not withstanding all of the above however, potential longer -term impacts of the proposal are less of a concern. Even in the worst case of the sensitivity analysis, impacts are not such as to cause undo concern about the long-term adequacy of the employment land supply in Aurora. The potential deficit of employment lands may further be reduced with the relocation of the recreation centre that was to be placed on employment lands in the Wellington/404 area, resulting in a possible 29 acres of additional employment land supply. The release of 2C lands for development towards the middle of the next decade (i.e., 2013 — 2016) will reconcile the long-term employment land supply/demand balance. In terms of municipal finance, the Clayton analysis indicates that the development proposal may cause development related revenue to be realized sooner than would otherwise be the case in the absence of this proposal. Over the medium term however, Aurora and the Region can expect these lands to generate additional municipal revenue (above current revenue generated from vacant lands). While the Town, Region and School revenue generated through the proposal is significant, these one-time and ongoing annual revenues serve to support related municipal expenditures. As a result, no significant net fiscal benefit to the Town is anticipated. This is confirmed in Clayton's supplemental report which estimates the annual net operating and maintenance expenditures in providing service to non-residential uses compared to estimated property tax generation. (2-add=duM4020I-flrptdO92104) 2 ® Gartner Lee —93— PUBLIC PLANNING - SEPTEMBERAMEIRMA "C" MALONE GIVEN PARSONS MEMORANDUM 140 Renfrew Drive, Suite 201, Phone: 905 513-0170 Markham, Ontario, Canada L3R 6133 Fax: 905 513-0177 TO: Scott Morgan & John Winter FROM: Jeryl Jaque DATE. August 31, 2004 CC: Elaine Wong SUBJECT: Draft Minutes Summarizing August 23�d Meeting With Peer Review Consultants re Aurora Gateway Centre Market Study & Impact Evaluation A Meeting of Consultants was held Monday, August 23, 2004: 1:00 pm at John Winter's office. Attendees: John Winter John Winter Associates (JWA) [Peer Review Consultants for the Region of York] Scott Morgan W. Scott Morgan & Associates [Peer Review Consultant for'the Town of Aurora] Jeryl Jaque Malone Given Parsons [Consultant for Aurora Gateway Centre] Elaine Wong Malone Given Parsons [Consultant for Aurora Gateway Centre] The purpose of the meeting was to share information between the Region of York Peer Review Consultant, the Town of Aurora Peer Review Consultant and the consultants for Aurora Gateway Centre regarding the outcome of the Region's and Town's Peer Reviews of the 2003 MGP Aurora Gateway Centre Market Study & Impact Evaluation. Mr. Winter had recently been provided with a report prepared by MGP responding to his February Peer Review report to the Region. He had also been provided with a full set of the, documentation developed by MGP for Mr. Morgan during the recently conducted Town of Aurora Peer Review process. The meeting was intended to give the three consultants an opportunity to exchange information about the two Peer Review processes, discuss any questions raised by the Response material, discuss any remaining issues and identify similarities and differences in findings. Mr. Winter and Mr. Jaque discussed some of issues raised in the JWA Peer Review report and addressed in the MGP Response Report such as technical questions regarding the household telephone survey's March, 2003 timing, whether events such as the Iraq War affected response or refusal rates and whether low response rates -94- PUBLIC PLANNING - SEPTEMBER 29, 2004 indicated poor methodology, etc. Mr. Winter stated that his Peer Review findings and report should be regarded as quite favourable since they support the development of the planned Aurora Gateway Centre, excepting only the recommendation that anchor tenants in certain retail categories ( the Wal-Mart department store, Supermarket and Home Improvement Outlet) be deferred for 3-5 years. There was a discussion of the fact that the main purpose of the JWA recommendation was to defer the primary tenants which directly overlapped the Town of Aurora's Zellers, Sobeys and Home Depot at the Aurora Centre & vicinity, to give that area several more years to mature and benefit from local residential population growth. Mr Jaque suggested that it is also important to meet the demand for additional Aurora commercial space and to get the Town's regional centre facilities started. Mr. Jaque expressed concern about delaying entry of the Wal-Mart store because it is the pivotal primary tenant for Phase I of the Aurora Gateway Centre and would be the initial tenant needed to attract others. He noted that the further testing and materials developed while preparing the Response to the JWA Peer Review and during the Town of Aurora Peer Review process with Mr. Morgan showed that the Wal-Mart, Supermarket and Home Improvement Outlet could be accommodated earlier (about 2006) without any significant adverse impacts and that deferral was not necessary for any of these tenant types. Mr. Morgan confirmed that his findings showed that these tenant types could be accommodated by 2006 (2007 in the case of Home Improvement) without adverse impacts on Aurora commercial areas. He pointed out several factors that had made a difference during his Peer Review including the amendment of proposed first full year of operation for Phase I from 2005 to 2006 and the testing of a smaller supermarket tenant. There was a discussion of the increased strength of the Aurora Centre & vicinity with the presence of Home Depot, the advancement of the adjacent Trinity development with smaller box tenants such as Marks Work Warehouse and the Morguard application to the Town for Aurora Centre zoning changes which would permit additions, including a cinema complex. Mr. Jaque asked Mr. Winter whether the change to a first full year of operation for Phase I of the Aurora Gateway Centre to 2006, along with the progress being made in strengthening the Aurora Centre area and the additional tests and information provided in the Response Report and the Morgan Peer Review materials had relieved some of the concerns expressed in the original JWA Peer Review. Mr. Winter said that they had to a certain degree but that if he were to write a follow up statement to the Peer Review Response report he would likely repeat his recommendation that anchor tenants in certain retail categories (particularly the Wal- Mart department store, Supermarket and Home Improvement Outlet) be deferred for 3- -95- PUBLIC PLANNING - SEPTEMBER 29, 2004 5 years. He advised that if Mr. Jaque were to provide him with satisfactory answers to several items that he still considered outstanding, he would remove that caveat. There was then some discussion of the items Mr. Winter considered still outstanding. Mr. Winter explained his request to be given examples of markets where Wal-Mart achieved shares of resident department store expenditure as high as the 40% Zone 1 capture used in the analysis of the Aurora Gateway Wal-Mart. There was discussion of whether Wal-Mart has been able to capture high market shares in other markets. Mr. Jaque commented that the consultants were all in agreement that the feasibility or viable level of performance of an Aurora Wal-Mart store were not in question so potential impact effects are the issue that must be tested. In his view it is appropriate to analyse high levels of shares and/or sales to conduct rigorous testing of potential impacts. He noted, and Mr Morgan confirmed, that the recent OMB proceedings in Guelph had set a precedent for testing Wal-Mart at high levels. Mr. Jaque added that they had searched further for examples such as those requested by Winter but found no appropriate examples available and, as an alternative, had run a test in the Response Report at the 30% level suggested in the JWA Peer Review. Mr. Jaque's opinion was that, in the absence of helpful examples, tests of a range of share capture levels should be regarded as a reasonable alternative. Mr Winter suggested that even lower shares might be achieved in the store's first years and he simply wanted to see tests based on realistic estimated 'numbers rather than a range of numbers. There was then discussion of the timing for the potential supermarket tenant and the more favourable analysis numbers calculated by MGP and Morgan during Mr Morgan's Peer Review process. Mr Winter said he remained unsatisfied regarding the decision in MGP's original study to adjust the Study Area share capture indicated by the Household Telephone Survey for the Bayview & Wellington Sobeys supermarket. Mr. Jaque advised that the adjustment had been made based on judgement and experience following an examination of the store and its relative size and indications of its market draw such as the licence plate surveys. He commented that subsequent conversations with supermarket industry contacts confirmed that this store has been doing better than the survey indicated and that adjustment was appropriate. Mr. Morgan advised that he does not rely on survey shares to provide exact readings of individual store performance. There was discussion of the improved position of the Aurora Centre Sobeys store and that chain's capacity to compete with a new store operated by another chain such as A&P. Mr. Winter suggested that it would only take a few days to run a "mini -survey" to test the adjusted telephone survey responses for Sobeys share of Aurora supermarket expenditures but there was disagreement as to how easy and inexpensive or practical this would be for MGP at this point in the process. There was discussion of the timing of the potential Home Improvement Warehouse Outlet tenant. Mr Morgan advised that his analysis shows that the entry of a Home Improvement Outlet similar in nature to a Rona Building Box can be accommodated by 2007 with both Home Depot and the new outlet achieving annual sales of about $40 million with all established stores maintaining their current estimated sales levels. Mr Winter commented that he had not been provided with additional survey results or sum PUBLIC PLANNING - SEPTEMBER 29, 2004 information relating to the Home Hardware store on Wellington St E as originally suggested. Mr Jaque advised that a large Home Improvement Outlet would be most similar to and would compete most directly with Home Depot. He expressed the view that Home Depot has the capacity to withstand competition from a similar operator like Building Box and pointed to locations where the two operators had deliberately position stores near each other. He referred to markets where Home Hardware was located near a Home Depot or Building Box and competing successfully because sufficient expenditure potential was available for all operators. There was discussion of whether Mr Winter expected to prepare a written Peer Review Comment as a follow up to the MGP Response to his original Peer Review and the further materials produced during the Town of Aurora Peer Review. This brought up the question of whether MGP planned to submit further research that might change the JWA Peer Review recommendations. Mr. Jaque commented that there would not likely be enough time for MGP to undertake a new round of work on these subjects at this late stage in the Town's consideration of the proposal. He expressed his view that the information on hand should be satisfactory and that additional evidence on the specific technical points that Mr Winter considered outstanding would not have a direct effect on the differences of opinion about timing for individual tenant types. He thought that the time, cost and delay of process of additional research on these points would be difficult to justify, therefore. Mr. Morgan pointed out that in any event, the three consultants positions were not far apart since the beginning of Mr. Winter's 3-5 period was 2007 and the first full year identified by MGP's recent analysis tests and the Town's Peer Review analysis is 2006 - only one year earlier. The consultants discussed the fact that a one year difference in first year of operation should not present serious problems. Mr. Winter advised Mr. Morgan that if the Town decided to approve a 2006 start date based on the information before it, he would not oppose that decision. The meeting ended on this positive note. -97- PUBLIC PLANNING — SEPTEMBER 29, 2004 APPENDIX "D" MEMORANDUM TO: Scott Morgan and Jeryl Jaque FROM: John Winter RE: Draft Minutes of August 23rd Meeting, Received on September 16, 2004 DATE: September 17, 2004 I have referred to the copious notes I took during the above meeting and have a number of concerns about the write up done by Malone Given Parsons. 1. 1130 percent level suggested in the TWAL Peer Review' The minutes should note that I disagreed entirely with the treatment of the comment: the first year share in an affluent community, Kanata, in a central place, was 15 percent. The scenario was prepared without any contact with me and the scenario prepared by Mr. Jaque was not suggested by my peer review. 2. Sobey's share Mr. Jaque indicated that he thought the Sobey's share was below that used in the report. How much below? The large change made in the report to the Sobey's share is entirely in favour of his client. He needs some independent justification. This "mini survey' would take just a few hours of his survey company's time (who averaged 1,500 phone calls per day). The absolute minimum number of surveys in Aurora + northern Richmond Hill would be 100. Two simple questions: how much money spent in supermarkets in the past two weeks, and which ones, would take approximately a minute. $5 max per survey. Justification of his factor in a few hours for $500. Mr. Jaque said he hadn t had the time in the previous six months to do this (though he had time to re -jiggle the numbers in a 60 page report). And would not have time in the coming month or so. Impact (with the new Loblaws about to be built) is a serious planning matter, and should not be treated as impossible at "this point in the process". Just because Mr. Jaque says "there would not likely be enough time for MGP to undertake a new round of work on these subjects at this late state in the Towns consideration of the proposal" is not an acceptable excuse to a public body. 3. Wal-Mart share PUBLIC PLANNING — SEPTEMBER 29, 2004 The same comment may be made about the Wal-Mart share. There is no market that I am aware of that has an easy choice of all four department chains, with Wal-Mart at a share of 40 percent. If he thinks Oakville a good analogy, some $500 expenditure and a few hours on the phones, should confirm the utilized shares. Otherwise, Aurora has virtually identical department store shares as Newmarket, according to his data. If Newmarket's Wal-Mart share after a number of years of operation is 23 percent to Wal-Mart (in a central location), I cannot conceive how the store can do 40 percent in a peripheral Aurora location. Mr. Jaque relies on another consultant who apparently has access to all Wal-Mart data. It should surely be possible, with the resources available to him, to justify the shares he recommends in his report. 4. Impact on Auroras Home Hardware This matter is still outstanding. 5. 2007 Yes 2007 is three years from the date of Mr. Jaque's report. But my February, 2004 peer recommendation was as follows: Phase I 200,000 square feet approximately (consisting of a MWC, a cinema complex, restaurants and ancillary stores and services); Should Loblaws revoke their approved Aurora location, then an expansion of the Phase I total by approximately the size of one of their contemporary big -box stores; and, Phase II Either (a) when appropriate and correct research material is presented that demonstrates no detrimental impact on any store or service concentration in Aurora, or (b) when three to five years have elapsed since the initial construction of phase I. Phase one is not yet complete. I will restate my concerns: Aurora has taken a long and considerable effort to develop Bayview with commercial near to its Town Centre. It has not entirely been successful, with some stores at low or very low market shares. This situation is improving with the population finally growing to the east of Bayview. A few more years packing this market in close to the stores should ensure that they perform in the planned manner. The danger with the proposed Whitwell development is PUBLIC PLANNING — SEPTEMBER 29, 2004 that it overlaps in almost all important respects with that of Bayview Avenue. If the retail there has not been very strong, it is unwise to exacerbate the situation with a larger centre further away. The only store type that does not overlap with the Bayview retailing is the membership warehouse club, and that would make a good start of the proposed Whitwell development. After a short delay —to ensure the full functioning of the Bayview retailing, or until the outstanding questions are answered —is in the public interest. Apparently the retailing may be beginning to revive (as it is no longer peripheral, but beginning to be encircled with people). Let that process continue for a very short period before the full impact of a duplicate centre is felt. The imminent development of the big Loblaws indicates that Aurora is not under -served in food and common convenience items for the short-term future, at least. In the face of the long term planning process, that has been going on here for over a decade, I believe the opinions of Mr. Jaque so eloquently reflected in his minutes of the meeting, are irrelevant: particularly "He f JJJ thought that the time, cost and delay of process of additional research on these points would be difficult to justify, therefore." That comment is just self-serving. If there are gaps, if he has not provided the requested material, if he cannot justify key factors, then he should have done something in the past six months. Subsequent to the meeting, I have changed my advice to the Region of Peel. Due to the apparent overlap with the proposed cinema on Bayview: Phase I 150,000 square feet approximately (consisting of a MWC, restaurants and ancillary stores and services); and, Phase II Either (a) when appropriate and correct research material is presented that demonstrates no detrimental impact on any store or service concentration in Aurora, or (b) when three to five years have elapsed since the initial construction of phase I. I do agree with the comment: "He UM advised that if Mr. Jaque were to provide him with satisfactory answers to several items that he still considered outstanding, he would remove that caveat (deferred for three to five years)." I have not seen any answers yet. And of course, I would remove the caveat if the answers showed that the impacts were acceptable. —100— PUBLIC PLANNING - SEPTEMBER 29, 2004 -101- PUBLIC PLANNING - SEPTEMBER 29, 2004 APPENDIX "E" Revised Draft for Discussion Purposes (August 31, 2004) AMENDMENT NO. XX TO THE OFFICIAL PLAN FOR THE TOWN OF AURORA -102- PUBLIC PLANNING — SEPTEMBER 29, 2004 AMENDMENT NO. XX TO THE OFFICIAL PLAN FOR THE TOWN OF AURORA STATEMENT OF COMPONENTS PAGE PART I — THE PREAMBLE 1. Introduction 2 2. Purpose of The Amendment 2 3. Location 2 4. Basis of The Amendment 2 PART II — THE AMENDMENT 1. Introduction 5 2. Details of The Amendment 5 3. Implementation and Interpretation 7 —103— PUBLIC PLANNING — SEPTEMBER 29, 2004 PART 1— THE PREAMBLE 1. Introduction This part of the Amendment, entitled Part I — The Preamble, explains the purpose and location of this Amendment, and provides an overview of the reasons for it. It is for explanatory purposes only and does not form part of the Amendment. 2. Purpose of The Amendment The purpose of this Amendment is to establish a combined land use designation of "Business Park -Regional Commercial Centre" and related site -specific policies for the subject lands, which are located on the north side of Wellington Street East, west of Highway 404, as shown on Schedule "A" attached hereto and forming part of this Amendment. This combined designation is intended to permit regional -serving retail commercial uses, in addition to those uses already permitted by the underlying "Business Park" designation previously approved forthe subject lands in Official Plan Amendment No. 30, the Bayview Northeast Area 2B Secondary Plan. In tandem with planned business park uses on the easterly balance of the lands currently under the same ownership, the resultant integrated development is to be known as the "Aurora Gateway Centre", which will form a component of the larger "Aurora Gateway Business Park." 3. Location The lands which are affected by this Amendment are located within Part of Lot 21, Concession 3, in the Town of Aurora, as schematically shown on Schedule "A". The subject lands are generally bounded to the east by vacant lands planned for business park uses (fronting Highway 404) on lands currently under the same ownership, Wellington Street East to the south, Leslie Street to the west, and the future corporate office complex (and associated business park uses) of State Farm Insurance to the north. 4. Basis of The Amendment A regional retail centre has been anticipated by the Aurora Official Plan since the early 1990's, in a location to be focused somewhere along the Wellington Street East corridor. The 1991 Plan called for the exact location to be determined through a secondary planning study for that area. The ensuing secondary planning and market studies that were contemplated by Section 3.2.6 of the 1991 Plan were completed for Aurora in 1993, largely prompted by three parallel applications for major retail facilities in the Wellington Street East area. 2 —104— PUBLIC PLANNING — SEPTEMBER 29, 2004 It was concluded that there was indeed longer -term potential for a regional retail centre in Aurora — preferably in the vicinity of Highway 404 — but it was also recognized that such a facility would not likely be warranted for a period of 10 years or more. Accordingly, no specific site was designated for regional retail purposes at that time, in anticipation of a future proposal appropriately supported by the requisite studies, when warranted by market conditions and other planning considerations. Locating a regional retail centre in the Wellington Street East corridor is consistent with the planned commercial structure and hierarchy of Aurora and consistent with the Plan's commercial goal (in Section 3.2) to provide "A full and viable range of commercial centres, at the regional, community and neighbourhood levels ... (to meet)...the material, social and employment needs of the people in Aurora." This broader policy intent was re -affirmed through the adoption and approval of Aurora Official Plan Amendment No. 30, the Secondary Plan for the Bayview Northeast Area 2B planning precinct, which includes the subject lands. OPA 30 provides, among other things, that: "Regional -serving Retail Commercial uses shall be considered by the Town subject to a public process and amendment to this Plan on lands designated Business Park on the north side of Wellington Street between Leslie Street and Highway 404..." (S. 3.4.1(b)) The subject lands are on the north side of Wellington Street East between Leslie Street and Highway 404, and thus, are at the location contemplated for a regional -serving retail commercial centre in Aurora. The policies of that secondary plan, Section 3.4,1(b), expressly contemplate the submission and consideration of a proposal (by Official Plan amendment) for a regional - serving retail commercial centre, within the broader business park context planned for the lands adjacent to Highway 404. At the same time, the addition of this major retail component is not to be accommodated at the expense of the long-term viability, functionality and attractiveness of that planned business park, given the prominence of its location at this strategic gateway to urban Aurora. Before approval of the regional commercial designation can be obtained, a number of requirements must be satisfied — including pre-eminent design, comprehensive planning, acceptable impacts on surrounding uses, and the provision of acceptable market and traffic studies. k] —105— PUBLIC PLANNING — SEPTEMBER 29, 2004 The Aurora Gateway Centre development proposal has been supported by a comprehensive range of appropriate studies, to address Official Plan requirements and other matters, including market feasibility and impact, traffic impact, economic impact, functional servicing, urban design and land use planning considerations. These studies have provided a foundation for this Amendment, which is seen to be appropriate on the following land use planning grounds: ♦ all of the relevant site location and other suitability factors indicate that the subject lands are very well -suited to the proposed regional -serving commercial uses; ♦ the development proposal reflects due regard for the relevant aspects of the Provincial Policy Statement; ♦ the proposal accords with all of the relevant considerations and requirements in the York Region Official Plan; ♦ the Oak Ridges Moraine Conservation Plan does not impinge on the development potential of the site; ♦ the subject proposal will provide a viable complement to the Town's existing and planned commercial structure and hierarchy, and thereby notably improve current and future levels of retail service to Aurora's residents; ♦ the proposed development will benefit both the Town's economy and sense of community; ♦ the Town's market study (feasibility and impact) requirements have been appropriately met, with a particular focus on relevant public interest concerns — the results of the market study support the appropriateness of the proposed region - serving retail centre, from market feasibility and impact perspectives; ♦ the Plan's various policy requirements which relate to the consideration of a regional commercial development on the subject lands have all been appropriately addressed bythis proposal; furthermore, the current proposal seeks to fulfill a long - recognized potential to serve a regional retail market from this strategic location; ♦ the supporting economic analysis shows that the Town's longer -term supply of employment lands will be adequate to meet projected needs, in the context of the prospective region -serving retail/service commercial facility on the subject lands, at the scale proposed; and, ♦ the subject development proposal reflects due regard for the symbolic importance and related urban design emphasis placed on the site and vicinity by the Town's planning policy regime. 4 —106— PUBLIC PLANNING — SEPTEMBER 29, 2004 PART II — THE AMENDMENT a) Introduction All of this part of the document entitled Part II — The Amendment, consisting of the following text and attached map designated as Schedule "A" (Land Use Plan), constitutes Amendment No. XX to the Official Plan for the Town of Aurora. b) Details of The Amendment The Official Plan of the Town of Aurora is hereby amended as follows: Item (1): Schedule "AX Land Use Plan, being part of the Bayview Northeast Area 2B SecondaryPlan (Official Plan Amendment No. 30), is amended bychanging the land use designation for the lands described as Part of Lot 21, Concession 3 EYS, from "Business Park" to "Business Park - Regional Commercial Centre, See OPA XX", as shown on Schedule "A" attached hereto and forming part of this amendment. Item (2): Section 3.4 Commercial Policies of the Bayview Northeast Area 2B Secondary Plan (Official Plan Amendment No. 30) is hereby amended as follows: 1) subsection 3.4.1 b) is deleted in its' entirety and replaced with the following: "The development oflands at Highway404 has been identified by Council as a high priority, with an intent to encourage high quality building and site design in the near to long term. These lands are designated for a combination of Business Park and Business Park - Regional Commercial Centre uses, in recognition of the high visibility and accessibility of lands between Leslie Street and Highway 404, and the attractiveness of this location for uses serving not only the growing population of Aurora but also the surrounding urban and rural areas." ii) subsection 3.4.1.c) is amended by the addition of the words "Yi Business Park- Regional Commercial Centre "as a third classification in the list of commercial categories established by this Secondary Plan, and by the deletion of the subsequent sentence which reads, "A Regional -serving Retail Commercial designation may be added by amendment to this Plan subject to Section 3.4.1 b) of this Plan." iii) a new Section 3.4.4 "Business Park - Regional Commercial Centre" is added, with site -specific policies as follows: N —107— PUBLIC PLANNING — SEPTEMBER 29, 2004 a) The Business Park -Regional Commercial Centre designation applies to certain lands along the north side of Wellington Street East between Highway 404 and Leslie Street. As detailed in subsections b), c) and d) below, this designation shall maintain underlying policy permissions for Business Park uses, while also enabling major, regional -serving retail/service commercial uses on the subject ian ds. This mix of permitted uses shall be designed and developed in a manner compatible with and complementary to the planned business park uses on adjacent lands to the east, as well as other planned business park development to the north and south. A key design objective shall be a cohesive overall development scheme which exhibits a high standard of urban design, commensurate with the prominent regional location of the site at this important gateway to urban Aurora. Development of the subject lands shall also reflect due regard for the Urban Design Guidelines of the Wellington Street East Corridor. b) The underlying use and developmentpolicies applicable to Business Park uses on the subject lands, as set out in Section a of this Secondary Plan, shall continue to apply. c) in addition to the Business Park uses permitted in Section 3.5 of this Secondary Plan, also permitted on the subject lands are Regional Commercial uses as per Section 3.2.6 of the Aurora Official Plan, including a full range of complementary retail and service commercial, recreational, cultural, office, entertainment, institutional and hospitality service uses. Commercial uses are anticipated to include a mix of large- floorplate, mid -size and smaller operators. d) Furthermore, the Regional Commercial uses contemplated for the subject lands shall be subject to the following site -specific policies: I) Notwithstanding Section 3.2.6 of the Aurora Official Plan: the permitted commercial (retail and service) uses are not required to be in an enclosed mall format, but rather, maybe developed as free-standing, multiple -tenant or mixed -use buildings; a first -line department store is not a required component of this development, but there shall be a minimum of two (2) primary (large-floorplate) retail operators each having a minimum commercial floor area of 9,300 sq. m; and, the maximum aggregate commercial floor area for the Regional Retail Centre component shall be approximately 50,200 sq. m. 0 110 PUBLIC PLANNING — SEPTEMBER 29, 2004 li) Development of regional -serving retail commercial uses shall occur on a phased basis, with the first full year of operation of the initial development phase not to occur before 2006. Appropriate phasing details shall be established on a site -specific basis through implementing zoning provisions. iv) Subsection 3.5.2 e) is deleted in its' entirety, and the subsequent subsections f , g) and h) are re -labelled e), f) and g), respectively. 3. Implementation and Interpretation The implementation and interpretation of this Amendment shall be in accordance with the respective policies of the Aurora Official Plan and the Bayview Northeast Area 2B Secondary Plan (Official Plan No. 30.) 7 —109— PUBLIC PLANNING - SEPTEMBER 29, 2004 PUBLIC PLANNING - SEPTEMBER 29, 2004 -111- PUBLIC PLANNING - SEPTEMBER 29, 2004 THE CORPORATION OF THE TOWN OF AURORA By-law Number 4600-04.0 BEING A BY-LAW to Confirm Actions by Council Resulting from the Meeting of September 29, 2004. THE COUNCIL OF THE CORPORATION OF THE TOWN OF AURORA HEREBY ENACTS AS FOLLOWS: 1. THAT the action of the Council at its meeting held on September 29, 2004 in respect to each motion, resolution and other action passed and taken by the Council at the said meeting is, except where prior approval of the Ontario Municipal Board is required, hereby adopted ratified and confirmed. 2. THAT the Mayor and the proper officers of the Town are hereby authorized and directed to do all things necessary to give effect to the said action or to obtain approvals where required and to execute all documents as may be necessary in that behalf and the Clerk is hereby authorized and directed to affix the corporate seal to all such documents. READ A FIRST AND SECOND TIME THIS 29rH DAY OF SEPTEMBER, 2004. READ A THIRD TIME AND FINALLY PASSED THIS 29rH DAY OF SEPTEMBER, 2004. T. JONES, MAYOR K. EWART, DEPUTY CLERK -112- ADDITIONAL ITEM TABLED FOR SPECIAL COUNCIL MEETING - PUBLIC PLANNING Wednesday, September 29, 2004 ➢ Letter from Aurora residents Re: Item 1 - PL04-109 — Zoning By-law Amendment Application 74 Wellington Street East ➢ Letter from Kirsten Kontor & Dave Walker and Theresa & Quinn Bingham Re: Item 1 - PL04-109 — Zoning By-law Amendment Application 74 Wellington Street East ➢ Memorandum from the Economic Development Officer Re: Item 3 - PL04-112 - Whitwell Developments Limited (First Professional) 5EP 29-2004 00:46 W 5 I A T F.01 Mr R Panizza Clerk Town of Aurora 100 John West ,Way Aurora, Ontario L4G 6J1 September 28, 2004 Re: Re -zoning I,Applicatio_n_ on Centre Street, Fiie Number 014-09-'04 Please be advised that the undersigned do not support the above re -zoning application insofar as it permits traffic to exit on to Centre Street, for the following reasons. 1. The proposed one-way drive -through from Wellington Sheet to Centre Street would increase the traffic flow tc Centre Street. Traffic in this area is already:acknowledged to be a serious problem. Residents are concerned about the potential for increased traffic on this residential street. The Planning Report states that,the Public Works Department does "not anticipate increased levels of traffic on Centre Street" from the proposed one-way drive -through, This conclusion seems surprising -- ie that it will be a business with no customers. But even if there will be little additional traffic from the present owners, future owners may well have different businesses which -will generate significant traffic flow_ Further, residents are concerned that this one-way drive -through could be used as a short-cut from Wellington to Centre for 'traffic not related to the business. A { ON SEP-29-2004 08:46 W S I A T 2 M Traffic calming measures are currently being examined by the Town and local residents, The One- way drive -through part of this application should be deferred urytil after the traffic calming recommendations have been made. 2. The creation of a parking lot exit in the middle of the street ;between existing residential homes will significantly change the character of this part of Centre Street. Residents in this older area take pride in their homes. The Historical House Tour, which took place only weeks agq, included two homes on Centre Street which are in (3lose proximity to this proposed parking lot exit. Unfortunately, being close to Wellington makes this neighbourhood vulnerable to encroaching commercial development. We do not have confidence that the recommendations of constructirq a fence with "decorative detailing" and some shrubs and vines will ever effectively disguise a parking lot exit to Centre Street. All of which is respectfully submitted. cc Aurora Planing Department Signed by ths�following Aurora residents: ��Name y� Cam-- 4�5+ 8 qI �u SEP-2S-2004 08:47 W 5 I A T 41, ..y.. - 10:&,/,� Da4 0.✓ /S- P.03 �L, C41 I 0 0 3 TOTAL P.03 September 29, 2004 BY PAX AND MAIL Mr. Bob Ponizza Clerk Town of Aurora 100 John West Way Box 1000 Aurora, Ontario L4G 6Z1 Dear Ms. Celebre: Re: Opposition to Rezoning Application D14-0904 74 Wellington Street Town of Aurora This letter has been prepared on behalf of residents of Centre Street in order to document our opposition to the above noted rezoning application to allow a change in use at 74 Wellington Street. It is our understanding that the proposed change in use would require a parking lot to be constructed at the rear of the existing building, thus providing 10 new parking spaces in accordance with the current by-law, as well as an exit onto Centre Street. As residents of Centre Street, we have a number of concerns related to the proposed parking lot and exit onto Centre Street. Firstly, Centre Street is one of a handful of streets that comprise the north-east quadrant of the residential section of historic Aurora. The oldest house on the street dates back to the mid 1800s, while a number were constructed around the turn of and into the first quarter of the 20fh century. Since then, there has been a significant amount of infill development, resulting in the establishment of a residential community on the north side of Wellington Street. It should be noted that the parking lot at the rear of 74 Wellington Street is proposed in between two existing historical single family dwellings, both of which date back to the early 1900s. While the rear of the subject property is currently fenced and well -vegetated, the proposed paved parking lot would result in a drastic change to the character of this section of the street. Instead of being a self- contained residential street along this section of Centre, a through -way to Wellington Street would be established and the residential character interrupted by an incompatible parking lot. Though we note that some fencing and landscaping is proposed along the property boundary, we do not feel that the proposed screening measures would mitigate the change in character that would result from the introduction of a parking lot between historical houses in the middle of our residential street. Secondly, Centre Street is currently under significant traffic pressure due to the increased volume of cars travelling through the downtown core of Aurora from both the east and the west as development on the outskirts of town continues to progress. As Centre Street is one street north of Wellington, connecting Industrial Parkway to Yonge Street, it has become an alternate route for those attempting to bypass the often congested intersection of Yonge and Wellington. It should be noted that the volume and speed of cars travelling along this C:\WINNT\TEMPORARY INTERNET FILES\OLK3\WELLINGTON ST_REZONING.WPD Mr. Bob Panizza - 2 - September 29, 2004 residential street is a continuing safety concern for residents and compromises the residential character of the street. A quadrant -wide traffic calming initiative is currently underway for the north-east quadrant of historic Aurora to determine what sort of traffic calming measures can be implemented across the quadrant to control the speed and volume of cars using these residential streets as through -ways. As a result of this initiative and the reality of the existing traffic pressures on Centre Street, we find it counter -intuitive for the Town to be considering an application that will result in not only increased traffic emptying onto Centre Street from the commercial property, but also in the creation of yet another cut -through alternative from Wellington to Centre Street for those seeking to bypass the intersection of Yonge and Wellington. While the applicant may argue that the current use of the property will not result in any noticeable increase in traffic due to commercial customers, once the parking lot is established, any future owners of the property will have access to an established parking lot and the potential for future increases in use may rise considerably. Finally, we would like to raise a concern regarding potential loitering and use of the proposed parking lot by those who are not customers of the business at 74 Wellington Street. In the past, the parking lot at the corner of Centre Street and Wells Street has been used frequently during evenings and weekends as a local hangout, with parties often extending into the early morning hours. The owners of the business at Centre and Wells eventually put chains up to restrict vehicular access to the parking lot during off hours, but the opportunity to use such areas as hangout spots continues to exist. While the use of the parking lot on this corner for these purposes is an annoyance to neighbours living in close proximity to this intersection, the impact would be much greater if the parking lot were sandwiched between two residential dwellings, as is proposed behind 74 Wellington Street. In light of the above, as residents of Centre Street, we have a strong opposition to the approval of any application that requires a parking lot to be constructed behind the existing building with an exit onto Centre Street. We are advocates of the historical, residential community of downtown Aurora and wish to see the atmosphere in this neighbourhood improved, rather than diminished through the introduction of incompatible uses. Centre Street is home to a growing number of young families, many of whom are restoring historical homes to their previous condition, attempting to foster an improved sense of community and quality of life on this historic street. While we do not object to the conversion of historical buildings on Wellington Street from residential to commercial properties, we feel that the impacts on neighbouring residential communities should be carefully considered by Town staff. We are of the position that the parking needs of the commercial properties on Wellington Street should be satisfied within the commercial section of downtown Aurora, without impacting the surrounding residential streets. As such, parking lot entrances and exits should be restricted to Wellington Street only, with fencing and landscape buffers promoted at the rear of these properties to reduce the impacts of any incompatible uses proposed adjacent to residential properties. Primarily, we wish to maintain the residential quality of our street and foster opportunities to improve the quaint, historic character of the north-east quadrant of Aurora and hope that Town staff and Town council understand how this current proposal may negatively impact C:\WINNT\TEMPORARY INTERNET FILES\OLK3\WELLINGTON ST_REZONING.WPD Mr. Bob Paniaa - 3 - September 29 2004 the residential quality of life on Centre Street. Yours truly, Klrsten Kantor & Dave Walker Theresa & Quinn Bingham Mentre Street Wentre Street c.c.: Sue Siebert, Director of Planning C:\WINNT\TEMPORARY INTERNET FILES\OLK3\WELLINGTONST REZONING.WPD W_W=6 To: Mayor and Members of Council From: Dino Lombardi, Economic Development Officer Date: September 29, 2004 Re: Additional Information re Agenda Item #3 (PL04-112) September 29, 2004 Public Planning Meeting — Whitwell Developments Limited (First Professional) File Nos. D09-10-03 & D14-28-03 — Economic Development Division Comments As per the direction from Council at the September 28, 2004 Council Meeting, I offer my comments regarding the applications referenced above. The Economic Development Division has reviewed the subject applications for the Whitwell Developments' property at the north east corner of Wellington Street East and Leslie Street, and is generally in support of the revised proposal as submitted by the applicant. The revised Concept Plan represents a distinct improvement to the original application and attempts to address various issues previously raised by Town staff, such as: • Providing a larger office/business park component that allows a more functional, efficient, and marketable office campus; • Orienting the office campus layout to the north, by massing office uses adjacent to the State Farm development; • Redesigning the retail component by concentrating the major retail space in the west quadrant of the site; and • Addressing the streetscape by locating retail spaces in proximity to Wellington Street. There are, however, issues that have been identified by the Town's peer reviewers, as well as the Economic Development Division, which may require further clarification by the applicant. These include the following: • Page 1 1. It is recommended that Whitwell explore other options to providing access to the proposed business park lands. The EDO concurs with Planning Department staff that other access options that either link the office area directly to the State Farm Complex or provide access from Street A (the main north/south collector road) should be explored in order to make these lands more marketable. Forcing officer workers to access these lands by traversing the internal retail road grid and parking areas is unorthodox, impractical and will result in congestion and user frustration. Any success in marketing the business park lands and securing future tenants may depend on the provision of direct and unambiguous access from a main street or non-commercial entrance point. 2. The Town must be confident that the integration of office/business park elements within a regional -scale 'new format' retail centre as the proposed by the applicant will be successful and not impact the importance of this employment centre. Staff is unaware of any example of a 'retail power centre' in Ontario being developed concurrently with an office/business park element as an integral component. Typically, in examples of existing retail centres such as the Scarborough Town Centre and Square One/Mississauga, retail uses existed prior to the development of office/business uses. Further, these office components developed in distinct business precincts that were adjacent to, but physically separated from the enclosed shopping centre by main roadways or other land uses. The main concern with this proposed development is that the power centre does not overwhelm the business park use or jeopardize its planned function as a major employment node. Any impact on the importance of this node could result in a lack of interest for businesses as a corporate address. 3. The Town's economic peer reviewer is now satisfied that the revised Concept Plan submitted with this application, which increases the business park component to approximately 22.5 acres, will result in an adequate supply of employment land for the Town to the year 2016. The long term viability of the business park component within this development must be assured by the applicant in order that these lands develop as a modern business park. 4. Historically, there is anecdotal evidence to suggest that municipalities experience an increase in applications to redesignate employment lands that abut successful retail power centres. As a result, staff is concerned with the issue of employment land retention within the remainder of the Highway 404 Business Park. The lands south of Wellington Street East, adjacent to Highway 404, are well positioned and strategically located within Aurora and enjoy high exposure to the Highway. The Town should continue to view these lands as high priority development and they must be retained as employment lands for the future. As such, staff concurs with the Town's planning peer • Page 2 reviewer that the Official Plan Amendment should contain policies that emphasize the importance of this employment node and wording that restricts additional retail uses to the Whitwell site. Economic Development Officer Ext. 4742 • Page 3