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From the Oct 1 – 7, 2002 issue of Business in Vancouver.
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False Creek building rules upset
landowners
Unknown costs of green buildings and sustainable construction principles slows work, irks developers
by Peter Mitham
Southeast False Creek redevelopment using environment-friendly building principles is foundering over conflicting notions of what those principles involve.
The 80-acre former industrial site includes 62 acres of city-owned land as well as 18 acres of private holdings.
The city wants to rezone the private holdings so future development follows sustainable practices, which could reduce construction waste by 75 per cent and energy use by up to 60 per cent.
Developers support the initiative but disagree with the city on what constitutes sustainable floor space ratios and building heights.
The city says new buildings should be 50 metres high with a 3.5 FSR (the ratio of floor space to lot size). Developers want a maximum height of 75 metres and 4.5 to 5 FSR, which would ensure greater flexibility in construction and better potential returns on projects.
Development in the area is now limited to 20 metres and one FSR.
The dispute prevents passage of a bylaw before November's civic election that would have set parameters for development, said John Irwin, co-ordinator of the Southeast False Creek Working Group, an advisory body with representatives from the city, landowners and other stakeholders.
Any progress won't happen now until at least January, at which time Irwin said council could expand the bylaw to include both the public and private lands on the site.
The delays have "totally frustrated" Michael Overholt of Murphy Stationery Co. Ltd., which has owned a 1.3-acre site between Cook and Columbia streets since 1982. The property is a prime development site, and Overholt wants to know the city's requirements so he can plan.
Right now, he said, developers have no idea what the costs of sustainable development will be.
"The city was asking us to pioneer, basically, with a hood over our eyes," he said. Overholt cited unknown costs ranging from levies to cover local amenities, potential environmental clean-up costs and possible restrictions on underground garage construction.
With so many unknowns, he said developers naturally sought incentives to sweeten the site's potential.
Michael Audain, president of Vancouver-based Polygon Homes, supports the implementation of sustainable principles if developers receive incentives.
"It makes sense," said Audain, whose company plans an 18-storey commercial-residential development on its site just west of Cook Street. "If [city staff] tie us in on the sustainability principles, then we're at a disadvantage to the rest of the city of Vancouver, which doesn't have the principles at the present time."
But outgoing Vancouver councilor Gordon Price said the city's concerns over height are justified. Yet he also understands developers' concerns.
Even though the site shouldn't be difficult to sell to homebuyers, given its waterfront location and proximity to a possible Olympic park, Price said the cost to developers of incorporating sustainable features begs some sort of compensation.
"If you're going to put in additional requirements, it's a good time to put in some incentives," he said.
Irwin said implementing sustainable principles for Southeast False Creek will provide a basis for development guidelines elsewhere, including the old Weyerhaeuser mill site overlooking the Fraser River in East Vancouver. "If we can figure out the bonusing or the incentive or the regulatory regime required to get the private market to do it then we can increase the sustainability of the city," he said.
One option the city is considering is Leadership in Energy and Environmental Design, or LEED, a certification program developed in the U.S. It has proven popular in Seattle, Portland and California.
Currently, the Forest Stewardship Council is the only group operating in Canada with LEED accreditation.
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