DFO Implementation of Measures to Avoid and Mitigate (Attachment 7)
Letter from Fisheries and Oceans Canada (DFO) outlining recommended measures to avoid prohibited effects to fish and fish habitat.
Exhibit 7: Estimated Supportable Amount of Affordable Housing from Rezonings East of Cook
| Redevelopment Scenario | Old Low Density Commercial to 3.5 FSR (woodframe) | Old Low Density Commercial to 3.5 FSR (woodframe) | Old Low Density Commercial to 3.5 FSR (concrete) |
|---|---|---|---|
| Site Size | 16,554 | 44,690 | 44,690 |
| Current Zoning | C-1 | S-1 | S-1 |
| Current Use | Strip commercial | Car dealership | Car dealership |
| Bonus Density Subarea | east of Cook | east of Cook | east of Cook |
| OCP Base Density (FSR) | 2.0 | 2.0 | 2.0 |
| Potential Bonus Density (FSR) | 1.5 | 1.5 | 1.5 |
| OCP Maximum Density (FSR) | 3.5 | 3.5 | 3.5 |
| Assumed Total Units in Scenario with Bonus Density | 53 | 142 | 143 |
| 1. Estimated Maximum Potential CAC psf of Bonus Floorspace assuming 75% of Estimated Increase in Value Allocated to CAC | |||
| Summary of Potential Amenity Contributions (no Affordable Housing) | |||
| Estimated "Base" Value | $2,887,000 | $6,097,134 | $6,097,134 |
| Estimated Supportable Rezoned Land Value with Bonus Density, but no CAC | $3,266,258 | $8,887,340 | $5,786,320 |
| Estimated Increase in Property Value Due to Bonus Density | $379,258 | $2,790,206 | -$310,814 |
| Calculated Amenity Contribution at 75% of Increased Value | $284,443 | $2,092,655 | -$233,110 |
| Estimated Bonus Density Floorspace | 24,831 | 67,035 | 67,035 |
| 2. Estimated Maximum Negotiable Affordable Housing at OCP Maximum Density Assuming 75% of Increased Value Allocated Toward Affordable Housing (i.e. net cost of Affordable Housing = 75% of estimated increase in value due to rezoning) | |||
| Estimated Maximum (plus or minus 10%) Potential Affordable Gross Floorspace (sf), assuming CAC is the Affordable Housing | |||
| a Rental at 50% of HILs (avg rent = $450 per month) | 1,210 | 8,905 | -848 |
| b Rental at 90% of HILs (avg rent = $805 per month) | 1,724 | 12,683 | -1,137 |
| c Rental at 100% of HILs (avg rent = $895 per month) | 1,962 | 14,432 | -1,260 |
| d Affordable Ownership | 2,586 | 19,024 | -1,608 |
| Share of Bonus Floorspace | |||
| a Rental at 50% of HILs | 5% | 13% | -1% |
| b Rental at 90% of HILs | 7% | 19% | -2% |
| c Rental at 100% of HILs | 8% | 22% | -2% |
| d Affordable Ownership | 10% | 28% | -2% |
| Estimated Maximum Potential Affordable Units (rounded), assuming no CAC | |||
| a Rental at 50% of HILs (avg rent = $450 per month) | 2 | 12 | -1 |
| b Rental at 90% of HILs (avg rent = $805 per month) | 2 | 17 | -2 |
| c Rental at 100% of HILs (avg rent = $895 per month) | 3 | 19 | -2 |
| d Affordable Ownership | 3 | 22 | -2 |
| Share of Total Units in Project | |||
| a Rental at 50% of HILs | 3% | 8% | -1% |
| b Rental at 90% of HILs | 4% | 12% | -1% |
| c Rental at 100% of HILs | 5% | 14% | -1% |
| d Affordable Ownership | 6% | 15% | -1% |
As shown in Exhibit 7:
- The total number of affordable housing units that can be supported at these case study sites ranges depending on the property value under its existing use, the type of affordable housing and the construction material (wood or concrete). Exhibit 8 summarizes our estimates assuming the rezoned projects are built using woodframe construction.
Exhibit 8: Summary of Supportable Affordable Housing at Rezonings East of Cook Street (woodframe)
| Affordable Housing Scenario | Total Supportable Affordable Housing Units | Share of Total Units in Project | Affordable Housing’s Share of Bonus Floorspace |
|---|---|---|---|
| 50% of HILs | 1 to 12 units | 3% to 8% | 5% to 13% |
| 90% of HILs | 2 to 17 units | 4% to 12% | 7% to 19% |
| 100% of HILs | 3 to 19 units | 5% to 14% | 8% to 22% |
| Affordable Ownership | 3 to 22 units | 6% to 15% | 10% to 28% |
The upper end of these ranges is for case study sites that are vacant, used for surface parking, or built to a very low existing density. There are very few sites in the study area that would generate affordable housing at the high end of our estimated ranges.
- If concrete construction is required (due to a height in excess of 6 storeys), then rezonings in this subarea cannot support any affordable housing (under current market conditions).
3.3 Summary of Core Area Analysis
3.3.1 Target Fixed Rate CAC Analysis
Many sites in the study area are not rezoning candidates in the foreseeable future because:
- The site is more valuable under its existing use than as a development site at the maximum OCP density (with no amenity contribution) or
- The existing zoning permits a higher density than permitted under the OCP designation (e.g. R-48 sites).
Therefore, we would expect the number of rezoning applications in the study area to be small in any given year.
For sites that are financially attractive for rezoning and redevelopment, the calculated supportable CAC varies significantly across different sites in the Core Area, ranging from about:
- $5 to $29 per square foot of bonus floorspace in subareas B and C, depending on the existing use, the density of any existing buildings, and the permitted maximum density.
- $11 to $31 per square foot of bonus floorspace for sites east of Cook Street, depending on the existing use and the density of any existing buildings. This assumes that the OCP maximum of 3.5 FSR for sites East of Cook can be achieve using woodframe construction (6 storey or less). If projects need to be taller than 6 storeys (requiring concrete construction) to achieve 3.5 FSR, then rezonings east of Cook will not support an amenity contribution.
The high end of the estimated CAC range is for sites that are vacant, used for surface parking, or built to a very low existing density. However, based on our review of existing built densities and uses in the study area, there are very few sites in the study area that would generate a CAC at the upper end of our estimated range.
The calculated supportable CAC at most of the sites that we analyzed is in the $10 to $14 per square foot of bonus strata residential floorspace. A fixed rate target would need to be set within this range in order to avoid negative impacts on most rezonings. However:
- Some rezonings could make a significantly larger CAC contribution under the current negotiated approach.
- Some types of rezonings will not be able to support this CAC rate and would likely need to negotiate the rate lower.
Any increase in strata unit sales prices will have a material impact on the CAC rate that is supportable at rezonings in the Core Area. Therefore, the supportable rate could increase over time if there is escalation in strata unit prices.