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DS 151-2015, Development Variance Permit, 74 and 82 Gladwin Road

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DS 151-2015, Development Variance Permit, 74 and 82 Gladwin Road ca '~A COUNCIL REPORT ABBOTSFORD Report No. : PDS 151-2015 Executive Committee October 29, 2015 File No: 3020-20/D15-039 To: Mayor and Council From: James Bryndza, Planner Subject: Development Variance Permit application for the property, located at 74/82 Gladwin Road Owner: Kahlon Farms Ltd. (Directors: Gurdip Singh Kahlon, Sukhvinder S. Kahlon, Sohan Singh Kahlon and Kuldip Singh Kahlon) RECOMMENDATIONS 1. THAT application 3020-20/D15-039 for a Development Variance Permit, as detailed in Report No. PDS 151 -2015, be approved in principle, and proceed for public comment at an upcoming Council Hearing; and after considering the comments and concerns of surrounding property owners and occupiers at the Council Hearing, if Council wishes to proceed with the issuance of Development Variance Permit No. 1996, the appropriate motion will be: 2. THAT application 3020-20/D15-039 to issue Development Variance Permit No. 1996, as detailed in Report No. PDS 151 -2015, be approved , subject to addressing the following: a. resolution of an outstanding building permit (No. 03-285957) or provision of a cash security to cover the cost of construction for an on-site water storage facility for the existing sprinkler system; and b. the applicant enter into an access agreement with the City for an existing driveway on 0 Avenue on the City's unconstructed road right of way; and 3. THAT the Mayor and Corporate Officer be authorized to execute all documents relating to this matter. SUMMARY OF THE ISSUE Kah Ion Farms Ltd. consists of 100 acres of raspberries and 200 acres of blueberries and a berry packing facility located on 74 /82 Gladwin Rd . The farm currently processes approximately 2.5 million lbs. of blueberries and 1.5 million lbs. of raspberries per year at its existing 1,626m2 processing and storage facility. Approximately 80%-90% of the berries packed in the processing facility come from seven parcels of family owned and operated farmland located in Abbotsford. Approximately 80 employees at Kahlon Farms harvest berries both by hand and machine and transport them to the packing facility. Raspberries are usually sorted, graded and packed into 28 lb. pails. Blueberries are typically individually quick frozen and packed into 30 pound cardboard cases. Some of the berries are held on site and the balance is stored offsite at third party commercial storage facilities. In some cases L:\ DlS\DlS-039\Council\Council Report\ PDSlSl-2015 74-82 Gladwin.docx Report No. PDS 151-2015 Page 2 of 6 product is shipped outside the municipality when local space is unavailable. The berries are sold to retailers and manufacturers in Canada; the majority of berries are exported to USA and Japan. The proposed expansion is expected to increase processing capacity from 2-4 million lbs. of berries to 6-8 million lbs. of berries each year, an expansion that requires a 2 2 building of 4,044m , which is 2,044m larger than what the property's A 1 zoning permits (see Figures 1-5). BACKGROUND Proposal: The applicant is proposing to increase the maximum permitted floor area for an Accessory Processing Use from 2,000m2 to 4,044m2 to accommodate expansion of an existing a berry processing, packing 2 and storage facility, which is currently 1,626m . Owner/Applicant: Kahlon Farms Ltd. Legal Description: LOT 28 SECTION 4 TOWNSHIP 16 PLAN NWP05211 NWD OCP Designation: Agricultural Zoning: Agricultural One Zone (A 1) Site Area : 7.24ha (17.9ac) Description: The subject property is located in the Agricultural Land Reserve (ALR), at the foot of Gladwin Road, along the Canada-USA boarder. The property generally slopes south and to the east but also has a 1 Om high escarpment running north-south through the middle. A single family dwelling is located on the higher portion of the property; an existing processing facility is located in the lower portion; the remainder of the property is in blueberry and raspberry production. Surrounding Uses: N: Farms, zoned Agricultural One Zone (A 1); S: Unconstructed road right of way (0 Ave) and USA beyond; E: Farm, zoned Agricultural One Zone (A 1); W: Gladwin Rd and residential and farm beyond, zoned Agricultural One Zone (A1 ). DISCUSSION Official Community Plan/Zoning/Agricultural Policies 1. The Official Community Plan (OCP) (2005) designates the subject property as Agricultural. Jhe intent of this category is to provide a stable, long-term land base for farming and other uses that support farming operations. The proposal to increase the maximum size of the processing facility supports the expansion of the farm operation, and contributes to enabling long-term agricultural uses on the property. 2. In 2011, Council approved the Agriculture Strategy which aims to enhance the health and viability of the agricultural economy through seven key objectives. One of these L:\DlS\DlS-039\Council\Council Report\PDSlSl-2015 74-82 Gladwin.docx Report No. PDS 151-2015 Page 3 of 6 objectives includes fostering agriculture-friendly regulations and enhancing opportunities for agricultural enterprise. The proposed variance would allow the farm to expand their operational capacity and enable the owners to process a larger volume of harvested products. 3. Under Abbotsford Zoning Bylaw No. 2400-2014, accessory farm product processing is permitted in agricultural zones (A 1 & A2) when accessory to an Agricultural Use (e.g. growing of berries). A condition of use for Accessory Processing is that it is permitted as long as buildings and structures housing such uses together do not exceed 2,000 m2 in floor area. As such, facilities larger than 2,000m 2 are deemed to be an industrial operation and are permitted in the 12 and 13 zones, where no maximum floor area exists, but maximum lot coverage is set at 60%. The applicant is proposing to vary the maximum permitted facility size to 4,044m2 (see Figure 4). 4. According to the Agricultural Land Commission (ALC) Use, Subdivision and Procedure Regulation (BC Reg. 171/2002), the storage, packing, product preparation and processing of farm products are permitted farm uses within the ALR provided a minimum of 50% of the product being processed originates from that particular farm operation. If a facility meets this criterion, a local government is not able to prohibit the use; however, the ALC's Regulations do allow a municipality to set a maximum building area or site coverage for processing uses. Abbotsford's Zoning Bylaw presently establishes a maximum size of 2,000m2 for an Accessory Processing Use in A 1 and A2 zones. The Ministry of Agriculture recently announced that new regulations will promote the use of cooperatively owned processing facilities, which may result in changes to current ALC policy. Proposal 5. The owner is planning to expand the accessory processing facility in two phases. In the first phase the applicant plans to add approximately 1,301 m2 to the existing 2 facility, which currently measures approximately 1,626m . This would bring the total 2 area of the processing facility to 2,927m . In the second phase the applicant plans to demolish and rebuild portions of the existing processing facility, bringing the total area of the building(s) that house the facility to 4,044m2 (see Figures 3 & 4). This area will also include space for farm related uses such as office, washrooms and lunch rooms, as well as the Accessory Processing Use. The applicant has stated that with the proposed expansion, approximately 80%-90% of the berries packed on the processing facility will still come from the seven parcels of family owned and operated farmland located in Abbotsford. Berry Processing Industry Overview 6. According to the B.C. Blueberry Council, blueberry crop production has increased by 69% in the last 5 years, from 90 million pounds in 2010 to 152 million pounds in 2014. This increase in crop volume is indicative of a trend toward greater berry production and yield over the next few years. With more than $1 billion in sales in the past five years, British Columbia is now the biggest highbush blueberry-growing region in the world. As a result, staff are starting to experience a growing number of variance requests to increase the maximum permitted floor area of processing facilities. L:\DlS\DlS-039\Council\Council Report\PDSlSl-2015 74-82 Gladwin.docx Report No. PDS 151-2015 Page 4 of 6 7. The federal government recently announced a $65 million trade deal with China that is expected to impact blueberry production in coming years (see Attachment C). The Ministry of Agriculture also recently announced that new regulations will promote the use of cooperatively owned processing facilities (see Attachment D); however, no guidance has been provided to municipalities so far as to how this is to be regulated. These announcements are expected to contribute to the growth in blueberry production in coming years, and may lead to subsequent provincially-mandated amendments to municipal zoning bylaws. 8. Planning staff met with the Ministry of Agriculture to discuss processing facilities and berry industry trends on June 9, 2015. Ministry staff projected blueberry crop volumes to increase to approximately 170 million pounds next year, and forecast 10- 15 million pounds per annum growth between 2016 and 2024. Ministry staff believe that increasing processing and storage capacity in the berry industry should be addressed in light of the use of ALR land for non-agricultural purposes and the need for regulations which differentiate between, and regulate, fresh packing, freezing, and cold storage uses. 9. Due to lower Works and Services standards, lower Development Cost Charges (DCCs) and lower taxation rates, there are cost and market advantages to establishing processing facilities in agricultural, rather than industrial, areas.
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