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Industrial Lands Strategy Task Force May 2, 2019 Application Overview & Context Application Process to Date

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Industrial Lands Strategy Task Force May 2, 2019 Application Overview & Context Application Process to Date City of Delta’s Regional Growth Strategy Amendment Request MK Delta Lands Group Industrial Application Industrial Lands Strategy Task Force May 2, 2019 Application Overview & Context Application Process To Date Technical Evaluation (2015 – 2016) Public Consultation (2016) Delta Committee Review (2016) Burns Bog Scientific Advisory Panel Consultation (2016) Delta Public Hearing and Third Reading of Bylaws (2016) Agricultural Land Commission (2018) Metro Vancouver’s Consideration of RGS and Fraser Sewerage Amendments Regional Context - Existing EXISTING REGIONAL GROWTH STRATETY DESIGNATIONS Regional Context - Proposed AMENDMENTS REQUIRING METRO VANCOUVER APPROVAL Regional Considerations PROTECT INDUSTRIAL LAND SUPPLY • Regional and local shortage of industrial lands • 43 ha (106 ac) of new net developable industrial land in Delta • Site located directly Annacis Island south of Delta’s Industrial Area Sunbury industrial area North Delta • Strategically located Sunbury Industrial Area adjacent to the Hwy 17 major highways Proposed Development Site Regional Considerations PROMOTE SUSTAINABLE LAND USE AND TRANSPORTATION INFRASTRUCTURE • Industrial site to coincide with the Sunbury Interchange Project to improve traffic movement at Hwy 17 and Hwy 91 Connector • Employment area close to major highways and North Delta Regional Considerations PROTECT CONSERVATION LANDS • Delta has a history of conservation (BBECA) • Environmental buffers proposed for industrial site • Stormwater management to protect bog water • Development phasing to address settlement • Lots A, B & C proposed for protection with 132 ha (328 ac) of land to be transferred to Delta Regional Considerations PROTECT AGRICULTURAL LAND AND VIABILTY • ALR inclusion of Lot B approved (net increase of 15.3 ha (38 ac)) • $6 million contribution for irrigation & drainage to benefit 1,500+ ha (3,700+ ac) of agricultural lands • Agricultural buffer proposed for industrial site Westham Island Regional Benefits Summary 43 ha (106 ac) of new strategically located industrial lands 132 ha (328 ac) of land to Delta for conservation Protection of the BBECA Installation of perimeter buffers on the development site Inclusion of 78 ha (193 ac) of land into the ALR to offset exclusion $11 million amenity contribution (agriculture, transportation improvements and community amenity) Thank you Questions? City of Delta: MK Delta Lands PROPOSED METRO 2040 AMENDMENT James Stiver MANAGER, GROWTH MANAGEMENT AND TRANSPORTATION Industrial Lands Strategy Task Force - May 2, 2019 28955703 Metro 2040 Amendments • Within the Terms of Reference for the Regional Planning Committee – i.e. implementation of Metro 2040 • Metro 2040 lays out the process for all types of amendments to the regional growth strategy • The MVRD Board approves all amendments 2 Amendments to Metro 2040 Type 2 Type 3 Type 1 (Minor) (Minor) 2/3 weighted 50% = 1 Board Acceptance by all Board vote + vote and no affected local regional public regional public governments hearing hearing Voting Threshold Change the UCB; Change Urban Change goals or non-urban to land use strategies urban land use designation Example designations 3 Minor Amendment Process • Municipality requests amendment via Council resolution • Regional Planning staff prepare a report assessing the implications of the proposed amendment on the goals, strategies and policies of Metro 2040 • Application and report are circulated internally for comments from Parks, Utilities, Air Quality etc. – comments become part of report 4 Minor Amendment Process – cont’d Broadly, the issues considered: • containing and structuring growth • protecting agricultural, conservation and recreation, and industrial and employment lands • environment • climate change • transportation / mobility • utilities • proliferation of additional proposals 5 Minor Amendment Process – cont’d • Staff report and assessment goes to the Regional Planning Advisory Committee • Report is reviewed by the Regional Planning Committee (applicant presents) • Board considers 1st and 2nd reading of an amendment bylaw • Notification period for all affected local governments (includes TransLink, ALC, Port and others) and public comment period • Regional Public Hearing (for Type 2 amendments) • Board receives comments from notification period and considers 3rd and final reading of amendment bylaw 6 Comments today… • Any comments from Task Force members today will be provided to the Board at the time they consider first and second reading of the amendment bylaw 7 Location and Site Context 8 Metro 2040 Designations 9 Analysis: Goal 2 Support a Sustainable Economy Protect the supply of industrial land • Supply: + 43.8 ha (102.8 ac) • Location: Contiguous with industrial lands, SF Perimeter Road Protect the supply of agricultural land & promote viability • Supply: + Lot B, - Lot 4 = net gain of 15.4 ha (38 ac) in ALR • Quality: Lot B qualitatively better than Lot 4 • Viability: $6M drainage improvements - Westham Island • Metro 2040 Agricultural land = a loss, but will improve net regional agricultural productivity 10 Summary The proposed amendment will result in a net benefit to region by: • increasing the region’s agricultural land inventory and productivity; • increasing the region’s industrial land inventory; • transferring Lots A, B, and C into public ownership supporting their protection; and • improving protection for Burns Bog, subject to the success of the proposed mitigation measures. The Regional Planning Committee supported the staff recommendation to initiate the amendment, give the amendment bylaw 1st and 2nd reading and begin notification period. 11 Thank you Analysis: Goal 1 Compact Urban Area Urban Containment • Lot 4 mostly confined: - Situated south of UCB, and flanked by BBECA and ALR parcel. • Boundary extension: - Will not lead to proliferation of other amendment applications. - Will not undermine overall UCB objectives. • Exception: large lot (in ALR) to east: - Will likely lead to future amendment application. 13 Analysis: Goal 3 Protect the Environment Protect conservation and recreation lands • Lots 4, A, B, and C are zoned I3, in Sensitive Ecosystem Inventory • Transfer of A, B, C to City = protects bog lands from future development • Net gain in ecologically sensitive lands Protect and enhance natural features and their connectivity • Lot 4 impacts = loss of bog lands, site fill • Mitigations: Buffers; water quality and water level monitoring • Seen as acceptable, subject to mitigations 14 Analysis: Goal 5 Support Sustainable Transportation Options Coordinating land use and transportation for safe and efficient movement of people and goods and services • Location supports goods movement due to proximity to US border, Roberts Bank container terminal, Sunbury, River Road, Tilbury. • Direct access to Hwy 17 (major corridor). • Construction coordination with Sunbury interchange project. 15 Regional Industrial Lands Strategy FRAMING INDUSTRIAL LAND ISSUES Heather McNell DIRECTOR OF REGIONAL PLANNING AND ELECTORAL AREA SERVICES Industrial Lands Strategy Task Force, May 2, 2019 Presentation Outline • Industrial Lands – Current Reality • Review and confirm Task Force (Board) Directions . Vision . Scope of Deliverable: Actions for All . Definition of “Industrial” . 4 Themes • Introduce June Task Force Workshop 2 Industrial Lands: Current Reality Population Consumer Demand GDP Growth +35,000 +6.8% in 2017 4.2% (2014-2017) people / year (record high) 2.5% (2018) 3 Industrial Lands: Current Reality Q1 2019 vacancy rate = 1.2% Record high lease rates at $11.86 per sq ft. 4 Industrial Lands: Current Reality • Ongoing pressure to convert industrial lands (to residential, mixed use etc.) • Speculation – ongoing pressure to broaden the definition of industrial to include non-industrial uses (office, recreation etc.) • Trends toward stratification, pre-lease, and intensification 5 Industrial Land – Economic Value • 4% of the region’s land base • 27% of jobs in the region (direct employment = 364,100 jobs) • 55% are industrial jobs (200,400 jobs) 6 Industrial Land – Economic Value • Wages on industrial lands are 10% higher than the region’s average ($61,000 vs. $55,000) • Industrial jobs even higher ($65,400) • Generate $27 billion in direct GDP (30% of regional total) • Significant contribution to government revenues ($9B in total taxes) • Significant induced benefits to other sectors (e.g. construction, e-commerce) • Contribute to diversified economy (resilience) 7 Industrial Land – User Location and Space Needs • Anecdotal evidence that businesses are leaving the region; operating out of multiple locations; struggling for space and location • Objective: to better understand industrial user / tenant space and location needs and plans • Leveraged VEC 2018 survey to assess whether Vancouver specific findings were replicated across the region 8 Industrial Land – User Location and Space Needs • Biggest challenges: Finding / keeping qualified employees (77%) and Increased Operational Costs (75%) • Biggest opportunities in next 5 years: Scaling up operations (56%), new equipment, technology, automation (38%), new markets (37%) • 59% of businesses do not anticipate moving next 5 years; for those who said yes/maybe, 83% said to either Metro Vancouver or Fraser Valley 9 Industrial Land – User Location and Space Needs • 72% said current space meets their needs • Average time in current location and tenure is 15 years • 53% are in single tenant buildings; 44% in multi-tenant spaces • Biggest factors driving location:
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