Staff Report - Z16-0016 (Application to amend Hotel definition to permit hotel use at 2789 Grainger Road)

Background

On October 5th, 2005, Council rezoned the subject property from C5 (Office Commercial) to C8 (Community Town Centre Pedestrian) to allow for commercial and multi-family residential uses. “HOTEL” is a permitted use in the C8 zone.

Hotel is been defined in Zoning Bylaw No. 300 as: “Hotel” means a building or buildings providing accommodation for the travelling public only, in units without cooking facilities each of which has its own sanitary facilities including water closet and wash basin, in respect of which:

1. The stay is limited to two months;
2. A guest register is required to be kept pursuant to the Hotel Guest Registration Act; and
3. A public dining room or cafe is provided on the same lot;

Council may wish to note that there are suites in the Lynburne Place portion of the Westin Hotel at Bear Mountain (fractional ownership) which include full cooking facilities, notwithstanding the bylaw requirement to the contrary.

Commentary

The applicant is proposing to develop an apartment-type boutique hotel where each guest room is afforded some individual convenience through the provision of cooking facilities (stove, refrigerator, kitchen sink and dishwasher). Given the provision of cooking facilities, the applicant would prefer not to develop a separate restaurant for this hotel use on site. Architecturally, this building will have the appearance of an apartment block. The distinction will be that a guest register is kept in accordance with the Hotel Guest Registration Act.

“Hotel” is currently a permitted use in the C8 (Community Town Centre Pedestrian) zone and the applicant has indicated that they will be able to provide adequate parking on site for the hotel use.

Council may wish to either make a general amendment to the definition of a hotel so that it may or may not include cooking facilities (and where cooking facilities are provided a hotel may or may not include a restaurant) OR allow this change as a spot zoning for this property only.

Financial Implications

The alternative to developing this site as a hotel (a commercial use) would be to see it develop as apartments with some commercial floorspace on the ground floor. Depending on the assessed value, Council could expect to see higher tax revenues from a hotel as a commercial use.

Legal Implications

The City’s agreement with Corix (Westshore Environmental Services) for the provision of sanitary sewers was predicated on the understanding that hotel rooms would be rooms without individual kitchen facilities (notwithstanding the fact that parts of the Westin Bear Mountain Hotel were apparently constructed with kitchen facilities under this agreement). Accordingly, the SCRF fee for a hotel unit is 40% lower than the SCRF for an apartment unit.

If Council wishes to extend the definition of a hotel room, as is now proposed, to include hotel rooms with facilities, Council may wish to also seek a supplemental agreement with Corix to address what is an appropriate SCRF for a hotel room with facilities. This being said, an apartment use is likely experience a 98% occupancy rate while a hotel use might only enjoy a 60% occupancy rate (the average vacancy rate in Victoria ranges between 55 and 65%). An occupancy rate should probably be incorporated into any determination of an appropriate SCRF for a hotel room with facilities. Conversely, it could probably be argued that the actual difference between a hotel room with facilities versus a hotel room without facilities would not amount to a significant burden on the sewer capital costs, and therefore no further action by the City is warranted.

Options

That the Planning, Zoning and Affordable Housing Committee recommend That Council:

1. Direct staff to prepare a bylaw to allow a hotel with cooking facilities but without an on-site restaurant at 2789 Grainger Road; OR
2. Direct staff to prepare a bylaw to generally allow hotels with cooking facilities, and where cooking facilities are provided, on-site restaurants are optional; OR
3. Take no action at this time with respect to the definition of Hotels;

Respectfully submitted

Submitted by:
Matthew Baldwin, MCIP, RPP
Director of Planning

Concurrence:
Matthew Baldwin, MCIP, RPP Director of Planning

Concurrence:
Mike Leskiw, Parks and Recreation Manager

Concurrence:
Brent Molnar, Manager of Land Development

Concurrence:
Steve Ternent, Director of Finance

Concurrence:
Jim Bowden, Chief Administrative Officer

:mgsb

Appendix A – Location Map

Appendix B – Site Map