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J JI J SHOPPING CENTRES 259 Yorkland Road, Suite 300, Toronto, Ontario M2J 582 Telephone (41 6) 493-91 12 Fax (41 6) 493-0329

June 9,2004

Mayor & Members of Council City of London 300 Dufferin Street London, ON N6A 4L9

Madame Mayor & Members of Council:

Re: First London North Developments Inc. Fanshawe Park Road and Hyde Park Road OPA and ZBA Application 02-66111

We are owners of the First London North Developments Inc. (“FLND”) site. You will be considering applications to permit an expansion of our shopping centre at the above noted intersection at your meeting on June 14, 2004. This matter was considered at the Planning Committee on June 7*, however, Committee made no recommendation to Council.

We are requesting Council to approve the staff recommended OPA and zoning by-law subject to the following modifications:

1. Defer the zoning of the woodlot and consider it with the balance of the FLND lands when development plans are prepared;

and;

2. Increase the staff recommended total floor area of 450,000 sq.ft. by a further 80,000 sq ft to 530,000 sq.ft. in the short term and 580,000 in the longer term which we note is a reduction from the amount of retail space requested in our original application.

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For your reference, I have attached our requested changes to the staff recommendation for your consideration.

Woodlot

As staff noted in their report, FLND’s woodlot Official Plan designation has been appealed to the OMB by the London Development Institute (LDI). Staff are revising the woodlot evaluation criteria. We prefer to wait until this exercise is complete and to deal with the woodlot zoning in conjunction with our residential land south of the commercial site.

Inclusion of the woodlot in the F’LND commercial zoning by-law would risk an OMB appeal of the entire by-law to consolidate the woodlot zoning with LDI’s appeal of the OP designation. This 3rd party appeal would thwart our ability to proceed with our commercial development if there were no appeals in regard to the retail zoning (which we expect to be the case). Therefore we request that Council defer consideration of the woodlot’ s zoning.

BRINGING VALUE TO CANADIAN

CO M MU N IT1 E S ’“

First London North Developments lnc. OPA & ZBA OZ-661 I June 9,2004

Floor Area Request

This application is driven by strong tenant interest in this location including: Canadian Tire, La Senza, EB ’

Games, Trade Secrets, First Choice, KFC/Taco Bell, English Butler and many others who which to make their own public announcements.

The difference between the staff recommendation and our request for the short term is only 80.000 sq.ft. and represents only a fraction (0.5%) of the London retail supply. The further 50,000 sq. ft for the longer term is a similar modest increase.

No Detrimental Retail Impact

There was no opposition to our application at the Public Meeting from either the public or other shopping centre owners in the area. These owners are experienced retail operators with sound knowledge of London’s retail industry. The lack of opposition from other retail centres shows that there are no legitimate concerns with respect to the proposed addition to the retail supply in the City.

The justification for staff‘s recommendation of maintaining 450,000 sq.ft. of retail gross floor area on our site is not supportable. Their concern that the additional floor space sought on this site would have a detrimental impact on other centres in north London is unfounded:

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North London shopping centres have very low vacancy rates; Retailers can not find suitable locations in northwest London shopping areas; The Masonville area is full with virtually no vacancy and lacks room to expand to accommodate large retailers new to the London or north London market; Other smaller shopping areas (like Oakridge, Sherwood Forest, Cherry Hill etc.) have low vacancies and are continuing to evolving and redevelop. Approval of the additional retail space on the FLND will not impact the role of these centres as they continue their community serving function.

The December 2003 Issue Paper: Commercial Land Supply and Demand is n‘ot a comprehensive retail market study and should not be relied upon to make this decision.

On the other hand, we have filed with the City a Planning Impact Analysis, as required by the Official Plan which addresses the matter of the implications of possible retail market impact. It determined that the new retail development proposed at our site will not have a significant effect on the existing retail centres. The report also noted that even if there were some store closures, evidence suggestes that those spaces are readily re-merchandized. Proof of this can be found through a consideration of the 1996 Evaluation of Planned Commercial Land Supply in the City of London, authored by London Planning Division. It concluded that there was a “more-than-adequate” supply of retail space in London. Since 1996, approximately 2.5 million sq.ft. of retail space has been added to the City’s supply, yet there has been no detrimental effect to the retail sector or blight caused by the new floor space.

As the staff report did not include our report, I have attached a copy of this Planning Irnpact Analysis, prepared by our planning and retail market consultants GSP Group Inc. and Tate Economic Research Inc. identifying how readily vacancies are re-merchandized, even large floor plates in northwest London where demand is exceeding supply. Additionally, enclosed is a copy of GSP Group’s letter to the

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First London North Developments Inc. OPA & ZBA 02-661 I June 9,2004

Planning Committee addressing some of the issues raised by staff in’lheir report and provides a more detailed explanation of the points outlined above.

The bottom line is that there is great demand for additional retail development in northwest London and limited opportunities for it to be accommodated. This demand can be accommodated through intensifying the FLN site, an already designated commercial area.

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Benefits

At Planning Committee, there was a concern expressed that full build out of our development will be a financial burden to the City. This is not the case. In fact, modelling prepared and submitted to the City during discussion of Fanshawe Park Road improvements shows that City revenues will benefit significantly from the development of the Hyde ParWanshawe Park commercial lands.

We estimate that the full build out of the E N D commercial lands will contribute approximately the following amounts to the City, based on current rates:

Development Charges: Building Permit Fees:

Commercial Taxes: (excludes education component)

$6.2 Million $0.6 Million $6.8 Million (in one-time fees)

$2.5 Million (annually)

Jobs: 2,200 (appx.)

Our company has had an excellent working relationship with the City and through our cooperative approach we financed many of the City’s infrastructure needs in northwest London. We completely funded the City’s Hyde Park Community Plan, financed the construction of sanitary sewers, and water service, and improved 720 metres of Fanshawe Park Road West. Through this teamwork, the City has obtained the infrastructure necessary to service north-west London. The private sector financing of these infrastructure works occurred at no cost to the City. These works have benefited the entire Hyde Park Community and have been the catalyst for growth; evidence of this can be seen in the amount of residential subdivisions currently being developed in the area. With this approach the City has created thousands of hours of construction jobs and substantially increased it’s tax assessment base.

In this same spirit, FLND is prepared to be the lead developer advancing the construction of Fanshawe Park Road West between Wonderland Road and Hyde Park Road to 2005 from its scheduled construction of 2009. Again, this private sector financing will serve other industrial, office, commercial and residential development in the area generating additional development charges, additional assessment growth and jobs, as well as provide for the timely completion of a crucial east-west transportation project long identified in the City’s capital budget.

Thank you for your consideration of this matter. Your support of our request will allow us to continue the unique development of this successful shopping area.

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First London North Develortlments Inc. OPA & ZBA 02-6611 June 9,2004

Yours truly,

First London North Developments Inc. c/o First Pro Shopping Centres

v Scott Dutchak, M.C.I.P., R.P.P. Senior Project Manager, Land Development

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First London North Developments Inc. OPA & ZBA 02-661 I June 9,2004

Draft Council Resolutions for Consideration

Official Plan Amendment Approve of the Commercial Policy Area designation, as recommended by staff, subject to the following modifications to the draft official plan amendment:

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1) Section 4.7.1. .4, Scale and Form, be modified to provide for a total of 93,880m2 (1,010,500sq.ft.) retail space in the area with 49,237m2 (530,000sq.ft.) of retail space on the FLN property in the short term and the ability to expand to 53,882m2 (580,000sq.ft.) in the longer term subject to a zoning by-law amendment.

2) Section 4.7.1.-.3 clarify that the office use permission applies to the FLN property south of Fanshawe Park Road west.

Zoning By-law Amendments

1) Defer the zoning of the woodlot on the F%N property.

2) Approve the staff recommended zoning by-law amendment for the FLN property subject to the gross floor area for all ASA zone variations being a maximum of 49,237 m2 (530,000 sq.ft.).

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SHAPING GREAT COMMUNI'IIES

PLANNERS

URBAN DESIGNERS

LANDSCAPE ARCHITECTS

June 7,2004

City of London 300 Dufferin Avenue London, ON N6A 419

Project No.: 9866.1 0

Attention: Chair and Members of Planning committee

Chair Joni Baechler and Members of Committee:

Re: First London North DevApments Inc. Fanshowe Park Road and Hyde Pork Road OPA and ZBA Application 02461 11

I am writing with respect to 'the abovenoted applications by First London North Developments Inc. (FLND), developers of the commercial centre of the north and south sides of Fanshawe Park Road, east of Hyde Park Road. This application will be heard by Planning Committee at its meeting on June 7*~ 2004.

The application requests modifications to the current Official Plan policies and zoning by-law regulations which provide for 250,000 sq.ft. of Associated Shopping Area (ASA) retail development and 200,000 sq.k of Restricted Service Commercial (RSC] development which provides for only o limited range of retail uses. The applications request permission to remove the restrictions on type of commercial development to provide for a full range of retail development across this site with a total floor area of 530,000 5 q . k in the short term and 580,000 sq.ft. in the longer term.

Planning staff are recommending that the Official Plan policies applying to this area be replaced by a Commercial Policy Area designation. This designation would also apply to property owned by FLND on the north side of Fanshawe Park Road. FLND is supportive of this new policy approach as it recognizes the unique nature of this, development, the relationships between the commercial development north and south of Fanshawe Park Road and provides for a full range of retail and service uses at this commercial node. There are however several areas where we do not agree with the speciFic recommendations of staff or believe it is necessary to clarify matters for CommitCee and Council. These matters are discussed in this letter.

www.gspgroup.ca

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1. Limits on Grass Floor Area f

The FLND application originally requested permission for up to 61 7,000 sq.ft. of retail space on the south side of Fanshawe Park Rood. Through the processing of the application we advised Planning staff that given the various retail tenant interest and the City’s.desire to provide some office space in this project, FLND would require approximately 530,000sq.ft. of retail space in the near term with provision for an additional 50,000 sq.ft. of retail space requested for longer term tenant expansions, taking the total floor area to 580,000 sq.ft. The difference between the staff recommendation of 450,000 sq.ft. and the FLND request is only 80,000 q f t . of retail space. The attached site plan illustrates the accommodation of this space. This additional space represents 0.5% of the approximately 14 million sq.ft. of retail space in the City of London as identified by City Planning Staff. We are of the opinion that this additional floor space will be warranted and is supportable in this marketplace.

The staff report relies on o historical perspective on commercial development at this site and across the City, as well as a broad overview of retail development contained in a report prepared in late 2003.

In 1998, City staff were of the view that an additional 250,000 sqh. of big box retail space and 200,000 sq.ft. of restricted service commercial space could be supported at h i s location given the relationship and future role of the Communiv Shopping Area site to the north. Over the intervening six years there have been a number of significant changes that warrant a request to change those planning approvals: w FLND now owns the major commercial areas of the north and south side of Fanshawe Park

Road allowing for a comprehensive and coordinated development in this area. The retail industry has continued its dynamics nature with new stores entering the marketplace and others creating new and larger formats which in some coses require relocations. Tenant interest in this development has grown significantly. The ASA portion of the FLND site is built out at 250,000 sq.ft. The Soms Club has developed on the north side of Fanshawe Park Road and the balance of this site will be under construction in the near future. Canadian Tire wishes to begin construction of a new 100,000 sq.ft. store on the FtND site this year. FLND has also submitted its next site plan approval application for buildings totaling 95,000 sq.ft. in size, further evidence of tenant interest, and taking the south land to its 450,000 sq.ft. cap. The site can accommodate the additional requested development as shown on the attached plan.

. The vacancy rates in north London remain vbry low and indeed there are no other large approved sites in northwest London to accommodate retail demand. This retail interest i s also borne out by two other retail application in north London, Stanton Brothers and Auburn Developments.

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The December 2003 Issue Paper: Commercial Land Supply and Demond, attempts to create a context in which to evaluate this and other applications. This analysis however must be viewed as a cursory review of London retailing and does not have sufficient depth on which to deny this application. Its findings are not indicative of market conditions in northwest London.

The staff report asserts that there will be negative impacts on other shopping areas in London, There has been no research undertaken by the CifY to warrant or justifjl these statements. Based on our assessment of shopping areas in northwest London, i t is our submission that approval of this application, as requested, will not seriously impact their function and role. Many of these shopping areas are very healthy and serve a different role in the marketplace than the FLND project. Retail is a dynamic industry and it is not uncommon for shopping centre to undergo redevelopment and adjustments in response to changes by retailers or in the community.

The facts do not support the contentions of the staff report. The Masonville orea i s fully occupied with limited opportunities for new development, and only ot a smaller scale. The relocation of Canadian Tire from this area will free up space for new retailers and could be an economic benefit for this mall owner. Cherry Hill Village is a much smaller centre serving a local market with strong tenants and no vacancies. Shewood Forest Mall began its transformation before the FtND project began construction. The centre serves a more local marketplace and it i s becoming more mixed use in nature. The Oakridge Mall is being redeveloped as a large freestanding Loblaws with some smaller independent tenants. It is a good example of how older mid-size centres are transforming themselves in response to market changes.

London has a unique market role and one that cannot easily be quantified or planned using typical community floor space per capita rates. London is a large and growing urban municipality. It also serves a significant regional function in drawing people from a great distance to shop and to the regional services such as the University and the health care facilities. Visitors to the City also support and to an extent create the need for its commercial space.

In summary, the FIND site can support the requested floor space as seen on the attached site plan. A limit of 450,000 sq.ft. will serve to underutilize the property while not addressing the demand for retail space in this market. Increasing the requested floor space born the 450,000 sq.ft. recommended to 530,000 sq.ft. i s a small increment in the context OF north London commercial structure. There is no evidence of a significant negative impact on other commercial areas due to the FLND development.

2. Delete Woodlot from Proposed Rezoning

Planning staff have recommended that the woodlot south of the commerciol development should be rezoned at this time in conjunction with the retail development request. FtND request that any zoning by-law amendmenf for the woodlot be addressed at a later date following the completion of the City's review and testing of the application of woodlot evaluation criteria to various sites, including FLND's woodlot [expected this fall) and in the context of a comprehensive analysis in conjunction with FLND's remaining residentially designated property,

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The woodlot was originally designated Open Space through th-e Hyde Park community plan exercise. This designation was appealed to the OMB by the London Development Institute (LDI) and a hearing was scheduled for January 2001. The LDI had concerns with respect to the City's significant woodlot evaluation criteria. It is our understanding the hearing was adiourned in order to modify the woodlot evaluation criteria. Moving forward with the zoning of the woodlot at this time could lead to an appeal by third porty (LDI) to consolidate this matter with the other woodlot matters and thereby thwarting our ability to proceed with the commercial development. FLND awaits the resolution of this woodlot evaluation criteria matter and will resolve the matter of appropriate designation and zoning at a later date.

3. Transportation Matters Require Clarification

Anticipated background traffic growth together with the full bui ldat OF the FLND site will require construction at Fanshawe Park Road and Wonderland Road and improvements to the Hyde Park/Gainsborough and Wonderland/Fanshawe Park intersections. FLND has had numerous discussions with City staff with respect to the Fanshawe Park improvements. FLND has committed to serving as lead developer to advance the construction of Fanshawe Park Road from 2009, its current budgeted date, to 2005. FLND hopes that other developers in the area will contribute proportionally to this initiative which will benefit all land owners and businesses in the area.

4. Economic Development Benefits to Northwest London

FLND underwrote the costs of preparing the Hyde Park community plan in 1999/2000 and front- ended many of the trunk service extensions necessary to facilitate development in this area.

Commercial development typically follows residential development however in this instant FLND has proceeded with its commercial development in response to retail market demands. This development has created a number of construction and retail iobs and has begun to generate significant property tax revenues and development charge revenues for the City. The continued expansion of local infrastructure such as Fanshawe Park Road will provide improved access for many of the businesses in this part of London.

5. Requested Changes to Staff Recommendations

Recommended Official Plan Amendment

We request that Planning Committee recommend to Council approval of the commercial policy area designation, as recommended by staff, subject to the following modifications to the draft official plan amendment:

1) Section 4.7.1 . -4, Scale and Form, be modified to provide for a total of 93,880m2 ( I ,010,500sq.ft.) retail space in the area with 49,237m2 (530,OOOsq.ft.) of retail space on the

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FLND property in the short term and the ability to expand to 53,882m2 (580,OOOsq.h.) in the longer term subject to a zoning by-law amendment.

2) Section 4.7.1 .-.3 clarify that the office use permission applies to the FLND property south of Fanshawe Park Rmd west.

Recommended Zoning By-law Amendments

We request that the Planning Committee recommend:

1) Approval of separate zoning by-law amendments for the properties at 1350 to 1422 Fanshawe Park Road west and for the FLND commercial area.

2) That the woodlot on the FLND property not be rezoned at this time.

3) Approve the staff recommended zoning by-law amendment for the FLND property subject to the gross floor area for all ASA zone variation being a maximum of 49,237 m2 (530,000 sq.ft.1.

Thank you for your consideration of this matter. We will be available to answer any questions you may have at the Planning Committee meeting.

Yours truly,

GSP Group Inc. <

3: Glenn Scheels, MCIP, RPP

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C.C. Mr. S. Dutchak - First London North Developments Mr. D. Wood -Wood Bull LLP Mr. J. Tate - Tate Economic Research

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SQUTHEAST QUaDRANT OF HYDE PARK ROAD *AND FANSMAWE PARKRUAR WEST

TABLE OF CONTENTS

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2.0

3.0

4.0

4.1

4.2

4.3

5.0

5.1

5.2

INTROD JCTIO

DESCRIPTION OF SITE AND SURROUNDINGS

DESCRIPTION OF THE PROPOSAL

POLICY AND REGULATORY CONTEXT

City of London Official Plan

Community Plans

4.2.1 Hyde Park Community Plan 4.2.2 Fox Hollow Community Plan

City of London Zoning By-law

ANALYSIS

Appropriateness of FLN D Proposal Official Plan Evaluation Criteria

5.1 .I Redesignation to Community Shopping Area

5.1.1.1 General Evaluation Criteria Compliance with Size, Form and Function

5.1 .I .2 Locational Criteria for Shopping Areas 5.1 .I .3 Extending Shopping Areas Across Roads

5.1.2 Redesignation of Western Portion of Property to ASA

5.1 2. I Redesignation from Office

Factors Contributing to Retail Demand

5.2.1 Population and Dwellings 5.2.2 Customer Draw of the FgnshawelHyde Park Retail Node 5.2.3 Retail Land Supply in Northwest London 5.2.4 Examples of Shopping Centre Redevelopment

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TABLE OF CONTENTS

5.3 Proposed Official Plan Designations and Zoning

5.3.1 Proposed Official Plan Designation 5.3.2 Proposed Zoning

6 .O CONCLUSIONS

FIGURES

Figure 1: Figure 2: Figure 3: Figure 4: Figure 5:

Figure 6: Figure 7:

Figure 8: Figure 9:

Location Plan Proposed Site Plan Official Plan Zoning Proposed Hyde Park and Fanshawe Park Road I

Retail Node London Planning Districts Location of Shopping Areas In North West London Proposed Official Plan Qesignations Proposed Zoning

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following page 1 following page 2 following page 6 following page 7

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PLANNING IMPACT ANALYSIS PROPOSED OFFICIAL PLAN AND ZONING BY-LAW AMENDMENTS

1 .o INTRODUCTION AND PURPOSE

This planning impact analysis has been prepared by the GSP Group Inc. and Tate Economic Research Inc. in support of applications to permit a greater range of retail uses and gross floor area on lands owned by First London North Development Inc. (FLND) in the southeast quadrant of Fanshawe Park Road and Hyde Park Road as shown on Figure I.

The property totals some 22.26 ha (55 acres) and has frontage on both Fanshawe Park Road and Hyde Park Road. The eastern part of the property is occupied by a Wal-Mart store and other new format retail stores including Winners, Old Navy and Linens N Things. The portion of the property fronting Hyde Park Road is presently vacant with the exception of an access driveway serving the retail uses on the eastern side of the property.

The majority of the property is designated Associated Shopping Area (ASA) and Restricted Service Commercial (RSC), with a smaller southern portion of the property designated Office Area.

The ASA designation permits a broad mix of commercial uses associated with the Community Shopping Area on the north side of Fanshawe Park Road (in which FLND's parent company has an active interest).

The RSC designation permits a limited range of retail uses and is intended to accommodate service, warehouse and other large commercial operations requiring large sites for parking and storage.

The property is subject to a site specific Official Plan policy 10.1.3 (Ixxiii) which places floor area limitations on commercial development as follows:

Lands designated Associated Shopping Area: 23,225 m2 (250,000 sq. ft.) Lands designated Restricted Service Commercial: 18,580 m2 (200,000 sq.ft.) Lands designated Office: 6,968 m2 (75,000 sq.ft.) of which no more that 4,645 m2 (50,000 sq.ft.) of office space is permitted in any one building.

The portion of the FLND property designated ASA is close to build-out of the 250,000 sq.ft. floor space limitation. FLND has strong interest from many nationally branded retailers seeking to locate in the Hyde ParWFanshawe Park commercial node. Though some of the tenants would be permitted in the RSC designation, most of these retailers are not permitted uses in this designation.

Planning Impact Analysis Proposed Official Plan and Zoning By-law Amendments First London North Developments Inc. December 2003

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Additionally, FLND wishes to accommodate a possible long term expansion to the existing Wal-Mart store which would exceed the current site floor area limitations of site-specific policy I O . 1.3 (Ixxiii).

Amendments to both the Official Plan and Zoning By-taw are required to accommodate the increased range of permitted uses on the western portion of the property, as well as increase the overall floor area permitted on the subject lands.

The requested Official Plan Amendment would: . Redesignate the eastern portion of the property from “Associated Shopping Area” and “Multi-Family, Medium Density Residential” to ‘Community Shopping Area” . Redesignate the western portion of the property from “Restricted Service Commercial” and “Off ice Area”, to “Associated Shopping Area.” Amend site specific policy 10.1.3 (Ixxiii) to limit the maximum commercial gross floor area to 31,700 m2 (341,000 sq.ft.) and 25,000 m2 (270,000 sq.ft.) for the CSA and ASA designated lands respectively and delete the Office floor space provision in its entirety. The policy would also recognize that this CSA designation will serve shopping needs of both northwest London, as well as a secondary market beyond the City.

The proposed implementing Zoning By-law Amendment would rezone the property as follows:

Zone the eastern portion of the property from ASA3/ASAG/ASA8 and H”R5-7 to CSA5 with a site specific provision -reflecting the total gross floor area permitted;

9 Rezone the western portion of the property from h*h-ZO*RSC2(5)/RSC4, h*R5-7 and h*OF3(2) to ASA3lASA61ASA8 . The holding provisions requiring compliance with the City’s urban design guidelines and the confirmation of the provision of servicing would continue to apply to lands fronting Hyde Park Road.

The proposed zoning amendment will also correct a minor mapping inconsistency in the southern boundary of the property identified by City Planning Staff.

The proposed amendments have been evaluated on the basis of the evaluation criteria set out in Section 4.3.6, 4.5 and 4.8 of the Official Plan. On this basis, it is our opinion that the proposed development is appropriate for this property.

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2.0 DESCRIPTION OF SITE AND SURROUNDINGS

The subject property is located at the southeast quadrant of Hyde Park Road and Fanshawe Park Road West, as shown on Figure 1.

The property totals some 22.26 ha (55 acres). The eastern part of the property is occupied by a Wal-Mart. store and other new format retail stores including Winners, Old Navy and Linens N Things.

The western portion of the property fronting Hyde Park Road is presently vacant with the exception of an access driveway serving the retail uses on the eastern side of the property. This driveway intersects Hyde Park Road opposite Seagull Road.

Fronting onto the south side of Fanshawe Park Road between the FLND property and the Hyde Park Road are three smaller properties. The easternmost of these properties is occupied by a furniture store, the middle property is an antique store and the property on the corner of Hyde Park and Fanshawe Park is presently vacant, although there has been recent interest in commercial development on this property. Access to these three properties is shared with the FLND property through a service road arrangement parallel to Fanshawe Park Road.

The property is situated in the northwest quadrant of the City of London. This area of the City is experiencing rapid residential development with construction underway to the south and east 'of the FLND site in the Hyde Park and Sunningdale Communities and proposed residential development planned to the north in the Fox Hollow Community.

To the north, at the northeast quadrant of Fanshawe Park Road and Hyde Park Road is a Community Shopping Area, in which FLND's parent company has an interest, of 330,000 square feet, which includes a Sam's Club warehouse membership club (under construction) and will include other new format retail stores. Lands to the east of the shopping centre are presently vacant and are designated for medium density residential uses.

To the west, on the west sides of Hyde Park Road are older employment uses approved and developed when the area was part of London Township. The lands are designated Restricted Service Commercial and Industrial in the London Official Plan.


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To the south and east are vacant lands which are part of the Hyde Park Community. These lands are designated “Multj-Family, Medium Density Residential” and “Low Density Residential”. Development has commenced on the residential lands north and south of Gainsborough Road. The medium density residential lands abutting the south and east property lines are presently vacant. Immediately south of the subject property along the Hyde Park Road frontage is a woodlot designated “Environmental Review” which is to be protected.


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3 .O DESCRIPTION OF THE PROPOSAL

FLND is proposing to develop a 610,000 square footretail shopping centre. The proposal involves increasing the permitted floor space from 450,000 square feet to 610,000 square feet (an additional 160,000 square feet) and broadening the range of permitted retail uses allowed on the western portion of their property. The proposed site plan is shown on Figure 2.

As noted in Section 2.0 above, the FLND property presently contains large format retail commercial uses including a Wal-Mart, Winners, Old Navy, Linens n’ Things, etc. The western portion of the property is presently vacant.

The development on the east side of the property is presently permitted to a maximum of 250,000 sq. ft. of retail floor space and is currently constructed to this limit. It is anticipated that the ultimate development of this part of the property will be approximately 341,000 sq. ft. of retail space which includes additional smaller stores and restaurants, as well as, a possible 65,000 sq. ft. long term expansion to the Wal-Mart store.

The west side of the property is presently designated RSC which permits only a limited number of retail uses. It is proposed that this part of the property be developed for new format retail uses which will be closely associated and integrated with the existing shopping areas on the east part of the property, as well as the Community Shopping Area on the northeast corner of Fanshawe Park Road and Hyde Park Road. The concept plan shows four large buildings, four smaller ”pads” and a service station. The total floor area proposed for this part of the property is 265,000 square feet whereas a maximum of 200,000 square feet is currently permitted.


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4.0 POLICY AND REGULATORY CONTEXT

4. I City of London Official Plan

The City of London Official Plan designates the subject .property “Associated Shopping Area” (ASA), “Restricted Service Commercial” (RSC), “Off ice Area” and “Multi-Family, Medium Density Residential” as shown on Figure 3.

The property is subject to Specific Area Policy 10.1.3 lxxiii which reads as follows:

“In the new commercial development proposed on this corner (excluding existing lots fronting onto Fanshawe Park Road West) the amount of new commercial floor space is limited to the following; 23,225 m2 (250,000 sq. ft.) of new commercial space in the Associated Shopping Area Commercial designation, 18,580 m2 (200,000, sq.ft.) of new commercial space in the Restricted Service Commercial designation and 6968 m2 (75,000 sq. ft.) of new office space in the Office Area designation, with no more than 4645 m2 (50,000 sq.ft.) of office space in any one building.”

4.2 Community Plans

4.2.1 Hyde Park Community Plan

The Hyde Park Community Plan was prepared in the late 1990’s and was approved by Council on April 17, 2000. The Community Plan shows the subject property as “Associated Shopping Area Commercial”, “Restricted Service Commercial” and “Medium Density Residential” and “Off ice Area”.

The Community Plan policies provide from a total of 16 ha (40 acres) of the FNLD lands designated ASA and RSC. The total retail gross floor area permitted on these lands totals 41,805 m2 (450,000 sq.ft.) of which 23,225 m2 (250,000 sq.ft.) is ASA and 18,580 m2 (200,000 sq.ft.) is RSC.

4.2.2 Fox Hollow Community Plan

Although the subject property is not within the Fox Hollow Planning Area, the Community Shopping Area at the northeast corner of Fanshawe Park Road and Hyde Park Road is within the same commercial node and is closely integrated in terms of vehicle and pedestrian access points with the subject lands.

The Community Plan limits the gross floor area of this commercial area to 30,657 m2 (330,000 sq.ft.). 5


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4.3 City of London Zoning By-law

The FLND property is zoned Associated Shopping Area, Restricted Service Commercial, Office and Residential as shown on Figure 4.

Associated Shoppina Area The east side of the property is zoned Associated Shopping Area Commercial Zone - ASA, specifically with the variations, ASA31ASA61ASA8.

The zoning permits a wide variety of commercial uses including: retail stores, supermarkets, restaurants, personal service establishments, financial institutions, pharmacies, and video rental establishments.

The ASA6 zone limits the gross floor area permitted for restaurants and taverns to 1,200 m2 (12, 917.1 sq.ft.) I

Restricted Service Commercial The west side of the property is zoned Restricted Service Commercial Zone - RSC. This zone provides for a range of moderate intensity commercial uses and trade service uses which may require significant amounts of land for outdoor storage or building space and a location on major streets. The property is zoned with the specific variation, h*h-20*RSC2 (5)/RSC4.

Permitted uses include: automobile $ales and service establishments, automobile supply stores, home and auto supp’ly stores, home improvement and furnishing stores, service and repair establishments, liquor, beer and wine stores, pharmacies, automobile repair garage, bake shops, convenience commercial establishments, convenience stores, financial institutions, personal service establishments, restaurants and video rental establishments.

The RSC2 (5) variation permits a maximum gross floor. area of 18,580 m2 (200,000 sq.ft.).

The Holding provisions apply to ensure the provision of municipal services and require new commercial uses to implement the City’s urban design guidelines.

Remainder of Lands The balance of the property, along the south property line is zoned of office uses and cluster town houses.

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If FIGURE 4

5.0 AN ALYS I s

This planning report addresses the Official Plan policies and criteria used to evaluate this proposal as outlined in Sections 4.3,4.5 and 4.8 of the Official Plan. In addition, this planning analysis identifies factors contributing to the demand for additional retail space in northwest London, comments on the North London commercial structure, and provides a justification as to why the FLND property on the southeast quadrant of Fanshawe Road and Hyde Park Road is the most appropriate site to accommodate additional retail space and a wider range of retail uses.

This planning analysis has been prepared in conjunction with Tate Economic Research Inc, iTrans Consulting and Stantec Consulting. It demonstrates that the proposed development is appropriate; will provide the opportunity to meet demand for commercial users seeking to locate in north London in a designated commercial node; and will be compatible with the existing and proposed land uses neighbouring the property.

Finally, proposed land use designations and zoning by-law provisions to accommodate the proposed development are described.

5.1 Appropriateness of FLND Proposal Official Plan Evaluation Criteria

The 1996 City of London Staff deport entitled "An Evaluation of Planned Commercial Land Supply in the City of London" concluded that there was an over supply of retail land throughout the City. According to City of London staff, since I996 over 140 ha of land has been designated for commercial space in the City. Despite this assertion, the CB Richard Ellis Retail Market Index Brief for Spring/Summer 2002 shows a vacancy rate in the Northwest London retail market of 5.09%. City staff has also noted that there have been a number of recent inquiries and some applications to redesignate land outside of planned commercial nodes for retail development in North London.

An examination of the RSA, Commercial Policy Area, ASA and other CSA designated parcels in northwest London has shown that there is very limited supply of lands and buildings which can accommodate the type of retail development proposed on the subject lands as discussed in Section 5.2 of this report. The FLND, property can accommodate the demand of additional retailers seeking to locate in North London in an existing designated retail node (see Figure 5).


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In 1996 the commercial policies for the London Official Plan were amended to plan for the entrance of new format retailers to the.City. The purpose of these retail policies are:

I. 2.

3.

4.

To discourage new format retailers from locating within industrial areas; Discourage widespread development of a new stock of retail development in greenfields locations - which would be at the expense of existing planned commercial centres; Encourage new format retailers to establish themselves within existing commercial centres where traditional retail spaces have been vacated; Encourage new format retailers to develop adjacent to existing planned corn me rcia I ce n t res.

The Shopping Area policies of the London Official Plan provide a categorization of Shopping Area designations bgsed on size, function and form criteria. Policy 4.3.1 iv) provides that where the increase in gross leasable floor area is considered to change the designated function of a Shopping Area, an Official Plan amendment will be required subject to the provisions of policy 4.3.6.

The FLND proposal does not fit the function and scale provisions of the Associated Shopping Area and Restricted Service Commercial designations. Therefore it is necessary to redesignate these lands to more appropriate designations. It is suggested that the eastern portion of the FLND property be redesignated to Community Shopging Area, and the western portion of the property designated Associated Shopping Area both subject to specific provisions respecting maximum permitted gross floor area. Specific Official Plan and zoning by-law amendment provisions are described in section 5.3 of this report.

5.1 .I Redesignation to Community Shopping Area

As noted above, applications for new or expanded Shopping Areas are to be evaluated on the basis of criteria set out in Section 4.3.6 of the Official Plan.

These Criteria include: General Evaluation Criteria

Compliance with size, function and form Availability of services Planning Impact Analysis in accordance with Section 4.8 of the Official Plan

and, c

Locational Criteria for CSA Locating at the intersection of two arterial roads or an arterial road with a primary collector road;

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A site large enough to accommodate all buildings plus parking and loading facilities and adequate buffering measures; and A site with good access to public transit service.

5.1 .I .I General Evaluation Criteria Compliance with Size, Form and Function

Size Community Shopping Area normally ranges in size from 6,000 to 30,000 square metres (64,585 to 322,928 square feet). The portion of FLND property to be designated CSA will have a total of 31,586 square metres (340,000 square feet), 20,000 square feet in excess of the CSA maximum.

-

Form The existing and proposed commercial stores are in either free-standing or multi- unit configurations permitted by the CSA designation. The proposal would not comply with the Regional Shopping Area criteria requiring the form of an enclosed shopping mall. Additionally, the proposed development continues to provide a nodal form of retail development encouraged by Section 4.3.3 of the Official Plan.

Function The existing Wal-Mart store and the Sam’s Club membership store are permitted under the current Official Plan desipnations. These stores draw, or will draw, customers from the surrounding communities and because of their location on the edge of the City of London, also draw from the surrounding areas beyond the municipal boundary within convenient driving distance. The additional floor space proposed will continue to draw from this trade area, maintaining the current function of this retail node.

The designation and development of a CSA node on the south side of Fanshawe Park Road will not detract from the function of the CSA north of Fanshawe as:

1. 2. 3. 4.

5.

The form of development is similar; The development will function as an integral part of the commercial node; Different retail tenants will be sited on the property; It will serve to strengthen the area as a retail destination and continue to promote opportunities for multi-purpose shopping trips; and, FLND owns andlor has an active interest in both the existing CSA lands and the lands south of Fanshawe Park Road, meaning that the property will be developed and managed in a comprehensive manner, ensuring a balanced tenant base. I


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Ava i I a b i I i ty of Services Stantec Consulting has reviewed the servicing available to this part of the Hyde Park Community and determined that there are adequate services in place to accommodate the proposed development. Sanitary and water services are now at the site. Storm water from the site is currently being directed to a temporary facility which can accommodate flows from the FLND lands or the site can drain to the large permanent stormwater management facility serving the community which is located to the south.

Plannina Impact Analysis A Planning Impact Analysis is used to evaluate applications for Official Plan Amendment and Zoning By-law amendments to determine the appropriateness of a proposed change in land use and to identify ways of reducing impacts on surrounding land uses.

Section 4.8.2 i) (a) through (d) of the Official Plan provides criteria for general development proposals.

(a) Compatibility and Impact Impact on the surrounding land uses is expected to remain relatively unchanged compared to the existing Official Plan and zoning designations. The surrounding lands are for the most part vacant and development has, and will occur in advance of some of the surrounding area. The scale of development is similar to that at the northeast corner of Fanshawe Park and Hyde Patk.

iTrans consulting is updating their traffic impact study prepared in support of the current retail designations, it is anticipated that the recent road network improvements and existing and proposed site access points can accommodate the traffic generated from the FLND proposal.

b) Size and Shape of Parcel The property is of appropriate size and shape to accommodate the contemplated development .

c) Supply of Vacant Lands/Bui/dings which are Designated for Proposed Use There is no vacant land or buildings in the area to accommodate the proposed uses.

Planning impact Analysis Proposed Official Plan and Zoning By-law Amendments First London North Developments Inc. December 2003

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Traffic lmpact Traffic work is being undertaken by FLND’s consultant (iTrans). Recent improvements to Fanshawe Park Road and Hyde Park Road have been completed in the vicinity of the FLND site. It is anticipated that these road network improvements can accommodate the proposed development of the subject property. However, there may be a need to widen Fanshawe Park Road from two to four lanes west of the Wonderland Road some time in the future.

Section 4.8.2.ii) (a) through (h) of the Official Plan provide evaluation criteria for specific development proposals.

(a) Criteria Applicable fo General Proposals See 4.8.2 i) above.

I

Criteria (b) through (h) These criteria deal with building siting, heights, vehicular access points, exterior design, impacts on natural environment and mitigation measures. These matters are to be addressed through site plan approval and through the implementation of the City’s Commercial Urban Design Guidelines. Impacts on the adjacent woodland can be addressed though consideration of an Environmental Impact Study (EIS) at the site plan stage.

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5.1 .I .2 Locational Criteria for Shoipping Areas 1

Locational criteria for Shopping Areas are set out in Section 4.3.6 ii) of the Official Plan. The subject property is alread-y designated for some forms of retail development. The site is located with frontages on both Hyde Park Road and Fanshawe Park Road West, which are both arterial roads. The site is sufficiently large enough to accommodate all buildings, parking, loading facilities and adequate buffering measures. The development will be subject to Site Plan control and will be reviewed to ensure that the siting of buildings, parking and landscaping will be appropriate for the site and its relationship to surrounding uses.

The site is not yet served by public transit, however, service is expected to coincide with the continued development of this property and the surrounding neighbourhoods. Opportunities exist to bring transit service close to the shopping areas on both of the commercial projects.

Based on the above analysis, the proposed Official Plan amendments will comply with the locational criteria for ShoppiQg Areas.


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5.1 .I .3 Extending Shopping. Areas Across Roads I'

The Official Plan also contains criteria for evaluating proposals to extend Shopping Areas across intersections or roads. These proposals will be evaluated on the basis of the following additional criteria: .

a) the ability to integrate the design, function and roads characteristics of the

b) pedestrian accessibility and vehicular access across a road or intersection proposed development with the existing Shopping Area; and,

(4.3.6iii)).

With regard to these criteria, the existing and new retail development will continue to be designed in accordance with the City's urban design guidelines. The existing retail development on the south side of Fanshawe Park Road will continue to be served by the main access onto Fanshawe Park Road (formerly Stanton Drive). The driveways are aligned and signalized permitting easy movement of pedestrians and vehicles between the Shopping Areas on both sides of Fanshawe Park Road.

5.1.2 Redesignation of Western Portion of Property to ASA

As noted above, it is proposed that the western portion of the property will be redesignated to Associated Shopping Area. Stand alone centres and retail uses in the ASA designations are restricfed in size to 6,000 square metres (64,585 square feet). However, larger sized stores and shopping centres may be permitted through a zoning by-law amendment evaluated on the basis of criteria set out in Section 4.5.4 ii) of the Official Plan. These criteria are as follows:

a) The amendment will not diminish the dominance of an RSA or CSA to which the ASA is related;

b) Will not result in adverse traffic impacts; c) The scale and massing will be in keeping with and sensitive to

surrounding land uses; d) Pedestrian and automobile circulation must be coordinated with

adjacent sites; e) Integrated form of development to encourage an appropriate street-

building relationship, high quality design, etc.; f) Proposals for rezoning will include a site plan application, and will be

subject to a development agreement prior to the third reading of the zoning by-law; Development consistent with applicable urban design guidelines; and, Planning Impact Analysis Used to evaluate applications.

g) h)

Planning Impact Analysis Proposed Official Plan and Zoning By-law Amendments First London North Developments Inc. December 2003 ,

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The following addresses the criteria listed above: r

Dominance of fhe CSA The floor area proposed for this new ASA designation (the western part of the subject property), is 25,000 square metres (270,000 sq.ft.). This floor area is less than the 341,000 square feet floor area of the CSA to which it relates. The size of the ASA is comparable to the ASA space associated with other locations in the City of London, including Argyle Mall and Masonville Mall (approximately 420,000 sq .ft. ).

Traffic Impacts As previously noted, iTrans has reviewed the traffic impacts of the existing permissions for the FLND site and is updating that study. It is anticipated that the road network improvements in the area can accommodate the proposed development for this property.

Scale and Massing The scale of the proposed development will be similar to the other development to the east, west and north. Lands to the south are presently vacant.

Coordinated Pedestrian and A utomobile Circulation The development to the east is to be integrated with the development on the proposed ASA lands. The: existing driveway serving the WaI-Mart and the developing commercial stdres on the Fanshawe Park Road frontage of the subject property is also aligned with Seagull Road on the west side of Hyde Park Road. The internal road providing access to Hyde Park Road is aligned with the access of the CSA on the south side of Fanshawe Park Road, providing pedestrian and vehicle interconnectivity within the commercial node. Additionally, site plan approval will ensure the continued coordination of pedestrian and vehicle circulation.

Appropriate Design The site plan for this area shows smaller buildings along the Hyde Park Road frontage with larger buildings behind. The implementation of the Commercial Urban Design Guidelines through the site plan application process will continue to ensure that appropriate street-building relationships and high quality of design is maintained with the development of the property

Planning Impact Analysis Proposed Official Plan and Zoning By-law Amendments First London North Developments Inc. December 2003 4

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re Plan and Urban Design Guidelines A formal site plan application for the next phases has not been submitted at this time. It is contemplated that the holding provision, similar to the holding provisions which apply to the site today, requiring implementation of the City’s Commercial Urban Design Guidelines and necessary traffic improvements, would achieve the intent of the Official Plan policy.

h) Planning Impact Analysis An evaluation of the Planning Impact Analysis Criteria is similar to that analysis set out in Section 5.1 .I .I of this report, above.

Policy 4.5.6 of the Official Plan provides additional criteria which will be used to evaluate applications to expand or add Associated Shopping Area Commercial designations.

These include: I

a) compliance with appropriate policies on form, function, permitted use, location and scale of development;

b) the availability of municipal services; c) the availability of alternate undeveloped lands within the general vicinity

that may be appropriate for the proposed use; d) the potential for diminishing the dominance of RSA and CSA to which the

ASA designation is related; e) the proposed addition or expansion should take a nodal configuration

around the CSA or RSA; and,’ f) Planning Impact Analysis used to evaluate applications.

These criteria are similar to and have been addressed in the proceeding an a I ys is.

5.1 2.1 Redesignation from Office

A portion of the FLND lands along Hyde Park Road is designated for Office uses. Since the time of this designation FLND has not received any inquires for office users seeking to locate on this property.

City wide, London has an office vacancy rate of 12.2% and the suburban market a vacancy rate of 9.7% (CB Richard Ellis - National Office Market Brief, Q3 2003). It is also noted that the lands on the west side of Hyde Park Road between Gainsborough Road and Fanshawe Park Road are subject to Specific Area Policy 10.1.3 Ixxii) which permits office uses, and will continue to provide a supply of office land in this area Should demand warrant. Given the strong demand for retail space in north London, it is desirable to redesignate this portion of the FLND site to cluster retail uses at this location rather than dispersing it outside of designated retail nodes. Planning Impact Analysis Proposed Official Plan and Zoning By-law Amendments First London North Developments Inc. December 2003

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5.2 Factors Contributing to Retail Demand ,=

5.2.1 Population and Dwellings

The northwest quadrant of the City of London is experiencing a rapid increase in population as a result of recent Community Plan approvals. The Communities of Hyde Park, Fox Hollow and Sunningdale are in the immediate vicinity of the FLND property as shown on Figure 6 - London Planning Districts. According to the Community Plans prepared for each of these Districts, the planned populations are:

Hyde Park Fox Hollow Sunninqdale

1 1,600 population (4,641 residential units) 13,859 population (5,372 residential units) 6,900 population (2,535 residential units)

Totals 32,359 population (1 2,548 residential units)

Despite retail development proceeding in advance of the residential population in the area, demand by retailers seeking to locate within the Commercial Node and Hyde Park Road and Fanshawe Park Road is very strong in response to existing opportunities and future population.

The planned population of 32,300 or the three new communities in northwest

centres of NNV London can meet some of this demand but ultimately a sizeable commercial node such as that emerging at Fanshawe Park Road and Hyde Park Road will be necessary to meet this demand and provide shopping convenience. In addition to the planned population growth of the surrounding communities, since 1999 enrollment at the University of Western Ontario has increased by approximately 10,000 students. (source: University of Western Ontario Website). This student population also provides some support for the FLND development.

London will generate a significant d emand for commercial space. The existing

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5.2.2 Customer Draw of the FanshaweIHyde Park Retail Node

North-West London Other London Total London

The FLND retail centre attracts customers from a wide area, beyond North-West London. This customer draw was verified by postal code data provided by Wal- Mart, reflecting credit card transactions in 2003. This information is considered a reasonable proxy for customer tracking information.

43% 26% 69%

Outside London Grand Total

31 Yo 100%

As can be seen in the table, the majority of customers come from North-West London, as defined by postal codes to be the area within the City limits, north of the Thames River and west of the Thames River / Richmond Street. The Wal- Mart store at the centre also draws about 1/3 of its customers from beyond London. This customer base reflects the attraction of nationally branded retailers at the centre throughout the City and beyond. For example, the only Ontario Old Navy store west of Cambridge is located at the FLND site. Interested future tenants, are for the most part, nationally branded retailers like those currently committed tenants presented previdusly in this report, rather than locally based retailers that are found in other neighbourhood and community shopping areas in northwest London. There are expected to be more “unique to London” tenants added to the node.

In summary, the current draw of the Wal-Mart portion of the retail node indicates a wide customer draw. As more tenants locate in this area, especially unique ones such as Sam’s Club and Old Navy, this customer draw can be expected to increase. This market area extends beyond the City of London, into the rural hinterland that surrounds the City. This large market area is understandable given the location of the centre at the northwest corner of the City, London’s role as a regional centre serving a large part of south central Ontario and the strong nationally branded tenants at this shopping area. The overall effect of this wide customer draw is that it minimizes the impacts on the local shopping centres in London, particularly north-west London, as the market support and influences of the existing and proposed retail uses at the FLND site are dispersed over a large geographic area.


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5.2.3 Retail Land Supply in Northwest London

The 1996 City of London Staff report regarding supply of retail land concluded that there was an “over designation” of retail land throughout the City. Since that time, according to City of London staff, over I .4 million square feet of land has been designated in the City. Additionally, City staff have noted that there have been a number of recent inquiries for applications to redesignate land outside of planned retail nodes for retail projects in North London.

This section of the analysis describes shopping areas within northwest London and its vacant available land and floor space and provides commentary on anticipated impact of the FLND proposal. Locations of these shopping areas are shown on Figure 7.

Masonville Mall and Surroundirw Node Masonville Mall is a two storey enclosed shopping mall designated Regional Shopping Area (RSA). The Mall has approximately 178 stores with 4 major anchors, including Famous Players - Silver City, Sears, The The mall has a gross floor area of approximately 62,260 m2 Surrounding the RSA is a large area of ASA designated lands. areas include:

w Fanshawe Park Place - an 801500 sq.ft. shopping centre stores including Winners, Reitmajns and an LCBO store;

Bay and Zellers. (670,000 sq.ft.). These shopping

consisting of 22

. Hyland’s Centre - a 151,000 s4.ft. shopping centre consisting of 17 stores including Future Shop, Mark’s Work Warehouse, Michaels and Sportcheck; Riocan Centre North - a 105,000 sq,ft. shopping centre consisting of 12 stores including Chapters, Petsmart and Pier I Imports; and,

w Loblaws large format supermarket of approximately 85,000 sq.ft.. (Source: Monday Report on Retailers - 2004 Canadian Directory of Shopping Cent res)

These shopping areas all consist of large format retailers, clustered in this node. The total floor area of the Masonville Mall and its Associated Shopping Areas totals approximately 1,090,000 sq.ft. in gross floor areas including approximately 230 stores. Based on our field inspections, Masonville Mall now has only one vacancy, a smaller ancillary store which is being renovated into another use. In the ASAs around the mall there are limited, if any, opportunities for additional retail commercial development. Our discussions with FLND have indicated that there continues to be tremendous demand for new format retailers in North London, who cannot be accommodated elsewhere.

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1 2 3 4 5 d

Other Northwest London h,alls There are four enclosed mid-sized shopping centres in north-west London, as defined by the area north of the Thames River and west of the Thames River / Richmond Street. These centres and their dates of construction are listed below:

London Mall SE Oxford St. / Wonderland Rd. 1968 Oakridge Mall NW Oxford St. / Hyde Park Rd. 1964 Shewood Forest Mall SW Gainsborough Rd./ Wonderland 1970s

Rd

This section of the report discusses our field inspections of these centres in October and November 2003, and provides commentary on their role in the retail structure, from the perspective of market demand..

Sherwood Forest Mall This 222,000 square foot centre is owned by RioCan Real Estate Investment Trust, who also own Oakridge Mall. It is anchored by an A&P supermarket and now has a Goodlife fitness centre occupyiog former anchor tenant space. The *all is partially enclosed, and the tenants on the inner portion of the mall include Sherwood Forest Library and the not-for- profit Goodwill store, which is expanding. There are three vacancies in the interior mall. Part of the centre has been renovated into a strip-centre like appearance (pictured), which fronts onto the parking lot facing Wonderland Road. These stores tend to be convenience oriented (drug store, fast food, video rental) and there was one vacancy in this section of the mall at the time of our field inspections. This centre appears to serve a localized market area and is not directly competitive with the FLND project.

Cherry Hill Village This 145,000 square foot centre is anchored by an A&P supermarket and a Shoppers Drug Mart. There is a range of community oriented uses in the centre, including Westown Postal Outlet and Cherry Hill Branch of the Public Library system. The Scotiabank is currently undergoing a renovation and this centre includes strong tenants such as the LCBO, which typically generate significant traffic.

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indicative of a strong, healthy shopping centre. As demonstrated in the accompanying photograph, Cherry Hill Village has the benefit of a significant population base in high density developments located adjacent to the centre.

London Mall London Mall is approximately I 18,000 square feet and is anchored by a Sears Clearance Centre and a Price Chopper discount supermarket. Kelsey's is the only other national tenant. London Mall is a discount oriented centre that may be somewhat hindered by visibility issues. It is located below grade from each of the arterial roads that provide direct access to the centre. The mall is partially enclosed and there are four vacancies within the enclosed portion of the mall, but none in the sections of the mall that face outward to the parking facility. This $hopping centre is dated in appearance and does not reflect modern trends in retailing.

market demand in this area for retail space, however, London Mall, due to site visibility, design, management or other issues, has not been able to capitalize on the opportunities that exist.


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Oakridge Mall

Mart department store (a former Woolco store) was located at the rear of the mall, and was not visible from Oxford Street. In the spring of 2004, this centre will be going through a process known in the shopping centre industry as “de- malling”. The major anchor tenant in the reformatted centre will be an expanded, freestanding Loblaws supermarket of about 150,000 square feet. Other opportunities will exist for new tenants and for relocated and reformatted tenants who are now at the Mall. This sh,opping centre’s focus will continue to evolve as the new format Loblaws store is patronized by consumers, and we fully expect this de-malled centre to be successful.

Northeast Quadrant of Wonderland Road and Oxford Street West There is a site designated Commercial Policy Area, located at the north east corner of Wonderland Road and Oxford Street West. Approximately, 300 metres north of this site, on the east side of Wonderland Road, a Costco warehouse membership club is under construction. The Building Box home improvement centre is located approximately 400‘metres north of the Costco, on the west side of Wonderland Road. Each of theLe new format warehouse style stores total over 100,000 square feet.

These warehouses will generate customer traffic in the vicinity of the vacant Commercial Policy Area designated site. It is likely that the customer traffic will result in increased development opportunity for the vacant site, as there may be potential synergies with the new warehouse retailers. The Building Box and Costco can be viewed as anchors for this Commercial Policy Area, and as a result, we expect additional retail development in this area.

The retail sites north of Oxford Street West on Wonderland Road have developed as large format single user locations. It is reasonable to expect that this pattern of development would continue to occur on the lands located at the northwest corner of Wonderland Road and Oxford Street West. An example of a prospective tenant is a major furniture and appliance store, which would also complement the existing Sears Clearance Outlet in London Mall.

We do not expect there to be signifipant overlap between the FLND site and this vacant site, as the retailers that have located at the FLND site, tend to want to consolidate in one area. This locational pattern allows them to capitalize on cross shopping opportunities and the synergies between one another. Planning Impact Analysis Proposed Official Plan and Zoning By-law Amendments First London North Developments Inc. December 2003

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Other Vacant CSA Designations There is one vacant CSA designation in north Londo-n. These lands are located at the far east end of Fanshawe Park Road East and Highbury Avenue North. This commercial designation will serve the developing communities in the northeast quadrant of the City and is not considered competitive with the FLND development.

Existing North West London Shopping Centre Conclusion Despite the conclusions of the I996 staff report, from our review of commercial areas in North London there are limited locations that can accommodate retailers wishing to locate in this part of the City. Masonville Mall and its Associated Shopping Areas have virtually no vacancies and there are no vacant lands to accommodate additional retail development.

The four enclosed shopping centres in north west London are somewhat dated and do not reflect modern trends in Canadian retailing towards open concept centres with direct customer access to stores. Notwithstanding their age and design, these centres remain viable given their locations, size and composition of tenants. Furthermore, the viability of Oakridge Mall will be further enhanced by its renovation. The existing centres primarily serve localized markets and are not directly competitive with the type, size, tenant mix or product offering proposed at the FLND site. There is market opportunity for the types of community-oriented centres in north west London as demonstrated by:

The 0% vacancy rate in Cherh Hill Village; The 0% vacancy rate at the Herbie’s Plaza adjacent to London Mall; The success of the refurbishedhe-orjented strip centre component of the Sherwood Forest Mall; and, The planned redevelopment of Oakridge Mall to accommodate a larger anchor and a more economical strip centre format.

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It is our opinion that the increase in retail space requested by FLND will not usurp the market opportunity for these centres to continue to function in their more local serving roles. The planned redevelopment of the Oakridge Mall and the partial refurbishment of the Sherwood Forest Mall demonstrates how older centres can transform themselves, as necessary, to address neighbourhood and retail industry changes. The vacant Commercial Policy Area at the northeast corner of Oxford and Wonderland is expected to attract retail interest once the Costco to the north is operating. Significant overlap between the FLND site and this vacant parcel is not anticipated.


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5.2.4 Examples of Shopping Centre Redevelopment

Based on our review of existing shopping centres in northwest London described in the previous section, we do not foresee an immediate need for changes to the structure or format of these centres. However, if in the longer term, there is a need to change or redevelop a shopping mall, it is possible to transform most older shopping centres into productive commercial real estate. During our discussions with the City of London Planning Department, we were requested to prepare a discussion of a number of examples of the adaptive re-use of former retail space.

There is an increasing trend towards free-standing stores and the de-malling of centres. Many customers tend to prefer open concept centres for certain types of shopping trips. This trend in consumer behaviour has resulted in many anchor stores relocating out of enclosed shopping centres. In addition, there are a number of business oriented factors that have led to vacated anchor stores. One of these factors is the increasing consolidation in the retail industry, particularly in the supermarket and department store categories, where, specifically in Ontario, there are fewer chains and banners operating in the industry.

The departure of an anchor tenant from a shopping centre does not necessarily lead to the demise of the mall and the loss of the centre’s ability to fulfil its planned function. There has been an increasing number and a wide range of adaptive reuses across Ontario, including London, as the shopping centre industry evolves and matures. This section of the report address examples of adaptive re-use of retail space from the London market, as well as other examples from elsewhere in Ontario.

Galleria London, London - This downtown regional scale shopping centre was anchored by The Bay and Eaton’s traditional department stores. Eaton’s closed, partially due to internal issues relating to the company’s financial performance. The former Eaton’s space has been successfully renovated for office tenants.

The Bay department store in Galleria London closed and has been renovated into the City of London public l i b r a j (see adjacent photo). Neither the library or the office uses are retail oriented, however, they are traffic generators and as a result, the ancillary space within the shopping centre continues to operate.

Planning Impact Analysis Proposed Official Plan and Zoning By-law Amendments First London North Developments Inc. December 2003 I

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Masonville Mall - This regional shopping centre was anchored by Sears, Eatons, Zellers and Loblaws. The Loblaws store relocated and expanded to a free- standing location, directly north of the mall, on Fanshawe Park Road. The former Loblaws space has been redeveloped into a Famous Players Silvercity megaplex theatre. This relocation of Loblaws has allowed the market place to be served a large, new format supermarket while adding a new entertainment component to Masonville Mall. When the Eatons chain folded, it space at Masonville was tenanted by The Bay in relatively short order. Masonville Mall now has only one vacancy, a smaller ancillary store, which is being renovated into another use.

wds pur~riaseu uy rirsil rru Shopping Centres, who redeveloped it. A new Wal-Mart store was constructed on vacant lands immediately south of the former store, which has now been re- enanted for an expanded No Frills store. The former No Frills space has been demolished and converted to open concept, big-box retail uses. This redevelopment indicates a proactive response to changing customer and tenant requirements. The former enclosed mall is now fully occupied as a new format centre.

As discussed above in the London context, the departure of an anchor tenant from a shopping centre does not necessarily result in the demise of the centre, nor the elimination of the centre from the planned retail hierarchy. Other examples of shopping centre redevelopments after an anchor closes or relocates are presented below.


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Kingston Centre - The Sears department store relocated out of the Kingston Centre, an older enclosed shopping centre, to Cataraqui Town Centre the major regional shopping centre in Kingston. Loblaws converted the former Sears space to an 80,000 square foot Loblaws supermarket. Loblaws closed its former No Frills discount store at Kingston Centre. Loblaws is now the owner of the Kingston Centre and has plans to demolish the existing enclosed mall portions and develop approximately 90,000 square feet of new, free-standing, retail and service space. In addition, an expansion of the supermarket is also planned. This project is a concept similar to the RioCan Oakridge Mall renovation.

Former Woolco, Collinawood - Woolco operated a store in downtown Collingwood. It was one of the stores not purchased by Wal-Mart when they bought the chain in 1994. The store operated as a d iscou n t general merchandise outlet for years, before u nd erg oi ng renovations . photograph, the building has been second storey office space.

Grev Countv Mall, Owen Sound - This enclosed shopping centre was occupied by a Woolco discount department store and a Lo bla ws s u permarket. The Woolco store was converted to a Wal-Mart, and Wal-Mart has since relocated to a free-standing store elsewhere in Owen Sound. This

As can be seen in the accompanying converted into ground floor retail space and

centre has been "de-malled" and is now an open concept retail centre. The space formerly occupied by Loblaws has been renovated into a Giant Tiger general merchandise store, and thy former Woolco space has been renovated into primarily a No Frills supermarket and a Galaxy movie theatre. The shopping centre has been renamed to "Galaxy Centre" by its owners, RioCan.

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In addition, there are many other examples of anchor tenants closing or relocating out of a shopping centre, and being replaced by other tenants. These examples include :

Oakville - Trafalgar Village - Wal-Mart relocated out of this enclosed shopping centre and the centre was de-mailed, with the former Wal-Mart space now occupied by a Home Depot store. New tenants have been brought in as open concept stores to replace the former enclosed mall tenants.

Toronto - Bathurst Centre - A 2 storey former Horizons department store was converted to The Bay. The Bay closed and the former department store space is occupied by a Dominion supermarket on the ground floor and a Winners clothing store on the upper level.

I

Markham - Thornhill Square - This former enclosed centre was anchored by a Dominion supermarket and a Kmart department store. Kmart ceased operations in Canada, and this store was not one purchased by Zellers, who took over the majority of the Kmart stores. A portion of the mall that includes the former Kmart space has been demolished and is being developed for townhouse residential uses. The remainder of the retail centre is being de-malled and the Dominion supermarket will remain, as will a number of other convenience oriented retailers.

These examples indicate that Londbn has a history of adaptive re-use and re- enanting of spaces previously occupied by department stores and other uses. Furthermore, we conclude that there are a number of options for the re-use of former mall space, including retail oriented uses such as entertainment, food and DSTM, as well as other non-retail uses including office, residential and public services.

It remains our opinion that the other shopping malls of northwest London are not threatened by the proposed expansion of the FLND new format centre. Should circumstances change, shipping centres can redevelop to adapt to new conditions. This type of redevelopment is common place as the retail industry and many communities mature.

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5.3 Proposed Official Plan Designations and Zoning

5.3.1 Proposed Official Plan Designation

Based on this Planning Analysis, it is recommended that the most appropriated designations for the FLND property is as follows:

The eastern portion of the property designated Community Shopping Area and western portion of the property designated to Associated Shopping Area as shown on Figure 8 - Proposed Official Plan Designations.

In addition to the land use schedule change, site specific policy 10.1.3 (Ixxiii) should be amended to limit the maximum commercial gross floor area to 31,700 m2 (341,000 sq.ft.) and 25,000 m2 (270,000 sq.ft.) for the CSA and ASA designated lands, respectively, w,ith the Office floor space provision deleted in its entirety. It is also recommended that the policy recognize that' this CSA designation will serve shopping needs of both northwest London as well as a secondary market beyond the municipal boundary.

5.3.2 Proposed Zoning

The proposed implementing Zoning By-law Amendment would rezone the property as follows: I . Zone the eastern portion of the I roperty CSA5 with a site specific provision

Zone the western portion of the property to ASAS/ASAG/ASA8; and, The holding provisions requiring compliance with the City's urban design guidelines and the confirmation of the provision of servicing would continue to apply to lands fronting Hyde Park Road.

reflecting the total gross floor are ap permitted;

In addition to reflecting the FLND proposal, the proposed amendment would correct a minor mapping inconsistency of the Sites northern zone boundary that was identified by City staff. The proposed zoning of the site is shown on Figure 9.

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6.0 CONCLUSIONS

On the basis of the analysis outlined in this repoi, it is our opinion that the proposed amendments to the Official Plan and Zoning By-law are appropriate and desirable for the FLND property, as the development would:

Provide an appropriate location within an existing retail node to address the retail demand in Northwest London; Not have a long term detrimental effect on other Shopping Areas in North London; Have adequate municipal services in place to accommodate the deve topmen t; Handle the volume of traffic anticipated at build out of the property; Continue to serve the retail needs of the residents and business in the Northwest part of London as well as the larger market areas to the north and west of London; I

Develop in accordance with the Urban Design Guidelines prepared for this area; and, Be compatible for the existing and planned development surrounding the property .


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