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ADMINISTRATIVE REPORT L:\Board Staff Reports\2014\2014-05-08\BoardReports\Approved\F2014_001_ZONE_PuntaNorte_1st_2nd_20140312docx.docx File No: F2014.001-ZONE Page 1 of 9 TO: Board of Directors FROM: B. Newell, Chief Administrative Officer DATE: May 8, 2014 TYPE: OCP and Zoning Bylaw Amendment Application Electoral Area ‘FAdministrative Recommendation: THAT Bylaw No. 2460.02, 2014, Electoral Area ‘F’ Official Community Plan Amendment Bylaw and Bylaw No. 2461.04, 2014, Electoral Area ‘F’ Zoning Amendment Bylaw, be read a first and second time and proceed to a public hearing; AND THAT the Board considers the process, as outlined in the report from the Chief Administrative Officer dated May 8, 2014, to be appropriate consultation for the purpose of Section 879 of the Local Government Act; AND THAT, in accordance with Section 882 of the Local Government Act, the Board has considered Amendment Bylaw No. 2460.02, 2014, in conjunction with its Financial and applicable Waste Management Plans; AND THAT the holding of the public hearing be delegated to Director Brydon or delegate; AND THAT staff schedule the date, time, and place of the public hearing in consultation with Director Brydon; AND THAT staff give notice of the public hearing in accordance with the requirements of the Local Government Act; AND THAT prior to the scheduling of a public hearing, a fire risk assessment including developing of an implementation strategy, be prepared by a qualified professional be submitted to the Regional District; AND THAT prior to the scheduling of a public hearing, a water quality and quantity report prepared by a qualified professional confirming that the current water system can adequately provide water for the commercial operations be submitted to the Regional District; AND THAT prior to the scheduling of a public hearing a complete Building Permit application be submitted to the Regional District. Purpose: To rezone a portion of the property to legalize current use and to facilitate a proposed subdivision. Owner: Punta Norte Guest House Ltd Folio: F-06709.050 Legal: Lot 14, DL 2710, SDYD, Plan KAP48437 Civic: 365 Callan Road OCP: Small Holdings (SH) Proposed OCP: Commercial (C) (in part) Zoning: Small Holdings Two (SH2) Proposed Zoning: Tourist Commercial Five (CT5) (in part) Proposed Development: The purpose of the proposed rezoning is twofold: firstly, the applicant proposes to rezone a portion of the subject property to reflect the current commercial use of the La Punta Norte Guest House; and secondly, to facilitate a one lot subdivision. Specifically, it is being proposed to rezone the northern portion of the property containing the La Punta Norte Guest House development to a new Tourist Commercial Five (CT5) zone. The remainder of the RDOS Regular Board Meeting Agenda Item 4.1.1

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ADMINISTRATIVE REPORT

L:\Board Staff Reports\2014\2014-05-08\BoardReports\Approved\F2014_001_ZONE_PuntaNorte_1st_2nd_20140312docx.docx File No: F2014.001-ZONE Page 1 of 9

TO: Board of Directors FROM: B. Newell, Chief Administrative Officer

DATE: May 8, 2014 TYPE: OCP and Zoning Bylaw Amendment Application — Electoral Area ‘F’

Administrative Recommendation:

THAT Bylaw No. 2460.02, 2014, Electoral Area ‘F’ Official Community Plan Amendment Bylaw and Bylaw No. 2461.04, 2014, Electoral Area ‘F’ Zoning Amendment Bylaw, be read a first and second time and proceed to a public hearing;

AND THAT the Board considers the process, as outlined in the report from the Chief Administrative Officer dated May 8, 2014, to be appropriate consultation for the purpose of Section 879 of the Local Government Act;

AND THAT, in accordance with Section 882 of the Local Government Act, the Board has considered Amendment Bylaw No. 2460.02, 2014, in conjunction with its Financial and applicable Waste Management Plans;

AND THAT the holding of the public hearing be delegated to Director Brydon or delegate;

AND THAT staff schedule the date, time, and place of the public hearing in consultation with Director Brydon;

AND THAT staff give notice of the public hearing in accordance with the requirements of the Local Government Act;

AND THAT prior to the scheduling of a public hearing, a fire risk assessment including developing of an implementation strategy, be prepared by a qualified professional be submitted to the Regional District;

AND THAT prior to the scheduling of a public hearing, a water quality and quantity report prepared by a qualified professional confirming that the current water system can adequately provide water for the commercial operations be submitted to the Regional District;

AND THAT prior to the scheduling of a public hearing a complete Building Permit application be submitted to the Regional District.

Purpose: To rezone a portion of the property to legalize current use and to facilitate a proposed subdivision.

Owner: Punta Norte Guest House Ltd Folio: F-06709.050

Legal: Lot 14, DL 2710, SDYD, Plan KAP48437 Civic: 365 Callan Road

OCP: Small Holdings (SH) Proposed OCP: Commercial (C) (in part)

Zoning: Small Holdings Two (SH2) Proposed Zoning: Tourist Commercial Five (CT5) (in part)

Proposed Development:

The purpose of the proposed rezoning is twofold: firstly, the applicant proposes to rezone a portion of the subject property to reflect the current commercial use of the La Punta Norte Guest House; and secondly, to facilitate a one lot subdivision.

Specifically, it is being proposed to rezone the northern portion of the property containing the La Punta Norte Guest House development to a new Tourist Commercial Five (CT5) zone. The remainder of the

RDOS Regular Board Meeting Agenda Item 4.1.1

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property will remain as Small Holdings Two (SH2). The portion of the subject property proposed to be CT5 is approximately 8.6 ha in size and the remainder is approximately 4.4 ha in size, although there has not yet been a survey completed to determine exact areas.

In support of the application the owner has stated: “we employ and support many of the existing businesses within the Tourism Industry (Summerland Wineries, Restaurants and various Shuttle Companies)” and further “we have only two neighbors and neither have expressed any concern with our current operation”. Site Context:

The subject property is approximately 12.96 ha in size and is located on Okanagan Lake to the east of Hwy 97. The subject property is approximately 180 metres north of the District of Summerland’s northern boundary.

Adjacent properties are characterized as large Resource Area (RA) zoned parcels. There is some agricultural development on the property to the south and development on the property immediately to the west of the subject property. The majority of the adjacent areas remain undeveloped.

There is a rural low density residential subdivision approximately 600 m to the north, located on Okanagan Lake.

The subject property is not connected to community water or sewer, nor is it within a fire district protection area. The fire rating is noted as ‘high’.

There are several Watercourse Development Permit areas identified on the subject property; however, none near the existing development.

The applicant (agent) has stated that the Guest House is serviced by a well, registered by the Province, and that the sewage system is adequately designed. The septic system that was approved at the time of the Building Permit is for 10 bedrooms plus one extra suite, above the garage. Background:

Under the Electoral Area ‘F’ Zoning Bylaw No. 2461, 2008, the property is zoned Small Holdings Two (SH2), which allows for one single family dwelling and bed and breakfast as permitted uses. The maximum residential density permitted on a SH2 zoned parcel is one (1) principal dwelling unit and secondary suite, subject to Section 7.12. A secondary suite must be located in the principal dwelling unit.

In 2004 building permits were issued for a single family home and detached garage on the subject property. In 2004, there was also a Development Variance Permit (DVP) issued to allow “6 sleeping units having a maximum area of 251 m2 (2701 sq.ft.)” that increased, from four bedrooms, the number of allowable Bed & Breakfast rooms under the Zoning Bylaw.

In 2008, a Building Permit was issued for a ‘suite’ located above the detached garage. The suite was not permitted to contain a kitchen. However, it appears through the website that this suite is self-contained, including a kitchen. At a meeting with the owner in September 2013, it was also revealed that an office room had also been converted to be used as tourist accommodation.

In 2010, the Ministry of Transportation and Infrastructure (MOTI), through the Hwy 97 realignment, approved roadway consolidation and realignment for access into the La Punta Norte site.

In 2013, information was received by the Regional District that other commercial uses such as weddings, and other social ‘assemblies’ were taking place on the property, which are not permitted under the SH2 zone. The owner was informed that these uses were not permitted which, in part, precipitated this application.

The applicant has also applied to Ministry of Transportation (MOTI) in 2012 to subdivide the subject property into two lots, with the idea to potentially sell the parcel where the Guest House is located. MOTI issued a ‘Preliminary Layout Not Approved’ in August of 2013. The reasons for the non-

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approval included a number of unresolved issues including appropriate zoning respecting current practices, confirmation from Interior Health Authority, a geotechnical study, and an easement covenant, amongst others. The applicant has one year to complete the work necessary for the subdivision application.

A building permit will be required that assesses the commercial requirements needed for compliance with the Building Code.

To accommodate the proposed use a new Commercial Tourist Zone has been created (CT5) which permits tourist accommodation of up to 10 units. The proposed 10 tourist accommodation units include the current dwelling unit as tourist accommodation if desired by the owner. As well, an addition to the general parking regulations will be added to include one parking stall for each tourist accommodations unit as well as 1 per 4 seats or 15 m2 of customer service area in any eating and drinking establishments. Referrals:

Approval from MoTI is required as the proposal is situated within 800 metres of a controlled area (i.e. intersection of Highway 97 and Callan Rd). MOTI have provided information that they are prepared to approve.

Approval from the Ministry of Community, Sport and Cultural Development (MCSCD) is not required as the proposal involves a land area of less than 20 ha and does not involve the creation of more than 30 dwelling units.

Pursuant to Section 882 of the Local Government Act, after first reading the regional Board must consider the proposed OCP amendment in conjunction with Regional District's current financial and waste management plans. The proposed OCP amendment has been reviewed by Public Works and Finance Department, and it has been determined that the proposed bylaw is consistent with the Regional District’s current waste management plan and financial plan. Public Process:

At its meeting of March 6, 2014, the Electoral Area ‘F’ Advisory Planning Commission (APC) resolved to recommend to the RDOS Board that the subject development application be approved with the following conditions: “that this proposal meets requirements for waste water treatment; for safety such as fire protection, wedding receptions and highway access from the receptions; that this proposal is accepted at the public hearing; that the Summerland Municipal Council is made aware of this proposal”.

Administration recommends that consideration by the APC, along with a formal referral to the agencies listed at Attachment No. 1, should be considered appropriate consultation for the purpose of Section 879 of the Local Government Act, as the change in OCP designations involves an area less than 20 ha and the creation of less than 30 new parcels. As such, this process is seen to be sufficiently early and does not need to be further ongoing.

Comments have been received from the Archaeology Branch, Interior Health Authority, RDOS Emergency Services Supervisor, RDOS Building Supervisor, Ministry of Forests, Lands and Natural Resource Operations, Ministry of Transportation and Infrastructure, District of Summerland and the Ministry of Agriculture, and these are included as a separate item on the Board Agenda.

Of note, the Board is asked to be made aware of IHA’s concerns regarding the food service and catering being operated on site, the on-site Water Supply System, and the swimming pool and hot tub, all operating without proper approvals and permits from Provincial regulations. Alternative:

1. That the subject Amendment Bylaws to the Area ‘F’ OCP and Zoning Bylaws be denied.

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Analysis:

The primary consideration in the assessment of this application is the merit of amending the land use for a portion of the subject property from a Small Holdings to a Tourist Commercial zone. Small Holdings designations generally encompasses larger rural residential properties; whereas, a Tourist Commercial zone is intended to service the tourist industry.

The Area ‘F’ Official Community Plan recommends limiting any new tourist commercial development along Highway 97 to those areas already established and where re-development is to occur that it should not have a detrimental impact on the Provincial Highway network. The OCP also directs the Board to consider new tourist commercial opportunities based on their own merits providing they do not have a detrimental impact on the environment or surrounding land uses.

The current commercial enterprise, the La Punta Norte Guest House, has evolved over the past decade to a successful tourist accommodation and facility operation. The proposed zoning designation will allow greater commercial flexibility for any operator and remove the risk being in non-compliance with the RDOS bylaws.

The proposed Bylaw Amendment will permit the owner to continue to operate the Guest House operation either as a live in owner / operator or as complete tourist accommodation operation with all rooms available for the traveling public. This amendment is required irrespective of whether or not the property is subdivided.

MOTI will be required to approve the Zoning Bylaw Amendment for this application after third reading and therefore will consider the impacts to the Provincial Highway network; however, MOTI has provided comments that indicate approval of the subject application.

Parking requirements will need to be addressed at time of building permit; however, an initial assessment indicates there are approximately 41 stalls given the size and aisle spacing prescribed in the Zoning Bylaw. This number appears to be able to support the 10 tourist accommodation units as well as up to 100 people for an event. The parking areas are not all paved as required in the zoning regulations; however, Administration recognizes that events of 100 or more are not a daily occurrence and so the extra parking required can be accommodated on unpaved parking areas.

The applicant will still be required to deal with the variety of issues as part of the subdivision process, as outlined in the PLNA issued from MOTI in 2012, if the subdivision were to move ahead including a watercourse development permit.

The change of use, while reflecting more adequately the current uses on the subject property, also requires the owner to demonstrate that the operation is safe to the travelling public. Specifically, Administration is recommending that the applicant provide a fire risk assessment plan, and proof of water quantity and potability designed to adequately reflect the commercial uses of the Guest House, including gatherings such as weddings of up to 100 people, prior to a public hearing.

Due to the possible changes from the current residential (Bed & Breakfast) use to a commercial operation, a building permit will need to be completed for the assessment of the new use. A building permit will address the issues of fire safety from a building perspective as well as the adequacy of the sewage system on site. Administration prefers that the applicant complete the information needed for a building permit application so that any potential negating building issues are known prior to the land use being amended.

Should the Board not be in support of this proposal, the property owner will be required to operate the Punta Norte Guest House as a Bed and Breakfast in accordance with Electoral Area ‘F’ Zoning Bylaw No. 2461, 2008.

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Respectfully submitted:

E. Riechert _________________________________

E. Riechert, Planner Attachments: Attachment No. 1 – Agency Referral List Attachment No. 2 - Context Maps Attachment No. 3 – Applicant’s Site Plan Attachment No. 4 – Google Earth View Endorsed by: Endorsed by:

__________________ _D. Butler_________________

C. Garrish, Planning Supervisor D. Butler, Development Services Manager

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Attachment No. 1 – Agency Referral List

Agricultural Land Commission (ALC) City of Penticton

Interior Health Authority (IHA) District of Summerland

Ministry of Agriculture Town of Oliver

Ministry of Community, Sport and Cultural Development

Town of Osoyoos

Ministry of Energy & Mines Town of Princeton

Ministry of Environment Village of Keremeos

Ministry of Forest, Lands & Natural Resource Operations

Okanagan Nation Alliance (ONA)

Ministry of Jobs, Tourism and Innovation Penticton Indian Band (PIB)

Ministry of Transportation and Infrastructure

Osoyoos Indian Band (OIB)

Integrated Land Management Bureau Upper Similkameen Indian Bands (USIB)

BC Parks Lower Similkameen Indian Bands (LSIB)

School District #53 (Okanagan Similkameen)

Environment Canada

School District #58 (Nicola Similkameen) Fisheries and Oceans Canada

School District #67 (Okanagan Skaha) Archaeology Branch

Okanagan Falls Improvement District

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Attachment No. 2. – Context Maps

Subject Parcel

Amend OCP Bylaw No 2460, 2008:

from: Small Holdings (SH)

to: Commercial (C)

Amend Zoning Bylaw No. 2461, 2008:

From: Small Holdings Two (SH2)

To: Tourist Commercial Five (CT5)

(YELLOW SHADED AREA )

NN

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Attachment No. 3 – Applicant’s Site Plan

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Attachment No. 4 – Google Earth View

Approximate

parcel lines

Approximate proposed

Zoning boundary