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HomeMy WebLinkAboutPLN 42-21Report to Council Report Number: PLN 42-21 Date: November 22, 2021 From: Kyle Bentley Director, City Developments & CBO Subject: Envision Durham – Employment Strategy Technical Report - File: A-2100-020 Recommendation: 1. That Council endorse the Staff Comments contained in Section 2.2 of Report PLN 42-21 as the City’s formal comments on the Envision Durham Employment Strategy Technical Report, September 24, 2021; and 2. That the appropriate City of Pickering staff be authorized to take the necessary actions as indicated in this report. Executive Summary: The Region of Durham released the Employment Strategy Technical Report (Employment Report) on September 24, 2021, and requested comments by October 25, 2021. The Employment Report is the third of four technical papers to be released as part of the Envision Durham’s Growth Management Land Needs Assessment exercise. Given the short comment period (30 days) for these technical reports, staff informed the Region that the City’s comments with respect to the Employment Report will only be available after Council has considered this report. Staff’s comments on the Employment Report are outlined in Section 2.2 of this report. Staff is seeking Council’s endorsement of the comments, and that a copy of Council’s resolution and Report PLN 42-21 be forwarded to the Region for consideration. Financial Implications: This report has no financial implications for the City. 1. Background: The Region of Durham is undertaking a Growth Management Study (GMS), as part of Envision Durham, the Region’s Municipal Comprehensive Review process. The first phase of the GMS consists of a Land Needs Assessment (LNA) to determine the amount of settlement area boundary expansion that may be required to accommodate the future population and job growth to 2051. The LNA is being presented through the release of the following four technical reports: • The Region-Wide Growth Analysis; • The Housing Intensification Study; • The Employment Strategy; and • The Community Area Urban Land Needs. Report PLN 42-21 November 22, 2021 Subject: Envision Durham – Employment Strategy Technical Report Page 2 The first technical report, the Region-Wide Growth Analysis, released on July 2, 2021, was commented on through staff-to-staff comments in a letter to the Region on August11, 2021. The staff comments were submitted to, and endorsed by, Council on September 27, 2021 (Corr. 41-21). The second technical report, the Housing Intensification Study Technical Report, released on September 3, 2021, was commented on by staff through Report PLN 40-21, and endorsed by Council on October 25, 2021 as the City’s formal comments (Resolution #716/21). On September 24, 2021, the Region released the third technical report, the Employment Strategy Technical Report (Employment Report). The last technical report, Community Area Urban Land Needs, will be reported and commented on through a future report to Planning & Development Committee in December, 2021. The Employment Report can be accessed through the following hyperlink: https://www.durham.ca/en/regional-government/resources/Documents/Council/CIP-Reports/CIP-Reports-2021/2021-INFO-97.pdf Regional staff will be preparing a Land Needs Assessment Recommendations (Summary) Report, compiling the key outcomes, technical analysis, and related recommendations contained in the four technical reports. The Summary Report will be presented to Regional Planning and Economic Development Committee at a future date, to be confirmed by the Region. City staff will, at that time, bring forward a recommendation report to Pickering’s Planning & Development Committee, providing the City’s formal comments on the Region’s Land Needs Assessment Recommendations (Summary) Report. 2. Discussion: 2.1 The Employment Strategy Technical Report In accordance with the Growth Plan, the Region of Durham’s employment base is forecast to reach 460,000 jobs by 2051. This forecast presents an increase of approximately 221,600 jobs between 2019 and 2051, equating to an annual growth rate of 2.1%, which will require approximately double the Region’s historic growth rate. The purpose of the Employment Report is to present the results of the Region’s comprehensive assessment of current employment market conditions and trends, expected growth patterns, market opportunities and disrupters, that are anticipated to influence employment growth in Durham through 2051. Key outcomes of the Employment Report include a recommended density target for Employment Areas, a recommendation regarding the supply of designated Employment areas to accommodate employment land related jobs to 2051, and recommendations on Employment Area lands conversion requests. Report PLN 42-21 November 22, 2021 Subject: Envision Durham – Employment Strategy Technical Report Page 3 The key findings of the Employment Report are the following: • Durham Region has approximately 4,940 gross hectares of land within Urban Employment Areas (designated industrial lands within urban areas), of which 2,550 gross hectares (52%) are considered developed. The Whitby South Employment Area contains the greatest share of developed Urban Employment Area lands at 22%, followed by the Pickering East Employment Area (the Brock Industrial Area) at 15%; • Durham’s Urban Employment Areas contain 1,966 gross hectares of vacant developable lands, which exclude lands with physical constraints (34 hectares), a 10% land vacancy adjustment (inactive sites/land banking), and the vacant employment lands recommended for conversion amounting to 167 hectares; • Through a high-level review using the developed employment inventory, building footprints and orthophotos, 1,215 hectares of the Region’s developed Urban Employment Area lands were identified as underutilized; • Based on a 15% employment intensification target and an overall target employment density of 26 jobs per gross hectare, the Region will require a total of 3,130 gross hectares of Employment Area lands to accommodate anticipated job growth to 2051; • Based on the identified Urban Employment Area land demand to 2051 and the available designated Employment area land supply, a shortfall of 1,164 hectares of Urban Employment Area lands has been identified to 2051; • Based on a site-by-site evaluation of requests for Employment Area lands conversions, it is recommended that 300 hectares of the lands subject to the Employment Area lands conversion requests be converted to non-employment uses plus an additional 108 hectares of Employment Area lands outside the active submissions, that have been identified for conversion by the Region’s consulting team and Regional staff. This brings the total area proposed for conversion to 408 hectares (this includes 52 hectares of the Durham Live lands that are being converted to non-employment uses in recognition of the approved Minister’s Zoning Order that permits non-employment uses); and • Employment growth from 2019 to 2051 is forecast to comprise: • 49% Population Related Employment (employment in institutional and commercial sectors such as schools, small-scale offices, retail services, restaurants, health care, including work-from-home); • 37% Employment Lands Employment (jobs in industrial type buildings including manufacturing, wholesale trade, and warehousing); and • 13% Major Office Employment (in terms of the Region’s Employment Strategy Major Office employment comprises employment within office buildings greater than 1,900 square metres). Report PLN 42-21 November 22, 2021 Subject: Envision Durham – Employment Strategy Technical Report Page 4 It is important to note that the Employment Strategy did consider the manner in which the COVID-19 pandemic are likely to influence the nature of employment by type over both the near and long term. 2.2 Staff Comments Staff is generally in agreement with the findings and recommendations of the Employment Report. However, a number of minor aspects and technical concerns have been identified, which are elaborated on below. a. The Region, in recognition of the recent structural changes in the regional economy, acknowledges the need for Durham Region to ensure that the amount, type, and location of the Region’s established and planned Employment Areas are well aligned with anticipated market demand. More recently, Pickering staff, in discussions with staff from Infrastructure Ontario, heard that there is increased interest in the Prestige Employment Area of Seaton, for the development of industries other than “prestige” employment uses. However, these type of industrial uses are currently not permitted in the Prestige Employment zone. Accordingly, the City has retained Dillon Consulting to do an employment land use review of the lands within the Seaton Innovation Corridor, through an economic lens. Staff representing Dillon Consulting will be meeting with Regional staff. The outcome of this land use review may result in changes to the land designations within the Seaton Innovation Corridor, associated permitted uses, and potential job creation, subject to the appropriate planning approval processes. b. The Employment Report (page 42) points out that Durham’s employment land base is accommodated in a combination of Urban Employment Areas, Employment Related Areas, and Rural Employment Areas, as illustrated on Figure 5-1 (page 45). However, Figure 5-1 does not reflect the Hamlet Employment Areas in the Hamlet of Claremont, north of the Canadian Pacific Railway track, and in the Hamlet of Brougham, at the corner of Highway 7 and Sideline 20. These lands, measuring approximately 9.6 hectares and 7 hectares respectively, may not be designated in the Regional Official Plan as “Rural Employment Areas”, but they do form part of the rural employment land base. The Region needs to confirm whether these particular areas have been included in the Rural Employment Areas land holdings calculation for Durham Region. c. The Employment Report highlights that Durham’s five “Employment Related Areas”, including the Pickering Nuclear Generation Station (PNGS) and the Duffins Creek Water Pollution Control Plant, play an important part in achieving Durham Region’s overall employment forecast to 2051. The Report discusses the growth outlook for Key Trade Industry Sectors and refers to the significant negative impact COVID-19 is having on short-term macro-economic trends. However, the Report does not address the potential short to medium term impact of the closure of the PNGS on the local economy. The Region needs to confirm that the employment growth outlook considered the closure and decommissioning of the PNGS. Report PLN 42-21 November 22, 2021 Subject: Envision Durham – Employment Strategy Technical Report Page 5 d. The Employment Report, in its overview of the Regional and Local Growth Drivers, highlights that the Highway 407 East extension to Highway 35/115, and completion of the Highway 412 and 418 connectors between Highways 401 and 407, has greatly improved accessibility within Durham Region and provided enhanced connectivity to Employment Areas situated along this corridor (page 63). This may be true in part, but the high toll fees on the 412 and 418 connectors continue to be a significant disincentive/barrier to accessibility and goods movement through, to, and from the Region of Durham. These tolls have a detrimental impact on the economic viability and competitiveness of the Region, and have led to an underutilization of the connectors. Furthermore, the apparent unwillingness of the Province to address the disparity between Durham Region and Toronto Region, where none of the connectors (e.g., Highways 400, 410 and 427) between Highways 401 and 407 are tolled, puts Durham Region at a disadvantage in comparison to the Regions of Toronto, Peel and York. Did the feasibility study by the Province of the toll fees on the 412 and 418 connectors consider the cost the gridlock on Highway 401 through Durham has on the regional and broader economy? It is recommended that the Region continue advocating to the Province for the removal, or significant reduction, of the tolls on Highway 407 and the 412 and 418 connectors through Durham in order to establish parity with Toronto, Peel and York Regions, to improve access to and the viability of Employment Areas and businesses in Durham, and to improve the economic competitiveness of the Region. e. The Employment Report assumes that 15% of all forecasted employment will be accommodated through intensification, and states that this assumption is factored into the land needs analysis. However, the Report provides no explanation as to how the Region or its consultants arrived at this assumption. Clarification regarding the basis or source for this assumption would be helpful. f. Figure 7-8 on page 75 illustrates how the Region determined the developable vacant Employment Area land supply. Staff noted the following calculation error in the Figure: The 2,119 hectares of Developable Vacant Employment Area Lands Supply Adjusted for Long-term Vacancy minus the 167 hectares of Recommended Employment Area Conversions equals 1,952 hectares and not 1,966 hectares, as reflected in the last column. This error has already been brought to the attention of Regional staff who confirmed that their consultant will be correcting this error by reconciling it through the final Land Needs Assessment. g. The Employment Report offers recommendations to provide stronger direction regarding accessory and employment supportive uses in Employment Areas. The Report includes a recommendation on page 84 that current policy 8C.2.12 in the Regional Official Plan (ROP) be updated by increasing the maximum size of a single use that is accessory to Employment Area uses from 500 square metres to 2,000 square metres. Staff is concerned with the significant increase in the maximum size of a single use, as it is equivalent to the minimum size of large scale or large-format commercial facilities, as defined by the ROP, and which is prohibited Report PLN 42-21 November 22, 2021 Subject: Envision Durham – Employment Strategy Technical Report Page 6 in Employment Areas. Furthermore, no planning rationale is provided for this increase, and staff is concerned about the cumulative impact multiple uses of 2,000 square metres within designated Employment Areas may have on the Employment Area land supply. Accordingly, it is recommended that the Region reconsider this recommendation. h. Similarly, the Report provides a recommendation that current policy 8C.2.13 in the ROP be updated to permit a single employment supportive use not exceeding 2,000 square metres, provided that certain criteria be met. One of the criterion is that the employment supportive uses not detract from the potential for the subject lands to be utilized for employment uses. As written, there should be no circumstance that would prevent a property currently developed with an employment supportive use to be redeveloped for an employment uses. Redevelopment for employment uses may, however, be restricted by supportive uses on adjacent property, such as existing sensitive land uses, which are addressed through another criterion. Staff questions whether this specific criterion is of value and request that it be reconsidered. i. The Employment Report provides a series of employment strategy policy recommendations pertaining to the future planning of the Region’s Employment Areas, Strategic Growth Areas and remaining urban and rural areas. Staff has reviewed the policy recommendations and can confirm that, with the exception of the concerns expressed in paragraphs 2.2 g. and 2.2 h. above, the recommendations are generally in line with previous comments the City provided on the Region’s Growth Management Discussion Paper through Report PLN 32-19 and the Region’s Proposed Policy Directions Paper through Report PLN 29-21. 3. Staff Recommendations: It is recommended that the staff comments in Section 2.2. of this report be endorsed by Council as the City’s formal comments on the Envision Durham Employment Strategy Technical Report, and that a copy of Report PLN 42-21 and Council’s resolution be forwarded to the Region of Durham for consideration. Report PLN 42-21 November 22, 2021 Subject: Envision Durham – Employment Strategy Technical Report Page 7 Prepared By: Original Signed By Déan Jacobs, MCIP, RPP Manager, Policy & Geomatics Approved/Endorsed By: Original Signed By Catherine Rose, MCIP, RPP Chief Planner Original Signed By Kyle Bentley, P. Eng. Director, City Development & CBO DJ:CR:ld Recommended for the consideration of Pickering City Council Original Signed By Marisa Carpino, M.A. Chief Administrative Officer