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PD 19-09
REPORT TO PLANNING & DEVELOPMENT PICKERING COMMITTEE Report Number: PD 19-09 62 Date: June 1, 2009 From: Neil Carroll Director, Planning & Development Subject: Official Plan Amendment Application OPA 08-004/P Amendment 19 to the Pickering Official Plan Zoning By-law Amendment - A 24/08 SmartCentres (Calloway REIT/First Simcha) 1899 Brock Road (Part of Lot 18, Concession 1) City of Pickering Recommendation: 1. That Report PD 19-09 of the Director of Planning & Development on Official Plan Amendment Application OPA 08-004/P, Amendment 19 to the Pickering Official Plan, be received; 2. (a) That Amendment 19 to the Pickering Official Plan initiated by SmartCentres, to permit an increase to the maximum aggregate gross leasable floor area from 49,000 to 55,000 square metres as set out in Exhibit "A" to Appendix I to Report PD 19-09 be approved; (b) That the Draft By-law to adopt Amendment 19 to the Pickering Official Plan to establish a maximum aggregate gross leasable floor area for the subject property of 55,000 square metres, as set out in Appendix I to Report PD 19-09 be forwarded to Council for enactment; 3. That Zoning By-law Amendment Application A 24/08 submitted by SmartCentres for lands being Part of Lot 18, Concession 1, City of Pickering, to amend the zoning of the subject property to permit an increase of the maximum aggregate floor area from 49,237 square metres to 55,000 square metres and to reduce the site specific parking standard from 5.0 spaces per 100 square metres of gross leasable floor area to 4.5 spaces per 100 square metres of gross leasable floor area as outlined in Report PD 19-09 be approved; 4. That the draft by-law to amend Zoning By-law 3036, as amended by By-laws 5511/99, 5692/00, 6011/02 and 6647/06 to permit 55,000 square metres maximum aggregate floor area and to establish a site specific parking standard of 4.5 spaces per 100 square metres of gross leasable floor area, as set out in Appendix 11 to Report PD 19-09, be forwarded to Council for enactment; and Report PD 19-09 June 1, 2009 Subject: SmartCentres (OPA 08-004/P and A 24/08) Page 2 5. Further, that the City Clerk forward a copy of Report PD 19-09 to the Region of Durham. Executive Summary: SmartCentres has submitted applications to amend the Pickering Official Plan and Zoning By-law for lands located at the northeast corner of Brock Road and Pickering Parkway (see Attachment #1), to permit an increase to the existing maximum aggregate gross leasable floor area (Official Plan) and maximum aggregate floor area (Zoning By-law) and to reduce the site specific parking standard. These amendments are required to permit immediate expansion to the existing Wal-Mart store and former Sam's Club building, and potential future expansion to the existing Sobeys food store. A retail impact study, concluded that the expansions of the Wal-Mart and Sobeys stores will not unduly affect the viability of any lands designated or developed for the retailing of goods and services in the City of Pickering, nor adversely affect the planned function of the Downtown Core, the Community Nodes, and nearby Main Central Areas in other municipalities in the Region. The study conclusions have been supported by a peer reviewer retained by the City. Site improvements, including additional and expanded pedestrian walkway connections, will be accommodated through required revisions to the approved site plan. Approval of these applications will be consistent with the intent of the existing zoning provisions and the Pickering Official Plan policies. The proposed increase to the maximum aggregate (gross leasable) floor area and reduced parking standard are appropriate to the planned function of the site. It is recommended that Council adopt Amendment 19 to the Pickering Official Plan and approve Zoning By-law Amendment Application A 24/08. Financial Implications: No direct costs to the City are anticipated as a result of the proposed development. Sustainability Implications: The applicant's proposal is aligned with the principle of adaptive reuse of buildings and utilization of existing buildings for additional purposes. Re-design of portions of the site also permits construction of new pedestrian walkways. The new walkways will improve pedestrian route connectivity through and to the site, thereby promoting a reduction of car travel within the site and better accommodating transit users and physically challenged persons. Report PD 19-09 June 1, 2009 Subject: SmartCentres (OPA 08-004/P and A 24/08) Page 3 The applicant has been encouraged to consider the introduction of sustainable elements in the site plan submission and is exploring several opportunities with their designer/engineer. Various sustainable strategies (including reflective roofs for the building additions, energy efficient building systems, lighting strategies and HVAC systems) will be promoted. Background: 1.0 Introduction The subject property supports a large format retail store centre. The currently approved site plans for the SmartCentres lands include notations that indicate future expansions of both Wal-Mart and Sobeys and further note the parking in the expansion areas as "temporary". No additional retail stores will be added to the centre through the approval of the subject applications. The applicant, SmartCentres, originally intended to expand the Wal-Mart store immediately and was considering potential future expansion for Sobeys (see site plan Attachment #2 and applicant's Planning Rationale Report Attachment #4). Subsequent to the statutory public meeting for these applications, the Sam's Club store closed and Lowe's, together with the applicant, came forward with a proposal to reuse and expand this building. The proposal now includes: • the Wal-Mart expansion on its north side from its current gross floor area of 12,103 square metres (130,276 square feet) to 15,329 square metres (165,000 square feet) 3,391 square metres (36,500 square feet) of the expansion area will be used for display, cold storage and preparation of food. • Expansion, by approximately 702 square metres (7,557 square feet), and conversion of the former Sam's Club into a Lowe's home improvement centre (see site plan Attachment #3). • The future expansion of Sobeys on its east side from its current 4,516 square metres (approximately 48,610 square feet) to 5,445 square metres (approximately 58,610 square feet). The total aggregate gross floor area for the three proposed expansions amounts to approximately 4,857 square metres (52,282 square feet) requiring an increase to the Official Plan's maximum aggregate gross leasable floor area from 49,000 square metres (527,449 square feet) to 53,857 square metres (579,731 square feet) and a corresponding increase to the maximum aggregate floor area in the zoning by-law. Parking spaces will be lost as a result of the proposed building expansions. Report PD 19-09 June 1, 2009 Subject: SmartCentres (OPA 08-004/P and A 24/08) Page 4 65 2.0 Comments Received 2.1 At the February 2, 2009 Public Information Meeting (see text of Information Report & Meeting Minutes, Attachments #5 & #6) No members of the public in attendance at the public information meeting spoke in support or opposition to the application. 2.2 Agency Comments Region of Durham - the application is in conformity with the Regional Plan; - the proposal is consistent with the Provincial Policy Statement and Growth Plan; - municipal water supply and sanitary sewers are available to the subject lands (see Attachment #7); - these applications are exempt from Regional approval; Development Control - grading and Stormwater Management will be addressed with the Site Plan Application (see Attachment #8); Municipal Property & Engineering - a safe pedestrian access to connect to Beechlawn Park is required (see Attachment #9); Veridian - no comment (see Attachment #10); Toronto and Region - proposed additions are not in flood plain Conservation Authority - no objection to the proposed amendments (see Attachment #11). 3.0 Discussion 3.1 The Retail Impact Analysis Report indicates that the expanded stores will not have a lasting or overly burdensome impact on other retail stores A Retail Impact Analysis Report prepared by Tate Economic Research Inc. (as required by official plan policy) was submitted with the zoning by-law and official plan amendment applications. Report PD 19-09 June 1, 2009 Subject: SmartCentres (OPA 08-004/P and A 24/08) Page 5 66 The City retained Malone Given Parsons Ltd. to undertake a peer review of this report. Based on the findings of the market impact analysis, the expansions of Sobeys and Wal-Mart will not unduly affect the viability of any lands designated or developed for the retailing of goods and services in the City of Pickering, and will not adversely affect the planned function of the Downtown Core, the Community Nodes, and nearby Main Central Areas in other municipalities in the Region. This conclusion was supported by the peer review. The report further concludes that the proposed Wal-Mart, Lowe's and potential future Sobeys expansions would enhance the vitality and viability of the retail market in Pickering and increase its attractiveness as a retail destination. 3.2 Development Matters including enhanced pedestrian connections, will be addressed through the site plan review process The applicant proposes to expand and renovate the existing buildings to accommodate a full-service Wal-Mart, allow for potential expansion of Sobeys and accommodate Lowe's as a new tenant. Exterior building improvements will also be incorporated. Through the site plan review process, the function of the site will be reviewed further. Matters including new and expanded pedestrian walkways, fencing, lighting, landscaping, parking, grading, stormwater management, and accessibility for persons with a disability will be reviewed. Fencing The existing fence adjacent to Beechlawn Park will be required to be repaired. Pedestrian Walkways and Landscaping Wal-Mart and Lowe's are proposing to expand the sidewalks on the main entrance sides of their respective buildings. Furthermore, SmartCentres has committed to providing new pedestrian connections allowing for convenient internal circulation between stores and access from Pickering Parkway along the west side of the main north/south drive aisle and from the neighbouring Beechlawn Park (see Attachments #13, #14 & #15). A compromise between available space for soft landscaping and the need for new walkways will be required. Existing on-site vegetation will be retained where possible while recognizing that some losses will be necessary to accommodate the new pedestrian walkways. The Municipal Property & Engineering Division is also investigating the provision of a walkway connection through Beechlawn Park to access the SmartCentre site, in alignment with SmartCentre's proposed walkway location. Stormwater and Grading Stormwater will be directed away from abutting properties and must be contained within the boundaries of the subject property. Grading must be provided to appropriately direct stormwater into the municipal storm sewer. Report PD 19-09 June 1, 2009 Subject: SmartCentres (OPA 08-004/P and A 24/08) Page 6 67 3.3 The reduced number of parking spaces still accommodates the needs of the expanded development Parking available for the development, with the expanded buildings, would be reduced. The applicant has requested to reduce the site specific parking ratio from 5.0 spaces per 100 square metres of gross leasable floor area to 4.8 spaces per 100 square metres of gross leasable floor area. This parking standard adjustment is considered minor and supportable in consideration of the very large shared pool of parking available for the whole site. Proposed improvements to pedestrian site access, and internal walkways connections will reduce the need for parking spaces. Also, since the proposed increase in floor area is from the expansion of existing stores, fewer new car trips would be generated than would be generated through the creation of new stores. However, the proposed new reduced parking supply standard will not fully accommodate the total increase in floor area proposed. At the time that the application was submitted, the applicant was not aware of Lowe's minor expansion plans. This proposed expansion reduces availability of parking spaces still further. In order to accommodate all three building expansions the parking ratio should be reduced to 4.5 spaces per 100 square metres of gross leasable floor area. This ratio has been successfully applied to other plaza sites in Pickering. Staff recommend that this discrepancy be addressed at this time and consider this change to be a minor amendment to the application, not a significant reduction from the initial request and supportable. Should Council concur, no further public notification will be required to accommodate this modification. 3.4 The proposed store expansions would result in more efficient use of land The size and configuration of the site is suitable to accommodate the proposed store expansions, and the buildings will remain compatible with adjacent land uses without imposing any built form impacts on the neighbouring residential area. 3.5 City staff consider the inclusion of the proposed Lowe's building expansion to be minor and within the intent of the Official Plan The Lowe's building expansion of 702 square metres was not included with the original applications for SmartCentre's proposal. The initial request from SmartCentres was for a maximum aggregate gross leasable floor area of 53,155 square metres. To accommodate the additional floor area contained in the proposed Lowe's expansion and to provide flexibility in the preparation of final site and building plan preparation, this aggregate total has been increased to 55,000 square metres in both the official plan amendment and the zoning by-law. This increase is considered minor relative to the total floor area approved for the site and also a minor amendment to the application. No further public notification will be required to accommodate this modification. Report PD 19-09 June 1, 2009 Subject: SmartCentres (OPA 08-004/P and A 24/08) Page 7 68 3.6 The recommendations also include an Official Plan "housekeeping" amendment The proposed Official Plan amendment deletes Section 3.6 (g)(v) of the Official Plan that prohibits a food store prior to June 11, 2003. This timing provision was included in the policy due to specific market conditions in place at that time. The time restriction has passed and a food store (Sobeys) now exists on site. Therefore the policy is redundant. 3.7 A request for information regarding the purchase of locally grown produce was addressed The applicant provided information regarding the types of local produce that would be sold by Wal-Mart (see Attachment #12). 4.0 Applicant's Comments The applicant is aware of the contents of this report and concurs with staff's recommendations. APPENDICES APPENDIX I Draft By-law to adopt Amendment 19 to the Pickering Official Plan APPENDIX II Draft Zoning Bylaw Attachments: 1. Location Map 2. Applicant's Conceptual Site Plan 3. Lowe's Conceptual Site Plan 4. Applicant's Planning Rationale Report 5. Text of Information Report No. 03-09 6. Minutes from February 2, 2009 Statutory Public Information Meeting 7. Agency Comment - Region of Durham Planning Department 8. Planning & Development Department - Development Control 9. Municipal Property and Engineering - Engineering and Capital Works 10. Veridian Connections 11. Toronto and Region Conservation Authority 12. Email from Goodman's providing information on locally purchased produce 13. Letter from SmartCentres agreeing to provision of expanded and new pedestrian walkways 14. Email from SmartCentres agreeing to pedestrian connection to Pickering Parkway 15. Site Plan showing existing and proposed pedestrian walkway connections 16. Extracts from original Tait Economic Research Retail Market Analysis 17. Revisions to Tait Economic Research Retail Market Analysis 18. Malone Given Parsons Peer Review of Retail Market Analysis Report PD 19-09 June 1, 2009 Subject: SmartCentres (OPA 08-004/P and A 24/08) Page 8 69 Prepared By: Approved/Endorsed By: Isa Jam / Neil Carroll, 1P Planner I Director, Planning & Development Lynda- T ylor, MCIP PP Manager, Development Review IJ:LT:jf Copy: (Acting) Chief Administrative Officer Chief Administrative Officer Recommended for the consideration of Pickering City Council Thomas J. Qui , RD -MR, CMM III Chief Admini rative Officer 7 0 APPENDIX I TO REPORT PD 19-09 DRAFT BY-LAW TO ADOPT AMENDMENT 19 TO THE PICKERING OFFICIAL PLAN THE CORPORATION OF THE CITY OF PICKERING 71 BY-LAW NO. , Being a By-law to adopt Amendment 19 to the Official Plan for the City of Pickering (OPA 08-004/P) WHEREAS pursuant to the Planning Act, R.S.O. 1990, c.p. 13, subsections 17(22) and 21(1), the Council of The Corporation of the City of Pickering may, by by-law, adopt amendments to the Official Plan for the City of Pickering; AND WHEREAS pursuant to Section 17(10) of the Planning Act, the Minister of Municipal Affairs and Housing has by order authorized Regional Council to pass a by-law to exempt proposed area municipal official plan amendments from its approval; AND WHEREAS on February 23, 2000 Regional Council passed By-law 11/2000 which allows the Region to exempt proposed area municipal official plan amendments from its approval; AND WHERERAS the Region has advised that Amendment 19 to the City of Pickering Official Plan is exempt from Regional approval; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. That Amendment 19 to the Official Plan for the City of Pickering, attached hereto as Exhibit "A", is hereby adopted; 2. That the City Clerk is hereby authorized and directed to forward to the Regional Municipality of Durham the documentation required by Procedure: Area Municipal Official Plans for Amendment 19. 3. This By-law shall come into force and take effect on the day of the final passing hereof. BY-LAW read a first, second and third time and finally passed this day of 2009. 10 David Ryan, May 'All p Debi A. Wilcox, City Clerk Exhibit "A" to By-law AMENDMENT 19 TO THE PICKERING OFFICIAL PLAN P( AMENDMENT 19 TO THE PICKERING OFFICIAL PLAN PURPOSE: The purpose of this Amendment is to increase the maximum aggregate gross leasable floor area for lands north of the Pickering Parkway in the Specialty Retailing Node from 49,000 square metres to 55,000 square metres and to delete an obsolete policy respecting the timing of a permitted food store. LOCATION: This Amendment generally affects lands north of Pickering Parkway, on the east side of Brock Road. BASIS: The subject lands are within an area designated Specialty Retailing Node in the Pickering Official Plan. For lands north of Pickering Parkway, the Plan establishes a minimum gross leasable floor area for individual retail stores and a maximum aggregate gross leasable floor area for all special purpose commercial uses. The proposed amendment would permit enlargement of existing structures including the expansion of a large format discount store, the expansion of a large format food store and the conversion and expansion of a former large format membership club to a home improvement centre for a total expansion of approximately 6,000 square metres. The proposal is considered a minor refinement to approvals previously granted. The City's Peer Review consultant concurs with the Retail Market Demand and Impact Analysis Report submitted by the applicant that the proposed expansions will not unduly affect the viability of any lands designated or developed for the retailing of goods and services in the City of Pickering, including the Downtown Core, other Community Nodes and' nearby Main Central Areas in other municipalities in the Region. As well, the proposed store expansions represent an efficient use of land that has already been designated and zoned for large format retailing. The amendment would delete an unnecessary policy prohibiting a food store prior to June 11, 2003. The time limit has passed and a food store exists on site. Amendment 19 to the Pickering Official Plan Page 2 741 ACTUAL AMENDMENT: The Pickering Official Plan is hereby amended by: 1. Amending section 3.6 (g) (iii) by replacing the number "49,000" with the number "55,000". 2. Deleting Section 3.6 (g) (v) in its entirety IMPLEMENTATION: The provisions set forth in the City of Pickering Official Plan, as amended, regarding the implementation of the Plan shall apply in regard to the Amendment. INTERPRETATION: The provisions set forth in the City of Pickering Official Plan, as amended, regarding the implementation of the Plan shall apply in regard to this Amendment. 75 APPENDIX II TO REPORT PD 19-09 DRAFT BY-LAW ZONING BY-LAW AMENDMEN APPLICATION A 24/08 THE CORPORATION OF THE CITY OF PICKERING 76 BY-LAW NO. OR,4fr ,Being a By-law to amend Restricted Area (Zoning) By-law 3036, as amended by By-laws 5511/99, 5692/00, 6011/02, and 6647/06 to implement the Official Plan of the City of Pickering, Region of Durham, being Part of Lot 18, Concession 1 (40R-12591, Part 1 & 40R-19801, Parts 3, 4, 5, 6, 7, 8, & 10), in the City of Pickering. (A 24/08) WHEREAS the Council of The Corporation of the City of Pickering deems it desirable to permit an increase of the maximum aggregate floor area and to reduce the site specific parking standard for a commercial shopping centre, being Part of Lot 18, Concession 1 (40R-12591, Part 1 & 40R-19801, Parts 3, 4, 5, 6, 7, 8, & 10), in the City of Pickering. AND WHEREAS an amendment to By-law 3036, as amended by By-laws 5511/99, 5692/00, 6011/02, and 6647/06, is therefore deemed necessary; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. TEXT AMENDMENT 1. Subclause Section 5. (2) (iii) A, Floor Area Limitations For Certain Uses, of By-law 5511/99, as amended is hereby repealed and replaced by the following subclause: A Maximum aggregate floor area for all uses shall be 55,000 square metres; 2. Subclause Section 5..(2) (v) B, Parking Requirements, of By-law 5511/99, as amended is hereby repealed and replaced by the following subclause: B For all other uses, there shall be provided and maintained on the lot a minimum of 4.5 parking spaces for each 100.0 square metres or part thereof of gross leasable floor area; 2. BY-LAW 3036 By-law 3036 is hereby further amended only to the extent necessary to give effect to the provisions of this By-law. Definitions and subject matter not specifically dealt with in this By-law shall, be governed by the relevant provisions of By-law 3036, as amended. By-law No. Page 2 7 / 3. EFFECTIVE DATE This By-law shall come into force in accordance with the provisions of the Planning Act. BY-LAW read a first, second and third time and finally passed this day of June, 2009. David Ryan, Mayor Debi A. Wico , City Clerk ATTACHMEM L TO REPORT# PD 1 9 © 9 CRESCENT I i m m IIiii AVENUE FINCH AVENUE RCAD - DURHA REG/ON,IkIL POL/C Z5th DIV1S10 w G W G ~ w ~ W = ~ 0 U O S(0 W _ ~~NG Ln o a a~ w m G z Q z m a G D Q M ° DRIVE BAINBRIDGE 77, w w 4LG Zz U COURT a z DENR w SUBJECT M w K MM PARK PROPERTY o Y O EECHLAW Elf M DRIVE ~ PARK > o 0 c/) S U U N T] Of O a Z > g ~ U N w Li rr, m m COURT DRIVE PICKERING PARKWAY Q 3 Y Q 0. City of Pickering Planning & Development Department PROPERTY DESCRIPTION PART LOT 18, CONCESSION 1 OWNER CALLOWAY REIT(PICKERING) INC. DATE JAN. 7, 2009 DRAWN BY JB FILE No. A 24/08 OPA 08-004P SCALE 1:5000 CHECKED BY Ii At pYrtl9e: PN-9 oTe tone[ Enterprtees Inc. and its suppliers. All rights Reserved. Not o pion o/ survey. 2005 MPAC and its suppliers. All ri hls Rese rvetl. Not o plan o1 Survey. ATTACHMENT# f-TO REPORT# PD INFORMATION COMPILED FROM APPLICANTS SUBMITTED PLAN SMARTCENTRES A24/08 & OPA 08-004P !i] G r r r r ~ ` ~ JJ J J J J e It - - ~ ill 11!111!11 i i a a 41111W, WALMART & SOBEYS ~E ~j ~-~l EXPANSION m~ "H+fI+fHHt++H+l+itft{+ AREAS euiiinniliir ~ " 11T Will a ~ N+H+fflf+H+p ° Hi~H~fII+N~Nf++ff++f+l~ IED ` A VAL*Maxr -!Illllil!llllll!l Hill" WflitHt" 111 L. 4 n FF;;; LV Ras MP WAS PROOUCEO Be ME CRr OF PCKERAVG. AMN/NG k OLYELOPAW OEPARRIEN/, /NFORANI & SOPFOR/ SERKCa ANY & 7009. ATTACHMENT#_ 3 -TO REPORT# PD G 0 INFORMATION COMPILED FROM APPLICANTS SUBMITTED PLAN SMARTCENTRES A24/08 & OPA 08-004P t A V N ti D r IT 111111111111111111 117777'~ P 6 P d 7 it tt y ~ N Li-IIIIIIIIIIIIIIIIIIIIIIIIiiii y 1IIIIIIIIIIIIIIIIIIIIIIillllllllI DIIIIIIIIilllllll Vill n EXPANSION 6 6 AREA. ~Illillllllllllllll illlllIIM,J n dd r~_I_I_ I_I_I 1 1 1 1 1 1 lul I I I I I I I I i I I~~fl r ' ~Illll y y ~t~ I I I I I I I I I I I I I I I~1 SAMS/LOWES N ~ _ 6 h _ r ~Illllllliilllllll~ o ~ a 01111111111111 I®7 e,l A s 0111111111111 ae .09 E BAC MIS .I(1P WAS PR CEO BY THE CITY OF PICRERING. PLANNING I DEVELOPMENT DEPARTMENT, INFORMADON d SUP RT SERNCE . MAY B, 2WY. t° L A LC w SmartCentres Development at - ' Brock Road & Pickering Parkway City of Pickering, Ontario z .ti r.'a _ , . ~ ~ ~ , ,m ter:,. .....w..,.. H IL ~M . e w a 1 0 c~ to m w > SmartCentres '-M BOUSFIELDS twc._ 0 Planning Rationale - SmartCentres Development, Pickering 2008 2 ATTACHMENT#__1_-TO H1= C1V=L$ Job No. 08100 REPORT# PD Z2-02 TABLE OF CONTENTS NOV 1 0 2008 CITY OF PICKERING AND P~ 1 ERTMENT ARTMENT 1.0 INTRODUCTION DEVELOPMMENTT DEP 2.0 THE SITE AND SURROUNDINGS 3 2.1 Subject Site 3 2.2 The Surrounding Area 4 3.0 PLANNING HISTORY 7 4.0 THE PROPOSAL 8 4.1 The Description of the Proposal 8 5.0 POLICYAND REGULATORY CONTEXT 10 5.1 Provincial Policy Statement 10 5.2 Region of Durham Official Plan 10 5.3 City of Pickering Official Plan 12 5.4 Zoning By-law No. 3036 14 5.5 Proposed Amendments 15 6.0 PLANNING ANALYSIS 17 6.1 Consistency with the Provincial Policy Statement 17 6.2 Durham Region Official Plan 17 6.3 The Pickering Official Plan 17 6.4 Site Suitability 18 6.5 Land Use Compatibility 18 6.6 Traffic and Services 18 6.7 Urban Design and Landscaping 18 7.0 CONCLUSION 20 LIST OF FIGURES Figure 1 Aerial Photo 3 Figure 2 Site Plan 8 Figure 3 Durham Official Plan Designation 11 Figure 4 Pickering Official Plan Designation 12 Figure 5 Zoning 14 W BOUISFIELDS INC. Planning Rationale - SmartCentres Development, Pickering November 2008 ATTACHMENT#_'~t-Tp REPORT# PD 7 3 1.0 INTRODUCTION This Planning Rationale report has been prepared in support of applications by SmartCentres, on behalf of Calloway REIT (Pickering) Inc. ("Calloway") and First Simcha Shopping Centres (the Owners), to amend the City of Pickering Official Plan and Zoning By-law in order to permit the expansion of the SmartCentres commercial development ("SmartCentres Development") located at the northeast corner of Brock Road and Pickering Parkway ("the Site"). Specifically, the applications would permit an expansion to the existing Wal-Mart and Sobeys stores. Wal-Mart would expand from its current size of 12,103 square metres (approximately 130,276 square feet) to 15,329 square metres (approximately 165,000 square feet), of which approximately 3,391 square metres (36,500 square feet) will be used for the display, cold storage and preparation of food. The applications would also facilitate a future expansion of the Sobeys supermarket, from its current 4,516 square metres (approximately 48,610 square feet) to 5,445 square metres (approximately 58,610 square feet). Including both the proposed Wal-Mart expansion of 3,226 square metres and the potential Sobeys expansion of 929 square metres, the SmartCentres Development is proposed to be expanded by a total of 4,155 square metres, resulting in a total area of 53,155 square metres. These expansions have always been intended, and the layout of the site plan for the original approvals provided for the extension of the buildings. The Planning Rationale concludes that the proposed Official Plan Amendment and rezoning would be consistent with the Provincial Policy Statement (2005) and would address the requirements of the Region of Durham Official Plan and City of Pickering Official Plan. From a land use planning perspective, the report concludes that: • The proposed store expansions would result in more efficient use of land and intensification on lands that have already been designated and zoned for commercial purposes. • The property size and configuration is suitable to accommodate the proposed store expansions. • The proposed store expansions would be compatible with adjacent land uses and would not result in any adverse built form impacts. • Improved pedestrian and landscaped areas will contribute to an overall amenity of the Site. • The proposed Wal-Mart and Sobeys expansions would enhance the vitality and viability of the retail market in Pickering and increase its attractiveness as a retail destination. • Based on the findings of the market impact analysis by Tate Economic Research Inc., the expansions will not unduly affect the viability of any lands designated IJO BOUSFIELDS Irv C. ATTACHMENT_-! ---T~ Planning Rationale - SmartCentres Development, Pickering November 2008 OEPORT# PD..~.C or developed for the retailing of goods and services in the City of Pickering, and will not adversely affect the planned function of the Downtown Core, the Community Nodes, and nearby Main Central Areas in other municipalities in the Region. Based on the foregoing, it is our opinion that the proposed Official Plan Amendment and rezoning are appropriate and desirable and should be approved. BOUSFIELDS INC. 2 ATTACHMENT#~TO TTACH N ~ l ° Q t3 Planning Rationale - SmartCentres Development, Pickering November 2008 A REPORT# PD 85 2.0 SITE AND SURROUNDINGS 2.1 Subject Site The Site is located on the northeast corner of Brock Road and Pickering Parkway in the City of Pickering (Figure 1, Aerial Photo). The site is generally rectangular in shape and has a lot area of 19.5 hectares (48.19 acres). Several other commercial buildings are located on this property including Sam's Club, Winners, Toys `R' Us and PetSmart. Figure 1 -Aerial Photo FINCH AVENUE • BANBURY CT. i • • • PICKERING PARKWAY • 00 '40~i The existing Wal-Mart store is located at the rear of the property, on the southeast corner of the Site. Parking is located primarily to the west of the store, with additional parking located to the north of the store. BOUSFIELDS INC. 3 ATTACHMENT#_~L_TO iEPORT# PD- 9 G Planning Rationale - SmartCentres Development, Pickering November 2008 t!• 86 0- Y Wal-Mart located on the east side Sobeys located on the north-west of the SmartCentres Site corner of the SmartCentres Site The existing Sobeys store is located towards the front of the property, on the northwest corner of the Site. Parking is located to the south of the Sobeys building, with a small amount of parking also located to the east of the store. The Site has driveway access from Pickering Parkway and Brock Road, with Brock Road providing access to Highway 401. 2.2 The Surrounding Area The Site is located within a commercial node centred on the intersection of Brock Road and Kingston Road, within Village East of the South Pickering Urban Area. To the north of the Site, is a service station located on the southeast corner of Kingston Road (Highway 2) and Brock Road. East of the service station is the Brockington Plaza including a No Frills supermarket. Kingston Road is primarily a retail and service commercial - corridor, which offers a variety of retail plazas, freestanding retail n ,.w and service commercial uses. Retail Stores located in Brockington Plaza Petro Canada Station located on the south-east corner No Frills located north of the subject lands in of Kingston Road and Brock Road Brockington Plaza W BOUSFIELDS INC. 4 ATTACH MENT#~a.._..w ~C Planning Rationale - SmartCentres Development, Pickering November 2008 8? " To the east, is a low-rise residential neighbourhood including semi-detached and single-detached dwellings, and a townhouse development fronting onto the south side of Kingston Road. A neighbourhood park, named Beechlawn Park, is located on the western edge of the residential area. Further east, running along the west side of Notion Road are lands designated for employment uses. The southern portion of these lands has Beechlawn Park adjacent to the proposed Wal-Mart not been developed, however, the northern expansion portion consists of industrial buildings with outdoor storage. Notion Road forms the eastern boundary of the City, separating Pickering from the Town of Ajax. 1 ia® Townhouses development on the Detached home in the Millwork Home Centre located south side of Kingston Road neighbourhood east of subject within the employment area of property Notion Road To the south, on the south side of Pickering Parkway, north of Highway 401, is a Canadian Tire store, the Pickering Annex retail centre (formerly the Pickering Home and Leisure Centre) that offers a variety of home improvement and home furnishing type stores. To the south of Highway 401, are industrial buildings which include outdoor storage. t t , i~ I~eM The Canadian Tire store located on the south- Retail stores within the Pickering Home and east corner of Pickering Parkway and Brock Leisure Centre Road W BOUSFIELDS INC. 5 ATTACHMENT#! TO Planning Rationale - SmartCentres Development, Pickering REPORT# PD 19 November 2008 To the west of the subject lands, on the west side of Brock Road, is mix of detached, semi- detached, townhouse and apartment dwellings as well as several neighbourhood parks including Denmar Park, Village East Park and the Diana Princess of Wales Park. Village of East Park as well as Chris Graham Fields, adjacent to Diana Princess of Wales Park I Detached homes within the neighbourhood on the Apartment buildings located along west side of Brock Road Denmar Road abutting Brock Road BOUSFIELDS INC. 6 ATTACHMENT 0 REPORT# PD- 1-2-:_0 J Planning Rationale - SmartCentres Development, Pickering November 2008 89 3.0 PLANNING HISTORY In 2001, First Simcha Shopping Centres Limited, the predecessor-in-title to Calloway and SmartCentres, submitted applications for a Regional Official Plan Amendment and a Pickering Official Plan Amendment to permit the development of a variety of large format and specialty retail uses on lands in the northeast quadrant of Brock Road and Highway 401, including the Site and the lands to the south, the former Pickering Home & Leisure Centre, which is now anchored by Canadian Tire and the Pickering Annex. Region of Durham Official Plan Amendment 114 redesignated the Site from Regional Node `A' to Living Areas on Map A4 - Regional Structure to permit specialty retailing. Pickering Official Plan Amendment 9 ( "OPA 9") redesignated the Site from Regional Node 2 to Specialty Retailing Node on Schedule "I" - Land Use Structure, and added policies for the Specialty Retail Node, including a maximum aggregate gross leaseable floor area of 49,000 square metres for lands north of Pickering Parkway (the Site), a definition for "large format discount stores", and other policies which will be discussed later in this report. These amendments were implemented by By-law 6011/02, which amended By-law 5511/99 by increasing the maximum gross floor area for all uses to 49,237 square metres (529,982.66 square feet) and decreasing the minimum floor area for large format food stores to 4,515 square metres (48,599.06 square feet). The centre to the south anchored by Canadian Tire and the Pickering Annex is regulated by Zoning By-law No. 3036, as amended by By-law 5623/00 and By-law 6549/05. The By-law limits the amount and range of Special Purpose Commercial uses and restricts unit size and form. The subject applications propose to amend the City of Pickering Official Plan and Zoning By-law in order to permit the expansion of Wal-Mart and the future expansion of Sobeys. BOUSFIELDS INC. 7 ATTACHMENT#_rL REPORT# PD 19 - ` Planning Rationale - SmartCentres Development, Pickering November 2008 90 4.0 THE PROPOSAL 4.1 Description of the Proposal The applications seek approval for an approximately 3,226 square metre (approximately 34,724 square foot) expansion to the existing Wal-Mart store and a future 929 square metre (approximately 10,000 square foot) expansion to the existing Sobeys store. (Figure 2, Site Plan) Figure 2 - Site Plan oDI'- 1- '1 _ II SITE STATISTICS: A TOTAL SITE AREA : 194,959.2 SM = 19.49 HA CURRENT SITE STATISTICS i ~i SHOPPING CENTRE BUILDING AREA: 49,000 SM WALWART BUILDING AREA: 12,103 SM l~ F Z a SOBEY'S BUILDING AREA 4,516 SM ! - a POST EXPANSION SITE STATISTICS PROPOSED WAL-MART EXPANSION BUILDING AREA: 3,226 SM TOTAL WAL-MART BUILDING AREA POST EXPANSION: 15,329 SM PROPOSED SOBEY'S EXPANSION BUILDING AREA: 929 SM ® ®i~ 'i 3 TOTAL SOBEY'S BUILDING AREA POST EXPANSION: 5,445 SM TOTAL SHOPPING CENTRE BUILDING AREA POST EXPANSION: 53,155 SM ftONHIINIHH PARKING STATISTICS: TOTAL CURRENT PARKING PROVIDED: 2,655 CARS (5.42/100 SM) t TOTAL PARKING POST EXPANSION: 2,582 CARS (4.861100 SM) I ® Proposed . -a. ~ Expansion Area : ~ e4}~HHHHINHN~ I The Wal-Mart expansion is to be located at the northern end of the existing Wal- Mart building on an area currently occupied by parking. The total gross floor area of the expanded Wal-Mart will be approximately 15,329 square metres (approximately 165,000 square feet). The proposed expansion consists of additional floor area for the.display, cold storage and preparation of food, and a small increase in the floor area for other uses as a result of the relocation of the existing "pantry" area to the new expansion area. The future expansion to the Sobeys store would be located on the eastern side of the BOUSFIELDS INC. 8 ATTACHMENT#TO REPORT# PD 9 U Planning Rationale - SmartCentres Development, Pickering November 2008 existing store on an area currently occupied by parking. The total gross floor area of the expanded Sobeys would be 5,445 square metres (approximately 58,610 square feet). The total gross floor area of all buildings on the site after both expansions would be 53,155 square metres (approximately 572,156 square feet), an increase of approximately 4,155 square metres (approximately 44,726 square feet). Parking for the expanded SmartCentres Development will total 2,582 parking spaces, translating to a ratio of 4.8 parking spaces per 100 square metres of gross leaseable floor area. No change is proposed to the existing driveway access. The loading area located on the north side of the Wal-Mart building is to be reconfigured to allow for the new expansion. BOUSFIELDS INC. 9 ATTACHMENT 0 1EPORT# PD Planning Rationale - SmartCentres Development, Pickering November 2008 92 5.0 POLICY AND REGULATORY CONTEXT 5.1 Provincial Policy Statement The Provincial Policy Statement came into effect as of March 1, 2005. The proposal is consistent with the policy direction expressed in the Provincial Policy Statement to build strong communities by promoting efficient land use and development patterns. In particular, Policies 1.1.1 (a) and (b) provide that healthy, livable and safe communities are sustained by: a) promoting efficient development and land use patterns which sustain the financial well-being of the Province and municipalities over the long term b) accommodating an appropriate range and mix of residential, employment (including industrial, commercial and institutional uses), recreation and open space uses to meet long-term needs Policy 1.7.1 provides that, Long-term economic prosperity should be supported by: c) maintaining and, where possible, enhancing the vitality and viability of downtowns and mainstreets With respect to employment uses, Policy 1.3.1 provides that: Planning Authorities shall promote economic development and competitiveness by: a) providing for an appropriate mix and range of employment (including industrial, commercial and institutional uses) to meet long-term needs; b) providing opportunities for a diversified economic base, including maintaining a range and choice of suitable sites for employment uses which support a wide range of economic activities and ancillary uses, and take into account the needs of existing and future businesses; c) planning for, protecting and preserving employment areas for current and future uses. 5.2 Region of Durham Official Plan The Durham Regional Official Plan was approved by the Minister of Municipal Affairs and Housing on November 24, 1993. Official Plan Amendment 114 was adopted by Regional Council on September 13, 2006 and is in full force and effect except for certain policies that remain under appeal that do not affect the Site. The current consolidated version of the Regional Official Plan is dated June 5, 2008. BOUSFIELDS INC. 10 ATTACHMENT#TO i;EPORW PD -flPlanning Rationale - SmartCentres Development, Pickering November 2008 Q3 General Policies The overall direction of the Durham Official Plan encourage developments that utilize land efficiently, and increase opportunities to create complete communities which balance growth in population with growth in employment. Section 3 of the Plan provides the goals and policies of the Region with respect to economic development. Policy 3.1.1 describes the goal to develop the Region to its fullest economic potential. Policy 3.2.1 states that the Region shall foster a favourable climate for the economic development and shall promote the Region as a prime location for new business investment. Durham Region has established a target ratio of jobs to population of 50% (1 job for every 2 persons) to support the development of complete communities. The population of Pickering is targeted to reach 145,000 people by 2021 with 38,000 jobs in employment areas, 10,000 jobs in major office developments and 24,000 other employment related to population. Land Use Designation The Site is a part of the Urban System and is designated Living Areas on Schedule EA Map A4" Regional Structure of the Durham Official Plan (Figure 3, Durham Official Plan Designation). Figure 3 - Durham Official Plan Designation o LEGEND URBAN SYSTEM URSAN AREA BUUNOAPY _ UR84N 1PE.1S PARY U - - DEFERRED Q (R-ONALCENTRE REGIDNAL c-1 DDR -ROAREAS EMPLOYMENT AREAS ARE\S DEVELOPABLE ON AREAS DEVELOPABLE ON • SUL, ART IAL MUNICIPPL MUNICIPAL -ER SYSTEMS 8 PRI ERV CES SYSTEVATE -SIE U SPOSAL Ili J~ I.IS MOSTON RD AREASOEIELDPABLEGN II,, APEASDE--;'ABLE ON ATE'vufl L53 IN'O _ rAt ;I VRI iE NELL SB PRIVATE SENER SYSTEMS NASTE DISPOSAL SYSTEMS - 9 MLMICIPAL SERVICE f t _ ~ GREENLANOS SYSTEM •'`,-y~..r-.....-.~_ MAJOR OPfN Onx RIpCES SPACE AREAS MORAINE AREAS wnrERFRONTA- D 'h ~n unn RDOES-NE BOUNDARY ''emu GREENBELT YOUNUARv . RECRE\T ONAL'i0URI5T A A'ATERFRUNT 0.ACE .f'A_~!`~ _ _ \ L~ ACT /iv NODE BAYLYST - OPEN SPALEL-AGE AAIERFRONI0- TRANSPORTATIONSYSTEM - SEE SCHEDULE CFORDESIONAVONS - S I.EFOLLOWNG'S S- SELECTIVELY. FOR EASEJF;NTERPRETAIION JEOTHER OES GNAT DNS ONLY SUBJECT \E-_STIN~ F4Tll.R_~ t 4RTERIAL ROAD jA 1111.. FREN-.00. -4. PROPERTY 1 GO PAL - - - - • DO STATION • Section 8.2 of the Durham Official Plan provides the general policies applicable to Urban Areas. These policies encourage compact urban form in Urban Areas to promote transit-supportive Urban Areas and accommodate the Region's population and employment targets, as well as a mixture of uses in appropriate locations, with particular consideration given to Centres and Corridors and the application of good W BOUSFIELDS INC. 11 ATTACHMENT#TO Planning Rationale - SmartCentres Development, Pickering November 2008 REPORT# PD _ ~ 94 urban design principles. Policy 8.3.7 provides that commercial uses are to be concentrated in locations that are supportive of the function of Regional and Local Centres and Corridors. Brock Road and Kingston Road are designated on Schedule `A Map `A4" as Regional Corridors. Section 8.3.9 states that a Regional interest is invested in any commercial proposal of 56,000 square metres or larger, on an individual or cumulative basis, or any commercial proposal that would have the potential to negatively impact the planned function of a Regional Centre. Section 8.3.10 provides that a retail impact study is required for any retail commercial development proposal that is of Regional interest. This provision does not apply to these applications as the expansions would result in a cumulative development of less than 56,000 square metres. 5.3 City of Pickering Official Plan The City of Pickering Official Plan came into force on October 21, 1997 (the "OP") save and except for those parts deferred or appealed to the Ontario Municipal Board. The Official Plan now incorporates OPA 9, discussed above. The Site is designated Mixed UseAreas. The Mixed Use Areas designation incorporates a number of subcategories including Local Nodes, Community Nodes, Mixed Corridors, Specialty Retailing Node and Downtown Core. The Site is subcategorized as a Specialty Retailing Node on Schedule "I" Land Use Structure (Figure 4, Pickering Official Plan Designation). Figure 4 - Pickering Official Plan MIXED USE AREAS Designation LOCAL NODES COMMUNITY NODES MIXED CORRIDORS ® SPECIALTY RETAILING NODE ® DOWNTOWN CORE EMPLOYMENT AREAS GENERAL EMPLOYMENT Q PRESTIGE EMPLOY- EN-ED MIXED EMPLOYMENT URBAN RESIDENTIAL. AREAS LOW DENSITY AREAS ® MEDIUM DENSITY AREAS HIGH DENSITY AREAS 0 BOUSFIELDS INC. 12 ATTACHMENT#? TO Planning Rationale - SmartCentres Development, Pickering November 2008 REPORT# PD - 9 J The policies applying to the Mixed Use Areas designation are included in Part II, Section 3.6 of the Official Plan. Policy 3.6 a) provides that Mixed Use Areas are intended to have the widest variety of uses and highest levels of activity in the City. The Specialty Retailing Node designation permits following uses: • Hotels; • Special Purpose Commercial uses such as: large format retailers (including large format food stores and large format discount stores); retail warehouses; membership clubs; theme and/or specialty retailers; automotive uses; and, ancillary retailing of other goods and services including restaurants; • Limited offices; • Community, cultural and recreational uses; and • Limited residential development at higher densities as an integral part of an overall development scheme. Policy 3.6 g) outlines policies applying to the Specialty Retailing Node. Policy 3.6 g) (i) provides that, prior to zoning for significant retail floor space, a retail impact study is required. The retail impact study should provide that the addition of such floor space will not adversely affect the planned function of the Downtown Core, the Community Nodes and nearby main Central Areas. For lands north of Pickering Parkway, a maximum aggregate gross leaseable floor area of 49,000 square metres (527,431.61 square feet) is established for all special purpose commercial uses. (Policy 3.6 g) (iii)). Policy 3.6 g) (h) defines `Large Format Discount Stores' to include a discount department store as defined by Statistics Canada, such as but not limited to Zellers and Wal-Mart, engaged in general merchandising of a wide range of commodities and services which may include but is not limited to apparel, hardware and household goods, garden supplies, automotive supplies, leisure, pet and drug items, but shall not include a major department store as defined by Statistics Canada, such as but not limited to Eaton's, Sears, and The Bay. Section 11.2 (e) of the OP requires that any proposal to develop or redevelop the Specialty Retailing Node situated in the Village East Neighbourhood (which includes the Site) conform to the Specialty Retailing Node Development Guidelines. Guidelines that particularly apply to the proposed store expansions include: • Encouraging built forms, massing and architectural details that create cohesive and unified development, and are architecturally compatible with each other and the surrounding area • Encouraging designs that present continuous facades along major streets and express design elements such as floor and ceiling levels, window heights, columns, and internal divisions to assist in defining human scale and providing BOUSFIELDS INC. 13 ATTACHMENT#~TO Planning Rationale - SmartCentres Development, Pickering November 2008 REPORT# PD 96 visual interest • Discouraging the placement of building functions, which do not directly support public activities, such as loading bays, utility rooms, and other building mechanical features (e.g. exhaust grills) from being located on building facades adjacent to streets Section 1.4 of the Guidelines provides development standards for building design and reads, "In order to ensure that the Specialty Retailing Node evolves in a manner that benefits its prominent location, emphasis must be placed on creating a highly visible, attractive and active atmosphere". New development and redevelopment is to present a cohesive image for the node which utilizes similar massing, and shared design elements among buildings which are in close proximity. Section 1.6.1 provides more detailed design guidelines for the North Precinct, which consists of the lands within the Specialty Retailing Node, north of Pickering Parkway. Special design requirements specify that any building located at the northwest corner of the precinct and visible from the intersection of Brock Road and Kingston Road should terminate the view in an appropriate manner through architectural detailing and possibly through signage. Loading bays, refuse containers and other service facilities are not be permitted in this area if they are visible from the intersection of Brock Road and Kingston Road. 5.4 Zoning By-law No. 3036 By-law 5511/99 was approved by the Ontario Municipal Board on June 11, 1999 and amended by By-laws 5692/00 and 6011/02. These by-laws amended Zoning By-law 3036 to designate the Site "(H-2)MU-SRN" (Figure 5, Zone Category). Figure 5 - Zone Category 1 OS-HL „..P ~ - R3 ar 02-1 nJ R3 MD-H6 R3 - M1 R3 • -H•M Al t R3 R3 W LCA . ` - - ~RHs 11) A - LCA7 s i S R3 - i" RM1 G19 S - M78 LOA-6 NP I L M16 _ r F, r 1 ~ll' SPGIICA(E I ll..~~ fr..l M1 „ i A MUSRN-1 !7] RMII :M:11 - M1 M1.2 M1 i BOUSFIELDS INC. 14 ATTACHMENT# TO / Planning Rationale - SmartCentres Development, Pickering November 2008 REPORT# PD 97 The (H-2) MU-SRN zone category permits a wide variety of commercial uses including, but not limited to: • Assembly hall • Business office • Commercial club • Commercial-recreational establishment • Financial institution • Discount department store • Food store • Place of amusement or entertainment • Professional office • Restaurant type F • Retail store "Discount Department Store" means, "a discount department store as defined by Statistics Canada, such as but not limited to Zellers and Wal-Mart, engaged in general merchandising of a wide range of commodities and services which may including but is not limited to apparel, hardware and household goods, garden supplies, automotive supplies, leisure, pet and drug items and toys". `Food Store' means a building or part of a building in which primarily food produce is stored, offered and kept for retail sale to the public and in which items or merchandise of day-to-day necessity may be stored, offered and kept for retail sale to the public. The zone regulations specify a maximum aggregate floor area for all uses of 49,237 square metres (529,982.66 square feet) and minimum floor area for a discount department store of 9,000 square metres (96,875.19 square feet). Special zone regulations permit a maximum of one food store with a floor area of greater than 700 square metres (7,534.74 square feet) on the Site. However, a food store with a floor area greater than 300 square metres (3,229.17 square feet) and less than 700 square metres (7,534.74 square feet) is permitted subject to zone regulations. Parking is required to be provided and maintained at a minimum rate of 5.0 parking spaces for each 100 square metres or part thereof of gross leasable floor area. 5.5 Proposed Amendments These applications seek an amendment to the City of Pickering OP to increase the maximum permitted aggregate floor area from 49,000 square metres (527,431.61 square feet) to 53,155 square metres (572,156 square feet) for all uses on the Site. The applications also propose an amendment to the City of Pickering Zoning By-law 3036 in order to increase the maximum aggregate floor area for all uses from 49,237 square metres (529,982.66 square feet) to 53,155 square metres (572,156 square W BOUSFIELDS INC. 15 ATTACHMENT#__~_TO Planning Rationale - SmartCentres Development, Pickering November 2008 REPORT# PD 98 feet). A new site-specific parking standard of 4.8 parking spaces for each 100 square metres of gross leaseable floor area is also requested compared to the by-law standard of 5.0 spaces. As well, it is proposed that the zoning by-law amendment include a site specific definition for "Department Store" as follows: a retail commercial establishment where a wide range of merchandise is sold, including but not limited to: general merchandise, drugs and medicines, food, wine, lottery products, and garden centre; and where a wide range of services may be provided, including but not limited to: photographic services, restaurant, including take out and drive through facilities, optical services, medical, dental and pharmaceutical services, banking, financial and real estate services, telecommunications services, automotive rental, service and repair, gas bar, car wash, children's amusement facility, travel agency, and personal services." In all other respects, the provisions of the Official Plan and Zoning By-law remain appropriate. BOUSFIELDS INC. 16 ATTACHMENT#TO Planning Rationale - SmartCentres Development, Pickering November 2008 REPORT# 99 6.0 PLANNING ANALYSIS 6.1 Consistency with the Provincial Policy Statement The proposed development is consistent with the Provincial Policy Statement (2005). By making more efficient use of a designated and zoned commercial property, the proposed expansion is consistent with Policies 1.1.1(a) and 1.1.1(b). Based on the conclusions of the Retail Market Demand and Impact Analysis, the proposed expansion will have no negative impacts on the vitality or viability of the Downtown (Policy 1.7.1(b)). 6.2 Durham Region Official Plan The proposed development is consistent with the Durham Region Official Plan and a Regional Official Plan Amendment is not required. 6.3 The Pickering Official Plan The proposed expansion of the SmartCentres Development, from a land use point of view, meets the policies of applicable Mixed Use Areas designation in the Official Plan and more specifically, the Subcategory of Specialty Retailing Node. The Plan places an emphasis on minimum gross leaseable floor areas for lands in the Specialty Retailing Node north of Pickering Parkway. Expansions of existing stores, as proposed, would be consistent with this policy. Section 3.6 (g)(i) of the Official Plan requires the submission of a retail impact study prior to zoning for significant retail floor space, justifying that the addition of such floor space will not adversely affect the planned function of the Downtown Core, the Community Nodes and nearby main Central Areas in other municipalities in the Region. In addition, Section 15.14 of the Plan requires a retail impact study for proposed expansions in excess of 2,500 square metres to demonstrate that such additional floor space will not unduly affect the viability of any lands designated or developed for the retailing of goods and services. A Retail Market Demand and Impact Analysis has been undertaken by Tate Economic Research Inc., to satisfy these policies. Both "Food Oriented Retail" (FOR) and "Non Food Oriented Retail" (NFOR) components were analyzed. The Retail Market Demand and Impact Analysis concludes that the sales transfers resulting from the expansions will not result in the closure of existing department stores or other NFOR stores in the primary zone, or of any FOR stores such as supermarkets. Further, the expansions will not unduly affect the viability of any lands designated or developed for the retailing of goods and services in the City of Pickering, and will not adversely affect the planned function of the Downtown Core, the Community Nodes, and nearby Main Central Areas in other municipalities in the Region. BOUSFIELDS INC. 17 ATTACHMENT# TO Planning Rationale - SmartCentres Development, Pickering November 2008 REPORT# PD / 2 -2 100 The Retail Market Demand and ImpactAnalysis also concludes that the FOR component of the proposed Wal-Mart expansion will provide an opportunity to increase Pickering's attractiveness as a retail destination. The proposed expansion provides an opportunity to enhance the vitality and viability of the retail market in the City of Pickering. In addition, the Wal-Mart expansion will introduce a new food store "banner". 6.4 Site Suitability The Site is suitable for the proposed expansions. The Site size and configuration allow for the proposed store expansions, while maintaining existing circulation patterns and adequate setbacks to residential areas to the east. In this regard, it is noted that the site plan submitted with the original applications identified the future expansion of both Wal-Mart and Sobeys. 6.5 Land Use Compatibility The proposed expansions would be compatible with existing adjacent land uses. The expansions will take place within a developed commercial area. As noted, both expansions have been anticipated and planned for in the overall design of the centre. The existing Wal-Mart store is located adjacent to a residential area. The proposed expansion will maintain the current setback from the residential area. The loading will be relocated from the east side of the store to the north end of the store where it will be further removed from the residential uses and respect the 20 metre setback. 6.6 Traffic and Services The site is well serviced by a number of access points. A reduction in the overall parking standard from 5.0 spaces per 100 square metres to 4.86 spaces per 100 square metres of Gross Leasable Area (GLA) is proposed. This results in an overall parking supply of 2,582 spaces, where the By-law would require that 2,658 spaces be provided. Taken over the large pool of parking for the entire site, and given that the expansions are to existing stores which would generate fewer new car trips than new stores, this modest parking standard adjustment is considered minor and supportable. Adequate servicing exists for the expansions. 6.7 Urban Design and Landscaping The design guidelines of the Official plan encourage attractive, architecturally compatible and cohesive development, with servicing facilities not visible to streets or key intersections. The proposed landscape improvements and urban design elements listed below will enhance the attractiveness of the site: • The pedestrian walkway along the front of the Wal-Mart will be widened and BOLISFIELDS INC. 18 Planning Rationale - SmartCentres Development, Pickering November 2008 ATTACHMENT#-L-TO REPORT# PD _ v 101 include improved landscaping. • The expanded Wal-Mart will include an upgraded facade in terms of colour and articulation. • The attractiveness of the overall centre will be enhanced by additional shrub and tree plantings. BOUSFIELDS INC. 19 Planning Rationale - SmartCentres Development, Pickering November 2008 ATTACH M ENT #__i____-TO EPORT# PD f ±_v 1 0 2 7.0 CONCLUSION The proposed Official Plan Amendment and rezoning address the applicable requirements of the Durham Regional Official Plan and the Pickering Official Plan and are consistent with the Provincial Policy Statement (2005). Based on the foregoing, it is our opinion that the proposed official plan amendment and rezoning are appropriate and desirable, and should be approved. BOLISFIELDS INC. 20 ATTACHMENT# -S TO REPORT# PD D 103 Cif o¢~ -AR I KERIN INFORMATION REPORT NO. 03-09 FOR PUBLIC INFORMATION MEETING OF February 2, 2009 IN ACCORDANCE WITH THE PUBLIC MEETING REQUIREMENTS OF THE PLANNING ACT, R.S.O. 1990, chapter P.13 SUBJECT: Official Plan Amendment Application OPA 08-004/P Zoning By-law Amendment - A 24/08 SmartCentres (Wal-Mart and Sobeys) 1899 Brock Road (Part of Lot 18, Concession 1) City of Pickering 1.0 PROPERTY LOCATION AND DESCRIPTION - the subject property is located at the northeast corner of Brock Road and Pickering Parkway, a property location map is provided for reference (see Attachment #1); - the subject property is approximately 19.5 hectares (see Applicant's Submitted Plan Attachment #2); - a shopping complex consisting of a variety of retail store types and sizes within stand-alone or multi-unit structures occupies the site; - the surrounding land uses are: north - service station, Brockington Plaza on the south side of Kingston Road; south - Pickering Parkway, Canadian Tire and the Pickering Annex Retail Centre; west - residential development consisting of a mix of semi-detached, townhouse, apartment dwellings and several neighbourhood parks; east - a low-rise residential development with semi-detached, detached and townhouse dwellings and Beechlawn Park. ATTACHMENT# - TO Information Report No. 03-09 REPORT# PD Page 2 1, C 4 2.0 APPLICANT'S PROPOSAL - the applicant has requested to amend the official plan and zoning by-law to permit the expansion of the commercial development; - approval of the requested amendments would permit an expansion to the existing Wal-Mart and Sobeys stores; - Wal-Mart would expand on its north side from its current size of 12,103 square metres (approximately 130,276 square feet) to 15,329 square metres (approximately 165,000 square feet), of which approximately 3,391 square metres (36,500 square feet) will be used for display, cold storage and preparation of food; - a potential future expansion of Sobeys supermarket (on the east side) from its current 4,516 square metres (approximately 48,610 square feet) to 5,445 square metres (approximately 58,610 square feet) would also be facilitated through the approval of the requested amendments; - including both the proposed Wal-Mart expansion of 3,226 square metres and the potential Sobeys expansion of 929 square metres, the SmartCentres Development is proposed to be expanded by a total of 4,155 square metres, resulting in a total area of 53,155 square metres; - parking for the development with the expanded Wal-Mart and Sobeys will total 2,582 parking spaces resulting in a ratio of 4.8 parking spaces per 100 square metres of gross leasable floor area; - the approved site plans for the SmartCentres Development include notations that indicate future expansions of both Wal-Mart and Sobeys and further qualify the parking in the expansion areas as "temporary". 3.0 OFFICIAL PLAN AND ZONING 3.1 Durham Regional Official Plan - the Regional Plan designates the subject property Living Area along a Regional Corridor (Brock Road); the Plan promotes the concentration of commercial uses in locations that are supportive of the function of Regional and Local Centres and Corridors; the proposal complies with the Durham Regional Official Plan; 3.2 Pickering Official Plan - the City of Pickering Official Plan designates the subject property Mixed Use Area - Specialty Retailing Node; - these areas are intended primarily for the highest concentration of activity in the City and the broadest diversity of community services and facilities; - the Plan requires the submission of a retail impact study for this development; ATTACHMENT# -5 TO Information Report No. 03-09 REPORT# PD 9'-D 9 Page 3 X05 - the applicant requests to amend the Pickering Official Plan to permit an increase to the maximum aggregate floor area from 49,000 square metres to 53,155 square metres; 3.3 Zoning By-law 3036 - the subject property is currently zoned '(H-2) MU-SRN'- Mixed Use - Special Retail Node Zone, - the applicant requests to amend the existing zoning to permit an increase to the maximum aggregate floor area from 49,237 square metres to 53,155 square metres and to reduce the site specific parking standard from 5.0 spaces per 100 square metres of gross leasable floor area to 4.8 spaces per 100 square metres of gross leasable floor area. 4.0 RESULTS OF CIRCULATION 4.1 Resident Comments - none received to date; 4.2 Agency Comments - none received to date; 4.3 City Department Comments - none received to date; 4.4 Staff Comments In reviewing the application to date, the following matters have been identified by staff for further review and consideration: • reviewing the retail impact study, currently also being peer-reviewed; • ensuring that the proposed development is compatible with and sensitive to existing surrounding development, including traffic, noise, level of activity, scale and intensity of the uses; • reviewing the application in terms of its level of sustainable development components; • reviewing the application in terms of the constraints and benefits the proposed expansion will have on both the subject property and on the surrounding community; • reviewing that adequate information has been provided, that technical requirements are met and that the proposed development is appropriate at this location. Information Report No. 03-09 REPORT#ATTACHMENPDT#/ 9 - s 0 TO Page 4 106 5.0 PROCEDURAL INFORMATION - written comments regarding this proposal should be directed to the Planning & Development Department; - oral comments may be made at the Public Information Meeting; - all comments received will be noted and used as input in a Planning Report prepared by the Planning & Development Department for a subsequent meeting of Council or a Committee of Council; - if you wish to reserve the option to appeal Council's decision, you must provide comments to the City before Council adopts any by-law for this proposal; - if you wish to be notified of Council's decision regarding this proposal, you must request such in writing to the City Clerk. 6.0 OTHER INFORMATION 6.1 Appendix No. I - List of neighbourhood residents, community associations, agencies and City Departments that have comments on the applications at the time of writing report; 6.2 Information Received - Full scale copies of the Applicant's submitted plan and retail impact study are available for viewing at the offices of the City of Pickering Planning & Development Department; 6.3 Company Principal - the owner of the subject property is Calloway REIT (Pickering) Inc. and First Simcha Shopping Centres; - SmartCentres is the applicant c/o Nicole Vicano ORIGINAL SIGNED BY ORIGINAL SIGNED BY Isa James MCIP, RPP Lynda Taylor MCIP, RPP Planner II Manager, Development Review Ucs Attachments Copy: Director, Planning & Development ATTACHMENT# TO Excerpts from City o¢~ REPORT# PD Planning & Development 10 7 A' Committee Meeting Minutes Monday, February 2, 2009 7:30 pm - Council Chambers Chair: Councillor Johnson (1) PART `A' - PLANNING INFORMATION MEETING 3. Official Plan Amendment Application OPA 08-004/P Zoning By-law Amendment A 24/08 SmartCenters (Wal-Mart and Sobeys) 1899 Brock Road (Part of Lot 18, Concession 1), City of Pickering A public information meeting was held under the Planning Act, for the purpose of informing the public with respect to the above noted application. Lynda Taylor, Manager, Development Review gave an outline of the requirements for a Statutory Meeting under the Planning Act. She also noted that if a person or public body does not make oral or written submissions to the City before the by-law is passed, that person or public body are not entitled to appeal the decision of City Council to the Ontario Municipal Board, and may not be entitled to be added as a party to the hearing unless, in the opinion of the Board, there are reasonable grounds to do so. Isa James, Planner II,gave an overview of zoning amendment application A24/08. Roslyn Houser of Goodmans LLP, appeared before the Committee in support of zoning by-law amendment A 24/08. Ms. Houser stated that the expansions to the Walmart and Sobeys stores had been proposed from the beginning and at this time they were ready to expand the Walmart store by approximately 35,000 sq. ft. She noted that the expansion would upgrade the urban design of the store, widen the sidewalk, move the vending machines inside and provide an opportunity to augment the stores sustainability features. Ms. Houser also noted that the expansion to the Sobeys store would come at a later date. No members of the public in attendance at the public information meeting spoke in support or opposition to zoning amendment application A 24/08. Correspondence was received from Steven A. Zakern, Aird & Berlis LLP, Barristers & Solicitors, 181 Bay Street, Suite 1800 , Toronto, ON M5J 2T9, requesting that they be notified of all meetings relating to zoning amendment application A 24/08, on behalf of their client, Loblaws Properties Limited. Correspondence was received from Harry Froussios, Zelinka Priamo Ltd., 5399 Eglinton Avenue West, Suite 202, Toronto, ON M9C 5K6 requesting that they be notified of all meetings relating to zoning amendment application A24/08, on behalf of their client, Bayfield Realty Advisors Inc. 1 .'ll ll uJ uvvJ at vv u.+aaa. au...a va• - ATTACHMENT# TO O ' `REPORT# PD c' April 28, 2009 R E C I Isa'Jam APR 2 9 2009 es, Planner •11 e 'Pla'nning and Development DepartmEnt CITY OF PJCKERIJVC • City of PICICefing PLANNING & DEVELOPMI=NT DEPARTMENT i~. One-The. Esplanade Pickering.'ON. L1V 6K7 The Ragional Muni .paRe: Re longs Revi®W of an.~Application to Amend th r City of ;Pickering, j of Du am., g.. ~ Official-Plan Planni pepatEment File':. OPA 08=004/P. Ise 605 R( SSI ~+ND-ROAD E' Cross Ref.: A.24108 aTM FLdOR Applicant: ' 'Calloway. Reit`Inc: PO eo~ 623 Location: = Part.of•tot i'8, Concession 1 wHIT6'Y ON Li N' BA3 Municipality: ' Cjty of'.Pickering } CANADA , 905.66$-77T1• • - ' , , Fax: 985$66-.62oa . This application has been reviewed. by the Region and, the following comments'; E-mai Planningo., -are offered with respect to compliance with the- Regional Official Plan, delegated cvgion'turham.on.Ga I~ provincial plan review' responsibilities and-the proposed mi,thod of-servicing. www.M+ ion.durham,on.ca The purpose. of-the Officjal:Plan,An endmei nt application is to modify-the provisions A.L. Georgle?f, MGIR.RPP of the 'Mixed..Us&Area-'.Specialty-Retailtng Node" of:the Pickering Official Plan by Comm sloner of Planning , increasing the maximum;permitted gross floorareafrom 4e,000 square metres to 53.j 55 square metres. This amendment is required in order to permit expansions ' to the existing Wal-Mart and Sobeys stores. Official Plan Conforml!y ~tl The subject site is designated 'Vying;Area"•in the Durham Regional Official i .Plan. `Comri iercial.uses: in Centres and Corridors are permitted in Uving Areas!. i~ The'subJ'ect'. PropeffY . fronts Brock Road, designated. as a "Regional. Corridor" in i , rridors.shall include residential, ; the Regional:Official Plan;' Regional Co commercial'and se.rvice.area5 with higher "densities, supporting higher order ' transit services "and. featuring a•high degree:,of. pedestrian oriented. design. . ~`1 The Regional 0iiicial :Plan,promotes,the co,ncerltration of co' itimercidl uses'in locations. that are.'su,pportive -of the function of Regional Centres and Corridors: This amiendmer)tto the. City of Pickering'Officia'I..Plan'to permit an increase in ' i . themaximum permitted gross:.floor area .would 'conform to the Regional Official- Plan. . l Provincial Polic Statement: l Policy 11..1• of the PPS states"healthy, liveable and safe cornmunities are sustained by accommodating'an appropriate 'range, and. mix of residential,. employment .(including industrial,. commercial: and. institutional uses), recreational and open spaceuses to meet"long ;term needs. The applicationspropose an- expansion and intensification to commercjal• uses on'this site. The proposal. is consistent with-the PPS.. ~t nce ~ fo~tp~~ ,wlltlos" I ~~®i party ' . ' . loo%'Post consumer 3 Iii `i NYtt-GJ-6UU~) 11:64 Lunnnrn~ui~iv ATTACHMENT__,TO REPORT 09 r; Page 2 Growth Plan for theGreater Golden Horseshoe I A guiding,plinciple off the GrowthPlan, is to support intensification within existing! built-up urban areas. The proposed. amendments to allow c;ommercial . intensification- within an urban area served. by existing. infra ,i;ructure and transit ~ i conform.to•the Growth Plan. Retall Market Dem~irid and Impact Study. -1 'The proposed expansion of commercial floor space •for the Wal-Mart department store and the Sobeys store -was examined .through •a. retaiB impact'study titled, i .'Retail Market~.Demand:and Impact Analysis' dated. Decen~ier 2008 ;prepared by Tate Economic Research Inc." The Study concluded that the expansions to the j stores will not unduly affect the viability of 'any lands designated or developed for the retailing. of goods and. services'in the City of Pickering. ,The proposal would no!f adversely affect-the pianned•function•of the dowintown•core and the nearby'Main Central.'Areas in other municipalities;in.ahe Region. 56 rvicin-q . . .Municipal water supply and sanitarysewerage are available from the existing watermains and ,sanitary•sewers on the. premises. The exi;. Ling, buildings are connected to•fulf •municipal services. . Comments j This application`was reviewed, and is- considered to have, no significant Regional a or Provincial concems.'..In accordance with Regional By-la~iv 11=2000this 'application is •exempt'from Regional approval: i i , Please advise the Commissioner-of Planning of your; Council's decision.:.If -Coun.cil adopts a.n.Amendment; please'forward a-record to, this Department i ~within,15days of the date of adoption;.:This should 'include the following: Two (2)'copies of,the-adopted amendment; A copy, of th.e adoptingby-law; and - I A copy.of the staff.report and any: relevant.rnateriaas: i if you:have any'questions'or concerns; please'call either Rr hard Szarek, Project Planner,. or myself at this Department. Yours truly; i Kai Yaw' •Manager, Plan 'lrnplementation CurrentPlanning h:1- 5lamopa\Pickering120081P-08.00d\comments . " ATTACHMENT## _TO REPORT# PD 12-62 1( I I RION MEMO To: Isa James March 24, 2009 Planner II From: Robert Starr Manager, Development Control Copy: N/A Subject: Site Plan (1899 Brock Road) Part of Lot 18, Concession 1 File: OPA 08-004 P and A 24/08 City of Pickering , We have reviewed the above-noted subject application and have no comments at this time. Any concerns will be reviewed with Site Plan Application. v RS:jlm JADocumentsTevelopment Control\BOBSTARR\memos\applications\OPA\A24 08 1899 Brock Rd..docx City o p,TTACHMENT# 10 REPORT# PD~ ICI PICKERIN MEMO To: Isa James January 15, 2009 Planner II' From: Darrell Selsky Supervisor, Engineering & Capital Works Copy: Division Head, Municipal Property & Engineering Subject: OPA 08-04 P & A24/08 Pickering Commercial Development 1899 Brock Road City of Pickering File: 0:4040 The Municipal Property & Engineering Division are in receipt of the above official plan amendment for the above application. This division provides the following comments: 1. A safe pedestrian access to the plaza is to be provided from Beechlawn Parkas part of the Walmart expansion. The fence along the western limits of the park adjacent to the Walmart is to be repaired as part of the project as well DS:nw MAR-16-2009 MON 09:18 AM veridian FAX NO, P. 02/02 112; ATTACHMENT. /0 Tp RECEIVED REPORT. PDT MAR 1 6 2009 CITY OF PICKERING PLANNING & DEVELOPMENT DEPARTMENT 0 RIEDIA 1 DEVELOPMENT APPLICATION REVIEW PROJ'LCT NAME: Calloway RErr (Pickering Inc, and First Simcha Shopping Centres/Smart Centres ADDRESS/PLAN: 1899 Brock Road MUNICIPALITY: Pickcrin.g REF NO.: A 24/08 & OPA 08.0041) SUBMISSION DATE: January 9, 2009 The following is an overview of the general requirements the Applicant is likely to meel: in order to obtain a complete electrical power supply systei n to this site and within the site where subdivision in some form is involved. 1"he continents below are based on preliminary information only and are subject to revision. In all cases Veridian's stan.da.xd Conditions of Service document sets out: Ilse requirements, terms and conditions for the provision of electric service. 'Phis review does not constitute an Offer to Connect. 1. Veridian has no comment on this application. Technical Reptctientadve: 'Den.:eil Samad Telephone: Ext. 3261 PP/df PAdfrizzell\Development Application Review\Piclcenng\2009\Callow:y RE IT & rust Simcha Shopping Ccnlxes - Sma..rt Centres - 1899 Brocic Road.doc ATTACHMENT#__ L-TO 3 REPORT# PD / 9 " 0 2 )C16h96YVS iron for The Living City February 5, 2009 CFN: 41839.01 BY MAIL AND E-MAIL (ijames@cityofpickering.com) Isa James, Planner II Planning & Development Department Pickering Civic Complex One The Esplanade Pickering, ON L1V 6K7 Dear Ms. James: Re: OPA 08-004P & A 24/08 1899 Brock Rd. Part of Lot 18, Concession 1 Pickering Calloway REIT (Pickering) Inc. & First Simcha Shopping Centres/Smart Centres Thank you for the opportunity to review drawing no. SD-173, Site Plan, prepared by Petroff Partnership Architects, dated November 6, 2008, received by TRCA on January 13, 2009 in support of the above noted Official Plan and Zoning Bylaw Amendment applications. Background The Applicant is proposing expansion of two of the existing commercial buildings. The proposed structures are located within close proximity of the Pickering Town Centre Special Policy Area. The focus of TRCA's review has been on potential flood-proofing requirements for the additions. Flood-Proofing The proposed additions are not located within the flood plain and are therefore not subject to TRCA flood- proofing requirements. Conclusion TRCA staff has no objection to the proposed Zoning Bylaw and Official Plan Amendments. We trust that this is of assistance. Please contact me should you have any further questions. R s, Brian Storozinski, M.E Planner I Planning and Dev opment Tel: 416-661-6600 ext. 5744 BS/ CC: Nicole Vicano, SmartCentres, (via email) Steve Heuchert, TRCA (via email) Larry Field, TRCA (via email) F:\Home\Public0evelopment Services\Durham Region\Pickering\1899 Brock Rd._1.doc Member of Conservation Ontario Any ~ 5 Shoreham Drive, Downsview, Ontario M3N 1S4 (416) 661-6600 FAX 661-6898 www.trca.on.ca ATTACHMENT#L=TO REPORT# PO James, Isa From: James, Isa Sent: March 20, 2009 2:23 PM To: Johnson, Rick, Councillor Cc: Taylor, Lynda Subject: FW: Wal-Mart expansion Hello Councillor Johnson, Further to your request at the public meeting of February 2, 2009 for particulars respecting the local produce that will be sold at the expanded Wal-Mart, we have received the information attached below. Yours truly Isa James, MCIP, RPP Planner II Planning & Development Department City of Pickering Pickering, ON L1V 6K7 T. 905.420.4660 ext. 2194 Toll Free: 1.877.420.4666 F. 905.420.6064 TTY. 905.420.1739 iiames(a)- tyofpickering.com www.citvofpickering.com A Please consider your environmental responsibility think before yots print! www.sustainablepickering.com From: Houser, Roslyn Sent: Thursday, February 12, 2009 10:23 AM To: 'Isa James (ijames@cityofpickering.com)' Cc: 'Christopher Gregory - c4grego'; 'Ornella Richichi (orichichi@smartcentres.com)'; 'Nicole Vicano (nvicano@smartcentres.com)'; Bowman, Carly Subject: Wal-Mart expansion Isa, At the public meeting, we undertook to provide staff with particulars respecting the local produce that will be sold at the expanded Wal-Mart. We can advise that Wal-Mart currently purchases apples, mushrooms, carrots and onions from growers in the Durham area. Obviously, there will be opportunities over time to expand the range of produce sourced in the area, especially as Wal-Mart opens more stores in the region. We hope this is helpful. Roz 1 ATTACHMENT# REPORT# PDT 115 , S .wCentres 700 Applewood Crescent, Vaughan, ON, L4K 5X3 Telephone (905) 760-6200 Fax (905) 760-6201 March 25, 2009 City of Pickering Pickering Civic Complex One The Esplanade Pickering, Ontario L1V 6K7 Attention: Ms. Isa James Planner II Planning and Development Department Re: OPA 08/04 & A24/08 1899 Brock Road File: 0:4040 Dear Ms. James: We are in receipt of a memo from Engineering and Capital Works dated January 15, 2009 and have considered the request for a safe pedestrian access from Beechlawn Park to the First Simcha Shopping Centre, as well as repairing the existing fence between the two properties. There is an existing fence between the park and the shopping centre that has been removed/damaged repeatedly so people may gain access to the shopping centre from this location. There have been many discussions over the years between City Staff and ourselves as to how best resolve this on going problem. We have been very hesitant to provide a permanent access at this location as the access point is in very close proximity to both the Wal-Mart and Sam's Club loading docks. The pedestrian connection would require residents to walk through the loading area of the two major anchors on site. This obviously has the potential of being very dangerous. However, we understand that the City has a strong desire that we provide this connection, notwithstanding our position to-date. Accordingly, please find attached a plan depicting the proposed location of the connection highlighted in green. We have identified the pedestrian connection with pavement markings, which leads to a sidewalk that will be built as part of the Wal-Mart expansion. In addition we will be installing signage warning of danger and to be cautious. 4TTACHMENT#-d-TO REPORT# PO / 9 - 0 5 We have also been asked to review the pedestrian access throughout the site. The attached plan highlights the existing internal pedestrian circulation routes in red. Pedestrian circulation was carefully considered during the initial site plan approval for the development of the centre. Given the layout of the building, drive aisles, internal driveway locations and attempting to maximize landscape opportunities we have provided pedestrian connections that serve the centre and its users well. It has been our observation that customers of the centre easily traverse the centre today. Nevertheless, we have identified an area in the shopping centre that does lack pedestrian circulation. We are proposing to add sidewalk connections in the area highlighted in yellow on the attached plan. We trust you will find this to your satisfaction. Should you require any further information, please do not hesitate to contact the undersigned. Yours Truly, Nic e Vicano Land Development Associate 905-760-6200 ext.7774 C.C. Roslyn Houser, Goodmans LLP Laurie McPherson, Bousfields Inc, -2- TTACHMENW-Y-4 -TO iJEPORT# PIDd 7 James, Isa Subject: FW: Recommendation Report for SmartCentres OPA 004/08 and Rezoning A 24/08 From: James, Isa Sent: May 5, 2009 10:57 AM To: 'nvicano@smartcentres.com' Cc: Taylor, Lynda; Barnett, Tyler Subject: RE: Recommendation Report for SmartCentres OPA 004/08 and Rezoning A 24/08 Thanks for your quick response on this Nicole. I will note SmartCentre's willingness to provide the desired connections as noted in your email in the recommendation report. By copy of this email, I am informing Tyler Barnett to pursue the connections on the Lowe's section of the site through site plan approval. Best regards, Isa James, MCIP, RPP From: nvicano@smartcentres.com [mailto:nvicano@smartcentres.com] Sent: May 5, 2009 10:45 AM To: James, Isa Cc: Taylor, Lynda; Barnett, Tyler Subject: RE: Recommendation Report for SmartCentres OPA 004/08 and Rezoning A 24/08 Isa, Further to your email below, at the appropriate time SmartCentres can agree to construct the extra sidewalk connections as described below, except for the two areas on the Sam's parcel, this should be coordinate with Lowe's through their site plan application to obtain these connections. Please note, due to current site constraints some landscaping with be lost due to sidewalk replacement. Please contact me if you have any further questions, Much Appreciated, Nicole SmartCentres Nicole C. Vicano I Land Development Associate I Phone: 905-760-6200 ext. 7774 1 Fax: 905-760-6202 1 Cell: 416-452- 0594 [ 700 Applewood Cres., Suite 100, Vaughan, Ontario, L4K 5X3 ] "James, Isa" <ijames@cityofpickering.com> To nvicano@smartcentres.com<nvicano@smartcentres.com> cc "Taylor, Lynda" <Itaylor@cityofpickering.com>, "Barnett, Tyler" 05/01/2009 03:57 PM <tbarnett@cityofpickering.com> Subject RE: Recommendation Report for SmartCentres OPA 004108 and Rezoning A 24/08 1 ATTACHMENT#_LY_TO REPORT# P CY Hi Nicole, Further to your letter of March 25, 2009 and email below, we can report that this department has reviewed your proposed sidewalk connections and agrees with all of the proposed new sidewalk locations. However, we would also like to see the main north/south access road provided with a sidewalk along its entire length on the west side so that it connects to the sidewalk on Pickering Parkway and to provide a sidewalk connection from Bainbridge Drive to the north sidewalk adjacent to the former Sam's location and from the southwest corner of the former Sam's location to the sidewalks surrounding the buildings to the east. Please see the attached sketch for clarification. Thank you for your efforts in this regard. Please call me if you have any questions. Isa James, MCIP, RPP From: nvicano@smartcentres.com [mailto:nvicano@smartcentres.com] Sent: May 1, 2009 12:15 PM To: James, Isa Subject: RE: Recommendation Report for SmartCentres OPA 004/08 and Rezoning A 24/08 Isa, Any comments on our letter to Council addressing the internal connections? Will this be circulated to Council before the Dec 1 Planning and Development Committee? Nicole SmartCentres Nicole _C,,.,Vicano I Land Development Associate I Phone: 905-760-6200 ext. 7774 1 Fax: 905-760-6202 ( Cell: 416-452- 0594 [ 700 Applewood Cres., Suite 100, Vaughan, Ontario, L4K 5X3 "James, Isa" <iiamesAcitVofpickering.com> 03/26/2009 03:05 PM To nvicano@smartcentres.com<nvicano(csmartcentres.com> cc Subject RE: Recommendation Report for SmartCentres OPA 004/08 and Rezoning A 24/08 Thanks Nicole Isa James, MCIP, RPP From: nvicanoCd)smartcentres.com [mailto:nvicano@smartcentres.com] Sent: March 26, 2009 2:09 PM To: James, Isa Cc: Taylor, Lynda 2 Subject: Re: Recommendation Report for SmartCentres OPA 004/08 and Rezoning A 24/08 ATTACHMENT# TO REPORT# PD Z Isa, 19 As requested, please see the attached letter in response to pedestrian connections. Please call me if you have any questions, Thank you, Nicole SmartCentres Nicole Q. Vico I Land Development Associate I Phone: 905-760-6200 ext. 7774 1 Fax: 905-760-6202 Cell: 416-452- 0594 [ 700 Applewood Cres., Suite 100, Vaughan, Ontario, L4K 5X3 ] "James, Isa" <iiameslrDcitvofpickering.com> 03/20/2009 04:06 PM To nvicano@smartcentres.com<nvicano(ccD_smartcentres.com> cc "Taylor, Lynda" <ItavlorCcDcitvofpickering.com> Subject Recommendation Report for SmartCentres OPA 004/08 and Rezoning A 24/08 Hello Nicole, In preparation for our recommendation report, I am trying to pull together as many loose ends as possible. The Municipal Property & Engineering Department's memo of January 15, 2009 requires that a safe pedestrian access to the plaza is to be provided from Beechlawn Park as part of the Wal-Mart expansion. In the same memo they note that the fence along the western limits of the park adjacent to the Wal-Mart is required to be repaired as well. Councillor's Pickles' made the same comment with regard to pedestrian access during the February 2, 2009 public meeting. Please provide us with a written response to these requirements so that we may include SmartCentres' position on these matters in our recommendation report. Best regards Isa James, MCIP, RPP 3 ATTACHMENT# /.~5TO 2 REPORT# PO 10 S~WO ~~g3 N tW, lU Q 4+ Z2 W I I I I I~I~I I I_I I I I I v , } 111 u °ilM*711M J @i cn cn B d .J cc O co Q CL LL Q cr w El w ° g ° w LL I_ CD 0 0 z¢ - ~lf 5; w w w w ~ Q C-) O S3MOl/SWHS ■ - C-6 U- c ■ O z c 0 cjn v o Z (~IHH-I}{~HHHH~IIHHHH Q u~ ~ - Y w (n 0 ¢ ■ niiiiiiiiiall1iiiiiiiiiiii Q ■ a: ¢w (s ~ r r r ■ z ■ J J ~ ■ ■ - - - ~ c .KSgq/ 9 I~ ° ATTACHMENT# L TD REPORT# PD LL L SmartCentres - Retail Market Demand and Impact Study - City of Pickering 11 Retail Market Demand and Impact Conclusions This market demand and impact analysis has been designed to address the 13 requirements, as they relate to retail commercial development, in the City of Pickering. Retail development on the Subject Site is subject to the policies in the City of Pickering Official Plan. The Subject Site is designated as Mixed Use, and further identified as a Specialty Retailing Node in the Pickering OP. The existing official plan designation for the Subject Site restricts development to 49,000 square metres (approximately 527,500 square feet), while the zoning by-law restricts development on the Subject Site to 49,237 square metres. The Wal-Mart and future Sobeys expansions will result in the Subject Site exceeding the current caps. Therefore, official plan and zoning by-law amendments will be required for the proposed expansions. a With respect to retail development outside of the designated Downtown Core, the Pickering OP states: ZI 15.14 Outside the Downtown Core, City Council, in the review of development proposals for new or expanded gross leasable floor space for the retailing of goods and services, (c) shall for the development of 2,500 square metres or greater of floor space, and may for the development of less than 2,500 square meters of floor space, (i) require a retail impact study to justify the proposed floor space for the retailing of goods and services and demonstrate that such additional floor space will not unduly affect the viability of any lands designated or developed for the retailing of goods and services."10 ® The Pickering OP also specifically addresses the addition of retail floor space in the Specialty Retailing Node at section 3.6(g)(i), requiring that, prior to zoning for significant retail floor space, a retail impact study be prepared that justifies that the addition of such floor space will not adversely affect the planned function of the ® Downtown Core, the Community Nodes, and nearby Main Central Areas in other 2 municipalities in the Region." ® TER's market demand and impact analysis has been designed to address the requirements of the City of Pickering's Official Plan policies as it relates to the I proposed expanded commercial development. ® 'o City of Pickering, Official Plan Edition 5, Section 15.14, p. 295. City of Pickering, Official Plan Edition 5, Section 3.6, pp. 62-63. 23 44 1 ATTACHMENT# TO 122 REPORT# PD 9 L2 SmartCentres - Retail Market Demand and Impact Study - City of Pickering 11.1 Provincial Policy Statement (2005) The PPS provides policy direction on matters of provincial interest related to land use planning and development. As it relates to this market demand and impact study, the PPS states: "Long-term economic prosperity should be supported by: b) maintaining and, where possible, enhancing the vitality and viability of downtowns and mainstreets;" 12 TER's market demand and impact analysis has been designed to address this policy. 11.2 Conclusions and Recommendations The Wal-Mart and Sobeys expansions provide an opportunity to increase ZI Pickering's attractiveness as a retail destination. In TER's opinion these expansions provide an opportunity for enhancing the vitality and viability of the retail market in City of Pickering. It is our opinion that the expansion of the Wal-Mart department store and the future expansion of the Sobeys store will not unduly affect the viability of any lands designated or developed for the retailing of goods and services in the City of Pickering, or adversely affect the planned function of the Downtown Core, the Community Nodes, and nearby Main Central Areas in other municipalities in the Region. It is the professional opinion of Tate Economic Research Inc., that the proposed Wal-Mart and Sobeys expansions are supportable on the basis of market demand and impact. 12 Ministry of Municipal Affairs and Housing, Provincial Policy Statement 2005, Policy 1.7.1 (b), p.13. 24 ATTACHMENT# 7 TO REPORT# PD 2 9 6 2 l l 3 ITATE ECONOMIC RESEARCH INC. Jeryl Jaque Retail Market & Urban Development Consultant MALONE GIVEN PARSONS LTD. 140 Renfrew Dr, Suite 201, Markham, ON L3R 6133 December 23, 2008 Re: SmartCentres Development Retail Market Demand and Impact Analysis - City of Pickering Dear Mr. Jaque: Tate Economic Research has revised the analysis contained in the TER report titled SmartCentres Development Retail Market Demand and Impact Analysis, City of Pickering, November 2008 (TER November 2008 Report). The reason for the revision is that SmartCentres has advised us that the proposed Wal-Mart expansion will likely open in late 2010 or early 2011. In the TER November 2008 report, TER assumed a first full year of 2012. In the revised analysis attached, TER has assumed a first full year of 2011. As noted in the MGP letter dated December 17, 2008, the peer review of the TER November 2008 Report resulted in some changes with respect to the Study Area population and Supermarket Demand and Impact Analysis. As further noted, the MGP letter suggested that we incorporate the peer review findings in our revised analysis rather than submitting our revised analysis and have MGP make the adjustments. TER has incorporated all of the suggestions in the attached revised analysis. TER has also reviewed the suggestions and responded to each below. 1) City of Pickering Population It should be noted that the population forecasts provided by MGP are significantly less than the forecasts in the Growing Durham Recommended Growth-Scenario and Policy Directions Final Report,-November 18, 2008 publication. However, as the MGP suggested population was calculated with input from City planning staff, TER has incorporated the MGP forecasts into the revised analyses. The projections are illustrated below. ATTACHMENT#_LZ_TO 124 REPORT# PO LL 09 CITY OF PICKERING POPULATION FORECASTS 2006 2008 2011 2012 2014 2016 Pickering - TER November 2008 Report 87,800` 87,700 94,100 108,000 121,900 Pickering - MGP Suggested 87,800 87,200 93,100 104,300 113,600 Pickering-Growing Durham Recomended Growth Scenario 91,800 110,100 141,100 2) Town of Ajax Population TER has revised the Town of Ajax population forecasts to conform to the forecasts within the Growing Durham Recommended Growth Scenario and Policy Directions Final Report; November 98, 2008 publication. The following table illustrates the TER November 2008 forecasts and the revised forecasts. TOWN OF AJAX POPULATION FORECASTS 2006 2008 2011 2012 2014 2016 Ajax - TER November 2008 Report 93,800 106,400 120,000 122,400 124,870 Ajax - Growing Durham Recomended Growth Scenario t' 94,300 106,500 111,400 120,300 126,300 'iT he 2006, 2011 and 2016 numbers are from the Growing Durham Recommended Growth Scenario and Policy Directions Final Report November 18, 2008 (Watson & Associates Economists Limited, Urban Strategies Inc., TSH Enginneers, Architects, Planners). The 2008 population is based on The Regional Municipality of Durham, Monitoring Growth Trends, File. D01-02-01, November 4, 2008. The 2014 population is based on a straightline interpolation between 2011 and 2016. 3) Allocation of Seaton Population Expenditure Potential to South Urban Area Retail TER recognizes that local retail and service facilities will develop in Seaton as the population increases to support such facilities. However, until such time the expenditure potential of these residents will continue to be captured by retail facilities in south Pickering and elsewhere. In the case of supermarkets, both the TER November 2008 Report and the revised analysis attached to this letter indicate supermarket performance levels above industry averages in 2014 and 2016, indicating warranted demand for additional supermarket space. It is the opinion of TER that the proposed Sobeys and Wal-Mart expansions will not preclude the development of a supermarket in Seaton. 4) Analysis Model Supermarket Share Input Adjustments to Correct Supermarket Expenditure Potential Overstatement TER has incorporated the MGP suggested changes in the supermarket share of FOR expenditures. However, it should be noted that TER does not agree with the extent of changes for the following reasons: a. MGP has suggested that the supermarket share of food oriented retail (FOR) should be decreased with a corresponding increase the convenience and specialty share of FOR expenditures. With the suggested decrease in the supermarket share of FOR expenditures and a corresponding increase in the convenience and specialty ATTACHMENT REPORT# PQ 25 food share of FOR expenditures, the performance level of the existing convenience and specialty food space in 2008 is $440 per square foot. It is the opinion of TER that $440 per square foot is too high for convenience and specialty food space. b. With the suggested decrease in the supermarket share of FOR expenditures, the performance level of the existing Pickering supermarket space in 2008 is $580. A July 2005 study conducted by MGP in Ajax' concluded that 2005 base year sales for the existing Ajax supermarkets was $659. There has been population growth and no corresponding increase in supermarket space. Therefore, it is reasonable that 2008 sales volumes are higher than the 2005 volumes estimates by MGP. It is the opinion of TER that the Pickering and Ajax markets are not significantly different and therefore there should not be such a large discrepancy between the sales per square foot levels. Despite TER's disagreement with MGP over the changes in the supermarket share of FOR expenditures, TER has revised the analysis to conform with the MGP peer review findings as requested by MGP. 5) Directional Impact Without the Sobeys Supermarket In addition to the above suggestions, MGP has also asked that we provide a revised supermarket directional impact analysis, without the expansion of the Sobeys. TER has provided this analysis. TER Conclusions After revising the analysis contained within the TER November 2008 Report to reflect a first full year of operation in 2011 as opposed to 2012, it is the opinion of TER that the conclusions in the TER November 2008 Report remain valid. Furthermore, after incorporating the changes suggested by MGP as part of their peer review, it is the opinion of TER that the conclusions in the TER November 2008 Report remain valid. These conclusions are repeated below: The proposed Wal-Mart and Sobeys expansions provide an opportunity to increase Pickering's attractiveness as a retail destination. In TER's opinion, these proposed expansions provide an opportunity for enhancing the vitality and viability of the retail market in City of Pickering. It is our opinion that the expansions of the Wal-Mart department store and the Sobeys store will not unduly affect the viability of any lands designated or developed for the retailing of goods and services in the City of Pickering, or adversely affect the planned function of the Downtown Core, ' Malone Given Parsons, Stokegrove Development Market Demand and Impact Analysis, Harwod Avenue North, Town of Ajax Ontario, July 2005. ATTACHMCNT# j~T0 126 3EPORT# PD / 9 9 the Community Nodes, and nearby Main Central Areas in other municipalities in the Region. It is the professional opinion of Tate Economic Research Inc., that the proposed Wal-Mart and Sobeys expansions are supportable on the basis of market demand and impact. If you have any further questions, please do not hesitate to contact us. Yours truly, TATE ECONOMIC RESEARCH INC. James P. Tate President ATTACHMENT# / 7 TO IEPORT# PD q - 1 L 7 TABLE 2 - REVISED CITY OF PICKERING RETAIL MARKET DEMAND AND IMPACT ANALYSIS Ira STUDY AREA POPULATION LEVELS t' 2006 2008 2011 2014 2016 Total Primary Zone (City of Pickering, portion) 87,800 87,200 93,100 104,300 113,600 Period Change -600 5,900 11,200 9,300 Annual Growth Rate -0.3% 1.7% 6.0% 4.5% Total Secondary Zone (Town of Ajax) 93,800 106,500 111,400 120,300 126,300 Period Change .12,700 4,900 8,900 6,000 Annual Growth Rate 6.8% 1.2% 4.0% 2.5% Total Study Area 181,600 193,700 204,500 224,600 239,900 Period Change 12,100 10,800 20,100 15,300 Annual Growth Rate 3.3% 1.4% 4.9% 3.4% Source: TATE ECONOMIC RESEARCH INC. t Refer to Appendix D for a detailed methodology of the population projections. ATTACHMENT#___ ~ __T0 128 1EPORT# PD 612 TABLE 3 - REVISED CITY OF PICKERING RETAIL MARKET DEMAND AND IMPACT ANALYSIS STUDY AREA NON FOOD ORIENTED RETAIL (NFOR) EXPENDITURE POTENTIAL 2008 Province of Ontario - Average Per Capita NFOR Expenditures Per Capita NFOR Expenditures I' $5,320 2008 Dollars ($Millions) 2008 2011 2014 2016 Primary Zone Income Index to Province 12 106.8 NFOR Expenditure Index 0 103.9 Per Capita NFOR Expenditures t4 $5,525 $5,775 $6,020 $6,190 Population j5 87,200 93,100 104,300 113,600 Total NFOR Potential $481.8 $537.7 $627.9 $703.2 Secondary Zone Income Index to Province (2 97.2 NFOR Expenditure Index 17 98.4 Per Capita NFOR Expenditures w $5,235 $5,470 $5,705 $5,865 y Population I5 106,500 111,400 120,300 126,300 Total NFOR Potential $557,5 $609.4 $686.3 $740.7 TOTAL STUDY AREA Total NFOR Potential Millions) $1,039.3 $1,147.1 $1,314.2 $1,443.9 Source: TATE ECONOMIC RESEARCH INC. TER estimate based on Statistics Canada, Retail Trade and Wholesale Trade and other industry sources. See Appendix D for derivations of provincial figures n Based on Statistics Canada, Census of Canada 2006. Based on the income relationship between the Province and Study Area residents using the NFOR regression equation of y= 43 +.57(x), where x is the income index: See Appendix D for greater detail. 4) Forecast to increase at 1.5% per annum, excluding inflation. 5) Repeated from Table 2. ATTACHMENT#-L2-TO REPORT# PD ! L9 TABLE 4 - REVISED CITY OF PICKERING RETAIL MARKET DEMAND AND IMPACT ANALYSIS STUDY AREA FOOD ORIENTED RETAIL (FOR) EXPENDITURE POTENTIAL 2008 Province of Ontario -Average Per Capita FOR Expenditures Supermarkets i' $1,756 Convenience and Specialty Food Stores i' $256 Per Capita FOR Expenditures $2,012 2008 Dollars ($Millions) 2008 2011 2014 2016 Primary Zone Income Index to Province to 106.8 FOR Expenditure Index i3 100.7 Per Capita FOR Expenditures i4 $2,025 $2,055 $2,085 $2,105 Population is 87,200 93,100 104,300 113,600 Total FOR Potential $176.6 $191.3 $217.5 $239.1. Secondary Zone Income Index to Province IZ 97.2 FOR Expenditure Index i3 99.7 Per Capita FOR Expenditures (4 $2,005 $2,035 $2,065 $2,085 Population is 106,500 111,400 120,300 126,300 Total FOR Potential $213.5 $226.7 $248.4 $263.3 TOTAL STUDY AREA Total FOR Potential Millions) $390.1 $418.0 $465.9 $502.4 Source: TATE ECONOMIC RESEARCH INC. 1) TER estimate based on Statistics Canada, Retail Trade and Wholesale Trade and other industry sources. See Appendix D for derivations of provincial figures. a) Based on Statistics Canada, Census of Canada 2001. 3) Based on the income relationship between the Province and Study Area residents using the FOR regression equation of y= 90 +0.1(x), where x is the income index. See Appendix D for greater detail. 4) Forecast to increase at 0.5% per annum, excluding inflation. 5) Repeated from Table 2. ATTACHMENT#~TO 30 REPORT# PD- / ~ 9 TABLE 5 - REVISED CITY OF PICKERING RETAIL MARKET DEMAND AND IMPACT ANALYSIS ail DEPARTMENT STORE MARKET DEMAND AND IMPACT ANALYSIS 2008 Dollars ($Millions) 2008 2011 2014 2016 Primary Zone NFOR Expenditure Potential(' $481.8 $537.7 $627.9 $703.2 Department Store Share % I2 20.0% 20.0% 20.0% 2U% Department Store Share $ i2 $96.4 $107.5 $125.6 $140.6 Primary Zone Share % (2 92.6% 92.6% 92.6% 92.6% Primary Zone Share $ $89.2. $99.5 $116.3 $130.2 Secondary Zone NFCR Expenditure Potential(' $557.5 $609.4 $686.3 $740.7 Department Store Share % (2 21.0% 21.0% 21.0% 21.0% Department Store Share $ I2 $117.1 $128.0 $144.1 $155.5 Primary Zone Share % (2 39.2% 39.2% 39.2% 39.2% Primary Zone Share $ $45.9 $50.2 $56.5 $60.9 Total Study Area Department Store Expenditures $213.5 $235.5 $269.7 $296.1 Total Primary Zone Share $135.1 $149.7 $172.8 $191.1 Inflow % l3 24.5% 24.5%0 24.5% 24.5% Inflow $ $43.8 $48.6 $56.1 $62.0 Total Primary Zone Department Store Sales $178.9 $198.3 $228.9 $253.1 Wal-Mart (SmartCentres Development) 130,500 137,000 137,000 137,000 All Other Department Stores 398,800 398,800 398,800 398,800 Total Proposed & Existing Department Store Space 529,300 535,800 535,800 535,800 Department Store Sales Per Square Foot (4 $340 $370 $425 $470 Percent Change From Current 8.8% 25.0% 38.2% Source: TATE ECONOMIC RESEARCH INC. Repeated from Table 3. 2) TER estimate based on in-home consumer telephone survey results, an examination of the inventory of competitive space and TER professional judgement. 3) TER estimate based on an examination of the inventory of competitive space, licence plate surveys and TER professional judgement 4) Sales rounded to the nearest $5.00, per square foot. ATTACHMENT. 7 TO REPORT# PO / 2 - 0'7 131 TABLE 6 - REVISED CITY OF PICKERING RETAIL MARKET DEMAND AND IMPACT ANALYSIS SUPERMARKET AND GROCERY MARKET DEMAND AND IMPACT ANALYSIS 2008 Dollars ($Millions) 2008 2011 2014 2016 Primary Zone FOR Expenditure Potential I' $1766 $191.3 $217.5 $239,1 Supermarket Share % 12 75A% 75.0% 75.0% 75.0% Supermarket Share $ $132.5 $143.5 $163.1 $179.3 Primary Zone Share % t2 93.0% 93.0% 93.0% 93.0% Primary Zone Share $ $123.2 $133.4 $151.6 $166.7 Secondary Zone FOR Expenditure Potential I' $213.5 $226.7 $248.4 $263.3 Supermarket Share % t2 76.0% 76.0% 76.0% 76.0% Supermarket Share $ $162.3 $172.3 $188.8 $200.1 Primary Zone Share % 12 10.0% 10.0% 10.0% 10.0% Primary Zone Share $ $16.3 $17.3 $19.0 $20.1 Total Study Area Supermarket Expenditures $294.8 $315.8 $351.9 $379.4 Total Primary Zone Supermarket Sales $139.5 $150.7 $170.6 $186.8 Inflow % 13 14.5% 15.5% 15.5% 15.5% Inflow $ $23.7 $27.6 $31.3 $34.3 Total Primary Zone Supermarket Sales $163.2 $178.3 $201.9 $221.1 Primary Zone Supermarket Space 281,300 281,300 281,300 281,300 Proposed Wal-Mart Expansion FOR Component 30,500 30,500 30,500 Sobeys Expansion Potential 10,000 10,000 10,000 Total Proposed & Existing Supermarket Space 281,300 321,800 321,800 321,800 Supermarket Sales Per Square Foot 14 $680 $555 $625 $685 Percent Change From Current -4.3% 7.8% 18,1% Source: TATE ECONOMIC RESEARCH INC. 4 Repeated from Table 4. 2) TER. estimate based on in-home consumer telephone survey results, an examination of the inventory of competitive space and TER professional judgement. 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November, 2008 Wal-Mart Expansion Market Demand & Impact Study Pickering, Ontario Prepared For: City of Pickering One The Esplanade Pickering, Ontario L 1 V 6K7 Prepared By: Malone Given Parsons Ltd. 140 Renfrew Drive, Suite 201 Markham, Ontario UR 6B3 Tel: (905) 513-0170 Fax: (905) 513-0177 jjaque@mgp.ca March 15, 2009 08:1802 ATTACHMENT#-LE-TO REPORT# PD-/? 0 135 Peer Review of Pickering Wal-Mart'Expansion Market Impact Study Prepared by Tate Economic Research Inc. TABLE OF CONTENTS TABLE OF CONTENTS 1.0 INTRODUCTION ................................................................................................................1-1 1.1 The Proposed Development ......................................................................................1-1 1.2 Official Plan & Zoning Requirements ......................................................................1-2 1.3 Purpose of The Study and Peer Review 1-4 1.4 Malone Given Parsons Ltd ........................................................................................1-4 1.5 Scope of Work ..........................................................................................................1-5 2.0 PEER REVIEW PROCESS 2-1 2.1 Retainer ....................................................................................................................2-1 2.2 TER Terms of Reference 2-1 2.3 Peer Review Meetings ..............................................................................................2-1 2.4 Peer Review Dialogue with TER ..............................................................................2-2 2.5 Peer Review Report ..................................................................................................2-2 3.0 PEER REVIEW ANALYSIS ...............................................................................................3-1 3.1 Study Method .......................................................................:....................................3-1 3.2 Subject Site ...............................................................................................................3-1 3.3 Surveys ......................................................................................................................3-1 3.4 Trade Area ................................................................................................................3-1 3.5 Population Forecasts .................................................................................................3-2 3.6 2014-2016 Central Pickering (Seaton) Market Shares 3-2 . 3.7 Measured Inventory of Retail Space ...............................:.........................................3-3 3.8 Incomes & Expenditures ...........................................................................................3-3 3.9 Assumption Re First Full Year of Operation ............................................................3-4 3.10 Department Store Analysis .......................................................................................3-4 3.11 TER Supermarket Analysis .......................................................................................3-5 3.12 Analysis Assuming Sobeys Expansion .....................................................................3-6 3.13 TER December 23 2008 Revised Analysis ...............................................................3-7 3.14 Table 8 Supermarket Impact Analysis .3-9 3.15 Table 7 Supermarket Impact Analysis With Sobeys Expansion ................3-13 4.0 PEER REVIEW CONCLUSIONS ......4-1 4.1 .................4-1 4.2 ........................................................................................................................4-1 4.3 ..............................................................:........................................................4-1 4.4 .......................................................................................................................4-2 4.5 .......................................................................................................................4-2 4.6 .......................................................................................................................4-3 4.7 .......................................................................................................................4-3 4.8 .......................................................................................................................4-4 4.9 ......................................................................................................................4-5 4.10 ..............:........................................................................................................4-6 MALONE GIVEN PARSONS LTD. 1 ATTACHMENT#-Z-TO 136 REPORT# PO ~9 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. TABLE OF CONTENTS APPENDICES A. TER Terms of Reference B. Peer Review Requests C. Peer Request Responses MALONE GIVEN PARSONS LTD. .2 ATTACHMENT#.2le-TO REPORT# PD G~ 137 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 1.0INTRODUCTIO.V 1.0 Malone Given Parsons Ltd. (MGP) was retained by the City of Pickering to INTRODUCTION carry out a peer review of the Tate Economic Research Inc. (TER) report titled SmartCentres Development Retail Market Demand and Impact Analysis, City of Pickering ON, dated November, 2008 (the TER Report) prepared for SmartCentres, on behalf of Calloway REIT (Pickering) Inc. and First Simcha Shopping Centres. 1.1 SmartCentres propose the expansion of the existing 130,500 sq.ft. Wal-Mart The Proposed store situated in their large open format shopping centre located in the Development Southeast quadrant of Kingston Rd and Brock Rd. We are advised that the redevelopment will modernize and upgrade the Wal-Mart and expand its food store component. The proposed development would add 34,500 sq.ft. of floor area, of which approximately 30,500 sq.ft. will consist of food store space. Similar re-developments have been undertaken at other Wal-Mart locations in Ontario (one is currently underway immediately west of Pickering in the Morningside Wal-Mart). It has been observed that the changes being made involve upgrades to the store interiors such as lighting, fixturing, amenities, wider aisles etc. in conjunction with increased food store floor space. Also contemplated by the Application submitted to the City and examined by the Market Impact Study is a prospective future 10,000 sq.ft. expansion of the existing Sobeys supermarket located on the same SmartCentres Pickering Brock Rd shopping centre site. An aerial photo graphic prepared by SmartCentres, reproduced on the next page illustrates the existing site layout and the positions of retail tenahts on the site and adjacent lands. SmartCentres website describes their Pickering centre as follows: a 528,000 square foot shopping centre that is situated on 48.34 acres at Highway 401 and Brock Road in Pickering, Ontario.. A Wal-Mart Department Store, a Sam's Club, a 48,600 square foot Sobeys anchor the site. Other national tenants include Toys "R" Us, Winners, PetSmart, Reitmans, and Mark's Work Wearhouse. An 82,000 square foot Canadian Tire operates on lands immediately adjacent to the site." MALONE GIVEN PARSONS LTD. 1-1 ATTACHMENT# ! TO . 3 8 REPORT# PD / 9- 0 2 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 1.0IVTRODUCTION It was recently announced that the Wal-Mart organization is closing its Sam's Club Wholesale Membership Club (WMC) outlets in Canada, including the outlet in Pickering on the SmartCentres site. Lowe's Home Improvement chain has expressed an interest in Sam's Club locations, including the Pickering site, There is no information available at this time which would affect the findings and conclusions in this peer review report. G :7C WAL*MART h ~r Ilk _k9a 2S ~ ' ~ ~€t4lCmin+ 1.2 The Pickering commercial centre site illustrated above. is situated on lands Official Plan & designated Specialty Retailing Node in the Pickering City Official Plan as Zoning shown on the graphic which follows. Requirements MALONE GIVEN PARSONS LTD. 1-2 ATTACHMENT# 8 TO REPORT# Peer Review of Pickering Wal-Mart Expansion Market Impact Study 139 Prepared by Tate Economic Research Inc. 1.01NTRODUCTI01V l 1 W - i NELL 1 I t FI H AV J C c SPE.CIAL'rYAETAIUNG NODE W iWiaa ta ~ ` DEVF-LOP#A#NT x i r ' . GUIDEUNdSi. ! > m n J T I Q I W _D IV a f W W III LLI :f I a f::ft /r nrr I l i I T a ! Y~(i /,ice (R f. / /,"✓a. l:~I I ~ r l 1 ' LIEFE^7 n E+i 1 p'# a LFt n^t 'y~ f',ff 'r %/~'r!/ 1 - f >t 51 1 I i ~ I t ~t - i` ''y w I ~ I f iR Planning policy for the Specialty Retailing Node of particular interest in relation to this peer review is set out in the City's Official Plan, Chapter 3 Land Use section, City Policy for Mixed Use Areas including the following:: (g) within the Specialty Retailing Node; (i) prior to zoning for significant retail floor space, shall require the submission of a retail market impact study justifying, to the City's satisfaction in consultation with the Region of Durham, that the addition of such floor space will not adversely affect the planned function of the Downtown Core, the Community Nodes, and nearby Main Central Areas in other municipalities in the Region. MALONE GIVEN PARSONS LTD. 1-3 ATTACHMENT#~~ REPORT# PD 140 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 1.01NTRODUCTION ii) For lands north of the Pickering Parkway, shall establish a minimum gross leasable floor area of 500 square metres for any permitted individual retail unit, except that up to an aggregate of 1400 square metres of gross leasable floor area may be devoted for any permitted individual retail unit of less than 500 square metres of gross leasable floor area but not less than 300 square metres of gross leasable floor area; iii) For lands north of the Pickering Parkway shall establish a maximum aggregate gross leasable floor area of 49,000 square metres for all special purpose commercial uses permitted by Table 5; iv) shall not permit an enclosed shopping centre or pedestrian mall; iv) Does not allow the establishment of any type of food store with a gross leasable floor area greater than 700 square metres prior to June 11, 2003. 1.3 In order to permit the proposed expansion, amendments to the City of Purpose of The Pickering Official Plan and Zoning Bylaw are necessary. SmartCentres has Study and Peer Review submitted applications for an Official Plan Amendment and a Zoning By- Law Amendment to the City of Pickering. SmartCentres retained TER to carry out the required market justification and impact study and submitted that study to the City in support of the applications. The City's Planning Staff have engaged Malone Given Parsons Ltd. (MGP) to undertake a peer review of the TER study that was submitted because the study addresses technical matters requiring,specialized experience and MGP has conducted peer reviews and provided professional advice to the City regarding retail matters in the past. 1.4 Malone Given Parsons Ltd. (MGP) is a Markham Ontario based urban Malone Given planning firm that has expertise in land use planning, urban economics, retail Parsons Ltd. market analysis and the municipal approvals process for development proposals and provides planning and development consulting services to private and public sector clients. Jeryl Jaque, lead consultant for this assignment and the author of this report has been engaged in practice as a consultant specializing in real estate and retail commercial development for more than 38 years and has been a contractor to and Senior Associate of Malone Given Parsons since 1986. MALONE GIVEN PARSONS LTD. 1-4 ATTACHMENT#-Li--TO REPORT# PD /9.0 '2 141 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 1. 0 INTR OD UCTION MGP and Mr. Jaque have extensive experience with conducting peer reviews and are acquainted with the Pickering market from both private sector work in Pickering and past work as consultants for the City. Mr Jaque has been engaged to carry out peer reviews of market studies and provide the City's Staff with advice on Brock Road area commercial matters on previous occasions. 1.5 This peer review of the TER Report was carried out with specific reference Scope of Work to the policies of the City of Pickering Official Plan and the matters to be - addressed identified within the Terms of Reference agreed upon for the TER Report (The TER September 22nd Terms of Reference and modifications recommended by MGP on September 23`d and agreed upon are attached to this report in Appendix A). As part of the peer review and in response to MGP questions, TER provided clarifications and information, revised tables, and additional analyses and opinions. Copies of the MGP peer review questions sent to TER in email or letter form are attached to this document as Appendix B. Copies of the responses provided by TER to the peer review requests and the additional information, revised tables and submissions of supplementary analysis and professional opinion are attached to this report in Appendix C. This peer review was carried out in order to provide opinions and conclusions regarding the TER Report and supplemental analysis and the validity of the results reported by TER. The objective of the peer review was to determine the degree of reliance that the City of Pickering can place on the reported conclusions regarding market support for the proposed development and whether or not it would cause significant adverse impact or jeopardize the viability of established commercial areas within the community, in particular, the Core Area and therefore undermine the intent of the Official Plan. This brief format peer review report summarizes the results of the Malone Given Parsons Ltd (MGP) peer review of the Tate Economic Research Inc. (TER) study and submits MGP's findings and conclusions to the City of Pickering. MALONE GIVEN PARSONS LTD.. 1-5 ATTACH MENT#._._._TO REPORT# PD__LL!~~_ 142 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 2.0 PEER REVIEW PROCESS 2.0 Tate Economic Research (TER) prepared a market study report which was PEER REVIEW provided to the City of Pickering in support of applications submitted by PROCESS SmartCentres for the permissions required for additional development on their existing commercial centre site at Brock Rd. and Kingston Rd. in Pickering. This section of the peer review report summarizes the steps which were taken and the process which has been followed in conducting Malone Given Parsons Ltd (MGP)'s peer review of the TER report and the supplementary materials submitted by TER during the peer review Process. 2.1 Malone Given Parsons Ltd was engaged to act as consultants to the City of Retainer Pickering in this matter. This assignment has been carried out under the direction of City of Pickering Planning Staff and MGP has set out the information, technical advice and opinions in this peer review report to provide input to Staff's planning deliberations. 2.2 Tate Economic Research (TER) submitted a `Terms of Reference' dated TER Terms of September 22, 2008 to the City to ensure that the study they were Reference undertaking would be of a type and nature acceptable to Planning Staff. Staff had MGP scrutinize the Terms of Reference and then sent TER MGP's recommendations regarding revisions the City should request and there was subsequent discussion and clarification. MGP was instructed to ensure that the TER report reflected the Terms of Reference revisions. The TER September 22, 2008 Terms of Reference and MGP's September 23, 2008 letter are attached to this report in Appendix A. - 2.3 Mr. Jaque (lead consultant for this assignment) was asked by Staff to Peer Review participate in a briefing meeting at Planning Department offices attended by Meetings the applicant's project team. Over the course of the peer review MGP sought and obtained guidance from Pickering Planning Staff on issues such as planned future growth areas, anticipated future retail development in new growth areas and population growth rates. Mr. Jaque met with Planning Staff members Grant McGregor, Lynda Taylor and Isa James on December 16, 2008 to provide an interim progress report, inform Staff that TER had received instructions to submit a new analysis based on a revised first full year of operation of the proposed Wal-Mart MALONE GIVEN PARSONS LTD. 2-1 ATTACHMENT -2-L .,~TO REPORT# Pl) Peer Review of Pickering Wal-Mart Expansion Market Impact Study 143 Prepared by Tate Economic Research Inc. 2.0 PEER REVIEW PROCESS expansion (from 2012 to 2011) and seek direction as to extending the peer review analysis to the revised analysis calculations and results submitted by TER. There was discussion of releasing to TER the MGP peer review analysis findings regarding the original TER report so that these could be incorporated by TER into their revised analysis thereby minimizing additional time and costs. Staff was in favor of taking that approach and MGP agreed to provide this input to TER. 2.4 Typically the most useful peer reviews proceed beyond technical criticism Peer Review of the original report and involve requests for additional information, Dialogue with TER discussion with the report authors and consideration of supplementary materials or revised analyses. MGP submitted a series of peer review requests to TER and received prompt responses containing the background information, clarifications and answers requested. In response to MGP's final (#4 and #5) requests TER provided a revised set of analysis tables incorporating changes in assumptions and input factors on December 23, 2009. The peer review analysis conducted by MGP takes into account not only the original TER November 2008 document but also the information provided in response to our requests, including the December 23`d revised analysis submitted by TER. The MGP peer review requests are reproduced in Appendix B to this report and the responses provided by TER are reproduced in Appendix C. 2.5 A draft of this document, presenting the work and findings of the peer Peer Review Report review consultants was prepared and submitted to City of Pickering Planning Staff for discussion purposes and subsequently produced as a final peer review report MALONE GIVEN PARSONS LTD. 2-2 ATTACHMENT# 1 _r0 i i. 144 REPORT# PO A' Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER REVIEW ANALYSIS 3.0 The report section which follows summarizes MGP's analysis of the TER PEER REVIEW Report, supplemental tables and information, baseline assumptions, and ANALYSIS forecast of market demand and impacts related to the proposed Wal-Mart expansion and MGP's evaluation findings. For the purpose of this peer review, we have used the TER terms and definitions in order to provide consistency. 3.1 From an overall, general point of view the methods employed by TER in Study Method conducting their November, 2008 "SmartCentres Development Retail Market Demand and Impact Analysis, City of Pickering ON" follow. accepted industry practices for studies of this nature and have been applied appropriately. 3.2 The proposed development involves changes to/enlargement of existing Subject Site retail buildings on lands designated to accommodate an existing commercial centre. The proposed changes can be physically accommodated on the subject site lands. Previous site planning for the centre anticipated future expansions of the Wal-Mart building and the Sobeys supermarket of the sizes proposed and reserved site lands for these changes. 3.3 TER undertook customer origin license plate surveys at major food store Surveys locations in Pickering and reviewed information from license plate surveys conducted in the Town of Ajax in recent years. TER engaged the services of a reputable survey research firm (Network Research) to administer a Household Telephone Survey to obtain an indication of Pickering and Ajax resident retail spending patterns. MGP examined the telephone survey questionnaire, the summary of survey response tables in the TER Report and detailed survey response information provided on request and are satisfied with regard to TER's survey research. 3.4 The TER study utilizes the City of Pickering as a Primary Trade Area for Trade Area analysis purposes and the Town of Ajax as a Secondary Trade Area and identifies an amount of inflow trade attracted to Pickering retail facilities from outside those areas. These trade area delineations are consistent with the TER survey results and with MGP's experience with the Pickering market. The TER trade areas are appropriate and suitable for the purposes of analysis. MALONE GIVEN PARSONS LTD. 3-1 ATTACHMENT# IL REPORT# PD 145 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER RE VIEW AXALYSIS In the course of the peer review process MGP flagged an issue with regard to the inclusion of the emerging Central Pickering (Seaton) area in the Primary Zone in the latter part of the study period rather than as a separate zone, as will be discussed later in this section. 3.5 An examination of the TER population forecasts indicated that the TER Population study population growth timing expectations for both the Pickering and Forecasts Ajax trade area zones (Table D-1) are aggressive in the latter years of the study period (i.e. 2014-2016). A review of TER population forecasts by Pickering Planning Staff indicated that the TER figures show faster growth than the City anticipates and Ajax Planning Staff advised that updated Durham Region projections suggest somewhat lower numbers for Ajax than those in the TER forecasts. MGP advised TER of the forecast population levels suggested by Pickering Planning Staff and Ajax Planning Staff and TER incorporated revised figures in supplementary analysis tables. The TER 2008 population figures and estimates for 2012 are considered to be appropriate and reliable for analysis purposes. 3.6 MGP has identified a potential flaw in the TER 2014-2016 Supermarket 2014-2016 Central Analysis related to market shares from new growth areas in Central Pickering (Seaton) Pickering: MGP has concluded that nothing turns on this issue in terms of Market Shares the TER report conclusions but is noting it to keep the record straight for the future. The population growth assumed in the TER analysis reaches threshold levels sufficient to. support new local retail and services in the new population areas evolving in Duffins Creek and Seaton by 2014 or shortly thereafter. There have been no development proposals yet for local retail facilities such as a food store to serve that population but it is reasonable to expect proposals to be forthcoming. It is MGP's view that it would have been appropriate to make allowance for this likely prospect in the TER analysis and reduce the share of expenditure potential shown as being captured by southern Pickering store locations in 2014-2016 accordingly. MALONE GIVEN PARSONS LTD. 3-2 ATTACHMENT# / LTo 146 REPORT# PD / 9_ v Peer Review of Pickering Val-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER RE VIE W AXA L YSIS This might have been done most simply by designating Central Pickering and northward as a separate sub-zone from which a lower share of expenditures is assigned to South Pickering retail as local retail facilities are introduced to the north. After examination of this issue MGP concluded that the. important considerations in the TER study pertain to the 2008-2012 period and that nothing turns on the 2014-2016 calculations. For the purposes of providing advice to the Municipality MGP does not need to rely on, and does not rely on, the TER 2014-2016 calculations. 3.7 MGP reviewed both the TER Report summary of retail space by node and Measured Inventory by type (Table A-1) and the detailed inventory that was provided in of Retail Space response to a peer review request. The inventory was found to provide an accurate listing of Pickering's retail commercial inventory. One classification error was identified that required consideration in the peer review examination. The 6,500 square foot T. Phat Supermarket operated in the former Knob Hill Farm premises on Kingston Rd was classified in the TER inventory as a Convenience and Specialty Food category rather than the Supermarket and Grocery Store category. A visit to that store confirmed that, although its merchandise offerings include specialty ethnic food sections, its proper definition and classification should be Supermarket and Grocery Store. Changing this classification adjusts Pickering Supermarket & Grocery Store space from a total of 281,300 square feet to 287,800 square feet and involves a minor change in Pickering Supermarket sales distribution. 3.8 The TER Report followed accepted industry practices in identifying Incomes & Province of Ontario level sales and sales per capita from Statistics Canada Expenditures Retail Trade publications. That data is adjusted to the local level by use of relative average per capita household incomes, with income to spending relationships adjusted by regression equations MGP regards as acceptable. The TER report forecasts per capita expenditures over the study period from base year 2008 in constant 2008 dollars, applying real growth rates exclusive of inflation of 1.5% for Non Food Oriented Retail (NFOR) and 0.5% for Food Oriented Retail (FOR), which are reasonable growth rates relative to long term average growth trends. MALONE GIVEN PARSONS LTD. 3-3 ATTACHMENT#TO REPORT# PD l Z- D 9 147 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER REVIEWAX4LYSIS 3.9 The TER November 2008 report tests a first full year of operation for the Assumption Re proposed Wal-Mart redevelopment and the prospective Sobeys expansion First Full Year of in 2012. This presumes that com letion of construction of the Wal-Mart Operation p expansion and the Sobeys expansion would occur sometime in 2011 with opening occurring at some point in 2011. A shorter elapsed time between application and opening is typical and it was noted that the September 22, 2008 Terms of Reference for the TER study refer to construction in 2010 leading to a first full year of operation in 2011. This issue was brought to TER's attention and, as a result, TER submitted a new set of tables to the City and MGP on December 23, 2008 with an analysis assuming 2011 first full year of operation. 3.10 The TER Report provides a Department Store demand analysis that Department Store provides an assessment of market demand or support for all Pickering Analysis Department Stores including the Wal-Mart expansion. The Department Store Market Demand Analysis (Table 5) presented 2008 Pickering Department Store sales volumes and sales productivity as blended average figures for all stores and concluded that further analysis of the department store category examining directional impacts was not necessary in view of the small amount of additional NFOR Department Store space contemplated for the proposed Wal-Mart expansion. MGP found this to be a reasonable conclusion based on the healthy average productivity levels identified for Pickering Department Stores and the small amount of additional non food department store space contemplated. Sales volumes and productivity expressed as an aggregate or average can, however, obscure problematic low sales for individual chains or locations so MGP requested from TER a breakdown of estimated 2008 sales by individual Pickering Department Store based on the TER survey and analysis. After reviewing the supplementary figures provided by TER, MGP is satisfied that there is no indication that any individual Pickering Department Store experienced significant sales productivity weakness in 2008 or is particularly sensitive or vulnerable to additional competition. MGP agrees with the TER report, therefore, that impact on Pickering Department Stores of a minor addition of Department Store Space is not an issue. MALONE GIVEN PARSONS LTD. 3-4 ATTACHMENT# L e TO 148 REPORT# PD / 2 o Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.O PEER REVIEW ANALYSIS 3.11 The TER November 2008 report provides a Supermarket & Grocery TER Market Demand Analysis (Table 6) that provides an assessment of market Supermarket demand or support for all Pickering Supermarkets. The report then Analysis proceeds to a more detailed Supermarket Directional Impact Analysis (Table 7) which estimates the changes and competitive effects each individual Pickering Supermarket is expected to experience in year 2012 after the addition of the proposed Wal-Mart expansion food component (30,500 square feet) and a 10,000 square foot expansion of the Pickering Sobeys store. Table 6 identifies average 2008 sales volumes and average sales productivity levels for 281,300 sq ft of Pickering Supermarkets in aggregate of $190.6 million and $675 per sq.ft. This represents high or above average productivity for a competitive market. (Statistics Canada data indicates the Canadian average was about $535 ' per sq.ft. in 2005.) That, together with anticipated population growth, indicates a market where additional supermarket or food store space can be introduced without reducing average sales and productivity below acceptable levels. Table 7 presents TER's estimates of the individual shares each Pickering Supermarket achieves of the 2008 total Pickering sales calculated in Table 6 and the estimated sales volumes and sales performance per square foot of, each of Pickering's established Supermarkets. Table 7 then repeats the same exercise for years 2012, 2014 and 2016 .assuming the introduction of an additional 30,500 square feet of food store space in an expanded Wal-Mart and a 10,000 square foot expansion of the Pickering Sobeys store. ` It was, MGP's assessment, having regard for our previous experience in and understanding of the Pickering market, that the TER Report Supermarket sales volumes.and sales productivity figures for all Pickering Supermarkets in the Table 6 and Table 7 2008 base case were very high and required investigation. Mr Jaque visited supermarkets in Pickering in the first two weeks of December and spoke with store owners or store management and with supermarket chain sources. Sales volumes and sales per week or per square foot for individual stores is proprietary business information typically kept confidential. The information provided to MGP, however, indicated that aggregate Pickering Supermarket Sales for 2008 are in the order of $160 MALONE GIVEN PARSONS LTD. 3-5 ATTACHMENT#TO REPORT# PD___12-- 149 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER RE VIEGVAN_ALYSIS million, approximately $30 million lower than the figure in the TER analysis, and that most of the individual store locations experienced lower sales volumes in 2008 than those shown in TER's Table 7. There are a variety of factors or combinations of factors which could produce an overstatement in the total 2008 Supermarket sales calculated in TER Table 6 and distributed amongst Pickering Supermarkets in TER Table 7 Directional Impact Analysis, including trade area and market share and inflow estimates. MGP's examination suggested, however, that the most likely candidates appear to be either the amount of the Food Store (ie. FOR) per capita expenditure in this market or TER's allocation of an 87% share of that expenditure to the Supermarket and Grocery Store category. There are circumstances in the Pickering market which might determine that either or both of these factors are lower than levels in other markets. These include the substantial proportion of Convenience and Specialty category food stores in Pickering (26% of FOR) or the strong role of alternative food expenditure channels in attracting Pickering resident food expenditures (as shown by the TER telephone survey) such as Sam's Club and Costco and the existing Wal-Mart, Zellers and Shoppers Drug Mart food sections. (The recently announced closure of Sam's Club may divert some food expenditures back to the Supermarket and Grocery Store category although the shift would be relatively minor). Whatever underlying factor or combination of factors affected the calculations in TER Table 6 and Table 7, the outcome was results on both Tables which are quite different than MGP's information regarding current 2008 sales volumes and sales performance levels of Pickering Supermarkets. It was concluded that TER's November 2008 Pickering Supermarket Demand and Impact analyses could not be relied upon for the purposes of Planning Staff's considerations and municipal approvals decisions and that re-analysis incorporating changes and adjustments would have to be requested from TER. 3.12 The TER study and it's Table 7 Directional Impact Analysis assume that a Analysis Assuming 10,000 square foot expansion of the 48,600 sq.ft. Sobeys store located on Sobeys Expansion the. SmartCentres site occurs at the same time the proposed Wal-Mart MALONE GIVEN PARSONS LTD. 3-6 ATTACHMENT#-If -TO ' 150 REPORT# PD-2 - -u Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER REVIEW ANALYSIS expansion takes place. The TER report refers to this expansion as a "prospective future expansion". We have been advised that this assumption was incorporated into the TER report because there is provision in the centre's site plan for such an expansion and Staff had invited the Applicant to run tests of the site's longer term capacity. It was the peer reviewer's judgement, however, that the approach used by TER, of assuming that this hypothetical Sobeys expansion would occur contemporaneously with the Wal-Mart expansion, was problematic and inappropriate. The proper procedure would have been to carry out impact tests of the- Wal-Mart expansion on Pickering's established commercial structure and existing array of supermarkets. Supplementary tests could then have been run of a hypothetical scenario incorporating a Sobeys expansion. MGP's examination of TER's November 2008 Pickering Supermarket Demand and Impact analyses found that the assumption in Table 7 that Sobeys would expand by 2011 and achieve the benefit of a stronger share of the Pickering market and higher sales volumes did not test, and in fact obscured, the potential competitive effects of a Wal-Mart expansion on the existing Sobeys store and other Pickering supermarkets. The Pickering Sobeys is currently experiencing the lowest sales volumes (amongst. Pickering supermarkets) on a sales per sq ft basis, according to MGP's estimates. It is also the closest supermarket to the Wal-Mart store so the potential impact on Sobeys of introducing a Wal-Mart food store component warrants particular attention in a supermarket impact analysis. MGP requested that TER provide a Supermarket Directional Impact Analysis like Table 7 which shows the effects of the proposed Wal-Mart expansion food component without the expansion of Sobeys.TER provided MGP with that analysis (Table 8) in the December 23 Revised Analysis table set. 3.13 In response to MGP's December 15th request TER advised that they would TER December 23 submit a new analysis based on a revised first full year of operation of the 2008 Revised proposed Wal-Mart expansion (from 2012 to 2011). Analysis After discussion with Staff, MGP sent TER a summary of issues and MALONE GIVEN PARSONS LTD. 3-7 ATTACHMENT -Z TO REPORT# PD-2--42-2- 151 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER REVIEW ANALYSIS problems identified by the peer review analysis of the original TER report and suggested TER address them in their revised analysis. TER submitted a complete new set of tables presenting a revised analysis, to the City and MGP on December 23, 2008 (Attached to this report in Appendix C). TER's responses point out that they do not agree with all of the changes that were requested by MGP. The TER December 23`d Revised Analysis should be regarded in some respects, therefore, as tables prepared on a cooperative basis in order to test input factors and assumptions the peer reviewer regards as more conservative and more appropriate for the purposes of testing impact. The peer review examination of the TER Revised Analysis first checked to determine what changes were made and particularly whether it: a) incorporates population growth forecasts acceptable to Pickering and Ajax Planning Staff, b) tests the introduction of proposed development with a first full year of operation in 2011, c) includes a Supermarket Directional Impact Analysis testing a scenario in which the Pickering Sobeys Supermarket is not expanded, d) provides tests of demand and directional impact for Pickering Supermarkets based on calculations incorporating substantially lower Pickering Supermarket expenditure potential and 2008 store sales volumes and performance levels more consistent with industry information. MGP's examination confirmed that the December 23, 2008 TER Revised Analysis does address each of these four areas in the manner requested in MGP's peer review requests. TER reports that the results of their Revised Analysis generate the same Conclusions developed in their original November, 2008 market impact study. TER's Revised Analysis, like the original report, finds that no market and impact issues arise from the proposed development with regard to Department Store and smaller specialty retail stores in Pickering. MGP agrees with TER's conclusion in that regard in the original November 2008 report and agrees that the important considerations of a market impact study for the proposed development and required OPA and ZBA applications relate to Pickering's Supermarkets and other Food Stores. MALONE GIVEN PARSONS LTD. 3-8 ATTACHMENT#_L, _'TO ' 152 REPORT# PD__Z_ 2 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER RE VIEW AN4LYSIS The most important tables in TER's Revised Analysis, therefore, are Table 6 Supermarket & Grocery Alarket Demand & Impact Analysis and Table 7 & Table 8 Supermarket Directional Impact Analysis. TER changed these tables in the Revised Analysis at the request of MGP by significantly reducing the Supermarket & Grocery % share of the FOR expenditure potential available to Pickering Supermarkets (from 87% & 89% to 75%). While there are very likely other factors involved, MGP selected that key variable as a simple change to `tune' (i.e. lower) the amount of Supermarket expenditure potential available to Pickering Supermarkets in the 2008 base case. This produced numbers closer to the actual 2008 aggregate Pickering Supermarket sales information obtained by MGP and therefore is regarded as a more realistic basis for tests of impact from any new development. MGP's examination identified the need for further adjustments to correct the distribution of total Pickering sales between individual stores in the 2008 base case in TER's Revised Table 7 & Table 8. TER's 2008 sales volume allocations at some locations are judged to be understated while others are overstated. MGP took the need for adjustments to these figures into account when evaluating these tables as discussed later in this report section. 13.14 TER's Table 8 Supermarket Directional Impact Analysis, which is based Table 8 on the revised assumptions requested by MGP, tests a scenario in which Supermarket Sobeys does not expand their store in the period under examination. Table Impact Analysis 8 is reproduced below, followed by MGP's evaluation of this analysis. TABLE 8 - NEW - AIMS CITY OF PICKERING RETAIL MARKET DEMAND AND IMPACT ANALYSIS SUPERMARKET DIRECTIONAL IMPACT ANALYSIS WITHOUT SOBEYS ;,,i. Cn' re' iStw;*H'.v' NCf1:315 on mw YOV Ylwd?l Fr_NSeQ. eVN ^,r,:FPrg ti:eVel fTtaT 16nTCry19.T M1:02?a ~.?9Ct':';ikrr3Nt JaNys IRa^. F:v? 2000 D9!Ure IM-,) Pin•arr zv. Certre; Superoa~a'N Fuaa;. •;n.ptd^.S CeM•tt 6urcep:;sx: p MIN SNet Fepnf°" Amo RH/Je1T8^ 5:19,! pal 5412 126'. $199 319.3 $166 1. a. ;N:Rt unst 3"..;Ja4ir,' zcM tC0:3% 13.4% 29 c.1 !9.:': 1154 117% " 916 11 PEta WM. ffama!'n u.!% '2A% 16:% ?0 C% 1.5% 12.0% 7C 1.2. TJTAL:A.E7^ 51534 - 321.3 3602 $29! 522T 519.5 5209 at VIL"ft-ra;W 261.30: S:.C02 ?C•'.fl: 2`..C6: tt:CO :5.7:0 48 !CC 1A so"pw E;R.° 956: 171 ; 3a#3 51, ~:4 5595 5330 SIM 1.+. 2011 FWN PA YNt M W"Ist EapeM'_ Ca1et N9m .7ldyHN Aleileats'' 6?!UT !'9 31^! 521., 5144 Ftc4 31!a 312.. Par:Mt MatOH 7!1Yi "1!fiJR Zall![C 13,% ZA% '.4 i!: 1736'. 47.9% > c% 3.1': Z 1?oa'E1iC'Ia!'" 5. % 'S 7Y. +0.:% t: 9% !20% :J% 27.0% T7TA 3A;E.3• - S•'?' 4142 126' b- 'E6 1!9.9 515.7 734Ye ery,W,, t•. ex 3C.03: .77 3!.,V 4t .:C0 'a- C:r 3eNa Pea.,J It 55^ 3:+' 3345. 6rC^: 3596 JE'0 w'1 '5312 +ktoertCrow W. Car 4.Q -1.7'4 i3% E.7\ 20'14 :Net ^~m RlQY.4N R:fAfrtt 5!'01 546.' .223 1'.5 54'9 113.5 =trvnt5ta'xtt 0!!n 'Sa^aR.-:1t" 1CC ^3:% :8 a1 '35% SzSy t: 51% iirEw+'ExnNi-^ :_1 '6»h !0.2K 1:. 5'1 r2. M. ::.G. T'7Grti :A.E2 " 3201= i7D 2 F.9 ! 370. ; I`!, r QZ 4744'6". ^!:G7 31:0 1!JCO 48'W '.C.32C 1NL per eq. 0. S[e! So-: )ST. :..0`. 5.:6 53:' L:EE lttra'r3ClYetge QAM Pat C{A ct.25: 10J'4. [7i'.: !3% 12B% 14.21E 0,'ti ra 2014 ONet 1w, 21!413 Kea l5atdet35' br?A.' 3211 513' 329.7 $2 7 3211 0!5.6 141.- aereaR NilIN7m ~5!ury L2Te" :f;..% '3:% 26 aS WnW?.DAEtII3*' °.63% f2»h 7'7741:91-E+^" 52201 32'.3 SE1? 3! .C 325.2 E3l.2 SU7 3IJ.9 5%wo F"twp `.i l= X= :!9x,702 23.X: SL'C6 35 JC0 16X0 a.0.>9C SNN pares 2~ ST1: 3P:. 367d Jt':. 5E.7~ 5333 'V Y3v RM01(LGTY6g0 Y~Ni PW III, 721% .......294% :...243% w% 213%. 21.3%.. 1J.6% aa. - •~9r m.pnorenwane<ekwsrwT.est!zas.+xr. nrw eaweme.naTt:xcm'w reenam nrrr •eum ara !eA wcksitxar;s9reen. - _ a Is-re r+sarn.:esa,.rraenun.lterymum se rNk afleaurxt lair^ert t Spt ee[TaY OaMa:1[Ine!tWl.a!!<-Yn~v>ItW.ratad.Va'n IMW#.'cearni lxr A{p.aYat+iM'Nt o:Y. ana Ptl akkaunY:t.-rtve'nC¢c!o>'iH1vf [v.re ax ~Y. pvtft:ea1{aJarM.'! ~baawt. E+atnat>TNkf ~ueh2t'fEI9 MALONE GIVEN PARSONS LTD. 3-9 ATTACHMENT- f To REPORT# PD~9 ~ .e.,,-~_a,.. 153 Peer Review of Pickering Val-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER RE VIEW A ,VAL YSIS The revised TER estimate for 2008 Pickering Primary Zone Total (Supermarket) Sales is $163.4, which is much more in accord with MGP's understanding of the total 2008 sales volume of all Pickering supermarkets than TER's November 2008 estimate. Table 8 shows that all Pickering Supermarkets experience the effects of population increases and market growth between 2008 and 2014 which helps offset transfers of sales which occur due to increased competition. After conducting further interviews of owners/managers at Pickering supermarket locations in January, the peer reviewer concluded that TER's market share estimates and allocations of the 2008 -sales volume were understated at some locations and overstated at other locations. For the purposes of this peer review, however, Table 8 can be used to evaluate the reasonableness of TER's. findings and conclusions by taking into account the adjustments which are considered necessary. The TER analysis taken together with MGP's assessment indicates that all Pickering Supermarkets, with the exception of Sobeys, operate at levels considered healthy by industry standards. Pickering's Price Chopper and Loblaw's Supercentre were judged to be experiencing strong sales operating levels and/or not at risk of experiencing significant competitive impacts. It is our understanding that 2008 sales volumes at Pickering's Metro (Dominion) and of Allan's Your Independent Grocer (YIG) store in the Glendale Marketplace were lower than TER's estimates. The adjusted sales productivity levels of those stores and their locations in the growing Pickering market, however, suggest that they will be able to cope with the competitive impacts of additional food store space at the Brock Rd and Kingston Rd locations. The two stores that have been examined most closely, therefore, are the supermarkets located closest to the Pickering Wal-Mart, the No Frills and Sobeys. Information provided to MGP suggests 2008 No Frills sales volumes were more than $4.0 million lower than the TER Revised Analysis figure of $29.8 million, with sales performance per square foot in the order of $980 rather than the TER figure of $1190. At this lower productivity level, however, the No Frills is still a very strong performer by industry standards and is not judged to be at risk due to increased competition in a growing MALONE GIVEN PARSONS LTD. 3-10 ATTACHMENT#TO 1 5 4 REPORT# PD. Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0'F EER REYIEWANA, LYSIS market. Based upon this examination of the TER analysis we find that the only established Pickering commercial facility likely to experience significant adverse effects due to the additional competition generated by the proposed Wal-Mart food store component is the nearby Sobeys supermarket. The TER Revised Analysis estimates the Pickering Sobeys 2008 sales at $20.9 million and performance level at $430 per square foot. MGP's information indicates that the approximate actual 2008 sales for that store were under $18.0 million with sales performance levels about $368 per square foot. The Pickering Sobeys sales volume and productivity, when corrected, are currently below industry average and below levels considered satisfactory for a major chain full service supermarket before competition from new development is taken into account. TER estimates that the proposed Wal-Mart expansion will change the 2011 Sobeys sales to a level 4.7% below 2008 volumes. These transfers from Sobeys represent percentage transfers that would not typically be regarded as high levels of transfer or competitive effect. The main reason they raise concerns in this case is that the revised 2008 operating levels for the Pickering Sobeys store are already below levels considered optimal and reductions in sales may affect the viability of that store. The sales transfers estimated by TER reduce Sobeys 2011 sales volume to $1.0 million below its revised 2008 volumes. The same transfer level applied to the store's adjusted productivity level would reduce its performance level below $348 dollars per square Toot in 2011. Based on the TER table it would take about six years for Sobeys to return to its (adjusted) 2008 level. The Pickering Sobeys would therefore be an underperforming store location for a number of years until future growth permits recovery unless changes are achieved in its competitive position, which will create a challenging situation for Sobeys. These findings regarding the potential impact of the proposed Wal-Mart food store component raise a number of questions: 1. Is it likely that the increase in competition due to the proposed addition of a food store component in the nearby Pickering Wal- Mart would adversely affect the existing Sobeys supermarket located in the same commercial centre to an extent sufficient to MALONE GIVEN PARSONS LTD. 3-11 ATTACHMEMT#_LL --TO REPORT# PU_ 119 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER REVIEWAVALYSIS impair its viability and to put that store at store at risk of closure? The Pickering Sobeys is currently underperforming and would have its sales further reduced by the entry of a new competitor. Sales volumes in the order of $17.0 million or 327,000 per week or $348 per square foot are not satisfactory for a large full service supermarket. Supermarket chains in Ontario do sustain operations at these levels, however, for a variety of market strategy and corporate chain considerations. These considerations may well include the potential, for Sobeys to improve its productivity by changes to its merchandising approach, since the higher sales performance of other chains in the Pickering market demonstrate the presence of market support. Sobeys will also be aware of the opportunities to improve its position as anticipated significant increases in Pickering population occur. While it is true that new competition from a Wal-Mart food store component may contribute to and increase the risk of a Pickering Sobeys store closure, the competition and competitive effects shown by the analysis are not excessive and would be well within industry norms. 2. In the event that increased competition from the proposed Wal- Mart food store component was "the last straw" which led to the Pickering Sobeys store closure what, if any, would be the commercial area planned function impacts or the concerns from a planning perspective? It is our judgment that this is a matter of competition. between major chains rather than a commercial area planned function issue. In the worst case scenario, if the Wal-Mart expansion were to lead to a closure. of the Sobeys store we would anticipate no difficulties re-tenanting the Sobeys premises at this strategic Pickering location. The Wal-Mart food store would replace Sobeys role and function in providing food store services to area residents and as an anchor for the Brock Road and Kingston Road Specialty Retailing Node. This would, therefore, represent a change rather than an adverse impact on the node's planned function. Similarly we do not identify any significant adverse effects or impacts on other Pickering or Durham Region commercial areas or their planned function if this change were to occur. MALONE GIVEN PARSONS LTD. 3-12 ATTACHMENT#_2LT0 ~ 5 6 IEPORT# PD L 9 - o_~....f1 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER RE, VIEW ANALYSIS 13.15 As previously discussed the prospective future expansion of Sobeys is Table 7 hypothetical at this time. TER's Revised Table 7 assumes that a 10,000 Supermarket square foot expansion will take place in 2010 (first full year of operation in Impact Analysis With Sobeys 2011) and can therefore serve .as a scenario testing the impact effects of Expansion this hypothetical development. It must be noted that there are no indications we are aware of at this time signalling that Sobeys plans to expand their Pickering store commencing in 2010, so the expansion and timing assumed in TER's test are considered speculative. The TER analysis assumes the Sobeys expansion occurs at the same time as the Wal-Mart expansion and that the expanded Sobeys store then obtains a larger share of Pickering Supermarket sales, an increase in sales volumes and an improvement in sales performance, notwithstanding increased competition from the new, nearby Wal-Mart food component.. TER's assumptions are possible but are by no means certain or even likely. A Sobeys expansion and a subsequent improvement in market position would be highly dependent on corporate considerations at the Chain and regional level and more complex merchandizing initiatives than simply increasing store size. The Pickering Sobeys store is currently a large store by that chain's standards (larger, for example, than the Sobeys outlets in Ajax) and is a full service store which already contains feature departments such as a Pharmacy. Presumably Sobeys would determine whether to and when to proceed with a change to their store having regard for, amongst other things, their assessment, of the costs of development and return on investment (ie whether Sobeys thinks an expansion would improve market position). For the purposes of this peer review, therefore, MGP does not rely upon TER's assumption that an expansion of the Pickering Sobeys would improve its market performance and sales productivity. In our view the planning related considerations arising from a prospective future expansion of Sobeys as contemplated in the SmartCentres application are as follows: 1. Is there a need or market demand for a 10,000 square foot future expansion of the Pickering Sobeys store? MALONE GIVEN PARSONS LTD. 3-13 ATTACH MENT#- ~---TO EPORT# PD 19 -0 l 1.57 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 3.0 PEER REVIEW ANALYSIS It is our view there is an opportunity to compete for additional Pickering market support over the short term but no assurance an expansion initiative is worthwhile. We regard this as a corporate chain judgement call at present but note that longer term population increases in Pickering and Ajax will increase demand and will make this opportunity more attractive. 2. Is it reasonable to expect a 10,000 square foot expansion of the Pickering Sobeys store in 2010 to provide Sobeys with a stronger competitive market position against the proposed addition of a food store component in Wal-Mart than can be achieved within their current premises? It is our view that this is possible but not necessarily true and may not be the only or best market strategy available to Sobeys so the initiative will depend on a Sobeys corporate chain judgement call. 3. Would a 10,000 square foot future expansion of the Pickering Sobeys store have potential adverse impact consequences for established Pickering supermarkets and/ or adversely affect any Pickering or Durham Region commercial area or its planned function? In our judgement a 10,000 square foot future expansion of the Pickering Sobeys store would not have potential adverse impact consequences for established Pickering supermarkets and/ or adversely affect any Pickering Or Durham Region commercial area or its planned function. MALONE GIVEN PARSONS LTD. 3-14 ATTACHMENT# TO Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 4.0 COArCLUSIOyS 4.0 This report section provides a brief summary of MGP's conclusions and PEER REVIEW observations regarding the peer review of the TER market study submissions CONCLUSIONS and the development proposal under examination. 4.1 The proposed development involves changes to and enlargement of existing retail buildings in an existing commercial centre on lands designated Specialty Retailing Node in the Pickering City Official Plan. SmartCentres 528,000 square foot (49,000 square metre) shopping centre is situated on 48.34 acres at Kingston Road and Brock Road in Pickering. The centre's tenants currently include a Wal-Mart Department Store, a Sam's Club, a Sobeys supermarket, Toys "R" Us, Winners, PetSmart, Reitmans, and Mark's Work- Warehouse. [It was recently announced that the Sam's Club will be closed and is in the process of being re-tenanted] 4.2 We are advised that the redevelopment will modernize and upgrade the existing Wal-Mart and expand its food store component and that is consistent with our observations of Wal-Mart expansions in other Ontario municipalities. The proposed development would add 34,500 sq. ft. (3,205 sq m) of floor area, of which approximately 30,500 sq ft will consist of food store space. Also contemplated by the Application submitted to the City is a prospective future 10,000 sq ft (929 sq m) expansion of the existing Sobeys supermarket. The proposed changes can be physically accommodated on the subject site lands and previous site planning for the centre anticipated future expansions of the Wal-Mart building and the Sobeys supennarket of the sizes proposed. 4.3 The proposed development requires amendments to the Official Plan in relation to the following: The City's Official Plan in Chapter 3- Land Use, City Policy Mixed Use Areas, states: (g) within the Specialty Retailing Node; (i) prior to zoning for significant retail floor space, shall require the submission of a retail market impact study justifying, to the City's satisfaction in consultation with the Region of Durham, that the addition of such floor space will not adversely affect the planned function of the Downtown Core, the Community Nodes, and nearby Main Central Areas in other municipalities in the Region. MALONE GIVEN PARSONS LTD. 4-1 ATTACHMENT#r..,d---- TO 'EPORT 159 Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 4.0 CONCLUSIONS iii) for lands north of the Pickering Parkway shall establish a maximum aggregate gross leasable floor area of 49,000 square metres for all special purpose commercial uses permitted by Table 5; 4.4 SmartCentres has submitted applications for an Official Plan Amendment and a Zoning By-Law Amendment to the City of Pickering and retained Tate Economic Research Inc. (TER) to carry out the required market justification and impact study. The City's Planning Staff have engaged Jeryl Jaque and Malone Given Parsons Ltd. (MGP) to undertake a peer review of the TER study and provide advice to the City. From an overall, general point of view the methods employed by TER in conducting their November, 2008 "SmartCentres Development Retail Market Demand and Impact Analysis, City of Pickering ON" follow accepted industry practices for studies of this nature and have been applied appropriately. However, MGP determined that, in its original form, the TER analysis could not be relied upon and re-analysis incorporating changes and adjustments would be necessary. TER submitted a complete new set of tables presenting a revised analysis, to the City and MGP on December 23, 2009. The TER December 23`d Revised Analysis should be regarded as tables prepared on a cooperative basis in order to test input factors and assumptions .the peer reviewer regards as more conservative and more appropriate for the purposes of testing impact. 4.5 TER's Revised Analysis, like the original report, finds that no market and impact issues arise from the proposed development with regard to Department Store and smaller specialty retail stores in Pickering and MGP agrees. - MGP agrees with TER's conclusion that the important considerations of a market impact study for the proposed development and required OPA and ZBA applications relate to.Pickering's Food Stores. The focus of the peer review of the TER report and Revised Analysis, therefore, pertains almost exclusively to market demand and impact as it relates to Pickering's Supermarkets. MALONE GIVEN PARSONS LTD. 4-2 'jTACHMENT# L ? TO t ; 6 O 3EPORT# PD _ v Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 4.0 CONCLUSIONS 4.6 It was the peer reviewer's judgement that the approach used by TER, assuming that a 10,000 square foot expansion of the 48,600 sq ft Sobeys store "located on the SmartCentres site would occur at the same time as the proposed Wal-Mart expansion did not test, and in fact obscured, the potential competitive effects of a Wal-Mart expansion on the existing Sobeys store and other Pickering supermarkets. MGP requested that TER provide a Supermarket Directional Impact Analysis like Table 7 which shows the effects of the proposed Wal-Mart expansion food component without the expansion of Sobeys.TER provided MGP with that analysis (Table 8) in the December 23 Revised Analysis table set. 4.7 The TER analysis taken together with MGP's assessment based on information provided by local store owners and managers indicates that all Pickering Supermarkets, with the exception of Sobeys, operate at levels considered healthy by industry standards. Table 8 shows that all Pickering Supermarkets experience the effects of population increases and market growth between 2008 and 2014 which helps offset transfers of sales which occur due to increased competition. Pickering's Price Chopper and Loblaw's Supercentre were judged to be experiencing strong sales operating levels and/or not at risk of experiencing significant competitive impacts. The sales productivity levels of Pickering's Metro (Dominion) and of Allan's Your Independent Grocer (YIG) store in the Glendale Marketplace (as adjusted by the peer reviewer) and their locations in the growing Pickering market, suggest that they will be able to cope with the competitive impacts of additional food store space at the Brock Rd and Kingston Rd locations. The two stores that have been' examined most closely, therefore, are the supermarkets located closest to the Pickering Wal-Mart, the No Frills and Sobeys. After adjustments made by the peer reviewer reducing the TER sales volumes estimates, the No Frills is still a very strong performer by industry standards and is not judged to be at risk due to increased competition in a growing market. Based upon this examination of the TER analysis we find that the only established Pickering commercial facility likely to experience significant MALONE GIVEN PARSONS LTD. 4-3 ATTACHMENT# Z9 TO REPORT# PD i 9 L2_, 1 Peer Review of Pickering Val-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 4.0 COiVCLUSIONS adverse effects due to the additional competition generated by the proposed Wal-Mart food store component is the nearby Sobeys supermarket. 4.8 The current Pickering Sobeys store sales volume and productivity, when TER's estimates are corrected, are currently below industry average and below levels considered satisfactory for a major chain full service supermarket. Supermarket chains in Ontario do sustain operations at these levels, however, for a variety of market strategy and corporate chain considerations. These considerations may well include the potential for Sobeys to improve its productivity by changes to its merchandising approach, since the higher sales performance of other chains in the Pickering market demonstrate the presence of market support. Sobeys will also be aware of the opportunities to improve its position as anticipated significant increases in Pickering population occur. Based on the TER table it would take about six years for Sobeys to return to its (adjusted) 2008 level. The Pickering Sobeys would therefore be an underperforming store location for a number of years until future growth permits recovery unless changes are achieved in its competitive position, which will create a challenging situation for Sobeys. While it is true that new competition from a Wal-Mart food store component may contribute to and increase the risk of a Pickering Sobeys store closure, the competition and competitive effects shown by the analysis are not excessive and would not exceed industry norms. It is our judgment that this is a matter of competition between major chains rather than a commercial area planned function issue. In the worst case scenario, if the Wal-Mart expansion were to lead to a closure of the Sobeys store we would anticipate no difficulties re-tenanting the Sobeys premises at this strategic Pickering location. The Wal-Mart food store would replace Sobeys role and function in providing food store services to area residents and as an anchor for the Brock Road and Kingston Road Specialty Retailing Node. This would, therefore, represent a change rather than an adverse impact on the node's planned function. MALONE GIVEN PARSONS LTD. 4-4 ~ JTACHMIE T# 6 2 IEPORT# PO Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 4.0 CONCLUSIONS Similarly we do not identify any significant adverse effects or impacts on other Pickering or Durham Region commercial areas or their planned function if this change were to occur. 4.9 The TER analysis assumes a Sobeys expansion occurs at the same time as the Wal-Mart expansion and that the expanded Sobeys store then obtains a larger share of Pickering Supermarket sales, an increase in sales volumes and an improvement in sales performance, notwithstanding increased competition from the new, nearby Wal-Mart food component. TER's assumptions are possible but are by no means certain or even likely. A Sobeys expansion and a subsequent improvement in market position would be highly dependent on corporate considerations at the Chain and regional level and more complex merchandizing initiatives than simply increasing store size. For the purposes of this peer review, therefore, MGP does not rely upon TER's assumption that an expansion of the Pickering Sobeys would improve its market performance and sales productivity. In our view the planning related considerations arising from a prospective future expansion of Sobeys as contemplated in the SmartCentres application are as follows: 1. Is there a need or market demand for a 10,000 square foot future expansion of the Pickering Sobeys store? It is our view there is an opportunity for Sobeys to compete for additional Pickering market support over the short term but no assurance that an expansion initiative is worthwhile. We regard this as a corporate chain judgement call at present but note that longer term population increases in Pickering and Ajax will increase demand and will make this opportunity more attractive. 2. Is it reasonable to expect a 10,000 square foot expansion of the Pickering Sobeys store in.2010 to provide Sobeys with a stronger competitive market position against the proposed addition of a food store component in Wal-Mart than can be achieved within their current premises? It is our view that this is possible but not necessarily true and may not be the only or best market strategy available to Sobeys, so the initiative will depend on a Sobeys corporate chain judgement call. MALONE GIVEN PARSONS LTD. 4-5 ATTACHMENT#--- 8 -....._T0 163 3EPORT# Pr)_ ZZ y Peer Review of Pickering Wal-Mart Expansion Market Impact Study Prepared by Tate Economic Research Inc. 4.0 CONCLUSIONS 3. Would a 10,000 square foot future expansion of the Pickering Sobeys store have potential adverse impact consequences for established Pickering supermarkets and/ or adversely affect any Pickering or Durham Region commercial area or its planned function? In our judgement a 10,000 square foot future expansion of the Pickering Sobeys store would not have adverse impact consequences for established Pickering supermarkets and/ or adversely affect any Pickering or Durham Region commercial area or its planned function. 4.10 Based upon our peer review analysis and findings, MGP agrees with the TER Conclusions as stated in the November 2008 "SmartCentres Development Retail Market Demand and Impact Analysis report and restated in the TER December 23`d, 2008 Revised submission. Additionally the peer review examination indicates that the same conclusions can be applied if only the Wal-Mart development proceeds as proposed at this time and expansion of the Sobeys store does not take place until some later date. It is MGP's assessment as well that the proposed development has no market or planning implications related to the change in the maximum aggregate gross leasable cap or store size constraint policies specified for the Specialty Retailing Node. MALONE GIVEN PARSONS LTD. 4-6