Edmonton (Alta.) - 1996-1999 - DP7_Developing a made in Edmonton approach (1998-09-08)

W LIBRARY

11

1111 II 1

127050 Developing a made In Edmonton Edmonton. Planning

1266

Directions for a New Zoning Bylaw

DEVELOPING A MADE IN EDMONTON PERFORMANCE APPROACH " DISCUSSION PAPER #7

PiannIng and ID,zwAopment ItRY 1

ehiciOnton 313.1a .E3 E373 19961999h

PLANNING AND DEVELOPMENT

Planning and Policy Services Branch September 8, 1998

'zit' Edmonton

Table of Contents 1. Introduction

1

2. Developing A Performance Approach

1

3. Conclusion

11

Table 1 International Experience With Permformance Based Planning

6

Figure 1 Developing A "Made In Edmonton" Performance Approach

9

Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach

i

1.

Introduction

This paper continues the discussion on the performance approach introduced in Discussion Paper #5. In Figure 1 of that paper, performance based planning enhancements were depicted at the top of a pyramid, the third component of a "Made in Edmonton" approach. Of the three components, performance based planning is the least well known and requires further description in order to guide the communication strategy for the first and subsequent rounds of public and industry consultation.

This paper is intended to further educate the reader about the performance approach and to guide the research and development efforts of the architects of the new LUDO (Land Use Development Occupancy) system and the new Zoning Bylaw.

A number of questions need to be addressed: 1) What is the difference between Performance Based Planning (performance approach) and Performance Based Zoning? When should they be used?

2) What advantages does the performance approach have over traditional zoning and when is this approach appropriate?

3) What lessons can be learned from international experiences with the performance approach? In particular, what strategies should guide the performance approach?

4) The performance approach has a number of "entry points" into the proposed LUDO system and into the new Zoning Bylaw. What are these "entry points" and how might the performance approach be integrated into a "Made in Edmonton" solution which is customer-oriented rather than regulatory?

2.

Developing a Performance Approach

1) What is the difference between Performance Based Planning (performance approach) and Performance Based Zoning? When should they be used?

For the purposes of this discussion, Performance Based Planning (abbreviated to the performance approach) is a term which encompasses Performance Based Zoning. The performance approach is preferable to that of Performance Based Zoning since it opens up the discussion to consider both the policy and regulatory environments in which land use and development decisions are made.

Performance Based Planning (PBP) deals with both land use planning and development standards.

Land use planning accommodates the hierarchy of land use (policy) plans from city-wide (i.e.

Municipal Development Plan) to local area plans (i.e. area structure plans, plans of subdivision).

Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach 1

This is largely a policy-making exercise which is implemented through a translation into development standards.

Development standards refer to regulations which are described in zoning bylaws, building codes, subdivision regulations, licensing requirements and other regulatory practices.

Performance standards in a Zoning Bylaw bear a striking resemblance to conventional zoning regulations and indeed, there is overlap. Both are regulatory instruments which serve to implement land use policy. However, the use of performance standards goes further than conventional regulations to enhance the public interest however it becomes defined.

Performance standards, for example, may expand on public concerns to include environmental (air quality, water contamination, odor, noise, traffic, tree preservation) and design (energy efficiency, streetscape character, visual and acoustic privacy) standards. In addition, performance standards have an advantage over conventional zoning regulations in terms of spatial coverage. Performance standards (zoning) have been predominately developed for large vacant sites undergoing comprehensive or planned development. Performance standards can also be applied within the building envelope (i.e. facility operations, compatibility of uses) as well as for a broader off-site area (i.e. risk contours for heavy industrial uses). Conventional zoning regulations, for the most part, deal with a single site, encompassing the exterior of the building (building envelope) and the space in between, up to the property line.

Performance Based Planning or performance approach works best where clear public (policy) objectives guide the development and application of such regulatory instruments as zoning bylaws. The recently approved Plan Edmonton provides a good policy basis and starting point for determining appropriate performance based planning enhancements. Appendix I in Discussion Paper #5 outlines several possible planning issues, drawn from a review of Plan Edmonton, which provide a starting point for developing a performance approach.

Performance (Based) Zoning (see Discussion Paper #3) is a system of land use regulation based upon the application of specific performance standards relating to specific impacts of a proposed development. Performance standards can, for example, limit the intensity of development, control the impacts of development on nearby land uses, limit the effects of development on public infrastructure, and protect the natural environment. Performance zoning can regulate factors such as site planning, building design and facility operation to ensure compatibility.

Performance zoning dispenses with the large number of narrowly-defined and highly-specific use districts typical of traditional zoning. Theoretically, performance zoning may allow all possible land uses and establish a uniform system of performance standards. In practice, a small number of more generalized zones do remain, with some broad restrictions on types of use and different performance standards in the different zones.

The key to performance zoning lies in its regulation of land use through the establishment of standards intended to achieve specific public objectives. A common public objective is to limit the negative impacts of development on adjoining land uses and to ensure that development takes place within the capacity of the public infrastructure. Efforts are subsequently made to define the Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach 2

undesirable levels of such impacts, to develop standards to prohibit them, and to develop capacity levels for the site (i.e. maximum vehicular trip generation per acre for the effect of development on the transportation system).

Performance zoning works best when it is targeted to achieve public objectives relating to land use; when it allows for greater flexibility and innovation in determining land use and design; and when it is used to address issues on large vacant sites undergoing comprehensive (planned) development, within the building, or with a broader off-site impact.

2) What advantages does the performance approach have over traditional zoning and when is this approach appropriate?

Much of the world has become very comfortable with traditional zoning despite its well known shortcomings. This is due to its predictability and consistency of practice throughout many jurisdictions. Douglas Porter, in his study of flexible zoning techniques, notes four key flaws with traditional zoning.

1. Traditional zoning is static... it presents a predetermined and comprehensive land use pattern that fails to address the dynamic nature of development. And because zoning is often at odds with actual development needs and market demands, there is constant needs for amendments.

2. Traditional zoning serves local rather than regional interests since the reasons for allowing or prohibiting certain uses are unstated. Public officials often make arbitrary decisions and zoning can become a means of achieving special interests.

3. Traditional zoning cannot ensure high-quality development. At the site level, zoning controls only the building envelope and is often unable to address design matters. These matters are often left to be negotiated during the amendment process.

4. Traditional zoning involves administrative problems. While the designation of districts with permitted and prohibited uses should result in non-discretionary decisions on proposals, these regulations seldom reflect the desires of developers. The result is exceptions, variances and rezonings, all of which require further administrative processing and costs for a developer.

Many want regulatory systems that can offer greater flexibility and consistency.

Edmonton's Land Use Bylaw presently responds to these criticisms with a blend of traditional and some flexible zoning techniques and regulatory practices. Some elements of flexibility have been introduced in the Land Use Bylaw's traditional land use (zoning) districts. This works reasonably well for the majority of development but there are areas for improvement, indicated by appeals and amendments as well as by periodic public debates at Public Hearings at City Council over controversial development projects. In a typical year, there are some 12,000 development applications. About 20% of these require the granting of a variance or are classified as discretionary uses. Each year approximately 500 development applications are appealed to the Subdivision and Development Appeal Board. There are a further 75 to 100 rezonings a year, involving a change in land use and a Public Hearing at City Council. In addition to these site specific examples, where opportunities for a more "flexible" regulatory approach exist, there are the 40 to 60 amendments to existing statutory land use plans such as area structure and redevelopment plans which cover larger geogrvhic areas. Where flexibility Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach 3

and innovation in use and design are sought, in the current regulatory system, this is primarily achieved through amendments and appeals. Even direct control, often used to implement new and innovative developments, is applied through rezonings or through statutory plans or plan amendments - causing time and delay for the developer.

Many alternative regulatory approaches to zoning have been introduced - planned unit development, incentive zoning, overlay zones, floating zones, special districts, direct control, contract zoning and others - in an attempt to offer more flexibility. Performance Based Planning is a more systematic and wide reaching approach to the pursuit of flexibility. The advantages of the performance approach over traditional zoning are articulated in Kevin Harper's study entitled "Alternative Regulatory Approaches: International Experiences with Performance Based Planning." Together, he feels that the following factors allow developers to better respond to the demands of the marketplace.

1. Flexibility with respect to use, since it permits the mixing of uses while protecting property values and neighbourhood characteristics.

2. Flexibility with respect to design, since it permits greater variation and innovation in technology by removing lot restrictions, setbacks, and other dimensional specifications.

3. It provides a rational approach to land use control. The basis for land use decisions is a quantitative requirement instead of an arbitrary regulation.

3) What lessons can be learned from international experiences with the performance approach? In particular, what strategies should guide the performance approach?

Kevin Harper's study on performance based planning around the world has identified wide ranging experiences with the performance approach and provided many useful lessons for potential practitioners.

The origins of performance based zoning date back to the 1950s when it was proposed for industrial uses and was based on the environmental effects on the community rather than on the product being produced. However, it was not until the 1970s that performance based zoning begun to be used extensively, primarily in the United States. The first model performance zoning ordinance was pioneered in 1973 (Bucks County, Pennsylvania) to protect natural resources and provide flexibility in the design of residential developments. The performance approach has met with mixed success in the United States. Much more success has been achieved when it was transported to New Zealand and Australia where the federal government has instigated efforts at the local level. No European examples were found.

Table 1 outlines the international experiences with the performance approach. The information is drawn largely from the Harper study and is augmented by some recent literature and correspondence. Harper's study does a very good job in describing the lessons learned from this international experience and setting out possible strategies to guide the development of a performance approach.

Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach 4

The international experiences provide some valuable lessons for Canada.

The Zoning Bylaw cannot be entirely based on a performance approach. No municipality has yet developed a Zoning Bylaw based entirely on the performance approach nor is it being recommended in this discussion paper. Conventional or standard zoning still has a major role to play where predictability of outcome for routine cases is a desired outcome. The performance approach has to be skillfully targeted and woven into the text of the Zoning Bylaw. It works best where flexibility in use and/or design are required; where a few clear land use goals for selected land uses have been chosen for implementation; and where there is predictability and transparency of process for non-routine and innovative cases. It is also important to allow developers to choose between a conventional solution and an alternative one. Competent and skilled municipal staff are essential to assist developers in reaching a solution. A more detailed design and assessment process, along with a multi-disciplinary team approach, is recommended for more complex projects which are looking for non standard ways of achieving innovative projects.

Kevin Harper suggests a number of strategies to guide the development of a performance approach or for that matter, any new Zoning Bylaw and regulatory system.

In designing Performance Based Planning: • • • • •

make it simple.. .just a few goals and a few topics; make it straightforward...use easily defined and measurable criteria as much as possible; make it transparent.. .minimize the need for staff discretion and overt political intervention; make it credible.. .do solid and practical research, the ones that can be used by developers; and make it user-friendly...get to the point quickly.

In marketing it: • • • • •

nothing happens without committed and credible leadership; get everyone involved in a meaningful way; involve people early, preferably at the concept stage; (for the federal government) respect the provinces, but find a way to influence events; stress common goals, such as housing affordability and environmental protection; and stress continuous learning for politicians, regulators, developers, and consultants.

In administering it: • allow choice.. .Performance Based Planning as an overlay or parallel scheme rather than a replacement; • judgement is unavoidable.. .balance staff discretion with staff accountability; • avoid complexity at all costs.. .this is the real enemy; • stress consistency...same rules for everyone; and • accept the incremental nature of innovation.. .keep reviewing, monitoring and adjusting.

Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach 5

Table 1 Location

International Experiences with Performance Based Planning

Initiator

Bucks County, Penn., U.S.

Impetus or Major Goals local protect natural government resources, design of residential development

Fort Collins, CO., U.S.

local government

growth management policies

Largo, FA., U.S.

local government

handle rapid development, streamlined approvals

Tallahassee, FA., U.S.

local government

compatible mixed use development

New Zealand

federal government

environmental goal, sustainable management

Australia

federal government

growth management by supporting medium density housing

Major Product or Outcome amendments to the zoning ordinance, amendments to the subdivision and land development ordinance development guidance system (development review process)

comprehensive plan, comprehensive development code with a whole section on performance standards broad zoning districts and some PBZ for mixed use development

Degree of Success 30 of 54 municipalities have a PBP component in their zoning ordinance repeal of PBP in land use plan and zoning ordinance, leaving only PBP in the development review process employment of professional staff to develop present development code

Assessment impetus was concern for the environment promotes clustering of residential development on environmentally sensitive sites repeal of much of PBP came after a controversial development decision development guidance system still in use

development code provides extensive coverage over planning and development matters

return to conventional zoning

lack of predictability and confusion, failure to achieve main goal - mixed development some performance inconsistent no national guidelines or criteria and review practices information to standards set at and some municipalities local level conflicting inconsistent practices and objectives between goals different municipalities model Armidale most successful keys to success Residential application of consistency of approach, Development Code PBP with buy in marketing, specific goal, to be used in the from model code, role of Zoning Bylaw municipalities federal government and developers

Notes: 1. PBP is Performance Based Planning 2. PBZ is Performance Based Zoning 3. an ordinance and a bylaw mean the same thing

Directions for a New Zoning_ Bylaw: Developing a Made in Edmonton Performance Approach 6

4) The performance approach has a number of "entry points" into the proposed LUDO (Land Use Development Occupancy) system and into the new Zoning Bylaw. What are these "entry points" and how might the performance approach be integrated into a "Made in Edmonton" solution which is customer-oriented rather than regulatory?

Figure I illustrates the three "entry points" for the performance approach into a new regulatory framework for managing land use, development and occupancy in the City of Edmonton. These are the same "entry points" for other changes as well, including efforts to modernize the Zoning Bylaw and to introduce LUDO's service improvements. Figure 1 is intended to begin the discussion on how a performance approach might work or benefit from the service improvements identified in Discussion Paper #2 (Creation of a New Regulatory System).

This discussion also can provide direction to the research and development efforts of the architects of the new LUDO (Land Use Development Occupancy) System and the accompanying new Zoning Bylaw. Finally, the discussion applies, wherever possible, the lessons learned from international experiences with the performance approach as well as the strategies, identified by Kevin Harper, to guide its development.

The first "entry point" for the performance approach is the development of a solid policy foundation. Figure 1 identifies some of the policy tools and how they might contribute towards the development of the performance approach. • Link to Plan Edmonton - Appendix 1 of Discussion Paper #5 contains seven possible planning issues which are a starting point for introducing performance based planning enhancements. Discussion Paper #6 (Plan Edmonton's Influence) also provides a good starting point with a more detailed analysis of Plan Edmonton. The document compares Plan Edmonton's strategies, from the five municipal government responsibility areas, with an analysis of implications for the new Zoning Bylaw. Other municipalities with performance based planning systems have identified a few simple planning goals which are subsequently addressed through a performance approach. •

Other Statutory Land Use Plans - American examples of the performance approach often cite broad land use categories (future land use map) within their municipal plans, of which some of these categories become the focus of a performance approach. The City of Edmonton currently does not employ such categories but these could be created, possibly at a policy level somewhere between Plan Edmonton (city-wide) and the neighbourhood level. In addition, performance criteria could be introduced into existing area and neighbourhood plans in order to achieve major planning goals. See the previous discussion.

• LUDO Policy Report - This Report provides an ongoing policy-making vehicle which involves the participation of City Council and the administration. Performance measures could be developed and evaluated in such a forum. City Council would play a more proactive role in determining how major land use and development issues should be dealt with rather than dealing with these issues, as they presently do, on a site specific and incremental basis.

Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach 7

• POSSE Extension- The existing computer technology needs to be extended to support the preceding LUDO Policy Report. Good "intelligence" on major land use issues and on how the City's urban form and development pattern is evolving is required. Since 1994, the City's Planning and Development Department has spear headed the development of a customized computer software system (POSSE). This leading edge technology has been developed to manage information, workflow and customer services related to such "jobs" as land development services, planning approvals, inspection services, civic land and property management and information management services. The extension of this technology to policy research and decision-making is also available but presently underutilized. The performance approach will provide a stimulus to the extension of POSSE for this purpose.

The second "entry point" for the performance approach is development review. This involves a wide range of steps and procedures as well as personnel practices and skills. The performance approach places additional requirements on this vital regulatory component. Figure 1 describes a new set of practices which have application to basic service improvements, some of which could be related to the performance approach. American and Australian examples emphasize the need to implement new development review measures and to develop staff competencies.

• Front Door Customer Service - The performance approach should be targeted to those applications where flexibility and innovation in use and/or design are required to meet particular market needs. This has several implications. Firstly, the LUDO system requires the efficient sorting and allocation of applications to the appropriate review stream.

Secondly, a different, and more detailed design and assessment process for these more complex projects is usually necessary. Finally, the strength of the performance approach must lie in its predictability and transparency of process for non-routine and innovative cases.

This results in consistency of practice for all the customers of planning services, a very important goal.

• Development Coordinators - According to Kevin Harper, complexity (confusion) is the real enemy of the performance approach. The LUDO system recommends the creation of a new position or job function, that of the Development Coordinator to guide the more complex and difficult proposals through the system. The Coordinator would help to ensure that all information and regulatory requirements are met in a timely fashion. The Coordinator could act alone or be part of a multi-disciplinary team. The performance approach would entail specific core competencies to be acquired by the Development Coordinator.

• LUDO's Guide to Decision-Making Handbook - One of the criticisms of the present Land Use Bylaw is the over-reliance on the Development Officers' use of discretion and the often corresponding absence of a policy link to this use of discretion (see Discussion Paper #3, pages 18 and 19). This exercise in the use of discretion, to the public and customers, often is reflected solely in a determination whether additional public notification is required. The Development Officers' Technical Manual is intended to assuage these criticisms. The Manual would be a public document. It would not be a regulatory tool but could provide

Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach 8

Figure 1 Developing a "Made in Edmonton" Performance Approach

Link to Plan Edmonton

Front Door Customer Service

Performance Zoning

Other Statutory Land Use Plans

Development Coordinators

LUDO Policy Report

LUDO's Guide to Decision-Making Handbook

Performance Standards and Incentives

POSSE Extension

Civic Review

c.) eC .

4.) g 0, =1

4 4,)

41.)

43 CZ "t 41)

POSSE Extension

0 No

Public Input

Note: For further related readings, please see Discussion Papers #2 (Creation of a New Regulatory System), #5 (A Made in Edmonton Approach) and #6 (Plan Edmonton's influence).

Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach 9

guidelines and a collective wisdom in dealing with specific design and land use problems.

Like the performance approach, it would promote good quality urban development. It could also contain other valuable customer information on related topics such as historic building designation, environmental site assessment, principles of suburban neighbourhood design and crime prevention through environmental design. The performance approach could contains various performance guidelines that would be referenced in such a document.

•

Civic Review - The LUDO system recommends the development of a seamless system of development review. This can only benefit any performance approach. At least one American jurisdiction has gone so far as to develop a comprehensive development code (see Table 1). On occasion, municipal servicing and other requirements are slipped into the development permit stage. This practice implicitly recognizes the importance of introducing various performance expectations from other civic departments and public agencies. In other words, can the proposed development be serviced by the existing municipal services and infrastructure, or if not, what additional off-site servicing standards must be meet. The performance approach can assist the development of a seamless system by introducing explicit performance standards in development review and through a more detailed design and assessment process.

• POSSE Extension - The performance approach has specific application to more complex and innovative development proposals. This will require additional information, civic review and procedural changes which would benefit greatly from the extension of POSSE for this purpose. For example, POSSE could establish a new lob" category for these development proposals (see previous discussion on POSSE extension on pages 6 and 8), and identify and monitor the more detailed design and assessment process which is required.

• Public Input - The LUDO system recommends public input at the pre-decision stage by the development officer, at least for some of the more complex and innovative development proposals. The American and Australian experience with the performance approach provides much useful guidance and tools in this regards. In one American example, the citizens eliminated much of the performance based zoning but retained the development guidance system with its strong emphasis on pre-decision design consultation between developers and citizens (see Table 1).

The third "entry point" for the performance approach is the Zoning Bylaw and other regulatory instruments. Figure 1 describes two performance based tools.

• Performance Zoning - Alternatively known as Performance Based Zoning, this zoning system is described earlier in this discussion paper. It is important to note that no Zoning Bylaw currently exists anywhere in the world which is exclusively comprised of performance zoning. Performance zoning may manifest itself in a Zoning Bylaw either in a specific zoning district or it may form the basis for some of the specific or general administrative regulations. An example of the latter is found in Sections 73 and 74 of Edmonton's current Land Use Bylaw (Performance Standards for Industrial Development; General Performance

Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach 10

Standards for Non-industrial Development). A better example of performance zoning comes from recent efforts between the City of Edmonton and the Major Industrial Accident Council of Canada (MIACC). This has been an effort to develop risk-based land use planning guidelines for the separation of heavy industry from residential areas. The MIAC Land Use Planning Guidelines require the definition of an "acceptable level of risk" and provide for risk assessment to be part of land use planning. • Performance Standards and Incentives - Performance standards, mentioned in the previous item, as well as performance incentives have wide application. Standards can be customized for specific application. Where possible, standards should consist of quantifiable rather than qualitative measures. Performance standards can be adopted in a whole variety of regulatory instruments other than the Zoning Bylaw. These include licensing requirements, subdivision regulations and terms of reference for statutory land use plans, among others. Performance incentives can include financial as well as regulatory ones. The City of Edmonton, for example, provides municipal tax incentives for the rehabilitation of historic buildings.

Planners are familiar with such regulatory incentives as bonus incentives and the transfer of development rights, particularly for large or comprehensive developments.

3.

Conclusion

The performance approach has very good potential for application in the City. of Edmonton's efforts to develop a new Zoning Bylaw and a new regulatory framework for managing land use, development control and occupancy in the next two years. This discussion paper is intended to educate the reader about the performance approach; to assist the communication strategy in terms of its awareness and recognition of this important planning approach; and to guide the research and development efforts of the architects of the new LUDO (Land Use Development Occupancy) system and the new Zoning Bylaw.

What emerges should be a "Made in Edmonton" performance approach. The performance approach should be seen as an enhancement to current zoning and regulatory practices which produces several clearly articulated outcomes. The new Zoning Bylaw will continue to rely on conventional zoning for the majority of developments where predictability of outcome for routine cases is a desired outcome. The performance approach has to be skillfully targeted and woven into the text of the new Zoning Bylaw and into the new LUDO system. The performance approach works best where flexibility in use and/or design are required; where a few clear land use goals for selected land uses have been chosen for implementation; and where there is predictability and transparency of process for non-routine and innovative cases. It is also important to allow developers to choose between a conventional solution and an alternative one.

Taken together these factors allow developers to better respond to the demands of the marketplace.

Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach 11

Figure 1 illustrates the three "entry points" for the "Made in Edmonton" performance approach into the regulatory system. Thus far, the journey has just begun with the (policy) link to Plan Edmonton.

Directions for a New Zoning Bylaw: Developing a Made in Edmonton Performance Approach 12