REGIONAL BOARD REPORT

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REGIONAL BOARD REPORT Administrator s Office For the Board August 21, 2008 DATE: August 14, 2008 FILE NOS.: A-07-06377/8/9.000 FROM: RE: Chief Administrative Officer OCP and Zoning Amendment Application Phased Development Agreement Owner: Pearl Amanda Quintal (with right to purchase by Willow Beach Homes Ltd. Inc. No. BC0795016); and Willow Beach (GLD) Developments Ltd. Agent: Timothy Ankenman (Ankenman-Marchand Architects) Address: 8407 & 9330 Lakehead Campsite Road; and an unknown civic address, Electoral Area A Legal: Lot 1, Plan 22229, District Lot 2450S, SDYD; Lot 675, Plan 2066, District Lot 2450S, Except Plans 22229, 43613, H9726, SDYD; and Lot 1, Plan 25038, District Lot 2450S, SDYD POSTPONED MOTION from August 7, 2008 Board Meeting: It was MOVED and SECONDED WHEREAS the potential impact of the proposed high density development on the rural character and adjacent sensitive riparian area are of concern for growth management in Electoral Area A ; THAT the developer, Willow Beach (GLD) Developments Ltd., reconsider the scale and density of the proposed development and submit a revised development proposal that achieves a reduction in the potential impact of the development on the rural character of Electoral Area A as well as on the environmental sensitivity of the site and adjacent riparian areas. Background: The purpose of this application is to propose an amendment to both the Electoral Area A Osoyoos Rural Official Community Plan (OCP) Bylaw No. 2260, 2004 and the Electoral Area A Osoyoos Rural Zoning Bylaw No. 2261, 2004. The bylaw amendments will facilitate the development at the north end of Osoyoos Lake of 1,088 residential units in a mix of high, medium and low density residential and commercial development as well as park and conservation components. Further, under consideration is a Phased Development Agreement that ensures that the provisions of the Willow Beach Zoning Amendment Bylaw apply for a period set out in the agreement and that the lands are developed in the phases and in the sequence set out in the agreement. Below is a summary of the development process to date, information that was available to the public at public hearing. Page 1 of 6

April 3, 2007 Development application for Willow Beach Developer s proposal The project contemplates a mixed use development comprised of approximately 800 residential units a mixed-use waterfront commercial village, and a wine-related tourist facility [and on-site sewage treatment area] Additional development proposal information submitted by the developer May-September. October 9, 2007 Advisory Planning Commission meeting Considered revised proposal for 1,244 residential units and mixed commercial. The APC recommends to the RDOS Board that the density of the project be significantly lower and that the comments of the engineering Services and the Environmental Coordinator be addressed In response, the developer submitted a revised development proposal for 1,088 residential units and mixed commercial and offered clarification on contribution of amenities in a letter dated November 21, 2007. January 10, 2008 OCP Bylaw 2260.01 and Zoning Bylaw 2261.13 were read a first time in the context of a request from GLD to include Willow Beach in the Regional Growth Strategy as a secondary growth area (RGS currently at second reading and under discussion on the issue of secondary growth areas). The developer subsequently submitted a revised development proposal for site layout and servicing, accompanied by a revised amenities letter dated April 15, 2008. January 15, 2008 Informal referral to Agencies and First Nations - see public hearing minutes. April 17, 2008 OCP Bylaw 2260.01 and Zoning Bylaw 2261.13 were read a second time as amended with conditions related to preparation of the Phased Development Agreement. May 5, 2008 Formal referral to Agencies and First Nations - see public hearing minutes. June 9, 2008 Advisory Planning Commission meeting minutes: [Director Pendergraft] asked if the APC was satisfied with the reduction that the Developer had made to the number of units proposed as the APC had asked for a significant reduction when the group had dealt with that application. The general sense was that the group felt that the reduction from 1244 to 1088 was not a significant reduction, however, they also still generally support the proposal, just felt the density should be further reduced still not comfortable with suggesting a number though. June 19, 2008 Phased Development Agreement Bylaw 2448 read a first and second time included the following, amongst other provisions: dedication of land designated Conservation Area to the Regional District dedication of the fire hall site to the Regional District improvements to the Conservation land and Park (land designated as Park land on Osoyoos Lake is primarily comprised of the required subdivision dedication for the development) water service by agreement with the Town of Osoyoos fire protection service by agreement with the Osoyoos Rural Fire Protection District sanitary sewer collection and treatment services with the Town of Osoyoos or Regional District for a regional system Page 2 of 6

Pre-public hearing: Signed Memoranda of Understanding (MOU) between GLD and the Town of Osoyoos for sewer and between GLD and the Osoyoos Rural Fire Protection District #. Agreement in principle still to be finalized for a Town of Osoyoos and Regional District partnership for sewer improvements in the area. Minor amendments proposed to Bylaw No. 2261.13, 2008 Electoral Area A Osoyoos Rural Zoning Amendment Bylaw: change reference in s. 2 Bylaw 2261.13 to Residential Single Family Two Site specific (RS2) from Residential Single Family Three (RS3) in response to request from developer add community halls as a permitted use in s. 9 Bylaw 2261.13 in the RD Two Family Residential zone, and in s.13 Bylaw 2261.13 in the RM Residential Multiple Family zone change reference in Schedule X-2 existing zoning to Commercial Tourist Zone Site Specific (CTs) from Commercial Tourist zone (CT) Minor amendment proposed to Bylaw No. 2448, 2008, Electoral Area A Willow Beach (GLD) Developments Phased Development Agreement Bylaw in response to a submission from the developer: add Willow Beach Environmental Impact Assessment Addendum #2 (attached) July 3, 2008 Public Hearing - see public hearing minutes. Approximately 175 members of the public in attendance. Ministry of Transportation (MoT) approval of the Zoning Bylaw is required prior to final adoption of the amendment bylaw as the development is situated within 800 metres of Highway 97, and Ministry of Community Development (MCD) approval is required of the Official Community Plan Bylaw as the development proposes the creation of more than 30 units as well as an area in excess of 20 ha. Development Services: This major development proposal provides considerable conservation area dedication and park improvements and residential, commercial and fire hall site amenities as well as future construction and business employment and tax benefits. Further, it is recognized that the development provides an off-site sewer contribution which in turn provides support for the potential of a regional sewage treatment system. A development permit designation is also proposed to guide form and character of the multi-family and commercial components of the development. Development proposal concerns as cited in the September 2007-June 2008 staff reports are primarily growth management related: Policy: amendments to Official Community Plan Bylaw Objectives 8.2.2 To support a strategy of directing higher density residential development to urban areas and, 8.5.3 The Regional Board strongly discourages Medium Density Residential development within the rural area, and instead, directs it to the urban area. The proposal introduces a mixed low to high density residential and commercial development on Osoyoos Lake Regulation: amendments to Zoning Bylaw introduce high density multiple family residential Scale of the development: visual and physical impact of 1088 units (up from 200-250 currently permitted) and 2.4 ha of tourist commercial and hotel (up from 1.7 ha campground) Page 3 of 6

Density: impact on rural character with development proposing up to 14 metre height (4 storeys) and 105 units per hectare nearest the lake, from 10 metre height and 50 units / ha. Agricultural land (not within ALR): 23.4 ha vacant agricultural property converted to conservation, commercial and residential use Environmental sensitivity and riparian areas: impacts of development on floodplain, environmental sensitivity of site and adjacent riparian areas, and risks to environmental values cited by Ministry of Environment and Floodplain issues potential issues with respect to RAR [riparian areas regulation] groundwater extraction rates and how the site hydrology may/will be impacted cited by Fisheries and Oceans Canada, with partial amelioration provided by off-site servicing APC concerns about the density in October 2007 that the application be approved [and] that the density of the project be significantly lower and in June 2008, that the density reduction [in number of units] from 1244 to 1088 was not a significant reduction Development Services is concerned that the scale of the Willow Beach development will profoundly impact the character and ambience of the surrounding rural Osoyoos area, the environmental sensitivity of the site and adjacent riparian areas. Engineering Services: January: Servicing concerns in the process of being addressed in accordance with conditions An infrastructure grant has been awarded the RDOS to service existing lots too small to adequately support an onsite sewer system on Osoyoos Lake April: Servicing issues in the process of being addressed in accordance with conditions, with the removal of on-site solutions for sewage treatment, water treatment and fire pump system, conditions to be incorporated in Phased Development Agreement - in accordance with amenities letter dated April 15, 2008, regional treatment system under discussion: would cover capital costs for collection and treatment and provide significant benefit to area between the Town of Osoyoos boundary and the proposed development (approximately 7 km) June: Phased Development Agreement addresses servicing issues, including those related to a regional treatment system Agreement in principle between RDOS and Town of Osoyoos for sewer improvements for the area: agreement to be finalized Transition of the Willow Beach bylaws into the Repeal and Re-enactment Bylaws: The Willow Beach bylaws must be amended at third reading to reference and transition the Willow Beach proposal into the Repeal and Re-enactment Bylaws. In addition to the minor amendments outlined above the Willow Beach amendments to the bylaws are now found in the Repeal and Re-enactment Bylaw No. 2450, 2008 and Bylaw No. 2451, 2008. The alternate recommendation below to move the OCP, Zoning and Phased Development Agreement bylaws, as amended, forward to third reading are available should the Board not select the postponed motion to consider submission of a revised development proposal. If the Board considers a revised development proposal, a second public hearing will be required for the bylaws (OCP, Zoning and Phased Development). It is recognized that the contribution the developer offers a regional sewage treatment system is associated with development rights approvals and that the contribution may be altered with a new proposal and thus potentially cause a challenge to implementing the regional treatment system. Page 4 of 6

Alternate Recommendations: 1. THAT Bylaw No. 2260.10, 2008, Electoral Area A Osoyoos Rural Official Community Plan Amendment Bylaw be read a third time as amended, and Bylaw No. 2261.13, 2008 Electoral Area A Osoyoos Rural Zoning Amendment Bylaw be read a third time as amended; AND THAT Bylaw No. 2448, 2008, Regional District Okanagan Similkameen Electoral Area A Willow Beach (GLD) Developments Phased Development Agreement Bylaw be read a third time as amended. 2. THAT the Regional Board rescind first and second reading of Electoral Area A Osoyoos Rural Official Community Plan Amendment Bylaw No. 2260.10 and Electoral Area A Osoyoos Rural Zoning Amendment Bylaw No. 2261.13 and the Phased Development Agreement Bylaw No. 2448, 2008 and abandon the bylaws. Respectfully submitted, B. Newell, Chief Administrative Officer Attachments: Aerial Photo OCP Amendment Bylaw No. 2260.10, 2008 with proposed amendments Zoning Amendment Bylaw No. 2261.13, 2008 with proposed amendments Phased Development Agreement Bylaw No. 2448, 2008 proposed amendment Environmental Impact Assessment Addendum #2 partial (for convenience) Phased Development Agreement Bylaw No. 2448, 2008 with proposed amendments G:\DEVELOPMENT SERVICES\PLANNING\OCP-REZO\REPORTS\ThrdAdpn\A070637789000WillowBeach(3rd)050814.docx Page 5 of 6

Regional District Okanagan-Similkameen 101 Martin St, Penticton, BC V2A 5J9 Tel: (250) 492-0237 Fax (250) 492-0063 Attachment Aerial Photo File Nos.: A-07-06377/8/9.000 Page 6 of 6