Edmonton (Alta.) - 1986 - Edmonton_a twin-centred city, discussion paper (1986-07)

EDMONTON : A TWIN-CENTRED CITY

Discussion Paper

Corporate Forecasting Group Long Range Planning Branch July 1986

Foreword The following discussion paper has been prepared as a focus for discussion within the Planning and Building Department. The paper raises the issue of the growth of West Edmonton Mall and its impact without providing a comprehensive analysis. The material is preliminary and further analysis is needed. However, the intent is to outline the problem and stimulate discussion so that a new strategic planning framework can be developed.

Further work will be done once more explicit guidelines emerge from the initial discussion.

EDMONTON : A TWIN-CENTRED CITY I.

Introduction The development of West Edmonton Mall has given Edmonton a second major commercial centre which rivals Downtown. The Mall has brought about a different city structure from the concentric pattern of mixed-use suburban town centres surrounding a strong downtown which was proposed by the General Municipal Plan.

Edmonton has other specialized activity centres serving the entire city, such as the University of Alberta and Northlands. These nodes also attract high concentrations of people and are primary transportation foci. Unlike West Edmonton Mall, growth of these centres has not brought about major strategic problems for the city even though local land use conflicts have arisen. The roles of these centres will be examined in a later discussion paper.

The following discussion paper will illustrate the impact of West Edmonton Mall on the city and the inability of the GMP to ensure that development takes place according to city objectives. The paper will demonstrate that Edmonton has become a twin-centred city and that the development of West Edmonton Mall has resulted in changes in city structure. The paper will also show the need for a new planning mechanism which recognizes the Mall's impact and its future growth potential.

2.

Definitions Centres (or nodes) are points within the urban framework at which activity is concentrated. They are the focal points for employment and transportation.

The character and size of a centre will depend upon its catchment area and population.

A hierarchy of centres can be distinguished. The downtown is usually the dominant centre, serving the city and surrounding region, with other smaller, less specialized centres serving local populations. The central location of downtown theoretically gives it maximum accessibility to a wide market and greatest growth potential.

Town centres are the lower-order centres proposed in the GMP to provide a mix of uses for their surrounding neighbourhoods.

The central functions which may be found at a major activity centre are listed below: Government Finance Transportation Service Centre

Retailing Indoor Recreation Mass Spectator Recreation Entertainment Distribution Tourism Higher Education Health Care Culture 3. Theme 3.1 The current situation Edmonton has become a twin-centred city focused on Downtown and West Edmonton Mall. A series of indicators supports this conclusion: - a massive concentration of activity has developed in the west end at West Edmonton Mall.

- continuing public and private investment is attracted to this centre and the surrounding area - it is now the priority area for the next phase of LRT (March 1986, LRT Extension Study) - extensive improvements to roads and infrastructure are being undertaken, focused on the Mall area (May 1986: 5 Year Transportation Program 1987-1991) - the city has a strong new tourist attraction based on retailing and indoor recreation - West Edmonton Mall far exceeds the scale of other regional shopping centres - West Edmonton Mall considerably exceeds the downtown as a major retailing centre and rivals it in entertainment - the Mall continues to attract other retail uses along the main routes to the mall (e.g., Terra Losa Centre) - new non-retail uses have been introduced to a shopping centre - the Mall has resulted in a new pattern of urban activities and movements These features of recent development in Edmonton illustrate some of the potential issues and problems which need a new policy framework. They have arisen because the existing policies are deficient in the ways outlined below.

3.2 The problem A primary centre in Edmonton has developed at West Edmonton Mall (and surrounding area) with no appropriate policy framework.

There was no means of assessing its impact on the city (on Downtown, other shopping centres and on the surrounding area) nor of evaluating the form of development.

3.3 Why?--Defects of the existing policy framework (0 The General Municipal Plan The General Municipal Plan (GMP) is the strategic planning framework for the city yet has played no effective role in guiding the development of West Edmonton Mall. The deficiencies of the plan are examined below to point to those elements of planning policy which must be re-examined in formulating a new strategy.

The General Municipal Plan does not allow for the growth of a primary suburban retail and entertainment centre which has assumed some of the roles and functions of Downtown and which serves city-wide, regional and even national and international markets. (GMP policies 6.D.1 and 6.E.1 Map 2.1. Chart 2.2).

The GMP was based on the principle of concentric growth of the city with a balance between the inner city and the suburbs being maintained. The plan assumes a hierarchical development of centres, with Downtown as the primary centre.

Elements a) In the GMP, Downtown is anticipated to be the primary centre for employment and commercial activity. It is the main transportation focus and is expected to attract the greatest share of the city's investment in economic growth. The Downtown serves the city and the region (Objective 6.D). The continued growth of office space will maintain Downtown as the primary employment centre even though its share of space will decline as the city grows (Policy 6.A.1.). Concerns over the future vitality of Downtown are to be handled through market analysis to identify the implications of regional shopping centre development (GMP Policy Report #2 3.4 (b)). b) The Plan proposes development of planned, mixed-use town centres in the suburbs with a limited role in relation to Downtown. (Policy 6.E.1.). The town centres are to include a retail component, offices, housing and a transit centre. The town centres will have similar uses to those of downtown but be less intensive and specialized and will serve a local market only. Each centre will be located within its own market area, at accessible points in the suburbs. (G.M.P. Map 6.3). The centres are to develop in association with concentric residential growth. c) Several characteristics of town centres are identified by the GMP: - Town centres will occupy a lower level in the urban hierarchy than downtown.

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- Each centre has its own market area to ensure its viability.

- Integration with residential growth; uses are to be compatible with the surrounding housing.

- Town centres are intended to provide local employment and commercial facilities for the suburban population.

- No adverse impact on residential areas is anticipated.

- The capacity of the existing transportation network will not be exceeded.

- Town centres will have human facades.

- Pedestrian circulation is encouraged.

The city structure envisaged by the GMP has not developed and will not do so: commercial development has taken a very different course. The Plan does not represent market realities and does not deal with the dynamic processes by which centres grow. It concentrates only on the mix of uses for the centres, but does not discuss their impact on the surrounding area and on other centres. Proposed growth of town centres has not been supported by the limiting of development elsewhere. For these reaons the Plan is no longer able to guide future city growth. (ii) The Downtown Area Redevelopment Plan The Downtown Plan is based on the same premise as the General Municipal Plan: that the Downtown is the city's primary focus of central functions. The proposals in the Plan are aimed at maintaining and strengthening a strong and viable downtown. (Strategy A, Downtown Area Redevelopment Plan, Page 13).

Appropriate land use districts (Schedule 4) allow for intensive central area uses to be developed and environmental enhancement is provided for by public development projects (Sections 17 and 29).

However, the Plan fails to recognize that: a) Central area functions could develop at other accessible points in the city, given favourable land ownership and financing availability. b) The city's existing central functions (i.e., servicing a city-wide market) are not exclusively located in the Downtown. Examples are: further education at the University of Alberta and N.A.I.T.; sports at Northlands and Commonwealth Stadium; entertainment at the Jubilee Auditorium, Northlands and West Edmonton Mall; health care at the University Hospital and retailing at West Edmonton Mall.

These activity nodes will strengthen their roles by attracting ancillary activities. c) The reactive role to development proposals will not achieve objectives in times of slow economic growth.

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d) Existing patterns of land ownership limit the ability of the plan to direct development to specified areas. e) City council is concerned to secure a renewal of economic activity leading to job creation and an increasing tax base.

Any development promising growth and jobs will likely be supported whether or not it is consistent with the Downtown Plan.

The proposals in the Downtown Area Redevelopment Plan (ARP) have not prevented the loss of the downtown function as primary retail centre for the city (Table 1). The Plan treats the Downtown in isolation from other areas of the city and therefore does not deal with the role of the Downtown within the city structure, the economic context nor the ability of the Plan to influence market decisions.

3.4. How West Edmonton Mall fits in The General Municipal Plan provided for development of a town centre on a site to the north of the mall which would include a regional shopping centre, office space and housing (a lower order suburban centre of mixed uses). West Edmonton Mall represents development of a new form of centre, which far surpasses the scale of facility assumed in the Plan and which includes permanent indoor land uses which are revolutionary in the city (e.g., waterpark and amusement park). The character and scale of the mall place it in a different class from other regional shopping centres (Table 1) requiring different planning policies to deal with its growth and impact.

The scale of the development has created its own demands on the city (e.g., transportation improvements). The Mall has become such a highly concentrated centre of activity that it is not compatible with residential development (as proposed in GMP Policy 6.E.1, Policy 5.B.5) and, instead of assuming a symbiotic relationship with its residential area, barriers have arisen between the Mall and the surrounding residential area because of its impact and the generation of high levels of traffic.

Not only has West Edmonton Mall brought new central functions to the West End, it has attracted new commercial development and investment to the surrounding area (Terra Losa), possibly at the expense of other city locations. Its impact has clearly surpassed the expectations of the GMP and cannot be dealt with by existing policies.

3.5 Implications 1. There is a need to incorporate an analysis of the nature of activity centres in the planning framework.

Although the current GMP uses a "centres" concept, it does not recognize the full scale of impacts associated with centres. The following features are characteristic of activity centres and must be accommodated in policy.

- Market decisions will determine the introduction of new uses and levels of new growth.

- Linkages between uses are crucial. Commercial success depends on proximity of uses to each other and to the lines of movement of people.

- There is ongoing intensification of uses. (Increasing land values, replacement of low density and low value uses.)

- Major nodes (containing the most intensive or specialized uses) serve the largest market area. Smaller centres with less specialized functions can serve a more local area.

- Expansion will generate change in the surrounding area.

- The number and size of centres is limited by the extent of the market area and the characteristics of its population.

- Centres depend on being the focus of a transportation system, providing links with the market and to other centres.

- A centre must attract new investment if it is to grow and maintain its vitality. Providing opportunities for business is critical to economic growth.

- Proximity/accessibility to centres is critical in locating new development.

- Land ownership determines how growth takes place.

Unless full account is taken of these characteristics, planning policies will be unable to have an impact on the decisions which determine the course of development.

2. The functions of Downtown and West Edmonton Mall must be determined if the role of each centre and the relation between them is to be understood.

Central Functions

Downtown

West Edmonton Mall

x Government x Finance x Transportation x Service Centre x Retailing x Indoor Recreation Mass Spectator Recreation x Entertainment Distribution x Tourism Higher Education Health Care x Culture

Other Locations in the City

x x x x x

x

(Bold x indicates dominant location for the function)

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x x x x x x x x x x x

Although Downtown is the major concentration of central functions, few of these functions occur exclusively in the downtown and for functions such as health care, education and retailing, other centres exceed the downtown in importance.

3. The growing disparity between the GMP concept and the emergence of two major centres in the city means that there is no basis for assessing development of centres in the city.

West Edmonton Mall will continue to intensify and change and new development proposals will be made for adjacent sites and for land along the roads which serve the Mall. The implications of these proposals must be identified if informed decisions are to be made. A reasoned policy framework is also required to determine proposals at other centres in the city and for major decisions which will affect the city structure (e.g., the issue of LRT routing).

4. West Edmonton Mall has developed with no reference to a strategic planning context.

The emerging impact of the Mall on city structure has prompted city action to accommodate the pressures generated by a primary activity centre. City expenditure on services and infrastructure is being directed to the west end with no public debate on the allocation of scarce public funds throughout the city. A means of establishing expenditure priorities based on agreed city objectives must be introduced to ensure an equitable distribution of resources.

5. Development of West Edmonton Mall may have generated greater demand for residential development in the west and southwest sectors of the city at the expense of other sectors.

If new housing development is to focus on the west and southwest sectors, there are implications for housing availability and prices and for the release of new housing land. The City's staging policy should be re-examined in light of this potential trend.

6. Employment forecasts for Edmonton indicate that employment growth in the city will be concentrated in services and trade, particularly in retail trade and the restaurant sector. (Tables 2 & 3) (p.22-24 Economic Base Final Report).

The distribution of this expected employment growth will help to determine how the roles of Downtown and West Edmonton Mall evolve.

The city's tourism potential is currently being promoted and there is scope for Downtown to emerge as a more attractive and thriving centre. A planning framework identifying opportunities and implications is required if the city's full potential is to be realized with minimum land use conflict.

The potential growth in services and trade is an opportunity for Downtown to fill the vacuum formed by its minimal role as a centre for corporate head offices (Table 4). Downtown has a surplus of grade A office space and demand for office space in the city is expected from users for whom a prestigious downtown location is not a priority; cheaper space on the downtown fringe or in the suburbs may be adequate.

4.

Conclusions

(i) West Edmonton Mall has become established as the city's second commercial centre with no policy framework to guide decisions. Its impact on the city and on the downtown has not been evaluated and no guidelines are in place to assess the implications for further related development. (ii) West Edmonton Mall is the most obvious manifestation of the GMP's mistaken assumptions on the pattern of city development. The Mall shows the Plan's inability to provide an adequate mechanism for ensuring that development occurs in accordance with city objectives, that adverse impacts are dealt with and that its implications for the city are fully understood. (iii)The Mall has had a profound effect on the city, on the role of the downtown, on other shopping centres, on transportation patterns and on leisure activities; it will continue to grow and intensify. City policies must address the social, economic and financial impact of the Mall if its role in the city is to be fully understood and an effective framework provided for future decisions. (iv)A new planning approach must include the following elements if it is to be effective: - An explanation of the roles of Downtown and West Edmonton Mall.

- Guidelines for determining priorities for expenditure on municipal infrastructure.

- A mechanism for co-ordinated City action.

- Policies which recognize the characteristics and dynamics of activity centres.

- The relation between centres and other areas and among centres.

- City capability to maximize the benefits of private investment and initiative.

- A basis for assessing new proposals.

- The basis for a co-ordinated approach by developers, business and the City.

- It must recognize and build on existing initiatives.

5. Future Work The following elements may be included in future work on this issue: (i) A detailed analysis of the impact of West Edmonton Mall, including employment change, transportation patterns, city expenditure and the location of new development.

(ii) A functional analysis of West Edmonton Mall and Downtown in relation to other centres, based on commercial floorspace data. (iii) An assessment of how forecast economic change will affect the major centres. (iv) Details of recent development proposals at or near the major centres. (v) A discussion of possible measures for securing economic growth within an acceptable locational strategy. (vi) An investigation of potential roles for the City in influencing market decisions.

TABLE 1: COMPARISON OF MAJOR SHOPPING CENTRES

19811 Floorspace (G.L.A.-Sq. m) Market Share

NORTHWOOD

LONDONDERRY

BONNIE DOON

SOUTHGATE

HERITAGE

WEST EDMONTON

WESTMOUNT

50,200

66,400

43,600

66,900

73,800

212,000

38,600

5.3%

8.8%

11.8%

6.8%

8.8%

2.8%

211.5%

KINGS WAY DOWNTOWN

56,200 5.9%

110,000 15.4%

1985 Floorspace (G.L.A. - Sq. m) Market Share Major Tenant Anchors

Restaurants and Food Outlets

50,200

66,400

43,600

66,900

73,800

471,500

51,500

56,200

110,000

4.1% Woodwards Zellers

7.3% Eatons The Bay Woolco

3.6% Sears Zellers Woolworths

5.0% Woodwards The Bay

6.8% Eatons Sears Wool co

43.1% Woodwards Eatons Sears The Bay Zellers Hometown IKEA Canadian Tire

2.7% Woodwards Kresges

Sears Zellers

11.4% Woodwards Eatons Holt Renfrew

14

17

17

17

19

Movie Theatres

0

2

0

Waterpark Fantasy land Golf Course Ice Rink Deep Sea Adventure 19

Hotels

0

0

0

1 Proposed

Offices: Number

5

5

17

1,097

941

2,125

Recreation Facilities

Offices: Sq. m.

Primary Occupied Space Electric Loads 1984 Peak Spot Loads (MW)

No. Info.

3

No. Info.

20

126

32

27 (Ed. Centre) Theatres Festivals Art Gallery Live Entert.

Parks Skating

7

18

0

15

6

4

5

26

905

1,506

986

549

4,452

712,419

3

3

15 (Est.

2

165

No. Info.

1985)

Sources: Corporate Forecasting Group: 'The Retail Impact Model: Operation and Results' Planning Department: 'Office Space, Its Use and Distribution (Commercial Development in Edmonton, 1983) Edmonton Power: Load Area Analysis, Future Energy Requirements in Various Areas of the City of Edmonton (1984-2009) Publicity information from shopping centres.

N/A

3

-r-46L..e.

Potential Increase in Employment For Each Sector 1984 - 1991

Sector Construction/building Retail trade Restaurants

3,000 - 4,000

Transportation Communication/Utilities Wholesale Trade Health/Welfare Services to Business Management Personal Services Miscellaneous Services

2,000 - 2,999

Insurance/Real Estate Education Accommodation

1,000 - 1,999

Food/Beverage Metal Fabricating Construction-Engineering Finance

500 -

999

. Based upon the "job gap" forecast, higher job increases could be expected in some manufacturing industries (3,700) and some sectors in the finance, insurance and real estate industry division. . An implication of this service and retail trade employment growth is that relatively more jobs will be created in those sectors which have wages generally below the Edmonton average weekly earnings (see Chart 3). This job creation forecast may act to slow the increase of average incomes in the City.

Modest Building Recovery . Construction activity in the City is expected to recover as existing vacancy rates continue to decline in the residential, commercial and industrial markets.

Building permit values are expected to increase from $334 million in 1984 to

24

1111

Employment Growth Mainly in Services, Trade, Transportation . The forecast of employment growth by industry division in Edmonton over the period 1984 to 1991 is as follows (see Figure 35): **"1PJLE

a

Industry Division community, business and personal services

Employment Increase 1984 - 1991 16,000

trade

4,400 - 5,900

.

transportation

5,000 - 5,100

.

construction

3,300 - 4,100

administration

1,200 - 3,900

•

manufacturing

•

finance, insurance, real estate

1,600 - 3,700 1,600 - 3,100

•

resources

•

agriculture

800 -

900

-200 -

0

. The services, transportation and administration divisions are the only divisions where the employment growth is sufficient to raise the 1991 employment levels above the 1981 levels (see Figure 35). For all other divisions, the employment growth to 1991 is expected to only recover the jobs lost over the 1981-1984 period. . Based upon the "share method" of employment forecasting, the expected employment increases for specific sectors over the period 1984 to 1991 are as follows:

Table 4

NATIONAL CORPORATE HEAD OFFICES (BY SALES) Edmonton

Vancouver

Calgary

Winnipeg

1978

5

17

11

5

1984

4

29

31

13

1985

4

28

31

14

Source:

The Financial Post

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