GASTOWNIN

OIL CITY

Does The Quarters in Edmonton have the potential to develop

like Vancouver's Gastown?

Revitalizing the CoreWhat can

Edmonton’s Quarters learn

from the revival of Vancouver’s

Gastown?

Central heritage districts in major cities have always been a draw for tourism, shopping, entertainment, and redevelopment. Gastown in Vancouver, Queen Street in Toronto, and East Village in Calgary are just a few areas that have retained their historic “old” charm even with all the new. The cobblestone streets, unique businesses, vintage architecture and timeless brick facades create the character that reminds us how these areas evolved into the neighbourhoods we enjoy today.

In the late 1960s, Vancouver’s Gastown was a rougher place. Gastown today is home to many of the city’s top restaurants, pubs, art galleries, furniture retailers, fashion boutiques and tech start-ups. Julian Kimble of Complex.com rated Gastown as fourth on a list of the 50 most stylish neighbourhoods in the world, just behind Soho, New York City. It’s hard to imagine the Gastown of almost half a century ago, characterized by abandoned properties and slum-like conditions.

As once was Gastown, Edmonton’s Quarters District is an area in transition, well on its way to finding its identity as a modern heritage district. Located in the downtown east side of Edmonton, The 100-acre Quarters site extends east from 97 Street to 92 Street, and from 103A avenue south bordering the river valley. It is home to Edmonton’s most vulnerable population and largest stock of heritage buildings.

The City of Edmonton is financing $100 million in infrastructure investments. These capital investments include drainage services upgrades, streetscape improvements and commercial development zoning. City-led projects include the transformation of 96 Street from Jasper Avenue to 103A Avenue, and the Boyle Renaissance.

With the city’s significant capital investments, the area is ready for change. But will it be enough to attract investment and development? It's worthwhile to look back and see how Vancouver’s Gastown did it.

Timeline Source: Ian Lindsay / Vancouver Sun

Intersection of Water, Carrall, and Richards

Source: City of Vancouver Archives #P392

Europe Hotel Woodward's Store

Source: City of Vancouver Archives #CVA 809-24Source: City of Vancouver Archives #M-11-32

Source: City of Vancouver Archives #CVA 780-705

Gastown, Vancouver

The Gastown Riot, also known as The Battle of Maple Tree Square: Police clashed with

youths who gathered to protest marijuana drug laws and

recent drug raids. The riot is immortalized in a photo mural by artist Stan Douglas, which now hangs in the redeveloped

Woodward’s atrium.

The Great Vancouver Fire, which started as a brush fire between present-day Main and Cambie streets, claims dozens of lives and destroys most structures in the newly-incorporated city

Three governments grant money for Gastown

beautification. Utility wires are buried, trees are planted and old-fashioned street lights are installed. Chain-link bollards are added and streets are

paved with brick.

City, Provincial, Federal Governments

pool resources to address health, housing, and

economic issues

1903

1886 1909

1970

1971

1972

1974

1991

2000

2001

2002

2003

2009

2015

The Leckie Building at 221 Cambie St is redeveloped City introduces

a heritage-management

plan

Old Spaghetti Factory on Water St opens

Woodward's Building

built

The Gastown Steamclock is dedicated

City introduces a heritage-

density program

City sponsors an incentive-program,

spurring investors to breathe new life into area’s historic brick

buildings

City councillor Jim Green

spearheads the redevelopment of Woodward’s

building.

Historic Woodward's

Building reopens

The Landing at 117-131 Water

St redeveloped

Hotel Europe

built

Gastown Model: Maple Tree Square 1968

What are the contributors

to Gastown’s success and

redevelopment?

“It didn’t happen overnight” said Leanore Sali, Executive Director of the Gastown Business Improvement Association. She tells the story of 20 years of their business community dreaming what was possible, and believing in the neighbourhood.

Back in the '90s, Jon Stovell of Reliance Properties, then president of the Gastown BIA, was credited for being a visionary and the lead in bringing owners of all of properties, SRO housing, and landlords together. They created a vision of Gastown, asking themselves: What kind of tenants do we want here? Whom do we want shopping here, living here? They lobbied the city with their vision, which resulted in the Heritage Management Plan in 2001.

The Vision for the Heritage Management Plan in Gastown Summary: Gastown is the birthplace and historic core of the City of Vancouver, and a source of pride to its citizens. The vision for its heritage management is built on its historic character, buildings and built form being conserved within an historic context for present and future generations. It would accommodate a broad range of uses. The economic viability of the entire area would be assured and it would become a safe, livable, attractive and inspirational place. Gastown would be the home of a vibrant and diverse community, containing a mixture of businesses, housing and income levels and be a good place to visit, work, live and conduct business. “

"I think Gastown always had to struggle a lot,” said Sali. "The neighbourhood didn’t have all the privileges or advantages that other neighbourhoods have. We are a heritage district, so we are confined to rules and regulations; we house those with low income; we also have been, for many years, a major tourist attraction. We really wear a lot of hats, and we were always struggling. I think it's those hard things that we’ve had to do that many other neighbourhoods haven’t had to face, that’s pulled the community together."

"We were getting called the Downtown East Side because we were so close to it. We were compared to it, and always getting pulled into those dynamics – gentrification among other issues. Getting caught up in all of that was taking up so much of our time. That's when we pulled back and said, ‘You know what? We can't change any of that; we can't change all those challenges.’"

“It’s a passion, it’s a pride, the sense that it’s

our neighbourhood. We’ve all had to struggle together, always

had challenges, and it pulled us together.”

Leanore Sali

"Focus on what you have control over. You have control over whom you’re going to rent to. Bring in the businesses that make the neighbourhood. Decide together who you are as a neighbourhood and define your own identity."

“We had a conversation around the table about what we can change, what we are responsible for, how we can actually make a difference and where we want to be.” Leanore Sali

What advice would you give Edmonton’s Quarters developers?

Vancouver Spotlight: Woodward’s Building Built in 1903, Gastown’s historic Woodward department store was at the time the premier shopping destination in Vancouver. Its iconic “W” landmark was placed atop a 25-metre replica of the Eiffel Tower, which marked its location at 128 West Cordova Street. Famous for its retail window displays during Christmas, Woodward's was the Macy’s of Vancouver. By the 1980s, business declined as suburban shopping malls became a more convenient consumer choice, leading to the eventual sale of Woodward’s street level retail space and the store closing in 1993. As business deteriorated for Woodward's, so did the prominence of the area. Some described the Gastown neighbourhood as lost during those years, as vagrants and crime moved in.

Late in 2002, a pivotal social moment occurred that would be later known as the Woodward’s Squat, or Woodsquat. The Marginalized Workers Action League campaigning for social housing from the provincial government illegally occupied the vacant building for a week. Once evicted, the occupiers set up a tent city that surrounded the block for an additional three months. The Vancouver Sun would later write, “Many credit the 2002 Woodsquat occupation of the old vacant Woodward’s building for raising the issue of homelessness and setting in motion the eventual redevelopment of the landmark department store building.”

This issue would warrant more than private investment and require government help. The City of Vancouver purchased the site for $5 million from the Province of British Columbia and began a bidding process for a development partner to properly rehabilitate the site and the area.

Only two years later, Westbank Projects/Peterson Investment Group, along with Henriquez Partners Architects and Glotman Simpson Consulting Engineers, began a $350 million project that would help win the neighbourhood back. The 2.48 acre, 1,222,231-square-foot building would have a plethora of mixed uses including market housing, non-market housing, affordable housing, retail, institutional/university, medical retail, grocery retail, professional offices, non-profit offices, street level retail and a public plaza.

Just like Edmonton’s Quarters, the Woodward’s site anchors the convergence of several neighbourhood grids. The profound impact of the development was felt in the whole neighbourhood.

Photo Courtesy of Westbank Projects

SITE INFORMATION

Location:Vancouver, British Columbia

Site Area2.48 AC

Gross Building Area1,222,231 SF

OwnerMunicipal Government

Current UseMarket Residential, Non-market residential, Office, Retail, Institutional/University, Public Plaza/Atrium, Parking

Total Development Costs$352,500,000 (Source: Urban Land Institute)

"Woodward's contributed with market residential, which was so needed in the area.” Leanore Sali

With construction finishing in 2010, it took only 6 years of redevelopment to restore the Woodward's landmark to new heights, and rejuvenate the neighbourhood.

The Quarters On the doorstep

of downtownBrad Ferguson, President and CEO of the Edmonton Economic Development Corporation, said: "Edmonton's Downtown is in renaissance, spearheaded by over $5.5 billion in new development in the core. The Quarters represents the next phase of that redevelopment, and now is the time to get in."

“As one of Canada’s youngest, fastest-growing cities, with income +30% higher than that of the national average, Edmonton has $88 billion in GDP, and is projected to recover from the current downturn and be Canada’s third-strongest economy from 2017 to 2020."

With private and public investment going into Edmonton’s downtown, along with a central core population that has more than doubled since 2001, Edmonton is shaping up to be the kind of vibrant, large city that offers opportunities to both residents and investors.

Walking through The Quarters is like stepping into Gastown 15 years ago. There are boarded-up buildings, gravel parking lots and unsavoury activity. There are definitely challenges with the optics and perception of the area. According to Walter Trocenko, Branch Manager of Real Estate and Housing, Sustainable Development at the City of Edmonton, there is a clear sense of his team’s unwavering determination to see The Quarters reach its full potential. With the help of effective urban planning, The Quarters can be a preferred destination for current and future generations.

“There is no other city in the country that has this kind of development opportunity on the doorstep of their downtown.” Walter Trocenko

Trocenko believes investment will come to rebalance the social make-up of the area and create a rich, diverse, inclusive district that appeals to the arts, and to millennials looking for an urban lifestyle close to transit, entertainment, and the world’s largest urban park. He said, “If you’ve lived in the city all your life, and you’ve had a perception about the inability of the east side of our downtown to grow in an unbelievable way, those optics and perceptions are about to change."

The Quarters represents opportunity for local and external investors alike. In fact, Calgary’s Cidex Group recently snatched up the Five Corners development site at 95 Street and Jasper Avenue.

Developers and investors coming into the area will have substantial political, community and city administration support. The biggest challenge The Quarters is facing is fragmented land ownership. Trocenko and his team are strategically assembling land, and encourage those looking to develop to get involved early.

Source: City of Edmonton Archives EA-64-3

What is The Quarters ARP?

The Quarters Redevelopment Plan was created by a group of community members, Mayor Mandel, Walter Trocenko and others in Council and Administration. One of the early contributors Terry Willox, founder of Gastown Publishing Co. wrote a letter in 2005 to then Mayor Stephen Mandel about the potential redevelopment of the Boyle McCauley neighbourhood. The first version included many of the details we see in the plan today, such as an outdoor ampitheatre along the river valley.

Through unprecedented community and industry engagement, the plan was revised and completed in 2009. This led to the targeted rezoning of more than 500 titled properties and a vision for a dynamic community well-connected to central businesses, the cultural district and the river valley.

The City of Edmonton website states: “Once completed, The Quarters Downtown will be an environmentally sustainable, walkable, diverse community with appealing design, inclusive housing and green spaces. The area currently houses about 2,400 residents; however, it has abundant room for growth and redevelopment with the capacity to accommodate up to 20,000 people. “

"There is no question in my mind that The Quarters is a corollary of Gastown. The potential lies within the new bylaw wrapped around these 100 acres and many diligent, serial entrepreneurs." Terry Willox

The Quarters

What's been happening in The Quarters?

1

2

3

4

5

Utility upgrades - increased capacity and separation of storm water and sanitary in parts of The Quarters

“Green Street” pilot project making a pedestrian/active transportation a priority. It will include initiatives such as storm water recycling and soil cell systems for trees. Opening 2016 (96 St/The Armature)

Street beautification throughout The Quarters

Park development - public consultation beginning in 2016

Quarters LRT Station - LRT Valley Line to be completed in 2020.

Timeline Source: Mary Ann Debrinski/Heather Chisholm

1937 Edmonton Exhibition Parade

Source: City of Edmonton Archives EA-0-5

Source: City of Edmonton Archives EA-275-1078

1952 Grierson Hill Buildings 1922 RCMP Barracks

Source: City of Edmonton Archives EA-160-79Source: City of Edmonton Archives EA-160-1361

The Quarters Edmonton

First high-rise buildingin The Quarters approvedby City Council, 16-storeyValleyView Building at 96St and Jasper by Vinterra

Properties. This project fellvictim to the economy.

BCM Homes, Five Corners development falls through, leaving the dug foundation

and footings at 95 St and Jasper

Mayor Mandel gets an agreement in principle to move the Grierson

Prison if another suitable site can be

found.

Boyle Renaissance Phase 2 complete,

a new home for The Metis Capital Housing

Corporation

Boyle RenaissancePhase 1 complete,

consisting of 2buildings, the Melcor

YMCA Welcome Villageand Boyle Street Plaza

Ukrainian Canadianarchives and Museum

of Alberta begin redeveloping the oldLodge Hotel at 96 St

and Jasper Avenue. In 2015 the project sits

incomplete after running

out of funding.

2016

2015

20132010

2009

2008

Bylaw 15037 to adopt

The Quarters Downtown Area Redevelopment

Plan

Bylaw 15039 to rezone the majority of the properties

in The Quarters Downtown to DC1 (Direct Development

Control Provision). The DC1s are what provide the development regulations,

which have allowed for a huge as of right increase in height

and density.

Arts HabitatEdmonton andArtists Urban

Village partner for“Artists Quarters”; begin construction

fall 2016

Phase 2, park development in The Quarters

Hyatt Place Hotel Jasper Avenue opens

Five Corners site sold to Cidex

Developments

City Council approves an additional

$47 million in infrastructure

investment

City begins construction of the

Edmonton LRT Valley Line that will have a stop in The Quarters.

Construction to be finished by 2020.

Edmonton Spotlight: Grierson CenterThe largest contiguous site in The Quarters is the Grierson Centre. At just over 2.96 acres, it is perhaps the most important land parcel in Edmonton’s downtown East side. Located at 9530-101 Avenue, the site offers spectacular views of downtown, Louise McKinney Park and the River Valley.

This federally owned site began as the original headquarters of the North-West Mounted Police. Since then, it has become a parole office and a minimum security institution for 30 inmates. In the past, some local residents have voiced their unease with the presence of prisoners in their neighbourhood. With high-density residential construction planned for the area, the redevelopment of this site will be essential for the success of The Quarters.

“If we could get Grierson Centre activated, that would be another key piece in the puzzle.” Walter Trocenko

The Quarters ARP “The original RCMP parade grounds at the Grierson Centre are as important a historic resource in this area as are the heritage buildings neighbouring them. Potential uses such as a museum, a hotel, residential development, and/or a community hall the role of this complex of buildings in the neighbourhood should be significant. A new public user of the Grierson complex may generate some commercial spinoff. New development can potentially occur to the east of the parade grounds but within the Grierson property. New on-site construction should have public space on the main floor and residences above. The parade grounds should be public open space available for community use. Any parking on the premises will be underground.”

In 2010 there was significant momentum led by Walter Trocenko and Stephen Mandel to change the use of this site. In April 2010 then Mayor Stephen Mandel was quoted in the Edmonton Journal, saying, “The city has reached an agreement in principle with the federal government to move inmates out of the downtown Grierson Complex.”

Source: City of Edmonton Archives EA-0-5

SITE INFORMATION

Location:Edmonton, Alberta

Site Size11,988.807 m2 (2.96 Acres)

OwnerFederal Government

Current UseFederal PrisonHalfway HouseStan Daniels Healing CentreNative Counseling Services of Alberta

Details3 Buildings. Former RCMP Centre Building 3, is a registered federal heritage site

SITE INFORMATION

Location:Edmonton, Alberta

Site Size11,988.807 m2 (2.96 AC)

OwnerFederal Government

Current UseFederal PrisonHalfway HouseStan Daniels Healing CentreNative Counseling Services of Alberta

Details3 Buildings. Former RCMP Centre Building 3, is a registered federal heritage site

Why is Redeveloping the Prison so important?Before convenience, sustainability, public transportation or heritage adaptability, the number one concern for current and future residents is safety. As development continues to improve the balance in the area, it will only be a matter of time until the building community recognizes and acts to unlock the value of this site. Toronto replaced its historic Don Jail with a world-class hospital facility. Ottawa converted its downtown prison into a hotel/B&B. With so many possibilities, local residents are excited to see the prison transform.

96 St

101 Ave

Grierson Hill Rd

103 Ave

103A Ave

96 St

95 St

95 St

Alex Taylor Rd

Jasp

er A

ve

95A St

93 St

92 St

101A Ave

Rowland Rd

Row

land

Rd

94A St

101A Ave

97 St

102A Ave

102 Ave

101A Ave

101 Ave

Grierson Centre

Vacant Land

Artists Quarters The Armature

Cidex Group Site

Hyatt Place Valley LRT Line

4. McCauley Quarter- Residential Uses as Compatible with Neighbourhood to North- Active Commercial/Residential Frontage along 95 Street- Floor Area Ratio: 1.5 to 4.0- Height Range: 2 Stories (7.0m) to 8 Stories (27m)

5. Five Corners Quarter- Higher Density Residential/Commercial Mixed Use- Taller Buildings- Active Commercial/Residential Frontage along Jasper Avenue and 95 Street- Floor Area Ratio: 3.0 to 11.0- Height Range: 3 Stories (11m) to 45 Stories (150m)

3. The Armature- Urban Park/Plaza- Linear Public Urban Space- Connection to the River Valley- Mixed Use- Active Commercial/Residential Frontage 96 Street- Floor Area Ratio: 3.0 to 8.75- Height Range 3-16 Stories (11m to 59m) - FAR and Height increasing North to South

1. Civic Quarter- Institutional/Commercial/Residential Mixed Use- Larger Scale Buildings- Active Retail Frontage along 97 Street- Floor Area Ratio: 3.0 to 10.0- Height Range 3 Stories (11m) to 33 Stories (113m)

2. Heritage Quarter- Preserve and enhance the Historic Character of the Area- Mixed Use Commercial and Residential- Active retail Frontage along 97 Street and Jasper Avenue- Floor Area Ratio: 3.0 to 6.0- Height Range: 3 Stories (11m) to 15 Stories (50m)Quarters Station

Louise McKinney Park

THE QUARTERS

1

2

45

5

Alex Taylor

School

96 St

101 Ave

Grierson Hill Rd

103 Ave

103A Ave

96 St

95 St

95 St

Alex Taylor Rd

Jasp

er A

ve

95A St

93 St

92 St

101A Ave

Rowland Rd

Row

land

Rd

94A St

101A Ave

97 St

102A Ave

102 Ave

101A Ave

101 Ave

Why did you choose to develop in The Quarters?“Edmonton needed a new hotel. We knew if we built it in The Quarters, it would open the area up and would be good for everybody.”

Why the delay in the The Quarters vision?“If city hall is pro business, then the plan will proceed extremely fast. City hall and investors need to proactively work together. We need to be pragmatic.”

What will The Quarters look like when its done?"It is in our best interest to have the area developed in a beautiful way. We are developing in an upscale way. Right now it’s for the businesses who are thinking ahead of the crowd. It’s about attitude. Look at how Chicago or Portland developed and grew their city; Edmonton can do the same."

Pioneer Profile: Prem SinghmarPrem Singhmar is the President of AUM Hotel Group, and is the developer behind the new 13-storey, 230-room Hyatt Place Hotel located at 96th Street and Jasper Avenue. Designed by renowned local architect Gene Dub, Hyatt Place is the first major private development since the Quarters redevelopment plan was introduced. The $60 million upscale hotel is ready to open this fall.

VANCOUVER’S GASTOWN 2006

VANCOUVER’S GASTOWN 2015

EDMONTON'S QUARTERS 2006

EDMONTON'S QUARTERS 2016

Size 60.3 Acres 100 Acres

Building Permits 15 35 (2011) Unknown Unknown

Population 3,568 4,753 2,267 2,789

Median age 42.8 43.2 52.2 49.5

Average Household Income $22,075 $36,529 $33,342 $44,378

Average Net Office Rent $15.00/SF $24.99/SF Unknown $16.67/SF

Average Net Retail Rent Unknown $45.00/SF Unknown $23.33/SF

Vacant Storefronts 29% 12% Unknown 27% (2014)

Apartment Building with >5 Stories 61% 81% 56% 45%

Apartment Building with <5 Stories 35% 17% 29% 50%

The Quarters: Projected Average Income (2015 vs 2020)

5%

Unde

r $10

K$1

0 K

- $19

.9 K

$20

K - $

29.9

K$3

0 K

- $39

.9 K

$40

K - $

49.9

K$5

0 K

- $59

.9 K

$60

K - $

69.9

K$7

0 K

- $79

.9 K

$80

K - $

89.9

K$9

0 K

- $99

.9 K

$100

K -

$124

.9 K

$125

K -

$149

.9 K

$150

K -

$174

.9 K

$175

K -

$199

.9 K

$200

K -

$249

.9 K

$250

K +

0%

10%

15%

20%

25%

30%

2015 2020

Statistics

Source: PCensus and Colliers International

“Edmonton is poised to come out of the current downturn much faster and stronger than any other Alberta city. Now is the perfect time to get in before supply is taken up and prices rise.” Brad Ferguson | Edmonton Economic Development Corporation

$10,000

$02010 2015 2018 2020

$20,000

$30,000

$40,000

$50,000

$60,000The Quarters: Projected Household Income

$41,578

$22,333$25,893

$44,378

Average Income

Median Income

$46,163

$28,780

$47,891

$31,339

Pop

ulat

ion

2000 2,0002010 2015 2018 2020 2025

400600 3,000800

1,0001,200 4,000

1,4001,6001,800 5,000

The Quarters: Projected Total Households and Population

797

9921,154

1,262

1,602

Total Households

Total Population

Hous

ehol

ds

The Boarded up Mirama Dining and Lounge 9421 Jasper Avenue

9662 Jasper Ave The Historic Lodge Hotel, Ukrainian Canadian Archives and Museum of Alberta Project Boarded up.

9529 Jasper Ave, Current City of Edmonton site for sale

What does The Quarters look like today?

What could The Quarters look like?

Afterword

Source: City of Edmonton, ONPA Architects

Developers and investors looking at The Quarters in Edmonton should be aware of the risks of breaking new ground. There is hydrocarbon contamination in some sites, underground coal, and social issues including drugs and prostitution. Pioneering in The Quarters is not for the faint of heart. For seasoned developers looking to take advantage of the significant infrastructure investments, there is already an established area plan and momentum in The Quarters.

For more information regarding multifamily, land, office and retail opportunities contact:

John FredericksonRegional Vice President | Prairie RegionColliers Internationaljohn.frederickson@colliers.com

For more information regarding The Quarters and pre-planning contact:

Mary Ann DebrinskiDirector, Urban Renewal, Real Estate and Housing Sustainable Development, City of Edmontonmaryann.debrinski@edmonton.ca Artists Quarters, Construction starting late 2016

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Author:Marty PawlinaManager | Marketing & Communications | Alberta+1 780 917 4166marty.pawlina@colliers.com

Editor:Michelle SantosCommunications Manager | Canada

Contributors:Walter Trocenko | Branch Manager, Real Estate and Housing | Sustainable Development | City of Edmonton

Mary Ann Debrinski | Director, Urban Renewal, Real Estate and Housing Sustainable Development, City of Edmonton

Heather Chisholm | Principal Planner, Urban Renewal | Real Estate & Housing | Sustainable Development, City of Edmonton

Prem Singhmar | President AUM Hotel Group

Terry Willox | Founder Gastown Publishing Co.

Leanore Sali | Executive Director | Gastown Business Improvement Association

Brenton Chung | Market Intelligence Coordinator | Colliers International

Ashley Savill | Graphic Designer | Colliers International

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