2010 winnipeg modal housing report

7/29/2019 2010 Winnipeg modal housing report

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Minutes Standing Policy Committee on Property and Development December 6, 2010

REPORTS

Minute No. 8 Intermodal Steel Building UnitseFile FI-2.1

STANDING COMMITTEE DECISION:

The Standing Policy Committee on Property and Development filed the matter.


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DECISION MAKING HISTORY:

Moved by Councillor Wyatt,That the matter be filed.

Carried

STANDING COMMITTEE RECOMMENDATION:

On May 4, 2010, the Standing Policy Committee on Property and Development passed the

following motion:

WHEREAS the City of Winnipeg is committed to affordable housing;

AND WHEREAS the City of Winnipeg is committed to innovative housing solutions;

AND WHEREAS intermodal steel building units can help lower environmental impact throughthe recycling of building materials;

AND WHEREAS intermodal steel building units are considered an affordable option for thosecommitted to eco-friendly architecture;

AND WHEREAS companies have been manufacturing inter-modal steel building units inAlberta for the past three years to help address the housing crisis within the province;

AND WHEREAS intermodal steel building units have been used as a cost-effective solution inthe United States, Holland, Great Britain and China;

AND WHEREAS intermodal steel building units cost up to 40 per cent less compared totraditional lumber or factory made steel structures;

THEREFORE BE IT RESOLVED THAT the City of Winnipeg Public Service be requested toreport back to the appropriate committee of Council in 120 days with a report including:

1. initiatives taken by other municipal governments across Canada to encourage the use ofintermodal steel building units in the housing market;

2. the benefits and disadvantages of intermodal steel building units; and

3. recommendations regarding the viability of:


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DECISION MAKING HISTORY: (continued)

STANDING COMMITTEE RECOMMENDATION: (continued)

A. developing City initiatives to encourage the use of intermodal steel building unitsin the housing market; and

B. incorporating the use of intermodal steel building units within the CitysAffordable Housing Initiative.


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ADMINISTRATIVE REPORT

Title: Viability of Developing Affordable Housing in Winnipeg Using Inter-Modal Steel Building Units (ISBUs)

Critical Path: Standing Policy Committee on Property and Development Executive Policy Committee Council

AUTHORIZATION

RECOMMENDATIONS

1. That the report (APPENDIX A) be received as information2. That the Winnipeg Public Service monitors the progress and results of the

City of Vancouvers Expression of Interest (EOI) process regarding containerhousing and identifies any opportunities that might apply to the City ofWinnipeg for future housing development.

REASON FOR THE REPORT

The Standing Policy Committee on Property and Development passed the followingmotion on May 4, 2010:

The Standing Policy Committee on Property and Development requested the WinnipegPublic Service to report back to the appropriate committee of Council in 120 days with areport including:

1. Initiatives taken by other municipal governments across Canada to encourage the

use of intermodal steel building units in the housing market;

2. The benefits and disadvantages of intermodal steel building units; and

3. Recommendations regarding the viability of:

A. Developing City initiatives to encourage the use of intermodal steel buildingunits in the housing market; and

Author Department Head CFO CAO

S. Dueck D. Joshi

n/a M Ruta

Acting CAO


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B. Incorporating the use of intermodal steel building units within the CitysAffordable Housing Initiative

IMPLICATIONS OF THE RECOMMENDATIONS

Shipping containers or Inter-Modal Steel Building Units (ISBUs) have been adapted forhousing use in Europe and other parts of the world.

No urban multiple family development of size has been initiated in North America to-date.

Policy regarding ISBU and modular housing needs be clear regarding if the housing isintended to be temporary (portable) or permanent and if it is to be used as temporary orpermanent housing. The former relates to the structure; the latter to the occupant.

o Housing used as temporary housing is typically within a permanent structure,used by individuals making transitions from one housing state to another.

o There is currently little need in Winnipeg for temporary housing structures.o There is an identified need in Winnipeg for permanent structures to provide both

temporary and permanent affordable housing.o Assuming that ISBUs are being considered as permanent structures, one

assumes that the primary impetus for investigation is one of cost effectivenessand a secondary consideration would be for environmental benefits.

There is no clear economic advantage to ISBU modular housing in Winnipeg, sinceconventional modular housing would serve the same purpose for approximately thesame cost, and conventional construction would cost the same or potentially even lessfor equivalent construction. If ISBUs represented a viable modular building envelope inManitoba, it would be likely that Manitobas modular home builders would already bedirectly engaging with this concept.

The City of Vancouver is preparing to formally request Expressions of Interest forhousing development using modular housing, and they could potentially receive

proposals from developers using ISBU modules. This process could identifyopportunities that might apply to the City of Winnipeg for future housing development.

Environmental considerations regarding use of ISBUs in Winnipeg are less pressinggiven that, unlike Vancouver, which is challenged with the disposal of thousands ofunused containers, Winnipeg has few surplus containers. Costs and energyconsumption to ship surplus containers from Vancouver would adversely affect thefinancial and environmental cost-benefit equations.

Used ISBUs would need to be certified for shipping history given the potential healthissues / considerations that may arise from containers that might be contaminated ifpreviously used to ship toxic materials.

ISBU modular construction represents potential challenges from a zoning and buildingcode perspective.

The probability of code compliance would be challenging and potentially expensive,especially with used shipping containers. Until these issues are addressed, the risk ofundertaking ISBU modular construction will remain high.

Products exist that are pre-fabricated and pre-furnished and can be shipped fromlocation to location. These units would be more appropriate for temporary housing thatrequires minimal time and effort to establish (work camps, etc).


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HISTORY

There is no City history of note on this issue.


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FINANCIAL IMPACT

Financial Impact Statement Date: October 28, 2010

Project Name:

COMMENTS:

"Original Signed By"

Mike McGinn, CAManager of Finance

Viability of Developing Affordable Housing in Winnipeg Using Inter-Modal Steel

Building Units (ISBUs)

The recommendations contained in this report are that APPENDIX A be received as information andthat the Winnipeg Public Service monitors the progress and results of the City of VancouversExpression of Interest (EOI) process regarding container housing and identifies any opportunities thatmight apply to the City of Winnipeg for future housing development.

There are no financial implications associated with these recommendations.


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CONSULTATION

In preparing this report there was consultation with:

SUBMITTED BY

Department: Planning, Property and DevelopmentDivision: Housing Development Division

Prepared by: Dave DessensDate: November 9, 2010File No.O:\Reports Directive\Housing Development\RIS ISBU Housing.doc


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APPENDIX A

History of ISBU-Based Housing1

BackgroundAn Inter-Modal Steel Building Unit(ISBU) is the name given to an inter-modal shipping container that is usedfor building construction or storage.The most common containers areconstructed of steel and manufacturedin 20 and 40 foot lengths, althoughother lengths are also available.Container interior width is 7 feet 8inches, and heights range from 7 feet10 inches for standard boxes to 8 feet10 inches for high cubes. Sizes mayvary by manufacturer.

Since the early 2000s, ShippingContainers have become popular insome parts of the world for use ashome, storage, prefab, and businessconstruction. The most common residential use appears to be temporary modular housing (i.e.work camps, etc.) that can be moved as needed. In some limited cases, more permanentresidential structures have been built partially or entirely from ISBU modules.

ISBU modules can be developed from used shipping containers, and this is perhaps morecommon when units are customized for a specific development (such as a single-family home).In other cases, ISBU modules are manufactured specifically for use as housing, and areshipped to location for assembly. These purpose-built units are more commonly built fromnew containers that are specifically designed and manufactured as housing units, andessentially represent a form of modular housing that can be stacked for multiple storeydevelopments.

Construction in Europe and ElsewhereUrban Space Management Ltd. (USM) is a British management organization with more than 30years experience in urban regeneration initiatives. In 2000, USM established a system calledContainer City (http://www.containercity.com ), which uses shipping containers linked togetherto provide high strength, prefabricated steel modules that can be combined to create a wide

variety of building shapes. USM has used this system to develop a wide range of projectsincluding studio space, retail space, youth centres, live/work space, office space, artist studios,general practice, office space, classrooms and a nursery.

1http://www.intermodal-design.com/About.html (Photo used with permission)


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The USMs earliest residential development was Container CityI, which was completed in London in 2001. This developmentoriginally produced 12 work/studios in a 3-storey building, andwas later expanded to add three live/work apartments in afourth floor. In 2002, the company added 22 studio units in a 5-storey building called Container City II. Since that time, USM

has undertaken a number of projects in and around Londonand the UK, and is planning a retail/residential development inNew York (the American project has not been confirmed).

Tempohousing (http://www.tempohousing.com/) is anotherprolific developer of modular housing that is based in TheNetherlands, and has undertaken housing development usingISBU modules in a number of countries around the world.These projects include development of hotels, student housingand transitional housing. In some cases, development includestraditional construction of the main floor, with upper floors being

developed using

ISBU modules. In other cases, the entirehousing development has been establishedusing ISBU modules as a temporary structurethat will be replaced by a permanent structurewithin a period of years.

The Tempohousing website describes severalprojects that are either complete or underway.

One of their first projects was a 1,000 unit student dormitory inAmsterdam that provides self-contained units with separatebalconies. This development was intended to be moved afterfive years, but that relocation has been postponed until 2016.

Likewise, Tempohousing constructed a 250 unit studenthousing development in Diemen, which borders Amsterdam.This project was started in December 2007 and completed in

April 2008. Also in Amsterdam, Tempohousing constructed athree storey mixed-use development for the Salvation Army.The main floor was built using conventional concreteconstruction, on which two storeys of housing units were builtusing ISBU modules. The project was commissioned for use inSeptember 2008.

Temphousing developmentis not limited to the

Netherlands. They also builta 168 room hotel inYenagoa, Nigeria. As withthe Salvation Army project,the main floor of the hotelwas built using conventionalconcrete construction, andfour storeys of prefabricated


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rooms were built above the concrete main floor.

Buildings constructed from modular units can be completed quickly, which is a distinctadvantage in emergency situations. As an example, Tempohousing shipped 70 prefabricatedhotel rooms to Haiti in July 2010, and these modules will be used to construct a new hotel inPort-au-Prince to replace one that collapsed in the recent earthquake that devastated the

country. The 70 units will be the first wing of a larger development, and were shippedcompleted and intact with all furnishings. The completed hotel is expected to be ready inOctober/November 2010.

It is assumed that both Container City and Tempohousing projects were designed byprofessionals and complied with the applicable codes.

Construction in North AmericaMultiple-family ISBU housing projects have been proposed in several cities in North America,but to date no urban development has been initiated. Primary impediments have been zoningconcerns and building code questions regarding structure and fire separation between units.Even so, several single-family detached homes have been built both in Canada and the United

States.

Other jurisdictions in Canada are currently exploring use of modular housing including thatbased on ISBU modules. Vancouver in particular appears interested in the concept. On July22, 2010, the City of Vancouver passed a motion that, Council direct the City Manager toundertake an expression of interest (EOI) to ascertain the range of possibilities and partnershipsavailable to pursue an initiative involving modular housing options, using city and privateresources as an enabler, to address unmet housing need while sufficient permanent housingstock is being built. The intent of this motion is to explore opportunities to develop temporaryhousing using all forms of modular housing, including that from ISBU modules. Vancouver Cityadministration expects to issue the EOI by year-end, with a Request for Proposals being issuedin spring 2011.

Inquiries were made to authorities in Victoria, B.C., Surry, B.C., Calgary and Edmonton, Alberta(as well as to Alberta Municipal Affairs). It was confirmed that no multiple-family developmentshave been built in any of these jurisdictions using ISBU modules.

Benefits of ISBU-Based Housing

Construction TimeframeAs demonstrated by the Tempohousing developments, modular construction can be completedin a very short timeframe compared to conventional construction methods. Modular units arecompleted off-site and shipped intact to the site for assembly. This characteristic of modularconstruction offsets development challenges in Winnipeg created by winter construction. It also

provides opportunity to address critical housing needs if the site and infrastructure (hydro, sewerand water) are readily available. These units can later be relocated as local housing needsshift.

Flexibility to RelocateHousing constructed from ISBU modules is often intended as temporary housing while morepermanent structures are being developed. These modules can then be moved to anotherlocation, reassembled, and established as housing in a new location. Alternatively, ISBU


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modular housing can be assembled as a permanent structure on a permanent foundation. Thisflexibility creates a wide range of opportunities to address housing needs.

Re-Use of Excess ContainersAccording to the British Columbian online magazine The Tyee(http://www.TheTyee.ca), morethan two million twenty foot equivalent units (TEUs) flow through Port Metro Vancouver every

year (containers come in varying sizes and are measured as TEUs, so that a 40 foot containerequals two TEUs). Most of these containers originate in China, Japan and Korea and are re-used as shipping containers; however, approximately 100,000 containers are left behind assurplus. These surplus containers can be recycled, but a typical 40 foot container requiresapproximately 8,000 kilowatt-hours of energy to melt and remanufacture.2 A moreenvironmentally-friendly solution is to use the existing steel box for an alternative use withoutsignificant alteration of its existing form.

While surplus containers are prevalent in port cities such as Vancouver, Winnipeg does notsuffer from this problem. Through discussions with CN and Canadian Pacific Railway, it wasdetermined that only small numbers of surplus containers (usually less than ten at a time)become available occasionally in Winnipeg, and those containers are auctioned off only after

they are no longer usable as shipping containers. Containers can be purchased throughauctions from other jurisdictions, but those containers must then be shipped to Winnipeg at thepurchasers expense.

Challenges to Developing ISBU-Based Housing

Potential ContaminantsConstruction from used containers offers environmental benefits, but creates concernsregarding potential contamination of units from past contents. As stated by one manufacturer ofpurpose-built units, I am biased against used containers. I was in the shipping business.These containers go all over the world. You dont know what kind of freight they carry. Andthen you expect people to live in them?3

This disadvantage is minimized if containers are surplus after a single use, as is the case ofsurplus units accumulating in port cities such as Vancouver. These containers are generally invery good condition and the history of contents is readily available. These units are not typicallyavailable in Manitoba and would need to be purchased in Vancouver and shipped to Winnipegat the purchasers expense.

Zoning and Land UseAn inter-modal shipping container in and of itself does not constitute a structure, and is notallowed as stand-alone building unless it is modified to comply with applicable building codes.Once the unit has been modified to comply with code as a structure, normal zoning and landuse restrictions would apply, including a requirement for zoning as RMF (Residential Multiple-

Family) if the structure was used as a multiple-family residential development.

Building Code ComplianceA structure based on ISBU units would be subject to regulation under the Manitoba BuildingCode as would any other residential structure, and these requirements would apply to structural

2 Paulsen, Monte. Green and affordable homes, out of the box. The Tyee, April 12, 2010.3 Paulsen, Monte. Homeless housing for less. The Tyee, April 14, 2010.


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sufficiency, foundation design, insulation, fire rating criteria and sound transmission.Examination for compliance and the involvement of design professionals would be necessary ineach of these areas as described. Examination and confirmation of code compliance wouldhave a cost implication in each case.

Structural Sufficiency

There is no structural data that will substantiate that the shipping container will supportWinnipeg snow or wind loads. The services of a professional engineer will be required todetermine the structural adequacy of the ISBU to support the snow and winds loads forWinnipeg. The containers are subject to an ISO standards and the analysis would have to bebased on these standards. If there are varying types, each will have to be assessed andregistered as compliant.

Dwelling units are commonly provided with windows and doors as such openings must be cutinto the ISBU. The engineer will have to establish that, if openings are cut into the ISBU, thestructural integrity of the ISBU is maintained. If the location of openings is limited, then thoselimitations must be established and fully documented.

FoundationThe ISBU will require a foundation that is designed by a professional engineer that is registeredin Manitoba. The foundation design will have to indicate the design details to support the verticalloads associated with both snow and dead loads. The foundation must also include anchoragedetails to hold down the ISBU for uplift and overturning due to wind loads.

InsulationAll exterior elements of a residential dwelling unit are required to have insulation. The insulationlevels are as follows:

i. Roof RSI 8.8 (R-50) as of December 1, 2010ii. Walls RSI 3.5 (R-20)iii. Floor (above unheated spaces) RSI 4.0 (R-28)

The insulation levels of an ISBU are minimal as such insulation will be required to be added tothe ISBU to achieve code compliance.

Fire Rating CriteriaA residential occupancy, that contains not more than one dwelling unit, requires the exteriorwall(s) to have a 45-minute fire-resistance rating if the wall(s) is located less than 1.2 meters (4feet) to the property line.

If 2 or more ISBUs are placed side-by-side or stacked, a wall/floor having a -hr fire separationis required between the units OR 1-hr, if the ISBUs contain 2 or more storeys.

Sound Transmission

If 2 or more ISBU are places side-by-side or stacked, an assembly having a sound transmissionclass rating of 50 shall be provided between each unit.

Cost Analysis

Determining capital costs for developing housing from ISBU modules is challenging, especially ifestimating cost for development from used containers. As indicated in the previous section, thistype of construction will require analysis of structure, foundation, fire separation and insulation


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against sound transmission. These costs would be in addition to the actual cost of constructionfor converting ISBU modules into housing. Regarding conversion costs, ISBU modules wouldrequire modification for windows and doors, wiring, plumbing and thermal insulation. Interiorframing and finish would be necessary, in addition to sound insulation and fire barrier additionsbetween units.

Cost comparison to conventional forms of construction is also dependent on the height of thestructure, which will determine type of construction and requirements for elevators in thebuilding. National building code allows for wood frame construction (if the building is sprinkleredthroughout) to a height of four storeys, after which the structure must be noncombustible (i.e.concrete and steel). As well, an elevator is required for buildings over 18 metres in height,which again adds to the cost of taller buildings. Although costs for conventional constructionvary widely according design and quality of finish, wood frame buildings generally cost $125 to$150 per square foot, while steel frame buildings generally cost $175 to $200 per square foot.These amounts would include the building foundation and other capital construction costs.

Accurate cost estimates for construction using ISBU modules would best be achieved through arequest for expressions of interest, as is being conducted in Vancouver. Barring availability of

details related to a specific project, potential ISBU developers have estimated general costs persquare foot for this type of development, which would then be adjustable according to project-specific requirements. These estimates have ranged from $100 per square foot for low-incomeor affordable low-rise housing (under four storeys) to as much as $200 per square foot for upperend high-rise development.

These costs are consistent with those quoted by C-Bourne Structures Western Canada Ltd.(http://www.cbourne.ca), which distributes purpose-built units manufactured in China. Modularunits supplied by this distributor can be configured using 20-foot or 40-foot long units atapproximately $100 per square foot, excluding foundation and utility connections. This type ofhousing would be comparable in cost and concept to other forms of modular housing, notingthat standard modular housing is not constrained to size of ISBU modules. Conventional

modular housing is manufactured in southern Manitoba and is readily available to the Winnipegmarket.

C-Bourne also provides fully self-contained and fully furnished 320 square foot units forapproximately $130 per square foot (again, exclusive of foundation or utility connection costs).Units can also be leased from the company for $350 per month per unit, with an option for thelessee to acquire units after seven years for a nominal fee. These units would be moreappropriate for temporary housing that requires minimal time and effort to establish (workcamps, etc).

Conclusions

Housing constructed from ISBU modules offers several advantages, including fast on-siteconstruction, flexibility as a temporary or permanent structure, and potential environmentalconsiderations if modules are developed from used shipping containers. The temporary natureof development does not negate the need for proper zoning or land use consideration, andthese factors would require attention regarding any proposed development.

Environmental benefits to using used shipping containers mainly provide an alternative toshedding and melting metal in the recycling process. Housing is one alternative for reusing


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containers, and they can also be used for storage or nonresidential construction. Usedcontainers are not readily available in Winnipeg, and would necessitate purchase and relocationfrom locations such as Vancouver or Toronto. Environmental benefits would therefore accrue tosource locations rather than to Winnipeg.

There is no clear economic advantage to ISBU modular housing, since conventional modular

housing would serve the same purpose for approximately the same cost, and conventionalconstruction would cost the same or potentially even less for equivalent construction. Theprobability of meeting code compliance would be challenging and potentially expensive,especially if units are built from used shipping containers, and these questions increase the riskof undertaking ISBU modular construction until they are addressed.

The City of Vancouver is preparing to formally request Expressions of Interest for housingdevelopment using modular housing, and they could potentially receive proposals fromdevelopers using ISBU modules. It is recommended that the Winnipeg Public Service monitorthe progress and results of the Vancouver process to identify any opportunities that might applyto the City of Winnipeg for future housing development.

2010 winnipeg modal housing report

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