CITY OF VANCOUVER

ADMINISTRATIVE REPORT

 

Date:

March 5, 2004

 

Author:

Catherine Wong & Celine Mauboules

 

Phone No.:

7975/6198

 

RTS No.:

04027

 

CC File No.:

4657

 

Meeting Date:

March 23, 2004

TO:

Vancouver City Council

FROM:

The Director of Current Planning in consultation with the Director of the Housing Centre and the Director of Legal Services

SUBJECT:

Single Room Accommodation (SRA) By-law: 1212 Granville Street (Ambassador Hotel) Joint Application for Exemption and Conversion Permit.

RECOMMENDATION

CITY MANAGER'S COMMENTS

The City Manager RECOMMENDS approval of A and B.

COUNCIL POLICY

The SRA By-law, enacted by Council on October 21, 2003, contains provisions which allow owners of designated SRA rooms to apply to exempt these rooms from the By-law provided the necessary evidence is submitted.

The By-law also requires owners wanting to convert or demolish designated SRA rooms to first apply for and obtain a Single room Accommodation Permit. Council decides each application and may refuse the permit, approve the permit outright or approve the permit with conditions attached.

PURPOSE AND SUMMARY

The Lam family own the Ambassador Hotel (1212 Granville Street) and the Canadian Hotel (1203 Seymour Street) - both of which are on the list of buildings with designated SRA rooms. The Ambassador contains 42 designated rooms, while the Canadian has 26 rooms.

This report provides an overview of the owner's application to exempt 38 out of a total of 42 SRA-designated rooms at the Ambassador Hotel, and the owner's Permit application to convert the remaining 4 rooms to tourist (transient guest) use. The report also provides a rationale for staff's recommendation that Council approve the applications.

BACKGROUND

On October 21, 2003, Council enacted the Single Room Accommodation By-law to regulate the conversion or demolition of single room accommodation in the downtown core.

An owner of a building containing SRA-designated rooms may apply to exempt these rooms from the By-law provided evidence can be submitted, satisfactory to Council, that the designated rooms meet the exemption conditions that:

Council must grant the exemption if it is satisfied that the designated rooms meet the exemption conditions.

The By-law requires Council approval for the conversion or demolition of single room accommodation. The By-law also allows Council to require the owner to fulfil certain conditions prior to issuing the permit.

DISCUSSION

APPLICATION FOR EXEMPTION

The owner is seeking Council approval to exempt 38 rooms in the Ambassador Hotel from the SRA By-law.

The Ambassador Hotel was purchased by the Lam family in 1988, and has since been used primarily as a hotel for budget travellers. During the slow season, however, the hotel also provided accommodation to permanent residents.

In 1999, renovation plans went underway to convert the Ambassador Hotel to 100% tourist accommodation. Part of the plan included first opening a restaurant on the ground floor. In May 1999, City permits were obtained for the ground floor restaurant at the Ambassador, and in September 1999, the Wildwood Restaurant was opened. In January 2000, while working in the restaurant, Shirley Lam was shot and almost died as a result of the shooting. Consequently, the Wildwood was closed and renovations to the rest of the building were put on hold.

By January 2003, the owner was back at work and again began the renovations which included exterior and interior alterations to refurbish the lobby, replacing old carpets, repainting, and installing a new fridge in each room. At the time these renovations were being planned, there were roughly 20 permanent residents at the Ambassador Hotel. A few tenants per month were relocated to the Canadian (1203 Seymour) as the renovations proceeded. The owner provided the City with written statements from some of the relocated tenants expressing satisfaction with their new accommodation at the Canadian Hotel (included in Appendix A).

By October 21, 2003 (date of SRA By-law enactment) there were 4 long-term tenants left at the Ambassador. Three of the four tenants have since been relocated to the Canadian Hotel. Today, only one long-term tenant remains. The owner has agreed to allow this tenant to stay as long as he wishes, but has indicated that the monthly rent will likely be increased by $20.

Evidence for Exemption

The owner met with staff on a number of occasions and provided the necessary evidence to support her application for the exemption of 38 out of a total of 42 SRA-designated rooms in the Ambassador. (See Appendix A for evidence in support of the application for exemption.)

Under the SRA By-law, one of the conditions of exemption is that the rooms must not be in a building or portion of a building classified under the Assessment Act and its regulations as Class 1 - residential. Records with the BC Assessment Authority show that up to 2002, the Ambassador Hotel has been classified under the Assessment Act and its regulations as 100% Class 6 - commercial/retail.

In January 2003, when renovations resumed, the Ambassador had roughly 20 monthly tenants. At the owner's request, a review by BC Assessment was conducted and a portion of the property was reassessed to Class 1- Residential. By September 2003, the renovations were completed, and the property was once again reassessed at 100% Class 6 - commercial/ retail. A copy of their 2003 and 2004 Assessments are included in Appendix A.

Another condition of exemption is that the rooms must be in a building or portion of a building in respect of which the owner has an obligation to pay or remit hotel room tax under the Hotel Room Tax Act and its regulations. The owner advised that she has been remitting hotel room taxes since 1989. A Certificate of Registration under the Hotel Room Tax Act was provided and is attached to Appendix A.

The last condition of exemption set out in the By-law requires that the rooms in question be not occupied or customarily occupied by a permanent resident as living accommodation. To this end, the owner submitted a sworn affidavit and daily & weekly rent receipts for the necessary time periods as determined by staff. The evidence submitted shows that since the By-law enactment date, permanent residents as defined in the By-law, have not occupied or customarily occupied the 38 rooms in question in the Ambassador Hotel as living accommodation.

APPLICATION FOR SINGLE ROOM ACCOMMODATION PERMIT

In addition to the Exemption application for the 38 rooms, the owner is also applying for a Single Room Accommodation Permit to convert the remaining 4 designated SRA rooms in the Ambassador to tourist (transient guest) use. In exchange for an SRA Permit to convert the remaining 4 rooms, the owner is willing to enter into a Housing Agreement to be registered on the title of the Canadian Hotel. The contents of the Housing Agreement will be further discussed below.

Factors for Consideration in Granting a Single Room Accommodation Permit

The Single Room Accommodation By-law requires that Council consider a number of factors in deciding whether or not to grant approval to a permit to demolish or convert a building with SRA rooms. These factors include the supply of low-cost accommodation, the quality of the SRA stock, the future availability of the stock, and other benefits which Council considers relevant.

The Supply and Future Availability of Low Cost Accommodation

According to the Housing Centre's 2003 Survey of Low-Income Housing in the Downtown Core, over the last twelve years, the loss of units has basically kept pace with the creation for replacement units geared to low-income singles in the Downtown South (sub-area in which the Ambassador is located). According to the Survey, there has been a net gain of 30 SRA rooms between 1991 and 2003. However, since the mid-nineties the majority of conversions have occurred in the Downtown South as the area became more attractive to the budget traveler and backpacker. The pressure on the remaining stock will likely continue to grow. While the Province continues to provide funding for the creation of housing through its Independent Living program, these units are not geared to low-income singles - individuals that typically live in SRA rooms. The Single Room Accommodation By-law is a tool that allows Council to manage the rate of change in the low-income housing stock by considering each conversion or demolition on a case-by-case basis.

In the case of the Ambassador, Council may approve the SRA Permit to convert the designated 4 SRA rooms to tourist use on the condition that the owner enter into a Housing Agreement for the Canadian Hotel. Council also has a number of other options it may want to consider:

Staff are recommending Council approve the permit on the condition the owner enter into a 5 year Housing Agreement for the Canadian Hotel that would require the owner to maintain;

The Quality of SRA Housing

Like many SRA buildings, the Canadian was built in early 20th century. Despite its age, the rooms in this building have been kept in reasonably good condition as confirmed by recent inspection reports by staff in the Licenses and Inspections Department. The owners recently installed hard-wired smoke alarms in each of the 26 rooms. All work has been inspected and approved by City Building and Electrical Inspectors. As well, the owners installed new refrigerators and cablevision in all the rooms, and replaced all existing old furniture and linen. Tenants are provided with maid service once a week to help keep their rooms clean. While rules are in place in the common areas (kitchen in particular) requiring all garbage be cleared and soiled dishes be washed, the owners have staff to ensure this is done on a daily basis, so that any pest infestation problems are under control. The building is also run in a secured environment (24-hour presence at front desk).

Other Benefits

1. Housing

2. Community Partnerships

CONCLUSION

Staff recommend the approval of an application to exempt the 38 rooms listed in the affidavit in Appendix A, from the SRA By-law. Staff is satisfied that these rooms meet the exemption conditions, and the Ambassador Hotel owner has submitted to staff evidence that:

(a) the classification for the Ambassador Hotel under the Assessment Act and its regulations is 100% Class 6 - commercial/retail;

(b) the Ambassador Hotel is subject to and pays the hotel room tax under the Hotel Room Tax Act and its regulations; and

(c) on the By-law enactment date and since then, permanent residents, as defined in the By-law, have not occupied or customarily occupied the 38 rooms listed in the affidavit as living accommodation.

Staff also recommend the approval of a Single Room Accommodation Permit to convert the remaining 4 rooms to tourist accommodation on the condition that the owners enter into a Housing Agreement to be registered on the title of the Canadian Hotel.

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