CITY OF VANCOUVER

Administrative Report

 

Date:

February 24, 2004

 

Author:

M.G. Thomson

 

Phone No.
Dept. File No.

873.7328
000 541

 

RTS No.:

04023

 

CC File No.:

5104

 

Meeting Date:

March 23, 2004

TO:

Vancouver City Council

FROM:

General Manager of Engineering Services in Consultation with
The Director of Legal Services

SUBJECT:

Additions to Proposed Lease of a Volumetric Portion of Georgia Street

RECOMMENDATION

COUNCIL POLICY

The authority for closing and disposing of streets and lanes is set out in the Vancouver Charter.

At a Public Hearing on July 25, 2002, Council approved the rezoning of 651 Expo Boulevard and 690 Beatty Street.

On October 22, 2002, Council approved Recommendations A to G contained in the October 7, 2002 report of the General Manager of Engineering Services to raise titles and grant volumetric leases for portions of Georgia Street and Dunsmuir Street, both between Beatty Street and Expo Boulevard.

SUMMARY

Portions of the Georgia Street and Dunsmuir Street Viaducts (the "Viaducts") between Expo Boulevard and the edge of the escarpment easterly of Beatty Street were dedicated as road by the deposit of Plan BCP 1978 on November 5, 2002.

The site, Lot 291 is proposed to be developed with a "Costco" store, above two levels of underground parking, with parking in the two levels above the Costco store and four residential towers above. The tower lobbies will generally be at the grade of the Viaducts. The main entrance of the Costco store will be at the approximate grade of Expo Boulevard.

The areas underneath the Viaducts are of limited use to the City. The best use is to have the area available for uses ancillary to the Costco store.

On October 22, 2002 Council approved a volumetric lease of these areas, subject to numerous conditions. One such condition was:

"16. The lease to contain a provision for the storage of up to seven Department of National Defence vehicles within the lease area, and to provide for unrestricted access to the vehicles including ingress and egress from the lease area, all arrangements to the satisfaction of the General Manager of Engineering Services;"

The project design has evolved considerably since October 22, 2002 and the applicant and staff have concluded that it will be necessary to include an additional portion of City-owned land in the Georgia Street lease area, so as to provide for storage of up to seven Department of National Defence ("DND") vehicles within the Georgia Street lease area.

PURPOSE

The purpose of this report is to extend the formal authorities to close, stop-up and lease portions of Georgia Street previously granted by Council over an additional portion of City-owned land (Lot C) and to establish Lot C as road.

Additional technical authorities are required so as to simplify the lease arrangements.

BACKGROUND

The lands west of Expo Boulevard, between Georgia Street and Dunsmuir Street lie within a "hole" at the base of an escarpment, east of Beatty Street and enclosed by the Georgia Street and Dunsmuir Street Viaducts.

The conditions of approval of the rezoning approved at Public Hearing on July 25, 2002 included requirements to dedicate the lands containing the Georgia Street and Dunsmuir Street Viaducts as road. Further, responding to the fact that existing surface parking for Drill Hall oversized vehicles would be lost as a result of the development the conditions of approval included the following:

"any agreements required to allow for the granting to the applicant, at a nominal cost, and for the life of the Costco Building, the granting of a lease, easement or any other right to use the space under the Viaducts.

These agreements will take into consideration the provision of long-term parking for the Beatty Street Drill Hall."

When Council approved, on October 22, 2002, the October 7, 2002 recommendations of the General Manager of Engineering Services and the Director of Legal Services to grant a volumetric lease of portions of Georgia Street and Dunsmuir Street, it was understood that this would include all the areas of Georgia Street dedicated road as a condition of the site rezoning.

One of the lease conditions established was:

"16. The lease to contain a provision for the storage of up to seven Department of National Defence vehicles within the lease area, and to provide for unrestricted access to the vehicles including ingress and egress from the lease area, all arrangements to the satisfaction of the General Manager of Engineering Services;"

Over the ensuing nine months, as the designs evolved and development permit application DE407454 was made, it became apparent that portions of City-owned Lot C would be required for Drill Hall oversized vehicle parking. Staff are recommending that portions of City-owned Lot C be added to the Georgia Street Lease area to allow for the development of seven Drill Hall oversized vehicles parking spaces.

DISCUSSION

At its meeting of July 9, 2003 the Development Permit Board resolved to approve Develop-ment Application DE407454, subject to a number of conditions, to permit the construction of a mixed-use project consisting of: at the Expo Boulevard level - a commercial component of approximately 144,725 square feet ("Costco"), with two levels of underground parking for 680 vehicles; and at the Georgia and Dunsmuir Viaducts level - four residential towers (23, 26, 30 and 32 storeys), and two-storey townhouses, for a total of 900 dwelling units, (the "Concord Residential Towers") with two levels of structured parking for 713 vehicles.

The design included a proposal to locate the seven Drill Hall oversized parking stalls partially on the dedicated portion of Georgia Street, under the Viaduct and partially on Lot C. A reduction of the current oversized vehicle parking design is attached hereto as Appendix "E".

The Development Permit Board approval included the following condition:

    "A.2.35 arrangements shall be made, to the satisfaction of the Director of Legal Services and General Manager of Engineering Services, for use of portions of City-owned Lot C, Block 49, District Lot 541, Plan LMP42064, for Drill Hall oversized vehicle parking. This may include the modifications of competing charges and interests."

The City has owned Lot C since October, 1970, although the current Lot C was only created by the deposit on Plan LMP42064 on May 14, 1999.

Lot C is bisected by the edge of the downtown escarpment. At its upper levels it contains the easterly production of Georgia Street, transitioning to the Viaduct structure.

The General Manager of Engineering Services has conducted a full review and has determined, in consultation with the Director of Real Estate Services, that Lot C should be established as road.

Lot C contains existing Central Heat (steam) facilities attached to the underside of the Viaduct, which facilities are not protected by a right-of-way. By establishing Lot C as road, (Recommendation A(3)) Central Heat will get the same rights that they have on the balance of our roads and no separate agreement is required.

Orca Bay Arena Corp. (GM Place) has easements registered over Lot C, for the temporary Viaduct Walkways connecting GM Place to the corner of Beatty Street and Georgia Street. The Costco and Concord Residential Towers development will result in the temporary viaduct walkways being replaced with permanent walkways. These portions on Lot C will form part of the City's sidewalk network.

The matters presented to Council today are technical in nature as the Costco and Concord Residential Towers design has evolved in such a way that it is necessary to seek Council authorities, the same as achieved October 7, 2002 over additional City-lands.

In a letter from the General Manager of Engineering Services to both the DND and Concord, he confirmed that:

    "The DND has indicated that they will also require parking for 7 oversized vehicles. The City has agreed to provide these stalls under either the Dunsmuir or Georgia Viaducts, at a nominal cost ($10 per year), for as long as the DND owns or occupies the Drill Hall site, or for a defined term of lease, acceptable to both the DND and the City. Concord Pacific has agreed to pay for the development of these stalls, with the DND responsible for security of the stalls."

The technical approvals contained in this report allow for realization of this arrangement.

Initially the lease area under the Georgia Viaduct will include all the areas shown in bold on Appendix C. This includes the westerly end of the seven Drill Hall oversized vehicle parking stalls. This will allow Concord to ensure their construction and initial security.

Recommendation C provides for either a separate lease, a sub-lease, a right-of-way or other form of tenure to place the seven Drill Hall oversized vehicle parking stalls, liability for them, and all responsibility for their security in the hands of the DND.

CONCLUSION

The technical authorities sought in this report are necessary to conclude the lease arrangement related to the Costco and Concord Residential Towers development (DE407454) as originally approved by Council on October 22, 2002. They will also allow for conclusion of the arrangements with the DND for parking of seven oversized vehicles under the Georgia Viaduct.

Therefore, the General Manager of Engineering Services, consultation with the Director of Legal Services and the Director of Real Estate Services, recommends approval of Recommendations A to F.

LINK TO APPENDICES A TO E

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