CITY OF VANCOUVER

ADMINISTRATIVE REPORT

 

Report Date:

February 24, 2005

 

Author:

Carol Ann Young/Suzy Blown

 

Phone No.:

604.871.6042

 

RTS No.:

4894

 

CC File No.:

2005

 

Meeting Date:

March 15, 2005

TO:

Vancouver City Council

FROM:

Director of Social Planning

SUBJECT:

Capital Grant - Central City Mission Foundation for the Acquisition of
717 Princess Avenue

RECOMMENDATION

COUNCIL POLICY

The 2003-2005 Capital Plan included a provision of $2,250,000 for City Social Services and Cultural Facilities, of which $500,000 is for Capital Grants program for Social and Cultural projects in facilities not owned by the City.

In 2003, Council, Park and School Boards adopted the Childcare Protocol, which includes the objective to maintain and expand child care by 5% over the next two years.
On June 24, 2000, Council adopted the following principle to guide the development of an Economic Revitalization Strategy for the Downtown Eastside: develop and implement a well understood plan that delivers results. In January 2004, Council received the Draft Downtown Eastside Economic Revitalization Plan. The Plan outlines strategies and actions to increase business activity and job creation for the Downtown Eastside, which includes the area of the proposed Child Development Centre.

Approval of grants requires eight affirmative votes.

PURPOSE

The purpose of this report is to seek Council approval of a Capital Grant of $75,000 to Central City Mission Foundation for the 717 Princess Avenue Child Development Centre, with the condition that other funding sources are secured, prior to release of the Capital Grant and that Central City Mission Foundation makes a commitment to lease the space at a nominal rate for non-profit child care. This grant is for the remaining acquisition costs of an existing building at 717 Princess Avenue and for preliminary design costs. Given that there are a number of funding partners and the time sensitive nature of this purchase, it is necessary to seek approval at this time.

BACKGROUND

In August 2004, the Downtown Eastside area lost 90 licensed child care spaces as the St. Francis Xavier Daycare ceased operation after 18 years in the community. The facility had a capacity for 70 children in a part time child care program and up to 120 children in a part time preschool. Various community and government partners are seeking to re-establish child care spaces, with an emphasis on quality, diversity and accessibility to better meet the needs of the Strathcona community. Network Two Society, a group of community-based organizations, and the East Side Parents for Accessible Childcare, have played a lead role in developing the business plan with City of Vancouver and VanCity funding. The goal of the proposal is to create a quality child development hub with licensed child care as a cornerstone. The child development hub will be linked with community and health support services and provide programs that encourage and honour the cultural diversity of the children and families in the area.

The building is situated in the residential area of Strathcona. The area is a mix of long-time residents and new immigrants. It is predominantly low-income, with some middle income families. The area is of historical significance and there is a rich cultural history and diverse ethnic and cultural make-up.

The building is an 18 year old purpose-built child care centre. It is a two-storey, concrete building of over 10,000 square feet, in need of some upgrading, situated on a 13,725 square feet site. It is located on the south-west corner of Princess and East Georgia. A preliminary review of the site indicates that the building can accommodate 49 full-time licensed child care spaces on the main floor at 5,181 square feet (25 spaces for 3 to 5 year olds and 24 infant/toddler spaces); 20 part time and 20 preschool licensed spaces on the second floor at 5,189 square feet with ancillary space for Early Child Development (ECD) support services. Renovations would need to be completed to the building in order meet Community Care Facilities Licensing standards and the intent of the City of Vancouver child care design guidelines.

The total purchase price of the building is $1.82 million. Central City Mission Foundation, a philanthropic organization working the Downtown Eastside since 1907, has agreed to purchase the building and is contributing $1.2 million. The remaining portion of the purchase price and cost for preliminary design has come from various other funders:

The proposed child care centre is in an underserved area of Vancouver. An informal survey, conducted for the business plan, uncovered an urgent need for child care in the area. Currently, there are no full-time infant child care spaces, 12 full time toddler spaces, and 45 three to five year old spaces in the vicinity. The six local child care facilities contacted reported a number of families waiting for childcare. An additional 28 families have come forward since the waitlist count was completed, specifically needing infant or toddler care. It is expected that a number of local families need to access child care but are not formally on any waiting list and also that families from outside Strathcona area will be interested in accessing quality, licensed care.

Recent research completed by Dr. Clyde Hertzman, an epidemiologist from UBC, has highlighted the urgent need for supports to children in the Strathcona neighbourhood. Dr. Hertzman has mapped out children's readiness for kindergarten in all Vancouver neighbourhoods using the Early Development Indicator (EDI) instrument. The EDI is a research tool, completed by kindergarten teachers, that assesses children's readiness to participate in and benefit from school activities. The EDI measures children's development in five areas:

School readiness reflects children's early development and influences school success, health and well being later in life. Dr. Hertzman's current research compares EDI data from 2000 to 2004 and shows areas where children are most vulnerable. The most striking data is found in Strathcona neighbourhood, where 75% of children were vulnerable on all scales in 2004, an increase in vulnerability of 21% since 2001. Childcare plays an important role in preparing children for kindergarten and later successes in school and life. This data documents the urgent need for childcare in Strathcona neighbourhood.

DISCUSSION

In 2003, Council, Park and School Boards adopted the Childcare Protocol, which set out to maintain and expand child care by 5% over the next two years and to equalize access across the city. The Princess Avenue Development would expand child care spaces in one of the City's most vulnerable neighbourhoods where there are currently no full-time licensed group infant spaces and long waitlists for other programs.

On June 24, 2000, Council adopted the following principle to guide the development of an Economic Revitalization Strategy for the Downtown Eastside: develop and implement a well understood plan that delivers results. In January 2004, Council received the Draft Downtown Eastside Economic Revitalization Plan. Subsequently, staff have received public input and finalized the Plan in October 2004. The Plan outlines strategies and actions to increase business activity and job creation for the Downtown Eastside, which includes the area of the proposed Child Development Centre. One of the key strategies included within the Plan is to increase employment opportunities for residents in the Downtown Eastside. The employment strategy connected to the Economic Revitalization Plan is designed to help local residents fill new jobs that will be created by increased business activity. To do this, action is required to assist residents to improve their employment readiness and job retention skills and to encourage employers to hire residents and work cooperatively with local employment organizations. The Economic Revitalization Plan documents that "training is very important, but for women their ability to engage in employment training often requires daycare" (p. 16). With so little available child care within the area, increasing access to affordable child care is a key factor in the success of the Revitalization Plan. Child care is fundamental to labour force participation for parents, especially for women. Childcare is key to women's equality and economic security, particularly for low-income single mothers. Women's labour force participation is crucial for the revitalization of the Downtown Eastside and child care is an important factor in achieving this objective.

In April 2002, Council approved the strategic child development plan - "Moving Forward", Childcare: A Cornerstone of Child Development Services - as the basis for future design of child care/child development services. The vision outlines a plan for creating a number of child development hubs at the neighbourhood level. Hubs incorporate a continuum of child development services of which licensed child care is a cornerstone.

The Princess Avenue Child Development Centre fits with the City's Childcare Protocol, Downtown Economic Revitalization Plan and Strategic Child Development Plan. The Princess Avenue proposal includes increasing child care spaces and providing a variety of child development programs to create a neighbourhood hub:

And possibly other supports such as:

These programs are provided and supported by a variety of partners and funding sources. The diversification provides for added stability in projected support and revenue. There is also significant potential to develop evening and weekend programs to meet the needs of children and families.

Capital fund raising will be required for upgrading to the facility in order to meet the City of Vancouver Childcare Design Guidelines, provincial Community Care Licensing Regulations and the needs of the community for infant and toddler care. The required upgrades are expected to include: renovations for the creation of a discrete infant and toddler spaces, kitchen renovations, minor building repair, playground renewal, start-up equipment and ancillary office space.

Central City Mission Foundation will need to hire an architect to complete design drawings to
determine capital renovation costs and conduct a fund-raising campaign. Once funding is secured, building permits will be obtained and construction will begin to complete the renovations. Once renovations are complete and licensing has occurred the centre can start operations.

Staff recommend that the $75,000 requested by Central City Mission Foundation be approved, on the condition that the project can demonstrate approval of the remaining funds for purchase of the building and for preliminary design.

FINANCIAL IMPLICATIONS

A total capital grant of $75,000 is recommended with funding provided from the approved but unallocated 2003 Capital Grants budget. Council approved an allocation of $500,000 for Capital Grants in the 2003-2005 Capital Plan. On May 15, 2003, Council approved an allocation of $200,000 in the Capital Budget for the 2003 Capital Grants Program, and on July 31, 2003, approved allocations totaling $37,300, leaving an unallocated balance of $162,700. The proposed capital grant of $75,000 to Central City Mission Foundation outlined in this report will leave an unallocated budget of $87,700.

The purchase price of the building is $1.82 million. The funding for purchase and cost for preliminary design has come from various funders. Project renovations cost will be assessed and once design drawings are complete, Central City Mission Foundation will lead a capital campaign to secure necessary funds for renovations. Central City Mission Foundation may, as part of their campaign, request additional capital funding for renovations from the City of Vancouver.

Central City Mission Foundation

$1,200,000

Ministry of Children and Family Development

$250,000

CIBC

$50,000

Christopher Foundation

$22,500

VanCity Foundation

$75,000

Vancouver Agreement

$200,000

City of Vancouver (proposed)

$75,000

Total *

$1,872,500

CONCLUSION

Social Planning recommends Council approval of a one-time Capital Grant to the Central City Mission Foundation for $75,000 to complete purchase of and begin preliminary design for the 717 Princess Avenue Child Development Centre, on conditions that remaining funds for acquisition of the building have been secured and that Central City Mission Foundation commits to lease the space at a nominal rate for the purposes of non-profit childcare. Funding includes $75,000 from the unallocated 2003 Capital Grants budget.

* * * * *

 

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© 2002 City of Vancouver