Cultural Harmony Awards 2012

THAT Council approve the following recipients for the 2012 Cultural Harmony Awards:

Vancouver Inter-Cultural Orchestra - ‘Organization’ Award

Joyce Lam - ‘Individual’ Award.

The Administrative Report October 3, 2012, refers.

Potential Sale of City-owned land located at 508 Helmcken Sreet and proposed closure and sale of adjacent lane and Potential Purchase of land for Housing and Development of Non-Market Housing

A. THAT Council authorize the Director of Real Estate Services to negotiate a conditional lease surrender (the “Lease Surrender”) with The 127 Society for Housing (the “Society”) and Provincial Rental Housing Corporation (“BC Housing”) for the City owned lands at 508 Helmcken Street, legally described as PID: 015-482-073, PID: 015-482-081, PID: 015-482-138, PID: 015-482-162 PID: 015-482-260 LOT 34 to LOT 38, all of BLOCK 94 DISTRICT LOT 541 PLAN 210 (the “City Property”), at no cost to the City.

B. THAT, subject to obtaining the Lease Surrender in A above, Council authorize the Director of Real Estate Services to enter into exclusive negotiations with Brenhill Developments Limited (“Brenhill”), the owner of 1077-1099 Richards Street, legally described as PID: 004-904-125 PID: 015-485-811 PID: 003-690-806, PID: 006-706-673 LOT 20 to LOT 23, all of BLOCK 84 DISTRICT LOT 541 PLAN 210 (the “Brenhill Lands”), over the next 12 months to:

(i) negotiate the sale of the City Property to Brenhill, together with a portion of lane described in Appendix A of the Administrative Report dated October 22, 2012, entitled "Potential Sale of City-owned land located at 508 Helmcken and proposed closure and sale of adjacent lane and Potential Purchase of Land for Housing and Development of Affordable Housing (the “City Lane”); and

(ii) negotiate the City’s acquisition of the Brenhill Lands;

such negotiations to be based on the following terms and conditions:

(a) the City to purchase the Brenhill Lands for a purchase price of $8,400,000, plus closing costs and taxes;

(b) the City to sell the City Property and City Lane (collectively the “City Lands”) to Brenhill for a price of $15,000,000, net of closing costs and taxes;

(c) the City successfully negotiating the terms of a development agreement with Brenhill, BC Housing, and the Society (the “Development Agreement”), on terms subject to final Council approval, in which Brenhill agrees to build an anticipated 172 turnkey replacement units of non-market housing (herein the “Replacement Non-Market Housing Units”), such final unit count, tenant mix, and terms of the operating agreement to be approved by Council; such Replacement Non-Market Housing Units to be constructed on the Brenhill Lands, to be owned by the City of Vancouver at no development or construction cost risk to the City; and,

(d) that the City’s maximum contribution towards funding the Replacement Non-Market Housing Units will be the sum resulting from the difference in the purchase price amount for the Brenhill Lands and the sale price amount for the City Lands, being $6,600,000, together with the CAC value of approximately $25,000,000 from rezoning the City Lands, to be used to finance the construction costs for the Replacement Non-Market Housing Units on terms as further set out in the Administrative Report dated October 22, 2012, entitled "Potential Sale of City-owned land located at 508 Helmcken Sreet and proposed closure and sale of adjacent lane and Potential Purchase of land for Housing and Development of Affordable Housing".

C. THAT, if the Director of Real Estate Services can successfully conclude such negotiations with Brenhill, BC Housing, and the Society, Council authorize the Directors of Legal and Real Estate Services to enter into a legally binding Lease Surrender and Contracts of Purchase and Sale, such agreements being subject to the City Lands being rezoned.

D. FURTHER THAT, if the Director of Real Estate Services can successfully conclude such negotiations with Brenhill, BC Housing, and the Society, Council authorize the Directors of Legal and Real Estate Services to enter into a legally binding Development Agreement, such agreement being subject to final City Council approval.

E. THAT the closure and sale of the City Lane will be subject to the approval of the rezoning of the City Lands at public hearing and approval by Council to stop up, close and convey the lane to the abutting owners.

F. THAT as part of the Development Agreement and rezoning process, Council authorize the Director of Real Estate Services to negotiate a requirement for Brenhill to provide a minimum of 110 units of new secured market rental housing, on the City Lands, to be owned by Brenhill, which market rental housing will be secured through the contemplated rezoning of the City Lands by a Housing Agreement entered into pursuant to section 565.2 of the Vancouver Charter, including covenants in favour of the City protecting this affordable rental housing stock for a minimum of 60 years or life of the building, whichever term is longer, and prohibiting subdivision by strata plan and separate sale of any of such units (the “City Housing Agreement”).

G. THAT as part of the Development Agreement, Council authorize the Directors of Legal and Real Estate Services to negotiate a new replacement lease with the Society and BC Housing for the Replacement Non-Market Housing Units, for a term of 60 years (the “Lease”), subject to Council approval. The Lease will require payment of property taxes in lieu unless the Replacement Non-Market Housing Units are classified by BC Assessment as a Class 3 supportive housing property.

H. THAT Council authorize the Director of Finance and Managing Director of Social Development to prepare a strategy for optimizing the value of a prepaid lease to the Society to the extent that mortgage financing is supported by the housing operations over the long term, with a report back to Council with recommended prepaid lease options.

I. THAT Council authorize the Director of Legal Services to negotiate with the Society and BC Housing, and Canada Mortgage and Housing Corporation (“CMHC”) for the transfer of two existing mortgages registered against the Society’s leasehold interest in the City Property in favour of CMHC under registration numbers #BK273470 and #BM295775 from the City Property to the Society’s leasehold interest pursuant to G above, in the building to be constructed on the Brenhill Lands upon the City successfully becoming the registered owner of the Brenhill Lands.

J. THAT Council accept a voluntary contribution from Brenhill to the City’s Affordable Housing Fund in the amount of $1,000,000, payable to the City at the time of successful enactment of the rezoning of the City Lands.

K. THAT Council authorize the creation of a 2013-2015 project management budget of $1,000,000 (the “Project Management Budget”) to be used to fund City project management services, expert consultants, Quantity Survey expenses, as well as to reimburse the Society for City approved legal fees, independent technical expert expenses, Jubilee tenant relocation costs, Land Title registration fees, overhead and administration expenses and related consulting costs as set out in the Administrative Report dated October 22, 2012, entitled "Potential Sale of City-owned land located at 508 Helmcken Sreet and proposed closure and sale of adjacent lane and Potential Purchase of land for Housing and Development of Affordable Housing"; source of funds to be the Brenhill contribution to the City’s Affordable Housing Fund as set out in J above.

L. THAT a Council decision to enter into a Development Agreement with Brenhill, BC Housing and the Society or Contracts of Purchase and Sale with Brenhill will not in any way limit Council or the City and its officials, including the Approving Officer, in exercising their discretion with respect to any related rezoning, permitting, or subdivision of the City Lands or Brenhill Lands.

M. THAT no legal rights or obligations will arise or be created between Brenhill and the City unless and until a legally binding Development Agreement, Contracts of Purchase and Sale, Lease Surrender, and Lease are successfully negotiated and executed and delivered by Brenhill and the City through its authorized signatories, the Director of Legal Services and the Director of Real Estate Services.

N. FURTHER THAT, if the Director of Real Estate Services is at any time during the 12 month negotiation period of the view that terms cannot be successfully concluded with either the Society, BC Housing, CMHC, and/or Brenhill, the City Manager and Director of Real Estate Services report back to Council for further direction.

O. THAT the City continue to pursue other sources of funding, but not to the detriment of the project moving forward.

The following materials refer:

• Administrative Report dated October 22, 2012 ;
• PowerPoint Presentation dated October 31, 2012 .

Verbal Briefing – Labour Relations

THAT the Comprehensive Settlement Framework for Collective Agreements covering employees represented by the CUPE Local 15 for the period of January 1, 2012, to December 31, 2015, be approved.

Proposed sale of 1327 Marine Drive, West Vancouver

A. THAT Council authorize the Director of Real Estate Services to accept an offer to purchase real property owned by 0583424 B.C. Ltd., a wholly owned subsidiary of the City, located at 1327 Marine Drive, West Vancouver and legally described as PID: 007-720-475, Lot F, Block 15, District Lot 237, Plan 15155 as shown highlighted on Appendix B attached to this report (the “Subject Property”) made by Serra Holdings (No. 3) Ltd. (“Serra”) for a purchase price of s. 17(1)   and enter into a conditional sale contract (a “Sale Contract”), on such terms and conditions as are satisfactory to the City’s Directors of Real Estate and Legal Services, but subject to Serra receiving a satisfactory development and environmental feasibility analysis within 30 days of offer acceptance and the Serra receiving satisfactory zoning approval by September 1, 2013.

B. THAT Council authorize the Director of Real Estate Services to execute any agreements required to effect A above.

The Report dated October 22, 2012 , refers.

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