Downtown Eastside Economic Revitalization: Grants

ADMINISTRATIVE REPORT

Date: July 18, 2000
Author/Local: N. Edelson/7444

J. Barr/632-9668

RTS No. 01628

CC File No. 8104

Council: July 25, 2000

TO:

Vancouver City Council

FROM:

Central Area Planning, in consultation with the Vancouver Economic Development Commission

SUBJECT:

Downtown Eastside Economic Revitalization: Grants for City Inspections, Permits and Licenses for Locally Based Businesses in the Lease-Subsidy Program.

RECOMMENDATION

A. THAT the Downtown Eastside Lease-Subsidy Program ("Program") be amended to include a provision to enable the Vancouver Economic Development Commission (VEDC) to pay the costs of City inspection, permit and license fees on behalf of businesses owned and operated by registered charities that Council approves to receive a grant, pursuant to section 206 (1)(a) of the Vancouver Charter, payable as a Lease-Subsidy. These fees are to be paid, if necessary, from the grant monies which Council approves be made to each respective registered charity participating in the Program.

B. THAT Council amend the grant approved on May 16, 2000 to Common Concerns for Clothes Encounters so as to allow grant monies to be used for both the lease-subsidy and payment of City inspection, permit and license fees and to enable the VEDC to pay the cost of these City fees on behalf of Common Concerns.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services supports the foregoing.

COUNCIL POLICY

· On March 16, 2000, Council approved a Lease-Subsidy Pilot Program to encourage locally based businesses owned and operated by registered charities to locate in the Downtown Eastside. The Program is managed by the VEDC in consultation with Real Estate Services, Planning and representatives from the community.

· On May 16, 2000, Council approved a grant of up to $72,000 to be made to Common Concerns for the start-up and continued operation of Clothes Encounters, a coin laundry and café.

PURPOSE

This report seeks an amendment to the Downtown Eastside Lease-Subsidy Program to enable the VEDC to pay City fees associated with inspections, permits and licenses on behalf of businesses approved or to be approved by Council for a grant under this Program.

The first of such businesses is one owned and operated by Common Concerns called "Clothes Encounters" a coin laundry/café for which Council approved a grant of up to $72,000 on May 16, 2000. The VEDC now seeks authorization to use a portion of this grant (approximately $4,500) to pay for City inspection, permit and license fees for this business to set up operations at 11 West Hastings Street (See Appendix A).

DISCUSSION AND FINANCIAL IMPLICATIONS

On May 16, 2000, Council approved $150,000 for the Program as part of the Downtown Eastside allocation in the 2000 - 2002 Capital Plan. Under this Program, Council approved the granting of lease-subsidies to registered charitable institutions which were seeking to operate in the Downtown Eastside within the area specified for the Program. The grant monies were to be paid by the City to the VEDC to administer and distribute in accordance with certain conditions specified in the Program Report. One of the conditions which Council approved provided that the grant monies were only to be used towards a subsidy for lease payments and could not be distributed by the VEDC for any other purpose.

By a separate Report to Council dated May 05, 2000, and approved on May 16, 2000, Council approved a grant of up to $72,000 to Common Concerns under the Program. The purpose of this grant was to operate "Clothes Encounters", a coin laundry/café. A lease was successfully negotiated with the assistance of Real Estate Services for the storefront at 11 West Hastings Street. It will result in a subsidy of about $36,000 over a 3 year period - half the maximum amount of the grant approved by Council. Appendix A shows an estimate of about $4,500 in City development, building, business, health, electrical, plumbing, sprinkler and gas permit and license fees required for "Clothes Encounters" to commence operations at this site.

Given the difficulties of securing private financing and starting new businesses in the Downtown Eastside, it would be helpful if terms of the Program were amended to give the VEDC the authority to pay these fees on behalf of Common Concerns in a timely manner. This authority would also apply to any other registered Charities which Council approves to participate in the Program in the future. The maximum grant once available would not be increased, but the amendment will allow money to be allocated both for lease-subsidies and City fees to start the business operations.

CONCLUSION

"Clothes Encounters" was the first locally based enterprise approved to receive a grant from the City under the Lease Subsidy Program. Amending the program to allow the subsidy to cover the cost of City fees will help enable this laundry/café to secure a site and bring a legitimate business and much needed service back to Hastings Street. This amendment will also likely be of assistance to future businesses which Council approves to participate in the Program.

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APPENDIX A
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ESTIMATED FEES FOR INSPECTION, PERMITS AND LICENCES FOR "CLOTHES ENCOUNTERS" AT 11 WEST HASTINGS STREET.

TYPE OF PERMIT

COST PER ITEM

TOTAL COST $

Site Inspection

$102.00

Development Permit

fee for non-profit societies

$313.00

Building Permit

based on $25,000spent on renovations

$231.00

Plumbing Permit

1^st 3 fixtures: $95.00
each additional fixture: $34.00

$843.00

Electrical Permit

based on $25,000 estimated electrical renovations

$816.00

Gas Permit

based on BTU/hour rating:

$121.00

Sprinklers

1^st head: $352.00
Each head thereafter per 100 sq ft $1.71
hose connections: $18.50
Back flows: $97.00

$352.00

$42.50
$92.50
$97.00

Health Permit

$121.00

Business License

Coin Operated Laundry License: $246.00
Limited Food Service License: $332.00

$578.00

Sub total

$3709.00

PST/GST

$519.26

total

$4228.44

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TO:	Vancouver City Council
FROM:	Central Area Planning, in consultation with the Vancouver Economic Development Commission
SUBJECT:	Downtown Eastside Economic Revitalization: Grants for City Inspections, Permits and Licenses for Locally Based Businesses in the Lease-Subsidy Program.

TYPE OF PERMIT	COST PER ITEM	TOTAL COST $
Site Inspection		$102.00
Development Permit	fee for non-profit societies	$313.00
Building Permit	based on $25,000spent on renovations	$231.00
Plumbing Permit	1^st 3 fixtures: $95.00 each additional fixture: $34.00	$843.00
Electrical Permit	based on $25,000 estimated electrical renovations	$816.00
Gas Permit	based on BTU/hour rating:	$121.00
Sprinklers	1^st head: $352.00 Each head thereafter per 100 sq ft $1.71 hose connections: $18.50 Back flows: $97.00	$352.00 $42.50 $92.50 $97.00
Health Permit		$121.00
Business License	Coin Operated Laundry License: $246.00 Limited Food Service License: $332.00	$578.00
Sub total		$3709.00
PST/GST		$519.26
total		$4228.44