A1
                         ADMINISTRATIVE REPORT

                                                  Date:  May 9, 1995
                                                  Dept File No: 3119

   TO:       Vancouver City Council

   FROM:     Manager of Real Estate, in consultation with
             Associate Director of Planning - Central Area

   SUBJECT:  Southeast Shore of False Creek -
             Development Consultant and Budget


   RECOMMENDATION

        A.   THAT Stanley  Kwok of Stanley Kwok  Consultants Inc. be
             awarded a contract to act as development consultant for
             the City's  lands on the Southeast Shore of False Creek
             effective June 1, 1995 for a maximum of 2.5 years, at a
             maximum annual fixed  fee of $240,000  plus GST; to  be
             paid  in maximum  monthly instalments  of $20,000  plus
             GST;  source of  funding to  be the  Property Endowment
             Fund; and

             FURTHER  THAT  the   Director  of  Legal  Services   be
             instructed to prepare the necessary documents; it being
             noted  that no  legal right  or obligation  shall arise
             until execution of the documents.

        B.   THAT a maximum sub-consultants  budget of $1,500,000 be
             allocated for  the contract  period  beginning June  1,
             1995; source of  funding to be  the Property  Endowment
             Fund; and

             FURTHER THAT the  City Manager be  authorized to  award
             the  sub-consultant  contracts  and  report  back  on a
             periodic basis to Council in that regard. 

        C.   THAT the Associate Director of Planning - Central Area,
             report back by July 1995 on the City resources, process
             and timing  required to prepare a  policy framework and
             plan for the Southeast Shore of False Creek. 

   GENERAL MANAGER'S COMMENTS

        The   General  Manager  of   Corporate  Services  RECOMMENDS
        approval of A, B and C.  While Council's policy is generally
        to tender for consulting contracts, there have been  several
        occasions  in the  past where  a development  consultant has
        been  hired directly,  based  on knowledge,  experience  and
   track record.  This   report   proposes   the   hiring   of   Mr.
                  Stanley Kwok without a tender process, again based
                  on  the consultant's excellent credentials and his
                  present availability.  Given  that Mr. Kwok  would
                  in all  likelihood be our choice  under a proposal
                  call as well, I  believe that it is  legitimate to
                  appoint Mr. Kwok  now and thereby  save staff  and
                  development community time and money  in preparing
                  and responding to  a proposal call.  We would then
                  be in  a position to  immediately move ahead  on a
                  development plan  for the southeast shore of False


                  Creek as outlined in this report.

   COUNCIL POLICY

   On July 26, 1990, Council identified the Southeast Shore of False
   Creek (SESFC) as a "let go" industrial area.

   On  October 16, 1990, Council adopted the Clouds of Change report
   which called for planning initiatives that:

       bring housing and employment closer together;
       increase housing adjacent to Vancouver's Central Area; and
       with  respect  to  the  SESFC,  the  principles  of   energy
        efficient community design be  incorporated in the  planning
        for the area.

   On  December 3, 1991, as  part of the  Central Area Plan, Council
   resolved  that housing with an  emphasis on families  be the main
   land use when planning for the SESFC.

   On December 6, 1994, City Council approved the recommendation:

      " THAT the Special Office for the Environment liaise with
        the Director of  Planning and the  Director of  Housing
        and Properties  to explore the potential  for utilizing
        City lands  in South-East  False Creek  as a  model for
        sustainable development. "


   PURPOSE 

   The  purpose of  this report  is to  request Council  approval to
   award a 2.5  year development contract for the  City lands on the
   Southeast  Shore  of   False  Creek  (SESFC)   to  Stanley   Kwok
   Consultants  Inc.  and  to establish  the  sub-consultant budget.
   Planning staff will report back by July 1995 on the required City
   resources, process  and timing to prepare a  policy framework and
   plan for this land.

   BACKGROUND

   The  Southeast Shore of False Creek is generally considered to be
   the  area between Cambie and Quebec Streets fronting on the False
   Creek  basin.    As illustrated  on  Appendix  A,  the City  owns
   approximately 42 acres of land  which are now leased on  a short-
   term basis, due  to the anticipated  redevelopment of this  area.
   Appendix A also indicates  the private land holdings which  total
   another  6  acres.Council policies,  including  the  Central Area
   Plan,  the  industrial   lands  policy  and   Clouds  of   Change
   initiative, have identified this area largely for housing with an
   emphasis on  housing  for  families  with  children.    With  the
   exception  of the City's Works Yards and the Paperboard site, the
   light and  heavy industrial activities  on the City's  lands have
   been replaced with interim uses, such as storage.

   Over  the past  two years, Real  Estate staff have  carried out a
   historical use study  and environmental assessment  of the  City-
   owned land  on the SESFC.   In addition, a site  was purchased in
   East False Creek  Flats for  relocating a portion  of the  Cambie
   Works Yard and a  Fraser River waterfront site has  been reserved
   at the foot of Main Street to relocate the existing aggregate and
   asphalt plant.


   REDEVELOPMENT PROCESS

   The False Creek Policy Broadsheets,  prepared for the North Shore
   of  False Creek  and approved  by Council  in 1988,  provide some
   direction for the redevelopment of these lands, largely  on water
   and shoreline issues.  There is no comprehensive policy framework
   for  the development of a new residential community on this site.
   Policies  will need  to be  developed in  a number  of areas,  to
   address previous  Council direction to house  a higher proportion
   of  families  with children  and  to create  an  energy efficient
   community, as  well as  key  aspects of  neighbourliness,  views,
   built form and amenity  targets.  There will be  substantial pre-
   development costs (including  consultant fees and  infrastructure
   expenditures), competing interests for use of the lands, and many
   other issues which might include, for instance:

            environmental conditions;
            future  of  industrial  tenants and  the  Cambie  Works
             Yards;
            potential retention of existing buildings;
            land ownership and assembly options;
            extent of the planning boundaries;
            type and form of residential use;
            parks and open space;
            community facilities and services;
            rail line opportunities;
            shoreline and seawall treatment;
            waterbody access and uses;
            energy efficient design; and 
            financial return.

   It will be  at least 3-4 years before the City  land on the SESFC
   would  be  redeveloped,  given  the  planning  process  and  site
   preparation  required.     The  planning  process  will   involve
   extensive  public consultation  and Council  direction throughout
   the following steps:

        Step 1:   Creation  of  a  policy  framework  for  the area.
        Step 2:   P r e p a r a t i o n         o f        u r b a n
                  design   concepts   which   propose      potential
                  arrangements  of  private  and public  uses,  open
                  space, and circulation patterns.

        Step 3:   Preparation of an  Official Development Plan which
                  would  confirm the location  for utilities, public
                  facilities,   open   space,   neighbourhoods   and
                  transportation systems  and development guidelines
                  (e.g., False Creek North).

   Site   preparation  will   require  subdivision,   servicing  and
   marketing programs to be prepared and approved by Council.

   Real Estate staff  propose that  the planning work  for the  City
   lands on the SESFC begin now, as:

       the   preliminary   environmental  investigation   has  been
        completed, and  there  is sufficient  understanding  of  the
        conditions to consider land use opportunities;

       the existing industrial  tenancies are now  of a  short-term
        nature;

       Engineering staff  are now working on  a relocation proposal


        for the Cambie Work Yards;

       given the extensive lead time required to create developable
        and marketable  parcels, the planning work  should commence;
        and

       community groups and members of the public are  increasingly
        interested in the City's plans for these lands.

   The  roles of the City, as  landowner and as regulator of zoning,
   are distinctly different.   Real Estate  staff, representing  the
   landowner (P.E.F.), must  ensure the project  meets the  Property
   Endowment  Fund  (P.E.F.) economic  mandate  whilst  the Planning
   Department, in coordination  with other departments, representing
   the    City's    other    public    interests    and   regulatory
   responsibilities, must ensure the project meets neighbourhood and
   City wide objectives.  Planning staff will report back by July on
   the  required  City   resources  and  timing   to  process   this
   development  proposal  and identify  other  potential issues  for
   Council.   In  the  interim, Real  Estate  staff propose  that  a
   development consultant be  retained to begin  the technical  site
   work (i.e.,  survey, geotechnical)  and  put together  a  project
   team.

   DEVELOPMENT CONSULTANT AND BUDGETS

   Consultant Selection

   Past models  for major project  rezoning and development  of City
   lands,  such as  the southwest  shore of  False Creek  and Fraser
   Lands, have involved retaining an external development consultant
   who took direction from an appointed Committee and was supervised
   by  the City Manager's office.  A technical advisory committee of
   staff  was also  formed to  act in  an  advisory capacity  to the
   development  consultants.     The  prime   consultant/development
   manager  for the southwest  shore of  False Creek,  Riverside and
   Champlain Heights were all directly retained.

   Real  Estate staff  propose  that Stanley  Kwok  of Stanley  Kwok
   Consultants Inc.  be directly retained as  the City's development
   consultant for the SESFC, for several reasons:

       the  notion of directly  retaining a  development consultant
        for the SESFC was discussed with the PEF Board, at its March
        14, 1995 meeting,  as this  process has been  used on  other
        City-owned neighbourhoods.  The  Board endorsed Stanley Kwok
        as the development consultant and directed Real Estate staff
        to report to Council.

       the best choice for this project is seen to be Stanley Kwok,
        given his experience as the development manager for  Concord
        Pacific in  planning  False  Creek North  and  his  role  as
        development manager for B.C. Place in planning North Park.

       the alternative would  be to select  a consultant through  a
        public proposal call  process which would  take 3-4  months.
        There  is a risk that Stanley Kwok  will not be available at
        the end of that  time, due to other  business opportunities.
        Given  that  staff  believe  Stanley  Kwok  to  be the  best
        candidate,  it is not  considered wise to  delay the process
        and risk losing this consultant.

   Real  Estate  staff  have  prepared  a  preliminary list  of  the


   development tasks  which  would  form  part  of  the  development
   contract;  refer to  Appendix B.   This  schedule is  intended to
   assist  in defining the terms  of a development  contract and the
   tasks and time frame required.

   Proposed Budgets

   Based  on experience  with False  Creek North,  Stanley Kwok  has
   estimated  a maximum annual  fixed price budget  of $240,000 plus
   GST  which  includes  all  required  administrative  and  support
   services and overhead.   If retained, a project manager  would be
   hired  by   him,  in   consultation  with   City  staff   on  the
   sharing/division of duties.   Based on the experience  and salary
   of the  project manager selected,  the actual fixed  price budget
   would then be established.

   The   proposed   annual   budget   represents   a   breakdown  of
   approximately 65% to the lead  consultant, 15% to project  office
   costs/overhead, and  up to  20%  to support  staff including  the
   project manager.
   The overall project  team may comprise  sub-consultants from  the
   following disciplines: 

       survey; 
       urban design; 
       architectural; 
       geotechnical engineering; 
       civil engineering; 
       traffic and circulation; 
       landscape architectural; 
       environmental; 
       marine ecological; and 
       marina, shoreline and seawall development.  

   The sub-consultants would  be retained on an  "as-need basis", as
   the  policy  framework  and  concepts are  developed.    The sub-
   consultant budget  is extremely  difficult  to estimate  at  this
   time, as the definitive list of disciplines is not yet  known and
   a significant  cost will be  the amount of  time spent at  public
   information meetings.  Stanley Kwok has proposed a sub-consultant
   budget in the order of $1,250,000-$1,500,000, based on experience
   with other major projects.  Real Estate staff have also discussed
   these  soft  costs with  developers  of the  other  major project
   rezonings, and the costs appear to be reasonable.

   It is proposed that  the City Manager be delegated  the authority
   to  award  the  sub-consultant  contracts,  after  proposals  are
   evaluated  by the  development consultant  and Real  Estate staff
   from a selected short-listed group of qualified proponents.   The
   City  Manager would report back to Council on a periodic basis on
   the contracts awarded.

   CONCLUSION

   This report asks Council to award a 2.5 year development contract
   to Stanley Kwok  of Stanley  Kwok Consultants Inc.  for the  City
   lands  on  the  SESFC, effective  June  1,  1995.     Approval of
   consultant and  sub-consultant budgets is also  requested.  While
   it is a departure from standard City policy  to directly retain a
   consultant  without   a  public  selection  process,   the  prime
   consultant or  development manager  for  the southwest  shore  of
   False Creek, Riverside  and Champlain Heights  were all  directly
   retained.   Staff  are confident  that Stanley  Kwok is  the best


   choice  for the  SESFC  project  and  is presently  available  to
   undertake  the project.   A  plan for  the area  would  likely be
   completed within 2.5 years.

   Planning  staff would report back by July 1995 on additional City
   resources,  process and timing to complete a policy framework and
   plan for this area.


                       *     *     *     *     *          APPENDIX B



                     SOUTHEAST SHORE OF FALSE CREEK
                         DEVELOPMENT TIMETABLE


   The  following is  a preliminary  list of  the tasks  required to
   prepare  a development plan for  the City lands  on the Southeast
   Shore  of  False  Creek,  prior  to  subdivision,  servicing  and
   marketing.


   (a)   retain   development    consultant,   approve   preliminary
         timetable and budget

   (b)   retain initial  sub-consultants  and begin  technical  site
         work

   (c)   identify major issues and develop work program methodology

   (d)   report to Council on City resources, process and timing for
         the area plan

   (e)   prepare preliminary policy for the site

   (f)   draft work  program prepared and discussions  commence with
         staff and the public

   (g)   policy framework approved by Council

   (h)   establish rezoning timetable

   (i)   initial response to staff and public issues on the workbook

   (j)   workshop  process  to   evaluate  workbook;   comprehensive
         concept plan and ODP/ADP prepared

   (k)   rezoning application prepared and submitted

   (l)   application reviewed by the City

   (m)   preparation   of  referral   report   to  Council;   public
         information meetings; Public Hearing

   (n)   ODP/ADP enactment



                           *   *   *   *   *