ADMINISTRATIVE REPORT

                                           Date: May 19, 1995
                                           Dept. File No. F594

   TO:        Vancouver City Council

   FROM:      Manager of the Housing Centre

   SUBJECT:   Lease Terms for 1818 East Pender Street

   RECOMMENDATION

        THAT Council  approve the lease  of Lot  E of Block  E, D.L.
        183, Plan 180  to United  Native Nations, Local  111 on  the
        terms  described  in  this report  and  other  terms  to the
        satisfaction  of  the Director  of  Legal  Services and  the
        Manager,  Housing Centre;  AND  THAT the  Director of  Legal
        Services  be instructed  to  prepare and  execute the  lease
        documents on behalf of  the City; AND FURTHER THAT  no legal
        right  or obligation is hereby  created and none shall arise
        hereafter except  upon execution  of the lease  documents by
        all parties.

   GENERAL MANAGER'S COMMENTS

        The  General  Manager   of  Community  Services   RECOMMENDS
        approval of the foregoing.

   COUNCIL POLICY

   It  is City practice  to purchase  privately-owned land  for non-
   market housing  development and  lease it to  non-profit sponsors
   for 60 years at a prepaid rent equal to 75% of market value (plus
   taxes).  

   PURPOSE

   This report seeks  Council's approval of proposed lease terms for
   the non-market housing project at 1818 East Pender Street.

   BACKGROUND

   On  February 15, 1994, Council approved In Camera purchase of the
   site at 1818 East Pender Street (see Appendix A) to  be leased to
   United  Native Nations,  Local 111.   At  the same  time, Council
   approved costs of demolition  up to $20,000 to be  recovered from
   the sponsor at the time of the first mortgage advance.


   For BCHMC-approved social housing  projects the City is committed
   to a  standard form of lease.   The only variations  are the rent
   and any special terms which the City may require.

   PROGRESS TO DATE

   This  project is a 10  self-contained unit apartment building for
   street youth aged 18  to 25.  B.C. Housing  Management Commission
   has  given United  Native  Nations conditional  approval for  the
   project.

   A  development  permit  application  for  the  project  has  been
   approved.  The schedule is for construction start in early summer
   and occupancy by the spring of 1996.

   PROJECT COSTS

   The  Manager of  the Housing  Centre recommends  a basic  rent of
   $294,000  for a  60-year lease.   This  is 75%  of $392,000,  the
   market value of  land.  The  budget for  the project can  support
   this prepayment.  Demolition costs of $14,000 will be paid at the
   time of the first mortgage payment.
      
   PROPOSED LEASE TERMS

   The proposed lease terms include:

   1.   Basic Rent: $294,000.

   2.   Term: 60 years from the commencement of the lease.

   3.   Date of Commencement: The earlier of the date of signing the
        lease by all parties,  or 90 days  from the date of  Council
   approval of lease terms.

   4.   Demolition  Costs: $14,000  to be  paid at  the time  of the
        first mortgage payment.

   5.   Such  other terms and conditions as the City and BCHMC agree
        upon.

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