ADMINISTRATIVE REPORT

                                                        Date: July 12, 1995
                                                     Dept. File No. 6019A33

   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services

   SUBJECT:  Proposal  by Marathon  Realty Company Limited  ("Marathon") to
             Subdivide Lot 7, District Lot 541 and of the Public Harbour of
             Burrard Inlet, Plan 13607 ("Lot 7")


   RECOMMENDATION

        THAT Council authorize the Director of Legal Services to enter into
        appropriate  agreements  on  behalf  of the  City  as  required  to
        implement the subdivision of Lot 7.

   GENERAL MANAGER'S COMMENTS

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

   COUNCIL POLICY

   There is no applicable Council policy.

   PURPOSE

   The purpose  of this  report is  to seek  Council's approval  to several
   legal agreements, to be prepared to the satisfaction  of the Director of
   Legal Services,  the General  Manager  of Engineering  Services and  the
   Approving Officer, required to implement the proposed subdivision of Lot
   7 by Marathon.

   BACKGROUND

   In  approving Marathon's application for  subdivision of Lot  7 into six
   parcels,  on February  25,  1994 the  Approving  Officer set  forth  the
   conditions  upon which  final approval  would be  given.   The principal
   conditions of approval are as follows:

        1.   Conveyance to the City of Lot 1 (site of Howe Street Viaduct),
             subject  to  the  option to  lease  back  to  Marathon of  the
             available space under the Viaduct for a car park, for 99 years
             for $1.00;

        2.   Conveyance  to the  City  of Lot  2  (site of  Cordova  Street
   Viaduct), subject to the lease back to Marathon of the           availab
                                                                    l     e
                                                                    space
                                                                    under
                                                                    t  h  e
                                                                    Viaduct
                                                                    for   a
                                                                    c  a  r
                                                                    park,
                                                                    for  99
                                                                    years
                                                                    for
                                                                     $1.00;

        3.   The City to  have an  option to purchase  for $1.00, the  land
             required  for  the  construction of  the  Northerly  Extension
             Viaduct,  subject  to  the  lease  back  to  Marathon  of  the

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             available  space under the proposed Viaduct for a car park and
             loading area, for 99 years for $1.00;

        4.   The City  to have an  option to purchase  for $1.00,  the land
             required for the construction  of the Station Viaduct, subject
             to the  lease back to Marathon of the space under and adjacent
             to  the proposed  Viaduct for  a car  park, if  available, and
             other agreed purposes, for 99 years for $1.00;

        5.   The  lease to  Marathon of  a portion  of the  undersurface of
             Cordova Street between Granville and Seymour (formerly held by
             Canadian  Pacific) for  a car  park, the  lease term to  be 99
             years for $1.00; and

        6.   Marathon to create road parcels along the extensions of Cambie
             and Abbott Streets and to grant the City an option to purchase
             the  area known  as the  Station Viaduct  in order  to provide
             access to the land  lying beyond the north  boundary of Lot  7
             (modified as hereinafter explained).

   The areas identified in the foregoing items 1 - 6 are illustrated on the
   attached drawing.  

   With respect to item 6, above, Council was advised on March 14, 1995, in
   a report from the General Manager of Engineering Services, that Marathon
   has agreed  in principle  to convey  to the  City by  way of options  to
   purchase, road  parcels  for  the  Station Viaduct,  the  Cambie  Street
   Extension  and the Abbott Street  Extension (see plan).   These proposed
   road parcels would cross  over the Canadian Pacific Railway Right of Way
   connecting the City  street system with the lands of  the Vancouver Port
   Corporation (in anticipation of future development of the Port lands) to
   the north of the Right of Way.

   In later  negotiations between  Marathon and Canadian  Pacific, Canadian
   Pacific advised the City that because  of the numerous railway tracks in
   the Canadian Pacific Railway Right of Way there was insufficient room to
   relocate the railway  tracks in order to accommodate  support structures
   for viaducts necessary for the extension of Cambie and Abbott streets as
   intended.

   As an alternative,  Canadian Pacific agreed  to continue to  accommodate
   the Station Viaduct (see item 4  above) because of the importance of its
   location for providing access to the Port lands, but grant the City only
   rights  of  way  over  the  railway  tracks  for  pedestrian  overpasses
   connecting  Cambie,  Abbott  and  Carrall  (a  new  crossing offered  by
   Canadian  Pacific during negotiations) to the Port lands with the option
   to purchase  for $1.00  the lands covered  by the rights  of way  in the
   future if Canadian Pacific declares the railway lands as  "surplus".  It
   is  a condition of the  grant of the  rights of way  that the pedestrian
   overpasses  must span the railway tracks unless Canadian Pacific, in its
   discretion,  can make  available  land  within  the  rights  of  way  to
   accommodate support structures for the overpasses.

   Although items 1 - 6 summarize the principal conditions to  be addressed
   through  agreements, a  subdivision of  this size  requires a  number of
   supporting documents to  safeguard the  interests of the  parties.   The
   City's rights are  over the  Canadian Pacific right  of way,  therefore,
   Canadian Pacific is a party  to the agreements.  The agreements  and the
   supporting  documents  have been  prepared  to the  satisfaction  of the
   Director of  Legal Services, the General Manager of Engineering Services
   and  the  Approving  Officer,  as   required,  and  will  be  registered
   concurrently  with  the subdivision  plan, once  it  is approved  by the
   Approving Officer.

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