A1

                             ADMINISTRATIVE REPORT

                                           Date: October 4, 1995
                                           Dept. File No. D317

   TO:       Vancouver City Council

   FROM:     Manager of Real Estate Services

   SUBJECT:  Demolition of Vacant Building on
             City-owned Site at 2205 Main Street


   RECOMMENDATION

        THAT  Council approve the demolition of the vacant building at 2205
        Main Street, legally described at Lots  6 and 7, Block 37, District
        Lot 200A.  The source of funds to be the Property Endowment Fund at
        an estimated cost of $15,000.

   GENERAL MANAGER'S COMMENTS

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

   COUNCIL POLICY

   There is no Council policy directly attributed to this matter.


   BACKGROUND

   On April 25, 1989,  Council approved a report recommending  the purchase
   of the property  located on the west side of Main Street from 6th Avenue
   to 7th Avenue described  as Lots 6 to  11, Block 37, Plan  197, District
   Lot 200A.

   The  purpose of the  acquisition was  for the  Kingsway-Quebec connector
   road project.   At the time  the improvements consisted of  a burned-out
   restaurant and  a  small automotive  repair  shop.   On July  25,  1989,
   Council approved  the demolition of  the burned-out restaurant  and that
   portion  of the  property has  been used  for parking  since then.   The
   automotive repair building  situated on Lots 6 and 7  has been rented to
   various tenants up to the end of September 1995.
   CURRENT SITUATION

   The building at 2205 Main  has been rented to Vancouver Taxi  Ltd. since
   June 1989.   Permits  and  Licences have  advised  that a  full  seismic
   upgrade is necessary for present or future use of this building in order
   to protect any occupants and the City's liability.  A service assessment
   performed by CSA Building Services Ltd. confirms this opinion.  The cost
   of  upgrading would  exceed  $178,000.   The Engineering  Department has
   advised that they would  be reluctant to support anything  longer than a
   three year lease term with one year certain and a six month cancellation
   thereafter.    The cost  of the  required  structural upgrade  cannot be
   amortized over the maximum three year lease term.

   The  cost  of  demolition is  estimated  at  $15,000  which includes  an
   estimated $8,000 for asbestos removal.   The building is now  vacant and
   poses a potential liability problem because of its poor state of repair.
   It is  therefore recommended that  the subject  building be  demolished.
   Potential  future  interim  uses  for  this  site  are  currently  being

   investigated having reasonable revenue potential.


                           *     *     *     *     *