City of Vancouver




                               Inter-Office Correspondence

      CITY MANAGER'S OFFICE

      DATE:        November 28, 1995

      MEMO TO:     Mayor and Members of Council

      COPY TO:     Ted Droettboom, General Manager, Community Services
                   Maria Kinsella, City Clerk
                   Vic Kondrosky, General Manager, Parks & Recreation
                   Bruce  Maitland,  Manager,  Real  Estate  Services,  Corporate
      Services
                   Ken Stoke, General Manager, Corporate Services

      FROM:        Ken Dobell, City Manager

      SUBJECT:     Nelson Park Site Land Use Study Report


      After reviewing the Nelson  Park report, I am concerned that it is  prepared
      to assume  a very high  level of "write down" for the  site.  In effect, the
      proposals require a "write  down" of at  least $9.5 million, and  perhaps as
      much  as $11.25  million.   In  return for  these  "write downs",  the  City
      preserves significant  heritage development  and provides  a number of  non-
      market  rental  units.     These  objectives  were   strongly  supported  by
      participants in  the public  consultation process.  However,  the write down
      represents a real cost to the City.

      These lands  are presently zoned.   If the  lots were  in private hands,  an
      owner  could proceed with development, or expect to receive compensation for
      designation and  the requirement  to provide  non-market housing.   In  this
      event,  the   City  would  be  required   either  to  approve  an  alternate
      development scheme  with  a combination  of reduced  requirements and  bonus
      density to  provide  a market  return to  the developer,  or provide  direct
      financial compensation.  

      The City  Manager suggests  that Council consider  the options  submitted in
      the  report as if the land write  down had to be budgeted  as an expenditure
      item.  If Council does not consider the  merits of either option justify the
      corresponding reduction  in land value,  Council could  reject both  options
      and refer the matter back to staff  to develop an option within  a specified
      maximum land write down.



                                                         K. F. Dobell
                                                         City Manager
       KFD:cd
            3/nelson.kfd