ADMINISTRATIVE REPORT

Date: May 20, 1998
Author/Local: Robert Florko/7805
CC File No. 5104

TO:	Vancouver City Council
FROM:	Manager of Real Estate Services in consultation with the Director of Community Services (Social Planning)
SUBJECT:	3981 Main Street - Lease to the Little Mountain Neighbourhood House Society and Sub-lease of a portion to the Vancouver Public Library Board

RECOMMENDATION

A. THAT Council approve a lease of 3981 Main Street to The Little Mountain Neighbourhood House Society on the following terms and conditions:

(a) Rent: $1.00 per year of the term, prepaid;

(b) Term: 6 years commencing October 1st, 1997;

(c) Use: Neighbourhood House; and

(d) Such other terms and conditions as are acceptable to the Manager of Real Estate Services, the Director of Community Services and the Director of Legal Services, it being noted that no legal rights or obligations shall arise until execution of the lease.

B. THAT Council consent to the sublease by The Little Mountain Neighbourhood House Society of a 1430 square foot portion on the main floor of 3981 Main Street to the Vancouver Public Library Board on the following terms and conditions:

(a) Rent: $20,016 per year of the term;

(b) Term: 6 years commencing October 1st, 1997;

(c) Use: Library; and

(d) Option: 4 years provided that The Little Mountain Neighbourhood House Society extends its lease of 3981 Main Street for a further 4 year period.

(e) Such other terms and conditions as are acceptable to the Finance Director of the Vancouver Public Library Board, the Manager of Real Estate Services, the Director of Community Services and the Director of Legal Services, it being noted that no legal rights or obligations shall arise until execution of the sublease.

CITY MANAGER'S COMMENTS

The City Manager RECOMMENDS approval of the foregoing.

COUNCIL POLICY

Pursuant to section 206(1)(a) of the Vancouver Charter, not less than two-thirds of all members of Council must approve a resolution for the making of a money grant to a charitable institution (Lease of City property at less than market rent is considered a grant).

Vancouver City Council at its meeting on June 8th, 1993 approved that the Capital Fund properties identified in Appendix I, attached hereto, which are occupied by non-profit organizations, remain as assets of that fund and that rent remain at the levels indicated.

PURPOSE

The purpose of this report is to seek Council's approval to enter into a new lease of the premises at 3981 Main Street (see Appendix II), to The Little Mountain Neighbourhood House Society and to consent to the sub-lease to the Vancouver Public Library Board.

BACKGROUND

The premises at 3981 Main Street were built in 1981 for The Little Mountain Neighbourhood House Society. The 5,952 square foot facility was designed to accommodate the neighbourhood house and a 1,430 square foot storefront library. The revenue that the Society receives from the library is used to offset the operating expenses of the building and to rent additional space for programs that cannot be accommodated in the Neighbourhood House.

CURRENT SITUATION

The lease with The Little Mountain Neighbourhood House Society and the sub-lease with the Vancouver Public Library Board expired on September 30, 1997. The Society wishes to enter into a new lease for a further 6 years at a nominal rent. It is estimated that the market rental rate for the space occupied by the Neighbourhood House would be $30,000 per annum inclusive of taxes. The Vancouver Public Library Board has also requested a new sub-lease for 6 years with an option to renew for a further 4 years. Given that the Library would like to relocate as the present premises are too small, a cancellation clause will be included in their lease during the option period.

Social Planning has identified this facility as being one of the highest priorities, among social service facilities, for replacement. The existing building is far too small to accommodate badly needed neighbourhood services and programs. Also, it is in very poor physical condition, with major repairs a real possibility in the not-to-distant future. Although the need for replacement is immediate, it will take several years to complete this project; therefore staff are proposing that the new lease be for 6 years.

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CITY OF VANCOUVER RENTAL SUBSIDY LIST CAPITAL FUND
Name	Address	Recommendation	Current Rent	Revised Rent
Beach & Bay Day Care	1005 Beach Avenue	Keep in Capital Fund	$1	$1
Boys & Girls Clubs of Greater Vancouver	2875 St. George	Keep in Capital Fund	$1	$1
City Hall Childcare Society	2685 Cambie Street	Keep in Capital Fund	$1	$1
Firehall Arts Centre Society	270 East Cordova Street	Keep in Capital Fund	$15,600	$1*
Little Mountain Neighbourhood House Society	3981 Main Street	Keep in Capital Fund	$1	$1
Main Source Management	3102 Main Street	Keep in Capital Fund	$10	$10
Marpole/Oakridge Area Council Society	1305 West 70th	Keep in Capital Fund	$10	$10
Mount Pleasant Neighbourhood House	535 East Broadway	Keep in Capital Fund	$1	$1
Vancouver Chamber Choir	1254 East 7th Avenue	Keep in Capital Fund	$6,804	$1*
Vancouver Multicultural Society of BC	1254 East 7th Avenue	Keep in Capital Fund	$13,800	$13,800
Vancouver Society for Early Music	1254 East 7th Avenue	Keep in Capital Fund	$3,393	$1*
Vancouver Symphony Society	601 Smithe	Keep in Capital Fund	$100,000	$100,000
Saint James Society	377-391 Powell Street	Keep in Capital Fund	$1	$1

Total Capital Fund

$140,623

$113,82 9

* = Proposed rent adjustment
Attachments to this Report that do not have electronic copy are available on file in the City Clerk's Office.

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(c) 1998 City of Vancouver