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CITY OF VANCOUVER

REGULAR COUNCIL MEETING MINUTES
STANDING COMMITTEE OF COUNCIL ON
TRANSPORTATION AND TRAFFIC

FEBRUARY 23, 1999

A Regular Meeting of the Council of the City of Vancouver was held on Tuesday, February 23, 1999, at approximately 12:25 p.m., in Committee Room No. 1, Third Floor, City Hall, following the Standing Committee on Transportation and Traffic meeting, to consider the recommendations of the Committee.

PRESENT:	Mayor Philip Owen Councillor Don Bellamy Councillor Nancy A. Chiavario Councillor Alan Herbert Councillor Lynne Kennedy Councillor Daniel Lee Councillor Don Lee Councillor Gordon Price Councillor George Puil Councillor Sam Sullivan
ABSENT:	Councillor Jennifer Clarke (Leave of Absence)
CITY MANAGER'S OFFICE:	Judy Rogers, City Manager
CLERK TO THE COUNCIL:	Denise Salmon

COMMITTEE OF THE WHOLE
MOVED by Cllr. Bellamy,
SECONDED by Cllr. Herbert,

THAT this Council resolve itself into Committee of the Whole, Mayor Owen in the chair.

- CARRIED UNANIMOUSLY

COMMITTEE REPORTS

Report of Standing Committee on
Transportation and Traffic
February 23, 1999

Council considered the recommendation of the Committee, as contained in the following clause of the attached report:

Cl.1: Provincial Government Discussion Paper Concerning the Property Classification Regulation under the Assessment Act

MOVED by Cllr. Bellamy,

THAT the recommendation of the Committee, as contained in Clause 1 of this report, be approved.

- CARRIED

(Councillors Price, Puil and Sullivan opposed)

RISE FROM COMMITTEE OF THE WHOLE

MOVED by Cllr. Bellamy,

THAT the Committee of the Whole rise and report.

- CARRIED UNANIMOUSLY

ADOPT REPORT OF COMMITTEE OF THE WHOLE

MOVED by Cllr. Bellamy,
SECONDED by Cllr. Don Lee,

THAT the report of the Committee of the Whole be adopted.

- CARRIED UNANIMOUSLY

ENQUIRIES AND OTHER MATTERS

1. Leave of Absence - Councillor Clarke File: 1254

MOVED by Cllr. Kennedy,
SECONDED by Cllr. Price,

THAT Councillor Clarke be given leave of absence for the Standing Committee on Transportation and Traffic meeting this day.

- CARRIED UNANIMOUSLY

The Council adjourned at 12:30 p.m.

* * * * *

REPORT TO COUNCIL

STANDING COMMITTEE OF COUNCIL
ON TRANSPORTATION AND TRAFFIC

FEBRUARY 23, 1999

A Regular Meeting of the Standing Committee of Council on Transportation and Traffic was held on Tuesday, February 23, 1999, at approximately 9:30 a.m. in Committee Room No. 1, Third Floor, City Hall.

PRESENT:	Councillor Gordon Price, Chair Mayor Philip Owen Councillor Don Bellamy Councillor Nancy A. Chiavario Councillor Alan Herbert Councillor Lynne Kennedy Councillor Daniel Lee Councillor Don Lee Councillor George Puil Councillor Sam Sullivan
ABSENT:	Councillor Jennifer Clarke (Leave of Absence)
CITY MANAGER'S OFFICE:	Judy Rogers, City Manager
CLERK TO THE COMMITTEE:	Denise Salmon

ADOPTION OF MINUTES

The Minutes of the Standing Committee on Transportation and Traffic meeting of February 2, 1999, were adopted.

RECOMMENDATION

1. Provincial Government Discussion Paper Concerning the
Property Classification Regulation under the Assessment Act File: 1551

The Committee had before it an Administrative Report dated February 18, 1999 (on file), in which the City Manager, in consultation with Director of Legal Services, Manager of Real Estate, and the Director of Finance provided Council with an analysis of the issues raised in the Ministry of Municipal Affairs' discussion paper entitled "Classification of Vacant Land Zoned for Mixed-Use Developments".

Ken Bayne, Comptroller of Budgets & Research provided Council with an overview of the report, and highlighted the following points presented by staff:

· No change should be made to the Classification Regulation that would result in the reclassification of the residential portion of land held for future mixed-use development from Class 6 to Class 1 at any point in the development process.

· The City would support changes to the existing classification scheme that would ensure that all vacant land being held for future residential development, whatever its current zoning, be treated the same. Under the existing Classification Regulation, all such land should be classified in Class 6.

· Should the Provincial Government wish to pursue a change in the Classification Regulation by the creation of a new class for all vacant land, whatever its zoning, held for future residential or mixed-use development, it should initiate discussion with municipalities about this issue.

Patsy Scheer, Solicitor, provided Council with information regarding the status of a number of Court cases related to the interpretation of the language used in the Classification Regulation to define Class 1-Residential. Staff noted reclassification of lands from Class 6-Business and Other to Class 1 would negatively impact the City's entire tax base. However, opposition to reclassification from Class 6 to Class 1 would be seen by the development industry as a disincentive for mixed-use projects.

Discussion followed on the report's recommendations and their impact on City homeowners with residential-zoned lots they may wish to develop. Staff also noted if the proposal being advanced by developers is accepted there will be no means to discriminate between their tax rate and that of regular homeowners. At present, once the developer has footings in the ground, the land to be developed is then taxed proportionately, according to its zoning.

The following delegations appeared before the Committee:

Eric Martin, Urban Development Institute and

President, BOSA Development Corporation

Jon Markoulis, Senior Vice President, Concord

Pacific Group Inc. (brief filed)

Peter Austin, Canadian Property Tax Association

Points raised included the following:

· the industry seeks clarity in the Act by suggesting a small change to Section 1(c) of the Classification Regulation as follows: "all or a portion of land having no present use to the extent restricted to residential use by municipal or other government authority" be classified residential
· once land is committed to a use by Council, that land should then pay taxes based on its actual or zoned use
· Council should reject all recommendations contained in the staff report
· approval of the staff report would negatively impact the future of mixed-used developments in the City
· defer decision on the report and request the Provincial Government initiate a forum including UBCM, industry and other stakeholders to further explore the restructuring of the current system of classification for mixed-use properties
· approval of report's recommendations would impact all types of housing, including social housing and even nursing homes, which would receive a higher class rating, resulting in higher holding costs for developers
· the need to create an equitable situation for developers and stop the incredible expenditures for related cases presently before the Courts

Some Council members agreed on the merit of deferring a decision, to allow for further discussion and clarification. The City Manager advised a motion to defer would limit the City's opportunity to provide input into the decision the Ministry of Municipal Affairs will present to Cabinet.

The following motion by Mayor Owen was put and lost.

THAT consideration of the Administrative Report dated February 18, 1999, entitled "Provincial Government Discussion Paper Concerning the Property Classification Regulation under the Assessment Act" be deferred.

- LOST (tie vote)

(Councillors Bellamy, Chiavario, Don Lee, Price, and Puil opposed)

The following motion by Councillor Puil was put.

A(i) THAT Council advise the Provincial Government that the City opposes any change to the Assessment Act regulation that would lead to the reclassification of the residential portion of land held for future mixed-use development from Class 6 to Class 1 at any stage in the development process.

- amended

The following amendment by Councillor Chiavario was put and lost.

THAT Recommendation A(i) be amended to add the following words after the words "Provincial Government that"

, until such time as full consultation takes place,

- LOST (tie vote)

(Councillors Kennedy, Dan Lee, Price, Sullivan, and Mayor Owen opposed)

The amendment having lost, Councillor Puil's motion was put and LOST with Councillors Herbert, Kennedy, Dan Lee, Price, Sullivan and Mayor Owen opposed.

The following motion by Councillor Puil was put and lost.

A(iii) THAT Council advise the Provincial Government that should the Provincial Government wish to pursue a change in the regulation by the creation of a new class for all vacant land, whatever its zoning, held for future residential or mixed-use development, it should initiate discussion with municipalities about this issue.

- LOST (tie vote)

(Councillors Chiavario, Herbert, Kennedy, Dan Lee, and Mayor Owen opposed)

The following motion by Councillor Chiavario was put and carried. The Committee, therefore,

RECOMMENDED

THAT the City request a further review of the Assessment Act Classification Regulation regarding, but not limited to, mixed-use development and request the Provincial Government to initiate further discussion and consultation between appropriate ministries, municipalities, UBCM, industry and stakeholders before enacting any changes to the Assessment Act Classification Regulation.

- CARRIED

(Councillors Price, Puil and Sullivan opposed)

The Committee adjourned at 12:25 p.m.

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(c) 1998 City of Vancouver