ADMINISTRATIVE REPORT

Date: April 7, 1999
Author/Local: M. Pham/6422

RTS No. 718

CC File No. 5303

Council: June 1, 1999

TO:	Vancouver City Council
FROM:	City Manager in consultation with the General Manager of Parks and Recreation and the Director of Legal Services.
SUBJECT:	Bayshore Gardens - Extension of Due Date for Parks Payment-in-Lieu

RECOMMENDATION

THAT Council extend the Due Date for the final parks payment-in-lieu, as defined in the "Bayshore Parks and Payment In Lieu of Parks Agreement", from November 9, 1999 to November 9, 2005, with the existing occupancy covenants and payment schedule, generally as outlined in Appendix A, remaining unchanged.

COUNCIL POLICY

On August 13, 1991 Council approved a $5,000,000 amount for payment-in-lieu of park on the Bayshore site.

At a Public Hearing on November 21, 1991 Council approved the Bayshore CD-1 rezoning subject to the property owner executing an agreement to ensure that payment-in-lieu of park funds are provided within six years of the date of the rezoning by-law enactment.

On November 9, 1993 Council enacted By-law No.7232 (CD-1 321) which applies to the Bayshore site.

PURPOSE

The purpose of this report is to seek Council's approval to extend the Due Date for the final parks payment-in-lieu on the Bayshore site, as defined in the "Bayshore Parks and Payment in Lieu of Parks Agreement, from November 9, 1999 to November 9, 2005.

BACKGROUND

On November 5, 1993 the City and Caesar Park (formerly Westin Hotel Company Limited, the property owner) entered into the "Bayshore Parks and Payment in Lieu of Parks Agreement", which was subsequently modified through the "Bayshore Parks and Payment in Lieu of Parks Modification Agreement" dated February 9, 1996.

As part of the Agreement, the owner is required to provide a $5,000,000 payment-in-lieu to meet park shortfalls in the area. The Agreement provides a schedule of payment which takes into consideration both the on-site park development and the rate of unit development. It sets however a firm date by which the full payment-in-lieu amount is due, defined in the Agreement as the "Due Date". The Due Date was set as six (6) years after the rezoning by-law enactment, i.e., November 9, 1999.

The Agreement also stipulates that the owner "may apply to Vancouver City Council for a delay of the Due Date if there is a reasonable expectation that as of the Due Date the number of people resident at the Lands will be less than one thousand (1,000) residents per two and three-quarters (2.75) acres of parkland, it being understood that such application may be rejected."

DISCUSSION

As of the Due Date, 252 units will have been completed (approximate 400 resident population). Based on a criteria of 2.75 acres of parkland per 1000 residents, 1.10 acres of parkland need to be provided. As of the Due Date, the owner will have provided the equivalent of 2.31 acres of parkland in actual park space and payment-in-lieu. In accordance with the "Bayshore Parks and Payment in Lieu of Parks Agreement", the owner has therefore requested that the Due Date be extended from November 9, 1999 to November 9, 2005.

It is expected that only 252 units (out of a maximum of 980 units) will have been completed as of November 9, 1999, considerably behind the development schedule envisioned at the rezoning stage. The owner has already paid $1.25 million of the $5.0 million total payment-in-lieu amount. Since the site development is now scheduled for completion for the year 2005, payment of the remaining $3.75 million by the current Due Date would significantly affect the owner's cashflow.

Staff feel that the extension of the Due Date is appropriate since the current development of the site has not prompted the need for the full payment-in-lieu amount. Staff recommend however that the occupancy covenants from the "Bayshore Parks and Payment in Lieu of Parks Agreement" remain unchanged. This will ensure that the combination of park space and payment-in-lieu meets the 2.75 acres/1000 residents criteria at all stages of development, as shown in Appendix A.

CONCLUSION

Staff recommend that the Due Date for the final parks payment-in-lieu, as defined in the "Bayshore Parks and Payment in Lieu of Parks Agreement", be extended from November 9, 1999 to November 9, 2005. Staff also recommend that existing occupancy covenants and payment schedule, generally as described in Appendix A, remain unchanged to ensure that payment and park construction schedules reflect the unit development schedule.

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Appendix A - Summary of Development and Park Statistics
with Extension of Payment-in-Lieu Due Date

Building	Occupancy Date	Approx. Total #Residents	Amount Paid-in-Lieu1 (million $)	Available Park Space (acres)	Equivalent Park Space Provided2 (acres)	Park Space Required3 (acres)
A	Sept. 1997	220	1.25	0.55	0.85	0.61
B	Sept. 1997	220	1.25	0.55	0.85	0.61
E	Nov. 1999	400	1.25	2.014	2.31	1.10
F	Nov. 1999	400	1.25	2.01	2.31	1.10
D	2001	570	1.25	3.425	3.72	1.57
C	2002	750	2.50	3.42	4.01	2.06
G	2003	1,000	2.50	3.42	4.01	2.75
I	2004	1,150	5.00	3.42	4.60	3.16
K	2005	1,300	5.00	3.42	4.60	3.58
H-J (social housing)	dependant upon funding	1,670	5.00	3.42	4.60	4.60

¹ Amounts in 1993 dollars - actual payment amounts are adjusted to reflect inflation
² Assumes 0.236 acres = $1 million
³ Based on a required 2.75 acres/1000 residents
⁴ Includes 0.45 acres for shoreline walkway - Phase I
⁵ Includes 0.92 acres for shoreline walkway - Phases I and II

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(c) 1998 City of Vancouver