ADMINISTRATIVE REPORT

Date: May 6, 1999
Author/Local: M.G. Thomson /7329

RTS No. 00503 CC File: 5753

Council: June 1, 1999

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services, in consultation with the Manager of Real Estate Services and the Director of Legal Services
SUBJECT:	Powell Street Relocation Project, Proposed Closure of a Portion of Powell Street, West of Rogers Street

RECOMMENDATION

A. THAT Council close, stop-up and convey to the Canadian Pacific Railway Company ("C.P.") all that portion of Powell Street, west of Rogers Street, the same as shown shaded on the plan attached hereto as Appendix A, subject to the following conditions:

1. The transfer to occur for a nominal sum to the satisfaction of the Manager of Real Estate Services and the Director of Legal Services;

2. The portion of Powell Street to be conveyed, to be consolidated with the abutting C.P. lands, the same as generally shown within the heavy outline on the plan attached hereto as Appendix B, to the satisfaction of the General Manager of Engineering Services and the Director of Legal Services;

3. The "Identified Utilities " as defined in Paragraph 4 of the Offer to Purchase Agreement dated September 30, 1998 between the City, the Vancouver Port Corporation and the Canadian Pacific Railway Company (on file in the City Clerk's Office) be documented to the satisfaction of the Director of Legal Services ; and

4. The City grant an Encroachment Agreement at no annual fee to the C.P. for a minor switching apparatus constructed onto Powell Street, adjacent to the conveyed lands. The agreement to be to the satisfaction of the General Manager of Engineering Services.

B. THAT Council authorize the Manager of Real Estate Services and/or the Director of Legal Services to execute a conveyance of an approximate 81 square metre (870 square feet) portion of (P.I.D. 023-918-616) Lot S, except: Part Road on Plan LMP 35881; Block 2 of Block A, District Lot 182, Plan LMP 35311, to C.P., the same as shown hatched on the plan attached hereto as Appendix C, subject to the following conditions:

1. Consolidation of the subject portion of Lot S with the abutting C.P. owned Lot 1, except Part in Reference Plan 19952, Block 2, District Lot 182, Plan 14625, to the satisfaction of the General Manager of Engineering Services and the Director of Legal Services; and

2. The conveyance to be for a nominal sum to the satisfaction of the Manager of Real Estate Services and the Director of Legal Services.

C. THAT Council accept this report as a "report back on the final details of the Powell Street Relocation" exchange per Recommendation D of the June 14th, 1996 Administrative Report from the General Manager of Engineering Services.

COUNCIL POLICY

The authority for closing and disposing of streets and lanes is set out in the Vancouver Charter.

The Vancouver Charter allows Council to dispose of City-owned property deemed surplus to the City's needs.

Council has designated the Port Roadway, east of Main Street, as an industrial roadway, not a through commuter route. On May 28, 1996, Council approved the motion: "That Council urge the V.P.C. to expedite the use of the Port lands as a truck corridor."

On June 25, 1996, Council approved the recommendations of the General Manager of Engineering Services in a Policy Report, dated June 14, 1996. The approval authorized the relocation of Powell Street to accommodate the development of a two lane Port Roadway connection near the B.C. Sugar building.

On June 25, 1996, Council approved the recommendations of the General Manager of Engineering Services in an Administrative Report, dated June 14, 1996. These recommendations were:

A. That Council authorize the General Manager of Engineering Services, the Director of Legal Services and the Manager of Real Estate Services, to negotiate agreements with the Canadian Pacific Railway (C.P.R.) and the Vancouver Port Corporation (V.P.C.), as necessary to permit an exchange of lands to allow the construction of a two lane Port Roadway connection adjacent B.C. Sugar, a relocated four lane Powell Street and a relocated C.P.R. track system.

B. That Council approve the purchase of Lots 28 to 32, each except the C.P.R. Right-of-Way, Block 2 of Block A, District Lot 182, Plan 355, by Engineering Services from the P.E.F. for a price of $130,000, to be funded from Streets Capital Account 13/32/9808/999, for Minor Property Acquisition.

C. That the City receive no cash compensation for the lands being turned over to the C.P.R. for railway purposes, to accommodate the Port Roadway.

D. That the General Manager of Engineering Services report back on the final details of the exchange and to obtain authority to purchase and convey land and City street as necessary.

SUMMARY

On June 25, 1996, Council authorized the General Manager of Engineering Services, the Manager of Real Estate Services and the Director of Legal Services to negotiate agreements as necessary, to permit an exchange of lands to allow the construction of a two lane Port Roadway connection adjacent B.C. Sugar, a relocated four lane Powell Street and a relocated C.P.R. track system.

On June 9, 1997, the City and the Vancouver Port Corporation (the "V.P.C."), now the Vancouver Port Authority (the "V.P.A.") entered into an agreement entitled "V.P.C./CITY AGREEMENT RELATING TO POWELL STREET RELOCATION AND RAIL LOCATION IN CONNECTION WITH COMMUTER RAIL"(the "V.P.C./City Agreement"). A copy of this agreement is on file in the City Clerk's Office.

On September 30, 1998, the Canadian Pacific Railway Company ("C.P."), the V.P.C. and the City entered into an agreement known as the Offer to Purchase Agreement. The agreement defines the terms and conditions under which the exchange will occur and is described herein as the "C.P./V.P.C./City Agreement". A copy of this agreement is on file in the City Clerk's Office.

The report seeks formal authorities required to meet a portion of the City obligations contained in both the V.P.C./City Agreement and the C.P./V.P.C./City Agreement.

The physical shifting of Powell Street southerly to accommodate the shifting southerly of the railway tracks is now complete. C.P. has completed work to relocate the rail tracks, and the V.P.C. has completed construction of the two-lane Port Roadway.

The portions of Powell Street, west of Rogers Street, as shaded on the plan attached as Appendix A, are now surplus to our needs and can be transferred to C.P. This transfer will allow C.P. to transfer an (approximately) equivalent strip of rail right-of-way to the Vancouver Port Authority ("V.P.A."), to accommodate the two lane Port Roadway.

PURPOSE

The purpose of this report is to achieve Council authority to:

1. Close, stop-up and convey to C.P. a portion of the north side of Powell Street, west of Rogers Street;

2. Convey a portion of the Remainder of Lot S, Plan LMP 35311 to C.P.; and

3. To provide Council with the details of the agreement as negotiated between the V.P.C. and the City, and as negotiated between C.P., the V.P.C., and the City.

BACKGROUND

A copy of the June 9, 1997 agreement between the V.P.C. and the City, negotiated to facilitate the relocation of Powell Street, is on file in the City Clerk's Office. (Although the V.P.C. is now the V.P.A., we will continue to reference the V.P.C. as all agreements in place reference the V.P.C.).

The V.P.C. has entered into an agreement with B.C. Transit, the Canadian National Railway Company, the Canadian Pacific Railway Company, and the Burlington Northern Railway and Sante Fe Company, known as the Commuter Rail Agreement which commits to the construction of a two lane port road between the Heatley Street overpass and Rogers Street.

The result is that Centerm and Ballantyne are connected to the Trans Canada Highway, so as to better service the southerly shore of Burrard Inlet within the City of Vancouver.

To provide the land as required, for construction of the two lane port road, it was necessary to shift Powell Street southerly. The V.P.C./City Agreement establishes the general principles for the construction work, including that the City will perform the work required and that the V.P.C. will pay $1.8 million for the same.

The agreement details in Section 7, a number of property transfers to occur from the City to C.P., being Sections 7 (a)(i), 7(a)(ii) and 7(a)(iii) as follows:

"(a) The City shall transfer to C.P. Rail, at no cost to C.P. Rail, the following:

(i) The property shown as Area "a" on the Plan, being located on the Northerly side of Powell Street, approximately 965 square metres in extent, fronting on:

(a) (P.I.D. 007-009-399) Block A, except portions in Reference Plan 19952 and Plan LMP 8263, District Lots 181 and 196, Plan 19584;

(b) (P.I.D. 007-009-534) Block B, except part in Reference Plan 19952, District Lot 182, Plan 19584;

(ii) The property shown as Area "b" on the Plan, and being approximately 14 square metres in extent, located on the northerly portion of (P.I.D. 015-684-288) That part of Lot 12, lying south of the Canadian Pacific Railway Right-of-Way, as shown on Reference Plan 1601 of Lot 2, Block K, District Lot 182, Plan 176;

(iii) The property shown as Area "c" on the Plan, and being approximately 79 square metres in extent, comprising portions of Lots 28 to 32 inclusive, except the Canadian Pacific Railway Right-of-Way, Block 2 of Block A, District Lot 182, Plan 355."

The V.P.C./City Agreement contains in Section 6, a number of "Conditions Precedent" to the Property Transfers. Those Conditions Precedents have now been met.

These include acquisition by the City of a portion of B.C. Sugar land at the northwest corner of Powell Street and Rogers Street, and the transfer to the City of a 302 square metre portion of land in the middle of Powell Street. This 302 square metre portion, nominally referred to as the Smith & Angus lands, was originally the subject of an 1891 exchange between the City and C.P.

This 1891 exchange was partially completed in various stages, most significantly in 1983. The transfer of the Smith & Angus lands was delayed due to complex title issues at the Land Title Office. On April 19, 1999, the City and C.P. received an Order of the Supreme Court of B.C. vesting title to the Smith & Angus lands in the name of the City.

The V.P.C./City agreement contained in Section 8, a number of potential property transfers from the City to V.P.C. The V.P.C. has elected not to proceed with these acquisitions, however, the owner of the private lands on the north side of Powell Street, between Vernon Drive and Clark Drive, has expressed an interest in acquisition of the same. We anticipate reporting to Council on this matter later in 1999.

DISCUSSION

The subject portion of Powell Street, west of Rogers Street, is made up of a number of different "roads". There are portions which were dedicated by a subdivision plan, some as early as 1884 (Plan 176) and portions which are established road. The "established road" presently exists in title in the Land Title Office. Each title is established as road by a resolution of Council, which resolution is noted on title.

The construction of the relocated Powell Street began in 1997, but was interrupted by a labour dispute. The City work to complete the relocated Powell Street is now finished. C.P. commenced on or about, June 15, 1998, work to relocate their track southerly. That work is complete. Further, the V.P.C. has completed construction of the two-lane Port Roadway adjacent to Rogers Sugar.

With resolution of the Condition Precedent of the V.P.C./City Agreement and completion of the City's road works, we are now prepared to move forward on the property transfers from the City to C.P.

The area as shaded on the plan attached hereto as Appendix A is surplus to our needs. It is the area that the C.P. rail tracks are now constructed on, and matches the areas referred to as Area "a" and Area "b" in Section 7 of the V.P.C./City Agreement which are committed to be transferred to C.P.

To deal with legal matters that pertain to the complex combination of dedicated and established road, it will be necessary to, for a moment in time, close and stop-up all that portion of dedicated and established road, as contained within the heavy outline on the plan attached as Appendix A. Immediately upon deposit of the plan, and resolution of closure, we will deposit a plan and resolution that will act to establish as road, all that portion of Powell Street so closed, except the portion as shaded.

The enclosed Appendix D details the portions of dedicated and established roads required to be closed so as to complete the described conveyance.

This will allow the shaded portion to be conveyed to C.P. The conveyance is to occur for a nominal sum, as defined within the agreements between the parties. As a condition of the conveyance, the land conveyed must be consolidated with the abutting C.P. lands.

The proposed consolidation is shown on Appendix B. The configuration of the consolidated parcel may change, depending on whether the land transfers as between C.P. and V.P.C. occur, before or after the consolidation. Appendix B shows that the general intent is that the lands abutting the relocated Powell Street and those that C.P. retains are to be a single parcel.

It has been determined there are two utility services that cross the lands as follows:

(a) a 15 inch sanitary sewer in a 54 inch pipe situated on the easterly edge of the northerly production of Raymur Avenue, a portion of which presently lies under the rail tracks on the lands owned by C.P. on the northerly side of Powell Street as detailed in C.P. document PV-7275 ; and

(b) an 8 inch water service lying within the northerly production of Glen Drive, a portion of which lies under the rail tracks on the lands owned by C.P. on the northerly side of Powell Street as detailed on C.P. Plan OD 49435 and is according to City records a private service to Rogers Sugar.

These services will be documented to the satisfaction of the Director of Legal Services as a condition of the closure.

Further, it has been determined that a C.P. rail switching apparatus has been constructed so that there is a very minor encroachment onto Powell Street. This very minor encroachment will be documented by way of a standard Encroachment Agreement to the satisfaction of the General Manager of Engineering Services. We are recommending that this agreement be granted with no annual fee.

As a condition of the June 14, 1996 Administrative Report (Recommendation B), Engineering Services transferred $130,000 from "Streets Capital Account 13/32/9808/999, for Minor Property Acquisition" to the P.E.F. These funds accommodated transfer of control of Lots 28 to 32, each except the C.P.R. Right-of-Way, Block 2 of Block A, District Lot 182, Plan 355, from the P.E.F. to Engineering Services.

On October 21, 1997, these lands were consolidated into Lot S by the deposit of Plan LMP 35311. On November 21, 1997, the Southerly 7 feet of Lot S, Plan 35311 was established as road.

As presented in Recommendation B, conveyance of the approximate 81 square metre (870 square feet) portion of Lot S, except: Part Road on Plan LMP 35881; Block 2 of Block A, District Lot 182, Plan LMP 35311, the same as shown hatched on the plan attached hereto as Appendix C, will provide the C.P. with ownership of all the lands encumbered with rail tracks. The conveyance is to be for a nominal fee. This is consistent with the June 14, 1996 Administrative Report and both the June 9, 1997 V.P.C./City Agreement and the September 30, 1998 C.P./V.P.C./City agreement. In Section 7 of the V.P.C./City Agreement, this area is referred to as Area "c".

As a condition of this transfer, the portion of Lot S must be consolidated with the abutting Canadian Pacific Railway Company owned Remainder of Lot 1, Plan 14625, as shown within the heavy outline on the plan attached as Appendix C.

CONCLUSION

This report serves to advise Council of the details of negotiations between the V.P.C. and the City and C.P./V.P.C. and the City, in regard to the relocation of Powell Street and the construction of the permanent two lane port road, westerly of Rogers Street.

The report seeks formal authorities to meet certain conditions of those negotiated arrangements.

The General Manager of Engineering Services, in consultation with the Manager of Real Estate Services, supports approval of Recommendations A, B, and C, subject to the conditions detailed within this report.

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(c) 1998 City of Vancouver