ADMINISTRATIVE REPORT

Date: July 9, 1999
Author/Local: MG Thomson/7329
RTS No. 00827
CC File No. 1203

Council: July 27, 1999

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Proposed Closure and Lease of a Portion of Cassiar Street, North of Bridgeway

RECOMMENDATION

A. THAT Council rescind the July 28, 1998 motion to approve a lease of a portion of Cassiar Street, North of Bridgeway as contained in the report of the General Manager of Engineering Services dated July 14, 1998.

B. THAT all that portion of Cassiar Street, shown hatched on the attached plan marked Appendix "A", be closed, stopped-up and leased to Cascadia Terminal for the construction of grain handling facilities and the placement and maintenance of rail trackage, subject to the following conditions:

1. The term of the lease to be ten (10) years subject to one year's notice of cancellation after the first two years if the lease area is required for municipal purposes. After serving of notice by the City, Cascadia Terminals may, within three (3) months, offer alternate routing or arrangements for such municipal purpose. The City Engineer will consider any alternate routing or arrangements offered by Cascadia Terminals and report the matter to Council either recommending acceptance of the alternate routing or arrangements or that the original notice of cancellation stand;

2. The annual rental to be $5156.00 (inclusive of taxes), based on the lease area being 4445 square feet, in accordance with the recommendation of the Manager of Real Estate Services. The lease area is to be confirmed by Cascadia Terminal, by survey on the ground and the rental adjusted accordingly, once the facilities are constructed;

3.The lease to contain right-of-way provisions to accommodate the existing, adjacent Greater Vancouver Sewerage and Drainage District sewer line;

4. That prior to any construction on the lease area, approval of the proposed construction is to be obtained, in writing, from the General Manager of Engineering Services and from the Chief Engineer of the G.V.S.&D.D.;

5. The lease is to commence July 1, 1999 with the agreement to the satisfaction of the Manager of Real Estate Services and the Director of Legal Services;

6. No legal right or obligation shall be created hereby and none shall arise hereafter, until the documents are executed.

COUNCIL POLICY

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

PURPOSE

As part of the redevelopment of the Alberta Wheat Pool (A.W.P.), facilities north of Bridgeway, the partnership (A.W.P. and Cargill Limited now Cascadia Terminal) wishes to lease an unopened portion of Cassiar Street, north of the Canadian Pacific Railway tracks. The partnership wishes to construct a new grain handling facility and, due to site constraints, they require that the building encroach onto the unopened street.

BACKGROUND

On July 28, 1998, Council approved the recommendations of the General Manager of Engineering Services as contained in a report dated July 14, 1998 to lease a portion of Cassiar Street, north of Bridgeway to Cascadia Terminal for the construction of grain handling facilities and the placement and maintenance of rail trackage.

The report recommended a lease term of three (3) years over a very preliminary area. Over the last year, staff working with the applicant have been able to refine the area. While still not precise, it is defined with greater accuracy than one year ago.

Cascadia Terminals have been concerned that the three (3) year term was too short, as the cost of their proposed construction is large. Staff were reluctant to support anything longer at the time, due to the lack of clarity around the development.

In the last year, staff have been able to determine there is no foreseeable municipal use of the area in the next ten years and are, therefore, prepared to recommend to Council the longer term.

This report seeks to renew Council authority for the lease, lengthen the term to ten (10) years, and to commence the lease July 1, 1999.

DISCUSSION

The partnership is proposing a multi-million dollar upgrade to the grain handling terminal formerly operated by A.W.P. The new facility will be known as Cascadia Terminal. The Vancouver Port Authority has given approval to the project and Canadian Pacific Railway has given a letter of support for the lease of the required portion of street.

The proposed lease area is adjacent to a large Greater Vancouver Sewerage and Drainage District sewer. Therefore, any construction on the lease area must be approved by the G.V.S.&D.D.

The subject portion of street is isolated from the City street system by the C.P.R. tracks, and it would not be safe for the public to be in this location because of the intense rail and grain handling activity.

CONCLUSION

The subject portion of Cassiar Street is not required for street purposes at the present time. Staff have determined there is no foreseeable municipal use of this area over the next ten years. We will, at all times, reserve the right to construct, install and maintain utilities as necessary. Cascadia Terminals wishes to lease this portion of street to allow modernization of their grain handling facilities. Subject to the conditions set out in this report, we recommend Council close, stop-up and lease the portion of Cassiar Street, shown hatched on Appendix "A".

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(c) 1998 City of Vancouver