Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Subdivision Approving Officer

SUBJECT:

Strata Title Conversion - 283-285 West 17th Avenue

 

RECOMMENDATION

OR

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Council policy is reflected in the City's Strata Title and Cooperative Conversion Guidelines, which outline factors which Council will consider in reviewing applications for converting previously-occupied buildings to strata title or cooperative ownership.

PURPOSE

Council approval is required for an application to convert the previously-occupied building at 283-285 West 17th Avenue (Lot A, Block 502, D.L. 526, Plan LMP40206) to strata title ownership.

BACKGROUND

The site is zoned RS-2 and is developed with a two-storey-plus-basement two-family dwelling currently undergoing extensive renovations. This is a municipally-designated heritage building, built circa 1910, which is listed as category "C" on the Vancouver Heritage Register. The site is also being developed with a new infill one-family dwelling.

City permit records indicate that the heritage building was converted from a one-family to a two-family dwelling in 1963. Although one unit in the dwelling has been tenanted in the past, the notarized declaration submitted with this application states that the building was owner-occupied from the time of purchase in 1977, until renovations began in early 1999, following issuance of the relevant permits. Land Title Office records corroborate this information.

The extensive interior and exterior alterations and additions to the heritage building are being performed pursuant to Development Permit No. DE402153 and Building Permit No. BU411009. The infill dwelling is being constructed pursuant to Building Permit No. BU411097. All construction is nearing completion.The location of the site is shown in Figure 1, below.

Figure 1

Council approved the recommendation to designate the heritage building as a Protected Heritage Property on April 8, 1998. In exchange for designation, the Director of Planning permitted increases in the floor space ratio, and relaxed the minimum site area required forinfill use as well as the side and rear yard setback regulations of the RS-2 District Schedule. A Heritage Revitalization Agreement was not entered into at that time, as the relaxations requested were within the scope of discretion of the Director of Planning.

The applicant proposes to create a total three strata lots in the two buildings. Pursuant to Section 9 of the Condominium Act, Council's approval is required as it relates to the previously-occupied heritage building only.

REDEVELOPMENT OPTIONS

As noted above, several relaxations were granted in the approval of the Development Permit for this project, on the basis of heritage merit. If the heritage building is ever extensively damaged or destroyed, however, there is some uncertainty as to whether it could be replaced, at the existing density, based on both the regulations of the RS-2 District, and the RS-2 Infill and Multiple Dwelling Guidelines.

In 1997, in considering an application to convert a three-unit MCD in the RS-2 Zoning District to strata title ownership, Council approved the strata title conversion subject to a Section 219 Covenant being registered against the title of the property, advising prospective purchasers of the redevelopment uncertainty. Specifically, these individuals may be unaware that should the buildings be either extensively damaged or destroyed, there is no guarantee that the buildings could be rebuilt to create the previously-approved number of dwelling units, nor is there a guarantee that the density approved could be achieved again.

It is doubtful that the market is cognizant of the uncertainty of redevelopment in these situations and it is therefore recommended that the matter be addressed, prior to final approval of the strata plan. This circumstance exists whether the units are retained under single ownership or are strata titled and sold to different individuals. However, the implications of unanticipated building destruction may be particularly problematic for strata lot owners. Strata titling creates additional legal interests in the property and prospective strata lot owners should be given as much clarity as possible regarding the future security of their investment relative to the City's zoning.

Throughout the earlier discussions with this property owner, culminating in heritage designation and approval of the development now nearing completion, the owner had indicated that they would occupy one of the three dwelling units and that the other two would be rented. Strata titling was not contemplated.

In now considering the creation of each dwelling unit as a strata lot, the uncertainty of redevelopment can be addressed in one of two manners, either by registration of a restrictive (advisory) covenant as described above, or as an alternative in this instance, the applicant could request to enter into a Heritage Revitalization Agreement (HRA). By varying - on a permanent basis - the zoning regulations and guidelines which apply to the site, the HRAcould enshrine the redevelopment potential of the site, and might go so far as to require replication if the buildings were ever extensively damaged or destroyed.

STAFF ANALYSIS

In addition to Planning Department staff, the City Engineer and the City Building Inspector have reviewed this application. As the building has been owner-occupied and contains only two dwelling units, the Manager of the Housing Centre has not been asked to comment.

The City Engineer reports that there are no dedication or servicing requirements for this site.
The City Building Inspector reports that when all work has been completed in accordance with the approved plans and permits, and an Occupancy Permit has been issued, the previously-occupied building will substantially comply with all relevant City by-laws.

CONCLUSION

Section 9(3) of the Condominium Act states that Council shall consider, in making a decision to convert a building under Section 9 of the Act, any other matters that, in its opinion, are relevant. Re-use of the heritage building and the extension of its life expectancy through the substantial upgrading that is taking place, is clearly consistent with established Council policy aimed at preserving existing heritage stock. The opportunity for conversion to strata title provides an additional incentive for the owner to pursue renovation and restoration projects.

The matter of future redevelopment uncertainty can be addressed in this instance by way of a covenant giving notice to future purchasers, or by way of a Heritage Revitalization Agreement which might permanently remove this uncertainty by varying the by-laws and regulations applying to this site, thereby enshrining their redevelopment potential.

Subject to the foregoing, and based on the applicant's compliance with the City's Strata Title and Cooperative Conversion Guidelines, the Subdivision Approving Officer supports this application.

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