Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Director of Non-Market Operations in consultation with the Manager of Real Estate Services

SUBJECT:

59 Powell Street: Lease to the First United Church Mission, of the United Church of Canada

 

RECOMMENDATION

Approval of this Lease constitutes a grant to the Church equivalent to $760 per month, and requires eight affirmative votes of Council.

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

The below market rent charged over the term represents a grant which requires eight affirmative votes of Council for approval.

PURPOSE

This report seeks Council's approval to lease the Premises to the Church under the general terms and conditions listed under RECOMMENDATION in this report.

BACKGROUND

The property, known as Alexander Residence, is owned by the Vancouver Public Housing Corporation (the "Corporation"), a wholly-owned subsidiary of the City. It provides 30 low rental housing units for the harder-to-house.

Since 1979, a portion of the main floor and a portion of the basement of the building (the "Premises") has been rented to the Church for a drop-in and counselling centre (known as the "Dugout") for downtown eastside residents. Their lease was terminated in 1992 when the City and BCHMC initiated renovations to the building. The Dugout moved to a temporary space; returning once the renovations were completed; and entered into a monthly lease with the Corporation under the auspices of the Church.

The new Premises, comprising a portion of the main floor (1472.76 sq. ft.) and a portion of the basement (376.48 sq. ft.), was leased to the Church on a monthly basis effective January 1, 1993 at $600.00 per month inclusive of property taxes as if levied and the monthly rent was reviewed every year since. The monthly rent was established by the Director of Non-Market Operations in consultation with BCHMC and the Church.

Staff consulted BCHMC prior to establishing the rental rate for the Dugout because the operating budget for the Alexander Residence, including the Dugout space, is subsidized by the Federal/Provincial Partnership (CMHC and BCHMC) with BCHMC as the active partner.

CURRENT SITUATION

The market rent for year 2000 is estimated to be $1,500.00 per month, inclusive of property taxes as if levied and of utilities other than electrical and telephone. Fortunately, BCHMC is prepared to subsidize a below-market rent of $740.00 per month, retroactive to January 1, 2000. As the Church is unable to pay even the reduced subsidized rent, City Council on March 28, 2000 approved a Community Services Rent Subsidy Grant of $8,880.00 ($740.00 per month for a year).

As the rent charged the Church is $760.00 per month below market, this constitutes a grant which requires eight affirmative votes of Council for approval. There is, however, no actual cost to the City with the operating subsidy paid by the Federal/Provincial Partnership.

With Council approval, the City of Vancouver Public Housing Corporation will then, as landlord, enter into a lease with the Church, the lessee, for the Premises.

* * * * *


ag000613.htm


Comments or questions? You can send us email.
[City Homepage] [Get In Touch]

(c) 1998 City of Vancouver