ADMINISTRATIVE REPORT

Date: June 16, 2000
Author/Local: Alice Yee/7180

RTS No. 1539

CC File No. 5104

Council: July 4, 2000

TO:	Vancouver City Council
FROM:	Director of Real Estate Services
SUBJECT:	350 East Pender Street - Lease of Dunlevy Avenue between Pender Street and Keefer Street to Mau Dan Gardens Cooperative Housing Association

CONSIDERATION

THAT the lease be renewed for a 5-year term from July 1, 2000, subject to the terms and conditions acceptable to the Director of Real Estate Services and the Director of Legal Services, it being noted that no legal rights or obligations shall arise until execution of the lease. The rent to be $4,000.00 per annum.

GENERAL MANAGER'S COMMENTS

The General Manager of Corporate Services submits the foregoing for CONSIDERATION.

COUNCIL POLICY

Pursuant to Section 206(1)(a) of the Vancouver Charter, not less than two-thirds of all members of council must approve a resolution for the making of a money grant to a charitable institution (lease of City property at less than market rent is considered a grant).

Vancouver City Council at its regular meeting on April 27, 1995 approved a 5-year lease at below market rent of $4,000.00 per annum to the Mau Dan Gardens Co-Operative Housing Association.

PURPOSE

The purpose of this report is to seek Council approval for the renewal of the lease of the portion of Dunlevy Avenue between Pender Street and Keefer Street. That portion ofDunlevy Avenue, adjacent to Lot C, Block 122, District Lot 196, Plan 13208, Group 1, New Westminster District (outlined in bold in Appendix A - on file in the City Clerk's Office) leased to Mau Dan Gardens Co-Operative Housing Association, for a below market rent of $4,000.00 per year.

BACKGROUND

In April 1995, Council resolved to close, stop up and lease that 10,037 sq. ft. portion of Dunlevy Avenue between Pender Street and Keefer Street to Mau Dan Gardens Co-Operative Housing Association, to allow for the installation of fencing around their property to improve security. The closure received the support of the residents in the community, the Police, Planning and Engineering departments.

The portion of the road was leased to the Association for 5 years from 1995. The rent of $4,000.00 per year was to compensate the City for alienating the road from public use.

CURRENT SITUATION

In the discussions for the lease renewal, staff advised the Association that the fair market rent for the closed portion of road would be $16,095.00 per year. The Association, citing the importance of the closed road for maintaining safety and security, and their difficult financial position, requested the City to renew the lease at the same rent of $4,000.00 per year. Their reasons for the request are explained in their letter of April 8, 2000. (see Appendix B - on file in the City Clerk's Office).

The City Engineer would support the renewal of the lease with similar terms and conditions as the existing lease, and at a rent of $4,000.00 per year. The Director of Real Estate Services presents for consideration,the request for a grant of $12,095.00 in lieu of rent.

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(c) 1998 City of Vancouver