Agenda Index City of Vancouver

POLICY REPORT
DEVELOPMENT AND BUILDING

TO:

Vancouver City Council

FROM:

The Director of the Housing Centre and the Director of Current Planning, in consultation with the Director of Social Planning

SUBJECT:

Development of the CityGate Housing Co-operative - 941 Main St.

 

RECOMMENDATIONS

B. THAT the $200,000 payment from Bosa Development Corp., be designated for tenant improvements to the retail space at 941 Main St., and that the net revenue from the retail space at 941 Main St. be designated for the Childcare Endowment Fund with the retail space to be managed by Real Estate Services on behalf of the Childcare Endowment Fund.

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

a) Non-Market Housing

Since 1988 Council has required that 20% of the units in major projects be designated for non-market housing, with a priority for core-need households, and requires that the non-market housing sites be made available at a price that allows the projects to be developed within the maximum budgets established by senior government non-market housing programs. At least half of the non-market housing units must be designed and developed for families. The 20% policy has been relaxed for major projects where economic feasibility or other public priorities do not permit the full 20% non-market requirement to be achieved.

Council policy is to consider affordable housing proposals not subsidized through senior government programs, or payment-in-lieu, for non-market sites that were submitted for senior government funding and did not receive it, or if there is little likelihood of funding forthcoming.

b) Childcare

In 1990 City Council approved the Childcare Policy which states that the City is committed to being an active partner in the development and maintenance of a comprehensive childcare system in Vancouver.

PURPOSE AND SUMMARY

This report presents a proposal for the development of the last non-market housing site in CityGate for 102 units of primarily family housing funded by BC Housing under the City/Province 1999-2000 Non-Market Housing Partnership. Bosa Development Corporation is prepared to proceed with the project at 90% of the maximum budget allowed under the provincial programs.

The ground floor of the project would include retail and childcare space that Bosa will turn over to the City at no cost. The retail space would be ready to lease. Finishing and furnishing of the childcare space would occur when future capital and operating funds become available. The net rent from the retail space and childcare would be used to support the Childcare Endowment Fund.

A non-market housing project with more family units consumes more floor space than a project with fewer family units. As the proposed project contains a greater proportion of family units than originally contemplated, it is recommended that text amendments to the existing CD-1, to increase the maximum residential floor space and to reduce the required percentage of non-market housing in CityGate, be referred to public hearing and approved. The location of CityGate is noted on Figure 1.

Figure 1

BACKGROUND

a) CityGate

The CityGate development occupies the two blocks at the east end of False Creek between Quebec and Main St. north of Terminal. The site was rezoned in 1990 (By-law 6744 - CD-1 #264) to accommodate up to 1000 housing units of which 25% must be designed for families, and 20% must be developed for non-market housing of which half must be designed for families. The CD-1 permits a total residential floor space of 113 900 m² (1,226,009 ft2);6 570 m² (70,719 ft2) of retail floor space; 9 690 m² (104,302 ft2) of service or office floor space; and 2 150 m² (23,142 ft2) of institutional floor space.

Through the rezoning process the City negotiated the inclusion of two childcare centres and one community room in the project, in addition to sites for non-market housing. These were secured by legal agreements.

The south block of CityGate is now complete. It consists of the VanCity office building, 545 units of housing, of which 74 are non-market units. It also includes a childcare centre serving 25 children aged 3-5 which Bosa built and provided to the City.

The north block is now under development. One market strata building with 152 units has been completed, and the building permit for another with 142 units has been issued. There are 15,313 m² ( 164,828 ft2) of floor space and 161 units remaining for the last two CityGate sites, one of which is the non-market housing site at 941 Main St.

b) 1999-2000 City/Province Non-Market Housing Partnership

On Oct. 5, 1999, Council approved the 1999-2000 partnership between the City and the Province for the development of non-market housing in Vancouver. One of the projects included is the remaining non-market housing site in CityGate. Bosa Developments Ltd. is prepared to build the project at 90% of the maximum budget allowed by the Province, a discount of $1,800,000 in the cost of the 102 unit project, if the Province funds the project through the 1999-2000 non-market housing partnership. This would allow the non-market housing to be built at the same time as the rest of the market housing in CityGate.

PROPOSED PROJECT

The last non-market housing site in CityGate (Lot 2, D.L. 196 and 2037, Plan LMP _______) is designated for 126 units of which 44 must be designed for families. The site is to be shared with the second childcare centre that would serve infants and toddlers, the community room, and retail facing Main St.

The original concept was to develop the non-market housing, community room and childcare within a City-owned airspace parcel, and the retail space in a second airspace parcel that Bosa would own. Bosa is required under the existing legal agreements to develop the non-market housing once senior government funding is provided, at which time Bosa must build, finish and furnish the childcare centre and community room at their cost, and turn them over to the City. At the same time, Bosa would build the retail along Main St.

The project now proposed revises these arrangements. It is now proposed that Bosa build the retail space and give that to the City along with the space for the childcare centre. The retail space would be finished to the stage ready for tenant improvements. In return, Bosa would only develop the shell for the childcare space, and would not be required to provide the community room.

The project would consist of 102 non-market housing units with a total area of 11 981 m² (118,600 ft2), a 444 m² (4779 ft2) childcare space (plus 409 m² (4402 ft2) of associated outdoor space), and 625 m² (6,727 ft2) of retail space. There would be 92 family units and 10 units for singles and couples without children (10 1-bedroom units, 53 2-bedroom units, 25 3-bedroom units, 10 4-bedroom units, and 4 5-bedroom units). The Approving Officer has given preliminary approval to a subdivision of the north block of CityGate to create the 3 710 m² (39,934 ft2) site for the project.

A Memorandum of Understanding between the Housing Centre and Bosa Developments Corporation setting out the arrangements is attached as Appendix A.

These changes to the original concept are recommended because:

· BC Housing will fund a primarily family non-market housing project under its 1999/2000 Homes BC programs. This will allow the non-market housing project to be developed at the same time as the rest of CityGate is completed;

· an airspace subdivision can be avoided, and the City will receive a separate lot on which a free standing building can be developed;

· the City would not be faced with subsidizing the childcare, which a childcare serving infants and toddlers would require, at a time when the City's Childcare Endowment is short of funds;

· the childcare space could be finished and furnished whenever capital and operating funding becomes available, and in the meantime the future childcare space could be rented out;

·
since the City is not paying for the retail or childcare space, the net revenue from the retail and childcare space on Main St. would be available for the Childcare Endowment Fund; and

· it preserves the opportunity to develop the community room within the retail space if at some time in the future a need is identified and operating funding is secured.

These changes to the project reflect current circumstances. Non-market housing programs, childcare funding and the City's approach to the provision of community space have all changed over the past decade. The changes to the project permit the non-market housing to proceed along with the completion of CityGate while preserving the opportunities to provide the childcare centre and community room in the future.

An analysis was undertaken to determine the savings to Bosa for not having to finish or furnish the childcare centre and not having to build the community room, and the cost to Bosa of providing the retail space to the City instead. Bosa would realize a net savings of $200,000 as a result of these new arrangements which Bosa would pay to the City. The $200,000 would be set aside for tenant improvements and operating expenses during initial vacancies and rent up of the retail space.

The net rental revenue from the retail space is estimated at between $40,000 and $70,000 per year depending on market conditions and the inducements such as tenant improvements required to entice tenants to rent the space. The childcare space will be difficult to rent and, if fully rented, the rent would be on the order of an additional $16,000 per year. It is recommended that the net revenue from the retail and childcare space be designated for the City's Childcare Endowment Fund. The Real Estate Division would manage the retail space on behalf of the Childcare Endowment Fund.

AMENDMENTS TO THE CD-1 BY-LAW

The proposed project can proceed under the existing zoning (By-law 6744 - CD-1 #264). However, amendments are proposed to the CD-1 by-law to:

· provide additional floor space for the non-market housing project and community room, and
· reduce the current requirement that 20% of the units be developed for non-market housing, at least half of which must be designed for families, to a requirement that 17.6% of the units be non-market units, at least half of which must be designed for families.

Without these amendments, Bosa would have to provide more floor space for the non-market housing than required by the current zoning for CityGate, and, in order to achieve 20% non-market housing in CityGate, Bosa would have to provide 24 non-market units within the market project to be developed on the last site in CityGate, which would be difficult to achieve physically or financially.

A) Additional Floor Space

The unit mix in the non-market project is regulated by three zoning requirements:
· that at least 25% of all the units in CityGate be designed for families;
· that at least 20% of all the units in CityGate be non-market housing, and
· that at least 50% of all the non-market housing units in CityGate be designed for families.

Assuming all 1000 dwelling units permitted in CityGate are built, 250 must be designed for families. To date Bosa has built, or has approved permits for 205 family units. Additional family units will be provided when the last market site is developed.

Assuming all 1000 units are built, 200 must be non-market housing. Seventy-four (74) units of non-market housing have been built, leaving 126 units to be built on the last non-market housing site.

Assuming all 1000 units are built, at least 100 of the non-market units must be designed for families. The other 100 units can be smaller units designed for singles and couples without children. Of the 74 existing non-market housing units in CityGate, 56 are designed forfamilies. Therefore, Bosa must provide at least enough floor space for 44 family units and 82 units for singles and couples without children, or 93,200 ft2 in total.

The addition of 44 non-market family units on this site will satisfy the requirement that 25% of all the units in CityGate be designed for families. Consequently, no more than half of all the non-market housing units must be designed for families, and Bosa is only required to provide 93,200 ft2 of floor space for this last non-market housing site.

The proposed non-market housing project contains 118,600 ft² (11 018 m²) of residential floor space for the 102 family units, or 25,400 ft² more than Bosa is required to provide. It is recommended that the CD-1 for CityGate be amended to increase the maximum residential floor space by 27,000 ft² (2508 m²) to provide the additional floor space for the non-market project and flexibility as the design is finalized. The non-market housing site at 941 Main St. would be allocated 120,000 ft².

In addition, a 225 m² (2,422 ft²) community room would be excluded from the calculation of floor space. If the community room is converted to retail space, the area would be included in the calculation of floor area. It is therefore recommended that the maximum permitted floor area be increased by 225 m² (2,422 ft²) to maintain the residential floor space that would otherwise have been available for the last site in CityGate.

The total increase in the maximum permitted residential floor space proposed is 2 733 m² (29,422 ft²). The Director of Planning supports the proposed increase in the floor space allocated to the non-market housing site. It will result in a 7-storey masonry building facing Main St. and would meet the urban design guidelines on massing and height that have been adopted by the City. Masonry construction is better able to withstand the impact of the traffic on Main St. It will create a more livable environment than the wood frame building that is all that could be afforded if a smaller project was developed on the site. A Development Permit Application has been submitted for the project (DE405027). The design has been supported by the Urban Design Panel and the floor space appears achievable.

The addition of 2 733 m² of residential floor space would leave 6 273 m² (67,522 ft²) of floor space for the last site in CityGate. The design guidelines for CityGate contemplate that this site will be developed with a 12 - 15 storey building. The approved building envelope for the site can comfortably accommodate 6 273 m². This is what Bosa would have had available for the site if a 93,200 ft² project was built on the non-market site.

The total number of units permitted in CityGate would remain at 1000. There would be 59 units available for the last market site.

B) Percentage of Non-Market Housing

Family housing has been a Council priority for the new downtown neighbourhoods. This is why Council requires that 25% of all the units and half of all the non-market housing units be designed for families. The high density character of development downtown means that most units will be suitable for singles and couples without children. At the present time the Province, through BC Housing, is primarily funding family non-market housing or non-market housing for the homeless or those at risk of becoming homeless. There is little funding available for housing for singles or couples without children. Consequently, if non-market sites in the new downtown neighbourhoods are to be developed under current housing programs, the projects need to be oriented to families.

BC Housing is prepared to fund up to 102 units of family non-market housing project on this site. With the existing 74 units of non-market housing in CityGate, a 102 unit project will result in 176 units of non-market housing in CityGate, or 17.6% of the maximum 1000 dwelling units permitted under the CD-1 for the CityGate site. It is recommended that the percentage of non-market housing required in CityGate be reduced from 20% to 17.6%. Though fewer non-market units would be built in CityGate, the City will achieve the non-market value for the site.

Table 1 summarizes the current CD-1 unit requirements and what would actually be developed if the proposed amendments to the CD-1 are approved.

TABLE 1

Out of the 1000 unit maximum

family units

non-market units

non-market family units

 

# %

# %

# %

Required by CD-1

250 25

200 20

100 10

Proposed Actuals

312 31.2

176 17.6

148 14.8

CONCLUSION

Provincial funding is available for the last non-market housing site in CityGate. Amendments to the legal agreements for CityGate are proposed that would allow a 102 unit primarily family non-market housing project (CityGate Housing Co-operative) to proceed. The shell of the proposed childcare centre would be built now, along with retail space, and both would be turned over to the City. Net revenue from renting the retail and the childcare space would go into the City's Childcare Endowment Fund. At some point in the future, when funding is available, the City can complete the childcare centre. Amendments to the CityGate CD-1 are proposed that will compensate the developer for providing more floor space to the non-market housing project than required, and to reduce the percentage of non-market housing required, since more of the units will be larger family units than originally contemplated. The resulting buildings will nonetheless meet the urban design guidelines adopted for this site.

- - - -

APPENDIX B

PROPOSED CHANGES TO CD-1 By-law No. 6744 - 101 Terminal Ave. (CD-1 #264)

Uses

4(a) a maximum 1,000 residential dwelling units provided in multiple dwellings or in conjunction with any of the uses listed below provided that:

6. Floor Area

Section 6.1 The maximum floor area for any use listed in Table 1 shall be as set out below.

10. Parking

(d) multiple dwelling uses, not including units designated for non-market, low income or seniors housing, shall provide a minimum of 1 space for each 100 square metres of gross floor area plus 0.5 spaces for each dwelling unit;

(e) family non-market housing shall provide a minimum of 1.1 spaces for each dwelling unit; and

(f) recreational and cultural uses shall provide parking as determined by the Director of Planning in consultation with the City Engineer; and . . .

APPENDIX C

PROPOSED CONDITIONS OF APPROVAL

THAT, prior to enactment of the CD-1 By-law:
a) the LaFarge Site - Daycare Agreement be modified to require the developer to construct the shell of the daycare centre to be built at 941 Main St. (Lot 2, D.L. 196 and 2037, Plan LMP _____ ) but not finish or furnish it, on terms and conditions to the satisfaction of the Director of Community Services and the Director of the Legal Services,
b) the Station LaFarge Site - Social Housing Agreement be modified to require the developer to dedicate 17.6% of units in City Gate for non-market housing and allocate 120,000 buildable square feet of floor space to Lot 2, D.L. 196 and 2037, Plan LMP ______, on terms and conditions to the satisfaction of the Director of the Housing Centre and the Director of Legal Services, and
c) the LaFarge Site - Community Room Agreement be modified to delete the requirement that the developer provide a community room and add the requirement that the developer provide the retail space to be developed on the ground floor of the non-market housing project at 941 Main St. (Lot 2, D.L. 196 and 2037, Plan LMP ________) to the City at no cost, and to pay the City $200,000, on terms and conditions to the satisfaction of the Managers of Facility Development and Real Estate Services and the Director of Legal Services.

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