Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO: Vancouver City Council
FROM: Director of Real Estate Services and the General Manager of Park Board in consultation with the Director of Legal Services and the General Manager of Engineering Services
SUBJECT: Chinese Cultural Centre and Dr. Sun Yat-Sen Park
 

RECOMMENDATION

A. THAT Council revoke the permanent park designation of the two areas of the City-owned site legally described as Parcel C, Block 14, District Lots 196 and 2037, Group 1, NWD Plan LMP 44418 PID 024-656-739 ("Parcel C"), adjacent to Pender Street shown hatched on Appendix A and labelled "Permanent Park" (the "Two Small Permanent Park Areas");

B. THAT Council revoke the temporary park designation of the area of Parcel C adjacent to Carrall Street shown outlined on Appendix A and labelled "Temporary Park" (the "Temporary Park Area");

C. THAT Council designate the Temporary Park Area as permanent public park under section 488(5) of the Vancouver Charter;

D. THAT Council revoke the permanent park designation of certain minimal areas (the "Northerly Adjustment Areas") of the main permanent park area on Parcel C shown outlined in bold black on Appendix B and labelled "Parks Board Permanent Park" (the "Main Permanent Park Area"), which Northerly Adjustment Areas, as shown on Appendix A, lie between the bold black line marked "Proposed Permanent Park Boundary" and the dotted line marked "Present Permanent Park Boundary" and generally to the north or east of the bold black line;

E. THAT Council designate, as permanent public park under section 488(5) of the Vancouver Charter, certain minimal areas (the "Southerly Adjustment Areas") of the Main Permanent Park Area on Parcel C, which Southerly Adjustment Areas, as shown on Appendix A, lie between the bold black line marked "Proposed Permanent Park Boundary" and the dotted line marked "Present Permanent Park Boundary" and generally to the south or west of the bold black line;

F. THAT Council approve acceptance of the surrender of four leases (the "Original Leases") detailed in Appendix C, granted by the City to the Chinese Cultural Centre ("CCC") for various portions of Parcel C and buildings at 50 East Pender Street and 555 Columbia Street;

G. THAT Council grant to CCC two leases for the buildings (the "Buildings") situated on the northerly part of Parcel C and presently used by CCC and an agreement to lease an area adjacent to the easterly building to permit construction by CCC of a theatre, together with an easement shown outlined in bold black on Appendix B, over the northerly part of Parcel C surrounding the Buildings (the "Easement Area"), until March 14, 2040. The rent is to be nominal except for the commercial areas of the Buildings in respect of which CCC will be obliged to pay the City 11% of gross revenues plus property taxes as if levied or a grant in lieu of property taxes. Other terms and conditions, and the form, of the leases, agreement to lease, and easement are to be to the satisfaction of the Director of Real Estate Services, the General Manager of Engineering Services, and the Director of Legal Services; and

H. THAT Council authorize the continued existence of certain encroachments installed or constructed by CCC from the Buildings onto abutting City streets for the lesser of the life of the Buildings or the term of the leases; the waiver of fees which CCC would otherwise be obliged to pay under the Encroachment By-law; and the inclusion in the leases of encroachment provisions including an indemnity, all to the satisfaction of the Director of Real Estate Services, the General Manager of Engineering Services, and the Director of Legal Services.

GENERAL MANAGER'S COMMENTS

The General Managers of Corporate Services, Park Board and Engineering Services, and the Director of Legal Services RECOMMEND approval of the foregoing.

COUNCIL POLICY

Section 488(1) of the Vancouver Charter requires an affirmative vote of not less than 2/3 of all members of both the Council and the Park Board to revoke a permanent park designation.

Section 488(2) of the Vancouver Charter requires an affirmative vote of not less than 2/3 of all members of the Council to revoke a temporary park designation.

 

SUMMARY

This reports recommends arrangements to properly define the boundary of the area of Parcel C occupied by CCC and the area of Parcel C occupied by Dr. Sun Yat-Sen Park (the "Park"), and to update the legal documents and temporary and permanent park designations to reflect the current use of Parcel C. Approval of the recommendations will resolve a long standing anomaly with regard to responsibilities for various portions of Parcel C occupied by CCC and the Park.

PURPOSE

The purpose of this report is to request Council approval to:

(a) release the permanent park designations of the Two Small Permanent Park Areas and make permanent the temporary park designation of the Temporary Park Area, all of which are located on Parcel C which is shared by the Park Board, Dr. Sun Yat-Sen Classical Chinese Garden (the "Garden"), and CCC;

(b) give the Park Board the Southerly Adjustment Areas in exchange for the Northerly Adjustment Areas, and include the Northerly Adjustment Areas in the easement agreement for CCC;

(c) accept surrender by CCC of the Original Leases; and

(d) grant CCC two leases for the Buildings, an agreement to lease the area of Parcel C necessary for construction of the theatre complex, and an easement over the Easement Area.

 

BACKGROUND

The Garden, Dr. Sun Yat-Sen Park and CCC are located on Parcel C which is bounded by Carrall, Keefer, Columbia and Pender Streets as shown on Appendix A. The City leases portions of Parcel C to CCC as shown on Appendix A and has designated most of the balance of Parcel C as permanent park, also as shown on Appendix A. The Park Board leases a portion of its permanent park to the Garden.

In 1976, Parcel C consisted of several City-owned lots and the Pender-Keefer Diversion. Council approved that a site be created for the proposed Chinese Cultural Centre and a major recreational park amenity for the areas. Lease arrangements were to be at a nominal rent for the space used for cultural and social purposes and at "an equitable formula for land used for commercial purposes".

By 1986, the City had consolidated the land now comprising Parcel C, except for one piece of lane, and had granted the Original Leases which are listed in Appendix C, to CCC.

On April 8, 1986, the Council designated, as Permanent Park, the Two Small Permanent Park Areas and the Main Permanent Park Area shown shaded on Appendix D; this plan was attached to the Council report and served as the basis for the passage of the April 8, 1986 resolution. Council also turned over the Temporary Park Area to the Park Board to have custody, care and management of it until such time as CCC was ready to construct its museum facility.

 

CURRENT SITUATION

Circumstances have changed over the past several years and the following is now the existing situation with respect to the park areas:

1. The Two Small Permanent Park Areas are:

(a) located adjacent to the Buildings within a surrounding area all of which is leased to CCC;

(b) finished with paving stones;

(c) maintained by CCC; and

(d) not maintained or used by the Park Board and not of any use to the Park Board.

2. CCC no longer wishes to build its museum on the Temporary Park Area.

3. The Garden has applied for a development permit to extend its operation into the Temporary Park Area and wishes to lease the Temporary Park Area from the Park Board for that purpose. Since the Park Board already has an agreement with the Garden, designation of the Temporary Park Area as permanent park is logical in that Park Board will be able to add the Temporary Park Area to that agreement.

Removing the permanent park designation from the Two Small Permanent Park Areas and changing the temporary park designation of the Temporary Park Area to a permanent park designation will give CCC exclusive use of its Buildings by way of the leases, of the theatre, which will eventually become part of the Buildings, by way of the agreement to lease (which will become a lease on completion of construction of the theatre), and non-exclusive use of the Easement Area, and will give the Park Board the authority to control the Temporary Park Area and permit the Garden to expand into it if the Park Board chooses to let the Garden do so.

The resulting configuration of Parcel C will be as shown on Appendix B.

The northerly boundary, as shown on Appendix B, is a new boundary for the Main Permanent Park Area and reflects the reality of: how CCC has used the Northerly Adjustment Areas even though they are Permanent Park; and how the Park Board has used the Southerly Adjustment Areas even though they are leased to CCC and are not Permanent Park. The recommendation to exchange those Areas by adjusting the boundary simply reflects the current actual situation on the ground. For example, portions of the Buildings encroach into the Main Permanent Park Area, and a portion of the park pond is within the CCC leased area. This boundary adjustment will alleviate that problem. There will still remain minor encroachments, such as overhanging eaves from the Buildings onto the Main Permanent Park Area. However, at grade the physical facilities will be placed in the control of the appropriate responsible party.

With respect to the existing lease arrangements

1. CCC has already constructed a museum with retail units on the area presently leased to it for a parking lot (which lease is now obsolete). CCC now wishes to complete the museum/theatre complex by constructing a theatre.

2. The Original Leases may no longer have effect because they are leases of portions of Parcel C and the BC Court of Appeal decided, a few years ago, that such leases were generally not valid.

Accepting the surrender of the Original Leases (even though they may be technically invalid) and granting CCC new leases of the Buildings, an agreement to lease for the theatre (which will become a lease), and an easement, will permit the City and CCC to validate and regularize their landlord/tenant relationship.

CCC has requested two leases for all their buildings. Staff recommend those leases and an easement over the Easement Area on the following terms:

two leases for the Buildings presently used by CCC and an agreement to lease an area adjacent to the easterly building to permit construction of a theatre by CCC (Upon completion of the theatre, City staff will modify the lease for the easterly building to include it in the lease);

an easement agreement for the Easement Area as shown on Appendix B;

rent is to be nominal except for the commercial areas of the Buildings, which will be 11% of gross revenues plus property taxes as if levied, or a grant in lieu of property taxes;

other terms and conditions and the form of the leases, agreement to lease, and easement are to be to the satisfaction of the Director of Real Estate Services, the General Manager of Engineering Services and the Director of Legal Services.

ENCROACHMENTS

A number of roof level encroachments and other minor architectural features on and related to the Buildings encroach onto City streets. The City would normally enter a standard encroachment agreement with the land owner to validate these encroachments. Here, though, the City is the underlying land owner. As a result, the normal encroachment agreement provisions will be addressed in the new leases. Further, because CCC is a significant public amenity, and because the annual building rental is nominal (except for the areas used for commercial purposes), it is reasonable to allow the encroachments to exist for the lesser of the life of the Buildings or the term of the leases, and to exempt CCC from any additional fees that would normally be required under the Encroachment By-law.

 

CONCLUSION

This report recommends arrangements that will properly define the boundary of CCC and the Park and update the legal documents and Council designations to reflect the current situation. Approval of the recommendations will resolve a long standing anomaly with regard to responsibilities for various portions of Parcel C occupied by CCC and the Dr. Sun Yat-Sen Park.

* * * * *

 

APPENDIX C

 

SUMMARY OF LEASES

LEASE

TERM

RENTAL

USE
I. 04/15/1979 to 04/14/2039

April 15, 1979 - April 14, 2039

$1.00 p.a.

Community Centre for cultural educational, artistic recreational & social purposes
II 03/15/1980 to 03/14/2040

March 15, 1980 - March 14, 2040

Basic rent equivalent to 11% of gross revenue plus property taxes as if levied

Commercial building for commercial and business activities
III 06/28/1985 to 03/14/2039

June 28, 1985 - March 14, 2039

$1.00 p.a.

Multipurpose hall for cultural, educational, artistic recreational, charitable, and social purposes
IV 06/28/1985 to 04/14/2039

June 28, 1985 - April 14, 2039

Basic rent equivalent to 11% of gross revenue

Surface parking for 44 parking vehicles

 

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