ADMINISTRATIVE REPORT

Date: Nov. 27, 2000
Author/Local: S. Harvey/6001

RTS No. 01780

CC File No. 1203

Council: December 5, 2000

TO:	City Council
FROM:	City Manager
SUBJECT:	Robson Square - Memorandum of Understanding

RECOMMENDATION

THAT Council authorize the City to enter into a Memorandum of Understanding among British Columbia Building Corporation, the Vancouver Art Gallery and the City, to facilitate the coordinated planning of Robson Square as outlined in this report, and that the Director of Legal Services execute the Memorandum of Understanding once it is satisfactory to her.

GENERAL MANAGER'S COMMENTS

The City Manager RECOMMENDS approval.

COUNCIL POLICY

There is no applicable Council policy.

PURPOSE

This report seeks Council's authorization to execute a tri-partite memorandum of understanding among British Columbia Building Corporation (BCBC), the Vancouver Art Gallery (VAG) and the City which sets out a process of coordinated planning for future development at Robson Square.

BACKGROUND

British Columbia Building Corporation (BCBC) is the owner of Blocks 51, 61 and 71, known as Robson Square. In October of 1980, BCBC leased Block 51, for 99 years, to the City of Vancouver as premises for the Vancouver Art Gallery. The City and VAG are negotiating a sub-lease from the City to the VAG.

Agreements in place have permitted BCBC to construct, lease and occupy subterranean portions of Robson Street (lands owned by the City) between Block 51 and Block 61. BCBC has also developed areas that extend, at levels below grade, into Block 51, an area currently occupied by the Robson Square Media Centre. BCBC is negotiating a lease of portions of the premises currently occupied by the Robson Square Media Centre with the University of British Columbia.

DISCUSSION

BCBC has made known its intention to make a rezoning application to the City of Vancouver to redevelop portions of Block 61 and 51. The Vancouver Art Gallery has made known its intention to explore renovation and expansion options for the Gallery on Block 51 in the context of a long range strategic plan.

The Memorandum of Understanding (MOU) sets out a process for planning which will allow BCBC to move ahead with its plans to develop portions of Block 61 and certain below-grade areas on Block 51, subject to all of the necessary approvals and permits.

The MOU also provides for a period of four years during which the Vancouver Art Gallery may explore expansion opportunities within the context of their long range plan and operational planning.

The MOU does not bind the City to any future development proposals by either BCBC or the VAG nor does it restrict City Council in any way from exercising all of its powers related to land use.

CONCLUSION

Staff recommend the execution of the MOU which sets out clear parameters for the coordinated planning of Robson Square.

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MEMORANDUM OF UNDERSTANDING between British Columbia Buildings Corporation and The City of Vancouver and The Vancouver Art Gallery

Purpose The purpose of this memorandum is to define a functional relationship between the City of Vancouver (City), the Vancouver Art Gallery (VAG), and British Columbia Buildings Corporation (BCBC), that facilitates coordinated planning and integrated phased development of both BCBC's Robson Square Revitalization project and anticipated VAG expansion.

All three parties to this Memorandum recognize the importance of Robson Square and the Vancouver Art Gallery as unique public amenities located in the centre of downtown Vancouver. The parties support a coordinated approach to planning and integrated phased development to enhance the public interest while allowing for development of new structures able to serve the respective needs of the parties and the public.

Conditions Precedent BCBC is the owner of several parcels of land in downtown Vancouver described as Blocks 51, 61 and 71, and collectively known as Robson Square (see Appendix I).

In October of 1980, BCBC leased Block 51, for 99 years, to the City of Vancouver as premises for the Vancouver Art Gallery.
The Vancouver Art Gallery "Court House" building and "Annex" building are both municipally designated "A" heritage structures. The Law Courts complex is a landmark structure noted for the quality of its architecture and urban design;

Agreements in place have permitted BCBC to construct, lease and occupy subterranean portions of Robson Street (lands owned by the City) between Block 51 and Block 61. Also, BCBC has developed areas that extend, at levels below grade, into Block 51.

Agreements are in place to provide for servicing, access and rights of way over certain portions of Block 51 and 61;

BCBC has made known its intention to make a rezoning application to the City of Vancouver to redevelop portions of Block 61.

The Vancouver Art Gallery, in conjunction with the City, has made known its intention to explore renovation and expansion options for the Gallery on Block 51 in the context of a long range strategic plan.

Facilitating Principles BCBC will confine its Robson Square Revitalization Project redevelopment to Block 61 (with the exception of those areas described on the attached plan labeled Appendix II) for a fixed time period while the expansion needs of the VAG on Block 51 are clarified.

The VAG and City will confine any contemplated Gallery expansion to Block 51 for a period of four years from the date of this memorandum. Notwithstanding this, BCBC will notify its development partners of the VAG's potential interest in utilizing up to 40,000 sq.ft. in space currently occupied or leased by BCBC in Blocks 51 and/or 61, to accommodate the VAG's future expansion plans as they become defined;

BCBC recognizes that gallery expansion may include related retail, food and beverage facilities, rental facilities and other ancillary uses.

In the event that a VAG expansion plan has not been presented to BCBC for approval within four years of the date of this memorandum, BCBC may make further proposals to the City to redevelop areas within Block 51, however, such proposals shall not derogate from any City rights.

The VAG and City acknowledge that BCBC has allowed third parties to occupy premises which extend into Block 51, and that BCBC charges rent to such third parties for the use of those premises.

Nothing in this Memorandum of Understanding will restrict the City Council in any way from exercising all their powers related to land use.

BCBC will go through the City rezoning process and intends to apply for all City development, building, and occupancy permits as defined under City legislation.

BCBC, the VAG and City recognize that coordinated phased planning of the Robson Square Revitalization Project and VAG renovation and expansion is in the best interest of all parties.

BCBC and the City acknowledge that, subsequent to a rezoning permitting BCBC's Robson Square Revitalization Project to proceed, it is the intention of both parties to amend the Block 51 lease and any agreements in place affecting the use of subterranean portions of Robson Street Block 51 and Block 61, to make them in accord with the BCBC rezoning.

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(c) 1998 City of Vancouver