Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO: Vancouver City Council

FROM: Director of the Housing Centre

SUBJECT: Lease Terms for the Lookout Shelter at 2088 Yukon Street

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Council policy is to acquire and lease sites for the development of non-market housing. Sites are leased to non-profit sponsors for 60 years at nominal rent or 75% of market value.

Council priorities for non-market housing are low-income families and seniors, residents of the downtown hotels and rooming houses, and the disabled who cannot afford market housing in the City. City has undertaken several initiatives to prevent homelessness, including development of new social housing and provision of community services.

On October 7, 1999, Council approved the 1999/2000 City-Provincial Housing Partnership Agreement which included this project.

On September 12, 2000, Council approved the rezoning application of the site from I-1 to CD-1, to permit 37 transition housing units and 37 shelter beds plus an emergency shelter capability.

On February 15, 2000, Council approved in camera the acquisition of 395-399 W. 5th Avenue at a total purchase price of $1,715,000 plus applicable taxes with funding for the acquisition and remediation costs to be provided by the Property Endowment Fund and to be reimbursed by the proceeds from the prepaid lease of the site.

On February 20, 2001, as part of the Vancouver Agreement: Homelessness Non-Market Housing Partnership, Council in camera approved a capital grant of $715,000 to Lookout Emergency Aid Society for the 5th and Yukon shelter and transition housing project, with the source of the funding to be the Affordable Housing Fund.

PURPOSE AND SUMMARY

The purpose of this report is to obtain Council approval of the terms of the ground lease of the City-owned 2088 Yukon Street to Lookout Emergency Aid Society for the development of a shelter and transition housing funded through B.C. Housing.

BACKGROUND

On November 27, 2000, the address of the site was changed from 395 W. 5th Avenue to 2088 Yukon Street.

The site is part of a larger parcel acquired by the City. The Manager of Real Estate Services has agreed that the value of this site is $915,000. The prepaid lease of $686,250 represents 75% of the market value.

This project is part of the 1999-2000 City/Province Non-Market Housing Partnership. Under the terms of that partnership, this site is to be leased to the sponsor for 60 years for the prepaid lease rent of equal to 75% of market land value. The project received a conditional unit allocation from BC Housing on October 15, 1999.

The project has progressed to the stage where the development permit will be issued within a month or so and the building permit is expected 4-6 weeks thereafter. A plan number will be assigned upon subdivision, which is expected shortly. Construction will begin in the summer with the expectation that the shelter and housing will be open in November 2001. B.C. Housing Executive Committee is poised to give final commitment to the project, subject to Council approval of lease terms.

THE SITE

The site is 99' x 122' with a total area of 12,078.4 sq. ft. There is a two-storey frame structure with an auto shop at the lower level and studio level and studio spaces at the upper level. Both the auto shop and residential tenants had moved out and the site is vacant and ready for building demolition and soil remediation. The City has retained a consultant to oversee the remediation work on site.

Appendix A (on file in the City Clerk's Office) shows the site.

THE PROJECT

The project is a four-storey plus basement building consisting of 37 units of second stage transition housing for low-income singles and couples living outside the Downtown Core.
Preference will be given to homeless people from the emergency shelter. The building will also provide 22 short-term beds and a multi-purpose space (for 15 to 20 people) to provide emergency accommodation for the homeless, as well as kitchen and dining facilities. There are 12 underground parking spaces which are accessed from the existing lane.

FUNDING OF THE PROJECT

B.C. Housing will provide on-going subsidies so that the project can accommodate the homeless who may have no income and no ability to pay rent or pay for services. The City will not provide any operating grants. The 5th and Yukon shelter would replace the Marpole temporary shelter to which the City has been giving an annual grant of $50,000. The grant of $715,000, approved by Council on Feb 20, 2001, represents the capitalized value of the $50,000 operating grant. The Federal Government, through HRDC's Supporting Community Planning Initiatives Program, will provide a grant of $2,000,000 towards the shelter component. Part of the grant would go toward the prepaid lease payment to the City. B.C. Housing will provide subsidies to pay for the housing and for the operation of the shelter. Vancouver Richmond Health Board will provide annual funding to Lookout for enhanced health and support services for high health risk populations, including assessment services, mediation management, outreach and linkages to community resources.

LEASE TERMS

The proposed lease terms are:

CONCLUSION

This project will provide shelter and transitional housing units for low income singles and couples living outside the downtown core. It is important that this project be completed and in operation for the 2000/2001 winter. The proposed lease terms are consistent with Council policy and City practices.

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