ADMINISTRATIVE REPORT

Date: February 21, 2001
Author/Local: J. Scholtz/7848

RTS No. 1870

CC File No. 5104

Council: March 13, 2001

TO:	Vancouver City Council
FROM:	Director of the Housing Centre
SUBJECT:	Proposed Lease Terms - 1254 East 8th Avenue

RECOMMENDATION

THAT the City, subject to Project Commitment from BC Housing, grant a lease to Lu'ma Native Housing Society with the Standard Charge Terms registered in the Land Title Office under number ST941002 and on the following specific terms and conditions:

1. a term of 60 years;
2. a prepaid lease rent of $880,050;
3. commencement date being 180 days from the date of Council approval of the lease terms or at such later date as may be approved by the City Manager;
4. the City may cancel the lease if construction has not commenced within 12 months of the date of commencement of the lease;
5. such further and other terms as are acceptable to the Director of the Housing Centre, the Director of Real Estate Services and the Director of Legal Services; and

6. that no legal rights or obligations are hereby created and none shall arise hereafter except upon signing of all of the agreements by all parties.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

It is City practice to purchase sites and lease them to non-profit housing societies or co-operative associations for 60 years at a pre-paid rent of 75% of freehold market value.

PURPOSE

This report requests Council's authorization to approve lease terms for the proposed non-market housing project.

THE SITE

The site is legally referenced as PID: 024-931-853 Parcel J, Block 113, District Lot 264A, Group 1, New Westminster District Plan LMP 48502 and is located on the southwest corner of 8^th Avenue and Clark Drive, as indicated below:

Figure 1

The site was purchased by the City as part of the left-turn bay project at Clark and Broadway. The left turn project is complete and the remaining site can now be sold or leased for redevelopment. It is zoned RM-4N, which permits medium density residential development. Total site area is 17,256 square feet and demolition has occurred.

THE PROJECT

The Lu'ma Native Housing Society, a non-profit society registered in the Province of British Columbia, is proposing to build 22 apartment units for both families and singles in core-need. The proposal is to build eight 2-bed, seven 3-bed, five 1-bed units, as well as one each of the studio and 4-bed types. This elevatored building will also provide twenty-two underground parking stalls. Residents will be income-tested. It is expected that the project, which will front onto 8^th Avenue, will conform to the current RM-4N zoning.

This project would be the eighteenth for the Society in the City. Many of these are located in the general vicinity of this site and the Society's applicants prefer this location.

A stage one environmental assessment report on file states there is no concern for soil remediation.

PROJECT FUNDING

The Manager of the Housing Centre recommends a basic rent of $880,050 for a 60-year lease. This is 75% of $1,173,400, the price for the site, which the Director of Real Estate advises is current freehold market value. Project funding is by BC Housing and a letter for provisional project approval is on file. The budget can support this prepayment.

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(c) 1998 City of Vancouver