ADMINISTRATIVE REPORT
Date: April 3, 2001
Author/Local: B. D. MacGregor/7627RTS No. 01785
CC File No. 2604
Council: April 10, 2001
TO:
Vancouver City Council
FROM:
The City Manager in consultation with the Director of Current Planning and General Manager of the Park Board
SUBJECT:
The Pagoda at 599 Columbia Street [Dr. Sun Yat-Sen Garden]:
DCLs and An UpdateRECOMMENDATION
A. THAT the Development Cost Levy to be received from the pagoda development at 599 Columbia Street be committed to on-site storm and sanitary connections plus twin wyes, to the amount of $9,542;
CONSIDERATION
If Council is not disposed to approve A above, the following alternative B, is put forward:
B. THAT Council approve a Capital Grant of $9,542 to the Dr. Sun Yat Sen Garden Society.
In addition, Council is asked to consider:
C. THAT Council approve an increase of $38,500 in the Park Board's global budget for maintenance and operation of the Pagoda once it is completed.
D. THAT Council approval, as noted in this report, be contingent on the General Manager of the Park Board, Director of Legal Services, and the City Manager being satisfied that funding and legal assurances are in place for the complete construction of the Pagoda.
COUNCIL POLICY
On October 21, 1999, Council resolved to support a development application for a pagoda at 599 Columbia Street, including the proposed height.
The Vancouver DCL District and By-law, effective January 28, 2000, applies to most of the city, including 599 Columbia Street.
PURPOSE
The purpose of this report is to recommend Council pay certain service costs for the Pagoda from collected DCLs, and ask Council to increase the Park Board budget to cover maintenance costs.
BACKGROUND
Development application approval has been received for construction of a seven storey pagoda structure to be located in the southeast corner of the Dr. Sun Yat-Sen Park and which is being donated by an anonymous donor to the City under the care and custody of the Park Board.
This report specifically addresses the required Development Cost Levy, which is $9,542. The Director of Current Planning provides two options:
A. Council authorize expenditure of the DCL collected from the development be committed to on-site storm and sanitary connections plus twin wyes, to the amount of $9,542; or
B. Council approve a Capital Grant of $9,542 to the Dr Sun Yat Sen Garden Society in response to this important donation.
In addition, Park Board staff note there will be on-going maintenance and operating costs in the amount of $38, 500 and recommend an increase in the Park Board's annual budget to offset these costs.
A brief outline of other issues related to the proposal is also provided for Council's information.
Proposal: The approved development application for the pagoda shows a total floor space of 365 m² (3,929 sq. ft.) and a height of seven storeys and 32.4 m (106 ft.) plus a decorative roof. The principal use, at grade, was to be a small restaurant/tea room. The remaining levels provided for a stairway and elevator core. Elevator access was to be available to the 6th level. The 6th and 7th levels provided observation areas. The structure is modelled after a 12th century pagoda situated in Chuan Zhou, Fujian Province in China, incorporating modernseismic standards with the use of steel and concrete, and other materials, such as tile, which will reflect the original building.
The anonymous donor for this project is now contemplating changing the restaurant to a gift shop, and eliminating the elevator due to costs. The implication of these changes is discussed later in the report..
Development Cost Levies (DCLs): Projected costs on the project have increased significantly and the donor has asked if the project could be exempt from DCLs; however, the City has no power to exempt the development from DCLs.
Planning staff have investigated three possible means of providing relief from DCLs:
1) The development will be required to provide storm and sanitary connections plus twin wyes at a total cost of $9,360. The development cost levy is $9,542. The Vancouver Charter provides the following partial description of a capital project that can be funded by DCLs [Section 523D (1)(a)]:
"(a) constructing, altering, expanding or replacing sewage, water, drainage and highway facilities...".
As the project is being developed on City-owned land and the full project development cost is being provided by an anonymous donor, Council could resolve to allocate the DCL funds to the on-site requirements. The unique elements of City-owned land and non-profit motivation should be sufficient to counter similar requests from private developers. It should be noted that the Park Board might look elsewhere for similar consideration on their projects. Legal Services is satisfied with this approach is acceptable.
This option is recommended because the funds involved would have to be paid in any event by the society, and a City funding source need not be identified.
2) Council could approve a capital grant to the garden society, in the amount of $9,542, to offset the DCL. The grant would be based on the relative public benefit of the specific proposal - the City gains a valuable cultural asset and the DCL is paid in full. This may be seen as a precedent by other non-profit organizations, such as community centre associations. Staff are not recommending this approach as there is no readily available source of funds for such a grant.
3) As the Dr. Sun Yat-Sen Garden is situated within the provincially-designated Chinatown Heritage district, staff investigated use of a heritage revitalization agreement under Section 592 of the Vancouver Charter to "vary or supplement" a DCL payment. Since staff are not confident of the legality of this approach, areconcerned about the precedent it would set and HRA's have not heretofore been applied to such a circumstance, the approach is not recommended.Elevator and Building Code Issues: There are a number of other relatively significant issues that need resolution. No decisions are needed from Council at this time, but the following commentary provides some insight into the extended discussion on this donation.
In response to a number of issues associated with the cost of providing and operating an elevator and concerns about the viability of a first floor restaurant, the donor is now rethinking the project such that the first floor may be changed to a gift shop and the elevator will be eliminated.
Instead of a programmatic feature in the garden, the concept has changed to a cultural icon or visual identity for the Garden which will not be accessible above the first level. The ground level will be accessible to the public and this will consist of washrooms and a large single room. The use of the latter remains undefined at this time but may include activity such as tai-chi. It is possible, but not planned at this time to include an elevator to the 5th floor. This would be subject to the construction costs coming in lower then currently expected and the donor being willing to pick up the additional costs (about $110,000) for an elevator. Staff have been advised that the donor is not willing to have other donors participating in this project to assist with this aspect of the project.
Maintenance and Operating Costs: Park Board staff comment as follows: "The management of the donated building would remain with the DR. Sun Yat-Sen Garden Society, although they are not willing to pick up the structural and exterior maintenance costs for the pagoda. They have requested that the Park Board/City pay the on-going maintenance and operating costs of the facility. The maintenance costs for the Pagoda are estimated to be $34,000 per annum. Operating costs including heat, light and janitorial are $4,500 per annum, for a combined total of $38,500. The possible later addition of an elevator would result in a higher cost.
The structure is an elaborate and intricate design creating many areas which are difficult to access for regular and periodic maintenance. While the Pagoda is to be constructed out of low maintenance materials (fibreglass, aluminum etc.), potential bird perching, high levels of contraction and expansion of the fibreglass and a need to have the Pagoda in good visual appearance contribute to a significant maintenance cost. These estimates are premised on the project delivering a WCB approved fall arrest system and procedures. Park Board staff are recommending that Park Board support for the project would be subject to City Council approving an additional $38,500 to the Park Board's global budget."
The estimated cost of the Pagoda has not been reviewed by staff and this must be done before construction begins. Legal obligations must be undertaken to ensure that the projectonce it has begun is finished to occupancy permit, at no cost to the City or Park Board. Therefore, the recommendations and consideration items in this report will require assurance that the project will be completed with donated monies.
CONCLUSION
Staff have reviewed and brought forward alternative approaches towards the payment of the DCL which is a mandatory payment. It is recommended that the DCL be utilized towards payment of sewer and sanitary connections.
Park Board staff recommend that Council increase the Park Board budget to cover the annual maintenance and operating costs of the Pagoda.
If Council agrees to provide funding as outlined in this report, then it must be contingent on further cost reviews by staff, including funding and legal assurances to complete construction of the Pagoda.
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