ADMINISTRATIVE REPORT

Date: April 11, 2001
Author/Local: Yin Lee /7409

RTS No. 2019

CC File No. 5102

Council: May 8, 2001

TO:	Vancouver City Council
FROM:	Director of Real Estate Services
SUBJECT:	Sale of City-owned lot at 500 block Carrall Street

RECOMMENDATION

THAT Council accept an offer to purchase the City-owned lot at 500 block Carrall Streets, legally known as Lot A (see C19917L) of Lot 2 Block 17 D.L.541 Plan 854 (the "Lot"), from World Famous Building Corporation (the "Corporation") in the amount of $243,720.00 under the terms contained in the City's Offer to Purchase and this report.

The proceeds are to be credited to be PEF (Cost Centre 80040 and Cost Element 490700).

GENERAL MANAGER'S COMMENTS

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

COUNCIL POLICY

The Vancouver Charter Section 190(b) authorized City Council to dispose of City-owned property deemed to be surplus to the City's needs.

PURPOSE

The purpose of this report is to seek Council's approval to accept the offer from the Corporation to purchase the Lot at $243,720.00 and under the terms contained in the City's Offer to Purchase.

BACKGROUND

The City acquired the vacant Lot ( see Appendix A), in February, 1977. The zoning of the Lot is HA-1, Chinatown; the shape is irregular and the size is approximately 6.22m x 33.06m (20.42 ft. x 108.4 ft). Both the depth and width of the Lot are smaller than the norm of 7.62m (25 ft.) x 36.58m (120 ft.) in the area. The brick wall and the footing of the building to the south encroach onto the Lot by approximately 0.49m (1.6 ft.). Staff have rented the Lot to the adjacent owner to the north, the Kong Chow Benevolent Association of Canada (the "Association"), for use with their parking lot.

In late 1995, staff invited the adjacent owners to both sides of the Lot, the Kong Chow Benevolent Association of Canada and the Lim Sai Hor (Kow Mock) Benevolent Association, to bid for the Lot to be consolidated with their own. After two rounds of low offers, staff advertised the Lot for sale to the public in June, 1996. No acceptable offers were received.

In July 1999, Council, after receiving offers of $155,000 from the Association, and $203,100 from the Corporation, decided to not sell the property at that time.

PRESENT SITUATION

Both parties are still interested in acquiring the Lot. Since the development in the adjacent Block 17 is well under way and the Lot is surplus to the City, staff advertised the Lot for sale by public tender, in late March, 2001. The tender closed April 4, 2001, and the following offers were received:

World Famous Building Corporation $243,720
Kong Chow Benevolent Association of Canada $155,000

The Director of Real Estate Services recommends Council accept the bid of $243,720 from World Famous Building Corporation, at it meets or exceeds the market value of the subject property.

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(c) 1998 City of Vancouver