ADMINISTRATIVE REPORT

Date: 9 July 2001
Author/Local: JHlavach/6448

RTS No. 02172

CC File No.

TO:	Vancouver City Council
FROM:	Director of Current Planning
SUBJECT:	55 Water Street (Malkin Building) Designation and Heritage Revitalization Agreement

RECOMMENDATION

A. THAT Council authorize the City to enter into a Heritage Revitalization Agreement to secure the conservation and rehabilitation of the Malkin Building at 55 Water Street and to supplement Development Application 405358, and the HA-2 zoning, by granting a density bonus of 5 648 m² (60,800 sq. ft.) to be transferred to site(s) in the Central Area;

AND THAT Council require a covenant providing that the density bonus not be available for transfer until the rehabilitation is complete, unless the owner secures completion of the rehabilitation by a separate agreement;

AND THAT Council require a covenant to safeguard the building until it is rehabilitated;

AND THAT the agreements shall be prepared, registered and given priority to the satisfaction of the Directors of Planning and Legal Services;

B. THAT Council amend Schedule A of the Heritage By-law to designate the Malkin Building 55 Water Street as a Municipal Heritage Building;

C. THAT the Director of Legal Services bring forth the by-laws to authorize the Heritage Revitalization Agreement and amend the Heritage By-law; and

D. THAT Council approve the key elements of a parking easement in favour of 55 Water Street over the Woodward's Parkade (100 Blocks Water and West Cordova)at market rates and otherwise as generally described in this report, such agreement to be to the satisfaction of the General Manager of Engineering Services and the Director of Legal Services.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services RECOMMENDS approval of A, B, C and D.

COUNCIL POLICY

The Transfer of Density Policy and Procedure allows for the transfer of density from heritage sites to receiver sites.

PURPOSE

The purpose of this report is to seek Council's support for a Heritage Revitalization Agreement (HRA) and Heritage By-law designation to secure the conservation and municipal protection of the "B" listed Malkin Building at 55 Water. The report also seeks to obtain Council's agreement on the key elements of an agreement whereby the City would lease parking spaces in the City-owned "Woodwards" parkade to the owner of 55 Water.

BACKGROUND

The Malkin Building at 55 Water Street, is located on Water Street between Carrall and Abbott Streets, as shown on the map in Appendix A. It is located in the Gastown Historic area, which is regulated under the HA-2 District Schedule. The owners of the building have applied under DE 405358 to change the use of the upper floors of the building from manufacturing to commercial live/work, and to construct new buildings on the vacant lots to the east and west. The application also details conservation work on the exterior of the heritage building, which includes replica wood windows on the south side of the Malkin Building and seismic upgrading. The size of the additions to the historic building, and the height of the new residential tower, are proposed to be limited. Appendix B contains selected drawings from the development permit application.

On February 17, 2000, City Council approved the building's eligibility for a heritage density bonus in the amount of 5 648 m² (60,800 sq. ft.). Council also agreed that the Central Area be considered an appropriate location for a receiver site(s). This amount of density bonus has been factored into other recent reports and correspondence with Council concerningproposed density bonuses and the density bank. The results of the consultant study on the heritage density bank will reported to Council at the same time as the Gastown Heritage Management Plan.

DISCUSSION

Heritage Value: The Malkin Building was designed by well known architects Parr and Fee, who were responsible for many commercial buildings in the city, including the Europe Hotel. The Malkin Building was constructed in two stages with the western half constructed in 1907 and the eastern half in 1911-1912. It was the third warehouse that was built for William Harold Malkin, all on Water Street, within eight years. The Malkin Building is considered to be a good example of the "Commercial" style with its heavy cornice, decorative coursing and medallions at the upper levels. The building is clad in red brick, with its original wooden windows on the upper floors. The storefront level has been changed to accommodate retail and a restaurant (The Spaghetti Factory). It is listed in the "B" category of the Vancouver Heritage Register.

Revitalization Agreement: The HRA, as recommended in this report, would achieve the following:

- secure the rehabilitation and continued maintenance of the exterior of the building;
- permit combined residential and commercial uses;
- limit the on-site density to that approved under the development permit;
- establish a heritage density bonus of 5 648 m² (60,800 sq. ft.) for transfer to site(s) within the Central Area; and
- permit the City to install a heritage plaque on the building.

The bonus amount is to compensate the owner for the costs of retaining and upgrading the heritage building and to limit the amount of density on-site to that authorized by Development Permit DE 405358. The Director of Real Estate Services advises that the proposed bonus amount is based on the amount of floor space being approved under development permit (noting that the Development Permit Board approved more floor space under a previous application) and extraordinary costs to conserve the heritage building. The owner is prepared to enter into the HRA and has agreed that the density bonus is adequate compensation for the municipal designation of the building and the obligations under the HRA.

Designation: The Malkin Building was designated, along with many other buildings in Gastown and Chinatown, by the Provincial Government in1971. The Province subsequentlydelegated its authority for alteration permits to the Director of Planning. Municipal designation will provide the benefit of having both the heritage protection and permitting authority at the municipal level.

Comments of the Gastown Historic Area Planning Committee: At its meeting on December 20, 2000 GHAPC agreed to support the development permit application.

Parking Agreement: In February 2000, City Council endorsed the "leasing, at market value, of parking spaces by the development at 65 Water in the City-owned parkade in the 100 Block Cordova and Water Street (the number of spaces being equivalent to 166 spaces minus the number of spaces provided for phases one and two of the 65 Water Street project.)" The following summarizes the main points contained in the draft agreement which is supported by staff and the property owner:

- a registered easement to park a maximum of 83 automobiles;
- parking rates to be the prevailing parkade rates, as determined from time to time;
- the City to be able to terminate the agreement if the parkade lands are redeveloped and public parking is not one of the principal uses of such redevelopment;
- the parking spaces would be available for occupants of both the Malkin Building and the new residential building to be constructed to the east; and
- the City to retain full control of the parkade.

The 83 spaces referred to in the draft agreement are not required by the conditions of the Development Permit, but are considered by the owner to be critical for the larger development's economic success. Should Council agree with the key elements described in this report, staff will proceed to execute the agreement.

Notification: In accordance with the Vancouver Charter Public Hearing provisions, a newspaper ad has been placed in two consecutive issues of a local newspaper.

CONCLUSION

The proposed Heritage Revitalization Agreement would compensate the owner for the extraordinary costs involved in the conservation of this "B" listed Gastown building, further contributing to this historic area's long term revitalization. Its long term protection would be secured through the approval of a transferrable density bonus. It is therefore recommended that Council authorize the HRA and municipally designate the building. Further, Council is asked to endorse the key elements of the proposed parking agreement.

* * * * *

General Mgr./Dept. Head:
Date:
This report has been prepared in consultation with the departments listed to the right, and they concur with its contents
Report dated:	9 July 2001
Author:	JHlavach
Phone:	6448
Concurring Departments:
Brian Sears, Real Estate Services
Joe Stubbs, Legal Services
Bob MacDonald, Engineering Services

F:\WPWIN\55waterHRA.wpd

APPENDIX A

SITE MAP SHOWING LOCATION OF THE MALKIN BUILDING
55 Water Street

APPENDIX B
Page 1 of 2

Proposed Elevation From the Development Permit Application

APPENDIX B
Page 2 of 2

Axonometric Drawing

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