Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Director of Current Planning, in Consultation with the General Manager of Engineering Services

SUBJECT:

Blood Alley Consultant Study - Approval of Funding

 

RECOMMENDATIONS

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

In the 1970's, Council approved $115,000 to enlarge the lane to create Blood Alley and to fund the City's share for physical improvements to Blood Alley to facilitate its revitalization as an important public space in Gastown.

On July 28, 1998, Council confirmed principles to provide general guidance to actions and planning in the Downtown Eastside, Chinatown, Gastown and Strathcona, whichinclude encouraging legitimate commercial activity, improving conditions at the street level, improving existing SROs, reducing crime, and helping community people to find allies and seek a common future.

On September 21, 1999, Council approved a funding allocation of $2.5 million toward Downtown Eastside initiatives in the 2000-2002 Capital Plan with specific reference made to the provision of improvements to the public realm.

On December 14, 1999, Council approved the Terms of Reference for the Gastown Heritage Management Plan to develop policies and guidelines for conservation of the historic area and to provide incentives to promote the conservation of Gastown's heritage resources.

PURPOSE

This report seeks Council's approval to retain a consultant to develop an achievable concept plan and revitalization strategy for Blood Alley, including the renovation of adjacent commercial spaces with special reference to the Stanley/New Fountain Hotel at 23-51 West
Cordova Street. It also allows for a review of the implications of the proposed incentives in the Gastown Heritage Management Plan for Blood Alley and elsewhere in Gastown.

BACKGROUND

Significant public realm improvements were completed in Gastown during the mid 1970's as part of a strategy to conserve the area as a historic precinct. These included the brick andgranite pavement and planters as well as lighting treatment currently found in Blood Alley.
Initially, the ground floor commercial units in many of the buildings surrounding Blood Alley, including the Stanley/New Fountain Hotel were leased to commercial tenants that helped create an important and vibrant public space for Gastown and the city. In recent years it has become much more difficult to attract tenants and currently most of the commercial space is vacant or blocked off from the alley. As a result, Blood Alley has become largely abandoned and disused.

The Stanley and the New Fountain were constructed in 1907 as separate hotels. Both are listed in the "B" evaluation category on the Vancouver Heritage Register and provincially designated heritage sites as part of the Gastown heritage area. The buildings were connected internally when they were renovated in the early 1970's to accommodate 103 units of SRO rental housing. Many of these rooms are very small and the overall design is difficult to keep crime free. Several years ago, the hotel was significantly impacted by the illegal drug trade and the owner, Greater Vancouver Housing Corporation, was forced to evict many tenants and close most of the rooms.

In the early part of this year, the Hotel was purchased by the BC Housing Management Corporation and turned over to the Portland Hotel Society. The Society proposes to renovate the existing rooms to create 51 larger self-contained units and to make improvements to the exterior such as eliminating the arcade on Cordova Street. A development application is expected shortly and construction is anticipated to begin in January 2002. The preliminary design scheme for proposed alterations was supported by the Gastown Historic Area Planning Committee Design Review Subcommittee at their meeting on May 27, 2001.

The Portland Society operates several housing projects in and outside the area - with services targeted primarily to people who are or have been addicted to drugs. A number of Gastown stakeholders have expressed concern about whether this will make it more difficult to revitalize Blood Alley. However, the Portland Society has indicated that it is interested in working with others in the Gastown community to create a strong commercial presence in the building - with opportunities for private and non-profit owned businesses. Several nearby property owners and businesses have also expressed a desire to explore commercial opportunities.

DISCUSSION

In 1999, Council approved the Terms of Reference for the Gastown Heritage Management Plan to facilitate the revitalization of Gastown through the conservation of the area's heritage buildings and historic character. The plan proposes administrative and financial incentives to achieve these objectives and will be reported to City Council with recommendations for implementation in the autumn. A wide range of initiatives are currently underway toimprove the physical appearance and vitality of the area. In addition to the Stanley/New Fountain, many of these initiatives - renovation of the Malkin Building at 55 Water Street, development of the Lori Krill Housing Co-op and Parkade at 65 West Cordova Street, opening of the First Nations Creations artisan co-op at 20 Water Street, and an enquiry to rebuild on the Terminus Hotel site at 28 Water Street - either are adjacent to, or are within a block of Blood Alley.

Many Gastown stakeholders have indicated that restoring the vitality of Blood Alley - partly through public realm improvements and partly through strong commercial activity - can help kickstart the revitalization of the entire historic area.

A terms of reference for a study (see Appendix A) has been prepared to:

· develop a vision including a proposed mix of uses, physical concept plan and associated implementation strategy for the future of Blood Alley; and
· complete a market assessment and develop a strategy for the commercial units adjacent to Blood Alley, with special reference to the Stanley/New Fountain Hotel.

Preparation of a commercial strategy will enhance the viability of properties adjacent to Blood Alley and contribute to the objective of revitalizing Gastown. The proposed renovation of the Stanley/New Fountain is an excellent opportunity to begin implementing recommendations of this strategy immediately. The consultant study will include preparation of a preferred scheme for the commercial space in this building. The cost for implementing the changes on private property would be the responsibility of the property owner. Provision for funding to explore opportunities for collaboration amongst property owners to facilitate revitalization objectives has also been made. This could include assessing the feasibility of joint building projects. Property owners will benefit from the market analysis, evaluation of commercial opportunities and development of a vision for Blood Alley that are to be completed in the study.

Preliminary discussions regarding the study with adjacent owners have been favourable. They have indicted an interest in making Blood Alley a useable and inviting public space and integrating the ground floor spaces of adjacent buildings with Blood Alley. The revitalization of Blood Alley is also supported by the Police because it will enable more positive activities in the area. The improvements will help bring more people into the area for healthy and safe activities thereby assisting to discourage illegal activities in the alley.

A companion consultancy will allow for testing the proposed incentive program being developed as part of the Gastown Heritage Management Plan for sites adjacent to Blood Alley and elsewhere in Gastown.

FINANCIAL IMPLICATIONS

The 2000-2002 Capital Plan included $2.5 million as the City's contribution to projects associated with revitalization of the Downtown Eastside including Gastown. These funds are being allocated to the capital budget over the three years of the plan. In 2000, $315,000 was approved as part of the Capital Budget to encourage new businesses to locate along Hastings Street. The 2001 Capital Budget included an additional $1,985,000 for the area, with funding to specific projects subject to Council approval.

It is recommended that up to $70,000 be allocated from the 2001 Capital Budget for the Downtown Eastside for the Blood Alley Study and that up to $20,000 be approved for the companion study to test the Heritage Management Plan incentive package. Once the study has been concluded, staff will report back to Council if additional funds are required for implementation.

CONCLUSION

Completion of a consultant study to determine how Blood Alley can be brought back to life as a vibrant public space will be an important component in facilitating the economic and community revitalization of Gastown. This work will provide clear direction for improvements to create an active place for use by all members of the community. Several stakeholders have indicated that it may provide a unique opportunity for local business and low income organizations to work together toward a common objective.

- - - - -

APPENDIX A

Blood Alley Vision and Commercial Integration - Terms of Reference

This Terms of Reference provides the Scope of Work to be undertaken in support of the revitalization of Blood Alley and Trounce Alley (collectively referred to as Blood Alley). The intent of this work is to provide a realizable, realistic and constructive concept plan for Blood Alley, and a strategy for the redevelopment of commercial retail units, with special reference to those in the Stanley/New Fountain Hotel based on uses that are contextually complementary and economically sustainable.

This multi-tiered study will provide a comprehensive review of the vision and opportunities for Blood Alley, while concurrently undertaking a detailed economic market analysis for the commercial/retail units facing Blood Alley. The conclusions of the market study will be merged into the strategy for Blood Alley revitalization.

The goal of the study is to identify a revitalization strategy for Blood Alley based on a comprehensive vision recreating this space as a vibrant, economically viable precinct complementary to Gastown as well as the broader existing community. It is also expected to be an important focal point for implementing the Gastown Heritage Management Plan.

Architectural design and integration of the commercial space in adjacent buildings into the Blood Alley plan will be provided by a consultant team.

It is proposed that the general work related to the Blood Alley revitalization strategy and economic analysis be undertaken by a consultant team to include the following specialties:

The initial phase of the study will generate an objective vision of the potential future for Blood Alley. This will be generated by the consultant team.

These consultants would work directly with a core group of stakeholders:

A. Property Owners · immediately adjacent to the study area

B. City of Vancouver · Planning Department

The study shall also include public consultation in order to capture feedback and perspectives from the diverse opinions of the community. This would include at least two public meetings/forums, one at the inception and one at the time options are available for review. Consultation with community groups will also be required.

The conclusions of this study shall be utilized to establish guidelines and municipal policy for the use and development of Blood Alley. The consultants are encouraged to explore unique ideas and themes leading to the success of this public open space, while the market analysis shall drive the design and development of the commercial component for adjacent buildings. As the Stanley/New Fountain will be renovated and the commercial space in this building directly abuts Blood Alley, it is proposed to be used as a pilot to determine the optimum configuration of the commercial space. Several nearby building owners and businesses who may be prepared to proceed with renovations that would contribute to the revitalization of Blood Alley will also be considered for development of conceptual designs as part of this work. Design of the commercial units would be subject to the traditional necessary process for development approvals in the HA-2 development district.

Scope of Work

A. Blood Alley Context: Background/Market/Land Use

· Evaluate commercial opportunities within the broader community context of Gastown and the Downtown.

· Report on value and opportunity afforded by Blood Alley in the broader community.

· Assess implications of current development trends in the area.

· Map existing business/residential ownership/function in the immediate precinct.

· Evaluate potential themes for the character, use, and activity in Blood Alley, and establish a vision for the users of this space under the prescribed themes.

· Assess the implications, short and long term, of pedestrian movement and transportation within the adjacent communities - including potential pedestrian `traffic'.

· Evaluate commercial opportunities created by providing interfaces to Blood Alley, including the exterior space.

Landscape Planning & Architecture

· Evaluate the practicality, logistics, and function of Blood Alley in relationship to pedestrian and vehicular circulation, outdoor activities, waste disposal, delivery, parking access.

· Review with Engineering Services and utility providers all technical issues related to service provisions.

· Review with Engineering Services and Park Board issues related to maintenance and function of the public open space including street trees and planters.

· Review the role of Blood Alley in the broader context of the DTES, Gastown, Chinatown, Portside, and False Creek.

· Develop at least three alternative concepts for hard/soft landscape that facilitates and augments public use as well as the commercial priorities developed by the economic consultant.

· For the preferred option:

B. Commercial Space - Planning Configurations

The land use and market analysis will generate scenarios for potential commercial development in adjacent buildings. This part of the study will involve developing configurations which can be accommodated in existing buildings. Initially, the Stanley/New Fountain Hotel will be studied and concepts prepared for it as a major renovation to the building is currently being proposed. Preparation of conceptual designs/sketches for other buildings may also be considered if they contribute to the revitalization of Blood Alley. This will include:

· Evaluate the range of commercial configurations available including areas, layouts, front to back and vertical interconnections.

· Document alternative configurations and visions to use as part of a commercial marketing package for the commercial/retail units.

· Evaluate market rentals and lease structures regarding incentives, tenant fit-out cost and service requirements.

· Develop a preferred alternative to include sufficient information to support a Development Permit Application and full costing of the physical alternative and local improvements and demonstrate how it fits within the context of the preferred concept design for Blood Alley. Agreement from the property owner to implement the preferred scheme will be required prior to this step being completed.

In preparing these options, consideration should be given to the compatibility of proposed commercial uses with existing residential uses.

C. Public Consultation

· Hold a public information meeting or open house at the inception of study to generate ideas and a public event to present alternatives.

· Consult with community groups including the Gastown Business Improvement Society, Gastown Historic Area Planning Committee, Gastown Homeowners, Gastown Community Policing Office, Downtown Eastside Residents Association, Community Directions, Community Alliance.

· Meet with principle building owners (one on one) adjacent to Blood Alley to ascertain issues and priorities in the context of adjacent functions and aspirations.

· Report on value and opportunity afforded by the participation of, and interfacing with, adjacent properties.

D. Strategic Plan

· Establish and document a strategy to achieve the preferred concept design for Blood Alley and the commercial revitalization of the adjacent buildings.

· Indicate likely time lines and incremental changes in policy or to the physical public open space which are necessary to facilitate achievement of the vision.

· Identify infrastructure costs and expense time lines associated with the above.

· Suggest the necessary incentives required to encourage new partnerships, participation and stakeholder "buy-in" to the vision

E. Implementation

· Document potential economic performance as part of a marketing package to be used to solicit commercial tenancies.

· Document the study and recommendations including:

The proposed renovation of the Stanley/New Fountain provides a good opportunity to implement recommendations from this work. Therefore, complementary study paths will need to be established whereby the Stanley/New Fountain Hotel expedites its necessary design process, while integrating components of the Blood Alley vision into a detailed concept and marketing strategy for the commercial space therein. Likewise the Blood Alley vision and economic study shall proceed concurrently with the Stanley/New Fountain process, merging themes and economic strategies to create a comprehensive strategy for the precinct.

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