REPORT TO COUNCIL

STANDING COMMITTEE OF COUNCIL
ON CITY SERVICES AND BUDGETS

SEPTEMBER 20, 2001

A Regular Meeting of the Standing Committee of Council on City Services and Budgets was held on Thursday, September 20, 2001, at 9:30 a.m., in the Council Chamber, Third Floor, City Hall.

PRESENT:	Councillor Jennifer Clarke, Vice-Chair Mayor Philip Owen Councillor Fred Bass Councillor Lynne Kennedy Councillor Daniel Lee Councillor Don Lee Councillor Tim Louis Councillor Sandy McCormick Councillor Gordon Price *Councillor George Puil, Chair (Civic Business for Item 1) Councillor Sam Sullivan
CITY MANAGER'S OFFICE:	Judy Rogers, City Manager Brent MacGregor, Deputy City Manager
CITY CLERK'S OFFICE:	Lori Isfeld, Meeting Coordinator

*denotes presence for a portion of the meeting.

ADOPTION OF MINUTES

The Minutes of the Standing Committee on City Services and Budgets meeting of August 2, 2001, were adopted.

RECOMMENDATION

1. Vancouver Convention and Exhibition Centre Expansion - Pre-rezoning Design Review (File 6007)

The Committee had before it a Policy Report dated September 12, 2001, in which the Director of Current Planning in consultation with the Director of the Office of Cultural Affairs, General Manager of Park Board, and General Manager of Engineering Services outlined the status of pre-rezoning design discussions related to the proposed expansion of convention and exhibition facilities on site at Burrard Landing. The General Manager of Community Services recommended approval.

Rob Jenkins, Assistant Director, Current Planning Initiatives Branch, with the aid of display boards, provided an overview of the site context map and current design submitted by the proponent team. Mr. Jenkins also reviewed key issues and responded to questions related to the waterfront walkway, plaza and Canada Place Way elevation and views, Arts Complex, parking, loading, and other infrastructure elements that require further resolution.

Janis Ostling, President and CEO, BC Pavilion Corporation (PAVCO), and Verne Janzen, Project Manager, Pacific Liaicon and Associates Inc., spoke in support of the pre-rezoning design, concurred with the staff analysis contained in the report, and noted that expansion is necessary to accommodate trade shows and become competitive in the worldwide market.

MOVED by Mayor Owen
THAT the Committee recommend to Council

THAT Council receive the Policy Report dated September 12, 2001, entitled "Vancouver Convention and Exhibition Centre Expansion - Pre-rezoning Design Review", for information.

CARRIED UNANIMOUSLY
(Councillor Puil absent for the vote)

2. Expanding the Vancouver Convention and Exhibition Centre - Financial Assessment of the October 2000 Business Plan (File 6007)

The Committee had before it an Administrative Report dated September 18, 2001, in which the City Manager, in consultation with the Director of Finance, summarized the financial aspects of the expansion proposal, assessed the implications of the proposed funding structure on the City of Vancouver, and proposed potential options including limited City participation in the financing of the project. The City Manager recommended approval.

Brent MacGregor, Deputy City Manager, reviewed the report, and with Estelle Lo, General Manager of Corporate Services/Director of Finance, and Ken Bayne, Director of Financial Planning and Treasury, responded to questions regarding funding and costs to taxpayers. Mr. MacGregor noted the financial benefits and increased employment that would result from the expansion, and pointed out the program would not go forward until federal and provincial support had been attained.

Peter Armstrong, Chair, Convention Centre Expansion Task Force, and Larry Belsito, Incoming Chair, Vancouver Hotel Association, spoke in support of the recommendations. Comments included:

· marketing plan and budget has been established;
· hotel tax will not be used;
· expansion would result in many benefits to the City and waterfront area, including construction of a civic plaza and completion of the seawall;
· new resources are needed to increase hotel occupancy which has been declining in the past couple of years.

MOVED by Councillor Louis
THAT the Committee recommend to Council

THAT the Administrative Report dated September 18, 2001 entitled "Expanding the Vancouver Convention and Exhibition Centre - Financial Assessment of the October 2000 Business Plan" be deferred to the next Standing Committee on City Services and Budgets meeting.

LOST
(Councillors Clarke, Kennedy, Daniel Lee, Don Lee, McCormick, Price, Puil, Sullivan and the Mayor opposed)

MOVED by Mayor Owen
THAT the Committee recommend to Council

A. THAT Council support the general concept, subject to City of Vancouver approvals through rezoning and subsequent approval processes, of an expansion to and renovation of the existing Vancouver Convention and Exhibition Centre (VCEC), to the west of the existing facility as described in the October 2000 business plan authored by the Vancouver Convention Centre Expansion Task Force.

B(i). THAT Council direct staff to notify the federal and provincial governments and the Vancouver Convention Centre Expansion Task Force that the City is prepared to make a financial contribution to the proposed project in the form of an exemption from annual municipal property taxes to the convention centre portion of the complex;

and

B(ii). THAT Council direct staff to notify the federal and provincial governments and the Vancouver Convention Centre Expansion Task Force that the commercial portions of the property such as parking, retail and marina operations will not be exempted from annual municipal property taxes.

C. THAT Council direct staff to notify the federal and provincial governments and the Vancouver Convention Centre Expansion Task Force that the expanded convention centre will be subject to full development related costs, including Development Cost Levies, development and building permit fees and ongoing utility and licence fees that are associated with the project.

D. THAT Council instruct the City Manager to meet with staff from the federal and provincial governments and the Convention Centre Expansion Task Force to review the options for funding the expansion, including those outlined in this report, and to report back to Council on the impacts of these options on the project, on the City and on the marketing of tourism activity in the City.

CARRIED
(Councillors Bass and Louis opposed)

3. False Creek Leaseholders (File 8206)

The Committee had before it a Policy Report dated September 10, 2001, in which the City Manager, in consultation with the Directors of Real Estate and Legal Services, provided information on the history and present status of the False Creek leases.

Brent MacGregor, Deputy City Engineer, reviewed the report, responded to questions, and noted its purpose was to provide background and give leaseholders an opportunity to address Council.

The following spoke in opposition to the City's lease prepayment amounts and rent increases:

Arnold Armstrong (brief filed)
Nina Hughes (on behalf of Hugh Blackman, brief filed)
Robert Renger, Chair, FLAC (brief filed)
Michael Lebowitz (brief filed)
Bernadet Ratsoy
Evelyne Lazare (brief filed)
Guy Palmer
Henry Armstrong (brief filed)
Audrey Gill (petition filed)
Mervin Therriault
Anne Scarrow (on behalf of Peg Byars)
John Golka
Kristina Grant
Judy Chrastina, FLAC
Jeremy McCall
Louise Winton

The following is a summary of comments made by the foregoing speakers:

· request was made that leaseholders meet with representatives of the City to negotiate a fair settlement;
· request was made that failing successful negotiations, the City and leaseholders enter into binding arbitration;
· request was made that the City convert from leasehold to freehold;
· concern was expressed regarding the City not acting in good faith in the appraisal process;

· the City's estimated land values for the leasehold properties are inaccurate and do not reflect soil contamination;
· securing mortgages is increasingly difficult due to shorter lease life;
· concern was expressed regarding the possibility of being evicted at the end of the lease term;
· good neighbourhoods need stability; the uncertainty over soil contamination and the end of the lease term has a negative effect on the neighbourhood.

Graham Johnsen, Assistant Director of Legal Services, advised Council it would be appropriate to refer questions and discussion to a Council (In Camera) meeting.

MOVED by Councillor Louis
THAT the Committee recommend to Council

THAT Council instruct staff to negotiate with the South False Creek Leaseholders regarding prepayment, and if negotiations do not result in agreement by December 1, 2001, that the matter be referred to binding arbitration.

not put

MOVED by Councillor Puil
THAT the Committee recommend to Council

THAT further consideration of Councillor Louis' motion be deferred to a future Council (In Camera) meeting.

CARRIED
(Councillors Bass and Louis opposed)
(Mayor Owen absent for the vote)

The Committee adjourned at 1:17 p.m.

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CITY OF VANCOUVER

REGULAR COUNCIL MEETING MINUTES
STANDING COMMITTEE OF COUNCIL ON
CITY SERVICES AND BUDGETS

SEPTEMBER 20, 2001

A Regular Meeting of the Council of the City of Vancouver was held on Thursday, September 20, 2001, at 1:17 p.m., in the Council Chamber, Third Floor, City Hall, following the Standing Committee on City Services and Budgets meeting, to consider the recommendations of the Committee.

PRESENT:	Deputy Mayor Daniel Lee Councillor Fred Bass Councillor Jennifer Clarke Councillor Lynne Kennedy Councillor Don Lee Councillor Tim Louis Councillor Sandy McCormick Councillor Gordon Price Councillor George Puil Councillor Sam Sullivan
ABSENT:	Mayor Philip Owen (Civic Business)
CITY MANAGER'S OFFICE:	Judy Rogers, City Manager Brent MacGregor, Deputy City Manager
CITY CLERK'S OFFICE:	Lori Isfeld, Meeting Coordinator

COMMITTEE OF THE WHOLE

MOVED by Councillor McCormick
SECONDED by Councillor Don Lee

THAT this Council resolve itself into Committee of the Whole, Deputy Mayor Daniel Lee in the chair.

CARRIED UNANIMOUSLY

COMMITTEE REPORTS

Report of Standing Committee on City Services and Budgets
September 20, 2001

Council considered the recommendations of the Committee, as contained in the following clauses of the foregoing report:

Cl.1: Vancouver Convention and Exhibition Centre Expansion -

Pre-rezoning Design Review

Cl.2: Expanding the Vancouver Convention and Exhibition Centre - Financial Assessment of the October 2000 Business Plan
Cl.3: False Creek Leaseholders

Clause 1

MOVED by Councillor Clarke

THAT the recommendations of the Committee, as contained in Clause 1 of this report, be approved.

CARRIED UNANIMOUSLY

Clause 2

MOVED by Councillor Clarke

THAT the recommendations of the Committee, as contained in Clause 2 of this report, be approved.

CARRIED
(Councillors Bass and Louis opposed)

Clause 3

MOVED by Councillor Clarke

THAT the recommendations of the Committee, as contained in Clause 3 of this report, be approved.

CARRIED
(Councillors Bass and Louis opposed)

RISE FROM COMMITTEE OF THE WHOLE

MOVED by Councillor McCormick

THAT the Committee of the Whole rise and report.

CARRIED UNANIMOUSLY

ADOPT REPORT OF COMMITTEE OF THE WHOLE

MOVED by Councillor Don Lee
SECONDED by Councillor Sullivan

THAT the report of the Committee of the Whole be adopted.

CARRIED UNANIMOUSLY

The Council adjourned at 1:18 p.m.

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(c) 1998 City of Vancouver