Agenda Index City of Vancouver

NOTICE OF MEETING

CITY OF VANCOUVER

COURT OF REVISION

Minutes of the meeting.

SPECIAL COUNCIL MEETING

AGENDA

ROLL CALL

1. MOTION FOR COUNCIL TO RESOLVE ITSELF INTO COURT OF REVISION

COURT OF REVISION

2. PROJECTS BY INITIATIVE

3. DELEGATIONS CONCERNING ERRORS

4. RISE AND REPORT (COURT OF REVISION)

COUNCIL

5. ADOPT THE REPORT OF THE COURT OF REVISION

6. COURT OF REVISION APPLICATIONS

7. ADJOURNMENT

* * * * *

M E M O R A N D U M January 31, 2002

TO:

Mayor Owen and Councillors

COPY TO:

Syd Baxter, City Clerk - Court of Revision
Judy Rogers, City Manager
Peter Vaisbord, BIA Coordinator

FROM:

Ann McAfee, Director of City Plans

SUBJECT:

Court of Revision Application - South Granville BIA Funding-Ceiling Increase

APPLICATION

On December 13 2001, Council considered the following Business Improvement Area (BIA) application:

Council referred the application to the Court of Revision for consideration as a Council Initiative.

ACTIONS

After reviewing letters of objection and hearing from delegations Council may choose to:

A. APPROVE THE APPLICATION

Section 4 of this memo outlines past practice with respect to approval of a BIA application. Council practice has been to approve the application if less than one-third of property owners or business tenants are in opposition. If Council wishes to approve the application, the following motions are appropriate:

B. NOT APPROVE THE APPLICATION

C. COUNCIL WISHES FURTHER INFORMATION

1. BACKGROUND

Sections 455 through 463 of the Vancouver Charter make provision for the creation, renewal and funding of Business Improvement Areas (BIAs). Taxation of properties in an area pays for a variety of programs to promote and enhance the area.

Before a BIA application can be approved, the proposal must be considered at a Court of Revision:

· Prior to the Court of Revision, the City notifies all property owners and business tenants of the Court of Revision Hearing, the proposed levy, and details on filing objections; and

· At the Court of Revision Council is advised of letters of opposition. Council also hears delegations. Council policy is that if one third of property owners, representing one third of the assessed property value, or business tenants, counted separately, object, the BIA proposal will be defeated.

· If approved, Council directs that the appropriate by-law (eg. to establish a new funding ceiling) be prepared.

Further explanation of the notification and Court of Revision process follows.

2. NOTIFICATION PROCESS

BIA applications are a form of local improvement. As such, the City is required to mail to the owners of parcels liable to be assessed notification of the project, the designated area, and estimated annual rate. The notification letter must be sent at least one month prior to the hearing. While the Charter does not require notification of tenants, it is City policy to notify business owners of a BIA proposal. Staff have notified property owners and business tenants in the area affected by the BIA proposal:

· Individually addressed letters were sent, postmarked on or before December 24, 2001, to all property owners affected by the BIA application.

· The City does not have a current record of all business owners in an area. Letters to business owners were hand delivered to all businesses affected by the BIA application.

3. LETTERS OF OPPOSITION

Property owners / business tenants who oppose the proposal were invited to either write to the City Clerk, with the letter being received by noon on January 30, 2002, or address Council directly at the Court of Revision.

Several questions emerged during the public process:

· What is a funding ceiling: When Council first establishes a BIA, it sets a 5-year term and a funding-ceiling (or cap) for the term. The funding-ceiling limits the total amount that can be levied for the BIA over the 5-year term. If the BIA wishes to exceed the funding ceiling, it must apply to Council, notify all of the affected businesses and property owners, and request the matter be referred to a Court of Revision.

· Will the proposal increase my (or my landlord's) annual BIA levy: The proposal significantly increases the total amount that may be levied over the 5-year term, but proposed annual levies for the last two years of the BIA's 5-year mandate would remain close to current levels. The actual levy amounts will be determined by the members at annual general meetings.

4. BASIS FOR COUNCIL ACTION

Under section 506 of the Vancouver Charter a "sufficient number" of notices of objection to defeat a Local Improvement Council Initiative is deemed to be more than one-half of the assessed property owners, representing more than one-half of the value according to the last revised real-property assessment roll, of the parcels liable to be assessed. However, Council guidelines apply a more stringent standard for BIAs.

Council policy with respect to BIA applications has been to identify the "sufficient number" of objections tobe either one-third of the assessed owners, representing at least one-third of the assessed value or one-third of the business tenants, counted separately. The one-third guideline has been used by Council to reflect the fact that Council initiatives require those who oppose an application to make the case that the levy is not desired. Typically, local improvements involve only a few owners, and in many cases have each petitioned to have the work done. This is not the case for a BIA application. For a large area, with many owners, the task of assembling sufficient opposition is difficult. For this reason, Council policy is to consider rejection if one-third, rather than one-half, of the owners or tenants oppose the application.

5. TABULATION OF RESULTS

Following this memo is a separate appendix for the proposed South Granville BIA funding-ceiling increase (Appendix A) which provides notification data for the application, and a tabulation of letters of opposition received as of January 30, 2002. The City Clerk will distribute copies of all objections received prior to the Court of Revision. As late objections or petitions could be received up to the date of the Council meeting, staff will distribute a supplementary memo with updated opposition data. Representatives from the applicant will be in attendance to respond to questions about the respective BIA proposals.

Ann McAfee
Director of City Plans

AMcA/PV/lmh
R:\CC\Meeting Coordinators\REPORTS\Court of Revision\2002\020205\agenda.wpd

Attachment
SOUTH GRANVILLE BIA

Application to increase funding-ceiling for current 5-year term (mid-term funding-ceiling increase)

On December 13 2001, Council considered an application by the South Granville Business Improvement Association (SGBIA) to increase the BIA funding-ceiling for its current five-year term ending March 31, 2004. The SGBIA wishes to increase the funding-ceiling from $880,000 to $1,440,000. Council referred the application to the Court of Revision for consideration as a Council Initiative.

The proposed 2002 BIA levy ranges from $301 to $51,625* annually, depending upon the assessed value of the property. About 18 properties will have a levy between $300 and $1,000, 80 properties will have a levy between $1,000 and $5,000, and 10 properties will be charged over $5,000 annually. There are no changes to the BIA boundary (Attachment A).

As the BIA levy will be based on the 2002 property assessment, the actual BIA levies may differ slightly from the estimates provided in the City's notification.

*Bentall Properties (`Chapters' development, Broadway and Granville).

Notification

Individually addressed letters (Attachment B) were sent, postmarked on or before December 24, 2001, to 88 property owners, owning 108 legal parcels located within the BIA boundaries. Three letters were returned because the owners had moved with no forwarding address or the property had recently changed ownership. All of these letters were subsequently re-sent by courier to the new addresses.

Letters (Attachment C) were hand delivered to all businesses within the BIA. Over 365 letters were delivered.

Letters of Opposition

As of noon, January 30 2002, no letters of objection had been received from property owners. One letter of objection (0.3% of total) was received from a tenant.

For information, should Council wish to apply the one-third guideline then:

· one-third of the number of assessed properties is 36 properties (subject to adjustments);
· since there are many multiple owners, one-third of the actual owners is 29 owners (subject to adjustments); and
· one-third of the assessed property value is in the order of $69,450,000.

Should the final number of owners or tenants indicating opposition approach the one-third guideline, Council may wish to consider denying the renewal application. As of January 30 2002, the number of owners/tenants opposing the proposal is almost nil. However, should Council receive, on February 5 2002, a petition or delegations indicating more wide spread opposition, then it will likely take some time to calculate whether the objections reflect one-third of the assessed property value. If this is the case, Council may wish to conclude the Court of Revision and have staff calculate the level of opposition. Recommendation C offers a way for staff to provide additional advice prior to Council deciding on the application.

CITY OF VANCOUVER
COMMUNITY SERVICES
Planning Department
City Plans

NOTICE OF INTENTION TO INCREASE FUNDING CEILING

December 14, 2001

Dear Property Owner(s):

I am writing to advise you that the Business Improvement Association (BIA) for your area is proposing to increase its five-year funding ceiling to continue to provide services for the balance of its 5-year term. The City's records indicate that you own property which is within the existing BIA. If the funding-ceiling increase is approved, a BIA levy will continue to be added to your property tax, at or near current levels, for 2002 and 2003. This letter contains information about the services a Business Improvement Area provides, the cost of the BIA levy, and your opportunity to tell the City whether you do or do not support the funding ceiling increase.

The City encourages Business Improvement Areas as a way for property and business owners to enhance services in their area. The City collects the BIA levy as part of the property taxes and turns all of the money over to the BIA to use. The BIAs use the funds for a variety of activities, providing banners and other identifying and promotional material, and enhancing safety. The BIA money is administered by a Board of Directors. The Board is comprised of building owners and business tenants who are elected by all owners and tenants in the area.

When your BIA was first approved, City Council established a 5-year term. As with other BIAs, Council also approved a five-year funding ceiling or cap. The funding ceiling limits the total amount of BIA funds that may be levied during the 5-year term. If the BIA wishes to raise that limit during its term, it must have special approval from Council.

Earlier in 2001, the BIA approached the City with a proposal to increase its 5-year funding-ceiling. The City requested the group discuss this proposal with owners and tenants in the proposed BIA area to assess support for the proposal. As requested, the BIA hosted an information meeting with businesses and property owners to discuss the funding-ceiling proposal. The majority of those in attendance at the meeting encouraged the group to proceed with the proposal.

In Summer 2001, your BIA notified all property owners and businesses of its AGM and the motion to increase the funding ceiling. At the AGM, the proposed funding-ceiling increase was approved, and the BIA approached the City with an application to increase its funding-ceiling.

However, before the funding increase can be approved and the levy applied, the proposal must be considered by City Council at a Court of Revision. On December 13 2001, Council instructed City staff to write all the property and business owners to determine the level of support for the BIA's proposal.

The attached materials provide information prepared by the BIA which describes their proposal and the services they offer. If you have questions about the proposed funding-ceiling increase, I encourage you to contact the BIA's Coordinator at the number provided in their material.

The BIA levy is calculated based on each owner's share of the total assessed value of properties in the BIA area. The amount for each owner varies because of different assessed values. The attached statement indicates the amount which would be assessed against your property in 2002. Over the program's lifespan, it is possible that your share of the BIA budget may change. Each property owner's share will be reapportioned annually according to the assessed values determined by the BC Assessment Authority.

After you have reviewed the material, if you support the proposed funding ceiling increase, you do not need to respond to this letter. However, if you wish to object, please submit your objection in the form of a letter to the City Clerk, Vancouver City Hall, 453 West 12th Avenue, Vancouver, BC, V5Y 1V4. Written objections against the proposal must be filed with the City Clerk before noon on Wednesday, January 30, 2002.

The Court of Revision will be held on Tuesday, February 5, 2002 at 7:30 p.m. in Council Chambers, 3rd floor, City Hall. At that time Council will hear from property owners and business tenants concerning the BIA proposal. Council will also review letters of support and objections. If you wish to speak, please call the City Clerk's office at (604) 873-7276 to register in advance. To register the day of the hearing, registration for the speakers list will start at 7:00 p.m. outside the Council Chambers.

Council's policy is that if 1/3 or more of the property or business owners are opposed, the funding increase will not proceed. A copy of the City-wide tax roll, which includes the names of property owners, is filed in the office of the Collector of Taxes, ground floor of City Hall, and is available for inspection during office hours.

Should the funding increase be approved by City Council, the BIA will still need to obtain approval of the program and budget from its membership on an annual basis (at its annual general meetings) before Council releases funds. If you wish further information about the City's role in the BIA process, please call me at (604) 871-6304.

Yours truly,

Peter Vaisbord
B.I.A. Coordinator
peter_vaisbord@city.vancouver.bc.ca
Phone: 604.871-6304

PV/lmh
R:\CC\Meeting Coordinators\REPORTS\Court of Revision\2002\020205\agenda.wpd

Enclosure(s)

CITY OF VANCOUVER
COMMUNITY SERVICES
Planning Department
City Plans

NOTICE OF INTENTION TO INCREASE FUNDING CEILING

December 14, 2001

Dear Business Owner:

I am writing to advise you that the Business Improvement Association (BIA) for your area is proposing to increase its five-year funding ceiling to continue to provide services for the balance of its 5-year term. If the funding-ceiling increase is approved, the BIA levy on property taxes in the area will be continued, at or near current levels, for 2002 and 2003. Since many lease agreements require that BIA levies be paid by the tenants, this letter provides information about the proposal, possible costs, and your opportunity to tell the City whether you do or do not support the BIA proposal. Because this letter is being mailed by postal walk, delivery may extend beyond the proposed boundaries. Before responding, please check the attached map to confirm that your business is within the BIA area.

The City encourages Business Improvement Areas as a way for property and business owners to enhance services in their area. The City collects the BIA levy as part of the property taxes and turns all of the money over to the BIA to use. The BIAs use the money for a variety of activities, such as providing banners and other identifying material, and enhancing safety. The BIA money is administered by a Board of Directors. The Board is comprised of building owners and business tenants who are elected by all owners and tenants in the area.

When your BIA was first approved, City Council established a 5-year term. As with other BIAs, Council also approved a five-year funding ceiling or cap. The funding ceiling limits the total amount of BIA funds that may be levied during the 5-year term. If the BIA wishes to raise that limit during its term, it must have special approval from Council.

Earlier in 2001, the BIA approached the City with a proposal to increase its 5-year funding-ceiling. The City requested the group discuss this proposal with owners and tenants in the proposed BIA area to assess support for the proposal. As requested, the BIA hosted an information meeting with businesses and property owners to discuss the funding-ceiling proposal. The majority of those in attendance at the meeting encouraged the group to proceed with the proposal.

In Summer 2001, your BIA notified all property owners and businesses of its AGM and the motion to increase the funding ceiling. At the AGM, the proposed funding-ceiling increase was approved, and the BIA approached the City with an application to increase its funding ceiling.

However, before the increase can be approved and the levy applied, the proposal must be considered by City Council at a Court of Revision. On December 13, 2001, Council instructed City staff to write all the property and business owners to determine the level of support for the BIA's proposal.

The attached materials provide information prepared by the BIA which describe their proposal and the services they offer. If you have questions about the BIA proposal, I encourage you to contact the BIA's Coordinator at the number provided in their material.

The amount of each property owner's levy varies because of different assessment values. City staff have mailed all property owners estimates of the proposed BIA levy. To determine how the proposed BIA levy increase could impact your business, I suggest that you discuss the matter with your landlord.

After you have reviewed the material, if you support the proposed funding ceiling increase, you do not need to respond to this letter. However, if you wish to object, please submit your objection in the form of a letter to the City Clerk, Vancouver City Hall, 453 West 12th Avenue, Vancouver, BC, V5Y 1V4. Written objections against the proposal must be filed with the City Clerk before noon on Wednesday January 30, 2002.

The Court of Revision will be held on Tuesday, February 5 2002, at 7:30 p.m. in Council Chambers, 3rd floor, City Hall. At that time, Council will hear from property owners and business tenants concerning the proposal. Council will also review letters of support and objections. If you wish to speak, please call the City Clerk's office at (604) 873-7276 to register in advance. To register the day of the hearing, registration for the speakers list will start at 7:00 p.m. outside the Council Chambers.

Council's policy is that if 1/3 or more of the property or business owners are opposed, the proposal will not proceed. A copy of the City-wide tax roll, which includes the names of property owners, is filed in the office of the Collector of Taxes, ground floor of City Hall, and is available for inspection during office hours.

Should the funding increase be approved by City Council, the BIA will still need to obtain approval of the program and budget from its membership on an annual basis (at its annual general meetings) before Council releases funds. If you wish further information about the City's role in the BIA process, please call me at (604) 871-6304.

Yours truly,

Peter Vaisbord
B.I.A. Coordinator
peter_vaisbord@city.vancouver.bc.ca
Phone: 604.871-6304

PV/lmh
R:\CC\Meeting Coordinators\REPORTS\Court of Revision\2002\020205\agenda.wpd

Enclosure(s)

IMPORTANT NOTICE FROM
THE CITY OF VANCOUVER
TO BUSINESS OWNERS

Comments or questions? You can send us email.
[City Homepage] [Get In Touch]

(c) 1998 City of Vancouver