ADMINISTRATIVE REPORT
Date: March 19, 2002
Author/Local: M.G. Thomson/7328
RTS No. 02621
CC File Nos. 5807/3130
Council: April 23, 2002
TO:
Vancouver City Council
FROM:
General Manager of Engineering Services in consultation with the Director of Cultural Affairs
SUBJECT:
401 Burrard Street - Encroachment Agreement for Public Art
RECOMMENDATIONS
THAT Council authorize the Director of Legal Services to enter into an Encroachment Agreement on behalf of the City to allow for the installation and maintenance of Public Art and certain non-standard sidewalk treatments and landscaping on those portions of Burrard Street, Pender Street and Hastings Street as shown within the bold outline on the plan attached here-to as Appendix "A" and adjacent to 401 Burrard Street (legally described as P.I.D. 018-392-164 Lot 1, Block 1, District Lot 185, Plan LMP 11726) subject to the following terms and conditions:
1. The agreement to be drafted in general accordance with the Encroachment By-law No. 4243 except as described here-in;
2. The annual fee for the encroachments authorized under the Encroachment Agreement to be nil;
3. The City to have the right to terminate the Encroachment Agreement on one years notice but only upon the resolution of Council to terminate;
4. After completion of construction, the adjacent owner to supply an as-built drawing prepared by a B.C. Land Surveyor to the satisfaction of the General Manager of Engineering Services showing all encroachments. The Encroachment Agreement to be modified to reflect the area of encroachment as shown on the as-built;
5. The Encroachment Agreement shall obligate the adjacent owner to maintain, repair and replace the encroachments as necessary and at their cost;
6. The Encroachment Agreement to release and indemnify the City for liabilities and costs related to the presence of the encroachments to the satisfaction of the Director of Legal Services and the Director or Risk Management;
7. Such other terms, and conditions and as deemed necessary and required by the Director of Legal Services and the General Manager of Engineering Services;
8. No legal right or obligation shall be created and none shall arise hereafter, until the documents are executed by the parties thereto.
COUNCIL POLICY
There is no direct applicable Council Policy.
The Encroachment By-law No. 4243 governs the encroachment of private improvements onto City streets and lanes.
PURPOSE
The purpose of this report is to authorize the Director of Legal Services to enter into an agreement to validate the encroachment of "Public Art" and certain non-standard sidewalk treatment and landscaping onto portions of Burrard Street, Pender Street and Hastings Street adjacent to 401 Burrard Street.
BACKGROUND
In 1993, the owner of Lot 1, Block 1, District Lot 185, Plan LMP 11726 at 401 Burrard Street obtained a development permit under DE 211011 to build a 18 storey office tower.
The Development Permit Board had approved the application in November of 1991 subject to a number of conditions including the provision of Public Art. On July 30, 1993, Covenant BG 274048 and Statutory Right-of-Way BG 274049 were registered over Lot 1 to secure Public Art in the lobby of the building.
The Covenant allowed for certain Interior Public Space to be excluded from the maximum floor space available for the development. This area of approximately 3520 square feet was intended to house the Public Art. The Statutory Right-of-Way allowed for the public to have access to enjoy the art.
Due to a number of factors including a downturn in the Vancouver office market, construction did not commence in 1993.
In 2000, Canada Lands Company CLC Limited, the owner of Lot 1 started the process to proceed with construction under the 1993 development permit.
In the 7 years between a number of City initiatives had commenced and City priorities around transportation in the downtown core had changed. There is now a greater emphasis on pedestrians. As a result the right-hand turn lane from south bound Burrard Street to west bound Pender Street was found to be an impediment to safe pedestrian movement.
Discussions occurred in regards to the owner buying the surplus City road. These discussions were not fruitful because the extra land did not benefit the owner from a floor space ratio perspective.
The owner and the City would however benefit from an enlarged open plaza at the southeast corner of the site. The owner agreed to contribute 50% (approximately $50,000) towards the cost of rebuilding curbs, gutters, sidewalk and utility relocation, including difficult to accommodate trolley poles.
On August 11, 2000 the City Engineer agreed to such an arrangement and agreed to allow the owner to install non-standard sidewalk treatment subject to a standard Encroachment Agreement. A copy of that letter is attached as Appendix "C".
DISCUSSION
As the construction of the building proceeded and discussions on the form of Public Art occurred, it became increasingly clear that an "exterior space" for the Public Art was preferable to the originally contemplated interior space.
Staff are, outside of this report, making arrangements to deal with the matters related to the use of the additional floor space that will result from moving the Public Art from the previous interior location to an exterior space.
The Public Art component of the project as settled on is now proposed to lie partially on Lot 1 and partially on Burrard Street and Pender Street.
The Public Art consists of a series of 10" x 10" x 60 foot high steel columns arranged in such a way as to represent a scaled down version of the 5 elevator shafts in the building. The artwork cars will slide up and down the steel columns in coordination with the interior elevator cars. The mechanical works hatch for the Public Art will also be on the street.
The General Manager of Engineering Services has reviewed the request and is prepared to accept the Public Art and non-standard sidewalk treatment, including minor landscaping, subject to registration of an Encroachment Agreement. The area for the Public Art and non-standard sidewalk and minor landscaping to encroach onto City street is as shown hatched and within the heavy outline on the attached Appendix "A"and lies between the property lineand the new proposed curb line. A reduced copy of the current design plan is attached as Appendix "B.
An Encroachment Agreement of this type would not normally come before Council. However, two factors being the annual fee and the termination provisions result in this matter being brought to Council.
The Encroachment By-law does not contain a category for "Public Art". If deemed a structure the annual fee would be calculated at $115 for the first 150 square feet and $3 a square foot thereafter. We estimate this would be $625.00 annually, based on a 320 square foot area of encroachment.
However as this project creates public good and the owner has contributed to the realigned street curbs, gutter, and sidewalks to the tune of approximately $50,000, staff are recommending that the annual fee be nil.
The Encroachment By-law merely requires that there be termination provisions in the agreement. Typically this would be immediate termination with 6 months to remove the encroachment and the responsibility for termination would lie with the General Manager of Engineering Services as the custodian of the street and lane system. However, given the value of the Public Art ($600,000), the associated public good and the contribution to the realigned street system, staff believe that a one year notice of termination and only upon the resolution of Council is appropriate.
The agreement will contain release and indemnity provisions and other standard language relating to construction, maintenance, repair, replacement and removal, all to the satisfaction of the Director of Legal Services.
Once construction is completed, the owner will be required to survey the area of encroachments such that the Encroachment Agreement can be modified to reflect "as -built" conditions.
CONCLUSION
The General Manager of Engineering Services in consultation with the Director of Cultural Affairs recommends approval of the Recommendation and its subject conditions, thereby allowing the construction of Public Art and non-standard sidewalk treatments and landscaping on those portions of Burrard Street, Pender Street and Hastings Street shown within the heavy outline and hatched on the plan attached as Appendix "A".
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(c) 1998 City of Vancouver