ADMINISTRATIVE REPORT

Date: April 10, 2002
Author/Local: R. Whitlock/7432

RTS No. 2587

CC File No. 5104

Council: April 23, 2002

TO:	Vancouver City Council
FROM:	Director of the Housing Centre, in consultation with the Director of Real Estate Services
SUBJECT:	Lease Terms for Dr. Peter Centre (1110 Comox Street)

RECOMMENDATION

THAT Council approve the ground lease for 1110 Comox Street (Lot H, Block 23, DL 185, Plan LMP50733) to the Dr. Peter AIDS Foundation Housing and Consulting Society for 60 years at a nominal rent and in accordance with the terms and conditions described in this report, as well as other terms and conditions satisfactory to the Director of the Housing Centre, the Director of Real Estate Services and the Director of Legal Services.

(The grant implied by nominal rent, equivalent to $1,586,000, was previously approved by Council unanimously and by the required majority at their meeting of November 2, 1999).

THAT no legal rights or obligations are hereby created and none shall arise hereafter except upon execution of all legal documents required to complete these transactions to the satisfaction of the Director of Legal Services.

GENERAL MANAGER'S COMMENTS

The General Managers of Community Services and Corporate Services recommend approval of the foregoing recommendation.

COUNCIL POLICY

Council's priorities for social housing are to maintain and expand housing opportunities in Vancouver for low and modest income households with priority being given to families with children; seniors on fixed incomes or in need of support; SRO residents; and the mentally ill, physically disabled, and others at risk of homelessness.

On April 2, 1996, Council resolved that Mole Hill lands be recognized as a City resource and that the land not be sold in whole or in part and that leasehold arrangements can be considered.

On June 3, 1997, in further consideration of policies for Mole Hill, Council resolved unanimously:

"THAT Council reserve for one year all of Lot 1, Block 23, D.L. 185 and the rear 13.85 metres of the west and east half of Lot 2 Block 23, D.L. 185 as shown on Appendix A of the Administrative Report dated May 26, 1997, for the Dr. Peter Centre Project, recognizing this is a maximum area and the Centre may only require Lot 1 once funding, programming, and massing have been finalized."

On November 2, 1999, Council gave approval to the partnership between the City, B.C. Housing, the Vancouver/Richmond Health Board (now the Vancouver Coastal Health Authority), the Mole Hill Community Housing Society and the Dr. Peter AIDS Foundation to renovate and redevelop Mole Hill as set out in the Memorandum of Understanding attached to the report. The resolution received the necessary eight votes of Council for the grant consideration portion of the commitment.

PURPOSE AND SUMMARY

The purpose of this report is to obtain Council approval of the terms of the ground lease of the City-owned property at 1110 Comox Street to the Dr. Peter AIDS Foundation Housing and Consulting Society.

BACKGROUND

The Dr. Peter AIDS Foundation was formed by the late Dr. Peter Jepson-Young before his death in 1992 to provide comfort and care for people with Aids. The present Dr. Peter Centre, temporarily located in St. Paul's Hospital Comox Building planned for demolition, provides a day program and 10 residential rooms for people living with HIV/AIDS. The Centre provides unique support services to those facing life-threatening health deterioration.

The Ministry of Health provides the funding to cover the staff cost of operating the day program and the Vancouver Coastal Health Authority (VCHA) funds the staffing of the current 10-person residence. VCHA has advised the Dr. Peter AIDS Foundation that it anticipates staff funding to accommodate an additional 14 residents will be available by the time the new Centre is scheduled to open.

The Ministry of Health will provide an estimated $3,600,000 in capital funding for the dayprogram and the residential rooms. B.C. Housing will provide an estimated $2,488,000 in capital funding for the supportive housing units, and the on-going shelter subsidy necessary to ensure that tenants in those units pay no more than 30% of income for rent. The Foundation is contributing $1.622 million in capital funding. The Dr. Peter Centre was included in the Ministry of Health's 2000/2001 capital submission to Treasury Board.

B.C. Housing announced its conditional allocation of 22 supportive housing units on December 1, 1999. The project is one of several recently reviewed by the Provincial Government and was put on hold in late October 2001. On March 15, 2002, Premier Gordon Campbell, Minister of Community, Aboriginal and Women's Services George Abbott, and Mayor Philip Owen attended the announcement that the Dr. Peter Centre and six other projects in the City would be funded.

DISCUSSION

Site Description: The site is located on the south-west corner of Comox and Thurlow Streets, has a width of 30.18 m (99 ft.) and a depth of 39.924 m (131 ft.), for a total area of 1 204.9 m² (12,970 ft.²).

The easterly portion of the site is vacant, while the westerly portion is occupied by a 1906 wood-frame residential dwelling (1110 Comox Street).

Project Description: The existing heritage house at 1110 Comox will be renovated and occupied by the administrative services of the Foundation as well as some of the day program amenities. A four storey building consisting of day program on the first two floors and two floors of residential use above will be constructed on the balance of the site. The residential floor will include 22 supported living units for individuals with HIV/AIDS plus two short-stay respite rooms. Parking for 14 vehicles will be provided underground with access from the lane.

The residential studio suites are approximately 27.5 m² (296 ft.²) in size and designed for single occupancy. Each room contains a wheelchair accessible bathroom complete with a shower as well as a kitchen area containing a small fridge, sink and a microwave. Each level of the residential component will include an assisted therapeutic bathing room, a common dining/living space, a common kitchen, a staff workroom and meditation area, a laundry area and a small quiet/respite room. Each floor also has a common enclosed balcony and an exterior balcony. A ground level patio will be provided at the rear of the house at 1110 Comox Street.

Ground lease to Dr. Peter AIDS Foundation Housing and Consulting Society: The site will be leased to the Foundation in accordance with the standard terms and conditions agreed to between the City and B.C. Housing for social housing development.

1. Term of 60 years.
2. Prepaid lease rent will be nominal.
3. Lease to be signed within 180 days after Council approval, or such later date as may be approved by the City Manager.
4. Such further and other terms as are acceptable to the Director of the Housing Centre and the Director of Legal Services. No legal obligation shall arise or be created until execution of the lease to the satisfaction of the Director of Legal Services.

A letter on behalf of the Dr. Peter Foundation is attached to this report, outlining the status of funding commitments.

CONCLUSION

The Dr. Peter Centre will be an asset to the community at large and the City's housing portfolio by providing stable affordable housing for people living in the neighbourhood with HIV or AIDS. The Director of the Housing Centre recommends that Council approve the lease terms outlined in this report.

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(c) 1998 City of Vancouver