ADMINISTRATIVE REPORT

Date: May 30, 2002
Author/Local: Alice Yee/7180

RTS No. 2754

CC File No. 5104

Council: June 11, 2002

TO:	Vancouver City Council
FROM:	Director of Real Estate Services
SUBJECT:	#106 - 1202 East Pender Street - Lease to Strathcona Area Safety Society

RECOMMENDATION

A. THAT Council approve the lease of #106-1202 East Pender Street to the Strathcona Area Safety Society on the following terms and conditions:

(a) Rent: $1.00 per year of the term, prepaid:

(b) Term: 3 years commencing April 1, 2002.

(c) Use: community policing centre; and

(d) Such other terms and conditions as are acceptable to the Director of Real Estate Services and the Director of Legal Services, it being noted that no legal rights or obligations shall arise until execution of the lease.

CONSIDERATION

B. THAT Council approve a one-time-only grant of $3,000 to the Strathcona Area Safety Society to cover closing costs associated with this property prior to commencement of the lease. Source of funding is the Contingency Reserve.

GENERAL MANAGER'S COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of A and submits B for CONSIDERATION.

COUNCIL POLICY

Pursuant to Section 206(1)(a) of the Vancouver Charter, not less than two-thirds of all members of Council must approve a resolution for the making of a money grant to a charitable institution (lease of City property at less than market rent is considered a grant).

PURPOSE

The purpose of this report is to seek Council approval to lease the premises at #106-1202 East Pender Street, legally described as Strata Lot 6, District Lot 182, Group 1, New Westminster District, Strata Plan LMS3800 (see Appendix A), and Parking Space #24, Limited Common Property for Strata Lot 6 (see Appendix B), to Strathcona Area Safety Society for a community policing centre, for a nominal rent of $1.00 per annum.

BACKGROUND

In November, 2001, Council approved the owner's proposal to rezone the development,1220 East Pender Street from I-2 to CD-1. Two of the conditions of Council's approving this rezoning was for the owner transferring title to the City a 1,075 square foot strata retail unit, #106-1202 East Pender Street, to be used as a community policing centre, and 1 parking stall in the underground parkade. In addition to the premises and parking, the owner was required to finish and furnish the strata retail unit with a kitchen plus appliances, adequate heating, lighting, ventilation, all to the typical standard of market work/live units.

There are closing costs of $3,000 associated with this property that need to be dealt with prior to the start of the lease. The Strathcona Area Safety Society, as the tenant of 106 -1202 East Pender, are responsible for these costs, however, they don't have sufficient funds for this purpose. It is therefore recommended that the City provides a one-time-only $3,000 grant to the Society to cover these costs.

DISCUSSION

The owner, Eric Kolkstad, transferred ownership of Strata Lot 6, plus 1 underground parking stall to the City in March, 2002. Strathcona Area Safety Society, the current tenant of the premises, wishes to enter into a lease with the City for 3 years. It is estimated that the market rental rate for the premises occupied by the Strathcona Area Safety Society would be $9,600.00 per annum inclusive of taxes.

The Director of Real Estate Services recommends approval of a 3 year lease and also recommends the request for a grant in lieu of rent. The Directors of Social Planning and Financial Planning and Treasury submit the allocation of a one-time-only $3,000 grant to the Strathcona Area Safety Society for consideration.

Link to Appendices A and B

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(c) 1998 City of Vancouver