ADMINISTRATIVE REPORT

Date: June 11 , 2002
Author/Local: Bob Macdonald/7347

RTS No.02817

CC File Nos. 5102/8107

Council: June 25, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services, in consultation with the Director of Real Estate Services and Director of Facility Design and Management
SUBJECT:	Gastown Parkade - Demolition of 125 West Cordova Street Structure

RECOMMENDATION

THAT Council authorize the Director of Facility Design and Management to arrange for and enter into a contract for the demolition of the parking structure located at 125 West Cordova Street, and necessary site preparation including excavation. The cost is estimated not to exceed $3,300,000 with funds provided from the Parking Site Reserve.

GENERAL MANAGER'S COMMENTS

The General Manager of Engineering Services RECOMMENDS the foregoing.

COUNCIL POLICY

In 1998, Council adopted the Program of Strategic Actions for the Downtown Eastside, Gastown, Chinatown, Strathcona and Victory Square which included bringing legitimate business back to the area, reducing drug-related crime and improving conditions at the Street level. As part of this program, Council has approved in principle demolition of the Cordova parking structure and redevelopment of the site with a commercial use and parking.

PURPOSE

This report requests Council approval to demolish the 125 West Cordova parking structure, which is part of the Gastown Parkade.

BACKGROUND

The City is the owner of the Gastown Parkade (Water Street and Cordova Structures) which has 1405 parking spaces to serve the Gastown heritage area and any future development on the Woodwards store site.

On April 9, 2002 Council approved, in principle, the redevelopment of the Water Street parkade structure and the demolition and reconstruction of the Cordova Parkade structure. This included the possible demolition of the Cordova structure prior to any addition of space to the Water Street structure to meet timing constraints of a proposed commercial development. Council also approved $550,000 for consulting and management services to development approval stage, and the negotiation of a lease with a potential commercial developer for use of a portion of the Parkade.

The Cordova structure, which was built in 1957, has 825 parking spaces, and the estimated cost to rehabilitate the structure exceeds its value. It is recommended that this building be demolished now to make way for a new structure that could allow for a commercial joint venture, and approximately 700 parking spaces.

The lease currently being negotiated with the developer for the commercial space (100,000 square ft.) requires the new building be ready for fit-out work by June 1, 2003, and the building to be substantially complete by March 01, 2004. This requires the City to implement an aggressive schedule commencing with demolition of the Cordova parking structure by September 1, 2002 to meet the construction schedule. A detailed time line is attached as Appendix A.

The demolition of the Cordova structure will leave a shortfall of parking during the construction period of between 100 and 300 parking spaces, and will require the relocation of some of the parkade customers. Much of this can be accommodated in nearby parkades including the City's new 140 space public parking facility as part of the Laurie Krill housing development at 65 West Cordova. Staff would work with the City's parking operator, the Vancouver Parking Corporation, to help ensure this is done in the least disruptive manner to the Gastown community.

The City has retained Henriquez Partners to provide architectural services to prepare design drawing and receive development approval for the parkade replacement including any commercial component.

The Cordova parking structure is located in the Provincially designated Gastown Heritage area and the Province's approval is required. Staff will apply to the Province for this approval.

FINANCIAL IMPLICATIONS

The estimated cost to demolish the parkade, and excavation to prepare the site for building construction is estimated not to exceed $ 3,300,000. The funds for the parkade component are available in the Parking site reserve. The commercial component would be funded by the PEF general fund.

SUMMARY

Because of the very tight time frame required by development of the site, it is Recommended that the Director of Facility Design and Management be granted the authority to obtain the necessary approvals, proceed to tender, contract for, and proceed with the demolition of the Cordova parking structure and site preparation including any necessary excavation.

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(c) 1998 City of Vancouver