Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

The Directors of the Housing Centre and Non-Market Operations in consultation with the Director of Facility Design and Management

SUBJECT:

Renovation of the Central Residence: 42-44 East Cordova St.

 

RECOMMENDATION

A) THAT Council approve the renovation of the Central Residence to create 64 enlarged SRO units (54 with bathrooms and 10 without) at an estimated total cost of $1,542,000 with funding to be provided from the insurance proceeds for two recent fires in the building ($178,000) and from BC Housing ($1,364,000).

B) THAT Chernoff Thompson Architects be retained to provide architectural services at a fee commensurate with the AIBC Tariff of Fees for such projects.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Service RECOMMENDS approval of the foregoing.
COUNCIL POLICY

The City's interim housing policy is to maintain and improve the stock of low-income housing in the Downtown Eastside.

BACKGROUND

The Central Residence is located at 42 E. Hastings St. (see Figure 1) on a 50 ft. x 120 ft. site. It is a 6 storey building containing 131 SRO units averaging 100 sq. ft. each, and 3,000 sq. ft. of ground floor retail space. It was built in 1893 and is listed in the City's heritageregistry as a `B' building. The City acquired the building in 1976 and since then it has been operated by the City's Non-Market Operations as part of its housing portfolio. Operating subsidies are provided by CMHC and BC Housing equally under a subsidy agreement that extends to 2013. There is a CMHC mortgage on the property which will be paid off in 2010.

In April and July 2000 two fires occurred in the building resulting in extensive damage to 27 rooms. These rooms have been closed and vacant since. The insurance proceeds from the fires total $295,000 of which $178,000 remains after demolition and clean up.

On October 31, 2000, Council considered a report recommending that a feasibility study be undertaken to explore renovation options for the Central Residence. BC Housing would provide $1,000,000 for the renovations in return for a Housing Agreement requiring the City to operate the building as non-market housing for low income singles for 20 years beyond the expiry of the CMHC mortgage. The intent was to combine the operation of the renovated Central Residence with the operation of the proposed Segal Place to be built across the lane. Segal Place had received conditional funding from BC Housing for 97 units of low income singles housing to be operated by the City's Non-Market Housing division.

Council approved a Memorandum of Understanding with BC Housing, subject to the results of the feasibility study, and approved retaining Chernoff Thompson Architects to undertake the feasibility study.

Figure 1

FEASIBILITY STUDY

Chernoff Thomson Architects explored four renovation options:

1) A minimum upgrade which would create sleeping rooms twice the size of the current SROs by doubling up rooms. The shared bathrooms would be upgraded, and there would be limited upgrade to corridors and stairs. This option would result in 65 SRO units at an average size of 213 sq. ft., at a total estimated cost of $1,088,000.

2) A partial upgrade which would combine two existing rooms and add washrooms to most of the new units to create small self-contained units. Stairs and corridors would be upgraded with limited improvement to seismic performance. This option would result in 60 units (50 self-contained and 10 sleeping rooms) at an average size of 243 sq. ft., and a total estimated cost of $2,346,000.

3) A partial upgrade with increased seismic enhancement which would combine 2.5 rooms and shorten the light well to create new self-contained units. Corridors and stairs would be upgraded, enhancing the seismic capacity of the building . This option would result in 65 units at an average size of 250 sq. ft. and a total estimated cost of $2,914,000.

4) A higher level upgrade with additional seismic improvement which would combine 2.5 units and shorten the light well to create self-contained units. Corridors and stairs would be upgraded, and one stairwell relocated to further enhance the seismic capacity of the building. This option would result in 60 units at an average size of 280 sq. ft. and a total estimated cost of $3,722,000.

For all the options, the heritage facade and wood windows would be preserved. The roof would be repaired as it does not need to replaced, and the elevator would be retained as it was recently over hauled. The basement and ground floors layouts would remain as they are, with some modest improvement.

Only the minimal upgrade can be implemented within the budget available from BC Housing and the insurance proceeds from the two fires. The higher upgrades cost double or triple the minimal upgrade. They could only be justified through a commitment to retain the building for 50 or 60 years. The building is already over 100 years old, and the units created by the more extensive upgrades would be smaller and more expensive than new units, and still not fully up to the seismic or other provisions of the Building Code.

The architect undertook further work to refine and enhance the minimal upgrade option. Bathrooms are a high priority. Bathrooms (sink, toilet, shower) have been added. Electrical service will be provided to accommodate hotplates or microwaves. The revised and recommended option would result in 64 enlarged SRO units (54 with bathrooms and 10 without) at an average size of 220 sq. ft. and a total estimated cost of $1,542,000. This is a minimal upgrade with the focus on improving the living conditions of the residents and dealing with deferred maintenance. The renovation will not trigger Building Code upgrades. It is not a complete renovation, for instance walls that do not need to be replaced will be patched, but it should allow the building to be operated without major maintenance for the next decade.

It is recommended that Council approve the enhanced minimal upgrade option. It is also recommended that Chernoff Thompson Architects, who are now familiar with the required work, be retained to provide architectural basic services, with other engineering consultants to be solicited as needed.

FUNDING

Capital funding for the renovations would be provided by the City from the insurance proceeds from the two fires ($178,000) and from BC Housing and CMHC ($1,364,000). The total cost of $1,542,000 is higher than the original budget of $1,000,000. BC Housing has advised that they will support a joint BC Housing and CMHC contribution of $1,364,000 but that is the maximum available. Staff will report back once the project is tendered for approval of the contractor and will seek Council direction should the total cost exceed $1,542,000. BC Housing will fund their portion through a second mortgage on the property that will terminate at the same time as the first mortgage in 2010. CMHC will fund their share through their modernization and improvement program. BC Housing will provide the increased subsidies required by the second mortgage payments. There will be no impact on the City's operating budget.

SEGAL PLACE

The original intent was to renovate the Central Residence in conjunction with the development of the 97 unit Segal Place on a City site across the lane with the City's Non-Market Operations to operate both. The Homes BC program was cancelled in late 2001, and funding for Segal Place is no longer available. Funding for Segal Place may be available through the Province's new Supportive Housing BC program, but that is not likely soon and cannot be assured. It is recommended that the renovation of the Central Residence proceedas planned as funding for it is available now and the renovation will result in much improved living conditions for the residents and extend the life of the building. The cancellation of funding for Segal Place does impact the original concept in terms of the Housing Agreement that was proposed and the staffing for the building.

a) Housing Agreement

b) Staffing

IMPLEMENTATION

If Council approves proceeding with the renovation of the Central Residence, the architects will prepare working drawings and a tender package. The recommendation for the selection of the successful bidder would be reported to Council this September. Construction would begin this October and take six months to complete.

As of June 1, 2002, there were 74 residents remaining in the building. If Council approves proceeding with the renovations, no further rooms will be rented until the renovations are complete. The existing tenants will be relocated and given the first right to move back into the renovated units. The Non-Market Housing Division and Tenant Assistance Program have met with the residents, and will assist in relocations. Funds have been allocated in the overall project budget to assist in the relocation.

CONCLUSION

The feasibility analysis for the renovation of the Central Residence is complete. Four options were explored. It is recommended that the enhanced minimal upgrade be undertaken at a total estimated cost of $1,542,000. The existing 131 small sleeping units would be replaced with 64 larger units, 54 with their own bathrooms. Funding would be provided from insurance proceeds for two recent fires ($178,000) and from BC Housing and CMHC ($1,364,000).

* * * * *

ag020625.htm

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

(c) 1998 City of Vancouver