ADMINISTRATIVE REPORT

Date: June 27, 2002
Author/Local: Bruce Maitland /7420

RTS No. 2827

CC File No. 8023

Council: July 9, 2002

TO:	Vancouver City Council
FROM:	Director of Real Estate Services
SUBJECT:	East Fraser Lands Consultant Funding

RECOMMENDATION

A. THAT Council approve the Director of Real Estate Services entering into an agreement with Weyerhaeuser to cost share the planning program and rezoning costs of East Fraser Lands based on the acreage owned by each party to a maximum City contribution of $300,000; source of funding to be the Property Endowment Fund ("PEF").

B. THAT no legal rights shall arise hereunder or be created hereby until a written cost sharing agreement, drawn to the satisfaction of the Director of Legal Services is executed by her on behalf of the City.

C. THAT Council approve the PEF paying $171,000 as its share of the $476,000 City cost recovery planning process for the East Fraser Lands.

GENERAL MANAGER'S COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

Victoria Fraserview - Killarney community Vision approved January, 2002
Fraser Lands: Land Use Report approved November, 1987
Industrial Lands Policies: Fraserview approved March, 1995
East Fraser Lands: Cost Recovered Planning Program approved May, 2002

PURPOSE

This report is recommending Council approve funding for the City share as landowner of the consultant costs to enter into the planning process and eventual rezoning of the East Fraser Lands (Appendix A).

DISCUSSION

Background

The City of Vancouver, in the late 1980's, as the major land owner in the Fraser Lands, began a process to rezone the industrial lands east of Elliot and south of Marine Way to Boundary to multi-family residential. Initially, the East Fraser Lands, subject of this report, were to be included in this rezoning. Council, upon hearing from a delegation from the mill employees of MacMillan Bloedel, now Weyerhaeuser, agreed to remove the subject lands from the rezoning process so as to not put any pressure on the mill owners to close the mill and redevelop. Council agreed to only consider a rezoning to residential of its East Fraser Lands once the mill closed. The mill has now closed and Council, on May 28, 2002, approved a cost recovered planning program for the City lands and the mill site now owned by Weyerhaeuser.

Present Situation

With Council's approval of the cost recovered planning program for the City and Weyerhaeuser lands, the City, as landowner, must now cost-share with Weyerhaeuser the development consultants, architects and other associated costs to meet the requirements of the planning process and ultimate rezoning. The Director of Current Planning and the Director of Real Estate Services agreed that the planning of the City and Weyerhaeuser lands should be done jointly, in order to produce a comprehensive plan for the area in the most efficient manner.

Weyerhaeuser has engaged Jim Moodie of Moodie Consultants as its development consultant and Rick Hulbert of the Hulbert Group as project architect. Jim Moodie was selected by the City through a proposal call process to rezone the Fraser Lands and is completing the original work with the rezoning of the subject lands. Rick Hulbert has been involved in master planning, major rezonings, and developments on waterfront land in the City of Vancouver, including Coal Harbour and Concord. The Director of Real Estate Services recommends that Council approve entering into a cost-sharing agreement with Weyerhaeuser for the planning process of the east Fraser Lands. The costs for the planning process to be shared between Weyerhaeuser and the City, based on their respective acreages, the City share is estimated to be approximately 36% of the total cost of the planning process.

Costs

The City cost recovery planning process, as approved by Council on May 29, 2002, was estimated at $476,000. The City's ("PEF") share at 36% is $171,000. Additionally, it is estimated the owners planning process costs will be a further $825,000, with the City's 36% share, approximately $297,000.

CONCLUSION

With Council approving the planning process for the East Fraser Lands, the City, as one of the two owners must pay its share of the City cost recover planning process and enter into a cost-sharing agreement with Weyerhaeuser for the owners costs of the planning process. The Director of Real Estate Services is therefore recommending Council approve the PEF pay $171,000 for the City cost recovery planning process and negotiate a cost-sharing agreement with Weyerhaeuser for their joint planning process based on their respective acreages and at a cost not to exceed $300,000.

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(c) 1998 City of Vancouver