Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

The Directors of the Housing Centre and Social Planning in consultation with the Director of Facility Design and Management

SUBJECT:

Funding for Mole Hill Childcare and Mole Hill Lane

 

RECOMMENDATION

Recommendations B, C and D seek approval of grants, and therefore each requires eight affirmative votes of Council.

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Council provides capital grants for the development of licensed childcare centres and the development of non-market housing.

The childcare strategic plan "Moving Forward" sets out the City's future development of hub child development centres.

PURPOSE

This report seeks approval of an increased capital grant for the construction of the new premises for the Mole Hill Childcare, and approval of a capital grant for the Mole Hill Lane and public walkway improvements.

BACKGROUND

On November 2, 1999, Council approved in principle a partnership between the City, BC Housing, the Vancouver/Richmond Health Board, the Mole Hill Community Housing Society, and the Dr. Peter AIDS Foundation to renovate and redevelop 27 of the City-owned houses in Mole Hill (the block defined by Thurlow St., Pendrell St., Bute St. and Comox St.) for non-market housing accommodating a mix of incomes and household types, a social service centre and housing to serve those with HIV/AIDS, and a childcare centre. The partnership would see the City lease 26 of the houses to the Mole Hill Community Housing Society for 160 non-market units, and one of the houses and an adjacent vacant lot to the Dr. Peter Fdn. for a social service centre and 24 units of non-market housing for persons with HIV/AIDS. Most of the houses are a century old and provide most of the remaining rooming house stock in the West End, and the purpose of the partnership was to preserve the heritage value of the houses and their affordability. The City would lease the sites for 60 years at a nominal prepaid rent to the MHCHS, BC Housing would fund the renovations, and the V/RHB would fund the social service centre.

On June 22, 2000, Council approved the first phase of the project, 68 units in 10 houses, and approved the Mole Hill Block Plan which set out the overall concept for the renovation and redevelopment. The Block Plan established a mid-block walkway connecting Comox and Pendrell to be secured by a public right-of-way, and the use of the lane as a utility and trafficcorridor with the possible narrowing of the travel surface from 33 ft. to 20 ft. and the use of the 6.5 ft. of lane on each side for community gardens and parking. The detailed design of the lane was subject to approval of the City Engineer.

On June 7, 2001, Council approved the second phase the project, 100 units in 16 houses. The report included budget estimates for the childcare to be relocated to new premises at 1164 Comox, the terms of the lane encroachments as approved by the City Engineer, and the terms for the mid-block public right-of-way connecting Pendrell to Comox. At that time Council approved a grant of $400,000 towards the capital cost of the childcare centre, subject to report back to Council on the finalized costs and financial plan.

On April 23, 2002, Council approved the lease terms for the Dr. Peter Fdn. project which will be located at the corner of Comox and Thurlow.

STATUS OF PROJECT

Renovations have been completed on the 10 Phase 1 houses and the 68 renovated units are now occupied. The last building permit has been issued, and the current schedule would see the project completed in the summer of 2003. The City's option to the sub-lease space in 1164 Comox for the Mole Hill Childcare, and the encroachment agreements required for the lane improvements are in place. It is appropriate at this time to seek Council approval of the budget and funding for the relocation of the Mole Hill Childcare, and approval of funding for the lane improvements. Appendix A indicates the location of the lane, pathway and childcare in the Mole Hill context.

MOLE HILL CHILDCARE

The Pendrell St. Childcare is located in a portable at 1130-2 Comox. It is a 23 space (ages 3-5) childcare operated by the YMCA . The proposal is to relocate it to the main and second floors of 1164 Comox St. which is one of the houses being renovated by the Mole Hill Community Housing Society, and rename it the Mole Hill Child Development Centre. The new childcare centre will provide 25 spaces, and the opportunity to provide other child development services such as drop-in, playgroups, and evening and weekend parenting programs. The lease with the MHCHS provides the City with an option to sublease the childcare space. In addition, nine new family childcare spaces will be provided by the MHCHS in other of their houses.

In the Mole Hill Phase II report considered by Council in June 2001, the cost of relocating the childcare centre was estimated by the Mole Hill project managers (Kindred Construction Ltd.) at $677,500 including equipment and furnishings. Funding was identified to cover that cost:

The renovations at 1164 Comox have progressed to the point where the tenant improvements required for the childcare space can now be installed. Tenders were requested from five contractors and the following bids were received:

A post-tender addendum increased Novacom's price to $256,359 plus GST. They remain the low bidder and it is recommended that their bid be accepted.

The total cost of the childcare is now estimated at $811,163. This total includes the base building cost, outdoor landscaping and play equipment, indoor furnishings and equipment, fees, and a contingency. The base building cost is fixed at $380,974, and now that the tenant improvement costs have been determined, the total cost of $811,163 is firm. The outdoor and indoor play equipment and furnishings will be designed or purchased within the allowances provided.

The $677,500 funding identified in June 2001 is in place. Council approved the grant of $400,000 at that time. It is recommended that the shortfall of $133,663 be a grant from the net revenues the City earned from the rental of the units in the Mole Hill houses prior to their lease to the MHCHS. This is a grant and requires eight Councillors to vote in favour.

City staff are recommending that a repayable grant of $110,000 from the Triangle West CACs be allocated to the Mole Hill Childcare/child development construction costs. The YMCA will repay this amount over five years. To date, the City has collected over $7.4 million in CACs from new developments in the Triangle West area, of which $1.38 million remains uncommitted.

MOLE HILL LANE AND PUBLIC WALKWAY IMPROVEMENTS

The Mole Hill Lane connects Bute to Thurlow. It provides access to the private properties as well as to the City's properties in the Mole Hill Block. The original plan for Mole Hill contemplated minimal improvements to the lane and a simple pathway connecting Comox and Pendrell. The limited work was to be accommodated in BC Housing's overall budget for the project.

Mole Hill has been renovated to a higher standard and at higher cost than first contemplated. To ensure that the project can be sustained for the 60 year term of the lease, and the heritage value of the houses is fully secured, BC Housing has invested the maximum allowable budget, including the funding provided for land acquisition, into the project. The original concept was that BC Housing would only have to invest the construction component of the maximum budget allowed, as the City was leasing the houses and site at no cost. The total cost of the project to BC Housing was estimated at $21 million in the June 2001 Council report. It is currently estimated that the final cost of the project will total $28 million.

It is appropriate for the lane and the public walkway to be developed to the same high quality as the heritage houses. The lane should be reconstructed and repaved, and the public walkway well landscaped. Half of the public right-of-way has been completed and the other half should be completed to the same high standard.

A conceptual design for the lane has been reviewed by Engineering Services. Once working drawings have been prepared by a civil engineer Engineering Services' review can be completed. The improvements include new road base, new paving (asphalt and decorative pavers) and lighting. The public walkway connecting Pendrell and Comox includes pathways, trees and shrubs, lighting, entry ways, benches and fencing. The total cost of this work is estimated at $300,000. It is recommended that a capital grant be provided to the Mole Hill Community Housing Society to cover the cost of this work. Funding would be provided from the Affordable Housing Fund. This would be the first Affordable Housing Grant for the project. BC Housing is administering the funding for the project and the grant would be directed to BC Housing to expense as required. BC Housing and the Mole Hill Community Housing Society have committed to implement the plan for the Mole Hill Lane as approved by the City Engineer.

CONCLUSION

Mole Hill is well on its way to completion. The renovations for the new space to be occupied by the Mole Hill Childcare can now be undertaken. The cost is $133,663 higher than originally estimated, and it is recommended that a grant from accumulated Mole Hill revenues be provided to cover the cost increase. It is recommended that a $110,000 loan from the PEF be provided to the YMCA for their share of the childcare costs which the Y will repay from fundraising over the next five years. The tender to install the childcare tenant improvements has closed and it is recommended that the low bid from Novacom Construction Ltd. be accepted. It is also recommended that a grant of $300,000 from the Affordable Housing Fund be provided to cover the cost of rebuilding and repaving the lane between Bute and Thurlow and installing the public walkway between Comox and Pendrell to the same high standard as achieved by the renovations of the City's heritage houses.

LINK TO APPENDIX A

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ag020730.htm

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