Joint Use Project at 475 East Hastings (Non-Market Housing and Community Library)

ADMINISTRATIVE REPORT

Date: September 26, 2002
Author/Local: Rob Whitlock/7432

RTS No. 2926

CC File No. 5104

Council: October 1, 2002

TO:

Vancouver City Council

FROM:

Director of the Housing Centre, in consultation with the Directors of Real Estate, Finance and the Vancouver Public Library

SUBJECT:

Joint Use Project at 475 East Hastings (Non-Market Housing and Community Library)

CONSIDERATION

A. THAT Council approve the ground lease of 475 East Hastings Street (Lots 17-20, Block 57, DL 196, Plan 196) to the Katherine Sanford Housing Society for 60 years at a prepaid lease of $626,250, for the development of 50 units of supportive housing for seniors living in the area's rooming houses and residential hotels, in accordance with the terms outlined in this report and other terms to the satisfaction of the Directors of the Housing Centre, Legal Services and Real Estate.

OR

B. THAT Council approve the ground lease of 475 East Hastings Street (Lots 17-20, Block 57, DL 196, Plan 196) to the Katherine Sanford Housing Society for 60 years at a prepaid lease of $439,700, for the development of 50 units of supportive housing for seniors living in the area's rooming houses and residential hotels with the ground floor and a portion of the second floor to be subleased back to the City for a Strathcona/DTES community library, in accordance with the terms outlined in this report and other terms to the satisfaction of the Directors of the Housing Centre, the Vancouver Public Library, Legal Services and Real Estate with the estimated $7,200,000 total cost for the library to be funded through the 2003-5 Capital Plan.

OR

C. THAT Council approve the ground lease of 475 East Hastings Street (Lots 17-20, Block 57, DL 196, Plan 196) to the Katherine Sanford Housing Society for 60 years at a prepaid lease of $439,700, for the development of 50 units of supportive housing for seniors living in the area's rooming houses and residential hotels with the ground floor and a portion of the second floor to be subleased back to the City for a Strathcona/DTES community library, in accordance with the terms outlined in this report and other terms to the satisfaction of the Directors of the Housing Centre, the Vancouver Public Library, Legal Services and Real Estate; with the estimated $7,200,000 total cost for the library to be funded through the 2003-5 Capital Plan ($3,400,000) for the unfinished space and the underground parking and through the 2006-8 Capital Plan ($3,800,000) for the finishing and equipping of the library

RECOMMENDATION

D. THAT the Director of Legal Services be instructed to prepare and execute all the required legal documentation on behalf of the City; and

FURTHER THAT no legal right or obligation is hereby created and none shall arise hereafter except upon execution of all the legal documentation by all parties.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services and the Director of the Vancouver Public Library RECOMMEND approval of B or C, and express a preference for B, and then RECOMMEND approval of D.

COUNCIL POLICY

Low-income residents of the City's SROs and seniors in need of support are two of the City's housing priorities.

Council policy is to acquire sites for lease to non-market housing sponsors. The City leases sites for 60 years with prepaid leases, either at 75% of freehold market values or occasionally at nominal rent.

In the context of City Plan directions to develop accessible, community based service,
the Vancouver Public Library strategic plan identifies libraries which are priorities for Capital Plan funding.

PURPOSE

This report seeks Council's approval and consideration of the following:
· approval of the terms for the proposed lease of a site at 475 East Hastings Street to the Katherine Sanford Housing Society (KSHS) for the development of a non-market housing project; and
· consideration of a community library for the Downtown Eastside and Strathcona on the 1^st and 2^nd floors.

The non-market housing project is ready to proceed and a decision is required whether or not to include a community library in the project and if so how to fund it. Three options are provided for Council's consideration; all include the non-market housing and two include the community library with each providing an alternative funding structure.

BACKGROUND

On February 20, 2000, Council approved a Vancouver Agreement/Homelessness Province/Vancouver-Richmond Health Board/City Non-Market Housing Partnership which included the development of several projects including one by the Katherine Sanford Housing Society to serve seniors living in the DTES SROs.

Council approved the following recommendations on September 18, 2001 (In Camera):

· acquisition of 475 East Hastings Street;
· a report back on opportunities for pursuing a joint use facility for this site; and
· lease of the housing component of the site to the Katherine Sanford Housing Society for the development of non-market housing.

THE SITE

The site is located on the north-west corner of East Hastings and Jackson Street, as shown in Figure 1 below. The site was previously occupied by a gas station and car wash which has been demolished in conjunction with a commitment of the previous owner to remediate the site before it was transferred to the City. The site has a total area of 1 115 m² (12,200 ft.²), with a frontage along Hastings Street of 30.5 m (100 ft.) and a depth of 37.19 m (122 ft.) facing Jackson Street. The City purchased the site in Sept. 2001 for a cost of $835,000. The site is in the Main/Hastings sub-area of the DEOD, and can accommodate a total of 5 FSR (5 667 m²/61,000 buildable sq. ft.) of which a maximum of 3 FSR can be commercial and a maximum of 3 FSR can be residential. Retail and similar uses at grade are encouraged but not required.

Figure 1
Site Location

THE PROJECT

The site was originally identified as a good location for Katherine Sanford who had a 50 unit allocation from BC Housing, and then subsequently for a Strathcona/DTES community library, the next highest priority for the Vancouver Public Library after a replacement for the Mt. Pleasant community library. The site can accommodate either a project that consists of only 50 units of social housing or a project consisting of both the 50 units of social housing and a community library of approximately 13,000 sq. ft. A project has been designed and a Development Permit has been submitted for the joint social housing/library project. The design can be amended to eliminate the community library if Council chooses to proceed with the non-market housing alone.

The following outlines the floor areas for the joint project:

Use

Floors

Floor Area

Commercial (library)

1^st and 2^nd floor

1 224 m² (13,175 ft.²)

Residential

2^nd through 6^th floors

2 885 m² (31,055 ft.²)

Total

4 109 m² (44,230 ft.²)
3.6 FSR approx.

a) Housing Component

The Vancouver Coastal Health Authority (VCHA - formerly the Vancouver Richmond Health Board) has identified a group of seniors with declining health and mental faculties living in single room occupancies (SROs) in the Downtown Eastside. BC Housing has agreed to provide funding for a 50 unit project and the VCHA has agreed to provide funding for meal services and home support. The project will one of the last funded under the former HOMES BC program. The Katherine Sanford Housing Society is the project sponsor. They operate similar housing projects in Grandview Woodlands and Mt. Pleasant.

The housing component will provide self-contained units for seniors, a limited amount of amenity space and underground parking. Residential floor space will be approximately 2 885 m² (31,000 ft.²).

If the project is approved with only the residential component, the site would be leased to the Katherine Sanford Housing Society for 60 years at 75% of market value ($626,250), on the standard terms for social housing projects funded through BC Housing. Thecommencement date for the lease would be the earlier of the date the lease is executed by all parties or 180 days from the date of Council approval of the lease terms. The lease could be terminated by the City if construction has not begun within 12 months of Council approval of the lease terms.

b) Strathcona/Downtown Eastside Branch Library

The Vancouver Public Library has identified a community library for Strathcona and the Downtown Eastside as one of its highest priorities. The VPL submitted a proposal for a Strathcona/DTES community library to the 2003-5 Capital Plan.

Strathcona and the Downtown Eastside is one of the few neighbourhoods in the City without a branch library and one of the poorest served in terms of library services. Presently library services are provided to the community through the Strathcona elementary school (3,500 sq. ft. providing children's service and collection) and the Carnegie Centre Reading Room (1,930 sq. ft. funded by Social Planning). The prospect of a joint use facility was introduced in the staff report of September 2001 which led to Council's decision to acquire the site for non-market housing.

The following points were important considerations in the acquisition of this site with the library in mind:

· the site is well situated strategically to meet the needs of both the Downtown Eastside and Strathcona;
· the development opportunity is available as part of a joint project with BC Housing and Katherine Sanford;
· the land component associated with the library will be small, at approximately $200,000, and purchase of a site for an exclusive library use will be more expensive; and
· the availability of an alternate site in this area is uncertain.

Developing a Strathcona/DTES branch library would be an important step in the revitalization of the area. A library is a basic neighbourhood service and a key element of community infrastructure. A full service community library reflects and supports the underlying vision expressed in the Vancouver Agreement: for the revitalization of the community, and for the creation of a socially sustainable neighbourhood.

A Community Library will offer:

· A materials collection of informational, recreational, popular fiction and non-fiction in a wide variety of formats and materials that reflect the primary language(s) of the community.

· A full range of customer services such as library cards/borrowing privileges; placing/pickup of holds on material not in the unit; returning materials when closed; returning materials to any branch; self serve checkout stations and exploration of self-serve check in as activity levels increase and technology improves and after hours bookdrop.

· A reference and information service by phone, in person, by fax and through the internet; microcomputers, printers, online databases, internet access, audio listening stations, photocopiers, large print screens, wheelchair accessible workstations.

· Children's and Teen services; the aim is to provide full service to children and teens (preschoolers - grade 12) in the context of basic collections and reference service, expert staff, through a programming space on site and accessible hours; in branch programs for babies, preschool, toddlers, class visits; special programs (i.e.:Summer Reading Club, puppet shows, seasonal); outreach to the community, to schools (elementary/secondary schools) and to daycares/Moms and Tots groups.

· Adult services will include programs in other languages such as Chinese as well as Literacy and ESL learning programs, job search, life skills, computer skills training .

The Community Library would provide holdings in the primary language(s) of the local community emphasizing popular/recreational materials and in various formats. Based on the primary language(s) in the community, the branch may provide programs, language services and signage in the designated language(s) and, with assistance from the Multicultural Services at Central Library, public relations to the local multicultural community.

The General Manager of Community Services and the Director of the Vancouver Public Library both recommend that a Strathcona/DTES community library be included in the project. It would be a very positive addition to the community and assist in its revitalization.

FUNDING

A Strathcona/DTES community library would cost approximately $7,200,000 including $2,000,000 for books. As this is a new branch, the VPL operating budget would need to be increased by $675,000. The Vancouver Public Library would close the children's service from Strathcona Elementary School and relocate it to the new facility, but would retain the reading room in the Carnegie Community Centre which is funded by Social Planning.

The Strathcona/DTES community library was not recommended by the Staff Review Group for funding through the 2003-5 Capital Plan, as the Mt. Pleasant joint use project (community centre, community library, housing) had a higher priority. However, it was identified as a possible project to be funded from a pool of funding that might be set aside for projects that involve multiple uses and multiple funders, in this case social housing funded by BC Housing and a community library funded by the City.

As Capital Plan funding is limited, Council is presented with three options:

A. The first option is to proceed only with a residential project and to pass on the joint use opportunity.
B. The second would include the community library with all the funding, estimated at $7,000,000 be provided through the 2003-5 Capital Plan.
C. The third option would include the community library with only sufficient funding, estimated at $3,000,000, to complete the shell for the library, including the underground parking, to be provided through the 2003-5 Capital Plan with the remaining $4,000,000 to finish and equip the building to be provided through the 2006-8 Capital Plan.

If C is chosen, the shell of the library would be completed in late 2004 with the fully equipped library ready to open in late 2006. Efforts would be made to secure alternative funding to complete the library sooner e.g. through the Vancouver Agreement, Canada Infrastructure program, etc. though such funding is limited.

It should be noted that decisions regarding the 2006-8 Capital Plan can not be made now. Should funding not be available to complete the library from the 2006-8 Capital Plan, Council would be able to offer the unfinished space for lease. Under present market conditions, the revenue would generate only a minimal return on the capital invested.

If Council approves one of the options that includes the Strathcona/DTES branch library, KSHS would sub-lease the ground floor retail and underground parking to the City for 60 years less a day at a nominal rent. Staff would report back once the costs of the branch library have been determined and the contractual arrangements have been worked out.

CONCLUSION

The non-market housing/library project at 475 East Hastings will serve 50 seniors now living in residential hotels and rooming houses in the DTES. In addition the project can also include commercial space at grade to be used as the DTES/Strathcona community library, which will serve as a component in the revitalization of Hastings Street and the communities of the Downtown Eastside and Strathcona.

The General Manager of Community Services and the Director of the Vancouver Public Library recommends that Council support this project proceeding at this time with both the housing and library components, and presents funding alternatives for Council's consideration.

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TO:	Vancouver City Council
FROM:	Director of the Housing Centre, in consultation with the Directors of Real Estate, Finance and the Vancouver Public Library
SUBJECT:	Joint Use Project at 475 East Hastings (Non-Market Housing and Community Library)

Use	Floors	Floor Area
Commercial (library)	1^st and 2^nd floor	1 224 m² (13,175 ft.²)
Residential	2^nd through 6^th floors	2 885 m² (31,055 ft.²)
Total		4 109 m² (44,230 ft.²) 3.6 FSR approx.