ADMINISTRATIVE REPORT

Date: September 19, 2002
Author/Local:M.G Thomson/7328

RTS No. 02979

CC File No. 5752-1

Council: October 8, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services in Consultation with the Director of Real Estate Services and the Director of Legal Services
SUBJECT:	Tunnel under the Lane Southerly of Water Street, between Cambie Street and Abbott Street

RECOMMENDATION

A. THAT Council authorize the Director of Legal Services to sign, on behalf of the City, a Reference Plan of survey, to be prepared, and to make application in the Land Title Office to raise title to the portion of the lane southerly of Water Street, between Cambie Street and Abbott Street as shown in heavy outline on the plan attached hereto as Appendix "A".

B. THAT Council close and stop-up the volumetric portion of the lane generally as shown within the heavy outline and illustrated isometrically on the plan attached hereto as Appendix "B" (the "Lease Area") and authorize the Director of Legal Services to include the Lease Area as part of the Premises (as that term is defined) in the lease between the City and West Coast Historical Experiences Inc. ("Whex") concerning portions of the buildings located at 130 Water Street and 125 West Cordova Street (the "Parkades"), the terms and conditions of which have been before Council on July 23, 2002 and September 17, 2002, subject to the following conditions:

1. The rent to be paid by Whex for the Lease Area shall be at the same rate that Whex is paying for the balance of the space leased by Whex in the Parkades;

2. The Lease Area to be used only for access between the structures at 130Water Street and 125 West Cordova Street. Any use beyond access will require the prior written approval of the General Manager of Engineering Services;

3. The Lease Area to contain a tunnel, generally constructed in accordance with Recommendation D to this report;

4. The Lessee is to maintain the Lease Area, including responsibility for drainage, in a manner satisfactory to the General Manager of Engineering Services;

5. Upon expiry or termination of the lease, the Director of Real Estate Services is to be responsible for restoration of the Lease Area to the satisfaction of the General Manager of Engineering Services;

6. The City and utility companies are to have the right of entry at any time, to the Lease Area for the purpose of installing, maintaining and repairing utilities above and below the Lease Area;

7. The Lessee is to assume full responsibility for any losses the City may suffer due to the Lessee's occupation of the Lease Area. The Lessee shall also be required to provide evidence of comprehensive general liability insurance in connection with the Lease Area, to the satisfaction of the Director of Risk and Emergency Management.

8. The lease agreement may contain other terms and conditions to the satisfaction of the Director of Legal Services, Director of Real Estate Services, the Director of Risk and Emergency Management, and the General Manager of Engineering Services.

C. THAT Council authorize the General Manager of Engineering Services to approve minor and inconsequential amendments to the Lease Area, should a post-construction survey reveal minor variations in the area containing the tunnel.

D. THAT Council instruct the General Manager of Engineering Services and the Director of Real Estate Services to report back on the construction of a tunnel at the City's cost within the Lease Area, such construction to occur on the following general terms and conditions:

1. The final design of the tunnel to be to the satisfaction of the General Manager of Engineering Services, and to address the following:

a) a minimum cover from the top of the tunnel structure to the bottom of any existing utility of at least 3.5 feet;

b) the relocation, reconstruction or replacement of any utility for which the required clearance cannot be achieved to the satisfaction of the General Manager of Engineering Services;

c) the tunnel design to include a method to support existing underground sewer lines, telephone ducts, steam pipes, gas lines, electrical ducts, cable tv lines, overhead poles and utility lines during construction;

d) the tunnel design to include a reasonable method to remove, fill-in or decommission the tunnel at the end of its service life, or the expiry of the lease. The design and steps to carry out the decommissioning of the tunnel are to be included on the tunnel design drawings;

2. Provision of a complete as-built survey of the tunnel after construction. Should the tunnel not fall within the Lease Area, arrangements shall be made to amend the Lease Area, as per Recommendation C;

1. All cost to remove the tunnel at the end of its service life or the expiry of the lease are to be borne by the owner of the Parkades.

E. THAT no legal rights shall arise and no consents, or permissions, are granted hereby and none shall arise or be granted hereafter unless and until all contemplated legal documentation has been executed, delivered by all parties, and where applicable, registered in the Land Title Office.

F. THAT once the form of all legal documentation and plans has been approved by the General Manager of Engineering Services, and the Director of Legal Services , that the Director of Legal Services be authorized to execute and deliver such documentation and plans to the appropriate parties on behalf of the City.

COUNCIL POLICY

The authority for closing and disposing of streets and lanes is set out in the Vancouver Charter.

On June 25, 2002 Council authorized the demolition of the Parkade at 125 West Cordova Street.

SUMMARY

The Whex proposal (the "Project") includes a tunnel connecting the renovated structure at 130 Water Street with the new structure to be built at 125 West Cordova Street. The tunnel is to be constructed below the lane southerly of Water Street, between Cambie Street and Abbott Street ("Trounce Alley"), generally in the location shown isometrically on the plan attached as Appendix B.

Whex desires that the Lease Area be included in the Premises as defined in the Whex lease.

PURPOSE

This report seeks the formal authorities to raise a title for the lane which will contain the tunnel, and to close, stop-up and lease a volumetric portion of the lane.

BACKGROUND

The City is the owner of:

1. Lot J Old Granville Townsite, Plan LMP52319 at "130 Water Street", which said Lot J is occupied by a parkade structure;

2. Lot K, Block 5, Old Granville Townsite, Plan BCP203 at "125 West Cordova Street", which said Lot K is occupied by a parkade structure currently being demolished.

Council, on June 25, 2002 authorized the demolition of the 125 West Cordova Street Parkade structure. The Parkade is to be reconstructed with the base of the building occupied under a lease to Whex.

The Whex concept will focus on the history of Vancouver and British Columbia and will include a number of interactive stops along a tour that will educate and entertain customers. The tour will focus on early settlement in British Columbia, native history and culture, local trade, the gold rush, and other relevant historical experiences (circa 1800-1900). The concept will target tourists to Vancouver as well as local residents.

The Project includes the proposition of a tunnel connecting the renovated structure at 130 Water Street with the new structure at 125 West Cordova Street. The tunnel is generally located as isometrically illustrated on Appendix B. The lane southerly of Water Street,between Cambie Street and Abbott Street was dedicated by the deposit of Plan 168 on the 28^th day of November, 1885. The lane contains both underground utilities (a 12" diameter sewer line, telephone ducts, concrete encased electrical ducts, TV [Shaw cable] lines, a 3" diameter gas line and steam pipes) and overhead poles and utility lines.

Whex requires some type of registerable legal interest in the tunnel area. Accordingly, they have requested that the tunnel area be included as part of the Premises in the Whex lease.

DISCUSSION

The General Manager of Engineering Services generally discourages tunnels under City streets and lanes. They create numerous negative impacts on utilities, including the ability to provide for and the cost to provide for utilities, both now and in the future. When the tunnel reaches the end of its service life, Engineering is often left with the costs to remove, fill or decommission the tunnel, notwithstanding the legal obligation of the abutting owners.

The General Manager of Engineering Services has, however, recognized the numerous potential public benefits of the Whex proposal, and will support the construction of the tunnel, provided that at least 3.5 feet of cover below the bottom of any utility can be provided and that all costs associated with the tunnel be the Parkade owner's responsibility, including its removal at the end of its service life, or the termination of the lease. The City is currently the owner of the Parkades. As part of the tunnel design provisions must be made to support the existing utilities during the tunnel construction. The tunnel is to be constructed using a cut and fill method meaning the utilities will all be exposed. The design must also include a reasonable method to remove, fill-in or decommission the tunnel at the end of its service life or the lease.

To allow for registration of the volumetric lease, the City must raise a title in the Land Title Office to the lane containing the tunnel. Then Council must close and stop-up the volumetric portion of lane containing the tunnel.

CONCLUSION

The General Manager of Engineering Services in consultation with the Director of Real Estate Services and the Director of Legal Services RECOMMENDS Council approve Recommendations A to F so as to facilitate the construction of a tunnel under the lane southerly of Water Street between Cambie Street and Abbott Street. Approval will authorize the Director of Legal Services to execute plans and documents as required.

LINK TO APPENDICES A AND B

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(c) 1998 City of Vancouver