Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

General Manager of Engineering Services in consultation with the Director of Current Planning

SUBJECT:

1000 Block of Canada Place - Approval in Principle of Leaseback Portion of City Street for Convention Centre Parking Purposes

 

RECOMMENDATION

THAT The General Manager of Engineering Services be authorized to advise the Provincial Government that the City would be prepared to lease a volumetric portion of the 1000 block of Canada Place to the new Vancouver Convention and Exhibition Centre for parking and pedestrian connections, for a nominal amount and for a period of 60 years or the life of the structure whichever comes first.

FURTHER THAT the General Manager of Engineering Services and Director of Legal Services report back on the specific terms of the lease.

COUNCIL POLICY

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

On July 23, 2002 Council approved a City Initiated Rezoning at Burrard Landing to accommodate a new Vancouver Convention and Exhibition Centre.

On May 28, 2002 Council approved road closures and road establishments related to the creation of a suitable site for a new Vancouver Convention and Exhibition Centre.

PURPOSE

The purpose of this report is to seek Council's approval in principle of a lease of a volumetric portion of Canada Place (generally the hatched portion shown in Appendix A) to the new Vancouver Convention and Exhibition Centre at a nominal rate.

BACKGROUND

On July 23, 2002 Council approved a series of recommendations related to a City Initiated Rezoning at Burrard Landing to accommodate a new Vancouver Convention and Exhibition Centre, (VCEC). The City initiated this rezoning process in order to facilitate the process of approving the design and construction of a new Convention Centre quickly once senior government support and financial commitment to the project is achieved.

Included in this rezoning report was the condition that prior to enactment the owner make suitable arrangements to complete the establishment of a 20 metre wide road (1000 block of Canada Place) between Burrard Street and Thurlow Street (as outlined in a May 28, 2002 Administrative Report). The process to complete this establishment is currently underway and at its completion, prior to enactment of the VCEC shell zoning, the City will become the fee simple owner of the 1000 block of Canada Place.

The Province is currently involved in negotiations with a potential private partner to establish a public private partnership for the construction and operation of a new Vancouver Convention and Exhibition Centre . In order to conclude these negotiations the Province, and their private partner, need to understand all future cost implications.

DISCUSSION

Discussions between the City and the Province have included the concept of leasing a volumetric portion of City street for a nominal fee to allow the VCEC to locate much of their parking in an area suspended beneath the viaduct supporting the driving surface for the 1000 block of Canada Place. The lease area would also contain a pedestrian connection to the hotel located directly to the south and a pedestrian and vehicle connection to the Arts Complex located directly to the west. Parking under the City street, is required because the number of parking stalls required for the Convention Centre will not fit on the available parcel without the substantial additional cost of creating a larger site by constructing further out over the water.

Construction of the viaduct, at no cost to the City, is currently covered by the Services Agreement registered on the proposed lot for the new VCEC. In the event that a volumetric portion of City street is leased to the new VCEC for parkade purposes, it is intended that all financial obligations related to the construction and operation of the parkade would also be borne by the new Vancouver Convention and Exhibition Centre owner(s).

At this time, in order to conclude their negotiations with their prospective private partner, the Province has requested that the City provide confirmation that the lease of a volumetric portion of Canada Place to the new VCEC will be for a nominal amount. Staff support this lease, at a nominal rate, only if the land and parking is used for a Convention Centre. Should another form of development be proposed for the site, the development would be expected to provide parking on site, or to pay market rates to lease any space under the viaduct.

FINANCIAL IMPLICATIONS

The parkade structure situated in the leased area will be integral with the convention centre and viaduct structures. This arrangement is similar to the Cordova viaduct between Burrard Street and Howe Street, where the City is only responsible for maintaining the top three inches of the viaduct. Similar arrangements would be sought in this instance such that the parkade would have no impact on the City's maintenance budget.

Furthermore, an integral parkade/viaduct/convention centre structure should allow the VCEC expansion to fulfill its parking requirements without having to construct further out over the water or seek additional off-site parking arrangements. There are no project specific estimates for the additional extra costs to construct the VCEC expansion further out over the water; however, a comparable example was the Portside Convention Centre Expansion. That project, which faced similar difficulties, estimated the costs of constructing the expansion further out over the water to be in the millions of dollars. The VCEC expansion would be subject to costs of the same magnitude if a lease back is not permitted.

CONCLUSION

The City initiated rezoning of the VCEC site, is an indication of the City's strong support for the construction of a new Convention Centre at Burrard Landing. Agreeing to the lease of the area under the proposed Canada Place Viaduct for a nominal lease rate will be of substantial financial benefit to the project and another clear signal of the City's support. Staff recommend that Council approve this lease in principle, subject to final approval of the detailed terms of the lease at a later date.

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

(c) 1998 City of Vancouver