Vancouver City Council |
ADMINISTRATIVE REPORT
Date: February 18, 2003
Author: Al Di Nozzi / 7329Dept. File No. 000 030
RTS No. 03242
Council: March 11, 2003
TO:
Vancouver City Council
FROM:
General Manager of Engineering Services in Consultation with the Director of Real Estate Services
SUBJECT:
Proposed Lease of a portion of the East Side of Birch Street, north of West 6th Avenue
RECOMMENDATION
A. THAT Council close, stop-up and lease to the abutting owner (the "Lessee") the surface of all that portion of the east side of Birch Street, north of West 6th Avenue, adjacent to 1275 West 6th Avenue, being Lots 65 and 66, both of False Creek, Plan 17608, as shown hatched and in heavy outline on the plan attached hereto as Appendix "A", subject to the following conditions:
1. The term of the lease to be three (3) years, with a three (3) month notice of cancellation should the lease area be required for any municipal purpose;
2. The rental to be $10,200.00 per year inclusive of all real property taxes, plus PST & GST if applicable as per the recommendation of the Director of Real Estate Services;
3. The lease area is to provide access to the adjacent Lots 65 and 66, both of False Creek, Plan 17608, and to be used for parking purposes only;
4. There are to be no permanent buildings or structures permitted on the lease area;
5. The Lessee is to maintain the lease area, including responsibility for drainage, in a manner satisfactory to the General Manager of Engineering Services;
6. The Lessee is to install concrete barriers at the northerly limit of the lease area, and to maintain the existing retaining wall on the lease area;
7. Upon expiry or termination of the lease, the Lessee is to be responsible for restoration of the lease area to the satisfaction of the General Manager of Engineering Services;
8. 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 public utilities;
9. The Lessee to assume full responsibility for liabilities, loss and damages from their occupancy or use of the lease area, and to insure the proposed lease area with a comprehensive general liability insurance policy to the satisfaction of the Director of Real Estate Services and the Director of Risk Management;
10. The lease agreement to be to the satisfaction of the Director of Legal Services, the Director of Real Estate Services and the General Manager of Engineering Services and may contain other terms and conditions to the satisfaction of the Director of Legal Services, the Director of Real Estate Services and the General Manager of Engineering Services; and
11. The Lessee to enter into an encroachment agreement with the City, in accordance with the Encroachment By-Law, to validate an encroachment of the building situated on the adjacent Lot 66, False Creek, Plan 17608 onto the east side of Birch Street, north of West 6th Avenue, as shown in heavy outline on the plan attached hereto as Appendix "A".
It should be noted that no legal right or obligation is created and none shall arise until execution of the lease.
COUNCIL POLICY
The authority for closing and disposing of streets and lanes is set out in Section 289A(a) of the Vancouver Charter.
PURPOSE
The purpose of this report is to seek Council authority to close, stop-up, and lease to the abutting owner of Lots 65 and 66, both of False Creek, Plan 17608, a portion of the east side of Birch Street, north of West 6th Avenue for parking purposes, and to enter into an encroachment agreement with the same owner to validate an encroachment onto Birch Street from the building situated on Lot 66, False Creek, Plan 17608.
BACKGROUND
In 1979, Council approved a 10-year lease of a portion of Birch Street, north of 6th Avenue for parking purposes, to the developer of the property at 1275 West 6th Avenue, being Lots 65 and 66, both of False Creek, Plan 17608, to satisfy a condition of their development permit. The lease had been first assigned to Foremost Holdings Ltd., then to Jorgen Danish Agencies Ltd., and renewed at regular 5-year intervals. In the 1999 lease renewal, Jorgen Danish Agencies Ltd. had changed its name to Lilona Holdings Ltd. The present lease with Lilona Holdings Ltd. expired on December 31, 2002. The owner would like to continue with the renewal of the lease.
DISCUSSION
Due to road upgrades, additional demand for parking and other changes in the area in recent years, a survey of the Birch Street end was completed in July 2001. It has been determined that the existing lease area is in excess of what the Lessee needs to meet their development permit parking requirements. The current lease area does not allow for adequate vehicle access and maneuvering for the property owners on the west side of Birch Street, north of West 6th Avenue. Currently, to access their parking garage, they are required to pass over the lease area. It was decided that the lease area be revised in order to provide for adequate vehicle access and maneuvering for the abutting owners on both sides of Birch Street, north of West 6th Avenue.
After negotiations, the owner of Lots 65 and 66, both of False Creek, Plan 17608 at 1275 West 6th Avenue, has agreed to a 3-year lease with a rent of $10,200.00 per year inclusive of all real property taxes for the purpose of vehicle parking, and to enter into an encroachment agreement with the City at a fee of $136.00 per year, to validate the building encroachment onto the east side of Birch Street.CONCLUSION
The proposed lease will provide for the indemnification of the City and will require that the Lessee be responsible for the maintenance of the lease area. The future use of the lease area will be assured through the cancellation provisions in the lease, and the City will receive market rent for the use of City street. It is therefore recommended that Council approve the lease, subject to the conditions set out in this report.
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