ADMINISTRATIVE REPORT
Date: |
April 8, 2003 | |
Author: |
Diane Switzer / David Sherwood | |
Phone No.: |
604.264 9642 /604 873 7571 | |
RTS No.: |
3277 | |
CC File No.: |
5054 | |
Meeting Date: |
April 22, 2003 |
TO: |
|
FROM: |
City Manager in Consultation with the Executive Director, Vancouver Heritage Foundation |
SUBJECT: |
Vancouver Heritage Foundation - 2002 Annual Report |
RECOMMENDATION
THAT Council approve the 2002 Annual Report of the Vancouver Heritage Foundation, Appendix A to this report. And in doing so approve payment of $100,000 for 2003 funding from the 2003 Operating Budget.
CITY MANAGER'S COMMENTS
The City Manager recommends that Council approve the Recommendation, noting that
the VHF has fulfilled its obligations under the operating agreement with the City and continues to have a very positive impact on heritage preservation and awareness in the city.
COUNCIL POLICY
Council approved the creation of the City of Vancouver Heritage Conservation Foundation, known as the Vancouver Heritage Foundation (VHF), in June 1992, with the Mayor & Council as its Directors.
On January 1, 1998, the Mayor and Council relinquished day-to-day governance to an independent Board of Directors appointed by City Council, who remain as the Honorary Patrons.
At its September 13, 2001 meeting, the Planning & Environment Committee of Council approved a 3-year contract with the Vancouver Heritage Foundation (VHF), at an annual cost of $100,000, subject to an annual report from the Foundation, including progress on the generation of an operating endowment fund. This funding is to be provided from the annual operating budget, commencing in 2002.
Also, on September 13, 2001, the Planning & Environment Committee of Council authorized the Director of Legal Services to execute an operating agreement and contract with the Vancouver Heritage Foundation, to be drawn to the satisfaction and approval of the General Manager of Community Services and the City Manager.
On April 30, 2002, Council approved the 2001 Annual Report of the Vancouver Heritage Foundation.
PURPOSE
This report seeks Council approval of the Vancouver Heritage Foundation's 2002 annual report according to its operating agreement with the City of Vancouver, as signed by the Foundation on March 25, 2002. Upon approval of the annual report the VHF will receive their 2003 operational funding.
BACKGROUND
In the Fall of 2001, Council approved a 3-year contract with the Vancouver Heritage Foundation at an annual cost of $100,000, subject to the approval of an annual report to Council by VHF. Staff were asked to draft an operating agreement, which was executed on March 25, 2002. This report fulfils the annual report requirement of the VHF operating agreement with the City of Vancouver.
DISCUSSION
The Vancouver Heritage Foundation had a successful year. A detailed account of the Foundation's 2002 accomplishments are listed in the accompanying Annual Report (Appendix A). A public version of the report will be published following the Foundation's Annual General Meeting, planned for April 28, 2003. Highlights include:
· Successfully completing the fourth round of granting in True Colours, bringing 1 new heritage designation of an "A" listed building, and two "B" listed designations to the city. This brings to 20 the total number of houses painted in the program and the number of new designations brought to the city through True Colours to 15..
. The publishing of "Historical Vancouver True Colours" colourcard in collaboration with Benjamin Moore Co. & Limited paints. All proceeds from the sale of the card at Benjamin Moore retailers go to the VHF.
· The Heritage & Antiques Fair was a moderate success bringing much profile to the Foundation but less revenue than desired. An evaluation of the event stated that although the Seaforth Armoury is the ideal venue for the Fair, the restricted access to the building forcing the Fair to be held in the summer months, had a serious negative effect on attendance. There will be no fair in 2003 and the VHF will decide in 2003 whether it is beneficial to the VHF for fundraising and profile to hold future fairs.
. $20,000 was received by the VHF in 2002 from the sale of the nursing sisters from the Georgia Medical Dental Building. The nurses have been mounted onto a medical research building at UBC. Other remaining pieces of Georgia Medical Building terracotta were sold through a local antique dealer.
· The moving, restoration and sale of the Leslie Lane House now located at 1117 Pendrell Street continued through 2002. Development & building permits were secured and the restoration is two-thirds complete as of December 31, 2002. An offer to purchase the house has been accepted by the VHF at our asking price of $479,000 plus GST. Subjects come off the offer in early January, 2003 and the sale completes at the beginning of April, 2003. $82,500 in cash donations were received for this project. Corporate donations of consultative services and building materials from over 30 companies were given to the project.
· A donation of art valued at $11,777 was received from a friend of the VHF. This art will be sold or auctioned to benefit the VHF.
The last fiscal year ended with a modest surplus of almost $32,000. (The 2002 audited Financial Report is attached as Appendix B.) The surplus was primarily from the fundraising activities such as the sale of the terracotta nurses & the Heritage & Antiques Fair. In response to City Council and VHF's desire to grow the Endowment Fund at the Vancouver Foundation, the net proceeds from the sale of the Leslie Lane House will be deposited into the Vancouver Foundation VHF Endowment Fund.
(The budget for the current year is attached as Appendix C.)
Attached is a 2003 work plan (Appendix D) which outlines anticipated activity in the current year.
FINANCIAL IMPLICATIONS
Approval of this report will authorize the payment of $100,000 representing 2003 funding; being year two of a three year operating agreement. The funding source is included in the 2003 operating budget.
Financial performance in 2002 was primarily affected by the lower than anticipated participation in the Heritage Fair. Fair revenues were $31,000 lower than budget, and costs $7,000 higher. This negative impact on the financial statements has been offset by higher other fundraising and donations of $22,000, and a number of other smaller variances. The net result was a lower net surplus than budget of approximately $15,000. The small difference between the operating statement in appendix C and the Audited Financial Statements relate to accounting accruals.
There is no Heritage Fair planned for 2003 but other fundraising and donations is expected to increase to $105,000 ($41,000 in 2002). This combined with the sale of Lane House is expected to result in an increased surplus in 2003 of approximately $100,000.
The three-year operating agreement includes an intent for the Foundation to create an Endowment fund to help provide a source of future funding. As at the end of 2002 only $10,000 has been placed in this Endowment, we also understand that it is the Foundation's intention to place the 2003 surplus into this fund. If the Foundation is to become self funding after the completion of the current three-year agreement then significant other donations will need to be received.
CONCLUSION
Heritage buildings play an important role in the cultural and social well-being of our city. Whether it is a landmark building in the downtown core visited daily by the people who work there and viewed from the street by tourists, or it is a Craftsman bungalow in a row of similar houses in Grandview-Woodlands there is a public benefit when heritage buildings are preserved.
Heritage buildings reflect the history of the city, attracting cultural tourists who stay longer and spend more than other tourists. The buildings pay tribute to the people and enterprises who built the city. Preservation sends less material to our land fill than does demolition; and people like to live and to work in preserved heritage buildings. They sell and rent well, and hold their value regardless of the real-estate market.
Currently the VHF is mainly working to conserve the city's residential heritage buildings, filling a gap in the city's spectrum of heritage conservation programs which primarily benefit revenue-producing properties. We are providing education and awareness activities as well as economic incentives to residential building owners in return for their agreement to designate their buildings. And there is a spin-off effect: when one building owner gets a new roof or paints in True Colours, neighbours are motivated to fix up their buildings. These well-maintained, stable neighbourhoods are an asset to the city.
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APPENDIX A
YEAR 2002 ANNUAL REPORT
Vancouver Heritage Foundation Mission
The Vancouver Heritage Foundation was established as a charitable organization in 1992 by Mayor & Council of the City of Vancouver, who were its inaugural governing body and remain the Foundation Honorary Patrons until today. Since 1998 the Foundation has been governed by a citizen Board of Directors.
The Vancouver Heritage Foundation was created to assist in the conservation of Vancouver's built heritage in recognition of its public benefit through:
1. Fundraising to protect heritage buildings in perpetuity through endowments, grants and donations of real property and planned gifts.
2. Partnering with related private industry.
3. Developing granting programs that provide an economic incentive for the restoration of heritage buildings.
4. Education and awareness programs to raise public interest in Vancouver's built heritage.
Visit us on the web at www.vancouverheritagefoundation.org for up to date information on the Vancouver Heritage Foundation.
Programming
The programs of the Vancouver Heritage Foundation raise the profile of the Foundation with potential donors, provide building owners with information and financial incentives and create partnerships with related trades and industry. In some instances special events raise funds for the Foundation.
The Board of Directors adopted a recommendation from the Sub-Committee on Future Directions in Granting to launch a new exterior fabric granting program and special project grant in 2002, in addition to continuing with True Colours.
True Colours, Restore It! and in some instances Special Project grants provide building owners with financial incentives to maintain and restore their legally protected heritage homes. The grants given to heritage homeowners by the Vancouver Heritage Foundation are the only direct financial incentives available to non-commercial, residential Vancouver heritage properties. There are tools available to the city heritage planners for homeowners wanting to received development concessions in return for heritage designation.
True Colours - an exterior paint granting program
Program summary
True Colours is an exterior paint granting program in corporate partnership with Benjamin Moore Paint Co. Ltd. Selected heritage houses are scraped, their original colours are matched and formulated by Benjamin Moore and the houses are then painted in their original and authentic colours. A palette of over 30 colours true to the history of Vancouver has been developed. To date 15 new designations have been brought to the City of Vancouver through the program. The remaining homes are protected through Heritage Revitalization Agreements. Four houses were painted in 2002 and the colour schemes were done for all eight houses in the Pacific Heights Coop, bringing to 20 the total number of houses painted in their original and authentic colours through the True Colours program.
In 2002, the program provided homeowners with approximately $4000 in assistance, with Benjamin Moore providing an average of $2000 in retail value of paint for each house and the Vancouver Heritage Foundation providing heritage consultation services and a cash grant of $1500 upon successful completion of each paint project.
What was new in True Colours 2002
Benjamin Moore Co. & Limited, in collaboration with the VHF, has printed 15,000 Historical Vancouver True Colours colour cards showing the palette of colours and sample colour schemes. The cards cost $1 in Benjamin Moore Stores and all proceeds go to the VHF.
RESTORE IT! - An exterior fabric granting program
In its inaugural year this granting program awarded 5 homeowners grants to assist with roofing, masonry and Victorian façade restoration projects in 2003. Each home will be protected through designation and the projects each receive $2500 towards the cost to complete.
Special Project Grant
Inaugurated in 2002, the Board of Directors committed to granting $5000 annually to deserving project(s) selected on the bases of both its heritage merit and its benefit to the fundraising goals of the Foundation.
The first special project grants were awarded to Mole Hill Community Housing Society to assist them in the accurate restoration of the Victorian façade details on Pendrell Street houses. And, to DOCOMOMO, for an educational CD Rom to assist in raising public awareness of the tremendous wealth of local modern heritage buildings. The CD Rom will be available for use in schools, to the public from the Foundation's website and other sites according to DOCOMOMO's distribution plan.
Vancouver's 3nd Heritage & Antiques Fair
June 14 - 15, 2002 at the Seaforth Armoury
The Fair was a moderate success bringing terrific profile to the Foundation. Financially the Fair did less well, attracting far fewer people through the gate. At the Friday evening Opening Benefit, over 200 people enjoyed the almost 70 exhibits, silent auction, entertainment, food and wine. During the weekend, 2000 people browsed and bought antiques, linked with heritage trades and suppliers, attended the more than 20 demonstrations and seminars on topics related to heritage homes and their restoration and enjoyed the historical fashion shows with their colourful social commentary.
The Fair is a huge volunteer effort supported by a paid event coordinator. Over 60 volunteers help to set up and run the Fair.
Corporate sponsors are a key fundraising strategy of the Fair. For the 3rd Fair there were 21 corporate and individual sponsors and contributors, 6 media sponsors and 4 antique consultation companies that donated their services for the weekend. The donations of cash, goods and services offset the tremendous cost ($107,000) of hosting the Fair. For the Fair to be viable fundraising event it must attract at least 5,000 visitors, secure additional cash sponsorship and sell at least 50 exhibit spaces.
There will be no Fair in 2003. The VHF is evaluating the efficacy of holding future fairs.
An alternate event, OPEN VANCOUVER: Heritage House Tour will be held June 1, 2003.
Education & Public Awareness
Extensive heritage related education programs were offered on the demonstration and seminar stages at the Heritage & Antiques Fair. The BC Heritage Trust awarded a grant to partially fund the cost of mounting the education programs. And The City Program, Simon Fraser University promoted the programs.
OLD NEWS, the Foundation's newsletter, was distributed to 2500 homes outlining the organization's activities and related community events.
The website remains a primary tool for the VHF to connect with the interested public. Information pamphlets, grant applications and program information can be downloaded from the site. The information on the site is updated on a regular basis. www.vancouverheritagefoundation.org
In partnership program with SFU City Program, a public lecture, workshop and bus tour on historic colour both in Vancouver, presented by Heritage Consultant, Don Luxton and in Eastern U.S., presented by Susan Buck of the University of Delaware was held at the SFU downtown campus enjoyed by more than 100 people.
Periodically the VHF gives presentations on the city's heritage buildings and the activities of the Foundation to interested groups like the Chinatown Historic Area Planning Commission and the local Tour Guides Association, among others. Additionally the Foundation is a member of Tourism Vancouver and participates in select awareness activities.
Resource Development through special events & projects, gifts of real property, planned gifts and grants.
This Old House Committee
The mandate of the This Old House Committee is to secure the donation of a heritage building suitable for restoration and redevelopment to benefit the fundraising efforts of the Foundation.
The 1903 lane house behind the 1888, Victorian style Leslie House at 1380 Hornby Street, is one of the last remaining lane houses in the downtown area. It began life as a stable in 1901, then was framed in and finished in 1903 for Mr. George Leslie's daughter and son-in-law. It was subsequently occupied by a succession of tradespeople, including lathers, plasterers and carpenters, until the late 1940's when it became the home of Leslie Interiors, under the proprietorship of Miss Wilhelmine Meilicke. From the late 60's until 1981, Mano & Olive Herendy lived in the lane house and operated a well-known dress designing business out of the main Leslie House at 1380 Hornby Street. Many baby boomer brides can recall hours of wedding dress fittings in the parlour of the Leslie House. Until recently, the lane house was used for storage, but impending modifications to Umberto Menghi's restaurant operations have rendered it superfluous and it must be moved in order to avoid demolition.
Mr. Menghi donated the house and financial assistance to move and restore it on property leased to the VHF by the City of Vancouver at 1117 Pendrell Street. By the end of 2002 the restoration of the house is two third's complete and an offer of purchase has been accepted at the Foundation's asking price of $479,000. The sale will complete the beginning of April, 2003.
More that 30 corporate donors have participated in the project through the donation of building materials and consultation services and cash donations of $82,500 have been received.
Partnerships with Wealth Management Professionals
In 2002 the VHF began linking with wealth management professionals who can assist the Foundation in attracting gifts in people's wills. An education session for representatives of 5 wealth management companies in Vancouver on the benefits to both professionals and charities of planned gifts, was presented by Investors Group at the Terminal City Club on behalf of the Foundation.
In the coming year, through membership in Leave a Legacy and continued work with local wealth management companies, the Foundation will continue to put our charity's name in front of the professionals who guide donors bequest and giving decisions.
Architectural Models of City's Heritage Buildings
Commissioned through a generous donation by a local businessman, British Artist, Timothy Richards, executed a fine plaster architectural model of Vancouver's Art Moderne, 1936 City Hall building. The model is hoped to be the first of a number of Vancouver heritage building commissions. Discussions are taking place with the artist, the owners of the Marine Building, the Board of Trade and the Georgia Hotel for future commissions. About 12 city Hall models have been sold to date and 4 have been awarded to individuals and companies as appreciation gifts. The models are available for sale through our website and the Vancouver Museum store.
Salvage: The Board of Directors salvage policy states that: the Foundation will receive salvage from a demolished heritage building only with prior agreement of the Foundation's Board of Directors according to the guidelines laid out in its salvage policy statement.
The sale of two of the terracotta nursing sisters from the Georgia Medical building to Discovery Parks Ltd. for $20,000 was completed in 2002. The eleven foot high figures are mounted on the exterior at the second floor level of a medical research building on the UBC campus.
Simon Fraser University has donated 24 cornice blocks from the Morris Wosk Centre for Dialogue building to the Foundation. A buyer has yet to be found. The blocks can be viewed on the VHF website and on the www.iconstrux.com website.
A number of the remaining decorative terracotta fragments from the Georgia Medical Building, demolished in 1991, were sold by a local antique dealer with the revenue going to the VHF.
Watson House, 1125 Pendrell Street Restoration
The Vancouver Heritage Foundation is awaiting a City of Vancouver Request for Proposal for the Watson House, an "A" listed, late Victorian heritage building owned by the City and located in Mole Hill. The house previously operated as a Special Needs Residential Facility and has been vacant for a number of months. Although in sound repair after the move to its present location in 1987, the house needs restoration to pay tribute to its fine detailing and "A" listed heritage status. The Foundation is investigating 2 possible uses for the house: a Bed & Breakfast to service St. Paul's Hospital, Dr. Peter Centre and tourists; and, division into 2 strata units. The Foundation would undertake the restoration of the house as a fundraising project, similar to the Leslie Lane House project.
Administration & Operations
The Foundation is administered by one part-time Executive Director. Contract workers are engaged as needed for program delivery, graphics, administrative assistance, legal help and accounting. The Foundation does not currently have office space, office equipment or employees and thus overhead costs are kept to a minimum. A set of operating procedures and guidelines was drafted by the Executive Director in 2002 and will be presented to the Board of Directors in 2003.
See attached draft Audited Financial Statements prepared by Wolrige Mahon, to be approved by the Board of Directors on the Annual General Meeting on April 28, 2003 .
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