Vancouver City Council |
ADMINISTRATIVE REPORT
Date:
April 29, 2003
Author:
David Sherwood
Phone No.:
604.873 7571
RTS No.:
03356
CC File No.:
3143/8104
Meeting Date:
May 13, 2003
TO:
FROM:
General Manager of Corporate Services
SUBJECT:
2003 Vancouver Economic Development Commission Services Contract and the Administration of the Downtown Eastside Tenant Improvements Assistance Program and the Lease Subsidy Program (the "Programs").
RECOMMENDATION
THAT Council amend the terms of its approval related to the 2003 services contract with the Vancouver Economic Development Commission (VEDC), as (contained in Recommendation B of the Council Report dated December 17, 2002) approved by Council on January 16, 2003, by removing the condition that a new services contract between the City and Partners for Economic and Community Help (PEACH) must be entered into with respect to the administration of the Programs by PEACH before the 2003 services contract between the City and VEDC can be executed.
CITY MANAGER'S COMMENTS
The City Manager recommends that Council approve the Recommendation.
COUNCIL POLICY
On March 16, 2000 (in a policy report dated March 3, 2000), Council approved the Downtown Eastside Lease Subsidy Program and the Tenant-Improvements Assistance Program. Pursuant to the terms of a services contract between the City and the Vancouver Economic Development Commission (VEDC) dated January 1, 2002, these Programs have been managed by the VEDC in consultation with Real Estate Services, the Planning Department and representatives from the community.
On January 16, 2003, Council approved an amendment in the terms of its approval related to the administration of the Tenant-Improvements Assistance Program and the Lease Subsidy Program (the Programs) as contained in the Policy Report dated March 3, 2000, by authorizing the Partners for Economic and Community Help (PEACH) to be the manager and administrator of the Programs in place of the VEDC, subject to PEACH entering into a services contract with the City on terms and conditions similar to those that governed the VEDC's administration of the Programs.
PURPOSE
This report seeks Council approval to execute the 2003 services contract with the VEDC by removing the condition that a 2003 services contract with PEACH must be entered into prior to executing the VEDC's 2003 services contract which will release the VEDC of all obligations and liabilities related to the continuing management and administration of the Programs.
BACKGROUND
In November 1998 Council approved "A Program of Strategic Actions for the Downtown Eastside." One objective of the program is to bring legitimate businesses back to the storefronts of Hastings Street between Gore and Cambie.
On March 16, 2000, Council approved the Lease Subsidy and Tenant-Improvements Assistance Pilot Programs to encourage locally-based businesses to commence operations in the Downtown Eastside. $150,000 was allocated from the 2000 - 2002 Capital Plan for each of these Programs. Council also approved that the VEDC, in consultation with staff and a community-based Business Assistance Review Committee, would administer these Programs in accordance with the directions and requirements of the City related to the Programs. Council approval is required of any entity or organization seeking a grant under the Lease Subsidy Program.
On May 16, 2000 Council approved the first Lease Subsidy grant to Clothes Encounters- a proposed laundry/café.
In 2000 the VEDC and the Four Corners Support Fund Society (FCSFS) formed PEACH (Partners for Economic and Community Help). The purpose of PEACH is to offer in a single storefront location a comprehensive set of programs to help revitalize business in the Downtown Eastside.
On May 17, 2001 Council approved the second Lease Subsidy grant to Call 'N Post - a social enterprise offering voicemail, mailboxes, printing and fax services. Council also authorized the VEDC to have PEACH administer the Programs on the VEDC's behalf until such time as PEACH becomes a registered non-profit society capable of contracting directly for services with the City. The report also stated that City Staff would report back to Council once the VEDC is in a position to devolve the management and administration of the Programs to PEACH and will seek Council's approval or direction at such time.
On June 28, 2002 PEACH was incorporated as a society under the Society Act of British Columbia. Two representatives from the VEDC, two from the Four Corners Support Fund Society and four members from the community are the first directors of PEACH.
On October 24, 2002 Council approved VEDC's 2003 Business Plan, 2003 Budget and the renewal of the annual contract with VEDC for the 2003 fiscal year. The VEDC immediately began working towards the delivery of the four primary goals established for the fiscal year 2003.
On January 16, 2003 Council approved an amendment in the terms of its approval related to the administration of the Tenant-Improvements Assistance Program and the Lease Subsidy Program as contained in the Policy Report approved March 16, 2000, by authorizing the Partners for Economic and Community Help (PEACH) to be the manager and administrator of the Programs in place of the VEDC, subject to PEACH entering into a services contract with the City on terms and conditions similar to those that governed the VEDC's administration of the Programs. In the January 16, 2003 report, Council agreed to absolve the VEDC of any future responsibility to manage and administer these Programs in the VEDC's 2003 Services Contract provided that, and on condition that PEACH would take on such responsibilities in a services contract between the City and PEACH. To help ensure continuation of ownership and responsibility for these Programs the report stated that a revised 2003 VEDC services contract and new 2003 PEACH services contract would be entered into simultaneously.
DISCUSSION
Since inception there have been two participants in the Lease Subsidy Program and none in the Tenant Improvement Program. Clothes Encounters was the first participant in the Lease Subsidy Program, this business closed and was later taken over by another organization that did not meet the requirements of the Program. The second Lease Subsidy Program participant was Call'n Post.
In April 2003 the Call'N Post business will be in its third year of operation which is the final year during which it is eligible to receive a Lease Subsidy Grant under the program. In March 2003 the Downtown Eastside Residents Association (DERA) being the managers of the Call'N Post operation decided to close the storefront location by the end of May 2003. Therefore by the end of May 2003 there will be no active participants in the Programs. The lack of participants in the Programs now removes the primary reason for recommending that the 2003 VEDC and PEACH contracts should be entered into simultaneously.
At the end of 2002 a new executive director was appointed by the PEACH board and PEACH is currently reviewing its programs and funding requirements. PEACH has indicated that they are not currently willing to fully enter into a services contract with the City under terms currently approved by Council to administer the Lease Subsidy and Tenant Improvement Programs. During this period of transition there is currently no mechanism in place to approve new applications. The Director of Current Planning is reviewing the operations of PEACH and will meet with PEACH to negotiate on the terms of the service contract and will report back to Council if a services contract cannot be entered into.
City staff will ensure that Call'N Post receives its Lease Subsidy funding until such time as the operation closes or for any other reason the organization no longer meets the requirements to receive the Subsidy under the terms of the Lease Subsidy Program.
It may be some time before the future of these Programs is determined and without Council approval to amend its previous resolution of January 16, 2003 it is not possible to execute the 2003 services contract with VEDC. Therefore, staff seek Council approval of the recommendation.
FINANCIAL IMPLICATIONS
There are no financial implications at this time.
CONCLUSION
To avoid further delay in executing the 2003 VEDC services contract, approval is requested to remove a dependency, which would at least require the need to await the outcome of a review of the Lease Subsidy and Tenant Improvement Programs before this contract can be executed.
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