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CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
October 27, 2003 | |
Author: |
Celine Mauboules and Jill Davidson | |
Phone No.: |
6198/7670 | |
RTS No.: |
03719 | |
CC File No.: |
4656 | |
Meeting Date: |
November 4, 2003 |
TO: |
Vancouver City Council |
FROM: |
Co-Director of Current Planning in consultation with the Director of the Housing Centre |
SUBJECT: |
Single Room Accommodation Permit for 806 Richards Street
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RECOMMENDATION
A. THAT City Council approve a Single Room Accommodation Permit for 806 Richards Street (the Plaza Hotel);
B. FURTHER THAT Council approve a payment of $165,000, representing $5,000 per room for the 33 rooms to be demolished, with that amount being deposited into a reserve fund earmarked for the creation of replacement housing.
CITY MANAGER'S COMMENTS
The City Manager RECOMMENDS A and B.
COUNCIL POLICY
On October 21, 2003, Council enacted the Single Room Accommodation By-law to regulate the conversion and demolition of single room accommodation. The By-law requires Council approval for the conversion or demolition of single room accommodation. The By-law also allows Council to attach conditions to the approval of a permit to convert or demolish single room accommodation, including a fee of $5,000 per room which must be deposited into a reserve fund earmarked for the creation of replacement housing.
PURPOSE AND SUMMARY
This report provides a brief overview of the history of the proposed redevelopment for 488 Robson Street which requires Single Room Accommodation Permit for the demolition of 33 rooms at the Plaza Hotel (806 Richards Street); as well as a rationale for staff's recommendation that the Single Room Accommodation Permit be approved with the condition that $165,000 fee be paid into the reserve fund earmarked for replacement housing.
BACKGROUND
An owner wanting to demolish a building with designated SRA rooms must apply for and obtain a Single Room Accommodation permit. The decision whether or not to approve the application rests with Council. In making a decision Council must consider a number of factors including the supply of low cost accommodation, the quality of the SRA stock, and the future availability of low cost singles accommodation. Council may also attach conditions to the approval of the permit. These may include the owner entering into a Housing Agreement, a Heritage Agreement, or paying $5,000 per room into a reserve fund earmarked for the creation of replacement housing.
806 Richards (The Plaza Hotel) is included in Schedule A of the Single Room Accommodation By-law as the building has provided accommodation to permanent residents. City staff have had extensive discussions on the proposed redevelopment this site prior to the enactment of the By-law. With staff support, the applicant submitted both a development application (DE407615), as well as a rezoning application prior to the enactment of the Single Room Accommodation By-law.
In early 2003, the applicant negotiated a public amenity bonus with City staff and explored ways to `pay-in-lieu' for replacement housing that would be lost with the redevelopment of the site. On May 15, 2003 the applicant submitted a Development Permit application for a 16 story building (DE407615) and on July 25, 2003, a revised 17 storey application was submitted with a proposal to import heritage density and contribute $173,118 to the Affordable Housing Fund. In August 2003 the applicant submitted a rezoning application to allow an additional 10,492 sq ft (representing two typical tower floors) with a further $559,000 contribution to the Affordable Housing Fund. Staff supported these applications as it was agreed that a better project would be achieved through a rezoning. On September 29, 2003, the Development Permit Board approved DE407615 for the 17 storey building. On October 23, 2003 Council approved the rezoning in principle, including the condition to accept the contribution to the Affordable Housing Fund.
The Vancouver Charter requires that payments made under the SRA by-law be deducted from development cost levies to a maximum of the replacement housing component of the DCL By-law.
In order to ensure the viability of this project and to secure the substantial public benefits that have been committed, it is urgent that Council consider the approval of this permit in a timely manner.
FACTORS FOR CONSIDERATION IN GRANTING A SINGLE ROOM ACCOMMODATION PERMIT
The Single Room Accommodation Permit By-law requires that Council consider a number of factors in deciding whether or not to grant approval to a permit to demolish or convert a building with SRA rooms.
The Supply and Future Availability of Low Cost Accommodation
According to the Housing Centre's 2003 Survey of Low-Income Housing in the Downtown Core, over the last twelve years, the loss of units has basically kept pace with the creation for replacement units geared to low-income singles in the Downtown South (sub-area in which the Plaza is located). When the Downtown South Plan was created in the 1990s and the area was rezoned, it was anticipated that many of the SRAs (in this case, the single room occupancy hotels) would be lost. Council adopted a one-for-one policy in the Downtown South that was to be implemented through a variety of means including the construction of replacement housing, purchase of SRO hotels, etc. The City's Affordable Housing Fund, as well as the reserve fund created for the Single Room Accommodation By-law will both be used to assist with the construction of new replacement housing and to purchase or rehabilitate SRAs.
The Quality of SRA Housing
Like many SRAs, built in the early 20th century, the units in question require upgrading. The owner of the Plaza also informed staff that he was having difficulty securing insurance given the condition of the building.
The Plaza contains 33 SRA rooms, twenty of which were occupied when the development application was submitted in May 2003. Since that time, the owner has relocated all of the tenants according to a plan approved by the Director of the Housing Centre. The developer has indicated that the retention of the existing SRO housing is not economic or practical considering the relatively small size of the site. Staff note that redevelopment of this site to the maximum density allowed under existing zoning would likely require demolition of the existing SRO housing.
Other Public Benefits
Council may also consider a number of other factors in considering whether or not to approve an application for a Single Room Accommodation Permit. The development of this site will result in a number of significant public amenities and benefits to the city and the Downtown South in particular. A brief overview of these benefits is described below.
1. Housing
Prior to the enactment of the SRA By-law, the applicant and City staff developed a package yielding significant public benefits for the redevelopment of 488 Robson Street. In total, the contributions proposed by the applicant for the City's Affordable Housing Fund exceed $1.08 million (or $32,846 per SRA unit to be demolished). A more specific breakdown of the negotiated contribution is as follows:
Affordable Housing Fund related to DE407615 Heritage Density Transfer |
$ 173,118 |
Affordable Housing Fund related to Rezoning (+10,492 sq ft) |
$ 559,060 |
Housing Portion of Development Cost Levy (@47%) |
$ 318,745 |
Demolition of Rental Housing Fee at $1,000 per unit
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$ 33,000 |
Total |
$ 1,083,923 |
Staff are recommending that a condition of the SRA Permit be the payment of $165,000, representing $5,000 per room. The applicant has also paid the $100/room Single Room Accommodation permit application fee.
2. Public Amenity
The City has recently secured a public amenity facility as part of Development Permit DE407615. The City of Vancouver has made use of the Amenity Bonusing Program since the mid-seventies. The program encourages developers to accommodate social, recreational or cultural amenity facilities in new developments, in return for an increase in density. Following endorsement by City Council on September 18th, 2003, the Development Permit Board approved a 3158.6 m2 (34,000 sq ft) cultural amenity bonus, in exchange for 561.1 m2 (6,040 sq ft) public cultural amenity to be occupied by ArtStarts in Schools. ArtStarts is a registered non-profit organization offering artists, educators, parents and students a broad range of programs, services and resources to promote arts and creativity among young people. The Office of Cultural Affairs strongly supports the work of ArtStarts in Schools as it is well managed and has an excellent track record and strong level of community and senior government support.
3. Heritage
Through DE407615, the applicant received approval to import 5,246 sq. ft. of heritage density from a donor site. The applicant has proposed a contribution of $173,118 to the Affordable Housing Fund, representing the difference between the purchase price for the heritage density and the market value for the land of the buildable floor space in this area.
CONDITIONS OF APPROVAL
Staff recommend the approval of a Single Room Accommodation Permit to demolish the 33 designated SRA rooms at 806 Richards (the Plaza). The project has progressed to the state where a conditional development permit has been issued and Council has approved the rezoning in principle. As the application involves the demolition of SRO units, it is appropriate to attach a condition requiring payment of the SRA fee, which Council has established at $5,000 per unit.
FINANCIAL IMPLICATIONS
Prior to the enactment of the Single Room Accommodation By-law, the applicant and staff negotiated significant public benefits for the redevelopment of 488 Robson Street. In total, the contributions proposed by the applicant for the City's Affordable Housing Fund exceed $1.08 million (or $32,846 per SRA unit to be demolished).
SRA payments must be deducted from development cost levies that are payable. The full DCL amount that would otherwise be payable is $678,181. At the time of the DCL payment, $165,000 will be deducted from this amount.
The SRA fee payment of $165,000 will be deposited into a reserve fund earmarked for the creation of replacement housing.
CONCLUSION
Staff recommend the approval of a Single Room Accommodation Permit to demolish the 33 designated SRA rooms at 806 Richards Street (the Plaza) as the public benefits of this project will significantly contribute to the City's affordable housing and public amenity goals.
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