|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
December 16, 2003 | |
Author: |
Anne Kloppenborg | |
Phone No.: |
604-871-6031 | |
RTS No.: |
3782 | |
CC File No.: |
5104 | |
Meeting Date: |
January 15, 2004 |
TO: |
Standing Committee on City Services and Budgets |
FROM: |
Director of Social Planning in consultation with the Director of Real Estate Services, Facilities Design and Development, Legal Services and Budgets |
SUBJECT: |
101 East Cordova - Lease of City-owned Capital Asset to Atira Women's Resource Society |
RECOMMENDATION
THAT Council authorize the Director of Legal Services to execute, on behalf of the City, a lease/operating agreement granting to Atira Women's Resource Society a lease of a portion of the City-owned building located at 101 East Cordova Street legally known and described as Lot 22, BL 6, DL196, Plan 184, for a term of five years commencing February 1, 2004, at a nominal rent, renewable for two further five-year terms under substantially the same terms and conditions as are contained in the draft terms appended to this report, and on such further other terms and conditions as may be acceptable to the Directors of Legal Services, Real Estate Services and Social Planning, it being noted that no rights or obligations hereby arise or take effect pursuant to this resolution until the agreement has been executed by both the City and the Society
GENERAL MANAGER'S COMMENTS
The General Managers of Corporate and Community Services recommend approval of the foregoing RECOMMENDATION.
COUNCIL POLICY
In June, 1993, Council directed that City-owned properties occupied by non-profit organizations be held as assets in the Capital Fund and be charged a nominal rental rate.
On September 11, 2003, Council approved a framework for the lease of City-owned properties occupied by non-profit organizations being held as assets in the Capital Fund.
The lease or sublease of City assets below market value constitutes a grant and as such requires eight affirmative votes.
PURPOSE
This report seeks Council approval for a lease of 101 East Cordova, a City-owned Capital Asset, to Atira Women's Resource Society. Staff recommend a five-year lease of this 3,195 sq. ft space, subject to certain terms and conditions as outlined in the report. One of the terms is that Atira will sub-lease to The Inner-City Women's Initiatives Society, the operator of D.A.M.S. (Drug & Alcohol Meeting Support for Women). Both Societies assist marginalized women who live in the Downtown Eastside (DES)
BACKGROUND
This site ( APPENDIX A: Site Plan) was previously leased at a nominal rent to the YWCA Crabtree Corner, an emergency childcare and support centre for Downtown Eastside women and children. Crabtree occupied this space for 20 years and relocated to its new premises November 1, 2003. While the proposed programs require a Development Permit to change the use from childcare to social service centre, because childcare will no longer be provided, the focus on supports to women will remain.
Atira Women's Resource Society operates Bridge Housing, at Cordova and Columbia, as well as transition houses in Surrey and various outreach and support programs for women. Atira has initiated an economic development project for marginalized women living in Bridge and in the DES, and wishes to lease 101 E. Cordova for this program. Using and developing these women's skills as artisans/craftspeople, the program is intended to improve participants' opportunities for independence by providing social skill building, educational upgrading, and technical skill building, and to create a sustainable artisans' cooperative. The program will initially be offered to the 36 women at Bridge and then to additional women from the DES. Current funding is from Vancouver Foundation, Status of Women Canada and the National Crime Prevention Centre. The initial phase is approved to August, 2005, but Atira expects the pilot to run through 2006/7. Atira's longer term plan is to open a storefront elsewhere in the area where the women can sell their crafts. The centre at 101 E. Cordova would continue to provide the support/skill building component.
The Inner-City Women's Initiatives Society (D.A.M.S. Drug & Alcohol Meeting Support for Women) provides outreach, group, and one-to-one support for women with substance misuse issues. D.A.M.S. has worked with DES women since 1989, follows a harm reduction model, and works in partnership with other groups providing social and health supports to DES women. D.A.M.S was forced to move from its previous location (167 W. Pender) and is currently in a temporary location at 342 E. Hastings. The Society's major funder is Vancouver Coastal Health.
The two groups are proposing to share the building in a lease, sub-lease arrangement. (APPENDIX B: Letter) Atira has capital funding for minor renovations to accommodate the offices and other spaces needed for the two programs. The Societies have worked together in the past and believe that the two programs are complementary.
Staff see both programs as important for DES women, especially given current stresses on lower income women and groups which support them. Maintaining the old Crabtree space for women's services will provide stability for DAMS, an important harm reduction service, and support a new economic development opportunity for very marginalized women.
A Development Permit to change the use of the space from childcare to social service centre will be required. Atira is contacting adjacent neighbours and the Gastown BIA to provide information about the proposal. Consultations are still in progress, but several of the adjacent businesses have expressed support.
DISCUSSION
The two Societies have reviewed and agreed to the proposed lease terms. The following summarizes the key lease terms, which are detailed in APPENDIX C.
1. Term: 5-year lease at a nominal rent, commencing February 1, 2004.
2. Atira Women's Resources Society may not sublet without the City's permission, except that Inner-City Women's Initiatives Society may occupy approximately 1,000 sq. ft. of the space within the Premises. Atira Women's Resource Society and Inner-City Women's Initiatives Society will form a joint management committee overseeing the operation of the Premises.
3. The City will insure the Premises against fire and related perils as determined by the City's Director of Risk and Emergency Management.
4. Atira will be responsible for insuring all equipment and fixtures, and for maintaining comprehensive general liability insurance and tenant's legal liability in the amounts and types to the satisfaction of the City's Director of Risk and Emergency Management.
5. The City will be responsible for major capital repairs, as the City deems necessary, and for repair and maintenance of HVAC (heating, ventilation, air-conditioning), and fire alarms and sprinklers, including regular testing.
6. Atira will be responsible for the total cost of heating, lighting, and maintenance and repairs, other than those for which the City is responsible, as outlined in a Service Agreement which shall be appended to the lease agreement.
7. City to inspect premises annually to assure compliance.
8. All renovations or modifications to the premises are subject to approval by City.
The space at 101 E. Cordova is part of the City-owned Gastown Parkade. Building Services advises that because the HVAC is on the second floor of the parkade, and separate from the space to be leased to Atira, it is in the City's interest to continue to maintain this system. The fire alarm and sprinkler system will also be a City responsibility because they are part of the parkade's systems and cannot be accessed by Atira. Building Services has funding in its childcare maintenance budget for this building, and recommends transferring $4,000 to its Social Planning maintenance budget to cover the above-noted costs.
Atira Women's Resource Centre has capital funding for renovations to alter the washrooms and provide office partitions.
Lease terms are detailed in APPENDIX "C".
FINANCIAL IMPLICATIONS
The Director of Real Estate Services advises that the market rent for the subject property is $22,365 per annum. The lease of this space at a nominal rent constitutes a grant of $22,365 per annum or $118,825 for 5 years.
Building Services has funds in its existing budget for this building, for the above-noted HVAC and fire/sprinkler repair and maintenance. All other operating costs will be the responsibility of the tenant as outlined in the draft lease terms.
CONCLUSION
Staff recommend that Council approve a five-year renewable lease to Atira Women's Resource Society for the City-owned Capital Asset at 101 East Cordova Street.
- - - -
Agreement between the City of Vancouver (City)
and
Atira Women's Resource Society
DRAFT TERMS
Term: Five years commencing February 1, 2004, renewable for two further five-year terms
Rent: $10.00 payable in advance
Premises: Portion of the Premises at 101 East Cordova as outlined on the attached plan.
Lease: The City to grant:
_ A lease of the Premises as shown on plans to be appended to the agreement, for the purposes set out in the Use section below.
Use: The permitted uses of the Premises include:
_ operation of a Social Service Centre providing programs solely for women within the Mandate and Public Service Objectives established by the Society, appended to the agreement as a schedule, and approved by the City (see below);
_ purposes necessarily incidental to the operation of a Social Service Centre and permitted within the zoning.
Public Service Objectives:
As part of the lease agreement, the Atira Women's Resources Society's Mandate and Public Service Objectives, established by the Society, appended to the agreement, and approved by the City, will be used as annual and periodic performance measures. The Mandate and Public Services Objectives of the sub-lessee, The Inner-City Women's Initiatives Society will also be appended and similarly used as performance measures. The Societies may amend their Mandate and Public Service Objectives from time to time, subject to City approval.
Public Access:
The agreement will set a standard for equitable access for women to programs and services including minimum hours of operation, etc.
Subletting:
Atira Women's Resources Society may not assign or sublet any portion of the Premises without the City's permission except that Inner-City Women's Initiatives Society may occupy 1,000 (approx) sq. ft. of space within the Premises. Atira Women's Resource Society and Inner-City Women's Initiatives Society will form a joint management committee overseeing the operation of the Premises.
Insurance:
The City will insure the Premises against fire, vandalism and related perils as determined by the City's Director of Risk and Emergency Management.
Atira Women's Resource Society and Inner-City Women's Initiatives Society will be responsible for insuring all equipment, fixtures and furniture and will be required to maintain comprehensive general liability insurance as well as all risk broad form tenant's legal liability insurance in the amounts and types to the satisfaction of the City's Director of Risk and Emergency Management.
Utilities, Janitorial Services, Maintenance, Repairs and Security:
Atira Women's Resource Society to be responsible for the total cost of providing heating, lighting, fuel, water, garbage removal to the Premises as well as security services, all telephone and cable services, all maintenance and repairs to the premises (with the exception of the maintenance and repairs to the HVAC, fire alarm and sprinkler systems), as outlined in a Service Agreement which shall be appended to the lease agreement.
Subject to the will of Council and the resources available, the City will make such major capital repairs (including but not limited to repairs to the roof, bearing walls and floors, but not including floor coverings) as the City deems necessary. The City will be responsible for maintenance and repair of the HVAC, fire alarm and sprinkler systems. The definition of major capital repairs shall be detailed in the Service Agreement.
Improvements:
Consent is required to alter, erect, or modify (hereinafter referred to as "improvements") the Premises. In the event consent is given, the City may attach conditions or deadlines as it sees fit and Atira Women's Resource Society will be responsible for all costs of improvements, and claims or liabilities of any kind arising from the improvements.
Reporting to the City:
On or before June 30th of each year and at any time requested by the City, the Atira Women's Resource Society will provide to the City the following:
_ financial statements for the previous year, prepared at Atira Women's Resource Society's expense by a firm of chartered accountants and to include all operating, capital and special purpose funds;
_ an annual budget, approved by the Board of Directors, and including an estimate of all revenues and expenditures;
_ such other financial reports requested by the City from time to time;
_ a summary of activities for the past year demonstrating how they have fulfilled their Mandate and Public Service Objectives;
_ a summary of activities for the coming year detailing how such activities will work towards accomplishing Atira Women's Resource Society's Mandate and Public Service Objectives; and
Further, on request, Atira Women's Resource Society will submit minutes of all Board meetings to the City.
Atira Women's Resources Society and The Inner City Women's Initiatives Society shall maintain and preserve proper financial records and open these to the City for inspection at any time.
Early Termination:
The City may terminate the agreement prior to the end of the Term on the happening of any one or more of the following events:
_ Atira Women's Resource Society is in default on any payments owed to the City following 30 days notice;
_ Atira Women's Resource Society defaults in performing any other provision of this agreement;
_ the Premises are closed to the public for 30 days without the City's consent;
_ the Premises are not used to provide social services to the satisfaction of the City;
_ Atira Women's Resource Society fails to preserve, maintain and open business records to City inspection;
_ Atira Women's Resource Society becomes bankrupt, is wound up or dissolved;
_ by mutual consent.
And such other terms and conditions as may be satisfactory to the Directors of Legal Services, Real Estate, and Social Planning, it being noted that no rights or obligations hereby arise or take effect until the agreement has been executed by both the City and Atira Women's Resource Society.
Conditions of Sub-Lease
The above clauses on Use, Public Service Objectives, Reporting to the City and Early Termination shall also be clauses of the sub-lease to The Inner City Women's Initiatives Society, and the City shall be a party to the sub-lease for the purposes of enforcing those clauses.
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