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CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
January 22, 2004 | |
Author: |
Cameron Gray | |
Phone No.: |
873-7207 | |
RTS No.: |
03892 | |
CC File No.: |
5104 | |
Meeting Date: |
February 10, 2004 |
TO: |
Vancouver City Council |
FROM: |
The Director of the Housing Centre in consultation with the Directors of Real Estate Services, Social Planning and Current Planning |
SUBJECT: |
Selection of Tenant for Watson House: 1125 Pendrell St. |
RECOMMENDATION
A. THAT Council approve leasing Watson House at 1125 Pendrell St. (PID 025-399-829) to the Mole Hill Community Housing Society with the Coast Foundation as the operator on the terms and conditions set out in this report and in the Letter of Understanding attached as Appendix A,
B. THAT Council approve a nominal lease of Watson House to the Mole Hill Community Housing Society, with the lease to terminate on January 2, 2062, and approve a grant of $280,000 to the Mole Hill Community Housing Society, funding to be provided in advance of the 2004 Affordable Housing Basic Capital budget, and
C. THAT no legal rights or obligations shall arise or be created until all legal documentation has been fully executed on terms and conditions to the satisfaction of the City's Director of Legal Services.
Recommendation B proposes a grant, and requires 8 affirmative votes of Council.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of the foregoing.
COUNCIL POLICY
Council's affordable housing priorities are to maintain and expand housing opportunities for low and modest income households with priority being given to families with children, seniors on fixed incomes or in need of support, SRO residents, and the mentally ill, physically disabled, and others at risk of homelessness.
Council policy is to lease sites for affordable housing for 60 years at 75% of freehold market value.
The approval of grants requires the support of 8 members of City Council.
PURPOSE
This report seeks Council approval for a lease of Watson House (1125 Pendrell St.) to the Mole Hill Community Housing Society with the Coast Foundation Society as the operator. The location of Watson House is noted on Figure 1.
Figure 1
BACKGROUND
In 1987, Council accepted the gift of Watson house, an `A' listed heritage building from its private owner. The house was moved to 1125 Pendrell St. in 1989. Since then, Watson House has been leased, first to BC Housing and later directly to the operator, for use as a Special Needs Residential Facility for street youth.
In 2002 the street youth operation relocated to a property owned by BC Housing. On April 22, 2003, Council authorized a Request for Proposals for the use of Watson House for report back to Council on the selection of a tenant and lease terms.
DISCUSSION
A request for proposals from non-profit groups to renovate, operate and maintain Watson House was undertaken, with the proposals due July 31, 2003.
Four proposals were received:
· Mainstream Association for Proactive Community Living who proposed to renovate Watson House to accommodate 3 people and run lifeskills, recreation and related programs for the special needs of individuals with life challenges;
· Mole Hill Community Housing Society who proposed to renovate Watson House to accommodate 8 individuals with the Coast Foundation Society to operate the building and to provide services for persons with mental illness;
· Watson House Museum and Bed & Breakfast which proposed a for-profit bed and breakfast on the upper floors with a museum on the ground floor to which the public would have access with donations to the Vancouver Heritage Foundation; and
· Women's Addiction Foundation and Pacifica Treatment Centre who proposed to renovate Watson House for a Women's Recovery Resource centre (offices, meeting rooms, etc.) on the ground floor and a 10 bed recovery house for women coming out of detox on the 2nd and 3rd floors.
The four proposals were reviewed by Real Estate, Social Planning, Heritage and Housing from the perspective of social service, heritage restoration and financial viability. It was the unanimous conclusion that the Mole Hill Community Housing Society proposal with Coast Foundation Society as the operator was the most viable and offered the greatest benefit to the City. Mole Hill has a commitment from BC Housing to provide a capital grant and to provide construction financing, and a commitment from Vancouver Coastal Health to provide operating funding for 10 years to cover the cost of the services to be provided by Coast Foundation. A Letter of Understanding setting out the arrangements is attached as Appendix A.
Coast Foundation operates Hooper Place at the corner of Bute and Pendrell, which provides 31 units of housing for persons with mental illness, and Coast already provides counselling and other services to residents of Mole Hill. Mole Hill and Coast have developed a successful partnership, which Watson House will extend.
The estimated cost of renovating Watson House is $700,000. The operating budget indicates that project can support a mortgage of $220,000. BC Housing has agreed to guarantee the mortgage and has also agreed to provide a capital grant of $200,000. Mole Hill made a submission to Human Resources Development Canada's Supporting Community Partnerships Initiatives 2003 proposal call for the remaining $280,000 required in capital funding. They were unsuccessful, and it is recommended that the City approve a grant of $280,000 to the Mole Hill Community Housing Society, funding to be provided in advance of the 2004 Affordable Housing Basic Capital budget to enable the project to proceed. The renovation and operation of Watson House is important to the long term success of the Mole Hill community.
FINANCIAL IMPLICATIONS
All the proposals required that the City make Watson House and its site available at no cost and a nominal lease represents a grant. In addition, a capital grant of $280,000 from the Affordable Housing Fund is recommended for the Mole Hill/Coast proposal. Grants require 8 members of of Council to vote in favour.
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