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CITY OF VANCOUVER ADMINISTRATIVE REPORT | |||
Date: |
February 24, 2004, | |||
Author: |
Celine Mauboules | |||
Phone No.: |
6198 | |||
RTS No.: |
03998 | |||
CC File No.: |
4657 | |||
Meeting Date: |
March 9, 2004 | |||
TO: |
Vancouver City Council |
FROM: |
Director of the Housing Centre in consultation with the Director of Current Planning and the Director of Legal Services |
SUBJECT: |
Single Room Accommodation Permit for 24 Water Street (The Grand) |
RECOMMENDATION
THAT City Council approve a Single Room Accommodation Permit for 24 Water Street (The Grand) on the condition that prior to issuing the SRA Permit, the owner enter into a Heritage Revitalization Agreement approved by Council at a Public Hearing, drawn to the satisfaction of the Director of Legal Services and executed by her behalf of the City.
CITY MANAGER'S COMMENTS
The City Manager supports the recommendation of staff that Council approve the conversion of the Grand Hotel from Single Room Accommodation (SRA) to market condominium housing and retail, subject to the future approval by Council of a Heritage Revitalization (HRA) permit. The fact that the building has been vacant for 30 years and is a blight on the neighbourhood justifies in this case, allowing the conversion without requiring $5,000/room as permitted by the City's SRA By-law. The City Manager, however, is concerned with the possible expectation that the conversion of heritage SRA buildings will, in general, be allowed to proceed without payment of the $5,000/room fee. Heritage projects involving the conversion of SRA may well be able to afford both the fee and the upgrading required by an HRA, and it should not be assumed that the $5,000/room fee can be avoided simply by entering into an HRA. Staff will be reporting to Council later this spring with an update on the SRA By-law. As part of that report, staff will be addressing the relationship between the City's SRA and heritage preservation objectives, so that Council can provide clear direction to SRA owners, tenants and City staff regarding the balancing of these two important City priorities.
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 require the owner to fulfil certain conditions prior to issuing the permit.
PURPOSE AND SUMMARY
This report provides a brief overview of Robert Fung's (the Salient Group) proposed redevelopment for 24-26 Water Street which requires a Single Room Accommodation Permit for the demolition of 44 rooms at the Grand Hotel (24 Water Street); as well as a rationale for staff's recommendation that the Single Room Accommodation Permit be approved on the condition that the owner enter into a Heritage Revitalization agreement.
BACKGROUND
An owner wanting to convert or demolish 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 Revitalization Agreement, and paying $5,000 per room into a reserve fund earmarked for the creation of replacement housing.
24 Water Street (The Grand) is included in Schedule A of the Single Room Accommodation By-law as the building has provided accommodation to permanent residents. However, the building has been closed for roughly 30 years and therefore these rooms have not effectively been part of the SRA stock available to low-income tenants.
PROPOSED PROJECT
The owner, Robert Fung (Salient Group) is proposing to consolidate the 24 Water Street site with the adjacent property to the west (the Terminus Hotel, which was destroyed by fire in 1998 is not designated SRA) to create a new market residential project while also providing seismic stability to an adjacent heritage building located to the east. The two Water Street facades of the former Grand and Terminus Hotels will be retained, but it is uncertain at this point whether the main structure of the Grand Hotel can be retained.
The work required on the proposed project is considerable and Mr. Fung is therefore seeking some certainty on the SRA Permit. He has had very preliminary discussions with development services and heritage staff and intends to submit the development permit application after Council makes a decision on whether or not to grant the Single Room Accommodation Permit to demolish or convert the 44 designated rooms in the Grand (24 Water Street). Following the Development Permit, the terms of this Heritage Revitalization Agreement will be subject of a further Council report and approval of the required By-law.
Staff are recommending Council approve the Single Room Accommodation on the condition that the owner enter into a Heritage Revitalization Agreement and not pay the $5,000 per room fee for a number of reasons. This project will serve to redevelop an important site in Gastown. The Grand Hotel has not provided accommodation to permanent resident for a number of years as it has been vacant. The adjacent heritage property was destroyed by fire in 1998 and the proposed project would redevelop this site and would secure substantial heritage benefits including the retention of heritage facades on Water Street as well as providing seismic stability to a third heritage building.
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
While there were significant losses leading up to the Expo 86 period, according to the Housing Centre's "2003 Survey of Low-Income Housing in the Downtown Core", between January 1991 and March 2003, the creation for replacement housing geared to low-income singles in the Downtown Eastside, Chinatown, Gastown and Strathcona has kept pace with the loss of SRA rooms. However, as also noted in the Survey the rate of change in the SRO stock has been volatile with two peak years accounting for almost half the losses between 1991 and 2003. While the Province continues to provide funding for the creation of housing through its Independent Living program, these units are not geared to low-income singles - individuals that typically live in SRA rooms. The Single Room Accommodation By-law is a tool that allows Council to manage the rate of change in the low-income housing stock by considering each conversion or demolition on a case-by-case basis.
The Quality of SRA Housing
As noted, the Grand has sat vacant for a number of years. There is little economic viability to returning the vacant SRA rooms to providing accommodation to permanent residents as this would require significant upgrades, the cost of which could not be recovered through rents chargeable for SRA.
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. While the exact heritage benefits have not been finalized, staff believe that an agreement will be reached that will result in a number of significant heritage benefits to the city in general and Gastown in particular.
CONDITIONS OF APPROVAL
Staff recommend approval of a Single Room Accommodation Permit to demolish the 44 designated SRA rooms at 24 Water Street (The Grand). As the building has been vacant for so many years, and because the project, if approved, will significantly benefit the redevelopment of Gastown while preserving valuable heritage buildings, staff recommends the approval of the Single Room Accommodation permit on the condition the owner has first entered into a Heritage Revitalization Agreement drawn to the satisfaction of the Director of Legal Services. The Heritage Revitalization Agreement will require Council approval at a Public Hearing, and enactment of the authorizing By-law.
CONCLUSION
This report recommends that Council approve the Single Room Accommodation Permit to demolish the 44 designated SRA rooms at 24 Water Street (the Grand) on the condition that the owner enter into a Heritage Revitalization Agreement. The Grand has been vacant for a number of years and if approved, this project will significantly contribute to the City's heritage goals.
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