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CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
March 16, 2004 | |
Author: |
Kathy Morgan | |
Phone No.: |
604-873-7760 | |
RTS No.: |
04086 | |
CC File No.:2608 |
2604 | |
Meeting Date: |
April 8, 2004 |
TO: |
Standing Committee on Planning and Environment |
FROM: |
Chief Building Official, in consultation with the Director of City Plans |
SUBJECT: |
1628 Station Street
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CONSIDERATION
THAT Council consider the request for an extension of Building Permit No. BU421214 for 1628 Station Street and either:
A. Approve an extension until October 15, 2004
OR
B. Refuse the request for an extension and require the applicant to submit a new application for a Building Permit.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services submits the choice of A or B for Council's CONSIDERATION.
COUNCIL POLICY
Article 1A.7.5.1 of the Vancouver Building By-law addresses actions the City can take when an applicant, who has received a Building Permit, is not proceeding with active work under the permit. The By-law prohibits the Chief Building Official from granting more than one extension to a Building Permit. Any further extensions can only be approved by Council.
On January 28, 2000, the interim city-wide Vancouver Development Cost Levy By-law was enacted. On May 8, 2001, the False Creek Flats DCL By-law was enacted, which requires payment of a layered DCL in addition to the Vancouver DCL. On January 13, 2004, the Vancouver DCL By-law was amended to increase the rates effective February 1, 2004. On February 12, 2004, the Vancouver DCL By-law was amended to reduce the rates for a temporary period until June 30, 2004.
PURPOSE
This report seeks Council's direction on the extension of a Building Permit for 1628 Station Street. The extension is complicated by changes to City By-laws with respect to Development Cost Levies (DCLs).
BACKGROUND
Building Permit No. BU421214 was issued on June 12, 2002 for Phase I of the construction of a new five-storey laboratory/office building with grade level covered parking at 1628 Station Street. Work commenced but was discontinued at the slab-on-grade stage. The applicant applied for an extension in March of 2003 and it was approved by the Chief Building Official until October 15, 2003, subject to payment of outstanding Development Cost Levies (for added floor space) prior to approval of Phase II under the Certified Professional Program. The owners paid the outstanding DCLs owing and applied for a second extension, which was approved by Council on October 21, 2003.
There has been no change to the zoning for the property (I-2 - Industrial District). Related Development Permit No. DE405561 was issued June 7, 2001 for the construction of two buildings on this site. Building A, at 1618 Station Street, has been completed. A minor amendment for alterations and additional floor space for Building B,1628 Station Street, was issued June 11, 2002. If the Building Permit is not extended, it would be necessary for the applicant to apply to the Director of Planning to consider renewal of the Development Permit as it pertains to Building B.
Due to its location, 1628 Station Street is subject to the Vancouver DCL as well as the layered False Creek Flats DCL.
DISCUSSION
The site owners, Discovery Parks Incorporated, have requested another extension as the biotech market remains very soft and despite exhaustive efforts they have not been able to secure an anchor tenant for the building. Until an anchor tenant has been found, the Discovery Parks Trust board advises that they cannot allow the project to progress beyond its current slab-on-grade stage because of the potential financial exposure to the company. They note that it would be extremely difficult to secure normal financing without any pre-leasing in place. They advise that they have a considerable investment in the project and have every intention of continuing with construction as soon as an anchor tenant has been found.
Previous requests for extensions of Building Permits issued prior to the Vancouver DCL were addressed by Council in two ways. In January 2001, one year after the Vancouver DCL By-law was enacted, two requests for extensions were approved by Council, one for a new office building at 1177 West Pender Street and one for a new mixed-use building at 1050 Smithe Street. In July 2001, Council rejected a request for a third extension of the permit for 1177 West Pender Street. The discussion at that time focussed on the amount of lapsed time since the DCL By-law came into effect.
In February 2003, Council refused a request for the extension of a permit at 2900 East Broadway where two of three office-type buildings had been constructed and one had not. As above, no DCL had been paid for the project and three years had passed since the Vancouver DCL By-law was enacted. The project was also located in the Grandview-Boundary DCL area and no layered DCL had been paid.
In December 2003, Council approved a request for the extension of a permit for the construction of three production studio buildings at 3600 Cornett Road. In this case, the Vancouver DCL was paid but the layered DCL for Grandview-Boundary was not paid as the permit was issued just prior to enactment of the By-law. Approximately one year had passed since enactment.
This request for 1628 Station Street differs from the ones mentioned above as the main issue in this case is the recent rate increase for the Vancouver DCL area.
This report puts forward two options for Council's consideration. Council could choose to approve a six month extension on the grounds that three other applicants had received this consideration. On the other hand, Council could conclude that, as with the July 2001 and February 2003 requests, an extension not be granted.
FINANCIAL IMPLICATIONS
Development Cost Levies in the amount of $321,066.90 have been paid ($80,248.08 for the Vancouver DCL area at $1.00 per square foot and $240,818.82 for the False Creek Flats DCL area at $3.00 per square foot). If this permit is extended and work commences within the extension period, there will be no additional DCL payment required.
If Building Permit No. BU421214 is not extended, the applicant would be required to submit a new application for a Building Permit. The new application would be subject to all required permit fees plus Development Cost Levies at the rates in effect at the time of permit issuance.
If a new Building Permit is issued on or before June 30, 2004, the Vancouver DCL would be $128,426.76 ($1.60 per square foot) and the False Creek Flats DCL would remain at $240,818.82 ($3.00 per square foot) for a total DCL of $369,245.58, being an increase of $48,178.68.
If a new Building Permit is issued after July 1, 2004, the Vancouver DCL would be $192,490.98 ($2.40 per square foot) and the False Creek Flats DCL would remain at $240,818.82 ($3.00 per square foot) for a total DCL of $433,309.80, being an increase of $112,242.90.
CONCLUSION
As there is no Council policy on extensions to Building Permits when DCL rates have increased, this matter is put forward for consideration. Council could choose to treat this request in a similar manner to two requests in January 2001 and a request in November 2003 and approve an extension. Alternatively, Council could treat this request in a similar manner to the requests in July 2001 and February 2003 and refuse to grant an extension.
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