Vancouver City Council |
ADMINISTRATIVE REPORT
Date: November 16, 2004
Author/Local: P. Vaisbord/6304
RTS No. 04629CC File No. 8314
Meeting Date: November 30, 2004
TO:
Vancouver City Council
FROM:
Director of City Plans
SUBJECT:
Approval of Council Initiative - Strathcona BIA Renewal
RECOMMENDATION
A. THAT Council re-confirm the Strathcona Area Merchants Society as sponsor for the Strathcona BIA.
B. THAT Council approve the commencement of a Council Initiative to re-establish (renew) the Strathcona BIA, for a second five-year term commencing April 1, 2005; AND THAT Council forward the application of the Strathcona Area Merchants Society to a hearing of the Court of Revision.
C. THAT the City notify property owners and tenants within the area, outlined in Appendix A (LIMITED DISTRIBUTION - ON FILE IN CITY CLERK'S OFFICE) of the proposed BIA renewal and levy.
D. THAT Council approve a 5 year (2005 -2010) funding-ceiling of $2,250,000 for the Strathcona BIA, subject to Council approval of the renewal at the Court of Revision.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of the foregoing.
COUNCIL POLICY
Council policy for the renewal of a BIA was approved on July 30, 1992 as follows:
A BIA is renewed (re-established) by Council Initiative process; property owners and commercial tenants receive notification of the Initiative. The renewal generally will not be approved if one third or more of the owners, representing one third of the assessed property value, or one third of the tenants, counted separately, are in opposition.
Section 462 of the Vancouver Charter was amended on September 23, 1998 to permit BIA renewal terms of up to 20 years. Council has exercised its authority under the amendment by approving ten year renewal terms for the Mount Pleasant and Downtown Vancouver BIAs.
PURPOSE
The Strathcona BIA was approved in 2000 for an initial 5-year term which expires March 31, 2005. The BIA must now be re-established (renewed) for a further term to continue to operate. The Strathcona Area Merchants Society (SAMS) has completed the first step in the BIA renewal process. The purpose of this report is to commence the second step, which is to re-confirm SAMS as BIA sponsor, to approve a Council Initiative to renew the BIA, to forward the renewal application to the Court of Revision, and to approve the proposed 5 year funding ceiling.
BACKGROUND
The Strathcona BIA was one of five BIAs established under the Council Initiative process in 2000, along with the Chinatown, Commercial Drive, Fraser Street*, and Marpole BIAs. The Strathcona Area Merchants Society wishes to renew the BIA for a second 5 year term (April 1, 2005 - March 31, 2010). No boundary changes are proposed at this time.
*The Fraser Street BIA has been inactive, has not received funding, and will not be renewed.
DISCUSSION
The BIA boundary comprises a large area bounded roughly by East Hastings, Gore, CPR right-of-way, Clark, Venables and Raymur. A map of the boundary is attached as Appendix A.
SAMS proposes a Year 1 renewal budget of $395,000, representing an annual levy rate of $1.80 per $1,000.00 of assessed property value. A copy of the proposed budget is attached for information as Appendix B (LIMITED DISTRIBUTION - ON FILE IN CITY CLERK'S OFFICE). If Council approves the Strathcona BIA renewal at the Court of Revision, staff will report back for approval of the Year 1 budget along with all of the other BIAs' 2005 - 2006 budget requests.
The proposed funding-ceiling of $2,250,000 is the maximum amount that may be levied over the Strathcona BIA renewal term, and reflects an increase of 80% over the previous 5 year ceiling.
Membership Outreach Activities
The Strathcona BIA has a total of 878 commercial property owners and tenants (366 property owners and 512 tenants).
Renewal outreach began in January 2004, with a targeted survey of 50 property owners, tenants, service providers and community leaders. The survey was conducted in person by interview, and was designed to identify neighbourhood and member needs and ideas. Of the 50 interviewees, 21 were commercial property owners or tenants within the BIA (2.4% of total number of owners and tenants). This was not intended as a representative sample. SAMS interviewed those contributing the highest dollar amounts to the BIA levy, on the basis that those contributors would be most sensitive to deriving value from BIA expenditures. This group included 13 property owners (3.6% of owners) and 8 commercial tenants (1.6% of tenants).
Between February and August 2004, SAMS held four meetings to discuss BIA renewal. Invitations were delivered to all commercial property owners and tenants prior to each of the meetings.
The first of two Open Houses was held on February 19. The purpose of the meeting was to obtain input on a draft Strategic Plan based in part on the January interviews. Participants were asked to rank their top three initiatives. Thirty-one commercial property owners and tenants attended (3.5% of total). Participants included 9 property owners and 22 commercial tenants.
On April 29, a second Open House was held to generate discussion on a 5-year Strategic Action Plan based on the previous member input. Participants reviewed large-format charts posted on the walls of the venue. Twenty-one owners and tenants attended (2.4% of total). Participants included 11 property owners and 10 tenants.
On August 10, SAMS held a `Renewal Luncheon' to present a finalized Strategic Action Plan. Meeting invitations included a document providing background about the BIA and BIA renewal, a description of current programs, the 5-year Plan, and a proposed BIA renewal budget. The City's BIA Program Coordinator explained the BIA renewal process. SAMS directors outlined the renewal Plan and budget, followed by discussion. Forty-one owners and tenants attended (4.6% of total). Participants included 13 property owners and 28 commercial tenants.
On August 24, to discuss concerns regarding the levy increases inherent in the proposed budget, SAMS held a `Renewal Budget Luncheon' to specifically address proposed budget line items and the 5-year levy projections. Ten owners and tenants attended (1.1% of total). Participants included 6 property owners and 4 commercial tenants. The City's BIA Program Coordinator again explained the renewal process and answered questions. SAMS directors undertook a detailed explanation of proposed BIA expenditures, followed by both positive and negative comments from participants. SAMS subsequently reduced proposed expenditures by approximately 20%.
In early September, SAMS formally notified all of the property owners and commercial tenants of its upcoming annual general meeting (AGM). The AGM package contained a detailed outline of the BIA renewal process, a summary of the Strategic Action Plan, and a revised budget and 5-year funding ceiling.
The SAMS AGM was held on September 27, 2004. Twenty-one voting members (2.4% of total property owners and commercial tenants) were in attendance at the AGM, including 14 property owners (3.8% of total owners) and 11 tenants (2.1% of total tenants). Four proxies were also exercised. The proposed renewal, 5-year funding ceiling, and 2005-2006 budget were approved unanimously.
Based on the AGM results and member input received to date, SAMS believes that the 2005-2010 renewal plan, the proposed 5-year funding ceiling, and the Year-1 budget are generally supported. SAMS formally applied to the City for renewal of its mandate on November 3, 2004. A copy of their application letter, a further letter outlining their outreach process, and documentation of their outreach material, is attached as Appendix C (LIMITED DISTRIBUTION - ON FILE IN CITY CLERK'S OFFICE).
Staff Comments - Membership Outreach and Support
Staff are satisfied that SAMS has notified all commercial property owners and tenants within the proposed renewal area. Although the member participation rate for SAMS' renewal activities was lower than 5% (due to the large total number or property owners and tenants) the actual numbers attending were similar to other BIA renewals. Despite initial concerns about budget increases, the BIA renewal and a (reduced) renewal budget received unanimous approval at the Annual General Meeting. Although only about 2.4% of BIA property owners and businesses were represented at the meeting, the number in attendance was above the required quorum of 15 present in person. As the participation rate in BIA AGMs is generally low, AGM results are not necessarily an indicator of general property owner/merchant support for renewal.
SAMS reports that as of the date of this report, no property owners or businesses have contacted the BIA to express opposition to the renewal proposal. Staff received a couple of concerned telephone calls prior to the Budget Luncheon. Otherwise, no calls or correspondence have been received expressing opposition or concern regarding the renewal proposal.
CONCLUSIONS
The Strathcona Area Merchants Society is requesting that Council consider approval of its proposed 5 year renewal term and 5 year funding ceiling of $2,250,000 and has asked that their application be forwarded by way of Council Initiative to a Court of Revision. The results of SAMS outreach activities indicate minimal opposition at this stage in the process. If Council approves the Strathcona BIA renewal at the Court of Revision, staff will report back for approval of the Year 1 budget along with all of the other BIAs' 2005 - 2006 budget requests.
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