|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
November 30, 2004 | |
Author: |
Rick Gates | |
Phone No.: |
871-6036 | |
RTS No.: |
4732 | |
CC File No.: |
5104 | |
Meeting Date: |
December 14, 2004 |
TO: |
Vancouver City Council |
FROM: |
Director of Social Planning in consultation with Directors of Legal Services and Real Estate Services and Manager of Facilities Design and Management. |
SUBJECT: |
Approval of Sublease at #300 - 1140 West Pender Street to the Community Legal Assistance Society. |
RECOMMENDATION
A. THAT City Council approve a sublease for a term of five years commencing February 1, 2005, of the site and improvements located at #300-1140 West Pender Street, to the Community Legal Assistance Society, at a nominal rent of $1.00 (one dollar) per annum plus the proportionate share of operating expenses; the sublease to be renewable for two further five-year terms under the terms generally described in this report and on terms satisfactory to the Director of Legal Services, in consultation with the Directors of Social Planning and Real Estate Services; it being noted that no rights or obligations hereby arise or take effect until the sublease indenture has been executed by both the City and the Society.
B. Council approve an expenditure of up to $60,000 for capital improvements to these premises prior to occupancy by the Community Legal Assistance Society; with funding to be provided in advance of the 2005 City-owned Social Services and Cultural Facilities Capital Budget
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of the foregoing.
COUNCIL POLICY
The change of use of three floors of the building to office use at this location was granted by Council in 1984, on the condition that the owner provides 1,750 sq.ft. on the ground floor and 10,289 sq. ft. on the third floor as amenity bonus space, rent free for the life of the building.
The Amenity Bonusing Program, as approved by Council in 1986, provides for the sublease of amenity bonus space to Vancouver-based non-profit social services and/or cultural organizations at nominal rates and includes a series of requirements and obligations of the subtenant with respect to public service and financial management.
The lease or sublease of City assets below market value constitutes a grant and as such requires eight affirmative votes.
PURPOSE
The purpose of this report is to request Council approval of a sublease for an amenity facility at #300-1140 West Pender Street to the Community Legal Assistance Society (CLAS).
BACKGROUND
Council policy and practice has been to seek non-profit uses for amenity spaces and facilities which encourage a diversity of cultural, social and recreational uses in the downtown with a focus on public participation, including live theatres for the performing arts, film theatres, galleries for the display of art, public exhibition halls, public education and childcare facilities.
This particular bonus space, located at #300-1140 West Pender Street, has been sub-leased continuously to the Legal Services Society (LSS) since 1984 for the purpose of public legal education, programs and services. LSS vacated the premises on October 14, 2004. Until such time as a new sublease is put in place, the City is responsible for paying the proportionate share of operating expenses, which is approximately $11,100 per month.
DISCUSSION
The Community Legal Assistance Society (CLAS) is currently located at a downtown office and at Riverview Hospital. Their current spaces are insufficient to meet their needs. As the services provided by CLAS, and their space needs, are quite similar to those of LSS, which has been subleasing this space for the last 20 years, staff believe that it is appropriate to offer the new sublease to CLAS.
CLAS was incorporated as a non-profit Society in 1971. CLAS provides legal advice and assistance to people who are physically, mentally, socially, economically and otherwise disadvantaged and to the groups who represent them.
The programs provided by the Society include:
· The Community Law Program, which provides free legal assistance to financially eligible low income people in the areas of poverty, workers compensation and employment insurance law;
· The Disability Law Program, which provides free legal assistance to people with physical and mental disabilities;
· The Human Rights Clinic, which provides free representation to complainants at Human Rights Tribunal hearings;
· The Law Students Legal Advice Program, supervised by CLAS. Over 200 law students provide free legal advice to low income people at clinics in Vancouver and other areas in the lower mainland. Clinics are also held in the CLAS office for four months of the year. (The City has been providing a Community Services Grant for this service for many years; the 2004 grant was for $42,420)
· The Mental Health Law Program, currently located on the Riverview Hospital grounds, will be relocated to the West Pender location when CLAS moves from its current location. CLAS provides free legal representation to people with mental health issues.
· CLAS also houses PovNet, an internet site for advocates, people on welfare, and community groups and individuals involved in anti-poverty work.
The building was constructed in 1984 and the amenity space has had limited capital improvements over the years. As a minimum, new carpeting and repainting is needed throughout, at an estimated cost of $60,000 (approximately $6.00 per square foot). Some additional renovation is required to make the space suitable for occupancy by CLAS. The Society has secured funding, totalling $140,000 for these additional tenant improvements, furnishings and moving expenses.
Public Legal Education Society vacated the space October 14, 2004. As holder of the head lease, the City is responsible for the operating costs, approximately $11,000 per month, until a new sub-lessee moves in. Because of CLAS's need to provide notice in their existing premises, confirm the balance of the funding, and complete the capital improvements within the space (which will take 6-8 weeks), staff are recommending that the sublease with CLAS commence February 1, 2005. The holding costs to the City for the period October 15 - February 1, 2005, are estimated at $40,000.
The sublease
The terms of the proposed new sublease with the Community Legal Assistance Society are as generally outlined on APPENDIX "A" of this report, as well as other terms as are required by and satisfactory to the Director of Legal Services in consultation with the Directors of Social Planning and Real Estate Services. It is virtually identical to the sublease that was held by LSS.
FINANCIAL IMPLICATIONS
The 2003-2005 Capital Plan included an allocation of $1,750,000 for City-owned Social Service, Childcare and Cultural facilities. $680,000 has been allocated to date. The proposed $60,000 allocation in this report, which will be in advance of the 2005 Capital Budget, will leave $1,010,000 available in 2005, which is proposed for renovations to the Vancouver East Cultural Centre, the City's collections storage improvements and childcare facility development and renovations, all of which will be reported to Council in the new year.
Once the sublease has been executed, all occupancy costs, including maintenance, are the responsibility of the subtenant. There are no financial implications from that point forward for the City of Vancouver, beyond inspection by Facilities Design and Management staff.
CONCLUSION
Staff recommend approval of a new sublease to the Community Legal Assistance Society for the provision of legal services to those who otherwise would not be able to afford access.
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APPENDIX A
BASIC SUBLEASE TERMS
Term: Five years commencing February 1, 2005, and renewable for two further five-year terms.
Rent: $15.00 payable in advance, plus the proportionate share of common expenses required to be paid by the City in the head lease, to be paid monthly.
Premises: #300-1140 West Pender Street
Registration:
The sublease indenture will not be registered in the Land Title Office.
Use:
The permitted use of the Premises is restricted to:
· the operation of a legal services facility; and
· purposes necessarily incidental to the operation of a legal services facility and permitted within the applicable zoning.
Public Service Objectives:
As part of the Agreement, the Society's Mandate and Public Service Objectives (draft to be provided by the Society for City approval) shall be included and used by the City as annual and periodic performance measures. The Society may amend the Mandate and Public Service Objectives from time to time with prior written City approval.
Improvements:
Prior to the Society making any alterations, erections or modifications (hereinafter collectively referred to as "Improvements") to the Premises, the Society shall obtain the City's written consent as well as the Head Landlord's, as required. In giving its consent, the City may attach such conditions or deadlines as it sees fit and the Society shall be responsible for all costs of Improvements, and claims or liabilities of any kind arising from the Improvements.
Utilities, Janitorial, Maintenance and Repairs:
A Service Agreement shall form a Schedule to the Sublease and shall itemize the responsibilities of the Head Landlord, Sub Landlord (City) and Society. In general, the Society shall be responsible for all security systems, janitorial services, maintenance and repairs such as lighting and appliance replacement and repairs, etc. Major capital repairs such as special assessment for roof replacement, building envelope repairs, foundations, infrastructure services (water, sewage, power) and building systems (excluding security systems), shall be the responsibility of the Head Landlord where provided for in the Head Lease. The Society shall be responsible for paying all costs passed on to the City through the Head lease. The Society shall be required to budget for an adequate maintenance reserve within its annual operating budget to meet the obligations in the Sublease.
Reporting to the City:
On or before January 31 of each year, or at any time requested by the City, the Society will provide to the City the following:
· Board-approved financial statements for the previous year, prepared at the Society's expense by an accounting professional. Such statements shall include all operating, capital, maintenance reserve and special purpose funds and shall itemize administrative and program costs;
· a balanced annual budget including an estimate of all revenues and expenditures;
· a summary of activities for the past year demonstrating how the Society has fulfilled its Public Service Objectives;
· evidence of a functioning/governing Board of Directors; and
· a summary of planned activities for the coming year. Further, if requested by the City, the Society shall submit to the City minutes of all Board meetings.
Indemnification:
The Society shall indemnify the City for any costs, losses, suits, or expenses incurred by the City arising as a result of the Society's use and occupation of the Premises.
Insurance:
The Society shall be responsible for insuring all equipment, fixtures and furniture and shall be required to maintain comprehensive general liability insurance as well as all risks 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.
The Head Landlord shall be responsible for insuring the building against fire and certain other perils. To the extent that these costs are passed on to the City through the Head lease, the City will pass on these costs to the Society.
Laws, Regulations and Requirements
The Society shall comply with all laws and regulations relating to its operation of a Facility and shall provide evidence with such compliance on request by the City. The Society shall also comply with any requirements imposed on the Society by the City as Landlord in connection with the Society's operation of the Facility on the Premises including the obligation to comply with all federal, provincial and municipal laws and by-laws, including the British Columbia Human Rights Code, which prohibits discrimination in many areas including in publications which are likely to expose a person or a group or class of persons to hatred or contempt because of the race, colour, ancestry, place of origin, religion, marital status, family status, physical or mental disability, sex, sexual orientation or age of that person or that group or class of persons.
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:
· the Society is in default on any payments owed to the City following 30 days notice;
· termination of the head lease of the premises;
· the Society defaults in performing any other provision of the sublease, including, without limiting the generality of the foregoing, failure to comply with any laws or regulations relating to its operation;
· the Premises are not operated as a legal services facility, as described in the Public Service Objectives agreement for more than 30 days without the City's prior written consent;
· the Premises are not used in the operation of a legal services facility to the satisfaction of the City;
· the Society becomes bankrupt, is wound up or dissolved;
· mutual consent; or
· substantial destruction of the Premises or the building in which the Premises are situated.
Options to Renew:
The Society may only exercise its options to renew if it has not defaulted under the sublease.
Additional Provisions and Qualifications:
The Sublease shall contain such other terms and conditions as may be satisfactory to the City's Directors of Legal Services, Facilities Design & Development, Social Planning and Risk and Emergency Management, it being noted that no rights or obligations hereby arise or take effect until the Sublease has been executed by both the City and the Society.
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