CITY OF VANCOUVER
ADMINISTRATIVE REPORT
Vancouver City Council |
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CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
March 2, 2005 | |
Author: |
Z. Jankovic/
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Phone No.: |
6448/6077 | |
RTS No.: |
04965 | |
CC File No.: |
1401-79 | |
Meeting Date: |
March 15, 2005 |
TO: |
Vancouver City Council |
FROM: |
Director of Current Planning |
SUBJECT: |
Heritage Building Rehabilitation Program - 36 Water Street (DE 408442)
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RECOMMENDATION
A. THAT Council authorize the City to enter into a Heritage Revitalization Agreement for the site at 36 Water Street for the retention and restoration of the Grand Hotel and Terminus Hotel facades in perpetuity and to supplement and vary the HA-2 District Schedule of the Zoning and Development Bylaw to:
B. THAT Council require a covenant providing that the density bonus not be available for transfer until the rehabilitation is complete, unless the owner secures completion of the rehabilitation by a separate agreement.
C. THAT, subject to approval of RECOMMENDATION A, Council authorize two façade grants for a total of $100,000 ($50,000 for each principal façade), with funding of $65,000 to be provided from the 2003 Façade Grant Capital Budget, and remaining $35,000 to be provided in advance of the 2005 Capital Budget. Approval of these recommendations requires eight (8) affirmative votes.
D. THAT the agreements shall be prepared, registered and given priority to the satisfaction of the Director of Legal Services in consultation with the Director of Planning.
E. AND THAT Council instruct the Director of Legal Services to bring forward for enactment a by-law to authorize the Heritage Revitalization Agreement.
F. THAT Council authorize the Director of Legal Services to prepare and register in the Vancouver/New Westminster Land Title Office, a discharge of these properties from the Heritage By-law, and their replacement by a new heritage designation by-law designating each of the facades.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of the A, B, C, D, E and F.
COUNCIL POLICY
Transfer of Density Policy and Procedure
Heritage Building Rehabilitation Program Policies and Procedures for Gastown, Chinatown and Hastings Street Corridor.
Approval of grants requires eight (8) affirmative votes.
PURPOSE
This report seeks Council's approval to enter into a Heritage Revitalization Agreement (HRA) which will allow for two façade grants and transferable bonus density to secure the rehabilitation and long term conservation of the facades of the "A" and "B" listed buildings at 36 Water Street.
BACKGROUND AND SUMMARY
In July 2003, City Council approved a Heritage Building Rehabilitation Program (HBRP) for Gastown, Chinatown, and later extended the program to the Hastings Corridor. The program is available for a five-year period (2003 - 2008) to initiate economic activity in these historic areas. The objective is to encourage individual owners to rehabilitate their heritage buildings. This owner proposes to assist in the revitalization of the area by bringing commercial live work use and incorporating the facades of the Grand and Terminus Hotels into a new building.
DISCUSSION
Development Proposal: A development application has been submitted by Acton Ostry Architects proposing to retain and restore the existing historic facades incorporating them into a new 6-storey commercial live/work building with retail at grade and 3 levels of underground parking for a total of 66 spaces (see Appendix A). In exchange for transferable density and two façade grants, the owner will reconstruct the key elements of the Terminus facade which burned down more that five years ago, and maintain the two facades in perpetuity.
The proposed new building incorporates the facades of both the Grand and Terminus hotels. The new building behind the Grand is six storeys, with the upper two storeys stepped back from the façade. Behind the Terminus façade, the new building is 5 storeys, also stepped back.
One of the objectives of the revitalization plan for the downtown neighbourhoods is to encourage new compatible uses in these areas. Staff support the proposal as it contributes to this goal by adding new residents in Gastown and at the same time, allowing for other uses in combination with living which is anticipated to improve the economic vitality of this historic precinct.
Figure #1: Site Map
Heritage Value: The Terminus Hotel façade is a three-storey brick facade, supported by steel braces, located mid-block on the south side of Water Street in the historic district of Gastown. Built in 1901, the current structure is the third at this site named Terminus. The Terminus Hotel is valued as an early Gastown hotel, representative of the area's seasonal population in the late nineteenth and early twentieth centuries, as Vancouver emerged as western Canada's predominant commercial centre. The name, Terminus, represents the significance of Gastown as the western terminus of the CPR.
The Terminus Hotel facade is also significant as a surviving design by architect Emil Guenther (born 1855), who had a brief but notable local career, designing commercial buildings in New Westminster and Vancouver, including the nearby Sherdahl Block/Dominion Hotel.
The Grand Hotel is a three-storey plus lower level late Victorian hotel constructed of brick, with a four-storey brick rear extension. As one of Gastown's earliest hotels, the Grand Hotel provided both short and long-term lodging, serving primarily those who worked in the seasonal resource trades such as fishing and logging. Built in 1889, the Grand Hotel is valued for its architecture as a fine example of the Victorian Italianate style from the late nineteenth century. The Grand Hotel is also significant as an early surviving work by prolific American-born architect Noble Stonestreet Hoffar (1843-1907). One of Vancouver's first architects, Hoffar made a considerable contribution to the evolution of the city in the period between 1886 and the mid 1890s with his design and construction of many of the city's largest and most substantial Victorian Italianate structures. The building's original name, the Granville Hotel, celebrated its location in the Old Granville Townsite. When the hotel was expanded with a rear addition in 1903-04, its name was changed to the Grand Hotel, an indication of how the settlement of Granville had been absorbed into the City of Vancouver.
Rehabilitation Plan: The plan for Terminus Hotel façade is to restore it to its 1929 configuration retaining original materials. The Grand Hotel façade will be rehabilitated by restoring the storefront to its 1929 appearance and retaining and consolidating the cornice with all its architectural detailing. The extended single storey addition to the Grand Hotel façade references the established fenestration pattern and the original brick cladding in compatible but distinguishable manner. The missing storefront elements will be replaced with a new element, closely recalling original framing and detailing. The floor levels above the existing parapets set back beyond view from the street are expressed in a light and contemporary architectural approach.
Rehabilitation Cost: In accordance with Council's Heritage Building Rehabilitation Program Policies and Procedures, staff reviewed the applicant's cost calculation and undertook an independent analysis. In this unique case where only the façade of the Terminus Hotel exists and only the façade of the Grant Hotel can physically be retained, staff are not applying the full shortfall costs analysis, but rather just assessing the hardship costs related to the facades. Staff conclude that a total hardship cost of ($1,032,000) is justified for compensation in the following manner:
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Category |
Value / $ |
Bonus Density Implication / sq.ft. | |
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Total Hardship Cost |
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$1,032,000.00 |
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Heritage Building Rehabilitation Program (HBRP) Incentives |
Façade Grants |
$100,000.00 |
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Property Tax |
$0.00 |
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Bonus Density (to meet the Hardship Cost) |
$932,000.00 |
|
18,640.00 | |
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Hardship Cost Compensation |
$1,032,000.00 |
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Transferable Bonus Density |
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18,640.00 | |
Total Compensation $ |
$1,032,000.00 |
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Inventory of Unsold Density: The balance of available heritage density on December 24, 2004 was 98,214 sq. ft. If Council were to approve the recommended HRA for 36 Water Street, the amount of 18,640 sq. ft. will be added to the inventory of available heritage density.
Council recently approved 35,334 sq.ft. of transferable density for 5 W Pender and Council is reviewing two other projects at this Public Hearing that propose approximately 68,400 sq.ft. and 43,500 sq.ft. of transferable density. If all three projects are approved, the density bank will total 264,105 sq.ft. This amount may be reduced through the securing of federal grants. Staff support the balance as presented.
Comments from the Advisory Bodies and Notification:
On October 4, 2004 the Vancouver Heritage Commission reviewed and supported the application in principle asking the applicant to improve the compatibility of the 2 storey setback roof additions behind both facades.
The Gastown Heritage Planning Committee reviewed the application on two occasions (October 20, 2004 and February 16, 2005) and generally supported it, asking for more differentiation of the 4th floor addition to the Grand Hotel façade.
Staff have carefully reviewed the proposal balancing economic viability of the project, heritage conservation delivery on both heritage facades as well as Gastown historic streetscape preservation, and concluded that a 4th floor addition to the Grand Hotel, designed in a compatible but distinguishable manner, is the preferred rehabilitation approach.
Following standard notification procedures, 742 surrounding property owners were notified and invited to comment on the proposal. Staff received 9 responses, 5 in favour, noting the added value to the neighbourhood in keeping and restoring this historic building, and 4 opposed, noting concerns about possible overheight.
This concern has been reviewed and staff concluded that the section drawings showed the height from building grade to the top of stair access, which is not included in height measurement. The height to the top of the building is under the 75 feet maximum for this area.
FINANCIAL IMPLICATIONS
The 2003-2005 Capital Plan provides $1.5 million for the façade grants program. Council approved a funding allocation of $500,000 in the 2003 Capital Budget. Requests for the remaining funding will be included in the 2005 Basic Capital Budget submission.
Over the last two years, $335,000 in grants were approved for specific façade rehabilitation projects. Two grant requests for a total of $100,000 (for 522 Beatty and 540 Beatty Street) will be considered on March 15, 2005. This will leave a balance of $65,000 available for the façade grant requests for 36 Water Street.
Staff recommend approval of the total grant of $100,000 ($50,000 for each principal façade) with funding of $65,000 to be provided from the 2003 Capital budget and $35,000 in advance of the 2005 Capital Budget for Façade Grant.
CONCLUSION
The proposed façade grants and transferable density bonus would compensate the owner for the cost involved in rehabilitating these "A"and "B" -listed Heritage Register building facades. The recommended Heritage Revitalization Agreement and associated covenant will secure the City's interest of ensuring the buildings' facades are promptly rehabilitated and maintained in perpetuity.
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