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CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Report Date: |
March 23, 2005 | |
Author: |
Vickie J. Morris | |
Phone No.: |
604.871.6229 | |
RTS No.: |
5020 | |
CC File No.: |
4102 | |
Meeting Date: |
April 14, 2005 |
TO: |
Standing Committee on Planning and Environment |
FROM: |
Director of Social Planning in Consultation with Directors of Real Estate Services and Facilities Design & Management |
SUBJECT: |
Community Amenity Bonus - 1188 West Pender |
RECOMMENDATION
THAT Council approve, in principle, the applicant's request for a Child care Amenity Bonus at 1188 West Pender Street (DE 408949), as outlined in this report, subject to the Owner entering into a Section 219 Covenant and an Option to Lease (with form of lease attached to Option to Lease) providing for:
1) the design, construction, fit, finish, and equipping by the Owner, at its cost, of a licensed group child care facility of approximately 12,000 sq. ft. of indoor and outdoor program space for 37 children to be constructed pursuant to DE408949, as per the City of Vancouver Childcare Design Guidelines and acceptable to the Directors of Social Planning and Facility Design and Management, and Community Care Facilities Licensing, and;
2) a $1.1 million contribution to the City Childcare Endowment Fund to assist in the provision of affordable, accessible child care as established by Council Policy; and
3) leasing of the amenity space to the City for nominal rent for the life of the Development, on the terms and conditions contained in this report.
The Section 219 Covenant, Option to Lease, and Childcare Endowment Fund contribution shall be on the terms and conditions outlined in this report.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of the foregoing.
COUNCIL POLICY
Downtown District (DD) Official Development Plan (DD ODP)
The Downtown Official Development Plan under Section 6.II allows for an increase in the permitted floor space ratio or density of a building, in exchange for public, social or recreation facilities which have a demonstrated need, subject to Council approval.
The City of Vancouver has made use of the Amenity Bonusing Program to secure affordable public facilities since 1975. The City's Official Development Plan permits developers to increase their on-site density in new construction in exchange for providing a public amenity of a social, recreational or cultural nature, subject to approval by the City's Development Permit Board and City Council.
City Childcare Protocol
Approved in March, 2004, the Protocol called for maintaining existing child care facilities and expanding child care services by 5% over the following two years.
Civic Childcare Strategy
In the Civic Childcare Strategy, approved October, 1990, Council agreed that "the City of Vancouver is committed to being an active partner with senior levels of government, parents, the private sector and the community, in the development and maintenance of a comprehensive child care system in Vancouver."
Childcare Strategic Plan "MOVING FORWARD"
Set within the context of the existing Civic Childcare Strategy and its objectives, Council approved a strategic framework including: "Establishing Priorities and Planning Process to strengthen municipal processes to support the development of a comprehensive range of early childhood development services."
City Childcare Endowment Fund
On December 15, 1994, Council approved the terms and conditions of the Childcare Endowment Reserve, including eligibility criteria and the process of accessing these funds. Council approved "that the City Childcare Endowment Fund monies be used for child care facilities created as a result of rezoning negotiations or as a result of City projects in new or emerging high density developments/neighbourhoods."
Financing Growth (Community Amenity Contribution Policy)
Financing Growth (Community Amenity Contribution Policy) adopted in January, 1999, and last amended June, 2003. Community Amenity Contributions are anticipated on any rezoning in the DD which seeks a net increase in total floor area permitted by the DD ODP. The child care amenity and contribution to the City Childcare Endowment Fund discussed in this report are offered in consideration for the increased value of the site at 1211 Melville resulting from the transfer of 52,600 sq. ft. of commercial density from 1188 West Pender. Both properties are owned by Pinnacle International ("Pinnacle") and/or affiliates. The transfer of commercial density and proposed development at 1211 Melville is discussed in Council report RTS 04954.
PURPOSE AND SUMMARY
The purpose of this report is to seek Council approval for a density bonus in consideration of a child care facility within a mixed-use development at 1188 West Pender Street (DE 408949). The property owner has agreed to provide an amenity package worth $4.208 million in the form of a 11,866 sq. ft. child care amenity facility and a $1.1 million contribution to the City Childcare Endowment Fund in exchange for 52,600 sq. ft. of residential density to replace the commercial density transferred to 1211 Melville St (Council Report RTS 04954). The report also seeks Council's approval of a registered lease of the amenity space to the City for a nominal rent for the life of the Development, on the terms contained in this report. A report seeking Council's approval of a sublease of the public amenity facility to a non-profit operator of the child care facility will be submitted at a later date.
BACKGROUND
Ensuring access to appropriate and affordable child care facilities is a challenge for non-profit organizations in Vancouver's real estate market. In order to ensure that affordable child care is available downtown, the City actively seeks opportunities to acquire spaces through bonusing and transfer of density arrangements. In collaboration with private developers, the City promotes the creation of affordable facilities at no cost to taxpayers.
In the case of child care facilities, the developer builds, finishes, equips and supplies a fully furnished child care facility to the specifications of the City in compliance with the City's Child care Design Guidelines, Community Care Facilities Licensing, and to the satisfaction of the Directors of Social Planning and Facility Design and Management, and contributes an amount to the City Childcare Endowment Fund to ensure affordability of the program in exchange for additional on-site density of equal value. The City secures the amenity through legal agreements including a lease of the child care facility for the life of the building. The City sub-leases the amenity space to a non-profit society for a nominal rent. The pre-paid operating costs go to the City Childcare Endowment Fund.
The program only works if the site can accommodate the additional density and the developer is willing to pursue the opportunity. Further, bonuses are only considered where the resultant additional density meets the City's planning guidelines and by-laws. The value of the bonus density is calculated by the City's Real Estate Services using consistent pro forma analysis.
Bonuses are only considered for non-profit amenities which provide significant public benefit. The organization chosen to operate the amenity must have a demonstrated track record of delivering public service.
DISCUSSION
On behalf of the owner, the architect has applied to construct a 31-storey residential tower with a total of 110 dwelling units, approximately 3,600 sq. ft. of commercial space on the ground floor, and approximately 11,866 sq. ft. of child care space on the second and third floors. (DE 408949). If approved, the application will replace 52,600 sq. ft. of commercial floor area transferred to 1211 Melville St with 52,600 sq. ft. of residential floor area on condition of giving the City a child care facility. The proposed child care facility would be accessible by dedicated elevator and stairwell to grade and designated underground parking. The maximum building density permitted is 7.0 FSR. It is proposed that the FSR be 7.76, including a 10% heritage density transfer.
Site
This site is located on the southeast corner of West Pender and Bute Streets. The lot is irregularly shaped and is approximately 14,225 square feet. The small building floor plate does not allow for extensive commercial floor space at grade.
Figure 1: Map illustrating location of sites at 1188 W Pender and 1211 Melville Streets and surrounding development activity.
a) 555 Broughton - Harbourside Towers
b) 1328 W Pender - the Classico
c) 1331 W Georgia - the Pointe
d) 610 Jervis - the Banffshire
e) 1280 W Pender
f) 1285 W Pender
g) 1228 W Hastings - the Palladio
h) 408 Jervis - the C-Side
i) 1201 W Hastings - the Cielo
j) 1238 Melville - the Pt. Claire
k) 1239 W Georgia - the Residences
l) 1211 Melville - the Ritz
m) 1166 Melville - the Orca
n) 550 Bute - the Melville
o) 1188 W Pender
p) 1177 W Pender
Land Use
This mixed use development, consisting of residential and commercial uses, including retail, was envisioned for this area. The child care amenity will be located on levels two and three of the tower. Staff have worked extensively with the developer to ensure a quality environment for children that is compatible with the neighbourhood.
Urban Design
The permitted tower height for this site is 300 ft. The proposal is marginally higher at 302 ft. and will be reviewed by the Development Permit Board before permit issuance.
This proposal received approval in principle at the Urban Design Panel on February 16, 2005. This proposal is scheduled to be reviewed by the Development Permit Board on April 25, 2005. Evaluation of the proposal by the Development Permit Board will include impacts on neighbours' views.
Bonus Calculation
Real Estate Services staff have reviewed the proposed amenity bonus and their analysis supports a bonus density of 52,600 sq. ft. in return for the following:
1) A 37-space fully fitted, finished, equipped, and licensed group child care facility of approximately 11,866 sq, ft. of indoor and outdoor program space, located on the second and third levels of the tower and including dedicated, rent-free parking and drop-off spaces, consistent with City bylaw, guidelines and regulations.
2) A $1.1 million contribution to the City Childcare Endowment Reserve Fund
The methodology for determining the amenity bonus was consistent with all other bonuses in that the value of the child care amenity, fully finished, fitted, and equipped, including a contribution to the Childcare Endowment Fund, is of equal value to the residential replacement bonus density and consistent with Section 6.II of the Downtown Official Development Plan:
"In determining the increase in floor area or density that may be authorized, the Development Permit Board shall consider: the construction cost of the facility; any costs to the developer of continuing maintenance required for the facility; the rental value of the increased floor area; the value of any authorized relaxation of other restrictions"
The value of the required amenity was reviewed by staff from the City's Department of Facilities Design & Management and Real Estate Services. The applicant agrees with the capital cost of providing a fully fitted and finished 37-space child care facility, and paying the $1.1 million endowment. The purpose of the endowment is to cover costs associated with start-up costs, and utilities and operating subsidy for the toddler program for the life of the lease.
There is a shortage of child care spaces across the City but especially in the downtown core. At present, there are in excess of 1,500 families on the waiting list for child care in Vancouver Society of Childcare Centres (VSOCC). VSOCC operates seven child care centres in the downtown area.
Staff note that the cost to build a stand-alone child care in the downtown core would be in the order of $2,000,000 plus land costs. The amenity bonus program delivers public amenities otherwise not affordable.
The proposed group child care facility will be located on the second and third levels of the proposed development. The preliminary plans have been reviewed and demonstrate a workable footprint for a child care facility with further design work to be completed to the satisfaction of the City's Childcare Development Coordinator and Community Care Facilities Licensing.
Agreements
Subject to Council's approval, the City will secure its interest in the amenity space through a Section 219 Covenant and an option to lease for the life of the building.
Except for HVAC, the daycare space shall not contribute to building operating costs or to property taxes. The lease shall include, at no additional cost, unrestricted use of seven parking spaces at a location determined by the City. The construction, fitting, equipping, and furnishing of the daycare facilities shall be secured by a Section 219 Covenant which shall also provide that the development permit, building permit, and occupancy permit for the development shall not be issued ahead of those permits for the child care centre, and also that the site can only be subdivided such that the child care forms part of the residential parcel, which can then only be subdivided by strata plan if the child care sits on common property. The construction costs and Endowment contribution shall be secured by letters of credit lodged with the City prior to the issuance of DE 408949.
The $1.1 million contribution to the City Childcare Endowment Fund shall be paid to the City prior to issuance of the Development Permit.
The Section 219 Covenant and Option to Lease shall be on the terms and conditions outlined in this report and such other terms and conditions as shall be required by the Directors of Social Planning, Facilities Design & Management, Real Estate Services, and Legal Services and shall be registered in the Land Title Office in priority over all charges which might defeat or delay their enforcement and prior to issuance of DE 408949.
The Director of Facilities Design and Management shall set the amount for the letter of credit securing construction and the Director of Legal Services shall set the terms and conditions for all letters of credit.
SOCIAL IMPLICATIONS
Council policy and practise has been to seek non-profit uses for amenities which encourage a diversity of cultural, social and recreational uses in the downtown. The demand for child care in the downtown exceeds supply, with long wait lists for existing spaces.
The new facility will provide 37 additional licensed child care spaces. This is in keeping with Council's commitment of March, 2004, through the Child Care Protocol to "increase licensed child care spaces by 5% in the next two years".
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