Development Agreement and Related Contracts for the Sale of City-owned land located at 508 Helmcken Street for the development of new social housing

A. THAT Council authorize the Director of Real Estate Services to complete contract negotiations with The 127 Society for Housing (the “Society”) and British Columbia Housing Management Commission (“BC Housing”) for the lease of land and improvements to be constructed on the property located at 1077-1099 Richards Street, legally described as PID: 004-904-125 PID: 015-485-811 PID: 003-690-806, PID: 006-706-673 LOT 20 to LOT 23, all ofBLOCK 84 DISTRICT LOT 541 PLAN 210 (the “Brenhill Lands”); and authorize the Director of Real Estate Services to execute an offer to lease (the “Offer to Lease”) for a new 60-yr lease agreement (the “Lease Agreement”) with the Society, as lessee of the Brenhill Lands and the 162 unit social housing project (the “Non-Market Housing Project”) to be constructed on the Brenhill Lands and thereafter transferred together with the Brenhill Lands to the City; the Offer to Lease and Lease Agreement to be on such terms and conditions as are acceptable to the General Manager of Real Estate and Facilities Management, Managing Director of Social Development, the Director of Finance, and Director of Legal Services, including:

i. a phased prepayment of the rent payable by the Society pursuant to the Lease Agreement of approximately $9.9 million (the “Prepaid Rent”), of which approximately $8.1 million will be payable within 12 months of final occupancy permit issuance for the Non-Market Housing Project and an additional $1.8 million will be payable upon maturity of the remaining outstanding BCH/CMHC mortgage; and

ii. financing of the Prepaid Rent by new mortgage(s) of the Society’s leasehold interest in the Brenhill Lands and the Non-Market Housing Project, to be negotiated with BC Housing/CMHC and/or other third party lenders (the “Mortgage”), with the Mortgage and any related financing documents to be on such terms and conditions as are acceptable to the Director of Finance and Director of Legal Services

As the prepaid lease of approximately $9.9 million is below the applicable market rate of $28.6 million, A(i) constitutes a grant valued at approximately $18.7 million and approval requires eight affirmative votes of Council.

B. THAT, subject to obtaining Council approval of A:

i. THAT Council, pursuant to the land exchange contract (the “Land Exchange Contract”) entered into between the City and Brenhill Developments Limited (“Brenhill”) with an effective date of January 28, 2013, for the City lands (the “City Lands”) located at 508 Helmcken Street, legally described as PID: 015-482-073, PID: 015-482- 081, PID: 015-482-138, PID: 015-482-162 PID: 015-482-260 LOT 34 to LOT 38, all of BLOCK 94 DISTRICT LOT 541 PLAN 210, and the City Lane (as shown on Appendix A to the Administrative Report dated April 3, 2013, entitled “Development Agreement and Related Contracts for the Sale of City-owned land located at 508 Helmcken Street for the development of new social housing”), authorize the Director of Legal Services and Director of Real Estate Services to negotiate and execute a development agreement (the “Development Agreement”) with Brenhill, the Society, and BC Housing/Canadian Mortgage and Housing Corporation (“CMHC”) to construct the Non-Market Housing Project, to be transferred upon completion to the City together with the Brenhill Lands, at no development or construction cost risk to the City; the Development Agreement to be on such terms and conditions as are acceptable to the General Manager of Real Estate and Facilities Management, General Manager of Engineering, and Director of Legal Services;

ii. THAT Council direct City staff to complete negotiations with the Society and BC Housing/CMHC and authorize the Managing Director of Social Development to, concurrently with the Lease, enter into a 60 year operating agreement (the “Operating Agreement”) with the Society and BC Housing/CMHC that will govern the Society’s operation of the Brenhill Lands and the Non-Market Housing Project as more particularly set out below in this report; the Operating Agreement to be on such terms and conditions as are acceptable to the General Manager of Real Estate and Facilities Management, General Manager of Community Services, Director of Finance, and Director of Legal Services.

C. THAT, when City staff conclude such negotiations with Brenhill, BC Housing, CMHC, and the Society, that the Offer to Lease, Lease Agreement, Development Agreement, and Operating Agreement be subject to the City Lands being successfully rezoned, at Brenhill’s sole risk and expense.

D. THAT a Council decision to enter into the Offer to Lease, Lease Agreement, Development Agreement, and/or Operating Agreement with Brenhill, BC Housing and/or the Society will not in any way limit Council or the City and its officials, including the Approving Officer, in exercising their discretion with respect to any related rezoning, permitting, or subdivision of the City Lands or Brenhill Lands.

E. THAT no legal rights or obligations will arise or be created between:

i. the Society and the City for the lease of the Brenhill Lands and the Non- Market Housing Project unless and until a legally binding Lease Agreement, is successfully negotiated and executed and delivered by the Society and the City through its authorized signatories, the Director of Legal Services and the Director of Real Estate Services;

ii. the Society, BC Housing/CMHC, and the City for the operations of the Brenhill Lands and the Non-Market Housing Project unless and until a legally binding Operating Agreement is successfully negotiated, executed and delivered by the Society, BC Housing/CMHC and the City through its authorized signatories, the Director of Legal Services and the General Manager of Community Services; and,

iii. Brenhill, the Society, BC Housing/CMHC, and the City for the development and financing of the Non-Market Housing Project unless and until a legally binding Development Agreement is successfully negotiated and executed and delivered by Brenhill, the Society, BC Housing/CMHC, and the City through its authorized signatories, the Director of Legal Services and the Director of Real Estate Services.

The Administrative Report dated April 3, 2013, refers .

 

Appointments to Civic Agencies and Committees

A. THAT the following individuals be appointed to the First Shaughnessy Advisory Design Panel, representing the Shaughnessy Heights Property Owners’ Association, terms to commence immediately and end December 7, 2014:

• Dallas Brodie Ash
• Frank Shorrock.

B. THAT Laurie Ringaert be appointed to the Persons with Disabilities Advisory Committee, term to commence immediately and end December 7, 2014.

C. THAT Milinda Schulz be appointed to the Seniors Advisory Committee, term to commence immediately and end December 7, 2014.

D. THAT the following individuals be appointed to the Vancouver Heritage Foundation Board, terms to commence at the 2013 Annual General Meeting and end at the 2015 Annual General Meeting:

• David Dove
• John Quinton
• Andre Rowland
• Karen Russell
• Mark Shieh
• David Toole
• Kimberly Yip.

The Administrative Report dated March 28, 2013, refers.

 

Deputy City Clerk – Assignment of Statutory Authority

THAT Council exercise its authority under section 4 of the Vancouver Charter to appoint Wendy Stewart as a Deputy City Clerk for the duration of her incumbency as Director, Legislative Operations.

The Administrative Report dated March 15, 2013, refers.

 

Lease of City-owned property at 2635 Kaslo Street to Discovery Islands Organics Ltd.

THAT Council authorize the Director of Real Estate Services to negotiate and execute a lease (the “Lease”) with Discovery Islands Organics Ltd. (the “Tenant”) for City-owned premises situated at 2635 Kaslo Street, legally described as PID: 009-551-581, Lot 2 South ½ of Section 35, THSL Plan 9744 (see Appendix “A” to the Administrative Report dated February 26, 2013, entitled “Lease of City-owned property at 2635 Kaslo Street to Discovery Islands Organics Ltd.”), on the following terms and conditions:

Term: Two (2) years commencing January 1, 2013.

Area: Rentable area of approximately 12,610 square feet.

Gross Rent: Rent, inclusive of operating costs and property taxes as if s. 17(1) (d) (e) & (f) and s. 21(1).

Use: The premises are to be used for food storage and distribution warehouse.

Termination: The Landlord shall have the right to terminate the Lease upon twelve (12) months written notice at any time during the Term.
Other Terms and Conditions: The lease is to be provided on the City’s Standard Lease Agreement, drawn to the satisfaction of the Directors of Legal and Real Estate Services, it being noted that no legal right or obligation will be created and none shall arise until the lease document is fully executed by both parties.

All rents to be credited to the Property Endowment Fund (PEF).

The Administrative Report dated February 26, 2013, refers.

 

Lease of City-owned property at 2633 Kaslo Street to Trinity Fashions Ltd.

THAT Council authorize the Director of Real Estate Services to negotiate and execute a lease (the “Lease”) with Trinity Fashions Ltd. (the “Tenant”) for City-owned premises situated at 2633 Kaslo Street, legally described as PID: 009-551-581, Lot 2 South ½ of Section 35, THSL Plan 9744 (see Appendix “A” to the Administrative Report dated March 12, 2013, entitled “Lease of City-owned property at 2633 Kaslo Street to Trinity Fashions Ltd.”), on the following terms and conditions:

Term: Two (2) years commencing April 1, 2013.

Area: Rentable area of approximately 21,080 square feet (the “Premises”).

Gross Rent: Rent, inclusive of operating costs and property taxes as if levied s. 17(1) (d) (e) & (f) and s. 21(1).

Use: The Premises are to be used for garment manufacturing and related uses.

Termination: The Landlord shall have the right to terminate the Lease upon twelve (12) months written notice at any time during the Term.

Other Terms and Conditions: The Lease is to be provided on the City’s Standard Lease Agreement, drawn to the satisfaction of the Directors of Legal and Real Estate Services, it being noted that no legal right or obligation will be created and none shall arise until the lease document is fully executed by both parties.

All rents to be credited to the Property Endowment Fund (PEF).

The Administrative Report dated March 12, 2013, refers.

Verbal Briefing: Transfer of Density and Density Bank Update

Brian Jackson, General Manager, Planning and Development Services, provided an update on the transfer of density and density bank.

Mr. Jackson, together with Penny Ballem, City Manager, and Marco D’Agostini, Senior Heritage Planner, responded to questions.

Staff will report back at the end of June, taking into consideration staff’s recommended actions and feedback received from Council this day.

 

Park Land Acquisition at 3276 Yukon Street

A. THAT the Director of Real Estate Services be authorized to proceed with the acquisition of 3276 Yukon Street as shown on Appendix A to the Administrative Report dated April 3, 2013, entitled “Park Land Acquisition at 3276 Yukon Street”, legally described as: PID 014-214-709 Amended Lot 30 (See 248607L) Block 502 District Lot 526 Plan 2354 (the “Subject Property”), at a cost of s.17(1).

B. THAT upon gaining vacant possession, the General Manager of Real Estate and Facilities Management be authorized to proceed with the deconstruction of the building at 3276 Yukon Street, at an estimated cost of s.17(1).

C. THAT the General Manager of Parks and Recreation be authorized to proceed with a temporary greening of the Subject Property, at an estimated cost of s.17(1).

Funding for the acquisition, deconstruction of the building, and the temporary greening of the Subject Property to be provided from the Park Land Acquisition 2006-2008 Account, to be added to the 2013 Capital Budget from the ‘timing uncertain’ category.

The Administrative Report dated April 3, 2013, refers.

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