Neighbourhood Energy Expert Panel

A. THAT Council approve the expanded scope of the Southeast False Creek Neighbourhood Energy Utility (“SEFC NEU”) third-party Expert Panel (referred to in the Administrative Report dated September 18, 2014, entitled “Neighbourhood Energy Expert Panel”, as the “Expert Panel”) to provide staff and Council with advice, on an as-requested basis, on key activities related to the implementation of the Vancouver Neighbourhood Energy Strategy, in addition to its established role related to SEFC NEU rate adjustments, as outlined in the Terms of Reference in Appendix A of the Administrative Report.

B. THAT Council appoint Alison Rhodes for a three-year term as Expert Panel Chairperson, ending December 31, 2017.

The Administrative Report dated September 18, 2014 , refers.

Report Back on the Sale of City-owned land located in Area 3A of SEFC and proposed Non-Market Housing Building on Area 3B of SEFC

• Decision 
• Administrative Report dated September 2, 2014 

Verbal Briefing: Contract Award for the Supply of Two 40-foot Fire Rescue Boats and Service Contracts to provide proposed Marine Fire Response Service

Sadhu Johnston, Deputy City Manager, provided an overview of the Marine Fire Response Strategy, including current challenges, proposed Marine Fire Rescue Services model, and competitive procurement process.

Mr. Johnston, along with Penny Ballem, City Manager; Nick Kassam, Director, and Andrew Matterson, Category Manager, both with Supply Chain Management; and John McKearney, General Manager – Fire and Rescue Services, responded to questions.

Lease of 312/324 Main Street to Vancity Community Foundation

• Decision 
• Administrative Report dated September 19, 2014 

Appointments to the Vancouver Economic Commission

THAT the following individuals be appointed to the Vancouver Economic Commission; terms to commence immediately and end June 30, 2017:

• Shahrzad Rafati
• Kerri Schuermans.

The Memorandum dated September 30, 2014 , refers.

1335 Howe St – Lease of Hotel Property for Supportive Housing Use

A. THAT Council authorize the Chief Housing Officer and the General Manager of Real Estate & Facilities Management to negotiate and execute a lease (the “Lease”) between the City of Vancouver (the “Tenant”) and Townline (the “Landlord”) for the premises situated at 1335 Howe Street (the “Premises”), as shown on Appendix A, legally described as PID: 004-481-488, 004-481-496, 004-481-500, 004-481-518, 004-481-526, 004-481-534, 004-481-569, 004-481-593, Lots 27 – 34, Block 111, District Lot 541, Plan 210 (the “Lands”), on the following general terms and conditions:

Term: Two (2) years

Commencement Date: November 6, 2014

Rentable Area: 7 storey hotel containing approximately 73,910 square feet and 157 units

Rental Rate: The rental rate during the term of the Lease shall be s.17(1) per annum (s.17(1) per room per month). There shall be no GST applied to the rent.

Free Rent: One (1) month

Use: Supportive Housing. A non-profit operator will be retained to manage the property during the term.

Renovations: Renovations to convert the building from hotel use to supportive housing are estimated to cost approximately s.17(1). Renovations to include the following scope: moving services for the removal of furniture/equipment not required by new operator; decommission of existing interconnecting door function between suites; decommission of existing exterior pool; new fencing/screening to exterior covered area to create secure and private exterior smoking area; mobile bed bug sauna; new security equipment as required; revisions to lobby entrances for security reasons and new tenant laundry facilities. The City may negotiate with the landlord to complete the required renovations on behalf of the City and at the City's expense.

GST Reimbursement: The Landlord will be responsible for any GST payable, estimated to be s.17(1), when the property changes from a commercial to a residential complex because of the lease with the City. The Landlord will likely be eligible for a 36% rebate on that GST payable immediately after payment, making net GST payable s.17(1). The Landlord may be able to claim that s.17(1) payable as an input tax credit following the ultimate sale of the condominium units once the property has been developed. Any amount eligible to be claimed as an input tax credit would be refunded by CRA. The City will reimburse the Landlord for up to s.17(1) on the later of i) after CRA makes a final determination that the Landlord may not claim that amount or any portion thereof as an input tax credit following the ultimate sale of the condominium units or ii) the issuance of an occupancy permit for the condominium units.

The City will also contribute 50% up to a maximum of s.17(1) of the costs of the Landlord obtaining an advance ruling from CRA on whether some or any portion of the GST payable by the Landlord may be claimed as an income tax credit. Source of funding to be the 2014 Housing Operating Budget.

Other Terms and Conditions: The Landlord may terminate the Lease upon giving the Tenant six (6) months prior written notice of such termination if the Landlord incurs a capital expense in excess of s.17(1). The Tenant may choose to undertake this capital repair and the Landlord will contribute 25% of the cost up to a maximum aggregate amount of s.17(1).

Such other terms and conditions of the Lease are to be drawn to the satisfaction of the Chief Housing Officer, the General Manager of Real Estate & Facilities Management and the Director of Legal Services, it being noted that no legal rights or obligations shall arise or be created until the lease document is fully executed by both parties.

B. THAT Council approve the operating and capital budgets and funding sources as follows:

• Operating – total operating costs (basic rent, facility and programming costs) net of rental income is estimated to be in the range of s.17(1) to s.17(1) per annum; 2014 prorated cost of up to s.17(1) to be funded from the 2014 Housing Operating Budget and the 2015 and 2016 costs to be funded from a reserve set aside from the forecast 2014 Operating Surplus with any excess to be budgeted in the 2015 and 2016 operating budgets.

• GST – the potential reimbursement of up to s.17(1) to be funded from a reserve set aside from the 2013 Revenue Fund Balance.

• Capital – building improvements and renovations of up to s.17(1) to be funded from the 2014 Capital

The Administrative Report dated September 19, 2014 , refers.

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