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ADMINISTRATIVE REPORT
Date: July 4, 1995
Dept. File No. 3422
TO: Vancouver City Council
FROM: Manager of the Housing Centre
SUBJECT: Demolition Fee Refund - 3424-3446 West Broadway
RECOMMENDATION
THAT the Demolition Fee of $18,000 paid by Khatsalano Equity
Housing Co-operative be reimbursed, with the funds to be paid out
of the Demolition Fee Reserve.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of
the foregoing.
COUNCIL POLICY
Council Policy is to charge a demolition fee of $1,000 per multiple
residential unit and $500 per single family unit demolished. The fees
are held in the Demolition Fee Reserve. Social housing projects are
exempt, as are rental projects where the rental units demolished are
replaced.
PURPOSE
This report recommends that the demolition fee paid by Khatsalano Equity
Housing Co-operative at 3424-3446 West Broadway be reimbursed.
BACKGROUND
In 1990 CMHC began the redevelopment of the 344 units of post-war
veterans rental housing in 16 projects along West Broadway and
West Fourth. The sites were underdeveloped and the number of veterans
declining. CMHC intended to replace the housing for the remaining
veterans and their families on 4 or 5 of the sites, and to market the
remainder to pay for the replacement housing and earn a return on CMHC's
assets.
In 1992 Khatsalano Equity Housing Co-operative leased one of CMHC's
veteran's housing sites at 3424-3446 West Broadway. The site was
occupied with 18 rental units. It was the first non-replacement project
that CMHC marketed, in this case by way of a 60 year lease for
affordable ownership housing.DEMOLITION FEE
When applying for their Demolition Permit, which required the demolition
of the 18 units, the Co-op paid the demolition fee of $1,000 per unit or
$18,000 in total.
Subsequently CMHC approached the City seeking an exemption from
Demolition Fees for their remaining sites. Exemptions are permitted if
units are replaced by rental housing on a 1-for-1 basis or if they are
replaced by social housing. CMHC argued that while some of their sites
were being developed for market housing, 239 units of replacement rental
housing for the remaining veterans and their families and 36 units of
social housing was being built on the others, and their project should
be treated as a single project for the purpose of the by-law, in which
case it would be exempt from demolition fees. This position was
accepted by Housing & Properties and subsequent developments on CMHC's
sites have not paid demolition fees.
Khatsalano Equity Housing Co-op has asked that they be reimbursed for
the demolition fee they paid. On the basis of equity and consistency,
it is recommended that the fee be reimbursed. No interest would be
paid. The Demolition Fee Reserve would be the source of funds.
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