6
                               CITY OF VANCOUVER

                            SPECIAL COUNCIL MEETING 

         A  Special Meeting  of  Council was  held on  January 30,  1996 at
    approximately  10:30 a.m.  in the Council  Chambers, Third  Floor, City
    Hall, to hear representations regarding the issuance of a 1996 Business
    License to Welcome Hostel Ltd., Mayor Owen in the Chair.

         PRESENT:  Mayor Owen
                   Councillors Bellamy, Chiavario, Ip, Kwan, Puil 
                   and Sullivan

         ABSENT:   Councillor Clarke (ill)
                   Councillor Hemer
                   Councillor Kennedy (Civic Business)
                   Councillor Price

         CLERK:    Marnie Cross


    COMMITTEE OF THE WHOLE

    MOVED by Cllr. Bellamy,
    SECONDED by Cllr. Chiavario,
         THAT  this Council  resolve itself  into Committee  of the  Whole,
    Mayor Owen in the Chair.

                                                      - CARRIED UNANIMOUSLY


    1.   Hearing to Review Issuance of Business
         License for 1996 to Welcome Hostel Ltd.,
         404-410 Union Street                    

         Mr. Terry Bland, Corporation Counsel, advised Welcome Hostel Ltd.,
    held   a  1995  Business  License  for  a  multiple  dwelling  with  10
    housekeeping  rooms and five sleeping units in an RT-3 zoning district.
    During the course  of 1995, evidence was produced  to the Chief License
    Inspector  the premises were in violation of the Zoning and Development
    By-law in that rooms were rented on a daily and/or  weekly basis.  This
    is in contravention to the RT-3 zoning.

         As a result  of inspections  and various by-law  violations up  to
    November, 1995, Mr. Paul Teichroeb, Deputy  Chief License Inspector met
    with  the operators/lessees  of the  premises and  on November  17, the
    business license was suspended to the end of the year.
         In  a  letter dated  November 27,  1995,  Mr. Bruce  Redekop, Kerr
    Mouzourakis  Redekop &  Leinburd,  solicitor for  Welcome Hostel  Ltd.,
    appealed the suspension.

         As no meeting was  able to be arranged to  hear the appeal to  the
    suspension  of the  1995  license, the  appeal is  now  academic.   The
    purpose  of the hearing  is to decide  whether a  1996 business license
    should be issued to Welcome Hostel Ltd., and if so, when.

         Mr. Bland  indicated  he  would call  various  witnesses  and  Mr.
    Redekop would  have the opportunity  to ask  questions.  After  this is
    completed, Mr. Redekop would then call on his witnesses.

         In response to questions  from Mr. Bland, Mr. Teichroeb  indicated
    the  premises are located  in an RT-3  zone and the  license was issued
    authorizing 15 units rented  on a monthly basis.   Mr. Teichroeb  noted
    that  members of  the  community had  expressed concerns  regarding the
    operation of  the premises as  a  hotel   renting rooms on  a daily  or

    weekly basis.   The Police Department visited  the premises on a number
    of  occasions and the Property  Use Inspector made  two inspections.  A
    letter was issued  to the operators of the Welcome Hostel Ltd. advising
    they  could not rent on a daily basis.  The inspection noted the use of
    unauthorized rooms, some below standards such as ceiling heights, etc.

    The licensees  understood the by-law requirements and  agreed to comply
    with the  by-law requirements  in a  letter dated May  18, 1995  to Mr.
    Teichroeb.

         After the operators indicated they would comply with  the by-laws,
    information  was received  from  the Police  Department indicating  the
    rooms were  being rented on  a daily basis.   Mr. Teichroeb called  the
    premises  on  October 4,  1995  and  enquired about  a  rental for  the
    evening.   The operator said  there was no problem.   It was  $25 for a
    single or $12.50 if he shared a room.

         On November 17, Mr. Teichroeb met with the licensees to hear their
    reasons  for  non-compliance.   The licensees  were emphatic  they were
    complying  and   not  renting  anything  illegally;   that  the  Police
    Department  had  lied  and that  Mr.  Teichroeb  had  never called  the
    premises.

         At  this  meeting  the  situation was  reviewed  and  the business
    license for 1995 was suspended for the remainder of the year.

         In response to Mr.  Redekop s question as to the  previous history
    of the building,  Mr. Teichroeb indicated  originally the building  was
    two stores  with dwelling units  above and subsequently  converted into
    housekeeping and sleeping units.   Mr.  Redekop  advised Mr.  Teichroeb
    the present operators bought the business in March, 1994.

         Mr.  Redekop requested Mr. Teichroeb to advise the total number of
    units  in  the  building.    Mr.  Teichroeb  indicated  that  with  the
    authorized rooms, and unauthorized  store rooms, mezzanine, small rooms
    6 x7 , there could be  up to 25 or more rooms in the building.  He also
    responded that there were no records  to show these rooms were operated
    illegally prior to 1994.

         Mr.  Redekop asked how many  tenants occupied the  premises at any
    given  time  as  observed  through  City  inspections.    Mr. Teichroeb
    indicated there could  have been  40-50 people in  the building at  one
    point.  When asked if he noticed an improvement since  meeting with the
    lessees,  Mr. Teichroeb indicated an improvement.  In an inspection the
    previous week, the unauthorized units were vacant and there appeared to
    be a maximum of  two persons per room.   It was difficult to  determine
    actual occupancy, but the lessees appeared to be trying to comply.

         Mr.  Bland  asked questions  of  Mr.  Ray  Mariani,  Property  Use
    Inspector who worked for the City for six years.  Mr. Mariani indicated
    one of the  functions of his job  was to see that premises  comply with
    City by-laws  relating to the permitted use.  In response to questions,
    Mr. Mariani advised  that he  had inspected the  premises on March  24,
    1995.  He inspected  every room and took approximate  room measurements
    as under the Standards of Maintenance By-law there has to be 50 sq. ft.
    provided for each  tenant.  The ceiling height minimum  of 6 8  was not
    adhered to,  with some rooms  having 4.5  - 5  ceiling  heights.   Some
    tenants confirmed  they were  only  there for  one or  two  days.   The
    physical  damage was  somewhat  minimal.   A  letter  was  sent to  the
    operators indicating the number  of units which could be occupied  on a
    monthly basis  were three on the  first floor, six on  the second floor
    and six on the third floor.

         Mr.  Bland requested  Mr.  Mariani to  outline  the results  of  a
    subsequent  inspection on  September  20.   Mr. Mariani  indicated that
    numerous  rooms  which  were ordered  not  to  be  occupied were  again

    occupied by people  who indicated  they were tourists  and not  monthly
    tenants.  In  response to  questions with respect  to the  co-operation
    received, Mr. Mariani  indicated he was not permitted access to some of
    the rooms and the operators stated  Mr. Mariani should have provided 24
    hours notice.  Mr.  Mariani confirmed that City inspectors do  not need
    to provide notice when inspecting premises for compliance with City by-
    laws.
         Mr. Redekop requested the number of tenants in the building at the
    time  of  the March  24 inspection.    Mr. Mariani  indicated  that the
    tenants are  not always  present in  the rooms,  but he  indicated that
    there were between 25-40 people, 25% of whom were monthly tenants.

         Mr. Redekop  asked  if  there appeared  to  be  animosity  between
    monthly  tenants  and transients.    Mr.  Mariani indicated  that  some
    tenants offered  some  concerns for  their belongings  when there  were
    people there for only a couple of days.

         In response  to Mr.  Redekop s questions about  by-law compliance,
    Mr. Mariani indicated maintenance  of the building was kept  to minimum
    standards but there was  no compliance with respect  to the zoning  by-
    law.  There were no entries in the register  for transient guests   all
    lodging houses are required to keep a register.

         As  a result of notices  received from the  City and meetings with
    licensing personnel,  Mr. Redekop  asked if as  of June l,  the lessees
    were  complying.   Mr. Mariani  suggested they were  complying somewhat
    slowly.

         Mr. Redekop requested Mr. Mariani to provide information  from the
    June 20 inspection  i.e. how  many daily tenants,  how many  occupants,
    etc.  Mr. Mariani indicated he did not gain access to  all rooms but he
    had spoken to 6 tourists who were only staying a few days.  Other rooms
    appeared to be occupied but the tenants were not present and it was not
    easy to determine how many were in the rooms.

         In  response  to  Mr.  Redekop s question  regarding  whether  the
    tourists were the kind of people  you would want in your neighbourhood,
    Mr. Mariani indicated they were co-operative and answered questions but
    he would not wish to make a judgement  on what kind of individuals they
    were.

         Mr.  Bland requested Rick  Mattson, Fire Inspection  Branch of the
    City Fire  Department, (17 years,  6 as  an inspector) to  describe the
    inspection of the premises carried out by Fire, Health and Property Use
    inspectors on March  24.   Mr. Mattson indicated  the major  infraction
    related to the Fire  By-law was a locked  door with a wooden box  which
    required a key to open it.  This exit would have to be used by at least
    5 or 6 suites along  the hallway.  The  occupants would not be able  to
    exit the building  if they were not  provided with a key.   Mr. Mattson
    requested  removal of  the locking  device.   On his  second inspection
    (March 28) the door lock had  been removed and all other work had  been
    completed  by April 7.  On April 26,  the door had been relocked with a
    key-locking mechanism.   Mr. Redekop asked if Mr. Mattson had spoken to
    the operators about  the locking  device.  They  indicated the  locking
    device was  to  stop people  such  as drug  dealers from  entering  the
    building from  the side  street.   Mr.  Redekop asked  if the  operator
    appeared  to be co-operative and  Mr. Mattson responded  he was not co-
    operative until the situation  became  tense  and he then  unlocked the
    door.   The  operator  re-iterated it  was to  stop  drug dealers  from
    entering the building.  Mr. Mattson was asked if the locking device was
    removed and replaced with a proper mechanism.  Mr. Mattson indicated it
    was not.

         Mr. Bland requested P.C.  James Munroe, 8 years  with the City  of
    Vancouver Police Department,  to outline  his duties in  the Spring  of
    1995.  P.C. Munroe indicated he carried out a wide range of duties as a

    designated  officer for  the Strathcona  Community, dealing  with other
    police  officers in  the area,  members of  the community  and on-going
    community  problems.    He  advised  that  the  Police  Department  and
    community members were concerned with the number of thefts in the area,
    thought to be by tenants of Welcome Hostel Ltd.  There was drug dealing
    in  front of the premises  and drug paraphernalia  around the building.
    He had  spoken to the  operators at least  20 times, if  not more.   He
    encountered problems with the room guest list which did not contain any
    listing for day guests.

         In  response to questions from Mr. Bland, P.C. Munroe indicated he
    had  observed and  spoken to  several tourists  who indicated  they had
    rented  a  room for  $12 a  day plus  key deposit  and had  received no
    receipts  for their  cash only  transactions nor  been asked to  sign a
    register.    He asked  to  see  the guest  register  and  there was  no
    indication that the tourists had stayed at the premises.

         In  response to questions P.C.  Munroe indicated that  he had been
    provided  with an advertisement for  the Welcome Hostel  "in a downtown
    location, rates $15-39  per night,  with pickup from  the airport,  bus
    depot,  train station".    He  indicated  the  tourist  picked  up  the
    advertisement in Victoria.  P.C. Munroe indicated there were notices in
    some of the rooms on the top floor, which appeared to cater to Japanese
    tourists,  indicating guests  could  pay for  as  many nights  as  they
    thought they would be in Vancouver.   He noted that any changes to  the
    premises were as a result of fire, health and license inspections.

         Mr. Redekop asked if any other rooming houses in the neighbourhood
    rent on a temporary basis.  P.C. Munro advised there were not.
         As a result  of several  questions from Mr.  Redekop, P.C.  Munroe
    advised  the drug  problems are  not as  a result  of the  tourists and
    indicated that many  of the tenants are known to  the police and rotate
    to different premises, but are a cause of concern.

         Mr. Redekop asked several  times for the source of  the complaints
    and  was advised  it  was  various  sources  such  as  police  members,
    community members, but  it was  not important who  complained but  that
    there were a good number of complaints which needed to be investigated.

         Mr.  Bland  requested P.C.  Wilkinson,  a  member  of  the  Police
    Department for  five years,  to outline  the events of  the evening  of
    September  20.   P.C.  Wilkinson indicated  she  had attended  with her
    partner  in an  undercover operation,  posing as  tourists.   They were
    greeted at the  door and asked if  they wanted a room.   They were told
    there was  a room with bunk beds  for $35 a night  plus $5 key deposit.
    Two nights would be $30  a night.  When they looked at the  room it was
    dirty and the operator indicated he would clean it.  P.C. Munro came in
    to do a lodging house check.  The operator known as Raymond came to see
    them and refunded their money when requested to do so.

         Mr.  Bland requested P.C.  Jeanie Yee, a  Police Department member
    for  9 years, to advise of her  duties as Co-ordinator for District Two
    where the premises are located.  P.C. Yee indicated she was responsible
    for all problems that were brought to her attention either by community
    members  or other police  members.   There were  a number  of incidents
    related to the Welcome Hostel.  Once a file is opened on a premises, as
    was  done in  February, 1995  for Welcome Hostel,  it is  an indication
    there are a number of problems which will not be resolved.  In response
    to  questions from Mr. Bland  as to her  observations and conversations
    with the manager, P.C.  Yee indicated there are daily  rentals, monthly
    rentals, rentals  to people from  the DTES known to  the police, people
    staying a day or two waiting for their next welfare cheque, quite a few
    transients, parking meter heads  found inside tenants rooms and  in the
    hallways,  etc.   P.C. Yee  advised the  operators their  operation was
    contrary to  their license as a  lodging house.  Once  letters had been
    received from Permits and Licenses, there were some attempts to comply,

    but  P.C. Yee  was  present  with  Ray Mariani  when  rooms  that  were
    unsuitable  and  closed  were  again  rented  out.   Management  became
    agitated  when various  departments visited  the  premises.   When P.C.
    Wilkinson and her partner posed as tenants, their names were not on the
    register.   The operator Raymond (Wai Man) always spoke perfect English
    and  when P.C.  Yee asked  to  go to  the third  floor  he switched  to
    Cantonese.   He responded to two  phone calls in English  and when P.C.
    Yee spoke to him in Cantonese he switched to Mandarin which she did not
    understand.    P.C.  Yee indicated  that  she  felt there  would  be no
    compliance from the operators unless Council takes some action.

         Mr.  Redekop asked where people  in the neighbourhood  can stay if
    they  are short  of cash  and don t  have a  place to  stay.   P.C. Yee
    indicated they can stay in the area hotels that have daily rentals.

         Mr. Redekop asked if welfare and other organizations refer  people
    to Welcome  Hostel for emergency  shelter.  P.C. Yee  indicated she did
    not  know.   Mr. Redekop  asked if  the problems  with Raymond  and his
    language resulted after the undercover  officers set him up.   P.C. Yee
    indicated the situation would have been a bit startling for Raymond.

         Mr.  Redekop asked questions  of Tiejun Yuan, known  as TJ, one of
    the operators of Welcome Hostel. He came to Canada as a student and was
    granted  landed immigrant status in 1989.  Mr. Yuan indicated he bought
    the  business  Western Hostel  Ltd. in  February,  1994 and  leased the
    premises for $3500 per month for  five years.  He made improvements but
    not structural changes.   The  previous owner indicated  the number  of
    rooms which could be rented was 30.

         In response to questions regarding occupancy when he took over the
    business, Mr. Yuan  indicated the  owners occupied the  top floor,  the
    second  floor contained seven tenants,  the main level  4-5 tenants and
    two tenants were in the basement.  He indicated there were unauthorized
    rooms occupied by monthly tenants.

         Mr. Redekop asked  how tenants find out about Western Hostel.  Mr.
    Yuan  indicated he advertised and  has a good  relationship with social
    services who send  people if they need shelter.   As well as referrals,
    tenants  tell others needing housing.  Most people cannot afford rooms.
    They stay for one or  two days until they can afford to pay the monthly
    rental.

         In  response to questions from Mr. Redekop, Mr. Yuan indicated his
    costs were  approximately $5000 per month.  The landlord misrepresented
    the business as 30 rooms.  Until he read the license in November, 1995,
    he did not realize only 15 rooms were allowed.

         Mr. Yuan advised  that when the parking meter heads  were found on
    the  premises,  he  called the  police  and  they  arrested the  person
    responsible.   Mr. Yuan requested  another opportunity to  show he will
    comply with  the City requirements.  All tenants are now monthly and he
    is only renting 15 rooms.
         Mr. Bland  noted that  in February  and March,  Mr. Yuan had  been
    advised of the by-law requirements.  He asked Mr. Yuan if he understood
    at that time.  Mr. Yuan said yes.  He denied the rooms were rented on a
    daily basis.  He said social services sends him people who need a place
    to stay, sometimes not on a monthly basis.

         In response to questions from Mr. Redekop, Mr. Wai Man Chuk, known
    as Raymond, indicated he  and Mr. Yuan have owned the  business Western
    Hostel Ltd.  since February  11,  1994.   He moved  from  Hong Kong  in
    November, 1993.    Neither he  nor  TJ have  any  experience running  a
    lodging house.   His role is to  take care of the  business and general
    maintenance.  He advised  that 80-90% of the tenants are social service
    welfare people.

         Mr. Redekop requested three  tenants from the building  to discuss
    their situations when they arrived at Western Hostel.

         Mr. Alexander Goudreau,  23, arrived in  Vancouver 15 months  ago.
    He was robbed  in Banff  and only had  $20.  The  YMCA referred him  to
    Western Hostel  where they accepted  some money and  said he  could pay
    later  when he had money.  TJ  referred him to social services and when
    he had money he began monthly rentals.  He is currently working to stay
    off welfare.    He  advised  if  there are  any  complaints  about  the
    premises, they are attended to by TJ or Raymond.

         Mr. Darrell  Carter,  45, indicated  he  arrived in  Vancouver  in
    August,  1995.   He stayed  at a  hotel and  then checked  out hostels.
    Western Hostel was  the cleanest and most central.  He  paid on a daily
    basis until he had the money to pay monthly.

         Mr. Thomas Bezner arrived in Vancouver in August, 1995.   He heard
    about Western  Hostel  from a  friend  who had  stayed  there while  in
    Vancouver.  He went directly to Western Hostel when he arrived and paid
    for a couple of days.  Mr. Bezner plans on staying, on a monthly basis,
    until he leaves Vancouver in May.  The premises are clean and centrally
    located.

         In conclusion, Mr. Redekop indicated one of the problems he had in
    going  through the material submitted was the absence of particulars of
    who  is issuing  complaints.   This is  a situation  where the  current
    operators took possession in early 1994 and thought they had a building
    with 30  rooms which could  be rented whereas  there are  only 15.   He
    enquired  if the occupancy problem is  a new one or  was it an existing
    problem.   Complaints appear to stem  from some of the  problems in the
    neighbourhood  re unlawful activities, not  from the backpackers or the
    daily tenants.  People seem to be drawn to the building for a temporary
    stay and subsequently convert to  monthly tenancy.  Perhaps there is  a
    good and legitimate reason why they should be accepted as they turn out
    to  be good tenants.  There is contradictory evidence in the inspection
    reports  as to  compliance.   This is  a difficult  business to  run as
    people  from  out of  the  Province  arrive  with  little money.    The
    operators  are  not  the  problem,  it  is   people  who  come  to  the
    neighbourhood.

         This  is  a  situation  where  indeed  there  have  been  problems
    identified but a recent inspection indicates the business appears to be
    fully complying.  If the licence is not issued the monthly tenants will
    have  no place  to  stay.   Mr.  Redekop suggested  a  small amount  of
    tolerance might be  in order and  a provisional licence be  granted and
    monitored and  if there is a  further problem, the City  can revoke the
    license.

    MOVED by Councillor Puil,
         A.   THAT the  monthly tenants of Welcome  Hostel Ltd. immediately
              be  given  one  month's  notice  to  vacate the  premises  by
              February 29, 1996.

         B.   THAT no business license be issued to Messrs. Tiejun Yuan and
              Wai  Man Chuk,  operating  as Welcome  Hostel, 404-410  Union
              Street, for three months following that time.

         C.   THAT if the operators  apply for a business license  in June,
              1996, City  staff monitor  the operation  of the  premises to
              ensure that it is in compliance with all City by-laws.

         D.   THAT  City staff meet with the monthly tenants of the Welcome
              Hostel Ltd. to provide assistance in their relocation.

                                                      - CARRIED UNANIMOUSLY

    RISE FROM COMMITTEE OF THE WHOLE

    MOVED by Cllr. Bellamy,
         THAT the Committee of the Whole rise and report

                                                      - CARRIED UNANIMOUSLY


    ADOPT REPORT OF COMMITTEE OF THE WHOLE

    MOVED by Cllr. Bellamy,
    SECONDED by Cllr. Chiavario,
         THAT the report of the Committee of the Whole be adopted.

                                                      - CARRIED UNANIMOUSLY


                           *     *     *     *     *

                   The Special Council adjourned at 1:00 p.m.