POLICY REPORT
                            BUILDING AND STRUCTURE

                                             Date:  April 4, 1996
                                             Dept. File No.  RGL


   TO:       Vancouver City Council

   FROM:     Director of Land Use and Development 

   SUBJECT:  Heritage Designation and Bonus for 1228 Richards Street -
             former Canadian Linen Supply Building

   RECOMMENDATION

        A.   THAT Council  support a heritage  floor space relaxation  of 3
             312 m2 (35,650 sq. ft.), representing  (1.25 FSR), as proposed
             in Development Application  DE400814 and  a relaxation of  the
             retail floor space to 2 787 m2 (30,000 sq. ft.);

        B.   THAT  Council support a  Heritage Revitalization  Agreement to
             allow the  heritage relaxations  and a  development limitation
             covenant to preserve the density bonus for transfer off-site;

        C.   THAT the Director of Legal  Services bring forth the by-law to
             authorize the Heritage Revitalization Agreement.

   GENERAL MANAGER'S COMMENTS

   The General  Manager of Community  Services RECOMMENDS approval of  A, B
   and C.

   COUNCIL POLICY

   The  Transfer of Density Policy and Procedure allows for the transfer of
   density from heritage sites in the Central Area.

   PURPOSE

   The purpose  of this report is to seek  Council's support for a Heritage
   Revitalization Agreement (HRA) to secure the conservation and protection
   of the former Canadian Linen Supply Building.

   BACKGROUND

   The  former Canadian Linen Supply  Building is located  at the corner of
   Richards and Davie  Streets in Downtown South (see map below).  DE400814
   has  been submitted  by Stuart  Howard Architects  on behalf  of Lintall
   Properties Ltd.













              Map 4 1/2 inches





















   Constructed in  1928-29, the building was designed in the Art Deco style
   by architects Townley and Matheson.  Alterations and additions were made
   in 1947 and 1974.  

   On June 20, 1995, Council passed the following resolution:

        "THAT the  former  Canadian Linen  Co.  Building at  1200  Richards
        Street,  listed  on  the  Vancouver  Heritage  Register  in  the  B
        category, be eligible  for a heritage density  bonus to be used  on
        site or transferred elsewhere, subject  to the Transfer of  Density
        Policy and rezoning." 

   The new owner submitted preliminary  development application DE400814 in
   January 1996 to retain the building and rehabilitate it as a food retail
   facility and develop a 29-storey apartment building beside it.  On March
   11, the  Development Permit  Board granted preliminary  approval to  the
   project,  as submitted, at a density and with a building form approvable
   under the current DD zoning.  

   To  assist  with  the  rehabilitation  of  the  heritage  building,  the
   applicant has requested a heritage density bonus of 1.25  FSR beyond the
   site's allowable density, but which would not be used on-site.  It would
   be "banked"  on-site until  sold and  transferred elsewhere,  consistent
   with the Transfer  of Density Policy.  This bonus density is the subject
   of the request for Council's approval.   

   DISCUSSION

   Heritage Density Bonus

   The  bonus amount of 3 312 m2 (35,650 sq.ft.) is to compensate the owner
   for the  costs of retaining  and upgrading  the heritage  building.   In
   return, the  building will  become a protected  heritage property.   The
   Manager  of Real  Estate  has  reviewed the  applicant's  pro forma  and
   concluded that the bonus amount is justified.

   Transfer of Density Policy

   The Transfer of Density  Policy requires rezoning of a  heritage site to
   CD-1 to reduce the site's density to that of the existing building.  The
   remaining density is  available for sale and is frozen  by a development
   limitation covenant until it is sold.  When all the density is sold, the
   covenant is cancelled and the heritage site remains zoned  CD-1 with the
   permitted density being that of the existing building.  

   The Canadian Linen Co. application is unusual in that its rehabilitation
   and  the new tower could  be approved under  the current zoning.   It is
   only the heritage bonus density  that would be added to the  site.  Once
   the bonus floor  space is sold, the site would remain  at the density of
   the DD zone.

   For this reason, staff note there is merit in using a covenant to freeze
   the bonus density  on-site (without  rezoning), because the  development
   proposal will use, on-site, all  the density available under the current
   ODP.   In this  case, a covenant,  without site rezoning,  will meet the
   intent of the Transfer of Density Policy.



   Heritage Revitalization Agreement

   The HRA recommended to Council  would achieve the following: protect the
   building,  including its restoration  and continued maintenance; confirm
   the retail area relaxation  and establish the bonus density of  1.25 FSR
   for future sale and transfer.  The  agreement would also permit the City
   to install a bronze heritage plaque on the building.

   The HRA provides  protection equal  to that of  designation and will  be
   considered at a Public Hearing, after the requisite notification is met.

   Notification

   As  part  of  the  development  review  process,   Planning  staff  sent
   notification  letters to  the neighbours.   The  primary concern  of the
   neighbours, who responded and who  spoke at the Development Permit Board
   meeting, was  the presence of  yet another residential high-rise  in the
   area.  They also objected to their views being obstructed.  

   Consent to Designation

   The  owner has  agreed that  the  heritage bonus  requested is  adequate
   compensation for the  protection of the building as  a heritage property
   and a letter to that effect is on file with the Law Department.  

   Comments of the VHC

   The Vancouver Heritage  Commission passed  the following resolutions  at
   their February 6, 1996 meeting:

        "THAT the Vancouver Heritage Commission  commends the applicant for
        the retention and designation of the Canadian Linen Co. Building.

        AND THAT the Vancouver Heritage Commission supports the application
        as presented."

   CONCLUSION

   The proposed Heritage Revitalization Agreement would enable an important
   heritage building to be preserved,  restored and maintained, in exchange
   for  a corresponding heritage  density bonus.   A development limitation
   covenant would bestow  the density bonus and  limit its use to  sale and
   transfer off-site,  consistent with the  Transfer of Density  Policy and
   Procedure.







                                   * * * * *



    General Mgr./Dept. Head:     Report dated:  April 4, 1996      

                                 Author: RGL\GMG                   

    Date:                        Phone: 7582 IRTS Number: CC96089  

    This report has been         Concurring Departments
    prepared in consultation     Joe Stubbs - Law Department
    with the departments listed                                    
    to the right, and they
                                 Bruce Maitland _ Real Estate          concur with its contents.
                                                                   
                                                                   

                                                                   
                                                                   



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