POLICY REPORT
                           BUILDING AND DEVELOPMENT

                                           Date: May 7, 1996
                                           Dept. File No. F635

   TO:         Vancouver City Council

   FROM:       Director of Land Use and Development and Manager of the
               Housing Centre

   SUBJECT:    Floor Space Relaxation, Heritage Designation and Low Cost
               Housing Proposal 577 Richards Street

   RECOMMENDATION

         A.    THAT Council approve the designation of the principal
               facade of 577 Richards Street, currently listed on the
               Vancouver Heritage Register in the "B" evaluation category,
               as a Protected Heritage Property;

               FURTHER THAT Council instruct the Director of Legal
               Services to bring forward the by-law for enactment.

        B.     THAT Council approve, in principle, for this site a Housing
               Agreement, to be drawn to the satisfaction of the Director
               of Legal Services and Manager of the Housing Centre, which
               would, in part, for 20 years, have all residential
               accommodation rented on a monthly basis, have 56 rooms
               rented at the shelter portion of social assistance for a
               single person to those receiving government assistance, and
               have the remaining 76 rooms available to anyone at market
               rates to a maximum monthly rent of $375.00;

        C.     THAT Council support a residential floor space relaxation
               of approximately 1,090.6 m2 (11,739 sf.) from 3.0 FSR to
               5.1 FSR and a total floor space relaxation of approximately
               462.6 m2 (4,980 sf.) from 5.0 FSR to 5.83 FSR as proposed in
               Development  Application DE217368.

   GENERAL MANAGER'S COMMENTS 

        The General Manager of Community Services RECOMMENDS approval of A,
        B, and C noting that these recommendations are  presented as a
        package which should be wholly adopted or wholly rejected. 





   COUNCIL POLICY

   Council policy on heritage designation states, in part, that legal
   designation will be a prerequisite to accepting certain bonuses and
   incentives. 

   The Downtown ODP states that "the Development Permit Board may, for any
   development which includes low cost housing, permit an increase in floor
   space ratio, subject to prior approval by City Council and the securing
   of a Housing Agreement to ensure the inclusion of the low cost housing".

   Council heritage and low cost housing policies both state that where a
   floor space increase exceeds 10% of the allowable, Council approval is
   required.

   Council policy is for staff to give priority processing to development
   applications which include heritage or rental housing. 

   PURPOSE

   This report seeks Council's support for an increase in the maximum
   permitted residential and maximum permitted total density at
   577 Richards Street, in exchange for the restoration and heritage
   designation of the principal facade and the securing of low cost housing
   units (see map Appendix A).

   BACKGROUND

   A development application, which included a request for a floor space
   relaxation, was initially submitted in February 1994.  It was refused
   because there was no heritage retention component and at that time the
   provisions did not exist in enabling legislation for by-law relaxations
   based on provision of low cost housing.  A second application, DE217368,
   was made on December 6, 1994.  Following modifications to the project,
   the current proposal can be supported by staff.

   The development application proposes to retain the principal facade and
   the first structural bay of the Hotel St. Clair and to demolish the rest
   of the building.  This is to be replaced with a newly constructed
   rooming house with 129 sleeping units and a ground floor commercial
   component. 




   DISCUSSION

   Compatibility with Community Planning Objectives

   The intent section of the Downtown District (DD) Official Development
   Plan includes the following goals: "to improve the general environment
   of the Downtown District as an attractive place in which to live, work,
   shop and visit"; and "to encourage more people to live within the
   Downtown District." The proposed commercial and residential uses for
   this development meet these goals.

   Heritage Value

   577 Richards was built in 1911 for Captain H. Pybus and was designed by
   Samuel B. Bird, who was also the architect for Chalmers Church. The four
   storey building is wood frame and the front facade is clad in concrete
   that has been cast to appear like stone. An articulated parapet, large
   brackets over the first floor and keystones above the upper storey
   windows are some of the decorative features of the building. It is
   listed in the 'B' evaluation category on the Vancouver Heritage
   Register.

   Zoning and Related By-law Considerations

   Based on the hardships of heritage retention and the provision of low
   cost housing, the applicant is requesting a relaxation of the maximum
   permitted residential floor space from 3.0 FSR to 4.96 FSR. This
   includes the conversion of 1.13 FSR permitted commercial floor space to
   residential plus a bonus of 0.83 FSR.  The applicant is also requesting
   a total floor space relaxation from 5.0 FSR to 5.83 FSR.  Since the
   proposed floor space increase will exceed 10% of the allowable,
   Council's approval is required.  Table 1 below describes the approximate
   floor space calculations:


                                    Table 1


                      PERMITTED                           PROPOSED
     Floor   Res.  1672.2m2 (18,000 sf.)   - max. allowed 1672.2m2 (18,000 sf.)
     Area                                  - conv. from
                                             comm.         629.5m2 ( 6,776 sf.)
                                           - bonus         461.1   ( 4,963 sf.)
                                           Total Res.     2762.8m2 (29,739 sf.)
                                               
             Comm. 1114.8m2 (12,000 sf.)                   485.3m2 ( 5,224 sf.) 


             Total 2787.0m2 (30,000 sf.)                  3248.1m2 (34,963 sf.)



     FSR     Res.     3.0 (max.)                             4.96

             Comm.    2.0 (max.)                             0.87

             Total    5.0 (max.)                             5.83



    The residential parking requirements for low-income SRO units are not
   specifically listed in the Parking By-law. The proposed 11.1 m2
   (120 sf.) sleeping units are designed for 129 low-income singles.  The
   site lies within easy walking distance of transit. The proposed
   development provides three parking spaces and one loading bay for the
   retail/commercial area as required by the Parking By-law. One additional
   space is provided for the manager of the residential portion of the
   project. A relaxation is requested based on the type of tenancy that the
   SRO units accommodate, and on the site location and financial hardship. 
   The number of residential parking stalls would be reduced from the 39
   required to 1.  The Director of Land Use and Development is able and
   prepared to approve the parking relaxation.

   The Zoning and Development By-law requires that 43 hand basins be
   provided.  The proposal is for 40 hand basins as well as 10 additional
   sinks provided in two food preparation areas on each floor.  The Housing
   Centre believes that the additional sinks and food preparation areas
   enhance the livability for the tenants and warrant relaxing the hand
   basin requirement.  The by-law also requires 11 bath tubs and is silent
   on showers.  The proposal is for 2 bath tubs on the upper two floors and
   22 showers throughout the floors, which staff believe will better suit
   the residents' needs.  On the advice of the Manager of the Housing
   Centre, the Director of Land Use and Development is prepared to approve
   these relaxations.

   Economic Viability and Support Required to Enable Heritage Conservation
   and Low Cost Housing

   The relaxations to the maximum residential floor space, maximum total
   floor space, parking, hand basins and bath tubs, if approved, will
   enable the restoration and designation of the principal facade and the
   secured (20-year) provision of low cost housing. The financial analysis
   by Real Estate Services supports the requested floor space relaxations.
   The analysis attributed approximately 60% or greater of the value of the
   relaxations to the securing of low cost housing for 20 years and 40% to
   the heritage facade retention and restoration. 

   a) Heritage Conservation
   The property owner has submitted a letter (on file with the Law
   Department) accepting the relaxations to the floor space to be granted
   under DE217368 as just and fair compensation for the designation of 577
   Richards Street and waiving any future compensation demands. Therefore,
   no additional support to achieve appropriate conservation of this
   building is required.

   b) Low Cost Housing
   There are currently 35 residential units on site, most of which rent for
   $350 per month without hot plate or fridge.  The rooms are about 93 m2
   (100 sf.) and common bathrooms are "down the hall".

   The new units would be approximately 11.1 m2 (120 sf.) with outlets
   provided for cooking facilities, fridge and cable. In the basement,
   laundry and locker space will be available. The rooms will be on floors
   two through seven.  A typical floor will contain 22 sleeping units, 4
   toilets, 2 urinals, 4 showers and 2 small food preparation areas with
   double sinks.  On the second floor there will be a small lobby/lounge
   and on the fifth floor there will be a 30.7 m2 (330 sf.) lounge
   overlooking the street. The side lightwells are 3.4 m (11 ft.) deep.  

   This proposal is the first opportunity to use the low cost housing
   provisions which were incorporated into the Downtown District ODP in
   1995.  This is also an example of the private market building new SRO
   units.  The application has been the focus of much discussion among
   staff and the applicant resulting in modifications to the plans.  The
   proposal is for basic accommodation which will increase supply of
   much-needed affordable housing in the downtown core.  Over one-third of
   the rooms will be secured for a 20 year period at rents affordable to
   welfare recipients.  The quality of the accommodation will be an
   improvement over the existing residential hotel.

   In general discussions with people from the Downtown Eastside on small
   living spaces, concerns have been expressed that housing standards,
   particularly social housing standards, will be reduced if projects such
   as this become the norm.  Housing Centre staff suggest that the priority
   for low-income housing should continue to be self-contained apartments
   (i.e., dwelling units as opposed to housekeeping or sleeping units). 
   However this project represents a type of housing that meets the needs
   of a small portion of the low-income population and should be approved
   on that basis.  It is important the supply of low-income housing be
   increased to counter both homelessness and gentrification of the
   existing low-income housing stock.  This specific proposal has been
   discussed with the Downtown Eastside/Strathcona Coalition and a
   development permit application sign has been posted.  No letters have
   been received.

   In return for density and other by-law relaxations, the owner has agreed
   to enter into a housing agreement containing the following conditions
   for 20 years:

   -  all rooms to be rented on a monthly basis;

   -  no fewer than 53 rooms will be rented at a maximum of the shelter
      portion of welfare ($325 per month) to tenants who are receiving War
      Veterans Allowance, Canadian Pension Commission Disability Pension,
      Guaranteed Income Supplement, Spouses Allowance or income from
      Guaranteed Annual Income for Need.  Rents would escalate according to
      increases to the shelter portion of welfare;

   -  no more than 76 rooms will be rented for a maximum of $375.  Rents
      would escalate with the Consumer Price Index (CPI);

   -  the residential accommodation and ancillary facilities will be
      well-managed and meet all City by-laws; and  

   -  the existing tenants displaced during site redevelopment will be
      offered other comparable accommodation.  When the new building opens,
      previous tenants will be given the first opportunity to move back in.

   The 53 rooms represent the floor space approximately equal to  2,301.7
   m2 (11,739 sf.) which is the total of the density bonus of 461.1 m2
   (4,963 sf.) and residential conversion from commercial of 629.5 m2
   (6,776 sf.) above the 3.0 FSR permitted.  

   The current owner has discussed the possibility of management by a
   non-profit society but no firm arrangements have been made.  The owner
   has said that if he cannot make such arrangements, the rooming house
   will be managed by a private operator.

   Condition

   The existing building is in stable condition but cannot structurally
   support additional storeys added on top of it.  The principal facade and
   first structural bay are to be retained and restored and existing wood
   frame windows are to be refurbished.  The new structure to be
   constructed beside, behind and above it, will have its front facade
   angled back from the street to offset the original facade.  The new
   facade has been designed to complement the existing, but with simplified
   detailing to create a neutral backdrop for the highly decorative facade
   of the Hotel
   St. Clair.

   Notification

   The Director of Legal Services has prepared the necessary Heritage
   By-law amendments and requirements have been met for notification as
   specified by the Vancouver Charter.

   The Charter permits Council, by by-law, to enter into a Housing
   Agreement.  The by-law will be prepared for Council approval once the
   Housing Agreement is finalized.

   Comments of the Vancouver Heritage Commission

   The Vancouver Heritage Commission considered the proposal on December 5,
   1994 and on July 10, 1995 and supported the revised retention and
   restoration treatment of the heritage facade and the design of the new
   addition. The Commission is also on record as supporting the floor space
   relaxations provided that the total relaxation granted be distributed
   equitably between heritage and social housing goals.  Staff believe this
   request has been met.

   CONCLUSION

   Council's long term goal is to protect heritage resources through
   designation and to encourage affordable low-income housing.  The owner
   of 577 Richards Street has agreed to the heritage designation of the
   principal facade and to maintain the SRO units for 20 years in return
   for relaxation of: the maximum permitted residential and total floor
   space; and requirements for parking, hand basins and bathtubs.  The
   owner has agreed the retention of the principal facade and first
   structural bay of the heritage building is economically viable and has
   agreed that he will not seek any compensation from the City in the
   future. Designation will ensure protection from inappropriate
   alterations or demolition in the future.   It is recommended that Council support relaxation to the maximum
   permitted residential floor space and the maximum permitted total floor
   space. It is also recommended that Council approve the designation of
   the principal facade and, in principle, a housing agreement for this
   site. 
                          *    *      *      *     *





   General Manager/Dept. Head        Report dated May 7, 1996       

                                     Authors: Jill Davidson          

                                              Gerry McGeough            Date                            

                                     Phone:873-7670 IRTS Number     
   General Manager/Dept. Head

                                  
                                     Concurring Departments

   Date                              Law - Brian Porter - 7501       

                                     Manager of Real Estate -
                                     Bruce Maitland - 7420           
                                           This report has been prepared
   in consultation with the
   departments listed to the
   right, and they concur with its
   contents.






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