POLICY REPORT
                                  REAL ESTATE 

                                           Date: April 23, 1996
                                           Dept. File No.: 108

   TO:            Vancouver City Council

   FROM:          Manager of Real Estate Services and Director of Legal
                  Services

   SUBJECT:       Standing Authority to Execute Various Agreements

   RECOMMENDATION

        A.   THAT Council authorize the Manager, Deputy Manager, or
             Supervisor of Negotiations of Real Estate Services to execute
             Licence Agreements, Month-to-Month Leases, and Offers to Lease
             and Leases where the total rental value is less than $250,000
             and the term (including renewal options) is no more than 10
             years ("Commercial Lease"); 

             FURTHER THAT the Director of Finance be authorized to approve
   the material terms of the Commercial Lease. 

        B.   THAT Council authorize the Director of Legal Services to
             execute Statutory Right-of-Way agreements on City-owned land
             in favour of B.C. Hydro, where required as a condition of
             subdivision approval and for utility purposes only, after
             consultation with the General Manager of Engineering Services.

        C.   THAT Council authorize the General Manager of Corporate
             Services or Director of Finance to execute Land Title Office
             transfer documents, in addition to the present signing
             officers who are the Manager of Real Estate Services, the
             Deputy Manager of Real Estate Services and the Supervisor of
             Negotiations.

        D.   THAT Council authorize the Manager of Real Estate Services to
             use real estate marketing practices and commission rates, in
             accordance with industry standards, when leasing property on a
             short-term basis.  

   GENERAL MANAGER'S COMMENTS

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

                                     - 2 -

   COUNCIL POLICY

   Section 190 of the Vancouver Charter authorizes Council to provide for
   disposing of any real or personal property of the City by lease or
   license when in the Council's opinion such property is not required by
   the City, upon such terms and conditions as may be deemed expedient.

   The Director of Finance can approve leases and lease renewals, if the
   total value is less than $150,000 and the term is no more than
   5 years.

   Regarding the City's real estate marketing practice, Council resolved in
   part on January 17, 1995:

        "...the Manager of Real Estate to use marketing practices and real
        estate commission rates in accordance with real estate industry
        standards for the sale or long-term lease of properties other than
        single family residential lots;.."

   PURPOSE

   The purpose of this report is to request Council approval:

   i)   to delegate the signing authority of various routine documents to
        designated staff positions, and      

   ii)  to clarify that the City's current real estate marketing practices
        and commission rates also apply to short-term leases.

   DISCUSSION

   Presently, the Director of Finance can approve leases if the total value
   is less than $150,000 and the term is no longer than 5 years.  While
   there is no direct authority, it has been the practice of the Manager of
   Real Estate (and formerly the Supervisor of Properties) to execute
   month-to-month leases and License Agreements.  These precedent documents
   have been prepared by the Law Department.

   The following changes to existing authorities are proposed.

   1.   Lease and License Agreements 
        (Recommendation A refers):

        In an attempt to standardize the City's procedures, to provide more
        certainty to tenants and to reduce staff time, Real Estate Services
        and the Law Department have been working on 
        standardizing a number of documents which will be updated from
        time-to-time.  A precedent document (a form of contract
        pre-approved by the Law Department) has been prepared for
        Month-to-Month leases, Offers to Lease, Commercial Leases and
        License Agreements.  Prior to negotiating, Real Estate Services
        staff request Engineering and Planning clearance on the lease term
        and conditions.  

        Real Estate transactions based on these precedent documents will
        not be prepared by the Law Department, so staff feel that it would
        be more efficient if the Manager, Deputy Manager or Supervisor of
        Negotiations of Real Estate had the authority to execute such
        documents.  In addition, staff are seeking authority to increase
        the total value of the Commercial Lease from $150,000 to $250,000
        to reflect today's rental market, noting that the Director of
        Finance would still approve all Commercial Leases.  Council is
        requested to confirm the long standing practice of execution of
        License Agreements by the management staff of Real Estate Services.

   2.   Subdivision Requirement for Utility Statutory Right-of-Way
        (Recommendation B refers):

        There are situations where the City is required to provide a
        statutory right-of-way to B.C. Hydro for utility purposes on
        City-owned land, as a condition of subdivision approval. 
        Currently, Council approval must be granted each time for this
        administrative matter.  Staff request that the Director of Legal
        Services be authorized to execute these agreements on behalf of
        Council but only after consultation with the General Manager of
        Engineering Services. 

   3.   Land Title Office Transfer Documents 
        (Recommendation C refers):

        The Manager, Deputy Manager, or Supervisor of Negotiations of Real
        Estate is authorized to execute Land Title Office transfer
        documents.  This can cause a delay in processing the documents,
        when all of these staff are out of the office on business.   This
        situation occurs frequently.  We therefore recommend that two
        additional senior staff be authorized to execute these documents;
        the General Manager of Corporate Services and the Director of
        Finance.

   4.   Real Estate Marketing Practice and Commission Rates 
        (Recommendation D refers):

        With the exception of single family lots which are publicly
        tendered, Council policy is to sell or long-term lease City
        property using industry real estate marketing practices and at
        industry commission rates.  Staff recommend that the previous
        Council resolution be clarified to explicitly include short-term
        leases in this policy.

   CONCLUSION

   We recommend that staff be authorized to execute the documents named in
   this report in light of changing market conditions, and to improve
   efficiency.


                               *   *   *   *   *


   
   General Manager                   Report dated  April 23, 1996   

                                   
   Date                              Author Anne Bancroft-Jones      

   This report has been prepared     Phone 7422                     
   in consultation with the
   departments listed to the
   right, and they concur with its   IRTS Number                     
   contents.                         Concurring Departments
   Division Head                   
                                     Engineering                     
   Date                           
   Director of Legal Services                                        

                                                                     

                                                                    
   Date                           
   





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