ADMINISTRATIVE REPORT
Date: June 18, 1996
Dept. File No. F645
TO: Vancouver City Council
FROM: Director of Community Services, Social Planning
and Manager of the Housing Centre
SUBJECT: City Funding for Development of
a New Downtown Eastside Women's Centre
RECOMMENDATION
A. THAT Council approve a Capital Grant of $152,355 to the
Bridge Housing Society for Women to help fund construction
of a new facility for the Downtown Eastside Women's Centre,
in conjunction with the development of the Bridge housing
project. This Grant is conditional on sufficient funds
being raised by the Bridge Housing Society, including the
City's total capital contribution ($210,000), to enable
completion of Phase I of the social service centre
($450,000).
The source of funds for this Grant is the City-owned Social
Service Facilities component of the 1996 Basic Capital
Budget.
B. THAT, if development of the social services centre in the
Bridge housing project proceeds as planned, a further
$57,645 be transferred from the City-owned Social Services
Facilities Capital Budget to the Property Endowment Fund to
pay for the centre's prorated share of prepaid land rent, on
the date land rent is due for the housing project.
GENERAL MANAGER'S COMMENTS
This report recommends that the City disburse its capital
contribution ($210,000) to the social service centre, as soon as
the Bridge Society has raised an additional $240,000 from other
sources. This is so that construction can begin on the housing
project as soon as possible. However, this arrangement does
raise the possibility that the Society will not be able to come
up with the final
$250,000 necessary to complete the centre. In the
worst possible case, where the City is forced to pay back all of
the Phase I donors ($240,000), the City would be responsible for
completing the Centre entirely on its own for a total outlay of
$640,000 ($700,000 minus the $60,000 prepaid land rent the City
would pay itself). At present, there is no funding source
identified for additional City support. One way of eliminating
this risk is to disburse the City's contribution only when the
Bridge Society has raised all of the additional $490,000 required
to complete the Centre, noting this would delay construction of
the housing project.
The General Manager of Community Services submits A and B for
CONSIDERATION.
COUNCIL POLICY
It is Council policy to support the development of new and improved
community facilities to serve the needs of Vancouver residents.
Provision of such facilities in the Downtown Eastside is a City
priority.
A and B involve a grant and therefore require 8 affirmative votes for
approval.
PURPOSE
This report seeks Council approval of a capital contribution toward
the development of a social service centre on the ground floor of the
Bridge Society non-market housing project proposed for the 100 East
Cordova Street site.
BACKGROUND
Almost 20% of the 6,000 single residents in the Downtown East-side are
women. Living in small sleeping rooms in SRO hotels, single women
must make their way in an often intimidating and sometimes violent
male world. The continual stress and insecurity of such an
environment cause single women to suffer medical problems, substance
abuse, mental illness, and emotional fatigue.
Safe, secure and affordable shelter with appropriate support and
referral services for single Downtown Eastside women is needed to help
alleviate this problem.
The Bridge Housing Society for Women in partnership with the Downtown
Eastside Women's Centre propose to develop an eight-storey 47-unit
non-market housing project with a social service centre on the ground
floor. The project is proposed for the 100 East Cordova Street site
which the Manager of the Housing Centre is recommending in a companion
report be purchased by the City and leased to the Bridge Society for
60 years. The housing portion of the project, targeted to single
women living in Downtown Eastside SRO hotels, would be operated by the
Bridge Society. The social service centre would be subleased to the
Downtown Eastside Women's Centre.
The Women's Centre is currently located in inadequate premises on the
ground floor of the City-owned and operated Central Residence at 42-44
East Cordova, half a block west of the proposed new site. The Centre
provides general advocacy and referrals, support and crisis
intervention, monthly programmed activities, and a drop-in centre that
offers free clothing, showers, laundry and lunch, to Downtown Eastside
women. The Centre presently pays $655 per month or $7,860 per year
inclusive of property taxes to the City. This rent serves to reduce
the BCHMC housing operating subsidy to the City for the Central
Residence. Loss of this rent therefore has no impact on City
revenues. The Women's Centre annual operating budget is $365,000.
Funding comes from a variety of sources including a 1996 Community
Services Grant from the City of $66,000.
CAPITAL COSTS
It is estimated that the social service centre will cost a maximum of
$700,000. This includes a prorated share of prepaid land rent
($57,645), construction costs, and development fees and charges, but
excludes the cost of furnishings, equipment and kitchen appliances.
In order to expedite construction of the housing portion of the
project, fund-raising for the social service centre has been organized
in two phases:
Phase I $450,000
Phase II $250,000
Total $700,000
Phase I will cover the cost of constructing the shell and finishing
the exterior of the ground floor of the building, plus the prorated
share of prepaid land rent. Phase II includes the cost of finishing
the interior of the space, excluding furnishings, equipment and
kitchen appliances. As soon as Phase I funds are secured, BCHMC will
approve the construction start for the housing.
CITY CAPITAL CONTRIBUTION
The Director of Community Services, Social Planning, is recom-mending
a total City contribution of $210,000 towards the capital cost of the
social services centre. This amounts to about 30% of the total.
If approved, the City's contribution would be disbursed as follows:
a) $152,355 to the Bridge Society towards con-struction of
the social service centre; and,
b) $57,645 transferred from the City Capital Plan Budget
to the City Property Endowment Fund to cover the social
service centre prorated share of prepaid land rent, on
the date land rent is due for the housing project.
City funds will not be dispersed until Bridge has raised sufficient
funds to pay the Stage I costs of the centre ($450,000) or $240,000 in
addition to the City's capital contribution.
The 1996 Basic Capital Budget includes $387,000 for City-owned social
service facilities. This would be the source of funds for the
proposed $210,000 contribution to the project.
STATUS OF FUND RAISING
The Bridge Society has advised that to date they have raised a total
of $207,500 towards the capital cost of the centre from non-profit and
private sources:
Source Amount
Vancouver Foundation $ 50,000
Face the World $ 50,000
Central City Mission $ 50,000
Real Estate Foundation $ 30,000
Imperial Oil $ 10,000
McLean Fund $ 5,000
CIBC $ 2,500
Rotary Club $ 10,000
Total $207,500
Bridge should have little difficulty in raising the additional $32,500
required for Phase I to proceed.
In addition, Bridge has also applied to BC21 for a capital grant of
$249,000. BC21 officials advise that they will not be making a
decision on their grant until the City secures the site and commits
the City's capital contribution to the centre. If approved, the BC21
grant would almost entirely pay for Phase II of the centre. Bridge
would continue fund-raising to pay for the needed furnishings,
equipment and kitchen appliances.
CONTINGENCY PLANS
While Social Planning and Housing Centre staff are confident that
given sufficient time all of the capital funds to build the social
service centre will be raised, contingency plans have been discussed
with the Bridge Society, the Women's Centre and BCHMC.
If Bridge does not raise Phase I funds within 6 months of Council
approval of the lease terms for the site, the City and BCHMC may
require that the project be redesigned as a housing only project
without the social service centre. BCHMC has agreed that this will
not in any way jeopardize funding for the housing.
Once Phase I funds have been secured and the project is under
construction, the Bridge Society has a further 8 months in which to
raise the remaining Phase II funds ($250,000). Should sufficient
funds not be raised by the end of this 8 month period, the City may
elect to sublease the social service centre from the Bridge Society
for an alternate purpose.
In such a case, the City would, in consultation with the Bridge
Society and BCHMC, consider several options including but not limited
to:
a) leasing the social service centre to another community
agency serving the needs of Downtown Eastside
residents;
b) using the social service centre for an appro-priate
civic purpose; or,
c) leasing the social service centre for a compat-ible
retail or commercial use.
Depending on which option is chosen, the City may have to repay some
or all of the non-civic donors which have invested funds in the social
service centre up to that time (a maximum of $240,000), as well as
come up with the Phase II funds ($250,000) required to complete the
centre, for a total possible additional City outlay of $490,000.
However, it is anticipated that if an alternate deserving community
service use was being proposed, at least some of the non-civic donors
would not want a refund. Further, the Director of Community Services,
Social Planning would consider recommending a capital contribution
from the City (1997-99) Capital Plan budget to cover the shortfall if
an alternate deserving community service use was proposed.
CONCLUSION
This report recommends a $210,000 City (1994-96) Capital Plan,
Community Services Fund contribution towards the cost of developing
the social service centre on the ground floor of the project. This is
about 30% of the total estimated cost of the centre ($700,000). The
Bridge Society has to date raised $207,500 from private and non-profit
sources. Approval of the City capital contribution would increase the
total raised to date to $417,500 which is about 60% of the total.
While the City will be taking a calculated risk once Stage I funds
have been committed, Social Planning and Housing Centre staff believe
that, given sufficient time, the total ($700,000) fund-raising
objective can be achieved.
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