SUPPORTS ITEM NO. 2
CS&B COMMITTEE AGENDA
SEPTEMBER 26, 1996
ADMINISTRATIVE REPORT
Date: September 11, 1996
TO: Standing Committee on City Services and Budgets
FROM: Manager of Real Estate Services
SUBJECT: Children's Foundation Modifications of Lease -
3440 Slocan Street
RECOMMENDATION
THAT Council approve a request from the Children's Foundation to
modify the term of a lease approved by Council on July 28, 1994
to extend the term from 5 years to 25 years at a nominal rate and
to grant 2 - 10 year options at a nominal rate, the options to be
exercised by the Children's Foundation, subject to the Children's
Foundation or its successor, continuing to operate facilities for
children and continuing to have operating agreements with the
Provincial Government.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of
the foregoing.
COUNCIL POLICY
Approval of a grant requires eight affirmative votes from Council.
PURPOSE
The purpose of this report is to modify the terms and options of the
lease between the Children's Foundation and the City of Vancouver for
3440 Slocan Street to enable the Foundation to receive Provincial
funding and grants for the construction of new facilities on the
subject site.
BACKGROUND
The Children's Foundation or its predecessor has operated a facility
for emotionally disturbed children on a City-owned site, located at
18th Avenue and Slocan Street for over 20 years. The last lease with
the City was 30 years for $1, expiring in June 1994.
Council, on July 28, 1994, approved the following motions:
A. THAT Council approve a request by the Children's
Foundation for a lease with nominal rent for five years
with a 5-year option for the property located at 3440
Slocan Street, as outlined in Appendix A of the
Administrative Report dated July 7, 1994, and
containing approximately 114,747 sq. ft. (2.64 acres)
B. THAT the portion of Lot A and Lot B required for use by
the Children's Foundation (as shown in Appendix B of
the Administrative Report dated July 7, 1994) be
transferred from the Property Endowment Fund to the
Capital Fund.
C. THAT the Director of Housing and Properties report back
on other options prior to sub-dividing and selling
these lots.
PRESENT SITUATION
The subject property has been rezoned for the uses as proposed by the
Children's Foundation. Construction of the new facility is planned
for the Fall of 1996 and the lease, as approved by Council, is ready
to be executed by both parties. The Province, as a condition of its
funding, is requiring a longer-term lease and options as outlined in
the Children's Foundation letter of September 6, 1996 (Appendix A).
The Manager of Real Estate Services recognizes the Province's need for
more security of tenure for the Foundation and negotiated the
following with the Attorney General's Office:
A. A term certain of 25 years, commencing in 1996.
B. Two ten-year options subject to:
- The Children's Foundation or it's successor
continuing to operate on the subject site a facility
for children.
- The Children's Foundation or it's successor
continuing to have operating agreements with the
Provincial Government.
The value of the grant for 45 years is estimated to be $3M.
The Manager of Real Estate believes the foregoing lease terms are
reasonable under the present circumstances.
The Director of Social Planning concurs with the recommenda-tions of
the Manager of Real Estate Services.
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