ADMINISTRATIVE REPORT Date: September 30, 1996 TO: Vancouver City Council FROM: General Manager of Community Services SUBJECT: Roundhouse Childcare Centre/ Concord Presentation Centre Proposal RECOMMENDATION A. THAT Council approve the temporary relocation of the Concord Presentation Centre on the Roundhouse school/childcare site as per the terms and conditions noted in Appendix I, on the understanding that Concord will proceed with delivering its Roundhouse childcare requirement for a September 1, 1998 opening. B. THAT Council require Concord to pay all extra costs as per the terms and conditions noted in Appendix I. C. THAT Council authorize the Director of Legal Services to amend the existing Roundhouse childcare legal agreements with Concord to include the terms and conditions noted in Appendix I, and to execute an agreement to license at a nominal rate, from the date that land title is turned over to the City until September 30, 2002. COUNCIL POLICY The Roundhouse rezoning report which included the Roundhouse childcare requirement, was referred to public hearing on September 24, 1991. The legal agreement pertaining to the childcare requirement was signed July 22, 1993. The rezoning was enacted July 29, 1993. PURPOSE The purpose of this report is to present Council with an update on the development issues related to the Roundhouse childcare facility and to seek Council approval for a solution jointly proposed by City staff and Concord Pacific, in consultation with the Vancouver School Board staff. BACKGROUND The proposed Roundhouse childcare facility is one of the five childcare facilities negotiated as a condition of rezoning for False Creek North. It is to be constructed and equipped by the developer, at no cost to the City, and turned over to the City for ongoing operation. The facility will provide sixty-nine spaces of childcare and a joint-use family place/school aged program area. Initial plans called for the childcare facility to be built within and on the roof of the proposed elementary school, thereby linking construction of the permanent childcare facility to the completion of the school. A new strategy was required for the following reasons: 1. Interest in and demand for childcare services in the area are growing. It is anticipated that the Roundhouse childcare centre will quickly fill to capacity if we target a September 1998 opening date. 2. The School Board is unlikely to receive capital funding approval from the Ministry of Education to build the new school for at least five years. The Ministry of Education will only consider new construction requests once there are sufficient numbers of school-aged children living in the area. 3. A rooftop childcare centre severely limits future school expansion options. 4. Concord's occupancy permits for other market sites in the Roundhouse area, are contingent upon the childcare requirement being delivered. For the past year, Social Planning has explored a number of possible approaches to expedite the timely development of childcare services in the Roundhouse area including: childcare portables, leasing temporary space, financing the design and construction of the school shell in order to facilitate the permanent construction of the childcare centre, finding a new location for the childcare facility. All of these options, however, create significant financial and/or logistical difficulties for the City, the childcare operator, the developer, the School Board or other community interests. Fortunately recent discussions with Concord have uncovered a creative solution that seems to have real potential for all parties. DISCUSSION With the assistance of Concord, it has been determined that a permanent childcare facility could be built in advance of the school as a self-contained two-storey structure on the proposed school/childcare site and adjacent to David Lam Park. It appears that this facility could be designed to meet the programming needs of the childcare operations without unduly compromising the design of the future school or underground parking. There would, however, be some additional design and construction costs involved in this phased-in approach and under current legal agreements these would be the responsibility of the City and School Board. Concord has indicated a willingness to cover these extra costs and to commit to a childcare opening date target of September 1998. In return, Concord would like permission to locate its Presentation Centre on the school/childcare site for at least six years. City and School Board staff have reviewed preliminary schematics drawn up by Concord's architects. The proposal includes: - the temporary siting of the Presentation Centre with required at-grade parking; - the development of a permanent childcare facility on-site; the later addition of the Roundhouse school. Under this proposal, the childcare facility and the Presentation Centre would co-exist on-site for four of the proposed six-year period. While the Presentation Centre would compromise the size of the childcare outdoor play area, this disadvantage is far outweighed by the positive advantages of avoiding disruption of service and relocation logistics of other options. At time of the removal of the Presentation Centre, only minor modifications would be required to provide appropriate outdoor play space for the childcare facility. The design of the childcare facility would be such that when school construction does proceed, the school facility could be constructed with little or no disruption to the childcare service. This proposal has benefits for all parties: The City: - The intended family/child presence in the neighbourhood is established. - Timely delivery of the developer's existing childcare requirement. - No need to co-ordinate or finance temporary or relocation childcare options. - No additional design or construction costs for a phased-in approach. - An efficiently designed, permanent childcare facility immediately adjacent to David Lam Park. - Developer's strong commitment to a collaborative venture. Childcare Operator: - A permanent, ground-oriented location adjacent to the park but still providing second storey security for the infants and toddlers. - Confirmed project time-lines with sufficient lead-time to address design and start-up issues. - Opportunity to establish community visibility and identity prior to the building of the school. - Opportunities for collaborative partnerships with the developer. - Continuous operation even during the school construction phase. Community: - Delivery of the Roundhouse childcare services in a timely fashion for use of young families living or working in the neighbourhood. - Development of the site and a sense of a completed neighbourhood. - Increased surveillance of the park. - Continued use of the Presentation Centre by various community groups when Concord is not actively marketing. School Board: - Utilization of the site so the neighbourhood does not react negatively to the development of the school at a later date. - Preliminary Development Permit design costs covered by Concord. - Parameters of school design set and lead-time available to develop plans which adjust to fixed childcare facility. - Simplified construction process for underground parking and school facility. - Opportunity to operate school facility independently without incorporation of childcare facility. Concord: - An excellent temporary location for the Presentation Centre which does not tie up any of the market sites or incur site costs. - Delivery of its childcare obligation and release of occupancy permit holds. - Provision of a permanent childcare facility (no portables) - The increased marketability of a neighbourhood which feels completed. - Opportunities for collaborative partnerships with the childcare operator when marketing to families. If Council agrees that this proposal should be pursued, the existing legal agreements pertaining to the childcare and the school, require minor revisions. As well, an agreement to license is necessary to allow the Presentation Centre on-site, when the City takes ownership of the land and the childcare facility in September 1998. Staff from Concord, the City and the School Board have worked together to develop a set of terms and conditions which address the various issues to the satisfaction of all parties (See Appendix I). It is recommended that Council approve the temporary relocation of the Concord Presentation Centre onto the future childcare/ school site for a period of up to six years ending September 30, 2002, on the condition that Concord agrees to the terms outlined in the attached Appendix I. Given the developer is agreeing to assume responsibility for all additional design and construction costs to achieve this solution and will be making an annual payment in lieu of taxes, it is also recommended that only nominal rent be charged against the Presentation Centre for the initial six-year term of the license. Any option to renew after that period, should be subject to approval from the School Board and negotiation of a market rate. It is further recommended that Council authorize the Director of Legal Services to execute the necessary legal agreements and/or revisions of current legal agreements to address all of the recommended terms and conditions. CONCLUSION City and School Board staff have been working with the developer to resolve how the required Roundhouse childcare facility could proceed in advance of the construction of the proposed elementary school. A creative solution is being proposed which ensures the delivery of a permanent childcare facility in a timely fashion, maintains the integrity of future school development and allows the developer to temporarily locate the Presentation Centre for up to a six-year interim period on the school/childcare site with the conditions as noted above. It is recommended that Council approve this proposal and direct City staff to execute the necessary legal agreements and work plans. * * * * * APPENDIX I ROUNDHOUSE CHILDCARE/CONCORD PRESENTATION CENTRE TERMS AND CONDITIONS The Concord Presentation Centre may be temporarily located onto the future Roundhouse childcare/school site for a period of up to six years ending September 30, 2002, on the condition that Concord agrees: - to cover all costs associated with locating and removing the Presentation Centre, including landscaping the site and providing on-site parking as required; - to cover the costs of the Preliminary Development Permit phase for the future school and the childcare facility, working closely with School Board and City staff; - to proceed with the required design and construction of the childcare facility, in a timely fashion to meet the September 1998 opening date, working in collaboration with City staff, the School Board staff and the child-care operator to ensure that the design and exterior appearance of the childcare facility function appropriately as a stand alone facility and later as an integral component of the school/childcare complex. All additional costs for the childcare facility, the temporary at-grade parking and landscaping to be paid by the developer; - to make an annual payment to the City in lieu of property taxes, for that portion of the site used for the Presentation Centre and its parking, from the date that the City takes ownership of the land until the expiry of the agreement to license; - to pay any costs associated with re-designing and completing the ground level outdoor play area for the childcare facility after the removal of the Presentation Centre; - to pay all costs associated with completing the roof top outdoor play areas for the childcare facility at time of school construction; - to pay the costs associated with the underground parking required for the school and childcare facilities as per the existing agreement; - if school construction is not imminent, to pay any costs associated with temporary landscaping of the Presentation Centre site, once the Presentation Centre is removed so the site blends with the childcare outdoor area and surrounding park; - to cover the costs of integrating the existing electrical distributor into the landscape plan of the Presentation Centre and into the design and construction of the school/childcare complex; - that the City may give Concord 36 months notice to vacate any time after the City takes possession of the site, if the School Board confirms that there is sufficient demand to proceed with the capital planning process for the school and the construction of the school needs to commence no later than the end of such notice period. * * * * *