SUPPORTS ITEM NO. 4 CS&B COMMITTEE AGENDA NOVEMBER 7, 1996 ADMINISTRATIVE REPORT Date: October 22, 1996 Dept. File: VMC10.22 TO: Standing Committee on City Services and Budgets FROM: Director of the Office of Cultural Affairs, Director of Finance and the Manager of Facilities Development SUBJECT: Vancouver Museum Revitalization Program RECOMMENDATION THAT Council approve an allocation of $490,000 to fund the first phase of Vancouver Museum Revitalization Program, the move of the museum gallery from 'C Wing to 'B Wing, in advance of approval of the 1997 Capital Budget; interim financing from Revenue Surplus. GENERAL MANAGERS COMMENTS The General Managers of Community Services and Corporate Services RECOMMEND approval of the foregoing. COUNCIL POLICY On September 24, 1996, Council approved in principle the 1997-1999 Capital Plan, including an allocation of $3.0 million to the Vancouver Museum Revitalization Program. PURPOSE The purpose of this report is to seek Council s approval to fund the first project in Phase 1 of the Vancouver Museum Revitalization Program, in advance of approval of the 1997 - 1999 Capital Plan, in order to dovetail the construction schedule of the Vancouver Museum with that of the Pacific Space Centre (PSC) currently underway, and to meet the Museum s exhibition commitment on February 15, 1997. BACKGROUND Since February of 1996, Council has approved a series of actions to begin a process of revitalization at the Vancouver Museum, including approval in principle of $3.0 million in the 1997 - 1999 Capital Plan. The Museum s revitalization project will make improvements to the City-owned building in Vanier Park, necessary to upgrade the Museum facility to contemporary building codes and museum standards, to improve the lay-out and accessibility of the museum, and to provide current and relevant exhibits necessary to attract new and repeat visitors. The Pacific Space Centre, the co-tenant in the building, has also been planning a major capital expansion project which includes the refurbishment of the Star Theatre, 670 m2 of new space sciences exhibition area, the "Hot Seat Experience", a simulated space ride, and an interactive high-tech theatre. They will have completed Phase 1 of their project by late November and are planning to proceed with Phase 2 as soon as possible. DISCUSSION Both projects require that the building co-tenants work co-operatively. Staff are pleased to report that since the appointment of the Vancouver Museum Commission (VMC), much work has been accomplished in this area. The VMC and PSC have entered into agreements, subject to the approval of the City as Landlord, which cover the allocation of space within the building, the sharing of capital costs relating to space allocations, and construction protocols, scheduling and activities. One of the results of these discussions is an agreement to relocate part of the PSC into what is currently museum gallery space. This move has a number of long-term benefits to both institutions - it locates the PSC ride, which will generate significant vibrations, on grade and not over the Museum artifact collection areas; and it improves the Museum s layout and access to loading. Scheduling the move is complex. The timing of the move needs to accommodate the PSC s timetable to access Infrastructure funds and the Museum s outstanding exhibition commitments. The Museum s C-wing gallery area will need to be closed to the public for a period of three months to undertake the move. Working together, the PSC and VMC have determined that the best time to make the move is November 15, 1996, through February 15, 1997. The Museum has a firm commitment to a touring exhibition which must open on February 15, 1997. If the November - February period is not possible, then the Museum must mount the touring show in the current gallery space and delay the move until the exhibition closes in June 1997. Undertaking the move during the June - August period would close the galleries during the key summer months for attendance and revenue-generation. The next opportunity would be in October 1997. The PSC have indicated that they believe a delay until fall of 1997 would jeopardize their Infrastructure funding. The VMC and PSC have approached the City with a request which will enable them to proceed in the December 1996 - February 1997 time slot. Staff are therefore submitting a request to Council from the VMC for $490,000 to fund the first project in Phase 1 of the revitalization program, the move of the museum gallery from the 'C Wing to the 'B Wing. The total VMC capital revitalization budget is $15 million, of which $3 million was allocated, in principle, in the City s 1997 - 1999 Capital Plan. The VMC project has been broken into two phases. Phase 1 (project budget of $4.3 million) will include reconfiguring and refurbishing the galleries, infilling the B-wing courtyard and some exhibition infrastructure. In addition to the funds approved in principle through the 1997 - 1999 Capital Plan, the VMC has received a donation of $1.2 million and are committed to raising the balance from the private sector. The VMC s budget to complete the move, contained within the $4.3 m above, is $490,000. This includes $430,000 in construction costs to install sprinklers and refurbish the galleries, as well as $60,000 in exhibit costs. The Museum s construction budget was prepared based on their Quantity Surveyor s estimate and will be further amended to ensure that the project cost will stay within the funding envelope. Staff have also reviewed the PSC s project to ensure that it has met all of the City s conditions required under their lease and through previous Council directions. Staff are satisfied that PSC will have secured the balance of the necessary private sector funds through a vendor financing arrangement, and that the form of financing is acceptable to the Infrastructure Program. As well, staff have reviewed the concept drawings generated by the PSC and VMC s space planning consultants and believe that they meet the needs of the PSC, the VMC and the City. In order to complete any construction work, both societies will need to comply with all necessary regulatory approvals. Financial Implications Council is being requested to approve the allocation of the $490,000 in advance of the approval the 1997 Capital Budget, with interim financing from Revenue Surplus. However, it is noted that, should the Provincial Government impose significant reductions in their local government grant to the City, there will be significant challenges for the new Council to face in setting the 1997 Operating Budget. One option that Council would consider is making reductions to the 1997 Capital Budget - Capital from Revenue, and the Museum project might be identified as an area to make such reductions. Regardless, it is the view of staff that the work recommended in this report should proceed, even if the balance of the Museum project is put on hold to a future year. CONCLUSION In reviewing the PSC and VMC s improvement projects, staff believe that the benefits of co-ordinating these two projects has sufficient merit to submit this request for funding to Council in advance of the Capital Plan approval process. Staff commend both Societies in forging a closer working relationship which will benefit both institutions, and most importantly, the public. * * * * *