A12 ADMINISTRATIVE REPORT Date: February 6, 1997 File No. 590 120 CC File 5104-1 TO: Vancouver City Council FROM: General Manager of Engineering Services SUBJECT: Terminal City Club Development - Lease of Civic Plaza RECOMMENDATION THAT Council authorize staff to enter into a lease agreement satisfactory to the General Manager of Engineering Services and the Director of Legal Services, to allow the Terminal City Club development to use a portion of the civic plaza, located at 901 West Hastings, as shown on Appendix A, for construction and loading activities, at a rate of $1,620 per month. COUNCIL POLICY There is no applicable Council policy on this issue. PURPOSE The purpose of this report is to seek Council approval to lease a portion of the civic plaza for the construction and loading activities of the Terminal City Club (TCC) development. BACKGROUND As part of the City-Bentall joint venture parking agreement, Bentall constructed a 400 stall underground parkade at 901 West Hastings, with a public plaza at grade. To facilitate this construction, Bentall entered into a reciprocal easement agreement with the adjacent property owners, Terminal City Club Incorporated for access purposes and minor encroachments below grade relating to excavation. TCC also secured future rights for redevelopment of their site under this agreement. In the fall of 1992, the parkade was completed, and the City assumed ownership of the property and the parkade. In the spring of 1996, TCC advised the City of its plan to proceed with demolition of the existing building, and to commence construction of their new development. DISCUSSION TCC is currently redeveloping their site at 837 West Hastings Street, and has made a request to the City to utilize a portion of the adjacent civic plaza for their construction and loading needs. The existing reciprocal easement agreement between the City and TCC allows for minor encroachments below grade relating to shoring, formwork, and construction of the foundation wall, and an allowance for the overhead crane. The use and occupation of the civic plaza for loading, storage, and construction activities lies beyond the intent of this agreement. Currently, TCC is proceeding with the demolition and excavation phase of their project, this phase being expected to be completed in March 1997. TCC requested the use and occupation of a one foot wide strip of the civic plaza adjacent the property line for the erection of scaffolding for demolition. This minor encroachment for a 2-month period was dealt with by a licence agreement through Real Estate Service. A fee based on the standard street occupancy rate of $1.50 per 10 square metres per day was applied for use of the 700 square feet of the civic plaza. For the construction phase of TCC's development, TCC has requested a more significant area of occupation for a period of 15 months, from March 1997 to May 1998. TCC is requesting the full use of the east planter area for loading, storage, staging, and other construction activities. This area comprises an approximately 6.5 metre wide strip of the civic plaza along the east property line, with an area of 360 square metres (3875 sq.ft.) as shown in Appendix A. There are benefits in allowing TCC to use this area as vehicular loading activities on Hastings Street can be reduced. Loading activities on Hastings Street may be difficult for TCC and the City since the street is narrow at this location (2 lanes in either direction), is regulated with rush hour and no parking regulations, and is adjacent to a bus zone and an intersection. In similar situations, in which the City allows use of the street for construction activities, a street occupancy fee is applied. This civic plaza is a public right of way and the request from TCC should be treated in a similar manner. For an area of 360 square metres, and applying the street occupancy rate, the fee would be $1,620 per month. TCC would be responsible for restoring the parkade and plaza to its original condition. Also, solid wood hoardings are to be constructed to the City's satisfaction to separate the construction area from the remainder of the plaza. This lease area only commits a fifth of the plaza width, leaving ample pedestrian aisle space and the large landscaped open space to the west for the enjoyment of the public throughout the construction period. * * * * *