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


        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.


   There is no applicable Council policy on this issue.


   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.


   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

   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.


   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

   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.

                           *     *     *     *     *