ADMINISTRATIVE REPORT

Date: Feb.14,1997

Dept. File No. F880

CC File No. 5652-1/8103

TO: Vancouver City Council

FROM: Manager of the Housing Centre

SUBJECT: Commercial Parking Easement,

Coal Harbour Housing Co-operative

RECOMMENDATION

THAT Council authorize the Director of Legal Services to execute, on the City’s behalf, an easement and companion development agreement to allow Canadian Pacific Properties Inc. (CPPI) to develop and operate 104 commercial parking spaces within the Coal Harbour Housing Cooperative to be developed on Lot A of the Public Harbour of Burrard Inlet, Plan LMP30125, on the following terms and conditions:

-CPPI to construct and maintain the 104 parking spaces, including a share of taxes and services, at its expense;

-the easement to commence on substantial completion of the Coal Harbour Housing Cooperative for a term of 60 years;

-the easement to be for a nominal rent; and

-such other terms and conditions to the satisfaction of the Director of Legal Services.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

The Coal Harbour Official Development Plan (ODP) and the Marina District CD-1, permit Marathon to develop a marina at the north foot of Nicola. The marina parking can be located within any of the development sites in the Marina Neighbourhood.

Council authority is required before the Director of Legal Services can execute any legal documents on the City’s behalf.

PURPOSE

This report seeks Council authorization for the Director of Legal Services to sign an easement and companion development agreement to allow Canadian Pacific Properties Inc. (CPPI), the successor to Marathon Realty Company Ltd. to develop and operate 104 commercial parking stalls for the marina in the Marina Neighbourhood on the site which the City will be purchasing and leasing to the Coal Harbour Housing Cooperative.

BACKGROUND

The CD zoning for the Marina Neighbourhood allows CPPI to develop a marina at the north foot of Nicola. The parking for the marina can be located on any of CPPI’s development sites in the neighbourhood. The CD-1 also requires that non-market housing be developed on CPPI’s site on the north side of Hastings between Cardero and Nicola. Appendix A shows the locations of the marina and the cooperative.

CPPI wants to develop commercial parking to serve all the commercial components in the Marina Neighbourhood, including the marina, in three of its development sites, one of which is the Coal Harbour Housing Cooperative site.

PARKING EASEMENT ON LOT A

The original expectation was that two air-space parcels would be created out of the site, now Lot A, allocated for non-market housing in the Marina Neighbourhood. One would contain the non-market housing (40 family and 80 non-family units) and the other the commercial space, which would include a small retail component as well as the marina parking.

In November 1995, B.C. Housing allocated 99 units of family non-profit housing to the Coal Harbour Housing Cooperative proposed for the Marina Neighbourhood non-market housing site. At the January 18, 1996, Public Hearing, Council approved the conversion of the retail component to residential space and the conversion of the non-family non-market component to family non-market housing to accommodate the proposal. As part of these negotiations, CPPI agreed that the marina parking would be provided by way of easement for a term of 60 years rather than by way of air-space parcel.

The benefit of the parking easement to the City is that, at the end of the 60 year lease to the Cooperative, the City will end up owning both the housing and the marina parking, and will have clear title to Lot A, instead of having to share ownership with the marina owner.

PROJECT STATUS

The development permit for the Coal Harbour Housing Cooperative has been issued, and the contractor is currently excavating the site as part of site remediation. The legal documents are ready for execution and Project Commitment is expected from B.C. Housing by the end of the month. At that time the City will purchase the site and lease it to the Coal Harbour Housing Cooperative so construction can proceed. Completion of the project is expected in the Spring of 1998.

Currently CPPI owns both the marina and the social housing site and will grant the easement to itself. However, the City’s option to purchase the social housing site does not contemplate the City accepting property with the easement and so the City’s specific approval on this matter is required. CPPI, B.C. Housing, the Cooperative and the City also will be entering into a development agreement that addresses the respective obligations related to the construction of the project. The City’s role is limited to preparing the lease and then leasing the property to the Cooperative with the parking easement in place.

A Development Permit Application has been submitted for a 238 berth marina at the north foot of Nicola, which will also include some retail and commercial uses. A total of 163 parking spaces will be required.

Council authority is required before the Director of Legal Services can execute any legal documentation on the City’s behalf. Council, through the rezoning of the Marina Neighbourhood, gave authority for the lease of the site to the Cooperative to be executed, but, as it was not contemplated at the time, did not give authority for the execution of the easement for the marina parking. The parking easement and development agreement have to be executed before the site can be leased to the Cooperative. Consequently, it is recommended that Council authorize the Director of Legal Services to sign the easement and development agreement for the commercial parking on Lot A on the City’s behalf.

The 60 year term of the easement will commence on substantial completion of the Co-operative and will be for a nominal rent. CPPI will pay all costs of constructing, operating, and maintaining the commercial parking, which will consist of 104 stalls.

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(c) 1998 City of Vancouver