ADMINISTRATIVE REPORT Date: February 7, 1997 Dept. File No. GL C.C. File 5311-1 TO: Vancouver City Council FROM: Director of Land Use and Development SUBJECT: Strata Title Conversion - 267-271 East 23rd Avenue RECOMMENDATION THAT the application to convert the previously-occupied building at 267-271 East 23rd Avenue (Lot 15, Block 24, D.L. 301, Plan 5112) to strata title ownership be approved in principle, but that pursuant to Section 9(1) of the Condominium Act, the Certificate of Approval (Form 10) shall not be issued unless the following conditions have been met within one year of the date of this approval: (a) Completion of all work required by the City Building Inspector, under the necessary permits, at no cost to the City, in order that this previously-occupied building substantially complies with all relevant by-laws. (b) Execution of a Section 215 covenant, to be registered concurrently with the strata plan, prepared to the satisfaction of the Director of Legal Services, to serve notice on title regarding the uncertainty of site redevelopment. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY Council policy is reflected in the City s Strata Title and Cooperative Conversion Guidelines, which outline factors that Council will consider when reviewing applications for converting previously-occupied buildings to strata title or cooperative ownership. PURPOSE Council approval is required for an application to convert the previously-occupied building at 267-271 East 23rd Avenue (Lot 15, Block 24, D.L. 301, Plan 5112) to strata title ownership. BACKGROUND The site is zoned RS-2 and is developed with a two-storey plus basement, multiple conversion dwelling containing three residential units. The building, built circa 1913, is listed on the Vancouver Heritage Register as a category B heritage building. One of the units is owner-occupied, one is presently occupied by tenants and the remaining unit is vacant. The owner proposes to create three strata lots, each one comprising a residential unit. The existing tenants have offered their support in writing for this conversion application. The site location is shown below in Figure 1: Figure 1 DISCUSSION Section 9(2) of the Condominium Act states that Council shall not approve the conversion unless the building substantially complies with applicable City by-laws. In this case, multiple conversion dwellings are a conditionally approved use under the RS-2 District Schedule. If this site were to be redeveloped today, the site area of Lot 15 would only support a single-family dwelling, which could potentially be converted to a multiple conversion dwelling containing 2 dwelling units. Further, the existing building is non-conforming with respect to the floor space ratio and yard regulations of the District Schedule. Therefore, there is some uncertainty as to whether three dwelling units at the existing density could necessarily be redeveloped under the RS-2 District Schedule, should this building be extensively damaged or destroyed by fire, although the Board of Variance would have jurisdiction. In 1984, in considering a similar application to convert a 3-unit multiple conversion dwelling in the RS-2 Zoning District, Council opted to approve the conversion subject to a Section 215 Covenant being registered against the title of the property, advising prospective purchasers of the redevelopment uncertainty. Specifically, these individuals may be unaware that should the building be either damaged or destroyed, there is no guarantee that the building could be rebuilt to create the previously approved number of dwelling units. It is doubtful that the market is cognizant of the uncertainty of redevelopment in these situations. There is no indication of unit prices reflecting this uncertainty. Section 9(3) of the Condominium Act states that Council shall consider, in making a decision to convert a building under Section 9 of the Act, any other matters that, in its opinion, are relevant. In the case of the conversion of a heritage building, the extension to the life expectancy of the building, associated with the substantial upgrading requirements, is clearly consistent with established Council policy aimed at preserving existing heritage stock. STAFF ANALYSIS In addition to Planning Department staff, the City Engineer and the City Building Inspector have reviewed this application. As there are only three residential dwelling units on this site, the Manager of the Housing Centre has not been asked to comment. The City Engineer has no dedication or servicing requirements for this site. The City Building Inspector reports that building, electrical and plumbing upgrading, including installation of a sprinkler system, must be completed in order for this building to substantially comply with all relevant by-laws. A building permit and related trades permits will be required for the above work. The scope of the work will also address several alterations to the building which have been completed without permits. CONCLUSION Based on the foregoing, and on the applicant s compliance with the City s Strata Title and Cooperative Conversion Guidelines, the Director of Land Use and Development supports this application. * * * * *