CITY OF VANCOUVER REGULAR COUNCIL MEETING MINUTES STANDING COMMITTEE ON PLANNING AND ENVIRONMENT FEBRUARY 27, 1997 A Regular Meeting of the Council of the City of Vancouver was held on Thursday, February 27, 1997, at approximately 5:08 p.m. in the Council Chamber, Third Floor, City Hall, following the Standing Committee on Planning and Environment meeting, to consider the recommendations of the Committee. PRESENT: Mayor Philip Owen Councillor Don Bellamy Councillor Nancy A. Chiavario Councillor Jennifer Clarke Councillor Alan Herbert Councillor Gordon Price Councillor George Puil Councillor Sam Sullivan ABSENT: Councillor Lynne Kennedy (Due to Conflict of Interest) Councillor Daniel Lee (Sick Leave) Councillor Don Lee (Sick Leave) CITY MANAGER'S OFFICE: Judy Rogers, Deputy City Manager CLERK TO THE COUNCIL: Nancy Largent COMMITTEE OF THE WHOLE MOVED by Cllr. Bellamy, SECONDED by Cllr. Clarke, THAT this Council resolve itself into Committee of the Whole, Mayor Owen in the Chair. - CARRIED UNANIMOUSLY COMMITTEE REPORTS Report of the Standing Committee on Planning and Environment February 27, 1997 Council considered the recommendations of the Committee as contained in the following clause of the attached report: Cl. 1: Warning to Prospective Purchasers of Individual Strata Lots at 1238 Seymour Street Warning to Prospective Purchasers of Individual Strata Lots at 1238 Seymour Street (Clause 1) MOVED by Cllr. Clarke, THAT the recommendations of the Committee, as contained in Clause 1 of the report, be approved. - CARRIED UNANIMOUSLY RISE FROM COMMITTEE OF THE WHOLE MOVED by Cllr. Clarke, THAT the Committee of the Whole rise and report. - CARRIED UNANIMOUSLY ADOPT REPORT OF COMMITTEE OF THE WHOLE MOVED by Cllr. Clarke, SECONDED by Cllr. Bellamy, THAT the report of the Committee of the Whole be adopted. - CARRIED UNANIMOUSLY The Council adjourned at 5:10 p.m. * * * * * REPORT TO COUNCIL STANDING COMMITTEE OF COUNCIL ON PLANNING AND ENVIRONMENT FEBRUARY 27, 1997 A Regular Meeting of the Standing Committee on Planning and Environment was held on Thursday, February 27, 1997 at 2:00 p.m. in Committee Room No. 1, Third Floor, City Hall. PRESENT: Mayor Philip Owen Councillor Don Bellamy Councillor Nancy A. Chiavario Councillor Jennifer Clarke Councillor Alan Herbert Councillor Gordon Price Councillor George Puil Councillor Sam Sullivan ABSENT: Councillor Lynne Kennedy (Due to Conflict of Interest) Councillor Daniel Lee (Sick Leave) Councillor Don Lee (Sick Leave) CITY MANAGER'S OFFICE: Judy Rogers, Deputy City Manager CLERK TO THE COMMITTEE: Nancy Largent RECOMMENDATION 1. Warning to Prospective Purchasers of Individual Strata Lots at 1238 Seymour Street The Committee had before it an Administrative Report dated February 12, 1997, in which the City Building Inspector recommended 336D Notices be filed against the Certificate of Title of various individual strata lots at 1238 Seymour Street, in order to warn prospective purchasers that there are contraventions of the Zoning and Development and Vancouver Building By-laws related to these strata lots. The General Manager of Community Services recommended approval. Peter Sweeney, Supervisor, Building Inspections, reviewed Council's authority under Section 336D of the Vancouver Charter to file notices against the titles of property. These notices are intended to warn purchasers that by-laws have been contravened, such that a purchaser may suffer significant loss or expense if the by-law were enforced. Mr. Sweeney reviewed the history of the building, and described work carried out without permit or approval. Issues include: combustible construction of mezzanine additions and concerns over their structural integrity; inadequate sprinkler coverage or covered sprinkler heads; replacement of existing stairs by spiral stars which do not meet Building By-law requirements; uncertainty as to safety of electrical work done without permit and covered without inspection; breaches in fire separation; additions to mezzanines and removal of balcony doors which have increased floor space beyond the maximum allowed. The infractions threaten the life safety of occupants of the building, and could financially impact upon prospective purchasers. Therefore, staff are recommending 336D Notices be placed against the titles while staff proceed with enforcement. The following speakers opposed the recommendation. All speakers were suite owners or represented suite owners at 1238 Seymour: Amalia Liapis Chris Kientz Mervyn Vidler Allan Altenburg Marc Ramsay Peter Ryznar George Costa Daniel Koppersmith Jocelyne Peden Eduardo Shinyei Rob Utendale Stuart Child Sarah Lloyd Elizabeth Fricke Jackson McKiee Scott Lewis Angus Ingram Martin Aldaba Aaron Hughes Robert Smith Barry Wilkinson The foregoing opposed the recommendation for one or more of the following reasons; if 336D Notices are filed against the suites, their value will fall below the level insured by the CMHC and lenders will foreclose on the mortgages; many speakers indicated they do not have the means to pay off their loans, and would be forced into bankruptcy; 336D Notices are an unnecessarily harsh measure, since prospective purchasers could be protected through a Real Estate Board Disclosure Statement instead, without such drastic effects on the owners' financial positions; few suites in the building are currently for sale, and in view of the heavy media exposure of this building, it is unlikely that any prospective buyer would be unaware there have been problems; not all suites have life safety contraventions, and it seems unfair that those with only zoning-related contraventions should suffer the same severe financial repercussions; purchasers were mislead by the building realtors, who marketed this building on the premise that owners could do whatever they liked with the space, without reference to permit requirements, and even offered sample books and other inducements to encourage purchasers to make creative use of the space; many of the purchasers were first-time home buyers, who were naively unaware of the need to obtain permits; some owners claimed the realtors had assured them that permits were not required, while others were told that since the building had its occupancy permit and would not be re-inspected, permits were not an issue; the building units upon occupancy were essentially shells (staircases, for example, were constructed so as to be easily removed), and the owners would never have bought them if they had realized they would be unable to make many of the necessary changes to make their suites livable; the units will not be livable if the owners are not permitted to retain the alterations they have made, and they will suffer financial hardship if required to make replacements; one owner argued his loft should be exempt because it is of modular, i.e. removable, construction; civic staff should work with the owners to find solutions to these problems rather than bring down punitive measures; the problem is a lack of floor space, and there are avenues which could be explored to resolve this problem such as the purchase of heritage density, with consultation between the owners and the City; some owners indicated willingness to bring their units into compliance, but requested time to do so before the City considers 336D Notices; some owners whose units are not in contravention of by-laws appeared to support their fellow owners, and noted that their property values may also be affected; the building has not been inspected above the 11th floor, and some speakers felt this indicated favouritism toward owners of those units; the City expected this building to be a problem, since it placed a restrictive covenant on the units warning of insufficient floor space for additions (subsequently removed after the purchase of heritage f.s.r.) and instructed staff to inspect the building annually, yet the owners rather than the developer are now being penalized; there are illegally renovated buildings all over the city (homes with basement suites, for example), so why should the City choose to make an example of this building only? Terry Bland, Corporation Counsel, responded to a variety of queries. Regarding the suggestion that property disclosure statements would serve the same purpose as 336D Notices, Mr. Bland advised that property disclosure statements are not statutory in nature, and may not come to the attention of purchasers buying a property directly from the owners or agent other than a real estate agent, whereas a title search would always bring a 336D Notice to the prospective purchaser's attention. Regardless of whether a 336D Notice is filed, the units must be brought into compliance with City by-laws. Banks would likely be more concerned about illegal construction than by 336D Notices. It would not be possible for the City to amend its by-laws insofar as just one building is concerned except that with regard to zoning issues, only, Council has the power to change the zoning of the building following Public Hearing. Mr. Bland also advised it would be Council's responsibility to deal with each 336D Notice separately since the circumstances of each unit vary, or at least to consider each class of deficiency separately. Liability issues were also discussed. Mr. Bland also asked several of the delegations about the content of any prospectus or other materials provided to them by the Realtors. Based on this, it appeared a formal prospectus may not have been provided, and Mr. Bland indicated he would follow up on this question. It also appeared that materials provided to the purchasers did state that it would be necessary to obtain building permits, but not that it would not be possible to obtain them for some types of renovations which would likely be contemplated. Asked whether any legal requirements could be brought to bear on real estate agents, Mr. Bland indicated this would fall under the jurisdiction of the Superintendent of Real Estate, who has the power to investigate this situation. Mr. Sweeney responded to questions regarding the procedures to be followed if Council approves the filing of 336D Notices, and to otherwise deal with the infractions against City By-laws. Mr. Sweeney indicated the owners would first be sent 30-day notices - or longer should Council so chose - to give them an opportunity to rectify infractions before notices are filed against their properties. The usual procedure is to file immediately; however, these are unusual circumstances. Discussions will continue with the owners about how best to resolve some of the issues. For example, it may be possible to resolve the density issue through purchase of heritage density or through rezoning. The City Building Inspector is most concerned about life safety issues, and the department will be enforcing those first. Combustible materials, for example, must be removed. In response to further questions, Mr. Sweeney clarified there may be two types of infractions involved. In some cases, alterations may be in violation because they were carried out without permit, but are nonetheless permittable if a permit were obtained and an inspection carried out. It is customary to withhold enforcement in such cases to provide an opportunity to obtain a permit and have the work inspected. However, there are also instances of alterations which can never be brought into compliance, such as flammable construction materials. Questioned regarding the possibility of similar infractions in similar buildings, Mr. Sweeney advised a survey of other residential buildings with extra-high ceilings is currently underway. If infractions are found, enforcement will commence. Mr. Bland confirmed it is at Council's discretion when to file notices, weighing the potential problems for prospective purchasers against the difficulties caused for owners. Ron Dyck, Building Inspector, described his findings during inspection of the building. Asked why he had not inspected the entire building, Mr. Dyck explained that above the 11th floor, ceiling height drops down and floor plates are larger. Some of these units were inspected on a random basis but no infractions were found. Based on these factors, and because inspection of every unit would be onerous, not all units above the 11th floor were inspected. Ted Droettboom, General Manager of Community Services, reviewed the history of the building, which was referred to Council for advice by the Development Permit Board at the development permit stage. The Board was concerned that zoning for the area had not anticipated 17 foot floor-to-ceiling heights, and asked Council whether this was acceptable. Council advised it was acceptable with some conditions regarding floor space. [The relevant extract from the January 13, 1994 Report to Council and relevant Policy Report dated December 29, 1993 are on file.] The covenant placed on the building was subsequently removed after the developer purchased sufficient heritage f.s.r. to construct lofts in the units, but anyone searching the title prior to August 9, 1996 would have been aware of it. Mr. Droettboom commented the City is now looking at a situation unlike any it has faced before. A building has been created which will continue to encourage its occupants to make alterations to it, with the potential for life-threatening construction to occur in a multi-family building. If alterations are made, they will not be visible from the street. At this point there is no decent mechanism for dealing with such situations, and one will have to be worked out. It is typically the expectation in large urban areas that one does not construct without a permit, but in this case a considerable number of owners claim to have been ignorant of this requirement. If people are ignorant of the law, the City may need to take steps to correct that. Mr. Droettboom indicated he had recently written to the owners of a similar building advising them of permit requirements and lack of residual f.s.r. in their building. The Committee expressed sympathy for the owners plight, and was willing to afford a reasonable period of time to bring the building to code before filing 336D Notices. However, the Committee was insistent that no life-threatening alterations will be forgiven; they must be brought to compliance or they must be removed. The following motions by Councillor Price were put and carried. Therefore, the Committee RECOMMENDED A. THAT the General Manager of Community Services meet with representatives of the residents of 1238 Seymour Street to report back on resolution of by-law infractions, floor space issues, and parking requirements. B. THAT the City Clerk be directed to file a 336D Notice against the Certificate of Title to the specific strata lots outlined in Appendix A of the Administrative Report dated February 12, 1997, in order to warn prospective purchasers that there is a contravention of the Zoning and Development and Vancouver Building By-laws related to these individual strata lots, at the end of 60 days if violations are still present on which enforcement is not being withheld. C. THAT Council instruct the Director of Legal Services to refer this matter to the appropriate licensing, regulatory and professional bodies for investigation where there is a possibility of a violation of any Acts, regulations or codes of ethics. - CARRIED UNANIMOUSLY The following motion by Councillor Herbert was put and carried. Therefore the Committee RECOMMENDED D. THAT Council request the Superintendent of Real Estate to require that a real estate salesperson must verbally draw to the attention of a possible purchaser any covenants which have been registered against a property offered for purchase. - CARRIED UNANIMOUSLY The following motion by Councillor Chiavario was put and carried. Therefore, the Committee RECOMMENDED E. THAT the entire building at 1238 Seymour Street be inspected. - CARRIED UNANIMOUSLY The meeting adjourned at 5:08 p.m. * * *