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.


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                               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.

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