ADMINISTRATIVE REPORT


                                                        Date: March 6, 1997
                                                        Dept. File No. 4205
                                                        CC File No. 4205   

   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services

   SUBJECT:  Modification to the Vancouver Indy Race Circuit



   RECOMMENDATION

        A.   THAT Council approve a modification to the Vancouver Indy race
             circuit to include Quebec Street, First Avenue and the
             necessary City lands on the south shore of False Creek as
             generally shown in Figure 3; with details to be approved by
             staff under the FEST Committee review process.

        B.   THAT Council direct staff to modify the Agreement with Grand
             Prix Management Inc.("owners" of the Vancouver Indy race) to
             facilitate the modified track as described in this report all
             to the satisfaction of the Director of Legal Services and City
             Manager.


   COUNCIL POLICY

   The Council policy when dealing with special events requires that the
   FEST Committee obtain Council approval for the anticipated Special
   Events for the coming year.  However, for major events such as the
   Symphony of Fire and the Vancouver Indy, Council recognizes the
   financial, and other commitments the event organizers are required to
   make, and so have approved these events for longer periods than one
   year.







                                     - 2 -


   PURPOSE

   This report recommends approval of modifications to the Vancouver Indy
   race circuit and the use of some City lands for the event.


   BACKGROUND

   The Vancouver Indy Race occurs on the September Labour Day weekend and
   has been located on the north side of False Creek since 1990.  During
   this time, only minor track modifications have been necessary.

   The Vancouver Indy race generates about $18.6 million in economic
   spinoff in the lower mainland, based on a 1994 survey. The Vancouver
   race ranks 4th out of 17 races in attendance behind Long Beach, the
   Michigan 500, which replaces the Indianapolis 500 and Rio de Janeiro.

   The redevelopment plans for Concord Pacific will result in the eventual
   loss of all the grandstands at the  hairpin  turn at the west end of the
   race circuit.  The existing circuit and road closures are shown in
   Figure 1.  

   This report discusses a proposed modification to the existing race
   circuit to facilitate the race staying in the False Creek area.  The
   modification involves the use of Quebec Street, First Avenue and a
   portion of the City and BC Transit lands on the south shore of False
   Creek.

   Council has previously approved an Indy car race circuit on the north
   shore of False Creek up to and including the year 2001.  This term and
   other conditions under which the race can operate on City streets is
   covered by an Agreement between the City of Vancouver and Grand Prix
   Management Inc.  This agreement also requires the Indy organizer to
   provide written consent from major, adjacent property owners, where
   access is cut-off, including Concord Pacific, Canadian Metropolitan
   Properties, and B.C. Pavilion Corp.  Further, the race organizer must
   also provide written consent of the Ministry of Environment confirming
   the race will not interfere with any soil remediation work to be carried
   out to those lands affected by the race.  



                                    - 3  -


   An extension of the time period and/or a requirement to use City streets
   not previously approved, requires the approval of Council.

   The 1997 race will operate on the existing race circuit shown in Figure
   1.  The 1998 race may also operate on this existing race circuit. 
   However, this depends on whether a sufficient number of  grandstands at
   the  hairpin  can be reconfigured around the anticipated Concord Pacific
   construction.  If this 
   is not possible or if the planned demolition of the Canron building on
   the south shore of False Creek is not completed in time, then an
    interim  race circuit (Figure 2) may be necessary for 1998.  Subsequent
   races, 1999 and later, would use the  modified  course also shown in
   Figure 3. It would benefit the Indy race organizers to change the race
   circuit for the 1998 race to help amortize their capital costs.


   DISCUSSION

   Use of City Lands

   Any change to the existing race circuit requires the use of the City
   lands on the south shore of False Creek including the Canron site. The
   modified circuit shown in Figure 3 also includes the Canron building
   which is scheduled for demolition in the next year.

   The planning process, including rezoning, of the South shore of False
   Creek will take place over the next couple of years. By the end of this
   process, the City will know the form of development acceptable to the
   public and whether market and other conditions are suitable to proceed
   to the development stage. The present anticipated earliest start of
   construction will not be before 2000 and possibly as late as 2002.  

   Staff recommend the Vancouver Indy be allowed to use the City land up to
   and including the 2001 race as this fits the City s development
   timetable. 

   Molson Indy has requested permission to use the City land until 2003. 
   This is two years longer than what Council has previously approved. 
   Staff cannot reasonably predict at this time the City s development
   plans beyond 2001, and recommend this request be revisited at a later
   date, once plans are better developed.


                                    - 4  -


   There are presently a number of tenants on short term leases on the
   affected City property.  Some leases may have to be cancelled or revised
   to allow the Indy use of the City land.  Every effort will be made to
   work around and/or accommodate these existing tenants. It is recommended
   any cost associated in amending leases to accommodate the race be paid
   by the Indy organizers.


   Lands Owned by BC Transit

   BC Transit owns the property on the NW corner of Quebec and 1st Avenue. 
   Arrangements satisfactory to BC Transit for the use of their land have
   been worked out with Vancouver Indy.


   Ministry of Environment

   The Ministry of Environment has been involved in discussions on the
   proposed use of the City land by the Vancouver Indy.  
   The Ministry has already approved the event on the north side of False
   Creek on lands that have some contamination.  This approval is on the
   basis that only disturbance to the surface area is involved and no deep
   excavations are required.

   The work required on the south shore of False Creek would be the same as
   what was done on the north shore and includes filling low points,
   grading of the ground to level it, paving and generally "capping" the
   site to make it suitable for pedestrians and to create the necessary
   venue to hold the race.

   The Ministry of Environment does not anticipate a problem with the
   proposed use and work that has to be done, but may require a site
   assessment and management consistent with the proposed use.


   Science World

   Science World will become landlocked during the race weekend but will
   remain open and free to the expected 180,000 race spectators. 
   Acceptable arrangements have been worked out between Molson Indy and
   Science World and a letter of support has been received from Science
   World.



                                    - 5  -


   City Gate

   This residential project was developed after the first Indy race and
   will continue to be developed over the next few years.

   Molson Indy has met with the City Gate Strata Council representing 173
   residential units (two of the three towers) of the approximate  600
   units.  A further meeting is planned with the third tower and the
   results of that meeting will be verbally reported to Council. 

   The Strata Council had three concerns; noise, access and security. 
   Access and security arrangements have been worked out.  However, the
   Strata Council has indicated that noise will remain an issue for some
   residents.

   The strata council has chosen to not take a position either way on this
   matter noting there are noise concerns but also noting for many
   residents, the race is a major event which they watch from their
   balconies.


   Other Businesses on Quebec Street

   The businesses between Terminal Avenue and First Avenue that back onto
   Quebec also front onto Main Street and so access, while somewhat
   disrupted, can be worked out.  The Vancouver Indy organizers are
   contacting these businesses now to work out satisfactory arrangements. 
   This is not anticipated to be a significant problem.


   Traffic Impacts

   Presently, during race weekend, the northbound lanes of the Cambie
   bridge are closed from the Friday morning to Sunday evening.  During
   race hours a bus shuttles pedestrians and cyclists across the bridge. 
   In the evenings, cyclists and pedestrians are allowed to use the west
   sidewalk.







                                    - 6  -


   The shift of the race circuit to the east will mean the Cambie Bridge
   will remain open and the various detours to transit and other vehicles
   and the inconveniences to pedestrians and cyclists crossing False Creek
   will no longer be necessary.  Transit will now be largely unaffected by
   the modified race circuit.

   Congestion on Broadway, Granville and Main Street at various times is
   largely from traffic relocated because of the closure of the Cambie
   Bridge.  As a result, congestion on Broadway and Granville  will be
   reduced to more normal levels. 

   The connection between the Off Broadway and the Seaside bike routes will
   be disrupted.  However,  detours will be worked out to maintain a
   temporary connection between the two routes.

   Overall, traffic impacts should be somewhat reduced with the proposed
   circuit modification.

   The site will continue to be well served by the ALRT with stops at Main
   Street and Stadium Stations.


   Noise

   The relocation of the existing race circuit about 800 metres east to
   Abbott Street and about 600 metres south to First Avenue and Quebec will
   mean lower noise levels for  the more directly impacted Yaletown
   residential units along Pacific Boulevard and along the south shore of
   False Creek west of the Cambie Bridge.  However, there will be an
   increase in noise levels south of First and Quebec.  

   The immediate area around First and Quebec is industrial development. 
   The residential area of Mt. Pleasant is further to the south of this
   industrial area but with the race 600 metres closer, there will be some
   increase in noise levels relative to the current race event.

   There are many details which will need to be addressed through the FEST
   Committee process.  These include such issues as access, duration of
   construction, modifications to permanent road or park works, location of
   grand stands and temporary strucutres, etc.


                                    - 7  -


   The recommendations give approval to Grand Prix Management Inc., subect
   to FEST Committee review of more detailed plans.

   In terms of regulation, the event has been exempted from a development
   permit in the past under section 5.3 of the Zoning and Development
   By-law.  This would continue, but the event will still require building
   permits for structures on site.  In addition, a public market license
   and a special event permit will be required from the Permits and
   Licenses Department.


   CONCLUSION

   In conclusion, the proposed modification to the Vancouver Indy race
   circuit can be physically accommodated.  Staff believe the details on
   issues surrounding the use of the City lands including lease and
   environmental matters can be resolved. Noise impacts on the existing
   residential community are greater in some areas, notably to City Gate,
   but less in Yaletown and on the south shore of False Creek.

   The economic benefits for the City in terms of direct and spin off
   benefits is over $18.6 million per year.

   Transit impacts, as well as pedestrian, bike and other vehicle traffic,
   will be significantly reduced, with the modified and interim tracks.



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