SUPPORTS ITEM 3 P&E COMMITTEE AGENDA APRIL 10, 1997 ADMINISTRATIVE REPORT Date: April 4, 1997 Dept. File: 03.26.97 C.C. File No.: 5304-1 TO: Standing Committee on Planning and Environment FROM: Director of the Office of Cultural Affairs in consultation with the Directors of Finance and Central Area Planning, and the Manager of Real Estate SUBJECT: DANCE FOUNDATION (VANCOUVER DANCE CENTRE) - Site Clarification RECOMMENDATION A. THAT Council withhold a City-owned site, Lots 1, 2, and 3 Block 123, DL 541, at the corner of Pacific and Granville Streets from disposal or alternate use for a period of up to two years, and subject to the Dance Foundation (Vancouver Dance Centre) fulfilling the conditions outlined in the report approved by Council on March 28, 1996 to the satisfaction of the City Manager, and that Council approve in principle a lease of the subject site to the Dance Foundation and recommend to the Council of the day that this lease be provided for a term of 60 years at a nominal rate ($1). - or - CONSIDERATION B. THAT Council withhold a City-owned site, Lots 1, 2 , 3 and Lot 4, Block 123, DL 541, at the corner of Pacific and Granville Streets from disposal or alternate use for a period of up to two years, and subject to the Dance Foundation (Vancouver Dance Centre) fulfilling the conditions outlined in the report approved by Council on March 28, 1996 to the satisfaction of the City Manager, and that Council approve in principle a lease of the subject site to the Dance Foundation and recommend to the Council of the day that this lease be provided for a term of 60 years at a nominal rate ($1). CITY MANAGER S COMMENTS The City Manager RECOMMENDS A, but provides B for Council s CONSIDERATION. COUNCIL POLICY In December 1991 Council directed staff to assist the Dance Centre to identify appropriate City properties as potential sites for the Dance Centre facility. PURPOSE The purpose of this report is to report back as requested by Council to clarify the boundaries of the proposed site for a dance centre facility to be built by the Dance Foundation. BACKGROUND In the mid 1980's Vancouver s dance community organized itself around the need for suitable rehearsal and production facilities. A feasibility study and building programme analysis, undertaken with support from the City of Vancouver, identified the need for a 37,100 sq.ft. shared-use facility. In 1991 Council directed staff to work with Vancouver's professional dance community to identify a suitable site for development as a dance centre facility. In 1993, staff and representatives of the Dance Centre reviewed an extensive range of options including City-owned sites and potential amenity bonus opportunities. The Dance Centre identified a 10,000 sq.ft. site at the corner of Nelson and Mainland as their preferred site and made a request to the City for a five-year option during which time they proposed to secure the funds necessary for their project. The site, however was, and still is owned by a third party, Larco Investment Holdings Ltd. and the City s ability to make it available to the Dance Centre was subject to a land swap. On November 30, 1993, Council directed that, following the completion of the land swap, the subject site be withheld from disposal or alternate use for a period of five years during which time the Vancouver Dance Centre was to meet a number of conditions including the completion of a capital and endowment campaign to raise the funds necessary to build and operate the facility. Notwithstanding repeated attempts over the next 18 months by the City, Larco was unwilling to conclude the agreement and the site therefore could not be made available for the Dance Centre. Having secured $3.6 million in funds from the Canada/British Columbia Infrastructure Program in 1995, the Dance Centre requested the City to consider alternate sites so that they could proceed with their project within the Infrastructure time frame. Staff, working with Dance Centre representatives reviewed a series of potential sites and the Dance Centre identified the City-owned site at the corner of Granville Street and Pacific Blvd. as the best available option for their future dance centre. In March of 1996, Council directed that a site at the corner of Granville Street and Pacific Blvd. be withheld from disposal or alternate use for a period of five years during which time the Dance Centre is to meet the same conditions prior to entering into a lease with the City. While the Dance Centre, now formally represented by the Dance Foundation has not yet met these conditions, staff have been advised that they have achieved considerable success with their capital campaign having raised $2.5 million towards the $4.3 million private sector fund raising goal. Once they confirm that they have raised the balance of the funds necessary to construct and operate the facility without debt, and satisfy the other conditions set out at the time of Council s decision, staffwill report back to Council with terms of a lease. DISCUSSION In withholding the site for a period of five years, the City provided the Dance Foundation with the opportunity to meet the challenges of designing, funding, constructing and operating a dance centre. All four lots were withheld to allow maximum flexibility for the Dance Centre to fulfill their building program requirements. A site map is attached to this report as Appendix A . The Dance Foundation has completed a design for a dance centre facility and submitted a rezoning application. The proposed design accommodates the full building program of 33,446 sq.ft. within Lot 2 of the subject site, with parking and access on the adjacent Lots 1 and 3. The Dance Foundation has requested the City make available Lots 1, 2 , 3 and 4 with Lot 4 to be used in the short-term as open space and in the future for unspecified future expansion. The Dance Foundation s letter requesting Lot 4 is attached to this report as Appendix B . Staff have reviewed the building program, design and adjacent uses and recommended a lease of the area necessary to accommodate the building program and parking - Lots 1, 2 and 3 only. Staff do not support a lease of Lot 4 on the basis of need, cost and adjacent uses. Need: The search for a suitable site for the dance centre has been based on a building program set by the applicant. The original (Larco) site request was for a 10,000 sq.ft. site to accommodate a 37,000 sq.ft. program. Their current rezoning application provides for the full building program of 34,446 sq.ft. accommodated on Lot 2, a 22,500 sq.ft. site. To date, the Dance Foundation has not submitted any proposal, plan or program requirements to support a future expansion and staff have therefore had nothing on which to evaluate the need or viability of such a proposal. Had such a request for future consideration been made, it would have been evaluated in the context of unmet current needs within the social service and cultural community. Cost: While it is desirable to provide for the future, the cost of securing that possibility must be paid for now. When Council approved the site request in March of 1996, it also directed staff to reserve $900,000 from the social service and cultural capital budget of the 1994-1996 Capital Plan to pay the Property Endowment Fund for the site. At the time of that decision, the Director of Community Service noted that the funds being made available for the Dance Centre in the 1994-1996 Capital Plan had originally been allocated to several social service facilities including child care facilities and the redevelopment of a neighbourhood house. The projects are still in development and staff anticipate funding requests. The Manager of Real Estate has determined the market value of Lot 4, the site proposed for future use, is $258,000 based on a 60-year pre-paid lease. Given the cost to the City in providing Lot 4 as future expansion space, staff believe that it is appropriate to review this additional request from the Dance Foundation for future needs in the context of the current budget and against the outstanding needs of other social service and cultural funding requests. Adjacent Development: In the staff report considered by Council in March of 1996 detailing the site issues, the Planning Department identified key issues which the Dance Foundation would need to address for this site including a need to reconcile with development proposals to the east and south. While subject to a future rezoning, the adjacent development concept plans locate non-market residential on and immediately adjacent to Lot 4 and staff believe that public open space on Lot 4 is incompatible with this proposed residential plan. The Dance Foundation have not submitted designs for the proposed future expansion and staff are unable to determine if the scope and nature of the proposed future expansion would be appropriate or viable in the context of the Beach Neighbourhood Area Plan. CONCLUSION Staff commend the Dance Foundation in meeting the design challenges of this site, but in the context of competing current needs and very limited resources, staff are unable to recommend the inclusion of Lot 4 for future expansion potential without any demonstrated need, source of funds or resolution of adjacent site issues. * * * * *