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. 

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