DEVELOPMENT AND BUILDING

                                           Date: March 4, 1997 
                                           Dept. File No.TWP
                                           C.C. File No. 5001-1

   TO:       Vancouver City Council

   FROM:     Director of Land Use and Development

   SUBJECT:  Vancouver Hospital: Heather Pavilion -
             Extension of Deadline for Re-Use Proposals


        THAT the Heather Heritage Society and the Vancouver Hospital and
        Health Sciences Centre (VHHSC) be advised that Council would
        consider re-use proposals for the Heather Pavilion (1906 portion),
        including a rezoning if necessary, for up to one year after VHHSC
        vacates that building; and

        FURTHER, that VHHSC be requested to notify the City and the Heather
        Heritage Society at least six months in advance of the intended
        date to vacate the 1906 Heather Pavilion.


        The General Manager of Community Services RECOMMENDS approval of
        the foregoing.


   In the context of earlier Council resolutions providing for demolition
   of older buildings to create a 2.2 ha (5.5 ac.) open space on the VHHSC
   site to offset development of new facilities, Vancouver City Council, on
   October 21, 1993, approved the following recommendation:

   "F.  (1)  THAT any groups interested in retention of the Heather
             Pavilion be advised that Council would consider re-use
             proposals requiring no VGH financial involvement but such
             proposals must be conclusively dealt with, including rezoning,
             by June 30, 1997; and
        (2)  THAT the Director of Planning and the Director of Housing and
             Properties be instructed to report back on the process and
             costs of confirming the feasibility of implementing the
             recommendations of the Henriquez  Study for the Heather
             Pavilion, including the coordination of community and heritage
             group concerns, and identifying development partners."


   This report responds to a written request from the Heather Heritage
   Society (attached as Appendix A), to extend the June 30, 1997 deadline
   adopted by Council for re-use proposals to be considered for the 1906
   part of the Heather Pavilion on the VHHSC site.  Staff conclude that it
   would be appropriate to extend this time-frame to give the Society, or
   others interested in retention, a realistic time-frame for finding
   re-use options.


   This section outlines Council's approach to managing redevelopment of
   the hospital precinct and explains past decisions which are directly
   relevant to the question of changing the June 30, 1997 deadline.

   Framework:  To accommodate staged development of new facilities and
   relocation of services from old to new buildings on the VHHSC site,
   Council has authorized temporary increases in site coverage and density. 
   The maximum permitted site coverage of 50% and the maximum density of
   2.23 FSR are to be restored through a two-stage demolition process to
   follow occupancy permits for new buildings.  A legal agreement with the
   City commits VHHSC to demolishing the older facilities, including the
   1906 Heather Pavilion, to create a 2.1 ha (5.1 ac.) public open space
   (see Appendix B), based on a 1989 Open Space Plan.  This plan and legal
   agreement could be amended if a new use was found for the 1906 Heather

   Timing Provisions:  The first phase of demolition is to be completed
   within 24 months of permits being issued for 70% occupancy of the new
   tower (LSP-2A).  A second demolition phase would follow occupancy of an
   Ambulatory Care Centre (LSP-2B), proposed for the corner of West 12th
   Avenue and Oak Street.  Council has agreed that demolition could be
   condensed to one phase if both new buildings are occupied at the same
   time.  The Heather Pavilion would be demolished in the first phase,
   unless the plan is amended to provide for retention of the 1906
   component.  (Depending on the nature of any proposal supported by
   Council, the legal agreement might also need to be amended.)  VHHSC has
   an obligation to demolish.  However, Council established a time-frame in
   which re-use proposals could be considered by Council, without
   preventing the hospital from fulfilling its obligations if no viable
   re-use proposal is found.

   Henriquez' Study:  Council had commissioned a study by Richard
   Henriquez, Architect, in 1992 which examined structural questions and
   use potentials of retaining the Heather Pavilion.  This study concluded
   that the original U-shaped stone structure built in 1906, initially
   known as the Fairview Building, could and should be retained and
   restored for either residential or mixed commercial uses.  All additions
   would be demolished.  This study was referred to the Heritage Advisory
   Commission, which supported its recommendations.  Opposition was
   expressed by the Save Our Parkland Society arguing that future parkland
   should be maximized on this site.  Fairview Slopes Residents 
   Association also stated concern over the need for open space in the
   area.  Park Board staff ranked the retention option below the original
   plan but ahead of a split-site open space which would incorporate land
   south of West 12th Avenue.

   The Deadline:  The resolutions cited above were approved as part of a
   series of resolutions responding to issues arising from a VHHSC report
   titled "VGH Conceptual Development Plan 1992-2002".  That report
   proposed an increase in open space from 2.1 to 2.2 ha (5.1 to 5.5 ac.),
   which would offset the site area occupied by the 1906 Heather Pavilion.
   It also projected completion dates for occupancy of LSP-2A and LSP-2B
   which would allow demolition of older facilities, including the Heather
   Pavilion, by December 31, 1998, to permit development of the public open
   space.  Resolution of future use and retention questions for the 1906
   Heather Pavilion was tied to that time-frame.

   As a result of funding constraints, the completion of both LSP-2A and
   LSP-2B has been delayed and remains uncertain (see Appendix C). 
   Therefore, the reason for the June 1997 deadline to deal with retention
   and re-use questions for the 1906 Heather Pavilion is no longer valid. 
   Due to the extended time-frame of development on this site, Planning and
   Facilities Development staff have not pursued Council s resolution F.(2)
   of October 21, 1993.


   The Heather Heritage Society remains confident that re-use proposals
   will be forthcoming.  Significant interest in the building has been
   expressed by the Institute for Complementary and Alternative Medicine. 
   However, as long as the time-frame for vacating the Heather Pavilion
   remains uncertain, it is not possible to get commitments from any
   potential developer or occupant.  Therefore, the Society requests that
   the deadline be eliminated or stated as a time-frame that is linked to
   the date when VHHSC actually vacates the building.

   It is not now possible to be certain of completion dates for the towers. 
   Therefore, to avoid repeated future revisions of that date, staff
   believe a date should be specified in terms of months after the building
   is actually vacant and available.  Staff do not wish to create a
   situation where the building is left vacant indefinitely.  Therefore, a
   one year period following vacating of the building is considered to
   represent a viable time-frame.  (See Appendix D: Letter from Vancouver


   To provide a realistic opportunity for the Heather Heritage Society to
   present re-use options for the 1906 Heather Pavilion without unduly
   hindering VHHSC in their obligation to provide public open space, staff
   recommend that a one year grace period be established from the time the
   1906 structure is vacated by VHHSC.  It is also recommended that Council
   request that VHHSC notify the City and the Heather Heritage Society at
   least six months in advance of the intent to vacate the 1906 portion of
   the Heather Pavilion.

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