POLICY REPORT 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 RECOMMENDATION 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. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY 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." PURPOSE AND SUMMARY 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. BACKGROUND 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 Pavilion. 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. DISCUSSION 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 Hospital). CONCLUSION 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. * * * * *