ADMINISTRATIVE REPORT

                                           Date: April 23, 1997
                                           Dept. File No.: 589 157
                                           CC File No.: 5653-1


   TO:  Vancouver City Council

   FROM:     General Manager of Engineering Services, in consultation with
             the Manager of Real Estate Services

   SUBJECT:  Woodwards Parkades - Structural and Seismic Upgrading and
             Commercial Development


   RECOMMENDATION

        A.   THAT Council authorize $150,000 of funds to retain a
             consultant to review and evaluate seismic and structural
             upgrading of the Woodwards parkades.The consultant shall
             prepare preliminary plans and estimates for the improvements
             and staff will report back for approval of the design and
             project budget.  Funds to be provided by the Parking Sites
             Reserve.

        B.   THAT Council authorize $50,000 of funds to retain a consultant
             to  prepare conceptual plans and estimates for retail and
             commercial development in the Woodwards parkades.  Staff will
             report back for approval of the design and project budget. 
             Funds for this work would be provided from the Parking Sites
             Reserve.


   COUNCIL POLICY

   The City reinvests off-street parking revenue, held in the parking site
   reserve, to develop parking resources where needed, particularly in the
   Central Area, and for the support of Heritage areas.

   On July 25, 1995, Council approved the In Camera report, recommending
   the purchase of the Woodwards Parkades - 125 West Cordova Street and
   130-160 Water Street.  Council also approved a recommendation to pursue
   structural and seismic upgrading work, then estimated to cost
   approximately $3,000,000 to $4,500,000.


   PURPOSE

   The purpose of this report is to retain consultants to determine the
   seismic and structural upgrading needs of the Woodwards Parkades, and to
   design a reconfiguration of the retail area and the Water Street facade.


   BACKGROUND

   The Woodwards parkades consist of two interconnected parkades which
   front onto Water Street and Cordova Street respectively.  The Cordova
   Street parkade was built in 1957 with 800 parking spaces, and the Water
   Street parkade was built in 1971 with 550 parking spaces.  There are
   also a number of ground level commercial retail units on Water Street,
   which form part of the Water Street parkade.  The two Woodwards parkades
   require major structural and seismic upgrades to extend the lifespan of
   the deteriorating structures. The parkades, which provide the majority
   of the parking for Gastown, were acquired by the City to maintain the
   parking supply  which supports the economic well-being of Gastown.  In
   addition, the parkades are presently viable parking operations with
   future growth potential.


   DISCUSSION

   The parkades were purchased on an "as-is" basis with the recognition
   that structural repairs and seismic upgrading were required.  In
   addition, other improvements are required to make the  parkades more
   attractive and functional.  In the Council report for the Woodwards
   purchase, very preliminary estimates indicated that the cost of
   upgrading could range from $3.0 million to $4.5 million.  This cost was
   factored into the purchase price and was considered as part of the
   overall acquisition costs of these properties.  In undertaking these
   substantial upgrading works, it is appropriate to investigate the
   potential of developing additional uses for these sites, including
   retail and commercial uses which could provide some offsetting revenues. 
   This report recommends that a consultant be hired to evaluate the
   upgrading needs of the parkade, and to evaluate the development
   potential of the parkade sites.  The consultant would review the
   following areas of improvement in consultation with Engineering Services
   and Real Estate:

        1.   Seismic and Structural Upgrading
        2.   Retail and Commercial Development


   1.  Seismic and Structural Upgrading

   The consultant will evaluate the seismic and structural upgrading for
   the parkades, and develop preliminary plans and estimates for repairs
   and improvements.  

   Seismic Upgrading

   The Woodwards parkades have been identified as seismically deficient. 
   The parkades were designed to meet building codes at the time of
   construction, but do not meet current earthquake standards.  Parkades
   can be particularly vulnerable under earthquake loading because of their
   open design.  It is recommended that both parkades be seismically
   upgraded, which may include the installation of shear walls at all
   levels, and strengthening of the end walls.  The consultant will review
   options for implementing these shear walls in conjunction with any
   commercial development, and possibly integrating them with any street
   facade renovations.  The areas of seismic weakness are to be identified
   by the consultant and recommendations for retrofitting and strengthening
   are to be made.

   Structural Lifespan Improvements:

   The two parkades are reinforced concrete structures which are prone to
   deterioration when exposed to water and, especially, when exposed to
   salt.  These salts penetrate the concrete and eventually reach and
   corrode the reinforcing steel, causing the concrete to separate or
   "delaminate".  As the top surface of the concrete begins to spall, the
   reinforcing steel is directly exposed to the salt water which
   accelerates the corrosion process.  If this process is left unchecked,
   the structure's load carrying capacity can be reduced to such a level
   that the parkade is no longer safe to occupy.

   New building code provisions recognize this problem and require
   waterproof membranes for new parkades and the City's most recent
   parkades, Yaletown, and the two Bentall joint venture parking facilities
   have membranes.  A membrane was also recently installed in the Pacific
   Centre parkade.

   Both parkades require structural upgrading.  Large portions of the
   concrete surfaces are delaminating and repairs to the concrete and the
   installation of a waterproof membrane is required to extend the
   parkades' lifespan.  The guard rail supports at the edges of the Cordova
   parkade are also in disrepair and require attention.  The consultant is
   to review all areas of structural deterioration in the parkades and
   advise mitigative measures to correct them.

   2.  Retail and Commercial Development

   There is potential for retail and commercial development in the Cordova
   and Water Street parkades.  The development of the parkades with the
   mixed uses of retail and office space would further contribute to the
   economic well-being of Gastown by increasing business and pedestrian
   activity on Cordova and Water Streets.  

   Retail and commercial development would also result in generating more
   parking revenues for the parkade, and allow for restructuring 
   pedestrian access to the parkades.  The access to the parkades is
   currently structured for the Woodwards building, and this development
   would allow the realignment of elevators and pedestrian access with a
   focus on Gastown.  The additional pedestrian activity would also
   increase the general level of security.

   The review would include:

   -    Reorganization of Water Street Retail: There are currently 14
        retail units totalling 11,000 sq. feet of retail space on the Water
        Street grade level.  Approximately half of these units are located
        in the interior mini mall along the eastern end of the parkade. The
        consultant would review restructuring and enlarging the units with
        a focus on Water Street.

   -    Water Street Commercial Development and Facade Improvements:
        The main structure of the Water Street parkade is set back
        approximately 16 feet from the property line.  There is an
        opportunity to develop commercial space in this area above the
        existing retail space.  This commercial space may be desirable with
        north-facing views and direct access to parking.  In addition,
        there is the opportunity to upgrade the facade of the Water Street
        frontage to restore some character to this stretch of Gastown. 

   -    Relocation of the Parkade Elevator:  There is a need to relocate
        the Water Street parkade elevators from the current location at the
        back of the mini-mall near the lane.  The current location is
        awkward, inconvenient, and often inaccessible due to the closures
        of the mini mall.  The relocation of the elevator to the Water
        Street frontage will significantly improve access to and from the
        parkade.

   -    Cordova Street Retail Development: It is desirable to give Cordova
        Street a significant increase in pedestrian presence and activity
        through ground-level commercial use.  The consultant will
        investigate the design opportunities for ground level commercial
        use for the Cordova Street parkade and develop preliminary plans.  

   The consultant would also develop conceptual design plans and estimates
   for these developments.  Initial proforma analysis conducted by Real
   Estate Services indicates that retail and commercial development is
   economically viable.  The designs, the economic analysis, and any
   recommendation to pursue these opportunities would then be reported back
   to Council.  At that time, the existing and proposed retail components
   of the parkade will be transferred into the PEF (General) and the PEF
   (General) will reimburse the Parking Sites Reserve for this commercial
   component.


   FINANCIAL IMPLICATIONS

   The consultants are to be retained to develop preliminary plans and 
   cost estimates for the upgrades and improvements to the Woodwards
   Parkade.  Funding for this work will be provided from the Parking Sites
   Reserve, as previously approved by Council.

   -    Funding of $150,000 is required for the preliminary design and
        estimates of the seismic and structural upgrades.  

   -    Funding of $50,000 is required for the review of the retail and
        commercial areas, existing and potential.  

   Preliminary rough estimates for the seismic and structural upgrading
   work ranged from $3,000,000 to $4,500,000. Upon completion of the
   preliminary plans and estimates, a project budget for the required work
   will be reported back to Council.

   The estimated cost for retail or commercial development, along with  the
   conceptual plans and the financing plan, will be reported back to
   Council.


   CONCLUSION

   The purchase of the Woodwards parkades was approved by Council in
   recognition that the City would have future costs associated with 
   upgrading work for the parkades after the purchase, in structural
   repairs and improvements.  This report is requesting funding to retain a
   consultant to prepare preliminary designs and estimates for the seismic
   and structural upgrading and for commercial and retail developments.

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