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. * * * * *