ADMINISTRATIVE REPORT

                                           Date: May 26, 1997
                                           Dept. File No. A004
                                           C.C. File No.: 4651-1/4113-1

   TO:       Vancouver City Council

   FROM:     Manager of Real Estate Services in consultation with the
             Director of Social Planning, Director of Central Area Planning
             and the Manager of the Housing Centre

   SUBJECT:  Proposed Dr. Peter Centre - site reservation


   RECOMMENDATION

        That Council reserve for one year all of Lot 1, Block 23, D.L. 185
        and the rear 13.85 metres of the west and east half of Lot 2 Block
        23, D.L. 185 as shown on Appendix A for the Dr. Peter Centre
        Project, recognizing this is a maximum area and the Centre may only
        require Lot 1 once funding, programming, and massing have been
        finalized.

   GENERAL MANAGER'S  COMMENTS

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

   COUNCIL POLICY

   Vancouver Council Resolutions on Nelson Park - April 2, 1996.

   -    That the block between Comox and Pendrell Streets, from Bute to
        Thurlow Streets, be named  Mole Hill .

   -    That the Mole Hill lands be recognized as a City resource and that
        the land not be sold in whole or part.  Further that leasehold
        arrangements can be considered.

   -    That all existing residents will be accommodated on site as
        renovation takes place.

   -    That the City s existing policy of mixed communities will be
        maintained. Further that priority be given to housing for 
        low-end-low market rental.

   -    That the City-owned heritage-listed buildings ( A ,  B  and  C ) be
        retained.  Further that the City s existing heritage policies will
        apply.  And further that, in the event that buildings are moved or
        infill occurs, the existing scale and streetscape of Mole Hill
        should be respected.

   -    That revenues for renovation of the housing will be generated from
        the site.  Further that transfer of density policy may be used to
        achieve value from the unused development potential of the site.

   -    That the policies of CityPlan will be used as the basis for
        demonstration options, including innovative infill, new forms of
        housing, community gardens, Greenways, etc.  Further that land
        and/or street closures may be considered.

   -    That other options for use of the buildings and land will be
        considered, such as day care, hospices, parks, and other facilities
        that meet City needs.

   -    That staff will be asked to develop options for a labour training
        program as the site is renovated

   -    That staff report back on a public planning process.

   The City no longer provides funding or grants to  health-related  
   organizations.

   PURPOSE

   The purpose of this report is to reserve for one year a site at the
   south west corner of Thurlow and Comox for The Dr. Peter Centre Project,
   an AIDS day centre and hospice. The reservation of the site will enable
   the Dr. Peter Foundation to apply for Federal/Provincial Infrastructure
   funds and launch a major fund raising campaign for the permanent home
   for the Centre.

   BACKGROUND

   The Dr. Peters AIDS Foundation was formed by the late Dr. Peter
   Jepson-Young before his death in 1992 to provide  comfort  care for
   people with AIDS. The Foundation is fulfilling his vision through the
   establishment of the Dr. Peter Centre, Canada s first AIDS day centre
   and hospice. The Centre s objective is to keep people healthy and living
   in the community and thereby reduce the need for expensive
   hospitalization. 

   At capacity, the day centre will have a client base of 90-100 people and
   is expected to serve 50 clients a day, seven days a week, 8:00a.m. to
   8:00 p.m.. The hospice/residential component is planned for 14 beds with
   an average length of stay of 45 days.

   PROPOSED BUILDING

   The building presently proposed would be a 2  storey building with one
   level of underground parking. There will be one floor partially below
   grade to accommodate support services, such as the kitchen and offices.
   The day centre on the main floor will be above the street at the same
   level as the heritage houses next door. The hospices beds will be on the
   top floor. The proposed building footprint will be approximately 7,500
   sq. ft., with the total building in the order of 24,000 sq. ft.  The Dr.
   Peter project will go through the development permit process which will
   allow for public input into the final design.

   The site at the corner of Comox and Thurlow will accommodate an L-shaped
   building with infill behind the first two houses on Comox Street. The
   main building facing Thurlow will be a similar size, scale, footprint
   and design to that which was originally on the site.

   At time of writing, Social Planning and Housing Centre staff have not
   had the opportunity of evaluating the building program or design
   proposed for the Centre.  For this reason, in spite of the Mole Hill
   Working Group s endorsement of the proposal generally, staff are not
   convinced that Lot 1 alone cannot accommodate the needs for the Centre. 
   This is critical since the L-shaped design of the current proposal
   detracts from the two heritage houses on the east and west half of Lot
   2.

   PRESENT SITUATION

   This proposal is being presented now rather than in conjunction with the
   forthcoming Mole Hill report for the following two reasons:

        1.   The Foundation is making application to the Federal/
             Provincial Infrastructure Program under the Community Projects
             component. The application will not be considered without a
             site commitment. The Foundation has been informed that
             decision-making on these grants will begin around the end of
             May.

        2.   The Dr. Peters AIDS Foundation is launching a multi-million
             dollar capital campaign for the permanent home for the Dr.
             Peter Centre and already has almost $500,000 in gifts and
             pledges. A site commitment will greatly strengthen the
             Foundations fund raising success.

   The Mole Hill Working Group has endorsed the Dr. Peter Centre on the
   proposed site and has approved Dr. Peter Foundation moving forward and
   securing a commitment for the subject site in advance of the Staff and
   Working Group s presentation to Council.  Staff expect to report back in
   late June or early July on staff and working group options for Mole
   Hill.

   SITE

   The L-shaped site as proposed by Dr. Peter Foundation and presented for
   consideration in this report is a maximum site area and depending on
   funding, massing and programming may be reduced to only Lot 1 or Lot 1
   and the house immediately west of Lot 1. Staff and Dr. Peter Foundation
   will continue discussion on the  configuration for the Centre in order
   to balance Centre objectives with development/revenue opportunities on
   the block.

   FINANCIAL

   The maximum area as proposed in this report to be reserved for Dr. Peter
   has a market value based on area and proposed FSR of approximately $
   1.2M. A sixty year prepaid lease at 75% of market value is $900,000. Dr.
   Peter Foundation has agreed to a 60 lease at 75% of market value however
   they would prefer a 40 year lease at 50% of market value.  Once all
   funding is in place staff will report back for Council approval of site
   area and lease terms.

   CONCLUSION

   Staff believe the Dr. Peter Foundation project meets the Vancouver City
   Council resolutions on Nelson Park of April 2, 1996 in regards to
   leasing, infill, character, scale and use therefore staff are
   recommending the subject site be reserved for the proposed Dr. Peter
   Centre.


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