CITY OF VANCOUVER

                               REGULAR COUNCIL MEETING MINUTES
                               STANDING COMMITEE OF COUNCIL ON
                                  CITY SERVICES AND BUDGETS

                                        JUNE 19, 1997


               A Regular Meeting of the Council of the City of  Vancouver was held
          on Thursday, June 19, 1997, at 3.55 p.m., in Committee Room No. 1, Third
          Floor,  City Hall, following the Standing Committee on City Services and
          Budgets meeting, to consider the recommendations of the Committee.

               PRESENT:            Mayor Philip Owen
                                   Councillor Don Bellamy
                                   Councillor Nancy A. Chiavario
                                   Councillor Jennifer Clarke
                                   Councillor Alan Herbert
                                   Councillor Daniel Lee
                                   Councillor Don Lee
                                   Councillor Gordon Price
                                   Councillor George Puil
                                   Councillor Sam Sullivan

               ABSENT:             Councillor Lynne Kennedy (Leave of Absence)

               CITY MANAGER'S
               OFFICE:

               CLERK TO THE
               COUNCIL:            Tarja Tuominen


          COMMITTEE OF THE WHOLE

          MOVED by Cllr. Puil,
          SECONDED by Cllr. Bellamy,
               THAT this Council resolve itself into Committee of the Whole, Mayor
          Owen in the chair.

                                                  - CARRIED UNANIMOUSLY



                                      COMMITTEE REPORTS


          Report of Standing Committee on City Services and Budgets
          June 19, 1997

               Council  considered  the  recommendations   of  the  Committee,  as
          contained in the following clause of the attached report:

               Cl.1:     Payment-in-Lieu - Major Project Non-Market Housing


          Clause 1

          MOVED by Cllr. Puil,
               THAT  the recommendation of the Committee, as contained in Clause 1
          of this report, be approved.


                                                  - CARRIED UNANIMOUSLY


          RISE FROM COMMITTEE OF THE WHOLE

          MOVED by Cllr. Puil,
               THAT the Committee of the Whole rise and report.

                                                  - CARRIED UNANIMOUSLY



          ADOPT REPORT OF COMMITTEE OF THE WHOLE

          MOVED by Cllr. Puil,
          SECONDED by Cllr. Bellamy,
               THAT the report of the Committee of the Whole be adopted.

                                                  - CARRIED UNANIMOUSLY


                The Council recessed at  4:00 p.m. to reconvene "In-Camera".

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                                      REPORT TO COUNCIL


                                STANDING COMMITTEE OF COUNCIL
                                ON CITY SERVICES AND BUDGETS

                                        JUNE 19, 1997


               A  Regular Meeting  of the  Standing Committee  of Council  on City
          Services  and Budgets was held on Thursday,  June 19, 1997 at 2:00 p.m.,
          in Committee Room No. 1, Third Floor, City Hall.


               PRESENT:            Mayor Philip Owen
                                   Councillor Don Bellamy
                                   Councillor Nancy A. Chiavario
                                   Councillor Jennifer Clarke
                                   Councillor Alan Herbert
                                   Councillor Daniel Lee
                                   Councillor Don Lee
                                   Councillor Gordon Price
                                   Councillor George Puil
                                   Councillor Sam Sullivan

               ABSENT:             Councillor Lynne Kennedy (Leave of Absence)

               CITY MANAGER'S
               OFFICE:

               CLERK TO THE
               COMMITTEE:          Tarja Tuominen


          ADOPTION OF MINUTES

               The  Minutes of the Standing Committee on City Services and Budgets


          meeting of May 15, 1997, were adopted.


          RECOMMENDATION

          1.   Payment-in-Lieu - Major Project Non-Market Housing
                                                                      File: 4656-1

               The Committee  had before it a Policy Report dated May 28, 1997 (on
          file)  in which the Manager of the  Housing Centre, in consultation with
          the  Director  of Central  Area  Planning  recommended approval  of  the
          following:

               A.   THAT Council adopt the  following additional policies for non-
                    market housing in the major projects:

                    1)   In future major project  rezonings, air-space parcels for
                         non-market housing  are to be  avoided wherever possible,
                         and where they  cannot be avoided should be restricted to
                         parking podia.

                    2)   If senior  government funding  is not available  for non-
                         market housing  sites that  are air space  parcels within
                         larger market  projects, when  the market  components are
                         ready  to  proceed,  Council  is  prepared  to   consider
                         alternative affordable housing options or payment-in-lieu
                         to  allow the whole project  to be developed  at the same
                         time.

                    3)   For non-market sites that are air-space parcels, payment-
                         in-lieu  will  be  calculated  as  if  senior  government
                         funding  for non-market  housing  were available  for the
                         project. 

                    4)   If senior  government funding  is not available  for non-
                         market housing sites that are not air-space parcels, they
                         are  to  be held  in  reserve,  pending    future  senior
                         government funding, at Council s discretion.

               B.   THAT  the Director of Central Area Planning and the Manager of
                    the Housing  Centre explore options to expand the capacity for
                    non-market housing  in the  major projects, and  in particular
                    Concord  Pacific  Place, with  the intent  to maintain  to the
                    extent possible the objective of 20% non-market housing. 

               Ted Droettboom,  General Manager  of Community Services,  and Larry
          Beasley, Director of Central Area  Planning, briefly reviewed the report
          and responded to questions.  It  is estimated there are three  potential
          social  housing sites where development timing and funding is a problem.
          Regarding payment-in-lieu, there are many ways and theories to calculate
          the  amount.  The recommended calculation  is the truest amount, in that
          it is the same amount whether the development proceeds or not.  

               The   following  speakers   expressed  concern        the  proposed
          recommendations will set a precedent to allow developers on future major
          projects to by-out of affordable housing obligations.  The speakers also
          supported  the City maintaining  a commitment to  affordable housing and
          mixed income communitites.

              Sean McEwen, Lower Mainland Network for Affordable Housing
              Ga Ching Kong, Lower Mainland Network for Affordable Housing
              Tom Laviolette, Carnegie Community Association
              Suzanne Zimmering, Community Housing Land Trust Foundation


              Doug Ragan
              John Irwin
              Leslie Stern, Women's Housing Coalition
              Dana Webber, B.C. Non-Profit Housing Association
              Lita Barrie
              Joffre Pomerleau, Innovative Housing Society
              Donna Clarke

               The speakers' points are summarized as follows: 

              Several speakers spoke  in support of a letter dated  June 16, 1997
               from the  Lower  Mainland Network  for Affordable  Housing and  the
               Vancouver  Coalition  of  First  Line Children  and  Youth  Service
               Providers (on  file) which asks  the City reject  Recommendation A,
               reaffirm  its  commitment  to affordable  housing  and mixed-income
               communities,   explore  a  new   affordable  housing  policy  which
               addresses the reality of cuts from senior levels of government, and
               establish an  affordable housing commission to  reassess the City's
               affordable housing policy. 

              The proposed policy will have broad ramifications  for all projects
               and affordable  housing.   The municipality  has the responsibility
               to support affordable housing and  developers should not be allowed
               to avoid paying for affordable housing.

              Payment-in-lieu could also include  the share of construction costs
               savings.

              By maintaining the City's affordable housing policy, people will be
               able to live close to where they work  and will not have to commute
               to get to work.

              We need  to look at  more cost  effective ways to  build affordable
               housing for young people, pensioners, women on their own.

               In  response to questions, Larry Beasley advised of the 31 sites in
          downtown  mega-projects, only  5  are in  complicated circumstances.  Of
          those 5,  only 2 are  so complicated the  sites will forego  getting the
          affordable housing.   The other  26 sites still  represent mixed  income
          communities. 

               Jeff Herold,  representing Marathon Realty, noted  he supported the
          general  intent of the Report, but requested  a change to the wording in
          Recommendation A(4)  as follows: "If  senior government  funding is  not
          available for non-market  housing sites that are not  air-space parcels,
          alternate affordable  housing initiatives will be  considered by Council
          until such time that future senior government funding is in place."

               Ted  Droettboom  advised  he  had  no  concern  with  the  proposed
          amendment  if the  recommendation  also included  wording which  clearly
          states  the sites  be  held in  reserve  until  there is  an  acceptable
          alternate or the availability of funding.

               Jon   Markoulis,   representing    Concord   Pacific    Development
          Corporation,  noted the 20% affordable  housing target was an artificial
          one, and will result in empty lots.  It is difficult to build non-market
          housing if developers  are not allowed  to build the  units off-site  of
          mega-projects.

               The following motion by Councillor Price  was put and carried.  The
          Committee, therefore,

          RECOMMENDED


               A.   THAT  Council reaffirm  its  commitment to  have mixed  income
                    housing on major projects.


               B.   THAT Council adopt the  following additional policies for non-
                    market housing in the major projects:

                    1)   In future  major project rezonings, air-space parcels for
                         non-market  housing are to  be avoided wherever possible,
                         and where they  cannot be avoided should be restricted to
                         parking podia.

                    2)   If senior  government funding  is not available  for non-
                         market housing  sites that  are air space  parcels within
                         larger market  projects, when  the market components  are
                         ready  to  proceed,  Council  is  prepared   to  consider
                         alternative affordable housing options or payment-in-lieu
                         to  allow the whole project  to be developed  at the same
                         time.

                    3)   For non-market sites that are air-space parcels, payment-
                         in-lieu  will  be  calculated  as  if  senior  government
                         funding for  non-market  housing were  available for  the
                         project. 

                    4)   If senior  government funding  is not available  for non-
                         market  housing  sites that  are  not air-space  parcels,
                         alternative  affordable  housing   initiatives  will   be
                         considered  by Council;  otherwise they  will be  held in
                         reserve  until  there  is  an  acceptable alternative  or
                         available funding, at Council's discretion.

               C.   THAT  the Director of Central Area Planning and the Manager of
                    the Housing Centre explore options to  expand the capacity for
                    non-market housing  in the  major projects, and  in particular
                    Concord  Pacific Place,  with the  intent  to maintain  to the
                    extent possible the objective of 20% non-market housing.

                                                  - CARRIED UNANIMOUSLY



                             The meeting adjourned at 3:50 p.m.

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