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". * * * * * 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. * * * * *