ADMINISTRATIVE REPORT

                                           Date: June 13, 1997
                                           Dept. File No.
                                           CC File: 2065  

   TO:       Vancouver City Council

   FROM:     Director of Community Services, Social Planning

   SUBJECT:  Capital Grant for Frog Hollow Neighbourhood
             House Expansion


   RECOMMENDATION

        THAT City Council approve a Capital Grant of $214,000 (Two Hundred
        and Fourteen Thousand dollars) to help fund the expansion of the
        City-owned Frog Hollow Neighbourhood House facility - interim
        source of funds is Revenue Surplus, in advance of approval of the
        1998 capital budget.  This grant is CONDITIONAL on the remainder of
        the funding ($475,000 total cost) being secured.

   GENERAL MANAGER'S COMMENTS

        The General Manager of Community Services submits the foregoing for
        CONSIDERATION.

   COUNCIL POLICY

   Approval of a grant requires eight affirmative votes.

   PURPOSE

   The purpose of this report is to recommend approval of a Capital Grant
   as the City's contribution towards a 2000 sq. ft. addition to Frog
   Hollow Neighbourhood House for a Family Place and seniors programs room.

   BACKGROUND

   Frog Hollow Neighbourhood House operates out of a City-owned facility at
   2131 Renfrew Street.  Frog Hollow provides a wide range of social
   services to local residents - last year, over 1,000 individuals, from
   infants to the very senior, took part in its activities.  Most
   participants speak a language other than English as their first language
   and approximately 10% are of First Nations heritage.  Approximately
   two-thirds of program participants are from low income families.  The
   demand for services continues to grow, but there is nowhere left to put
   them.

   The 1997-1999 Capital Plan contains an allocation of $2.5 million for
   City-owned social service and cultural facilities.  At the time that the
   1997 Capital budget was being prepared, City staff were not anticipating
   any need for money to be set aside this year.  Several projects, in
   varying degrees of readiness, were identified (including Frog Hollow),
   but other sources of funding required to complete the projects did not
   appear to be available at that time.

   However, in mid April, the Federal and Provincial Governments announced
   that Phase II of the Infrastructure Works Program had been agreed to. 
   Included in this agreement was an allotment of 10% of the total funds
   for community projects.  Details on this aspect of the program became
   available in late April.

   On May 29, 1997, City Council endorsed a number of City-initiated
   projects for funding under the Infrastructure Works Program and
   instructed that applications be submitted for them.  Council also
   endorsed two projects that had been initiated by community
   organizations.  There may have been (and probably were) other
   community-initiated projects being applied for at the time, but City
   staff were not aware of them.

   The Frog Hollow Neighbourhood House Project

   For several years, Frog Hollow has been planning for an expansion of
   their facility.  They do not have the room to introduce more programs;
   consequently, even though there has been a demonstrated need for certain
   programs, and operating funding has been  available, these programs and
   services have not been offered.

   When the Phase II - Infrastructure Works Program was introduced, Frog
   Hollow felt this may be a unique opportunity to get the additional
   space.  On their own, they put together a project proposal and submitted
   it as quickly as they could to the Infrastructure Works office.  

   Frog Hollow is proposing a 2000 sq. ft. addition to their current
   building.  Contained in this space would be an area for seniors
   programs, another for "family place" type programs, and some offices. 
   As this addition would be on the second floor, an elevator is included.

   The total estimated cost of this project is $475,000.  If approved, the
   Infrastructure Program would provide $158,333 (1/3 of the total).  Frog
   Hollow has committed to raise $102,667, leaving a shortfall of $214,000.

   DISCUSSION

   $2.5 million was included in the 1997 - 1999 Capital Plan for City-owned
   cultural and social service facilities.  Approximately 
   $1 million has been tentatively ear-marked for Little Mountain
   Neighbourhood House, but the remainder was not attached to specific
   projects because the ability for these community-based projects to be
   completed depends on the changing needs in the neighbourhoods, the
   readiness and ability of the community groups to initiate and follow
   through on a project and the availability of funding.  All three factors
   have come together for Frog Hollow at this time.

   No funding was included in the 1997 Capital Budget for this type of
   project.  However, the Infrastructure Program office advises that they
   need a commitment from other potential funders before they can give
   serious consideration to the proposal.  Also, all projects must be
   completed by March 31, 1998 to be eligible for Infrastructure money;
   therefore, projects of the scope of Frog Hollow s must begin within the
   next month or two.

   Funding for this project can be included in next year's Capital Budget,
   with the allocation coming from the Capital Plan money specified for
   those purposes.  However, to meet the funding deadline noted above,
   interim financing will have to be arranged.  The Director of Finance
   advices that Revenue Surplus could be used to provide this.

   CONCLUSION

   A unique opportunity has arisen for Frog Hollow Neighbourhood House to
   expand its facility, and thus its programs, to the direct benefit of the
   neighbourhood residents.  With an investment of $214,000, the City may
   realize improvements to its asset (the building) worth more than double
   that amount.

   The grant, if approved, should be conditional on the Infrastructure
   Works funding and sufficient money being raised in the community to make
   this project a reality.  Without the full funding, the City component
   alone would not be sufficient to bring about significant change.


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