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. * * * * *