ADMINISTRATIVE REPORT
Date: June 24,1997
Dept. File No. F828
CC File: 2614-4
TO: Vancouver City Council
FROM: Manager of the Housing Centre, in consultation with
the Director of Legal Services
SUBJECT: 932 Granville Street - The Roxy Cabaret Ltd. and
Siesta Hotel Housing Agreement
RECOMMENDATION
A. THAT the Housing Agreement summarized in this report be
approved in principle, subject to finalization to the
satisfaction of the Director of Legal Services and the Manager
of the Housing Centre, provided that this resolution does not
create any legal rights or obligations and none arise until
the agreement as authorized by by-law is signed.
B. THAT the Director of Legal Services be instructed to bring
forward a by-law to enter into the Housing Agreement.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of A
and B.
COUNCIL POLICY
On July 13, 1995 Council adopted the following motions:
That the Vancouver Liquor Commission endorse the application by the
Roxy Cabaret Ltd., to increase the seating to 275 seats in the
Class 'C' Cabaret at 932 Granville Street, subject to a 10-year
housing agreement to the satisfaction of the Manager of the Housing
Centre and the Director of Legal Services and the sound separation
on the ceiling of the cabaret being acceptable to the Director of
Environmental Health; and
That the City Clerk be instructed to not forward this endorsement
to the Liquor Control and Licensing Branch until these conditions
have been met;
That staff be instructed to incorporate provisions in the Housing
Agreement to provide for monitoring and to ensure the building is
maintained in a quality manner;
Further that the Housing Agreement include provisions, to the
satisfaction of the Director of Legal Services, ensuring that any
subsequent purchaser of the hotel, within the term of the agreement
assume, in form satisfactory to the Director of Legal Services, the
obligations of the owner pursuant to the Housing Agreement, and
that the terms and conditions of the original agreement apply to
any subsequent purchaser.
On August 1, 1996 Council adopted the following:
THAT Council defer approval of the Housing Agreement for 932
Granville Street recommended in the Administrative Report dated
July 16, 1996, subject to the owner and the mortgage holders
agreeing to priority of the Housing Agreement, and that staff
report back if the subject condition cannot be met.
PURPOSE
This report seeks Council approval of a housing agreement for
932 Granville Street covering 64 of 75 single rooms above the street
level cabaret operation.
BACKGROUND
The Downtown South liquor license moratorium was established on May 28,
1992. In March 1995 the owner of the Roxy Cabaret Ltd. at 932 Granville
Street applied for an increase in seating from 195 seats to a maximum of
325 seats in the Class 'C' Cabaret. This application was not supported
by staff and the applicant agreed to defer the application prior to its
consideration by the Vancouver Liquor Commission.
After discussion with staff, the application was revised to a maximum of
275 seats. The applicant offered to enter into a 10 year housing
agreement guaranteeing that the hotel rooms in the Siesta Hotel, above
the Roxy Cabaret, would be rented on a monthly basis at a rent
affordable for people on social assistance. The applicant also proposed
noise abatement work to mitigate the cabaret noise which is especially
disturbing to residents immediately above. In July 1995 the Vancouver
Liquor Commission and City Council endorsed the application by Roxy
Cabaret Ltd. to increase the seating capacity from 195 seats to
275 seats, subject to a housing agreement and noise abatement.
In August 1996 Council considered a report on the housing agreement but
deferred action noting that the agreement would not have priority with
the mortgage holders. During the past year staff and the applicant have
revised the agreement and the owner has committed that the mortgage
holders have agreed to the City s priority.
DISCUSSION
There has been protracted discussions between staff and the applicant on
the terms of the housing agreement over the past two years.
Terms of the Housing Agreement
The major features of the proposed housing agreement are as follows:
1. 64 of the 75 rooms will be preserved and rented as single occupancy
rooms. The remaining 11 rooms are used for staff and
administrative purposes. If any of the 11 rooms become available
for rental, they will be single room occupancy rooms, covered by
same rent restrictions as the other rooms. On each of the 3
floors, up to two rooms may be lost should the owner renovate and
expand the washroom facilities or combine rooms. Otherwise City
permission is needed to reduce the number of rooms covered by the
agreement.
2. Singles receiving social assistance shall have priority.
3. The rents will be $325 per month, the shelter component of welfare,
and if the shelter allowance increases, the rents could increase
commensurately.
4. Disputes will be deferred to arbitration.
5. The owner shall provide the City with monthly rent rolls on an
annual basis or at any time requested by the City.
6. The owner agrees to maintain the Siesta Rooms in a satisfactory
physical state, to conduct regular maintenance and repairs, and to
ensure that the premises are kept in safe, neat and tidy conditions
at all times.
7. The housing agreement is binding on all persons who acquire an
interest in the property.
8. The 10 year housing agreement will be retroactive to July 1, 1997
but will not come into force until the Liquor Control and Licencing
Branch gives its approval to more than 195 seats. However the
City s consent to increase seating from 195 to 275 will not be
given until the noise abatement work is completed to the
satisfaction of the Director of Environmental Health.
9. The housing agreement has priority over mortgage holders and all
other parties having an interest. This ensures the City's
interest.
Housing Agreement Limitations
Staff have concluded an agreement which they believe meets Council
objectives and protects the City's interests. However there are several
issues to note:
1. The arbitration process provides some protection should a dispute
arise about the terms of the agreement. There is a financial
penalty if rents are excessive. However the applicant was not
willing for the City to appoint a receiver in the case of default.
Undoubtedly the City would make a serious assessment before
initiating an arbitration.
2. The owner is participating in the Canada Mortgage and Housing
Corporation (CMHC) Rooming House Rehabilitation program. Under the
terms, the owner receives a forgivable loan which is used to
upgrade the rooms in exchange for renting 65 rooms at $325 per
month, escalating with Consumer Price Index (CPI), for 9 years
starting January 1996. The housing agreement provides similar
public housing benefits but is more secure in that the forgivable
loan may be repaid at any time at the discretion of the owner. The
Housing Agreement also gives the City direct monitoring and
enforcement authority.
Future Steps
Following approval of this report, staff will prepare a by-law to be
passed by Council. Subsequently the housing agreement will be signed by
both parties and registered. The owner is currently undertaking the
noise abatement. When the work has been completed to the satisfaction
of the Director of Environmental Health, the City Clerk will then notify
the Liquor Control and Licensing Branch of the City's support of
additional seats. The owner s housing obligations become binding
(retroactively to July 1, 1997) upon the Licencing Branch approving
seating greater than 195.
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