ADMINISTRATIVE REPORT

                                           Date:  June 11, 1997
                                           C.C. File No.: 8009/1203   
   TO:       Standing Committee on Planning and Environment

   FROM:     General Manager of Parks and Recreation
             General Manager of Community Services

   SUBJECT:  Request for a Lease Extension of the PNE

   RECOMMENDATIONS

        A)   THAT the lease extension to the PNE until December 31, 1999 be
             granted on the basis of:

             i)   City Council's conditions described in their resolutions
                  B,C,D,E,F, and G passed on April 22, 1997; and

             ii)  City Council being able to implement the two phased
                  transitional park development plan as outlined in this
                  report; and

        B)   THAT Council authorize the expenditure of up to $3.0 million
             on Phase One of the Hastings Park Restoration with specific
             contracts for design, building demolition, landscape
             construction and related project management and design to be
             approved by the Vancouver Park Board.  Source of funding to be
             Hastings Park Capital Account.

        C)   THAT the implementation of the Phase Two park development be
             the subject of a report back with more accurate park
             development costs and be subject to Council's acceptance of
             the final temporary improvement costs.

        D)   THAT Council agree to pay the PNE $85,000 in compensation for
             maintenance expenses during the month of October, 1997.

        (No legal rights shall be deemed to flow from approval of these
        recommendations until an agreement to the satisfaction of the
        General Manager of Community Services, the General Manager of Parks
        and Recreation and the Director of Legal Services has been
        completed and approved by Council.)

   CITY MANAGER'S COMMENTS

        The Park Board has noted the need to reduce the allocation of funds
        to temporary works which will be lost in a permanent redevelopment. 
        The initial concept, which the Board and staff will review fully,
        could see as much as $650,000 invested in temporary works with no
        long term value.  The City Manager believes the amount at risk
        should be reduced, as suggested by the Park Board, and that Council
        should endorse this direction as outlined in this report.

        The City Manager RECOMMENDS approval of the above recommendations.

   COUNCIL POLICY

   On April 22, 1997 Vancouver City Council approved the following
   recommendations:

        A.   THAT Council agree to a lease extension for the PNE, so that
             it can continue to operate Hastings Park through December 31,
             1999, subject to the PNE, the City and the Park Board
             achieving an agreement by June 15, 1997, on transitional park
             development during the remainder of 1997, 1998 and 1999
             consistent with the approved Park concept.

        B.   THAT Council agree to pay the PNE $85,000 a month, for the
             period October 31, 1997 through December 31, 1997, and
             subsequently $500,000 for the period January 1, 1998 through
             December 31, 1998 and $500,000 for the period January 1, 1999
             though December 31, 1999, for the maintenance of Hastings
             Park, source of funds to be lease revenue from the Hastings
             Park Racecourse.

        C.   THAT upon the termination of PNE s tenure at the end of 1999,
             Council accept payment of $1,100,000 from the Province of
             British Columbia to assist in the continuing restoration of
             Hastings Park.

        D.   THAT a firm agreement on a Leisure Entertainment Centre,
             resulting from the Request for Proposals (which closed June 5,
             1997), be brought before Council by December 31, 1997. 
             Failure to do this would result in termination of the lease
             effective December 31, 1998.

        E.   THAT if the lease expires on December 31, 1998, the Province
             agree to pay the City the sum of $600,000.

        F.   THAT the existing assets in the Coliseum and the Agrodome be
             turned over to the City on December 31, 1999 or December 31,
             1998, should the lease expire at that time.

        G.   THAT the Province guarantee that, if the Request for Proposal
             is successful, the annual PNE Fair would continue to be part
             of the operation of the Leisure Entertainment Centre.

   BOARD POLICY

   On January 27, 1997, the Park Board passed the following resolution:

        THAT the Park Board convey to City Council and the PNE in the
        strongest possible terms our opposition to any extension after 1997
        of the lease of Hastings Park to the PNE.

   BACKGROUND

   On February 19, 1996 City Council approved a program for the restoration
   of Hastings Park, and on March 27, 1997 Council approved a restoration
   plan (Diagram 1).  Neither the program nor the plan made provision for a
   continued PNE presence.  

   On April 28,1997 Council adopted a motion to extend the PNE lease
   subject to achieving an agreement on transitional park development among
   the PNE, City and the Park Board.  The purpose of this report is to
   advise Council on the transitional park development park plan.

   DISCUSSION

   During May and June, Park Board and City staff and consultants explored
   with PNE staff a number of options which address Council s objective.  A
   two phased program is recommended for approval.  The plan involves the
   demolition of the Swine, Poultry, BC Pavilion, Food Mart and Show Mart
   buildings during 97/98 and the development of a portion of the
   Restoration Plan s central feature, the Sanctuary, during 98/99. This
   phasing reduces the footprint available for the Fair over a two year
   period.

   In reaching this recommendation a number of factors had to be considered
   including:

       incompatible park sanctuary and PNE program requirements;
       disruption and temporary relocation of utilities required to
        maintain the 98 and 99 Fairs;
       accommodation of heavy pedestrian traffic flows between Playland
        and the Renfrew Complex;

       achieving park implementation consistent with the approved plan,
        while minimizing the amount of temporary park development that
        would need to be reworked in subsequent years; maintaining program
        space for PNE fair functions on building demolition sites.

   Phase One Park Restoration (Fall 97 - Summer 98)

   During the first phase, the Swine and Poultry buildings would be
   demolished starting in September 97, followed by the BC Pavilion in
   October.  The Foodmart and Showmart would be demolished starting in
   February 98 following the NHL All Star event.  The BC Pavilion and
   Showmart buildings have extensive asbestos, which has to be removed
   prior to demolition.  The proposed phasing facilitates the removal of
   asbestos in one building, while demolition of another proceeds.  The
   building areas would be regraded and covered in crushed gravel, with the
   exception of two basketball courts to be constructed close to the
   Rollerland building (see Diagram 2).  There is a substantial grade
   difference between the parking lots along Renfrew Street and the paths
   to the east of the Renfrew Complex.  The existing buildings absorb this
   grade change.  The removal of these buildings requires significant
   regrading in that area.  The Food/Showmart and Swine/Poultry demolition
   sites would be available for the PNE use.

   The area currently occupied by the BC Pavilion would be left in a safe,
   but fallow condition surrounded by a double row of trees around the
   perimeter.  The temporary landscaping of this 5 acre site was
   considered, but found too costly since it would all be removed for the
   next phase of park restoration.  Instead a treed perimeter is proposed.

   These trees would become the Hastings Park nursery where trees, and
   other vegetation for the eventual inclusion in the park would be stored
   and nurtured, not unlike what was done for the EXPO 86 site.  During
   sanctuary construction trees would have to be moved and some additional
   handling costs are associated with this.  At the 97 and 98 Fairs there
   would be a model display of the new park and members of the public would
   be encouraged to contribute to park development through the purchase of
   trees with an appropriate recognition in the park.  The tree purchase
   program would also be promoted during the rest of the year by the Park
   Board and community organizations.

   Site maintenance would rest with the PNE except for the tree nursery and
   BCP site.  In the latter case existing PNE employees would maintain
   trees in accordance with Park Board maintenance standards which would be
   paid for by the City/Park Board.

   The capital cost of this phase are estimated to be $3.0 million
   broken down as follows:

             Building Demolition           $1,500,000
             Utility Relocation            $  100,000
             Site Preparation              $  700,000
             Tree Nursery                  $  200,000
             Contingency                   $  300,000
             Project Design/Management     $  200,000

   Approval of this budget is sought, and $4.5 million are available in the
   Hastings Park account.  The Park Board will continue to manage the
   project, approving individual contracts and expenditures within City
   Council s defined fiscal envelope.

   Some of the grading on the Swine/Poultry site would eventually be
   removed at such time when that part of the Sanctuary would be built. 
   This would be at least two years away.  The value of the improvements is
   estimated to be about $150,000. 
      
   Phase 2 Park Restoration (Fall 98 - Summer 99)

   This phase of park development involves a reduction in Fair time
   programming space.  For this reason and the very tight timetable to
   accomplish demolition and landscape construction in a 12 month time
   frame, it was concluded that a two phased program was appropriate. 
   Following the 98 Fair, the Aquastage area and most of the central
   asphalt area would be removed and construction would commence on the
   initial phase of the park s principal feature, the Sanctuary.  This pond
   and stream system would act as a biofiltration area for the stormwater
   collected from the residential area south of Hastings Street.  The plan
   is illustrated in Diagram 3.  This is the smallest area that can be
   constructed containing the major pond areas.  Future phases would
   construct the stream and additional water bodies.

   The area has been carefully defined to minimize the need for temporary
   utility relocations and to accommodate the huge volume of pedestrian
   movement between Playland and the Renfrew Complex. The pond, island and
   associated riparian vegetation would become a Fair exhibit feature
   offering interpretation about park development, biofiltration and the
   various plants, trees and shrubs.  Extensive tree planting on the
   perimeter of this area and elsewhere on the site would also be
   undertaken.

   Constructing the Sanctuary in more than one phase and with the continued
   presence of the PNE results in some temporary compromises to the park
   design and a cost premium for temporary utility relocation.  In future
   years, regrading and replanting of edges to achieve a perfect fit
   between this and later phases of the Sanctuary will have to be
   undertaken.  The total cost premium could be in the order of $500,000,
   but staff and consultants will continue to evaluate this matter to seek
   solutions that would be far more cost effective.

   The entire cost of the phase two is currently estimated to be $4.0 to
   4.5 million and staff would report back in 1998 with a more detailed
   plan and request to authorize further expenditures.

   Once constructed, maintenance of the Sanctuary would be the financial
   responsibility of the City/Park Board, but actual work would be carried
   out by PNE employees.

   Further to a meeting between staff and a representative from CUPE 1004,
   staff are satisfied that there are no major labour - management issues
   in the implementation of the phased plan.  Some smaller issues would be
   resolved prior to implementation.

   A typographical error in the April Council report on this matter
   resulted in the inadvertent exclusion of October 1997 from the period
   for which the PNE is to receive maintenance payments from the City. 
   Recommendation D in this report corrects that error.

   CONCLUSION

   In response to Council s desire to extend the PNE lease, a two- phased
   transitional park development plan has been developed. This plan permits
   building demolition to proceed as originally contemplated, but park
   development proceeds in an area and in a manner that is different from
   what would have occurred if the PNE were to leave in September, 1997. 
   The initial phase of park development is delayed and somewhat
   compromised.  A cost premium will be incurred to have park and PNE fair
   coexist and to blend in this early phase of development with later
   phases.

   Authority is sought for funding to demolish buildings and undertake
   initial landscaping.


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