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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