ADMINISTRATIVE REPORT


                                                Date: July 11, 1997
                                                CC File No.: 1203/5809

   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services

   SUBJECT:  Construction of Alberta Wheat Pool Roadway


   RECOMMENDATION

        A.   THAT Council authorize the City to enter into an agreement
             with Alberta Wheat Pool concerning the construction of an
             access roadway containing the following terms and conditions:

             (1)  The City's obligations are to:

                  (a)  construct a new roadway, sidewalk and bridge, on
                       City-owned land immediately north of the C.P.R.
                       Right-of-Way from Commissioner Street to the
                       northeast boundary of Lot Y, Town of Hastings and of
                       the Bed and Foreshore of Burrard Inlet Plan 19378
                       (the "Alberta Wheat Pool Roadway"), at a cost of
                       approximately $1.6 M.

                  (b)  operate and maintain the Alberta Wheat Pool Roadway.

             (2)  The Alberta Wheat Pool is to reimburse the City the total
                  cost of construction of the Alberta Wheat Pool Roadway
                  including all drainage costs, estimated to be $1.6 M plus
                  interest charges at the same rate as Local Improvement
                  projects, by way of 15 annual payments. Prior to the City
                  commencing construction of the Alberta Wheat Pool
                  Roadway, the Alberta Wheat Pool shall post security for
                  $1.6 M by way of providing to the City a Letter of Credit
                  in a form acceptable to the Director of Legal Services in
                  the amount of $1.6 M; and

             (3)  Such other terms and conditions as are acceptable to the
                  General Manager of Engineering Services,  and the
                  Director of Legal Services, it being noted that no legal
                  obligations shall arise until the execution of the
                  documents contemplated herein; and

        B.   The Director of Legal Services be authorized to execute such
             documents as are necessary to complete the transactions
             contemplated by this Council Report.

   COUNCIL POLICY

   There is no Council policy on this subject.


   PURPOSE

   The purpose of this report is to obtain Council approval for the City
   entering into a contract with the Alberta Wheat Pool concerning the
   construction of the Alberta Wheat Pool Roadway and for the financial
   arrangements necessary to facilitate this arrangement.


   BACKGROUND

   On November 5th, 1996, Council gave approval for the Port Roadway
   Connector to McGill Street Project.  This project will result in the
   removal of Port Roadway traffic out of the residential area on Renfrew
   Street, north of McGill Street.  This will also allow for the physical
   closure of Wall Street at McGill Street and other measures which can
   deal with commuter traffic through-cutting on Wall Street.  The new
   overpass presently under construction will improve access to New
   Brighton Park for pedestrians and bicyclists, as well as vehicles.  As
   part of this large project, construction of a new roadway connection to
   the Alberta Wheat Pool (the Roadway) will improve pedestrian access at
   the Windermere connection to New Brighton Park. 

   The Port Roadway Connector report noted  The Alberta Wheat Pool will be
   responsible for the cost of the Roadway, possibly through a Local
   Improvement.   The City would construct the Roadway and the Alberta
   Wheat Pool would repay the City over 15 years.

   FINANCIAL IMPLICATIONS

   The Alberta Wheat Pool is responsible for all costs of the Roadway,
   including construction, drainage and financing, (other than the future
   operating and maintenance costs which shall be paid for by the City). 
   Construction costs are currently estimated to be $1.6 million.
   Initially, constructing the Roadway as a Local Improvement was proposed
   as the mechanism to allow payment over a 15 year period.  Further review
   indicated that a Local Improvement would not provide the City with the
   necessary security as the Alberta Wheat Pool is merely a tenant of all
   or most of the property it occupies.  Recent discussions with the
   Alberta Wheat Pool have resulted in the parties agreeing to the Alberta
   Wheat Pool providing the City with a Letter of Credit for $1.6 million
   as security for its agreement to pay the cost of construction of the
   Alberta Wheat Pool Roadway.  This is acceptable to the Director of
   Finance and the Director of Legal Services.  The City will proceed with
   financing and constructing the Roadway.  The Alberta Wheat Pool will
   then repay the City the total cost plus interest over a 15 year period. 
   Any default in payment by Alberta Wheat Pool will result in the City
   having the option to immediately cash the Letter of Credit.

   IMPLEMENTATION 

   Construction of the Roadway could begin this Fall.


   CONCLUSION

   A construction agreement secured by an irrevocable Letter of Credit for
   $1.6 million is a suitable arrangement to allow the City to proceed with
   constructing and financing the Alberta Wheat Pool Roadway, with all
   construction and financing costs to be ultimately paid by the Alberta
   Wheat Pool.



                               *   *   *   *   *