ADMINISTRATIVE REPORT Date: July 4, 1997 C.C. File No.: 4160 TO: Vancouver City Council FROM: General Manager of Parks and Recreation and General Manager of Community Services SUBJECT: Coal Harbour Community Centre - Funding Recommendations RECOMMENDATION A. THAT Council allocate $4,640,000 from the Community Amenity Contributions collected in the "Triangle West" area to fund the City's share of the capital cost of the Coal Harbour Community Centre. B. THAT Council allocate $1,080,000 from the Community Amenity Contributions collected in the Triangle West area, as a loan to be recovered from the budget for the non-market housing when it proceeds, to fund the underground parking for the future 40 units of non-market housing which will be built on the adjacent site. CITY MANAGER'S COMMENTS The City Manager RECOMMENDS approval of A and B. COUNCIL POLICY There is no specific Council resolution identifying the funding source for the project. However the cost sharing principle is contained in the May 1995 rezoning report for Coal Harbour Sub Area 1-B, and references are made in various CAC reports on Triangle West developments, such as "... it is recommended that the funds be assigned for park and/or social amenity use within Triangle West or for facilities nearby that will serve the people in this area". (March 1992) PURPOSE The purpose of this report is to identify and allocate funding for the City's share of the development costs of the Coal Harbour Community Centre and related parking. BACKGROUND As outlined in the May 2, 1995 rezoning documentation, an approximate 1,800 square metre community centre is to be built on the site between Broughton and Jervis Streets on the seawall. This size is based on the projected new population for Coal Harbour, the Bayshore project and the Triangle West area. Hence the project is to be cost-shared among Marathon Realty as the site developer, the Bayshore development, and the City. This sharing was respectively referred to as 40%/20%/40% in the 1995 report. The Bayshore rezoning report of 1991 set out the figure of $771,300 plus inflation ($863,000, 1997 dollars) for their share. This estimate was calculated on the basis of both the parkade and building construction costs. This figure did not include consultant, furniture or miscellaneous costs and did not anticipate the poor soil conditions which nearly doubled the cost of the parking. Therefore Bayshore s share will amount to about 12% while the City's will be 48%. Council approved a change in the project parking provisions as outlined in the enclosed report titled Marathon Coal Harbour - Phase 1B dated June 17, 1996. As a result Marathon not only pays 40% of the community centre cost but also 40% of the total approved parking of 110 stalls. It is important to note that the risk of any future increases to this cost will be shared by the City (60%) and Marathon (40%). DISCUSSION The Community Centre is one component of a project that will also include a park, 806 square metres of daycare space, the Coal Harbour School, 40 units of family social housing, and public parking. The project is being developed in two phases because there is no current funding for the school and the social housing. The first phase will contain the community centre located on the waterfront walkway, with the public parking garage behind and the park over top of both. The second will consist of an eight storey building with the school on the first two floors, the daycare on the third, and the social housing on the top five storeys. The preliminary design for the project covers both phases and has received preliminary development permit approval. The second phase of the project will proceed when funding for the school is available. Funding for the daycare has been provided by Marathon, and funding for the social housing will be sought through BC Housing's proposal call process once the school funding is approved. The project is complex and expensive because of the mix of uses and the small size of the site. A mixed use building, however, is the only way that these public amenities can be provided in this high density neighbourhood. The construction cost of the project is in part off-set by the City receiving the site for free. The preliminary design for the project has been costed by quantity surveyors and the cost of the project can be covered by the budgets available. 1. Design: While the parking for the housing can be built separately from the parking for the community centre and school, there is a significant cost efficiency in enlarging the parking for the community centre to include the housing parking, rather than build it underneath the school. Staff recommend that the 40 stalls for the social housing be built as part of the phase one garage, bringing the total number of stalls to 150. These stalls cost $26,900 each for a total of $1,080,000 for the 40 social housing units. Funding for these stalls would be paid out of the Community Amenity Contributions raised from the Triangle West rezonings to date. Some of these funds were to be spent on replacement housing for the rental units that may be lost in the area. While some rental units in Triangle West have been demolished recently, demolition of the remainder is not expected in the near future. Hence rental replacement funds are not needed now in Triangle West and could be available as a loan to pay for the 40 stalls for the social housing in this project. They would be paid back from the social housing project budget when funding is received through provincial housing programs. The repayment of this loan to the CAC fund is affected by both the provincial program and the school construction. As the housing and daycare are on top of the school, the latter must be built prior to the housing. The Province will only provide the construction funding after the potential new pupils have materialized. Project build out could take a decade and there are no guarantees that enough children will move into the area to trigger school development. The school is designed for 375 students. However, the City will own this site and, if after this time there is no school demand apparent, the City may choose to develop the site in a different fashion. The 40 stalls could be assigned to the new development. Currently, $7.4 million is in the Triangle West CAC account. If the additional parking, as well as the community centre, are funded from this account, $1.7 million will remain for other projects. Also, the net revenue from the 40 parking stalls (used in the interim as public parking) will be credited back to the CAC fund until the phase two project is built. The original concept contemplated an after school care/family place activity room of approximately 180 square metres adjoining the community centre space. This function has now been consolidated with the daycare facilities above the school. Staff wish to retain this space as valuable for additional community centre programming. Space utilization at the West End Community Centre is among the highest in the community centre system. Space is at a premium and expansion possibilities are few at the Denman location. Given that the Coal Harbour centre will in all likelihood be programmed in conjunction with the West End Community Centre, the potential extra multi purpose space is very desirable. As this will be a poured in place concrete structure, it would be difficult and costly to develop additional space in the future. The cost of this additional space would be outside the cost sharing agreement with Marathon and hence would also have to be borne by the City. In addition there is more circulation space required thereby bringing the total floor space to 350 square metres. 2. Development Costs: The following is a breakdown of the estimated costs to complete the first phase of the project, including the community centre, parking structure and the park located above these two uses. The cost of the park is entirely paid for by the developer, Marathon. Total City Marathon Parkade - 110 spaces $2,960,000 $1,776,000 $1,184,000 Community Centre-1,800 sm 3,376,000 2,025,500 1,350,500 Construction Contingency 400,000 240,000 160,000 Utilities/Hookup Charges 150,000 90,000 60,000 Furnishings 360,000 216,000 144,000 Consultants/Testing 730,000 438,000 292,000 Permits 100,000 60,000 40,000 Park Board Staff Time 70,000 70,000 Activity Room and Circulation 350 sq m 587,500 587,500 Sub-Totals 8,733,500 5,503,000 3,230,500 Bayshore Contribution - 863,000 City's share-community centre 4,640,000 Parkade - 40 spaces for future housing 1,080,000 1,080,000 Totals 9,813,500 5,720,000 3,230,500 In summary, the City share of the project costs is roughly $5,503,000 for the community centre and related parking, less approximately $863,000 contribution from the Bayshore (inflation adjusted), leaving $4,640,000. In addition, $1,080,000 is required from the City for the advance funding of the 40 parking spaces for the non-market housing, bringing the total City cost to $5,720,000. 3. Timing: The developer is estimating that the market housing trigger for the community centre in areas 1-B or 3 could come into effect in January 2000. As a result, they wish to push forward at this time with detailed design to procure a building permit by roughly year end. Design work on the south/west portion of the site (school, daycare, housing) will not proceed beyond the existing preliminary development permit stage until the Ministry of Education is prepared to fund the school. 4. Funding: Funding for the City's portion of the development is being requested from the Community Amenity Contribution collections from the Triangle West area. Currently, there is approximately $7,400,000 in this account. Staff are in the process of finalizing a report recommending the establishment of a Development Cost Levy District to provide funding for required public amenities and replacement housing for Triangle West. This would replace CAC contributions in the future. The Community Amenity Contribution funds are separate from DCL funds and can be applied to amenities which may not be DCL fundable, for instance, the Coal Harbour Community Centre. A future report from the Planning Department will provide various funding options for a variety of required public amenities as part of a detailed Public Benefits Strategy for the downtown. At this stage, we require approximately $498,000 to cover the City s share of consulting contracts and permits to have a completed tender package in hand by early 1998. 5. Estimated Operating Costs: The projected operating costs are based on the current operating costs of similar size community centres in the system, i.e. Douglas Park and False Creek. This envisages an annual cost of approximately $340,000 for the new facility. * * * * *