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POLICY REPORT
DEVELOPMENT AND BUILDING
Date: January 16, 1998
Author/Local: S. Harvey/6001
CC File No. 2608
RECOMMENDATION
A.THAT the applicant’s request for cultural amenity bonus at 488 Robson Street (DE402595) as outlined in this report be approved in principle, subject to the execution and registration in the Vancouver/New Westminster Land Title Office (the "LTO") of an agreement (the "Construction Agreement") between the owner of 488 Robson Street (the "Owner") and the City providing for:
1.the design and construction by the Owner of a cultural amenity space ("Amenity Space") comprised of 3,116 square feet on the ground floor of the development to be constructed pursuant to DP402595 (the "Development") on the terms contained in this report (and any others required by the Director of Legal Services); and
2.the execution and registration in the LTO of a lease of the Amenity Space between the Owner and the City for nominal rent for a term equal to the equivalent of the life of the Development, on the terms contained in this report (and any others required by the Director of Legal Services),
to the satisfaction of the Director of Legal Services in consultation with the Director, Office of Cultural Affairs and the Managers of Real Estate and Facilities Development. The Construction Agreement shall be executed and registered in the LTO prior to issuance of the development permit for the Development.
B.THAT the Director of Legal Services be authorized to execute and register in the LTO the Construction Agreement and, upon completion of construction of the Amenity Space, to execute and register in the LTO the lease of the Amenity Space between the Owner and the City.
C.THAT the Director of Legal Services be authorized to execute a sublease of the Amenity Space with the Canadian Music Centre and Vancouver New Music Society for nominal rent on the terms set out in this report and on such other terms as are satisfactory to the Director of Legal Services in consultation with the Director, Office of Cultural Affairs and the Managers of Real Estate and Facilities Development.
GENERAL MANAGER’S COMMENTS
The General Manager of Community Services RECOMMENDS approval of A, B, and C, and notes that C represents a grant which requires eight affirmative votes.
COUNCIL POLICY
The Downtown Official Development Plan allows for an increase in the permitted floor space ratio or density of a building, in exchange for public, social or recreational facilities which have a demonstrated need, subject to Council approval.
Bonused amenity spaces are leased by the City and subleased to Vancouver-based, non-profit social service and/or cultural organizations at a nominal rent for a term of up to 20 years and include a series of requirements including the obligation to provide community services and benefits accessible to the public; to undertake a fund raising campaign sufficient to pay future operating costs; and to assume all of the City’s obligations under the head lease.
In 1991, Council approved a series of cultural facilities priorities including the Dance (resource) Centre and other types of cultural resource centres which would serve a range of arts organizations.
In November 1993, City Council approved a Vancouver Arts Initiative recommendation to assist arts organizations in acquiring resource centres for the production, performance and administrative needs of the Vancouver arts community using a variety of mechanisms including the amenity bonusing program and the long-term lease of City owned space at nominal rates.
PURPOSE
The purpose of this report is to seek Council approval for an amenity bonus proposal for a new mixed-use development at 488 Robson Street (DE 402 595). The property owner has offered to provide a 3,116 sq.ft. ground floor space suitable for a music library and resource centre in exchange for 27,191 sq.ft. of additional density.
BACKGROUND
The subject site is located at the southeast corner of Robson and Richards Streets. The applicant has proposed to construct an 18- storey mixed-use commercial/residential building containing 84 dwelling units, approximately 26,938 sq.ft. of retail/office/restaurant and a storefront 3,116 sq.ft. amenity bonus space.
The site is presently occupied by a one-storey commercial building, a 25-foot wide parking lot and a four-storey SRO building (Plaza Hotel). The proposed development, if approved, will result in the loss of about 30 SRO units. Prior to any discussions regarding a social service or cultural bonus, staff reviewed the possibility of bonusing to provide for the replacement or renovation of the SRO. While the DODP provides such housing bonus incentives, the developer has indicated that the retention of the existing SRO is not economic or practical considering the relatively small size of the site.
The development will be subject to development cost levies in excess of $300,000, almost half of which will go to replacement housing. In accordance with the Vancouver Building By-law, a demolition fee of $1,000 per unit will be required. As well, the developer has agreed to enter into an agreement with the City to undertake a relocation plan for the existing residents to assist in securing alternative, affordable housing, to the satisfaction of the Manager of the City’s Housing Centre.
The preliminary development application (DE 402 595) was approved in principle, subject to Council’s approval of the density bonus, on December 15, 1997.
DISCUSSION
Land Use and Urban Design
Central Area Planning policies encourage mixed-use development, including residential in this transition area between the Downtown South residential district, south of Smithe Street, and the commercial core of the downtown. To the west along Granville Street is an emerging entertainment zone which, with the expansion of retail uses eastward along Robson Street towards the Central Library, will make this site an attractive location for a public amenity facility such as the proposed music resource centre.
While this is a small site (100 ft. X 120 ft.), its corner location and zoned height potential up to 300 feet, can accommodate an increase in density resulting from the amenity bonus. The density increase amounts to 2.26 FSR, for an overall total density of 7.26 FSR on the site. The additional density bonus adds 6 storeys to the tower height above what would normally be possible (e.g. 175 feet increased to 230 feet).
The tower floorplate is very small compared to other towers in the vicinity, and is set back from both Robson and Richards streets. Shadowing impacts have been carefully analysed, including potential shadowing in the late afternoon on the Library Square plaza at Homer and Robson Streets. This analysis confirms that there are no significant shadow impacts from the additional tower height on public open space, including the library plaza. View impacts on nearby residential are also negligible, given the proliferation of other towers in the downtown core area. The project also meets livability guidelines for residential use.
Planning staff feel that the proposed amenity use will contribute positively to the emerging entertainment role of this area and is well located with respect to pedestrian and transit access and parking.
Amenity Bonusing Program
Council policy provides for bonusing to secure low-cost housing and/or facilities to meet the needs of the not-for profit social service and cultural community. Bonusing provides one mechanism to secure these facilities in the downtown where real estate costs are prohibitive to either the non-profit sector or to the City’s operating or capital grants budgets.
Bonuses are, however, dependant on securing a site which can accommodate the additional density and a developer willing to pursue the opportunity. The downtown market has not presented an opportunity in recent years. While there have been numerous inquiries, the last amenity bonus approved by Council and built was in 1989 at 938 Howe Street.
When Council first approved a bonus in 1975 for the City Stage on Thurlow Street, it was for a term of 15 years and no provision was made for operating costs. At the end of the term, the City Stage theatre space reverted to the building owner with no further public benefit.
In 1986 and again in 1990, staff reviewed the amenity bonusing program and implemented revisions to ensure that the public benefit would remain as long as the additional density remained. To that end, the bonus calculation was revised to secure the space for the life of the building and to provide a 15 to 20-year prepaid capitalization of operating costs. Early bonuses provided for a share of the operating costs for 15 years. Later bonuses provide for all operating costs for 20 years.
Concurrent with these changes, sub-lessees of the amenity spaces entered into agreements with the City which obliged them to undertake an operating endowment fund raising campaign during the initial 15 to 20 years of their tenancy so that they would have sufficient funds to operate the amenity after the prepaid period expired and maintain the bonus space for the public‘s benefit for the life of the buildling.
In addition to the above noted changes to the program, it should be noted that the ratio of bonus to amenity will increase over time as costs increase. In the bonus calculation, a square foot remains constant while the land purchase, construction, fit-up and operating costs increase over time and therefore the ratio increases as costs continue to rise in Vancouver.
The following chart provides a comparative analysis of the proposed bonus with those previous approved, built and held by the City:
Address
Date
(DP)
Bonus Amenity
Amenity Sq. Ft.
Bonus
Sq. Ft.
Ratio
Additional Benefits
1125 Howe
1981
Pacific Cinecentre
8,499
39,380
4.15
15 Yr. Share Op. Costs
1190 Hornby
1982
Community Arts Council
3,590
22,840
6.36
15 Yr. Share Op. Costs
900 Howe
1984
Public Legal Education
5,000
36,000
7.20
15 Yr. Share Op. Costs
925 W Georgia
1988
Cdn. Craft Museum
9,252
39,903
4.31
15 Yr. Op. Cost Allow.
938 Howe
1989
Vcr. Cultural Alliance
4,095
26,500
6.47
20 Yr. Full Op. Costs
488 Richards
1998
Music Library/Resource Ctr
3,116
27,191
8.73
20 Yr. Full Op. Costs
Real Estate Services staff have reviewed the proposed amenity bonus and their analysis supports a bonus density of 27,200 Sq. Ft. in return for the following:
·a 3,116 sq.ft. ground floor storefront space on Richards St. for the life of the building;
·three "rent-free" parking stalls;
·the amenity space fit out at an average quality as follows:
- drywall
- smooth concrete floor
- partitioning for three offices and a board room
- a small kitchen
- ramp or other form of access for wheelchair
- standard level of mechanical and electrical systems and fixtures
- a one-space wheelchair accessible washroom;
·all heat, light and electrical power usage within the amenity space as well as any common area operating costs associated with the space for a period of twenty years.
In exchange, the applicant has requested an additional 27,200 sq.ft. of bonus density for residential condominium use on the site.
Proposed Amenity Use - Music Library and Resource Centre
The Director, Office of Cultural Affairs has reviewed the proposed amenity opportunity and recommend to Council a sublease to a collective of Vancouver not-for-profit music organizations for a Music Library and Resource Centre, spearheaded by the Vancouver branch of the Canadian Music Centre and the Vancouver New Music Society.
As with other cultural facility initiatives, staff seek opportunities which will benefit a number of arts organizations and patrons. Recent civic initiatives, such as the Dance Centre and the Vancouver Cultural Alliance provide facilities and resources which benefit many artists and art organizations as well as providing a public profile through programs and services. The proposed Music Resource Centre will provide a central location for the services provided by the Canadian Music Centre and Vancouver New Music Society.
The Canadian Music Centre makes the music of Canadian composers available to both the public and professional musicians, through its collections, information resources, and production and distribution activities. It is a one-stop library and information centre for Canadian music. The Vancouver branch has a circulating library - free and open to the public - of 15,000 music scores and recordings of the works of 473 professional composers from across Canada. The Vancouver centre serve a broad range of music interests - from the general public, to students including school choirs, bands, orchestras, through to professional music organizations, artists, composers, conductors, broadcasters and scholars. The centre also provides a focal point for the music community providing space for meetings, workshops and lectures.
The centre is currently housed on West 4th however, the CMC has outgrown the space and staff believe that relocating the music library to a central location with good proximity to the Vancouver Public Library will improve public accessibility as well as partnership potential with other music organizations and the VPL.
The Vancouver New Music Society has provided Vancouver audiences with the music of our time for more than 25 years. They are active in commissioning, creating and presenting works of contemporary composers through a concert series, the New Music Ensemble, new opera and musical theatre works and the Vancouver International New Music Festival.
The collaboration between the Vancouver New Music Society and the Vancouver branch of the Canadian Music Centre provides a solid music resource. Both organizations have a long history in the city, provide important services to a range of local musicians educators and audiences, and both are well managed with sufficient resources to undertake the necessary fund raising commitment for an operating endowment fund.
Staff reviewed the proposal and believe that the space will provide much needed public access to the library and recording resources of the CMC and the street front present will provide a welcome lecture meeting and workshop area for Vancouver musicians, creating a real presence in the City for contemporary music.
Lease and Sub-lease Agreements
Subject to Council’s approval, the City will secure its interest in the amenity space through a lease for the life of the building which will be sub-leased to the music resource collaboration of the Canadian Music Centre and the Vancouver New Music Society on those terms and conditions as are generally outlined in Appendix "A" of this report, as well as other terms as are required by, and satisfactory to the Director of Legal Services in consultation with the Director, Office of Cultural Affairs and the Manager of Real Estate Services.
CONCLUSION
Staff have reviewed the amenity bonus proposal and believe that the land use and urban design impacts of the additional floor space are acceptable, that the applicant has demonstrated a willingness to relocate the existing tenants in the Plaza Hotel and that the benefit in increased density to the applicant is balanced with the benefit to the public of a ground floor music library and resource centre.
* * * * *
APPENDIX "A"
Page 1 of 2
Lease Terms
Term
·equal to the equivalent of the life of the development
Area:
·3,116 sq.ft. ground floor storefront space on Richards Street plus three parking stalls
Use
·City undertakings
Subletting, assignment, or mortgaging
·City reserves the right to sublet, assign, mortgage or grant licenses of the premises.
Rent
·nominal rent of $1 per annum
Taxes, if any
·payable by the City
Utilities, strata fee (if any) and common expenses
·payable by the Owner for a period of twenty years from occupancy including all operating expenses incurred in connection with the management, maintenance, operation and provision of the building’s common areas, facilities and services as well as any costs related to the heat, light and electrical power usage for the amenity space.
Fixturing
·The Owner to construct and finish the 3,116 sq.ft. ground floor storefront space to the satisfaction of the City’s Manager of Facilities Sevelopment and Office of Cultural Affairs, at an average quality including drywall, smooth, sealed concrete floor, partitioning for three offices and a board room a small kitchen, ramp or other form of access for wheelchair, standard level of mechanical and electrical systems and fixtures, and a one-space wheelchair accessible washroom.
Termination
·upon demolition or destruction of the buldling
All other terms and conditions required by the Director of Legal Services.
APPENDIX "A"
Page 2 of 2
Sub-Lease Terms
Term
·Twenty years, renewable with Council’s approval
Rent
·Nominal rent of $1 per annum
Taxes, if any
·Payable by the subtenants
Utilities, strata fee (if any) and common expenses
·To be paid by the Owner as per the Head Lease. Payable by the Subtenants after the first 20 year term, if renewed.
Fund raising obligations
·Sub-tenants to undertake a fund raising drive commencing in the first month of occupancy and contributing annually, to create an operating endowment fund sufficient to pay the utilities, strata fees (if any) and common expenses at the end of the first twenty year term.
Covenants of the subtenant re: operation
·to operate a music library and resource centre, open to the public, to the satisfaction of the City.
All other terms and conditions required by the Director of Legal Services.
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