ADMINISTRATIVE REPORT

Date: February 23, 1998

Author/Local: P. Rutgers/8463

CC File No. 8106

TO:	Vancouver City Council
FROM:	General Manager of Parks and Recreation, in consultation with the Director of Central Area Planning, Director of Community Services, Director of Finance, Manager, Housing Centre and Director of Legal Services
SUBJECT:	Downtown South Development Cost Levy Bylaw

RECOMMENDATION

A.THAT Council approves a change in the Downtown South Development Cost Levy Bylaw to permit the use of levies to include the improvement of parkland.

B.THAT Council instruct the Director of Legal Services to bring forward the necessary amendments to the Downtown South Development Cost Levy Bylaw No. 6924.

C.THAT Council eliminate the 5% allocation to street trees to conform to legislation, and reallocate Downtown South DCL proceeds, resulting in the following distribution: Replacement Housing 47.25%, Parks 45.35 % and Daycare 7.40%

CITY MANAGER'S COMMENTS

The recommendations of this report are appropriate, and the City Manager RECOMMENDS approval of them. However, the allocation of DCL funds independent of other capital planning issues is undesirable in the longer term. Initial work on the 2000-2002 capital plan will begin shortly. Work by departments relative to funding the facilities required for growth suggests that borrowing, development cost levies (DCL), community amenity contributions (CAC) and revenue funding for capital works should be considered in an integrated manner.

Accordingly, the City Manager further RECOMMENDS:

D.THAT the City Manager and General Manager of Corporate Services be directed to consider all sources of funding for capital works in developing proposals for the next capital plan and present an integrated plan to Council consideration.

COUNCIL POLICY

In 1992, City Council approved the Downtown South Development Cost Levy Bylaw No. 6924 to provide for the collection of Development Cost Levies in the Downtown South and the use of these funds for the provision of replacement housing, parkland and the establishment of daycare facilities.

PURPOSE

This report requests approval to have the Director of Legal Services prepare a bylaw amendment to provide for the use of Development Cost Levies for the improvement of parkland in Downtown South. A reallocation of the funding originally earmarked for street trees, is also recommended.

BACKGROUND

When the original bylaw was passed in 1992, the Vancouver Charter did not provide for park improvement, a subsequent Charter amendment provides for this use of proceeds.

In 1991, City Council approved the concept of a Development Cost Levy By law for Downtown South. Council also resolved, "That the levy proceeds be spent in proportions determined by Council at this time as follows: 45% replacement housing, 43% parks, 5% trees, 7% daycare."

At the time, Corporation Counsel was unsure whether street tree planting could be included. Counsel later determined that this was not the case and when the actual bylaw was adopted in 1992, street trees were not included. However, the allocation of funds, which is determined by Council resolution rather than by bylaw, has not been changed. The reallocation of that portion of the DCL proceeds originally devoted to street trees should now be revised.

DISCUSSION

Park Development

A Vancouver Charter amendment in 1995 provides for City bylaws to include a park improvement as a use of the funds for park purposes. Section 523 D(1)(b) now states that levies can be used for "providing and improving parkland."

Since the amendment to the Vancouver Charter, development cost levy bylaws have made provision for parkland improvement to be paid from development cost levy proceeds. This report seeks Council approval of an amendment to the Downtown South Development Cost Levy Bylaw to extend these additional uses to the development cost levy proceeds from this area.

It is noted that only funds collected after the passage of this bylaw amendment can be used for the broader range of purposes proposed in the amendment.

Approval of this proposed amendment could impact on the City's ability to purchase sufficient properties in the Downtown South area to meet the needs originally identified, when the bylaw was approved. However, if the bylaw amendment is not approved, funding for development of the Downtown South parkland purchased with development cost levy proceeds will have to be allocated from City or Park Board capital plans. The projected increased allocation of funding to parks (see below) by 2.5% offsets some of the above concerns.

The amendment will also provide some consistency between the way parkland is developed from development cost levy proceeds and similar developments provided directly by developers of major projects in the City, such as Concord Pacific and among the development cost levy areas in the City.

Street Tree DCL Fund Allocation

On June 27, 1991, City Council approved spending Downtown South DCL funds, which included 5% for street trees (see also above).

Staff reviewed a number of ways to distribute the street tree allocation amongst the replacement housing, parks and daycare categories. In the end it was agreed that the most equitable approach which recognizes the importance of each of these items was to distribute the 5% on a proportional basis as follows:

- Replacement Housing 2.35%
- Parks 2.25%
- Daycare .40%
Total 5.00%

The new DCL allocations recommended for Council adoption therefore become:

- Replacement Housing47.25%
- Parks 45.35%
- Daycare 7.40%

CONCLUSION

The proposed bylaw amendment brings the Downtown South Development Levy Bylaw in line with other development cost levy bylaws and the street tree portion of the DCL proceeds needs to be reallocated, since the enabling legislation does not permit DCL proceeds to be spent on street trees.

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(c) 1998 City of Vancouver