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ADMINISTRATIVE REPORT Date: March 11, 1998
Author/Local: Kolvane Yuh/7125
A.THAT Council approve the sale of City-owned Lot 4, except part in Plan 14045, Block 271, D.L. 526, Plan 590 (P.I.D. 015-219-534) heavy- outlined in Appendix "A" and about 1.27 square feet of Lot 3, Block 271, D.L. 526, Plan 590 (P.I.D. 015-219-526) shown shaded in Appendix "C" to the abutting owner, for $150,000 plus any applicable GST, on the terms and conditions contained in an agreement of sale and purchase dated February 18, 1998 amended March 10, 1998 between Bosa Development Corporation and the City.
B.THAT Council authorize the Director of Legal Services to sign, on behalf of the City, a subdivision plan dedicating as road the City-owned Lots 1, 2 and 3, Block 271, D.L. 526, Plan 590 (P.I.D. 015-219-500, 015-219,518 and 015-219-526) and that portion of Lot B, except part in Plan 14045, Block 271, D.L. 526, Plan 9031 (P.I.D. 009-805-974), shown hatched in Appendix "A", except about 1.27 square feet of the said Lot 3 shown shaded in Appendix "C", all to the satisfaction of the Approving Officer.
C.THAT Council approve the extension of the statutory right-of-way agreement registered under No. 305803-M in the Vancouver/New Westminster Land Title Office, over a 40 feet wide area on the City-owned Lot B, except part in Plan 14045, Block 271, D.L. 526, Plan 9031 (P.I.D. 009-805-974), generally shown cross-hatched in Appendix "A", to the satisfaction of the City Engineer and the Director of Legal Services.
The General Manager of Corporate Services RECOMMENDS approval of A, B and C.
The Vancouver Charter section 190(B) authorizes Council to dispose of City-owned property deemed to be surplus to the City's needs.
This report requests Council's approval to sell the City-owned Lot 4 to the adjoining property owner, i.e. the Pacific Press site for consolidation to form a rectangular block as contemplated under Development Permit Application number 402272, approved by the Development Permit Board on January 26, 1998. Council’s approval is also requested for the dedication of Lots 1, 2 and 3, and a portion of Remainder Lot B, all of Block 271 at Granville Street and 5th Avenue, all Property Endowment Fund properties, for a new road (5th Avenue) required due to the site consolidation. Lastly, Council approval is sought to extend a statutory right-of-way over the mentioned City (PEF) owned Remainder Lot B to cover existing City and other utilities.
As part of the development of the Pacific Press site, it was considered desirable from an urban design point of view, and so approved by the DP Board, to incorporate the City-owned Lot 4 and a portion of the lane immediately east of Lot 4 to form a rectangular development site, as well as re-alignment of 5th Avenue. This report speaks to Lot 4 and other requirements on City (PEF) properties arising out of the site consolidation. The stop-up and transfer of part of a lane situated immediately east of Lot 4 is the subject of a companion Council report by City Engineering.
On July 29, 1997 Council, In Camera, authorized the Deputy City Engineer to negotiate with Bosa Development to achieve the public objectives including the consolidation of the City-owned Lot 4 and the portion of lane and 5th Avenue re-alignment.
Following negotiation, Bosa Development, the purchaser of the Pacific Press site, has agreed to purchase the City-owned Lot 4 for $150,000 under the terms and conditions contained in an agreement of sale and purchase dated February 18, 1998 satisfactory to the Director of Legal Services and the Manager of Real Estate. The sale is conditional upon Council’s approval.
Under the agreement of sale and purchase, Bosa Development’s obligations include site consolidation to the satisfaction of the Approving Officer and the City, the transfer of the "horn" area of the present Pacific Press site to the City, the grant to the City a satisfactory statutory right-of-way for the existing pedestrian tunnel entrances and walkways, and extension of an existing statutory right-of-way for utilities over the portion of lane adjacent to Lot 4. A copy of the agreement of sale and purchase is filed with the City Clerk for reference.
Furthermore under the agreement, Bosa Development has agreed to accept all liability, including site contamination matters, arising from purchasing the City land on an as-is basis.
On the selling price, City policy and Real Estate Services’ practice is to charge a price representing the assembled value under highest and best use, in selling City-owned properties and lanes.
However, in this case, the City-owned Lot 4 is situated on the edge of the proposed site and does not contribute to the total FSR approved for the consolidated site. Bosa has taken the position that Lot 4 should have been included as partial payment for their large 17,400 square foot park dedication. It was not included at that time as Bosa was under the impression Lot 4 would be transferred at a minimal cost, as it was not required for the proposed development or FSR, but was suggested for inclusion by the Planning Department for a better urban design.
If the current opportunity of consolidation with the Pacific Press site is not taken, Lot 4, a narrow site 26 feet wide, on its own will become an "orphan" site, being cut off on the north by the proposed new alignment of 5th Avenue and on the other sides by the Pacific Press development. As a single site, the maximum development potential under its current C3-A Zoning cannot be realized, as it will not be feasible to provide adequate underground parking.
The Manager of Real Estate Services recognizes the uniqueness of the situation, and has negotiated a price of $150,000 for Lot 4 (net 2,962 sq. ft. at $50 per sq. ft.) that reflects its value as a stand alone lot of approximately 1 FSR. In addition, there is an indication there is soil contamination on the subject lot and Bosa has agreed to purchase the lot and take responsibility for any soil contamination.
The Manager of Real Estate Services considers it fair and reasonable and in the interest of the City in this circumstance to make an exception from the City policy of charging full assembled land value in selling City lands. Recognizing the developer will have some benefit in consolidating Lot 4 and the portion of lane, in terms of better urban design leading to somewhat improved marketing of the project by having some floor area on Lot 4 and its corner exposure, the Manager of Real Estate Services is of the opinion that $150,000 is a fair and reasonable selling price for the land, on an as-is where-is basis, with the developer taking responsibility of remediation of any soils contamination in the land.
On the dedication of Lots 1, 2 and 3 and a part of Remainder Lot B, caused by re-alignment of 5th Avenue, the land is part of the City’s PEF requiring a fair and reasonable return. However, the sketch provided in Appendix "B" will show that the land is already encumbered by road and public sidewalk, and the 5th Avenue realignment merely rearranges the layout of the encumbrance. Therefore, the Manager of Real Estate Services can support the dedication in this circumstances.
On the extension of a statutory right-of-way agreement over the City (PEF) owned Remainder Lot B for City and other utilities, the utilities are City sanitary main and BC Gas gas main which have been in place for many years. Extending the right-of-way is a housekeeping step which is required by the Approving Officer for the site consolidation. Therefore, the Manager of Real Estate Services can support the grant of the right-of-way in this case.
APPENDICES A-C (maps) ON FILE IN THE OFFICE OF THE CITY CLERK
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(c) 1998 City of Vancouver
