ADMINISTRATIVE REPORT

Date: March 26, 1998

Author/Local: BPringle/7781

CC File No. 1755

TO:	Vancouver City Council
FROM:	Director of Community Planning, in consultation with Director of Legal Services General Manager of Engineering Services General Manager of Parks and Recreation Manager of Real Estate Services Director of Finance
SUBJECT:	Amending the Burrard Slopes Development Cost Levy (DCL) By-law

RECOMMENDATIONS

A.THAT Council approve the amendment of the Burrard Slopes DCL By-law to use DCL funds to finance improving park land and constructing, altering, expanding or replacing highway facilities.

B.THAT Council approve the redistribution of the 80.2 percent DCL allocation for providing park land to 71.7 percent for providing and improving park land, and 8.5 percent for constructing, altering, expanding or replacing highway facilities.

GENERAL MANAGER’S COMMENTS

The General Manager of Community Services RECOMMENDS approval of A and B.

COUNCIL POLICY

In April 1994, Council adopted the Development Cost Levy (DCL) By-law for the Burrard Slopes Neighbourhood.

In July 1994, Council adopted the strategy for spending the proceeds of the DCL in Burrard Slopes.

PURPOSE

The purpose of this report is to obtain Council approval to amend the Burrard Slopes DCL By-law to use DCL funds to finance improving parks and constructing, altering, expanding or replacing highway facilities.

BACKGROUND

DCLs are one mechanism the City of Vancouver uses to fund public benefits required as a result of new development. Generally, DCLs are established in areas where the City has initiated a rezoning or planning program. Currently, there are five DCL areas: Downtown South (1992), Burrard Slopes (1994), Arbutus Neighbourhood (1995), Dundas/Wall Area (1996), and Oakridge/Langara (1996). DCLs can be used to fund replacement housing, parks, day care facilities and sewer, water, drainage and highway projects. They are established through Council adoption of a DCL By-law specific to each area. The By-law sets out the boundaries, rates, types of projects to be funded and the proportion of funds to be devoted to each type of project.

Burrard Slopes includes the area between Burrard and Hemlock Streets from 1st Avenue and the False Creek rail line to Broadway. In response to the increasing amount of residential development in the area, the Planning Department undertook a planning study in 1994. At the time, estimates projected that Burrard Slopes would be home to 5,000 new residents in the future. The public needs of the residents included the provision of parks, day care facilities and replacement housing. Of these needs, the provision of parks was identified as the most critical.

The Burrard Slopes DCL By-law and Spending Strategy were adopted to respond to these public needs. The total DCL funds to be collected are estimated at $18.4 million. Of these funds; 80.2 percent ($14.75 million) is allocated for park land, 16.1 percent ($2,955,000) for day care facilities, and 3.7 percent ($690,000) for replacement housing.

When the By-law and Spending Strategy were adopted, DCL funds for parks could only be used to provide park land, and the costs related to park improvement were funded through the Capital Plan. Subsequently, the Vancouver Charter was amended to permit the use of DCL funds to both provide and improve park land. The two DCL By-laws adopted since the Charter amendment, Dundas/Wall Area and Oakrid ge/Langara, incorporated this change. On March 24, 1998, Council approved amending the Downtown South DCL By-law to permit the improvement of park land.

On July 29, 1997, Council, In Camera, authorized the Deputy City Engineer to negotiate with the developers of the Pacific Press site, Bosa Development Corporation, to achieve a number of public objectives. These included using a portion of the Pacific Press site adjacent to the east Bridge loop for public park and road, removing the existing Bridge on-ramp and creating a new 5th Avenue between Hemlock and Granville Streets, amalgamating the portion of the Pacific Press site with the east Bridge loop, and redeveloping the expanded loop to incorporate active and passive recreation uses. In addition, Council instructed staff to report on amending the Burrard Slopes DCL By-law to allow the use of DCL funds for park and infrastructure improvement, and the Director of Legal Services to prepare the necessary amendment.

DISCUSSION

Providing parks is the most critical public need in Burrard Slopes. Under the existing DCL By-law, over 80 percent of the funds are targeted towards providing park land. Since the establishment of the original DCL By-law, broader Charter powers were given to the City. Amending the By-law to reflect the broader Charter powers allows the City greater flexibility to acquire and develop usable park space. Please note only funds collected after the By-law amendment can be used for the broader range of projects.

The By-law amendment is required for the City to use DCL funds to achieve the comprehensive redevelopment of the east B ridge loop. Through this redevelopment, the new 5th Avenue between Hemlock and Granville Streets will be created, and the east Bridge loop will be expanded from approximately 0.8 ha (2 acres) to 1.2 ha (3 acres). The resulting park/open space will accommodate active and passive recreation activities and provide safe, convenient pedestrian connections to Granville Island, Burrard Slopes and Fairview Slopes.

Under the amended By-law, the $14.75 million allocated for providing and improving parks is redistributed: $13.20 million is applied to parks; and $1.55 million is applied to highway facilities. The DCL rates, the allocations for day care facilities and replacement housing, and the total amount collected do not change.

The highway facilities include: removing the existing Bridge on-ramp; creating a new 5th Avenue between Hemlock and Granville Streets; relocating the existing trolley wires; and any affected underground utilities. These street works improvements will be undertaken in conjunction with the redevelopment of the Pacific Press site.

DCL UPDATE FOR THE PACIFIC PRESS REDEVELOPMENT

The current redevelopment of the Pacific Press site will require Bosa Development Corporation, developer, to pay DCL funds of approximately $3.2 million: $1.4 million for the north parcel (Phase 1) and $1.8 million for the south parcel (Phase 2).

Under the existing (and the proposed amendment of) Burrard Slopes DCL By-law, 80.2 percent ($2.56 million) of this $3.2 million will be allocated for park and infrastructure improvements. The remaining 19.8 percent ($0.64 million) will be allocated to day care and replacement housing.

The estimated cost for the previously mentioned infrastructure works and park improvements for this development is $2.93 million, which is $370,000 more than the $2.56 million DCL allocated for these works. Despite this projected shortfall, Bosa Development Corporation has agreed to enter into a lump sum agreement of $2.56 million to do these works.

In light of the foregoing, all of the $1.4 million DCL for the north parcel (Phase 1) will be used to fund all of the infrastructure works and some park improvements. The balance of works, park purchase, day care and replacement housing will be funded from the $1.8 million DCL of the south parcel (Phase 2).

CONCLUSION

The amended By-law provides the City with greater flexibility to use the DCL funds as, they become available, to provide usable parks in the Burrard Slopes Neighbourhood. In particular, the new powers enable the City to expand and improve the east Bridge loop, and create the first usable park/open space in the area.

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(c) 1998 City of Vancouver