ADMINISTRATIVE REPORT

Date: May 12, 1998

Author/Local:M.G.Thomson/7329

CC File No: 5104

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services, in consultation with the Manager of Real Estate Services
SUBJECT:	Proposed Lease of a Portion of the Lane North of Broadway, West from Arbutus Street

RECOMMENDATION

A.THAT Council close, stop-up and lease to Shell Canada Products Limited, that portion of the lane north of Broadway, west from Arbutus Street, shown within the heavy outline on the plan attached hereto as Appendix A, subject to the following conditions:

i.The term of the lease to be five years, commencing January 1, 1996, with a three month notice of cancellation, by either party.

ii.The lease to contain three-five year options, each option to be on the same terms and conditions, except rent which will be reviewed prior to the commencement of each five year period.

iii.The annual rental (inclusive of a payment in lieu of taxes) to be $6,800 per year for the first five years.

iv.The lease area to be used as part of the ingress and egress to a service station on Lot 11, except the North 10 feet now lane and the associated parking on Lot 10, except the South 10 feet now lane, both Block 324, District Lot 526, Plan 590 and each shown hatched on the plan attached hereto as Appendix A. There are to be no buildings or structures to be placed on the lease area.

v.The Lessee is to maintain the lease area, including responsibility for drainage, in a manner satisfactory to the General Manager of Engineering Services.

vi.Upon expiry or termination of the lease, the Lessee is to be responsible for restoration of the lease area to the satisfaction of the General Manager of Engineering Services.

vii.The City and utility companies are to have the right of entry, at any time, to the lease area for the purpose of installing, maintaining and repairing public utilities.

viii.The Lessee shall be responsible for, and indemnify the City for, any environmental contamination existing on the lease area as of the commencement date by the lease, as well as any environmental contamination occurring during the term of the lease.

ix.The lease agreement to contain such other terms and conditions to the satisfaction of the Director of Legal Services, the General Manager of Engineering Services and the Manager of Real Estate Services.

It should be noted that no legal right or obligation is created and none shall arise until execution of the lease.

COUNCIL POLICY

The authority for closing and disposing of portions of streets and lanes is set out in the Vancouver Charter.

PURPOSE

The purpose of this report is to seek Council authority to lease portions of the lane north of Broadway, west from Arbutus Street.

BACKGROUND

There are existing titles to the subject lease area in the name of the City of Vancouver. The properties are known as the South 10 feet of Lot 10 and the North 10 feet of Lot 11, both of Block 324, District Lot 526, Plan 590 and have each been established as lane by Council Resolutions filed in the Land Title Office as DF 32439 and 523993L respectively.

In 1966, the city entered into a 30 year lease with Shell Canada Limited for the North 10 feet of Lots 11 to 13, Block 324, D.L. 526, Plan 590. Upon expiry of the lease on January 1, 1996, it was determined that the tenant was no longer using the North 10 feet of Lots 12 and 13, but was using the South 10 feet of Lot 10 and the North 10 feet of Lot 11.

The subject area is in use as part of the ingress and egress to a service station located on, among others, Lot 11 and the associated parking lot on Lot 10. A new lease is required.

DISCUSSION

While the general terms of the new lease were negotiated in 1996, the matter has been delayed in reporting to Council. The existing service station is the subject of documented environmental problems. City staff from the Environmental Protection Branch are involved in the solution to the environmental problems. The tenant shall be made liable in the lease for any environmental contamination existing on the site, as of the date of the lease, as it seems reasonable to assume that any contamination existing on the site was placed there by the tenant.

The City has retained a three month cancellation clause, should the subject area be required for any municipal purposes. The subject area is not required for municipal purposes at this time.

CONCLUSION

The proposed lease will provide for the indemnification of the City for environmental contamination. The future use of the lease area will be assured through the cancellation provisions in the lease. It is therefore recommended that Council approve the lease, subject to the conditions set out in this report.

ELECTRONIC COPY OF APPENDIX A IS NOT AVAILABLE AND IS ON FILE IN THE CITY CLERK'S OFFICE.

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(c) 1998 City of Vancouver