ADMINISTRATIVE REPORT

Date: May 14, 1998

Author/Local: BPringle/7781

CC File No. 1755

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Director of Community Planning, in consultation with General Manager of Parks & Recreation, Manager of Real Estate Services, Director of Finance
SUBJECT:	Spending the Pacific Press Site Development Cost Levy (DCL) Funds

RECOMMENDATION

THAT Council approve the spending of some of the Pacific Press site DCL funds as follows:

(a)$1,064,000.00 from the park allocation for the purchase of a portion of the Pacific Press site for park use, and $157,000.00 for the design and development of this site; and

(b)$1,339,000.00 from the highway allocation for the design and development of the new 5th Avenue, and other related infrastructure work.

GENERAL MANAGER’S COMMENTS

The General Manager of Community Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

In June 1993, Council adopted the Burrard Slopes IC Districts Interim Policies and C-3A Guidelines.

In April 1994, Council adopted a plan for Greenway and Open Space Opportunities in Burrard Slopes.

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

In July 1994, Council adopted a strategy for Spending the Proceeds of the DCL in Burrard Slopes.

PURPOSE

The purpose of this report is to obtain Council approval to spend a portion of the DCL funds collected from the redevelopment of the Pacific Press site to purchase and improve park land adjacent to the site and construct a new 5th Avenue between Hemlock and Granville Streets.

BACKGROUND

The Granville Bridge loops were identified as important public open space in all the 1993 to 1994 Burrard Slopes policy documents, including the Council-adopted Greenway and Open Space Opportunities which presents a strategy to improve the usability of the loops. A summary of the relevant Policies is presented in Appendix A.

Bosa Development Corporation Ltd. (Bosa Ltd.) has applied under the existing C-3A Zoning and Guidelines to redevelop the Pacific Press site. The site, located between Granville and Hemlock Streets, is made up of two parcels: the south parcel between 6th and 7th Avenues; and the north parcel between the Granville Bridge on-ramp and 6th Avenue. On June 30, 1997, the Development Permit Board approved in-principle the preliminary development applications for both parcels. The applications are based on the provision of retail uses at street level on Granville Street, with the remainder of both parcels developed for residential use (approximately 570 units are proposed). The proposed density is 2.6 FSR on the north and 3.0 FSR on the south parcel. The maximum density allowed in this area is 3.0 FSR if City objectives and guidelines are met. Bosa Ltd. intends to proceed with the project in two phases, the north parcel will be phase 1 and the south parcel phase 2.

One of the City objectives for the area is the provision of public open space. The proposed public open space includes mid-block pedestrian connections through both parcels, and the provision of approximately 3 290 m² (35,400 sq. ft.) of the north parcel for public park and road use. Real Estate Services estimates the value of this land is up to $2.4 million.

On July 29, 1997, Council authorized the Deputy City Engineer to negotiate with Bosa Ltd., 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, realigning the existing pedestrian tunnel under Granville Street, amalgamating the portion of the Pacific Press site with the east Bridge loop, redeveloping the expanded loop to incorporate active and passive recreation uses, and incorporating a city owned lot and portion of the lane into

the proposed development (see Figure 1). Council also instructed staff to report on amending the Burrard Slopes DCL By-law to allow the use of DCL funds for park and infrastructure improvements, and the Director of Legal Services to prepare the necessary amendment.

FIGURE 1: PUBLIC PARK AND OPEN SPACE POTENTIAL

Note: Electronic copy of Figure 1 not available - on file in the City Clerk's Office.

On January 26, 1998, the Development Permit Board approved Bosa Ltd.’s application to redevelop the north parcel of the Pacific Press site, under the existing C-3A Zoning and Guidelines.

On March 24, 1998, Council approved the sale of the City-owned lot (Lot 4, Block 271, District Lot 526, Plan 590) and the lane located adjacent to the Pacific Press site to Bosa Ltd.

On April 7, 1998, Council approved amending the Burrard Slopes DCL By-law to use DCL funds to finance improving parks and constructing highways, and the redistribution of the DCL allocations. Through this By-law amendment DCL funds can be used to achieve the comprehensive redevelopment of the east Bridge loop. Please refer to Appendix A for a summary of the provisions of the original and amended By-law.

DISCUSSION

The redevelopment of the Pacific Press site provides the opportunity to redevelop the east Bridge loop and create much needed park/open space in the Burrard Slopes neighbourhood. The strategy for maximizing the public park/open space potential of the east Bridge loop is based on:

·using 3 290 m² (35,400 sq. ft.) of the Pacific Press site adjacent to the east Bridge loop for public park and road;

·removing the existing Bridge on-ramp, creating a new 5th Avenue between Hemlock and Granville Streets, and relocating the existing trolley wires, any affected underground utilities, and the pedestrian tunnel entrance; and

·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. The original east Bridge loop would continue to be designated as public open space and held in the Property Endowment Fund.

As part of the redevelopment of the Pacific Press site, Bosa Ltd. will pay a Development Cost Levy (DCLs) of approximately $3.2 million: $1.4 million for the north parcel (phase 1); and $1.8 million for the south parcel (phase 2). Of the $3.2 million in DCLs, 80.2 percent ($2.56 million) will be allocated to park acquisition and improvement, and highway construction. The remaining 19.8 percent ($0.64 million) will be allocated to daycare and replacement housing.

It should be noted that the estimated cost for the park and highway works required to create the east Bridge loop park/open space is $2.93 million, which is $370,000 more than the $2.56 million in DCLs allocated for these works. However, Bosa Ltd. has agreed to enter into a lump sum agreement of $2.56 million to do these works.

The details of the proposed DCL spending for the development of the east Bridge loop park/open spaces incorporated into the legal agreements are:

·using $1,339,000.00 from the DCL funds (phase 1) allocated to highway for the construction of the new 5th Avenue including removing the existing Bridge on-ramp, creating a new 5th Avenue between Hemlock and Granville Streets, realigning the pedestrian tunnel under Granville Street, and relocating the existing trolley wires and any affected underground utilities;

·using $1,064,000.00 from the DCL funds (phase 2) allocated to parks for the purchase of the portion of the Pacific Press site identified for park. In the opinion of the Manager of Real Estate Services the proposed purchase price is well below the estimated market value;

·using $157,000.00 from the DCL funds (phase 1) allocated to parks for the design and development of the portion of the Pacific Press site identified as park; and

·requiring the developer, through legal agreements, to pay $1,064,000.00 for the design and redevelopment of the original east Bridge loop and part of the Bridge on-ramp into usable open space.

Through these actions, the east Bridge loop is expanded from approximately 0.8 ha (2 acres) to 1.2 ha (3 acres). The resulting park/open space accommodates active and passive recreation activities and provides safe, convenient pedestrian connections to the open space, Granville Island and the Burrard Slopes and Fairview Slopes areas.

A park planning public process was undertaken. Two workshops were held on December 4, 1997 and February 19, 1998. Public notification of the workshops were distributed between Broadway and False Creek, Burrard and Oak Streets. In addition, advertisements were placed in the Vancouver Courier. Comments from the public have generally been favourable. The Urban Design Panel also reviewed the proposed park plan and supported it unanimously.

CONCLUSION

Achieving the public objectives for the City-owned land adjacent to the Pacific Press site increases the quantity and quality of public park and open space in Burrard Slopes.

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BURRARD SLOPES POLICY - OVERVIEW

1. The Burrard Slopes IC Districts Interim Policies and C-3A Guidelines

The Interim Policies and Guidelines were adopted to encourage the development of residential uses, and address livability, integration with commercial uses, and streetscape concerns in this mixed-use area. In both documents the Granville Bridge loops were identified as important public open spaces.

2. The Burrard Slopes DCL By-law and Spending Strategy

The DCL By-law was adopted to address the park, daycare and replacement housing requirements of the projected 5,000 new area residents. The DCL rate was set at $53.82/m² ($5.00/sq. ft.).

The DCL spending strategy was based on the provision of 4.9 ha (12 acres) of park land, including:

·the existing Granville Bridge loops - 1.8 ha (4.5 acres). (At the time the Granville Bridge loops were thought to be Capital Assets and not held in the Property Endowment Fund.);

·the land acquired from future major rezonings - 1.5 ha (3.8 acres); and

·the land requiring purchase - 1.49 ha (3.69 acres).

The total DCL funds to be collected were estimated at $18.4 million. Of these funds 80.2 percent ($14.75 million) was allocated for park land acquisition, 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 parks. On April 7, 1998, Council approved amending the Burrard Slopes DCL By-law to use DCL funds to finance park improvement and highway construction. Council also approved redistribution of the 80.2 percent ($14.75 million) allocation for parks to 71.7 percent ($13.2 million) for park provision and improvement and 8.5 percent ($1.55 million) for highway construction. Under the amended By-law the DCL rates, the allocations for day care facilities and replacement housing, and the total amount to be collected did not change.

APPENDIX A

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3. The Greenways and Open Space Opportunities in Burrard Slopes

The Opportunities Report was adopted to address the lack of park and public open space in Burrard Slopes. In this report, the Granville Bridge loops were identified as important open space. Staff noted that the existing traffic and lack of safe access reduced the suitability of the Bridge loops for neighbourhood park use. A strategy to improve their suitability was identified and included:

·the installation of a signalized crossing at 4th Avenue and Anderson Street (completed);

·the development of sidewalks in and around the Bridge loops to improve access (completed);

·the reconfiguration of the Bridge ramps to improve access and expand usable open space (see attached illustration). It was noted at the time that this aspect of the strategy was dependent on the redevelopment of the Pacific Press site and the co-operation of the owners of that site; and

·the internal redesign of the Bridge loops to intensify use including the provision of active and passive recreation.

APPENDIX A

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BURRARD SLOPES GREENWAYS AND OPEN SPACE PLAN

Note: Electronic copy of figure not available - on file in the City Clerk's Office.

(c) 1998 City of Vancouver