ADMINISTRATIVE REPORT

Date: July 22, 1998

Author/Local: Rick Gates/6036

CC File No. 2005

TO:	Standing Committee of City Services and Budgets
FROM:	Director of Community Services, Social Planning Department
SUBJECT:	Capital Grant to Complete Construction of the new Collingwood Neighbourhood Safety Office

RECOMMENDATION

THAT Council approve a Capital Grant of $38,177 to the Joyce Station Area Planning Association to be used to complete the construction of a new office space for the Collingwood Neighbourhood Safety Office, on the condition that budgeted casino revenues owed to this organization, to a maximum of $15,000, will be used to pay down the grant, if and when these funds are released by the Province; source of funds is the City-owned Social and Cultural Facilities account in the 1998 Capital Budget.

GENERAL MANAGER’S COMMENTS

The General Manager of Community Services submits the foregoing for Council’s CONSIDERATION.

COUNCIL POLICY

The rezoning of 5104-56 Joyce Street, approved in October, 1996 was conditional on the developer (Greystone Properties) agreeing to turn over to the City, free of charge, 1500 square feet of finished office space to be used for a community Crime Prevention Office. Occupancy of the remainder of the project is not permitted until this condition has been met.

On July 23, 1996 City Council adopted a strategy for funding community safety offices that included a commitment that the City would encourage and assist in negotiating rent-free space in City facilities such as community centres, and libraries.

Approval of grants requires eight affirmative votes.

PURPOSE

This report responds to a request from the Joyce Station Area Planning Association for funding assistance to ensure that finishing of a new office space for a community safety office can be completed.

BACKGROUND

The property at the southwest corner of Joyce and Vanness was not included in the original Collingwood Village rezoning as the developer, Greystone Properties, did not own this property at the time. Then in late 1995, Greystone did acquire ownership and submitted a proposal for a rezoning that would be in keeping with the adjacent projects. One of the conditions on Council’s approval of this rezoning was that Greystone turn over to the City, free of charge, 1500 square feet of finished office space to be used for a community Crime Prevention Office.

Prior to enactment of the rezoning, an agreement was reached between the City and Greystone that specified exactly what type of space and level of finish would have to be provided. Greystone committed to build the base building plus up to $40,000 worth of tenant improvements. The agreement also states that any costs incurred to meet the City’s requirements, which are spelled out in the agreement, which exceed the amount provided by Greystone "shall be the responsibility of the City".

The costs for finishing off the community space have now been finalized. To meet the absolute minimum finishing requirements set by the City will cost $38,177 more than is available. (see the budget attached as Appendix A).

DISCUSSION

When this request first came in, there was considerable concern that providing funding to this group could set a very costly precedent as the other community safety offices heard of it. However, a careful review of the facts showed that this is a unique situation because:

- the provision of the office space arose out of a site specific rezoning; and

-the agreement to provide the space limited the commitment of the developer to a set figure, and specified that the City was responsible for costs in excess of that figure;

- the space becomes City-owned, to be used initially as a safety office. If community needs change, or different models of community policing are adopted, this space will become available for whatever other use the City deems to be appropriate;

- the very short time frame available because of the restrictions placed on the developer make community fund raising impossible.

When the 1997-1999 Capital Plan was adopted, it included a budget for City-owned social and cultural facilities. It was anticipated that this funding would be used to renovate, repair or build facilities such as daycares, neighbourhood houses, theatres, galleries, etc. This community safety office could easily be considered to be a similar type of facility.

The Joyce Station Area Planning Association, which will be responsible for the operation of the Safety Office, have tried to raise the shortfall, but to no avail. They ran a casino late last year, but the Province placed a hold on all casino proceeds until a number of legal situations were dealt with. $15,000 of the casino revenue was budgeted for capital improvements; any revenue in excess of this amount is required for operating costs. This group is prepared to use the budgeted casino funds to help pay for the completion of the office space. This can be arranged by giving them a grant, and then requiring them to pay back part of it with the casino proceeds.

The Province also has a number of capital funding programs that could normally be accessed for projects like this, but they have also placed a hold on all of them.

CONCLUSION

$38,177 is needed to complete the construction of an office space that will be turned over to the City, free of charge, to be used for the Collingwood Neighbourhood Safety Office. The community supported the rezoning that resulted in this project on the understanding that it would get a new community safety office. The City agreed with the developer to pick any additional costs incurred in meeting the City’s requirements for this space. Given the community’s expectations and the need to prevent unnecessary delays for the developer who has met all of his obligations, the City should do its part by providing the funding needed to complete this project.

APPENDIX A

Collingwood Neighbourhood Safety Office

CENTRO SITE

Base Building costs and shortfall

DEBITS

Base Building costs to Greystone

$75.00/sq.ft.bld+$36.50 /sq.ft.parking=1500 square feet X $11.50=

Tenant improvements

Low tender-Total Plan

Contingency

Less Ceilings -Greystone

Soft Costs

Floor Tiles

Security System

TOTAL COSTS.

CREDITS

Base Bldg. Greystone Properties

Soft Costs

Two parking stalls reduction in Centro

Greystone contribution

TOTAL CREDITS

TOTAL SHORTFALL

$159,500.00

$77,658.00

$5,000.00

- $1,790.00

$10,475.00

$1,309.00

$6,000.00

$258,152.00

$159,500.00

$10,475.00

$10,000.00

$40,000.00

$219,975.00

- $38,177.00

GREYSTONE HAS ALSO CONTRIBUTED $35,000.00 ENDOWMENT TO PAY

STRATA FEES AND UTILITIES FOR THE NEXT TEN YEARS.

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(c) 1998 City of Vancouver