ADMINISTRATIVE REPORT

Date: October 1, 1998
Author/Local: AHigginson/7556

RTS-97

CC File No. 5311

TO:	Vancouver City Council
FROM:	Subdivision and Strata Title Coordinator
SUBJECT:	Strata Title Conversion - 679 East Georgia Street

RECOMMENDATION

THAT the application to convert the previously-occupied building at 679 East Georgia Street (Lot 1, Block 84, D.L. 196, Plan LMP37445) to strata title ownership be approved in principle, but that pursuant to Section 9(1) of the Condominium Act, the Certificate of Approval (Form 10) shall not be issued unless the following conditions have been met within one year of the date of this approval:

a) Completion of all work in accordance with the approved plans and permits, and issuance of an Occupancy Permit, all at no cost to the City and to the satisfaction of the City Building Inspector, in order that this previously occupied building substantially complies with all relevant by-laws; and

b) Execution of a covenant pursuant to Section 219 of the Land Title Act, to be registered concurrently with the strata plan, prepared to the satisfaction of the Director of Legal Services, to serve as notice on title regarding the uncertainty of site redevelopment.

GENERAL MANAGER'S COMMENTS

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

COUNCIL POLICY

Council Policy is reflected in the City's Strata Title and Cooperative Conversion Guidelines, which outline factors which Council will consider in reviewing applications for converting previously-occupied buildings to strata title or cooperative ownership.

PURPOSE

Council approval is required for an application to convert the previously-occupied building at 679 East Georgia Street (Lot 1, Block 84, D.L. 196, Plan LMP37445) to strata title ownership.

BACKGROUND

The site is zoned RT-3 and is developed with a three-storey, former two-unit, multiple conversion dwelling (MCD) currently undergoing extensive renovations to create three residential units. The MCD is a municipally-designated heritage building, built circa 1900, which is listed as a category "B" building on the Vancouver Heritage Register. The site is also being developed with three new infill one-family dwellings. The location of the site is shown below in Figure 1.

Figure 1

City records indicate that the heritage building has throughout much of its history been in use as a grocery/corner store with residential accommodation above, usually occupied by the proprietor. Since 1976, the building has been tenanted as a two-unit MCD, although there are no records authorizing the alterations or change of use. The applicant, who purchased the site in September 1997, has indicated in a notarized declaration that tenants were given written notice on March 30, 1998, to vacate the building, under the provisions of the Residential Tenancy Act. The building has been vacant since May 31, 1998.

The extensive exterior and interior alterations to the heritage building are being performed pursuant to Development Permit No. DE402662 and Building Permit No. BU408818. The infill dwellings are being constructed pursuant to Building Permit Nos. BU408824, BU408826 and BU408827. Construction on all four buildings is nearing completion.

Council approved the recommendation to designate the building as a Protected Heritage Property on January 22, 1998. In exchange for designation, the Director of Planning permitted increases in floor space ratio, site coverage, and building height in the rear yard; and relaxed the parking and rear yard setback regulations.

The applicant proposes to create a total of six strata lots in the four buildings. Pursuant to Section 9 of the Condominium Act, Council's approval is required as it relates to the previously-occupied heritage building only.

REDEVELOPMENT OPTIONS

This site, Lot 1, formerly consisted of two 7.620 m (25.00 ft.)-wide parcels, which each had the potential to be developed with only a one-family dwelling under the current provisions of the RT-3 District Schedule. Although consolidated into a larger site, there is some uncertainty as to whether six dwelling units at the existing density could necessarily be redeveloped in the future, should any of these buildings be extensively damaged (more than 60% of value) or destroyed, although the Board of Variance would have jurisdiction.

Unlike a Heritage Revitalization Agreement (HRA), designation of a heritage building does not vary the zoning regulations and property owners do not "secure" the right to redevelop in a non-conforming manner, should the existing development be destroyed.

In 1997, in considering an application to convert a three-unit MCD in the RS-2 Zoning District to strata title ownership, Council opted to approve the strata title conversion subject to a Section 219 Covenant being registered against the title of the property, advising prospective purchasers of the redevelopment uncertainty. Specifically, these individuals may be unaware that should the buildings be either extensively damaged or destroyed, there is no guarantee that the buildings could be rebuilt to create the previously-approved number of dwelling units. It is doubtful that the market is cognizant of the uncertainty of redevelopment in these situations. It is therefore recommended that a similar covenant be registered in this instance.

The owner has advised that he does not want to pursue an HRA at this time, which would preclude the need for a covenant. As he has stated, the future strata corporation may wish to ask Council to approve an HRA to secure their redevelopment potential. If an HRA was approved, the covenant could be discharged from title.

STAFF ANALYSIS

In addition to Planning Department staff, the City Engineer and the City Building Inspector have reviewed this application. As the building has most recently contained only two dwelling units and previously was a commercial enterprise, the Manager of the Housing Centre has not been asked for comment.

The City Engineer reports that there are no dedication or servicing requirements for this site. However, there is an encroachment of stairs, eaves and a portion of the building foundation onto the City street. As a result, the City Engineer advises that registration of a volumetric easement to contain the encroachments will be required prior to the strata plan being registered in the Land Title Office. This requirement will be addressed in a subsequent report to Council from the City Engineer. The City Engineer has indicated support for the volumetric easements.

The City Building Inspector reports that when all work has been completed in accordance with approved plans and permits, and an Occupancy Permit has been issued, the previously-occupied building will substantially comply with all relevant City by-laws.

CONCLUSION

Section 9(3) of the Condominium Act states that Council shall consider, in making a decision to convert a building under Section 9 of the Act, any other matters that, in its opinion, are relevant. The re-use of a heritage building and the extension to the life expectancy of the building, associated with the substantial upgrading that is taking place, is clearly consistent with established Council policy aimed at preserving existing heritage stock. The opportunity for conversion to strata title, despite the uncertainty for redevelopment in the future, provides an additional incentive for developers to pursue renovation and restoration projects.

Based on the foregoing, and on the applicant's compliance with the City's Strata Title and Cooperative Conversion Guidelines, the Subdivision and Strata Title Coordinator supports this application.

* * * * *

(c) 1998 City of Vancouver