ADMINISTRATIVE REPORT

Date: November 24, 1998
Author/Local: Emil Barth/7295
RTS No. 360

CC File No. 6007

TO:	Vancouver City Council
FROM:	The Deputy City Engineer and the Director of Legal Services
SUBJECT:	New Trade and Convention Facilities (Portside) Options to Purchase Lands for Road Purposes

RECOMMENDATION

A. THAT the City exercise:

(i) the Station Viaduct Option to Purchase granted to the City for the Cordova Connector, and registered under numbers BJ231531 to BJ231533; and

(ii) the Northerly Extension Option to Purchase granted to the City for the Canada Place viaduct extension and registered under numbers BJ231505 to BJ231508,

by giving notice to the optionors in accordance with the provisions of the option agreements; provided that the timing of the delivery of notice of exercise shall be at the discretion of the Deputy City Engineer in consultation with the Director of Legal Services;

B. THAT the Deputy City Engineer and the Director of Legal Services be authorized to negotiate and settle: any amendments to the Options to Purchase; and conveyancing, right-of-way and other documents necessary to carry out the transfers of the optioned lands (as such lands may be modified); it being recognized that no legal relations shall arise and none shall occur until such documents, provided they are drawn to her satisfaction, are executed on behalf of the City by the Director of Legal Services.

CITY MANAGER’S COMMENTS

The City Manager RECOMMENDS approval of A and B.

COUNCIL POLICY

There is no directly applicable Council Policy.

PURPOSE

The City has options to purchase certain lands to provide street connections to the proposed new trade and convention facilities. This report seeks Council’s authorization to exercise these options or to amend these options and exercise the amended options.

BACKGROUND

In 1995 and 1996, the City of Vancouver and the Province of British Columbia released a proposal call (Stage One) for the expansion of the trade and convention facilities. One submission (from Greystone Properties Ltd.) came forward for detailed review (Stage Two). The Greystone scheme on the site east of Canada Place pier, called the Port Lands, was endorsed by the City and the Province. Having satisfactorily completed the conditions of Stage One and Stage Two, Greystone entered into detailed negotiations with the City and prepared a detailed development proposal for the site.

On May 19, 1998, Greystone submitted its initial Comprehensive Development application and Staff proceeded to evaluate the application and undertake a public consultation process to solicit input from community groups and interested individuals. Greystone submitted a revised application in September which Council has referred to a Public Review Meeting scheduled for December 8, 1998.

In anticipation of the development of the Port Lands in the Central Waterfront District, the City acquired options to purchase lands which would be needed for road and utility purposes. These options were acquired, at no cost to the City, from Marathon Realty Company Limited (now Canadian Pacific Properties Inc. (CPPI)) as part of the subdivision approval for Lot 7 (east of Howe Street in the Central Waterfront).

DISCUSSION

Two of the options mentioned above are currently required for the development of the new trade and convention centre facilities (also known as the Portside Project). These are shown on the site context map attached as Appendix A. The first of these, the Station Viaduct Option, is required to create a connection across the CP rail yard from Cordova Street (the “Cordova Connector”). The second option, the Northerly Extension Option, allows for the extension of Canada Place Way viaduct. Construction of these two viaducts will link the Portside Project to the City’s road network, provide important links for pedestrians and cyclists, and allow the site to be serviced. Contained in these options to purchase are conditions related to soil remediation and notice required by the current property owners. This makes the timing of the exercise of these options critical to the scheduling of the Portside Project.

Now that the Portside Project is in the preliminary design stage, it has become apparent that it would be desirable to modify the lands originally optioned by the City to service this site (this is discussed in detail in the Comprehensive Development Agreement (CDA) referral report which was before Council on November 17, 1998). Staff is currently discussing these modifications with the adjacent property owners, pending Council approval. If agreement on these modifications cannot be achieved with all parties, the viaducts will be restricted to the existing option lands. Using the existing optioned lands the designs can still achieve adequate access to the Portside development.

Prior to signing the Comprehensive Development Agreement the viaduct construction agreement between the City and the developer will be in place. The construction agreement will obligate Greystone to construct the viaducts at no cost to the City once the options have been exercised. Security for the viaduct construction agreement will be provided by an indemnity agreement between the Province of British Columbia, Greystone and the City.

This report recommends that Council exercise the Station Viaduct Option and Northerly Extension Option. Furthermore, it recommends that Council give the Deputy City Engineer and Director of Legal Services the authority to negotiate and settle such amendments to these options as are considered necessary or desirable on behalf of the City, except for any increase in the purchase price. The exact timing for the exercise of the options will be determined through discussions with the adjacent property owner’s and Greystone.

FINANCIAL IMPLICATIONS

Exercising these options will transfer the lands to the City, in fee simple, at a nominal cost. Prior to exercising these options the City will be indemnified by the Province of British Columbia for any costs associated with the exercise of these options and the subsequent construction of the viaducts.

SOCIAL IMPLICATIONS

Construction of the “Cordova Connector” on the Station Viaduct optioned lands will provide a connection from Gastown and other surrounding communities to the new trade and convention centre.

ENVIRONMENTAL IMPLICATIONS

Construction of the “Cordova Connector” and the extension of the Canada Place Way viaduct will provide important links for pedestrians and cyclists. Soil remediation, if any, will be the responsibility of Canadian Pacific Properties Inc.

CONCLUSION

The City of Vancouver acquired options to purchase lands, at no cost, and to construct viaducts to service any future development on the Port Lands. The current proposed development of the new trade and convention centre facilities will require the exercise of two of these options to service the site. It is recommended that the Deputy City Engineer, in consultation with the Director of Legal Services, be given the authority to exercise these options and to negotiate any amendments to them that may be necessary.

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(c) 1998 City of Vancouver