ADMINISTRATIVE REPORT

Date: December 4, 1998
Author/Local: D. Brynildsen/7313
RTS No: 00399
CC File No. 5807

TO:	Standing Committee on City Services & Budgets
FROM:	General Manager of Engineering Services
SUBJECT:	Background on Encroachments at the Sam Kee Building (8 West Pender)

INFORMATION

The General Manager of Engineering Services submits this report for INFORMATION.

PURPOSE

This report provides a summary of previous actions related to the Sam Kee building encroachments and provides background relative to the Notice of Motion on this item before Council today.

BACKGROUND

In November 1996, Staff reported on the Sam Kee areaway and building encroachments (report attached as Appendix 1). Council's action at that time was:

"That the fees for the areaway encroachment at 8 West Pender Street be reduced from the current rate to a nominal fee (noting that the overhead bay windows would still be subject to an annual fee of approximately $260.00), and that the fee reduction be retroactive."

Since that time the owner of the building has refused to pay the fee for the overhead bay windows and has requested that further relaxations be given including relaxations for four new window wickets which encroach over the sidewalk at street level and serve the insurance business located in the building. The owner believes that it was not Council's intent in 1996 to charge a fee to the Sam Kee building, however, staff believe Council was clear in it's decision.
On November 3, Council dealt with the Notice of Motion attached as Appendix 2. the Motion was not approved.

A new Notice of Motion is being put forward that differs from the earlier Notice of Motion as it now requires that the outstanding unpaid fees be paid as a prerequisite to the annual fee being relaxed to $1.00.

DISCUSSION

The decision before Council is whether or not the Sam Kee building is so unique as to warrant a relaxation of all encroachment fees. In favour of such a relaxation are the facts that the building is a heritage structure, it is a tourist attraction and it is listed in the Guinness Book of World Records as the world's thinnest building. Staff are not aware of any other buildings meeting these three criteria.

Against such a relaxation are the principles of equity amongst similar uses and the concept of charging market value for commercial activities on City property. There are many heritage buildings in the City that are tourist attractions and which pay for encroachments. The Sam Kee building also serves as an office for an insurance company that uses the encroachment space to generate revenue. Recently, window wickets were installed into the street to increase useable space for the business.

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(c) 1998 City of Vancouver