Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on Planning and Environment

FROM:

General Manager of Engineering Services in Consultation with the Manager of Real Estate Services and the Director of Legal Services

SUBJECT:

Proposed Encroachment of a Pedestrian Bridge over Cordova Street, for the Woodward's Redevelopment

 

RECOMMENDATION

COUNCIL POLICY

There is no Council policy directly related to this matter.

PURPOSE

The purpose of this report is to seek Council's authority to enter into an Encroachment Agreement for a new pedestrian bridge over Cordova Street, westerly of Abbott Street, with minor variations in standard procedure.

SUMMARY

This report establishes the guidelines for an agreement to provide for the construction of a new pedestrian bridge, linking the Woodward's Building and the City-owned Parkade on the north side of Cordova Street.

This report seeks Council authority to modify the standard Encroachment Agreement with relation to cancellation provisions and to affirm Council's desire in regard to the annual fees.

Simply, we seek amendments to the standard six month cancellation provisions, such that the agreement can only be cancelled with one year's prior written notice, with Council approval and if the area is required for municipal purposes.

The issue relating to annual fees is presented only to obtain clarity that Council intends that the developer of the Woodward's Building pay standard fees.

BACKGROUND

On October 20, 1997, the Development Permit Board approved Development Application 217797. The application permits significant renovations and additions to the former Woodward's Building at 101 West Hastings Street. The new development will contain retail/commercial uses and 417 market dwelling units and two sleeping units. A number of conditions have been placed on the development approval. These include:

1. "A.2.2(b) - the demolition of the existing Cordova Street overpass and repair the portions of the Cordova Parkade wall impacted by the overpass";

2. "A.2.3(a) - registration of the encroachment agreement for the replacement overpass"; and

3. "A.2.3(b) - provision of detailed design and construction of the replacement interface with the Cordova Parkade, etc.",

On September 6, 1972, pursuant to the "Short Form of Leases Act" (the "Overpass Lease"), the City entered into an agreement that granted "permission to construct a pedestrian overpass and merchandising area over Cordova Street". The agreement was charged against Lots 2 and 3, Plan 5420 and Lots 19 and 20, Plan 19435, Block 4, Old Granville Townsite, on the south side of Cordova Street and Lot 13, 14 and the Remainder of Lot 15, Block 5, Old Granville Townsite, Plan 168, on the north side of Cordova Street (see Appendix "A").
At the time of entry into the agreement, "Woodward's Stores (Vancouver) Limited" owned the lands on each side of Cordova Street. Cambridge Western Leaseholds Limited later became the owner of the lands.

On December 12, 1995, Fama Holdings Limited acquired the lands on the south side of Cordova Street (primarily the Woodward's ("Fama") Building) and the City acquired the lands on the north side of Cordova Street, being primarily the Woodward's Parkade.

The introduction of different owners on each side of Cordova Street brought a new dynamic to the Overpass Lease. The City's purchase and sale agreement with Fama provided (Section 9.5.1) that if it was a requirement of the issuance of a development permit for the Woodward's Building that the overhead walkway be removed, that Fama would at its own expense, remove the walkway.

The old overpass has now been removed. There remain outstanding issues related to the annual fees and repairs to the Parkade before the development permit prior-to condition can be considered satisfied. Staff continue to work with Fama on these matters. These issues will be more formally addressed in another report to Council, dealing with the complete issue of fees relating to encroachments from the Woodward's Building.

This report will focus on the new pedestrian bridge.

DISCUSSION

This report is required because of two distinct themes. The first theme is the issue of annual fees, liability and responsibility for the new bridge and the second theme is the issue of future removal. The new pedestrian bridge is a condition of the development permit. It is intended to provide a safe and secure form of access across Cordova Street from the residential units on one side of the road to the Parkade on the other side. There is no residential parking available within the residential building.

The City's purchase and sale agreement requires that parking be made available in the City Parkade. An easement was registered burdening the Parkade and benefitting the Woodward's Building, to meet this requirement. The development permit requires the Parkade to make 499 parking stalls available for the Woodward's re-development. The City will receive market rents for the stalls used. All costs for the new pedestrian bridge, including the required elements and/or structural modifications to the Parkade are to be at Fama's cost.

The Manager of Real Estate Services has recommended that the annual fee for the new pedestrian bridge be as per the Encroachment By-law, noting that no commercial activity will occur within the bridge structure. The General Manager of Engineering Services supports this approach.

The proposed structure covers an area of 1089 square feet (101 square metres). The annual fees as per the Encroachment By-law would be $2,932.00 per year. Based on 417 residential units, this is approximately $7.00 per year per unit. This is a reasonable fee to pay for safe, secure passage, and it is therefore recommended that the annual fees be charged as per the Encroachment By-law.

If the owner of the Parkade and the residential building were the same, the annual fee could be charged against either site. The City bills an owner and not a property for such fees. If the owner of the two sites were different entities, the parties would be jointly and severally responsible for the fee and could pay it as agreed upon between themselves.

As the City owns the Parkade, and is merely providing a service to the owner of the Woodward's Building, staff believe that the fee is the sole responsibility of the Woodward's Building. Clearly, the City could dispose of the Parkade in the future, however, as the beneficiary of the bridge is the residential owner, we believe that they should be solely responsible for the fee. Establishing this Council direction now will ensure that the agreement is prepared with this principle in mind and that problems will not arise if the City disposes of the Parkade.

The principle would apply equally to matters of liability, operating costs, maintenance, repair and future removal. We therefore recommend to Council that the residential owner (the Woodward's Building) take on these responsibilities in the registered agreement. This is paramount in why we seek Council approval in this matter.

As the bridge is to be constructed over City street, we want to crystallize the control of the design (size, shape, height and location) of the bridge and its interface with the Parkade with the General Manager of Engineering Services. This is consistent with the Development Permit Board approval and supported by the Manager of Real Estate Services.

The second theme is the issue of removal of the bridge. The Encroachment By-law requires that termination and removal provisions (to the satisfaction of the General Manager of Engineering Services) be included in each agreement. This is generally a six month notice.

Fama has requested that the bridge be allowed to remain for the life of the residential structure. This is not practical. The bridge will be constructed over a four-lane City road. It is impossible to predict what municipal purposes may require the removal of the bridge in the future. To allow the bridge to remain for the life of the residential structure, being perhaps 80 years, could greatly restrict the City needs.

Staff recognize that the standard removal clause, being six months at the control of the General Manager of Engineering Services may be restrictive, given the investment represented by the cost of the bridge. Therefore, we are recommending that the cancellation provisions be a one year prior written notice only at the direction of Council and if the area is required for municipal purposes. This will provide a greater level of security that the bridge will not be ordered removed without considerable thought and a public forum.

Fama has, in discussion, sought a long term lease with no right of cancellation. They assert that the cost of the bridge is such that they do not want to be bound to remove the bridge if the City requires the area for another purpose. Staff believe that we should not be placed in a position where we lose ultimate control over City streets. We believe the approach recommended herein is reasonable.

The Parkade to which the bridge will be connected is owned by the City. As landowner, the City will need to enter into agreements to allow residents access over and through the Parkade. Recommendation B details agreements required to address the maintenance repair and removal of the bridge and modifications to the Parkade will be required.

CONCLUSION

The General Manager of Engineering Services in consultation with the Manager of Real Estate Services and the Director of Legal Services recommends that the proposed pedestrian bridge over Cordova Street, westerly of Abbott Street, linking the Woodward's Building and the Parkade, be validated under the provisions of the Encroachment By-law, subject to the conditions set out in this report.

* * * *

pe990107.htm

APPENDIX "B"
Page 1 of 2

List of Properties that were formerly the:

Woodward's Building

1. Parcel Identifier: 003-139-956

2. Parcel Identifer: 003-140-644

3. Parcel Identifier: 003-141-802

4. Parcel Identifer: 003-141-390

5. Parcel Identifer: 003-135-187

6. Parcel Identifier: 003-135-977

7. Parcel Identifier: 003-136-001

8. Parcel Identifier: 003-135-497

9. Parcel Identifier: 003-135-934

10. Parcel Identifier: 003-136-060

11. Parcel Identifier: 002-879-956

12. And a 224 square foot portion of:

APPENDIX "B"
Page 2 of 2

List of Properties that form the:

Parkade

1. Parcel Identifier: 003-144-224

2. Parcel Identifier: 003-144-305

3. Parcel Identifier: 003-144-330

4. Parcel Identifier: 003-135-667

5. Parcel Identifier: 003-144-429

6. Parcel Identifier: 003-144-712

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