ADMINISTRATIVE REPORT

Date: March 16, 1999

Author/Local: J. Scholtz/7848

RTS No. 00560
CC File No. 5104

Council: March 30, 1999

TO:	Vancouver City Council
FROM:	Director of the Housing Centre
SUBJECT:	Proposed Lease Terms for Non-Market Housing - 3298 Vanness Avenue

RECOMMENDATION

THAT the PEF lease the property at 3298 Vanness Avenue, legally described as Lot A, Blocks 149-153, D.L. 37, Plan LMP39697, to L.T.D. Homes Society, as per the Standard Charge Terms registered in the Land Title Office under ST941002, with the following specific terms and conditions:

1) a term of 60 years;

2) a total prepaid lease rent of $1,200,250;

3) commencement date being the earlier of the date of signing the lease by all parties or 120 days from Council approval of the lease terms;

4) The City may cancel the lease if construction has not commenced within 12 months of the date of commencement of the lease; and

5) Such further and other terms as are acceptable to the Director of the Housing Centre and the Director of Legal Services, it being noted that no legal obligation shall arise until execution of the lease.

GENERAL MANAGER’S COMMENTS

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

COUNCIL POLICY

It is Council policy to use the Property Endowment Fund to assemble sites for lease to non-profit and co-op sponsors for 60 years at a prepaid rent equal to 75% of acquisition cost of freehold value.

It is also Council policy to maintain and expand housing opportunities in Vancouver for low and moderate income households, with priority being given to Downtown lodging housing residents, elderly people on fixed incomes, the physically and mentally disabled, and single parent families with children.

PURPOSE

The purpose of this report is to request Council to approve the lease terms for a proposed non-market housing project.

BACKGROUND

On May 26, 1998, Council approved the purchase of five contiguous lots at 3269-3295 Clive Avenue for the development of a non-market housing project. They all have 33 ft. by 133 ft. dimensions and have been consolidated into one site. Total combined size is 21,945 sf. and no rezoning is required under present CD-1 zoning. The site is now vacant and a Phase I Environmental Assessment reveals no need for soil remediation. L.T.D. Homes Society was identified as the project sponsor, in partnership with Coast Foundation Society (1974). BC Housing has given the project a conditional allocation. This project forms part of the City/Province 1998 Non-Market Housing Partnership.

A location map is provided on Figure 1.

Figure 1

A development permit is expected to be issued in May 1999 and 3298 Vanness Avenue is the proposed address.

THE PROJECT

L.T.D. Homes Society is a non-profit society registered in the Province of British Columbia and an approved sponsor of non-market projects that serves families, seniors and Downtown older singles. Their present experience is the management of 116 units in 3 social housing projects in Vancouver.

The project will total thirty units, with twenty-one apartments for families and nine townhouse units for people with disabilities. Approximately ten of the units would be operated by Coast Foundation for their clients. Coast already has a similar arrangement with L.T.D. Homes Society in their CityGate project, which is the model for this proposal. The project will feature both a courtyard and a play area.

PROJECT FUNDING

The Manager of Real Estate Services recommends a basic rent of $1,200,250 for a 60-year lease. This is 75% of $1,600,333, the purchase price for the five lots.

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(c) 1998 City of Vancouver