ADMINISTRATIVE REPORT

Date: April 19, 1999
Author/Local: Anne Bancroft-Jones/7422
RTS No. 00593

CC File No. 5303

Council: May 4, 1999

TO:	Vancouver City Council
FROM:	Manager of Real Estate Services in consultation with the General Manager of Engineering Services
SUBJECT:	1005 Beach Avenue - Site Rezoning (Daycare Relocation)

RECOMMENDATION

THAT Council approve the following budgets in order to create a daycare site at the northwest corner of Beach Avenue and Burrard Street (“Daycare Site”) as illustrated in Appendix A and to satisfy the prior-to conditions for zoning enactment of 1005 Beach Avenue:

(i) $235,000 for the relocation of utilities, source of funding to be the PEF;

(ii) $500,000 for Burrard Street Bridge (Bent 24) seismic upgrade, the source of funding to be $43,000 from the PEF and $457,000 from Streets Basic Capital Account No. 10000446.

FURTHER THAT the funding only be spent if capital funding is secured for the proposed daycare building and a development permit for its construction has been issued.

GENERAL MANAGER'S COMMENTS

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

NOTE FROM CITY CLERK’S OFFICE: Appendices A and B are maps and are on file in City Clerk’s Office.

COUNCIL POLICY

On July 29, 1993, the Standing Committee on City Services and Budgets resolved in part:

“A. THAT Council approve, in principle, that the full Granville Slopes park be developed, with the funding shortfall of $2,089,000 to be made up from the following sources:

· Capital Plan Allocation $550,000
· Private Donations from 888 Beach

and Yacht Harbour Pointe $110,000

· Density Adjustments on Nearby City Sites $1,429,000

FURTHER THAT the Property Endowment Fund (PEF) contribute $1,429,000 to the project, in expectation of achieving the increased density on the PEF sites, and that the holding costs of the PEF associated with the financing of the property purchase be written off.”

Council approval is required for capital works in excess of $100,000.

PURPOSE

The rezoning and sale of 1005 Beach Avenue is being done to repay the PEF for the funding shortfall of the Granville Slopes Park. The purpose of this report is to request Council approval of funds needed to relocate utilities and to seismically upgrade a section of Burrard Street Bridge, in order to create a Daycare Site which is a requirement to enact the zoning for 1005 Beach Avenue.

BACKGROUND

In November 1989, Council endorsed the Granville Slopes Neighbourhood Concept Plan, which included a neighbourhood park at 800 Beach Avenue. The funding strategy for the park was approved by Council in December 1989, of which _ of the cost would come from CAC’s on new projects and _ would come from a local improvement on existing projects. The park was acquired by May 1992.

In May 1993, Council chose not to proceed with the local improvement for the _ residents’ share of park costs which amounted to $2,089,000, and staff were instructed to report back on park development and funding options. At the July 29, 1993 meeting of the Standing Committee on City Services and Budgets, it was decided that the full park would bedeveloped and that the PEF would contribute $1,429,000 towards the funding shortfall, in expectation of achieving increased density on any of four PEF sites identified in Appendix B. Due to fragmented ownership or other constraining issues (eg. Hornby Connector), 1005 Beach Avenue was the most feasible site to generate increased zoning sufficient to repay the PEF.

Rezoning of 1005 Beach Avenue began in 1995. This site is improved with 2 daycare portables and is leased to BCBC at a nominal rent. The YMCA has operated the 37 space daycare for children aged 18 months to 5 years for approximately 25 years. A team of staff reviewed numerous options for replacement of the existing daycare spaces including on-site and off-site opportunities. The rezoning application was approved by Council at Public Hearing in July 1997, with a condition of enactment being:

“the City make suitable arrangements to the satisfaction of the Social Planning Department, for the relocation of the existing daycare spaces to an appropriate site in the West End”.

At the February 3, 1998 In Camera meeting, Council was advised that Provincial funding had not yet been secured and that staff would continue to investigate City-owned sites (e.g. parking lot behind the Kettle of Fish) and the Park Board parking lot at Sunset Beach; unfortunately, none of the sites were viable. On April 24, 1998, B.C. Buildings Corporation and Ministry of Children and Families advised that funding of approximately $500,000 had been secured to construct a permanent daycare facility.

CURRENT SITUATION

In early 1998, Engineering staff advised that it might be possible to create a new daycare site by closing a portion of Burrard Street and consolidating it with an irregular parcel located at the northwest corner of Beach Avenue and Burrard Street (“Daycare Site”); refer to Appendix A for a plan. Creation of this site will require relocation of utilities (including electrical, waterworks, sewer, hydro) plus streetworks and seismic upgrading to one pier of the Burrard Street Bridge. Engineering cost estimates (1999) are in the order of $235,000 for the utility and streetworks, plus $500,000 for the seismic upgrading to the bridge. There is an estimated incremental cost of $43,000 for the seismic work proceeding on only the single bridge pier (Bent 24) in isolation from the other seismic works on the Bridge. This cost would be recovered outside the Streets Basic Capital Budget and the RECOMMENDATION in the report reflects this split source of funding. In addition, if this Daycare Site is to be created, the General Manager of Engineering Services will be required to report back to Council to seek formal authorities as required to close, stop-up andconsolidate the subject portion of Burrard Street with the abutting lands.

Since this was the only potential replacement site for the daycare, Davidson Yuen Simpson was retained in September 1998 to determine if it could accommodate the required number of daycare spaces and meet the Provincial Licensing requirements. Their study confirmed, after a preliminary review by Planning staff and Provincial daycare representatives, that while this is a difficult site, a suitable daycare facility can be developed. BCBC and the YMCA were consulted throughout this study.

The rezoning prior-to conditions for 1005 Beach Avenue are provided in Appendix C and the daycare condition only requires the City to provide a new site; the Province and/or operator are responsible for capital funding and operating costs. The only outstanding prior-to condition involves the daycare. 1005 Beach Avenue is a highly desirable high-rise view site, located across from the Aquatic Centre and Sunset Beach. The additional value, created by rezoning it from 2.2 to 2.9 FSR, is expected to cover the funding shortfall. From this, the rezoning costs of $50,000 and the proposed servicing costs will need to be deducted.

Real Estate staff recommend that Council approve funding from the PEF for the utility and streetworks estimated to be in the range of $235,000 (1999), as well as the incremental seismic cost of $43,000. The General Manager of Engineering Services supports the expenditure of $457,000 from the Streets Basic Capital Account for the required seismic upgrade of Burrard Street Bridge Bent 24. If the funding is not approved, the rezoning will not be enacted and the repayment of the PEF for the funding shortfall for Granville Slopes neighbourhood park will be extremely problematic to achieve on any other City-owned site.

CONCLUSION

Staff recommend that Council approve the funding proposed in this report, in order to enact the rezoning for 1005 Beach Avenue. The sale of this site is expected to generate enough net proceeds to repay the PEF for the funding shortfall of the Granville Slopes neighbourhood park.

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APPENDIX C

REZONING: 1005 Beach Avenue

(a) THAT, prior to enactment of the CD-1 By-law, the registered owner shall, at no cost to the City:

(i) make suitable arrangements, to the satisfaction of the Social Planning Department, for the relocation of the existing daycare spaces to an appropriate site in the West End;

(ii) execute an agreement, to the satisfaction of the Director of Legal Services, to not discriminate against families with children in the sale of residential units; and

(iii) make suitable arrangements to the satisfaction of the General Manager of Engineering Services for the conveyance and thence consolidation of the easterly 3.00 metres of Lot B, Plan 12302 with the abutting Lot C, Block 14, District Lot 185, Plan 12302.

Note to applicant: The applicant is advised to consider the registration of an option to purchase over the subject area for future conveyance and consolidation as an alternative to conveyance at this time. The applicant should consult with the City Surveyor and the Director of Legal Services in regards to the structure of any such option to purchase.

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(c) 1998 City of Vancouver