ADMINISTRATIVE REPORT
Date: August 29, 1995
Dept. File No. 2802
TO: Vancouver City Council
FROM: Manager of Real Estate Services
SUBJECT: Fraser Lands Status Report and Budget Submission
RECOMMENDATION
A. THAT Council renew the project management contract with Moodie
Consultants Ltd. (the "Consultant") for the Fraser Lands
Project from September 15, 1995 to September 14, 1996, at a
fixed fee of $30,900 including 3% GST, payable in monthly
instalments; source of funds to be the Property Endowment Fund
(PEF).
B. THAT a sub-consultant's budget of $61,200 and a miscellaneous
expenses budget of $5,000, both including 3% GST, be approved
for the September 15, 1995 to September 14, 1996 period;
source of funds to be the PEF.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of A
and B.
COUNCIL POLICY
On September 16, 1992, Council directed that the appointment of
consultants be considered at an open meeting.
PURPOSE
This report summarizes the development progress in the Fraser Lands
Project over the last year, describes the next year's program, and
requests Council's approval of the budget and renewal of the project
management contract for the final year.
BACKGROUND
The Fraser Lands Project comprises approximately 70 acres which was
generally rezoned from industrial to residential use in the late 1980's.
This City-initiated project is creating two new communities totalling
1800 homes, 18 acres of public open space and other uses.To date, 1,220
housing units, including 194 non-market family units, have been
completed.
The project management model for the Fraser Lands was based on the False
Creek, Champlain Heights and Riverside projects, in that an outside land
development consultant was retained to work under the direction of City
staff and the community to manage the project from the beginning. The
project manager s role declined as the project proceeded towards
completion. City staff increased their involvement as the project
progressed from active development to property management.
PROGRESS DURING 1994/1995
Neighbourhood Improvements
Approximately 95% of the utility and 85% of the street improvements are
now complete. The remaining infrastructure work will be coordinated
with ongoing building construction. The construction of park areas and
walkways is now 100% complete.
Housing Construction
During the past year, 259 housing units were completed on private land
and 68 units on City land. Construction commenced on 58 housing units on
private land. Champlain Heights South, with a total of 390 homes, a
church and park space is now 100% complete. Appendices A and B and the
following table summarize the current status of development:
Status Fraser Champlain Total
Lands Heights South
Units completed 830 390 1,220
Under construction 58 0 58
DP application 0 0 0
Design development 0 0 0
City sites to be marketed 272 0 272
Private sites to be developed 240 0 240
Total 1400 390 1790
Of the 1,220 housing units completed, 789 are on City-owned land
including 194 non-market units.PROPOSED PROGRAM FOR 1995/1996
Project Management
During the next year, Real Estate Services staff and the Consultant
expect to manage and/or complete the tasks listed in Appendix C. Some
of the more significant responsibilities include:
- Finalize eight new waterlot leases;
- Finalize the subdivision of the "Ocean" site;
- Market two riverfront residential development sites and one
riverfront neighbourhood commercial development site;
- Co-ordinate soil remediation of Block 66.
As with past City-initiated land development projects, project
management responsibilities continue to be transferred from the
Consultant to City staff. Specifically, the co-ordination of soil
remediation activities and the marketing of development sites are now
the responsibility of Real Estate Services staff with some involvement
of the Consultant. The remaining items are most effectively managed by
the Consultant as they involve inter-related issues and negotiations
which the Consultant initiated or has dealt with for some time. Now that
the project is nearing completion, a considerable amount of time is
required to respond to inquiries from existing and potential residents,
developers and authorities. It is noted that the Consultant's services
will not be required for the Fraser Lands project after the 1995/96
program year.
Since most of the project management responsibilities involve
negotiations and approvals with many other parties, it is difficult to
accurately estimate how much time will be required; however, the
Consultant's time over the next year will likely be allocated as
follows:
- Waterlot leases and related issues 30%
- Community relations and information program 30%
- Subdivision approval and related issues 15%
- Capital improvements and budget update 15%
- Miscellaneous related issues 10%
A fixed price contract of $30,000 plus 3% GST for the responsibilities
described above and in Appendix C is 40% of the 1994/95 contract amount
and is considered reasonable. The fee allows approximately 6 1/2 hours
per week at charge out rates which have not increased since 1988. This
contract price includes all required administrative and support
services.
Subconsultant's Tasks
An updated subconsultant's schedule and budget for the Fraser Lands
project is provided as Appendix D. A subconsultant's budget of $61,200
including 3% GST is recommended for architectural, marketing, graphics,
environmental services for the upcoming 1995/96 year. Note that the
estimated budget for environmental services may require revision once
further assessment work is completed to determine the scope of
remediation requirements.
A budget of $5,000 including 3% GST is recommended for miscellaneous
expenses.
Marketing Schedule
The previous year's program anticipated the marketing of three
riverfront development sites which will be tendered shortly.
Cash Flow Position
An updated cash flow statement is provided in Appendix E, listing the
actual expenditures and revenues to date. Project activities during the
last year resulted in revenues of $218,000 and expenditures of $597,000,
for a net expenditure of $379,000. To date, the Fraser Lands project
has generated a cumulative net revenue of $17,271,000.
By project completion the cumulative net revenues for the PEF are
expected to amount to approximately $32 million as shown by Appendix F.
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