ADMINISTRATIVE REPORT

                                           Date: October 27, 1995
                                           Dept. File No. D749


   TO:            Vancouver City Council

   FROM:          Manager of Real Estate

   SUBJECT:       Extension  of Lease to the City of Vancouver, of space at
                  555 West 12th Avenue 

   RECOMMENDATION

        THAT  Council approve the extension  of the lease  of 14,184 square
        feet of office  space at 555 West 12th Avenue, legally described as
        Lot 4,  Block 380, District  Lot 526,  Plan 21466 on  the following
        terms and conditions:

        Term:       Three (3) years commencing August 1, 1995.

        Rent:       $234,036.00 per  annum -  $16.50 per  square foot  plus
                    operating expenses and taxes. 

        Free Rent   Six months rent free from August 1, 1995 to
        Period:     January 31, 1996.

   GENERAL MANAGER'S  COMMENTS

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

   COUNCIL POLICY

   The Director of Finance can approve leases and lease renewals:
        - if the total value is less than $150,000;
        - if the term is no more than five years;
        - Director of Legal Services to draw up the lease;
        - larger or longer leases require Council approval.

   PURPOSE

   The  purpose of this  report is to  seek Council approval  to extend the
   lease of  14,184 square feet of office space  located on the 3rd and 4th
   floors of  555 West 12th  Avenue from  Omers Realty Corporation  and the
   Prudential  Insurance Company  of  America for  a  term of  three  years
   commencing August 1, 1995.
   BACKGROUND

   On May  1, 1990, Council authorized  the lease of 12,395  square feet of
   office space on the 3rd floor and 1,789 square feet on the 4th floor for
   a term of five  years commencing August 1, 1990, for  the offices of the
   Housing  and Properties  Department and  Solid Waste  Management Branch.
   The original rent was $17.50  per square foot or $248,220.00  per annum.
   The lease contained a provision for a five year renewal option.

   CURRENT SITUATION

   Following negotiations  Omers  Realty  Corporation  and  the  Prudential
   Insurance Company of America have agreed to a three year lease extension
   with the same general terms and conditions except the renewal option and


   the rent, commencing August 1, 1995.  The new rent represents a decrease
   of $14,185 per annum.

   The Manager of  Real Estate is of the opinion that the proposed new rent
   is representative of current market rental value.


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