ADMINISTRATIVE REPORT


                                                    Date:  November 8, 1995
                                                    Dept. File No.2122-30  


     TO:       Vancouver City Council

     FROM:     General Manager of Engineering Services

     SUBJECT:  GM Place - Office Area Encroachment



     RECOMMENDATION

          THAT  Council grant permission for the change in building use for
          portions of  GM Place offices  encroaching on  City streets,  and
          that  the  annual charge  required  under  Section  10(1) of  the
          encroachment by-law (#4243) be waived.


     COUNCIL POLICY

     On October 7,  1993, Council  granted permission for  portions of  the
     Arena development encroaching  on City streets  and waived the  annual
     charge required under the encroachment by-law.



     PURPOSE

     This report recommends approval  of a change in use  for building area
     encroachments, on newly  dedicated streets, and waiving  of the annual
     charge required under By-law #4243 for encroachments on City streets.


     BACKGROUND

     The proposed form of  development for the Arena  included a system  of
     walkways,  bridges,  and  stairways  and areaways  (with  storage  and
     mechanical spaces below) for  pedestrian circulation around the arena.
     Because  the  walkway system  provides  important pedestrian  linkages
     between the False Creek grade and the downtown grade, and were on land
     being dedicated to the City at no cost.  Council granted permission on
     October  7, 1993 for the portions of the Arena development encroaching
     on  existing  and future  City streets  and  waived the  annual charge
     required under the encroachment by-law.





     On October 19,  1993, Council enacted  the zoning for  the Arena  site
     after  Northwest Arena  Corporation  fulfilled the  zoning conditions.
     The  conditions included dedication of the area under the Dunsmuir and
     Georgia  Viaducts as City street  and entering into  a legal agreement
     with  the  City  outlining   the  conditions  of  their  encroachment,
     including such  things as viaduct maintenance provisions  for the City
     and removal of encroachments.

     Since October 1993, the form of development has changed to incorporate
     the deletion  of the office  tower component  and the addition  of the
     Grizzlies basketball organization.  The changes include the use of the

     space  below  the   stairways  and  areaways   on  City  streets   for
     approximately 100  square meters of  offices related  to the  building
     operation, in addition to storage and mechanical equipment.


     DISCUSSION

     Prior to the Arena site  rezoning, the viaducts were permitted  on the
     site  by  a  right-of-way which  limited  the  use  to bridge  related
     purposes only  and which gave the  owner the right to  build under the
     bridges.   The area  under the viaducts  are now  dedicated as street,
     giving  the City  control over their  use.   Council has  approved the
     building encroachments  and waiving  of the  encroachment fee for  the
     walkways,  mechanical  and  storage  areas,  and  ticket  areas.    To
     incorporate additional arena uses, the  building use has changed  from
     ticket areas to offices related to the building operation.

     Staff  recommend that the  change in use  to office area  be permitted
     within the previous  approval of  a nominal encroachment  fee for  the
     building portion on newly dedicated streets.



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