ADMINISTRATIVE REPORT Date: January 16, 1996 TO: Vancouver City Council FROM: Manager of Community Services - Social Planning, in consultation with the Director of Legal Services and the Manager of Real Estate Services SUBJECT: Lease for Collingwood Neighbourhood House, including the Community Gym and Childcare Centre RECOMMENDATION THAT Council approve a 5-year lease, commencing November 25, 1995, of the site and improvements at 5288 Joyce Street, legally described as Lot 1, Block A, D.L. 37, Plan 12815, to Collingwood Neighbourhood House Society, at a nominal rent of $1 (one dollar) per annum, under the terms generally described in this report. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY On July 7, 1994, Council approved, in principle, that Collingwood Neighbourhood House Society will be the lessee and operator of the Collingwood Village amenities. In June 1993, City Council agreed that City-owned purpose-built social service or cultural facilities are to be kept as assets of the Capital Fund, and that the annual rent for leased Capital Fund properties is to be one dollar. At least eight affirmative votes are required for approval of below- market rental rates. PURPOSE With this report, Council approval is sought for the terms of a lease to Collingwood Neighbourhood House Society for the newly completed social services facility at 5288 Joyce Street. BACKGROUND On June 24, 1993, Council approved rezoning the Joyce/Vanness industrial area to CD-1. As a condition of rezoning, the developer (VLC Properties Ltd.) was required to provide 25,000 square feet of community amenities, which includes a neighbour-hood house, a 69 space child day care facility and a community gym. Upon completion of construction, the entire facility was to be City-owned. About a year later, in July 1994, City Council formally designated Collingwood Neighbourhood House Society as the future lessee and operator of the entire facility, and instructed staff to prepare terms of lease agreement between the City and the Society. Construction of the new facility was completed late last summer. In September 1995, the neighbourhood house moved into the new building and new childcare and gym programs began. The official opening of the facility was held on November 25, 1995. Over the past six months, City staff have been discussing and refining draft lease agreements with Collingwood Neighbourhood House staff and Board members. We now have an agreement which meets the needs and concerns of both parties. DISCUSSION The proposed agreement is based on typical City lease agree-ments, with a few sections which deal with the specifics of the Collingwood facility. In general, the terms of the agreement are: Term: 5 years Rent: $1 per year Services: CNH commits to provide to the satisfaction of the City the full range of social and recreational services that the facility was intended for, including the operation of the neighbourhood house, childcare centre and gym. Repairs: CNH is responsible for all repairs, except major ones which are the responsibility of the City. Insurance: CNH is responsible for carrying full liability and property insurance. Subleasing: None of the space can be rented out, except for short term, non-commercial rentals (to permit use by community groups). CONCLUSION A draft lease agreement has been prepared for Collingwood Neighbourhood House. Council ratification of this lease is now required. * * * * *