P3
POLICY REPORT
Date: Feb. 9, 1996
Dept. File No. F625
TO: Vancouver City Council
FROM: Manager of Housing Centre
SUBJECT: Arbutus Gardens
RECOMMENDATION
THAT the Director of Land Use and Development be instructed to
make application to amend the CD-1 Bylaw for 4625-4875 Valley
Drive to reduce the allowable FSR from 0.75 to 0.68 and return the
approved form of development to that preceding the rezoning
approvals granted by Council on January 28, 1993, and that the
application proceed directly to Public Hearing, and
FURTHER THAT the Director of Legal Services be instructed to
prepare the necessary by-law.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of
the foregoing.
COUNCIL POLICY
Council supports tenants through the provisions of the Strata Title and
Co-operative Conversion Guidelines, the provision of tenant assistance
programs, and the regulation of the demolition of rental housing.
PURPOSE
This report advises Council of the renewed attempt to sell the
302 units in Arbutus Gardens outside the provisions of the Condominium
Act and the municipal approval process it requires, and recommends that
Council refer to public hearing a reduction in the allowable density
from 0.75 FSR to 0.68 FSR.
BACKGROUND
On July 26, 1994, Council considered a report regarding a proposal to
sell the 302 units in Arbutus Gardens as a form of co-ownership which
would avoid the requirements for upgrading the buildings and for the
City to approve the conversion, as would be required if the project was
to be converted in accordance with the Condominium Act. The report
identified possible risks to prospective purchasers and the existing
tenants from the proposed arrangement. The report recommended several
actions in response, including rezoning the property to retract the
increase in density approved in January 1993. This allowed an increase
in FSR from 0.68 to 0.75 to accommodate the addition of third floors to
5 of the 7 buildings. A copy of the July 1994 report is attached as
Appendix A.
The proposal to sell the units did not proceed, and on October 4, 1994,
Council rescinded the decision to proceed to public hearing with the
rezoning, and instructed that staff report to Council if this or a
similar proposal to sell the units outside the Condominium Act was
revived.
In April 1995, the Province introduced legislation requiring
co-ownership conversions to conform to the regulations in the
Condominium Act, including municipal approval and building upgrade.
REVIVED CO-OWNERSHIP PROPOSAL
In October 1995, the owners of Arbutus Gardens advised that they were
proceeding with the sale of the units outside of the Condominium Act
similar to the 1994 co-ownership proposal. They claimed to have sold
one of the units prior to the introduction of the provincial
legislation, thereby 'grandfathering' the project and avoiding the
requirements for City approval and to bring the buildings up to code.
Sales could not commence until they received approval of the Disclosure
Statement from the Superintendent of Real Estate.
The Disclosure Statement was submitted to the Superintendent of Real
Estate in December, and referred to the Ministry of the Attorney
General. They are reviewing the status of the one sale prior to the
introduction of the provincial legislation since it must be bona fide
and arms length for the project to be 'grandfathered'. The City's Law
Department will also be reviewing this issue.The owners appear
committed to proceeding with the conversion of Arbutus Gardens outside
the Condominium Act. The project may or may not be found to be
'grandfathered'. However, if it is, the proposed conversion to co-
ownership will fall outside City jurisdiction and they will be free to
commence selling the units.
REZONING PROPOSAL
The concerns regarding the co-ownership proposal outlined in the July
1994 report (Appendix A) remain. While the City may not be able to
control the conversion to co-ownership, it can retract the approval it
gave in 1993 for an increase in density. At the January 1993 public
hearing where the increased density was approved there was substantial
discussion regarding the continuing rental tenure of the project. Some
members of Council expressed reservations about the increase in
density, and their support was conditional on rental tenure continuing.
It is appropriate for the reduction in density from 0.75 FSR to 0.68
FSR to now be referred to public hearing. Potential purchasers of the
units need to be aware that the density may be reduced. Consequently,
it is recommended that the Director of Land Use and Development be
instructed to make application to amend the CD-1 Bylaw for 4625-4875
Valley Drive to reduce the allowable FSR from 0.75 to 0.68 and return
the approved form of development to that preceding the rezoning
approvals granted by Council on January 28, 1993, and that the
application proceed directly to public hearing.
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