A1
                             ADMINISTRATIVE REPORT

                                            Date: February 22, 1996
                                            Dept. File No.000 020

    TO:       Vancouver City Council

    FROM:     General Manager of Engineering Services in consultation
              with Director of Legal Services and
              Manager of Real Estate Services

    SUBJECT:  Cassiar Connector - Land Exchange Between the City
              and Ministry of Transportation & Highways


    RECOMMENDATIONS

         A.   THAT  Council   accept  for  information  this  report  which
              describes the  process by which  a land  exchange will  occur
              between   the  City   of  Vancouver   and  the   Ministry  of
              Transportation  & Highways,  pertaining  to lands  within and
              adjacent to the Cassiar Connector portion of the Trans-Canada
              Highway, between First Avenue and the Second Narrows Bridge.

         B.   THAT all  those portions  of Kitchener Street,  Grant Street,
              Skeena Street,  Graveley Street, the lane  north of Kitchener
              Street within Block  100, the lane  south of Graveley  Street
              within Block 104 and the First Avenue On-ramp onto the Trans-
              Canada Highway,  dedicated by Reference Plan  22684, each the
              same as shown within  the heavy outline on the  plan attached
              as  Appendix A,  be closed,  stopped-up and  conveyed to  the
              Ministrh  of   Transportation  &  Highways,  subject  to  the
              following conditions:

              1.   The  said  City  streets  and lanes  to  be  closed  are
                   subdivided to  create a  single parcel, as  shown within
                   the  heavy outline  and  labelled Parcel  1 on  the plan
                   attached  as Appendix  `B', to  the satisfaction  of the
                   General   Manager  of   Engineering  Services   and  the
                   Approving Officer; and

              2.   The Ministry  of Transportation & Highways  to grant the
                   City rights-of-way or other  forms of tenure, to protect
                   and secure the right for utilities belonging to both the
                   City and the public utility companies,  to remain in the
                   streets and lanes to  be closed, stopped-up and conveyed
                   to  the   satisfaction   of  the   General  Manager   of
                   Engineering Services and the Director of Legal Services.
         C.   THAT   the    38   properties,   shown    hatched   on    the
              plan attached as Appendix "A" and listed  within the attached
              Appendix  "C", whose  titles are in  the name of  the City of
              Vancouver, be  conveyed to  the Ministry of  Transportation &
              Highways for a nominal amount of $1.00 each, subject to their
              subdivision into a single  parcel, as shown within  the heavy
              outline  and  labelled  Parcel  1  on  the  plan attached  as
              Appendix "B", to  the satisfaction of the General  Manager of
              Engineering Services and the Approving Officer.

         D.   THAT all that portion of Block B, Sections 28 and 29, Town of
              Hastings Suburban  Lands, Plan 19244 (Rupert  Park), owned by
              the City  and in the care  and custody of the  Park Board, as
              shown cross-hatched on the plan  attached as Appendix "B", be
              conveyed to the Ministry  of Transportation & Highways  for a
              nominal amount of $1.00, subject to its subdivision  into the
              parcel shown within  the heavy outline and labelled  Parcel 1

              on  the plan attached as Appendix "B", to the satisfaction of
              the General Manager of Engineering Services and the Approving
              Officer.

         E.   THAT the Director of Legal  Services be authorized to execute
              the  plans,  transfers  and  documents  required to  complete
              Recommendations B, C and D, on behalf of the City.

    COUNCIL POLICY

    The  authority for  closing and  disposing of  portions of  streets and
    lanes is set out in the Vancouver Charter.

    The Vancouver Charter allows Council  to dispose of City-owned property
    to be deemed to be surplus to the City's needs.


    SUMMARY

    There  are  a  number   of  issues  related  to  ownership   and  hence
    responsibility,  of  the land  area  known  as  the Cassiar  Connector,
    forming a portion of the Trans-Canada Highway from  First Avenue to the
    Second  Narrows Bridge.  A maintenance agreement has been prepared, and
    while   not  yet   executed,  lays   the  foundation   for  maintenance
    responsibilities.  The maintenance agreement does not address issues of
    ownership.  The portion  of the Trans-Canada Highway from  First Avenue
    to  the Second Narrows Bridge, (the "Cassiar Connector") is presently a
    combination of City streets and lanes, Crown land and titled properties
    (600+) owned by the City and the Ministry of Transportation & Highways.
    This report  and  recommendations  lay  the  foundation  to  improve  a
    situation of  confusing ownership responsibilities.   Staff believe the
    recommendations, when  implemented, will result in  clear ownership, in
    the name of the Ministry of Transportation & Highways of the lands that
    operate as a Provincial Highway. 

    PURPOSE

    The purpose of this report is to:

    1.   Inform Council of the need, process and steps to be undertaken  to
         complete  an  exchange  between  the  City  and  the  Ministry  of
         Transportation & Highways (M.O.T.H.), on lands within and adjacent
         to  the Cassiar  Connector  portion of  the Trans-Canada  Highway,
         between First Avenue and the Second Narrows (Ironworkers Memorial)
         Bridge.

    2.   Obtain  Council approval to close, stop-up  and convey to M.O.T.H.
         those portions of City  streets and lanes included in  the Cassiar
         Connector between First Avenue and Charles Street.

    3.   Obtain  Council approval  to convey  to M.O.T.H.  those properties
         whose  titles are in the name of  the City included in the Cassiar
         Connector between First Avenue and Charles Street.

    BACKGROUND

    The  Cassiar Connector  project  was completed  in  1993, and  forms  a
    portion  of the Trans-Canada Highway  extending from First Avenue north
    to  the Second  Narrows  Bridge.   City staff  and  M.O.T.H. have  been
    working  on an  exchange  of properties,  within  and adjacent  to  the
    Cassiar Connector to resolve issues pertaining to the "legal" ownership
    of the lands.

    Many of  the issues  are  unique to  the City  of  Vancouver and  exist
    because  of historical  conflicts  between the  Vancouver Charter,  the
    Highway Act and the Land Title Act.

    M.O.T.H. has historically  been guided in  their operation of  highways
    and the acquisition of  lands required for new highways  by the Highway
    Act,  and the principles  contained therein.   Typically M.O.T.H. staff
    would  negotiate land  acquisition  from owners,  execute a  simplified
    conveyance  document, and  then  "gazette" the  Highway.   The  gazette
    notice  was the  only requirement  under the  Highway Act  to establish
    certain  lands  as  public  highway,  with  ownership  vested  in   the
    Provincial Crown.   The  Highway Act  is not consistent  with the  Land
    Title Act as the mere filing of a gazette notice in a Land Title Office
    does  not act  in any  way to  transfer the  portions of  private lands
    contained within the gazette notice.

    As a result, large areas of provincial highways throughout the province
    do not  exist under  the interpretation  of the Land  Title Act.   Many
    hundreds  of owners  of land  abutting a  highway, or  through which  a
    highway runs, have no  indication on title that the highway  exists, or
    that they may own something less than the original parcel.
    To validate,  under the  Land Title Act,  the acquisition  of land  for
    highways requires  M.O.T.H. to  file  a "Form  12"  in the  Land  Title
    Office.   The  Form  12 acts  to  create the  exception  on title,  and
    establish the portion of land as road vested in the Provincial Crown.

    A complication exists  within the City  of Vancouver.  As  described in
    the Vancouver Charter, the City  is the owner of all streets  and lanes
    within the City.   This is  inconsistent with the  Highway Act in  that
    lands established by gazette notice are vested in the Provincial Crown.
    As  a  result, M.O.T.H.  has  not  deposited Form  12's  for  the lands
    contained  within the Cassiar Connector, because it would result in the
    dedication  of  these lands  as road,  and  therefore, the  transfer of
    ownership to the City.

    DISCUSSION

    Cassiar Connector

    M.O.T.H., between 1960  and 1965,  prepared plans of  survey that  were
    deposited in the Vancouver Land Title Office as Highway Plan(s) 27, 28,
    33, 46 and 62.  They covered all of the Trans-Canada Highway throughout
    the City  as it existed in the early 1960s, including the Rupert Street
    Off-ramp  through Rupert  Park.    It  is  noted  that  while  M.O.T.H.
    compensated the City for titled lands contained within the 1960s Trans-
    Canada  Highway, albeit without filing Form 12s,  we have not found any
    record that would  indicate that  compensation was paid  for the  areas
    that were road or lane as owned by the City.  This land was  the City's
    contribution to the 1960s construction of the Highway.

    Since 1992,  the Cassiar  Connector has undergone  significant changes,
    including a tunnel under Hastings Street, a new Rupert Street Off-ramp,
    significant  reconstruction  of  overpasses at  Bridgeview  and  McGill
    Streets, the Skeena Tunnel and an overpass at Adanac Street.

    This reconstruction  of the Cassiar Connector results  in certain lands
    being returned to  the City, some for park, some for  road, and some as
    titled parcels, and results in M.O.T.H. acquiring additional City lands
    for Highway.    An exchange  of  lands  is the  appropriate  method  to
    accomplish the task of placing ownership and responsibility for various
    titled  parcels under the correct administration.  On October 17, 1995,
    Council  approved   the  recommendation  of  the   General  Manager  of
    Engineering  Services  and declined  ownership  of a  triangular-shaped
    parcel  of land adjacent to Fellowes Street, north of Cambridge Street.
    That decision  resolved a major  issue and allows  for the  exchange to
    proceed.  It is noted that a Maintenance Agreement has been negotiated,
    although not yet executed, for lands within the Cassiar Connector.  The
    Maintenance Agreement relates only to maintenance responsibilities  and
    is peripheral  to the question  of ownership.   Council support  of the
    land exchange  process  described  in  this  report  will  address  the

    question  of  ownership,  of the  underlying  lands.   The  Maintenance
    Agreement  has been  prepared with  this exchange in  mind and  the two
    tasks parallel each other.

    When the construction of the new Cassiar Connector was first discussed,
    the  City and M.O.T.H. agreed that  each party would contribute land as
    is, where is and as necessary without further monetary consideration to
    either  party.    It  was  also  agreed  that  after  construction  was
    completed, the parties  would complete an exchange  and place ownership
    and responsibility for lands under the appropriate administration.

    Ownership and Exchange

    The   underlying  land  in  the   Cassiar  Connector  is   made  up  of
    approximately  500  titled  properties,  111 titled  portions  of  lane
    established  by Council  Resolution, surveyed  Crown Land  and numerous
    City  streets and  lanes, dedicated  by the  deposit of  Subdivision or
    Reference Plans.   The  majority of the  titled portions  are owned  by
    M.O.T.H., or the City,  with a limited number (approximately  12) owned
    by private individuals or corporations.  These private owners have been
    compensated for the land involved.

    Where the majority of users see a Highway, what we now know exists is a
    complicated series  of 600 + titled  portions of land owned  by the two
    main parties, and a series of dedicated streets and lanes.   This leads
    to  numerous  existing problems  and potential  problems.   There  is a
    concern that if litigation were to occur as a result of a motor vehicle
    accident  on the Connector, the City  and M.O.T.H. would be enjoined in
    the  action, due to ownership  concerns, both parties  having to defend
    any such action.  The  ability to properly manage assets, is  placed in
    limbo  by over-lapping  ownership.   An example  is Rupert  Park, which
    cannot  be  dealt  with  effectively  because  of  the  confusion  over
    ownership.   The  park has  been redeveloped  and experienced  problems
    because  development  permits were  delayed,  due to  the  existence of
    gazette notices for Highway  that is no longer required.   In addition,
    the  Park  Board  has constructed  park  facilities  on  land owned  by
    M.O.T.H., and M.O.T.H.  has highway  constructed on land  owned by  the
    City, but under the care and custody of the Park Board.

    When these 600 + titles are researched in the Land  Title Office, there
    is no method of identifying that they are part of an operating highway.
    A  risk  exists that  future property  managers  at both  the  City and
    M.O.T.H.,  may believe  that  there is  property that  can  be sold  as
    developable properties.   This risk increases  with computerization and
    geographic  information systems,  because  as the  systems increase  in
    sophistication, the sophistication of the average user decreases.
    It  is unnecessary  to have  600  titles for  land that  can easily  be
    identified on less than 10 titles.  M.O.T.H. and the City have embarked
    on a  series of legal  surveys, the result of  which will be  to create
    approximately  8 parcels  of land,  each with  a title  in the  name of
    M.O.T.H., to cover the  Cassiar Connector.   Each parcel will define  a
    simplified area representing a unique section of the Connector.

    The advantage of the exchange is to create single parcels clearly owned
    by M.O.T.H. and clearly for Highway purposes.  The goal  is to make the
    Highway  M.O.T.H. owned.  This  requires the closure  and conveyance of
    various City streets and lanes  and the transfer of titles in  the name
    of the City.   The City will  require utility rights-of-way  across the
    M.O.T.H. parcels in appropriate  (existing) locations.  The maintenance
    agreement contains  a provision for future  registration of appropriate
    documentation, such as rights-of-way.  In addition, certain lands being
    transferred to the City (example, the Rupert Park parking lot north  of
    Charles Street), will be consolidated  into single parcels wherever and
    whenever possible.  Air  Space Parcels will be created for the Hastings
    Street,  Skeena Street  and  Bridgeway Tunnels  and  the Adanac  Street
    Overpass.    In addition,  a number  of City  roads  and lanes  will be

    dedicated  on the  subdivision plans to  be registered  as part  of the
    exchange.

    This report begins  the process  of Council authority  to complete  the
    exchange.   This first section, between First Avenue and Charles Street
    has been chosen as the commencement location because it is the simplest
    portion to deal with.   In this section,  all of the transfers of  land
    will be from the City to M.O.T.H.  In each of the other sections, there
    will be transfers in either  direction.  Recommendations B, C, D  and E
    establish the Council authority  required to close, stop-up  and convey
    City  streets and lanes, and to transfer City-owned titles as necessary
    to complete this first section.

    We will be reporting back to Council for approval to close, stop-up and
    convey additional portions of City  road and lane in the future.  It is
    anticipated  that  the process  will  take approximately  two  years to
    complete.

    CONCLUSION

    It is  noted that Council  has granted  approvals to close  and stop-up
    portions of  roads and lanes within  Rupert Park on April  19, 1994 and
    July 5, 1994  (see Appendix "A").  In addition,  Council on October 17,
    1995, accepted the recommendation of the General Manager of Engineering
    Services to reject  the offer of  M.O.T.H. to accept  ownership of a  6
    acre  portion of  land,  being the  Skeena-Cambridge  side hill.    The
    recommendations contained in  this report are a  natural progression of
    those Council decisions,  and commences  work on the  valuable task  of
    simplifying ownership within the Cassiar Connector.
    The  benefits to  the City, M.O.T.H.,  and the Land  Title Office, will
    continue  for  years after  completion of  the  project.   Dealing with
    approximately 8 titled parcels,  each defined by a modern  survey, each
    with M.O.T.H. ownership, will allow all users to  deal with the Cassiar
    Connector without hundreds  of hours of  work researching 600  multiple
    owner titles.  Responsibilities  will be clearly established.   Present
    confusion  will no  longer exist.   The  benefits of clarity  cannot be
    understated.

    The General Manager  of Engineering Services, in consultation  with the
    Director of Legal  Services and  the Manager of  Real Estate  Services,
    support approval of Recommendations A, B, C, D and E.


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