A8 ADMINISTRATIVE REPORT Date: March 28, 1996 Dept. File No. JF TO: Vancouver City Council FROM: Director of Land Use and Development SUBJECT: Strata Title Conversion: 1010 Howe Street RECOMMENDATION THAT the application to convert the previously-occupied building at 1010 Howe Street (Now Strata Lots 1 to 9, D.L. 541, Strata Plan VR1297) to strata title ownership be approved in principle, but that pursuant to Section 9(1) of the Condominium Act, the Certificate of Approval (Form 10) shall not be issued unless the following condition has been met within one year of the date of this approval: Completion of all work required by the City Building Inspector, under the required permits, at no cost to the City, and issuance of an Occupancy Permit, in order that this previously-occupied building substantially complies with all relevant by-laws. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY Council Policy is reflected in the City's Strata Title and Cooperative Conversion Guidelines, which outlines factors Council will consider in reviewing applications for converting previously-occupied buildings to strata title or cooperative ownership. PURPOSE Council approval is required for an application to convert the previously-occupied building at 1010 Howe Street (Now Strata Lots 1 to 9, D.L. 541, Strata Plan VR1297) to strata title ownership. BACKGROUND The site is zoned DD and is developed with a 12-storey, mixed-use, strata-titled building, currently undergoing renovations to provide 8 retail units on the Ground Floor, and 130 residential units on the 2nd through 12th Floors. The building, originally completed in 1983, previously contained offices on the 2nd through 10th Floors (all contained within Strata Lot 1), and residential units on the 11th and 12th Floors (Strata Lots 2-9). All of the existing strata lots are owned by one party. Alterations to the office floors to convert the space into residential units, and to the Ground Floor to reconfigure the retail units, under Development Permit No. DE217412 and Building Permit No. BU401124, are almost complete. The new residential and retail units are proposed to be individual strata lots and will be accessed by corridors designated as Common Property on the strata plan. The Condominium Act does not, however, allow for an amendment to the existing strata plan in order to create Common Property from strata lots. Therefore, the owner must proceed with a "deemed destruction of the building" to extinguish the current strata plan, and subsequently file a new strata plan containing the revised strata lot configurations. In a recent case, the Supreme Court of B.C. decided that, as there is a moment in time between the extinguishment and the deposit of the new plan where no strata plan will be in place, this process amounts to a "conversion into strata lots of a previously-occupied building", and is therefore subject to the provisions of Section 9 of the Condominium Act (i.e., approval by Council as the approving authority). The commercial and residential units in the building are all presently vacant. The tenants who had been occupying the residential units on the 11th and 12th Floors had been renting those spaces based on fixed-term tenancy agreements and vacated their units as per their tenancy agreements, as of November, 1995. Therefore, according to the owner, no tenants will be affected by this strata conversion, if approved. The site location is shown below in Figure 1: Figure 1 STAFF ANALYSIS In addition to Planning Department staff, the City Engineer and the City Building Inspector have reviewed this application. Given the nature of the application, the Manager of the Housing Centre has not been asked to comment. The City Engineer has no dedication or servicing requirements for this site. The City Building Inspector reports that when all work currently underway on the building has been completed in accordance with approved plans and permits, and an Occupancy Permit has been issued, the building will substantially comply with all relevant City by-laws. CONCLUSION Based on the foregoing, and on the applicant's compliance with the City's Strata Title and Cooperative Conversion Guidelines, the Director of Land Use and Development supports this application.