ADMINISTRATIVE REPORT

Date: June 16, 1999
Author/Local: S. Harvey/6001
RTS No. 0794

CC File No. 1203

Council: July 6, 1999

TO:	Vancouver City Council
FROM:	Director, Office of Cultural Affairs, in consultation with the Director of Legal Services and the Managers of Real Estate and the Housing Centre
SUBJECT:	Lease Renewal - 272 East 4th Avenue City of Vancouver Artist Residency Award Studio

RECOMMENDATION

THAT Council approve a renewal of a three-year lease of the bonused artist live/work studio at 303- 272 East 4th Avenue to the Contemporary Art Gallery at a nominal rent ($1) and no taxes, on substantially the same terms and conditions of the previous lease; the lease to be renewable for two further three-year terms under substantially the same terms and conditions, to the satisfaction of the Director, Office of Cultural Affairs and the Managers of Real Estate and the Housing Centre.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services RECOMMENDS approval.

COUNCIL POLICY

On November 17, 1993 City Council approved Vancouver Arts Initiative (VAI) recommendations, including a recommendation that the City:

· seek non-market solutions through zoning and building code provisions to address the need for affordable artists live/work spaces; and
· establish awards to honour Vancouver artists.

A lease at nominal rent constitutes a grant, and as such requires eight affirmative votes.

PURPOSE

This report seeks Council approval to renew a lease of the City-owned artist live/work studio at 272 East 4th Avenue to the Contemporary Art Gallery at a nominal rent ($1) for occupancy, at no cost, by an artist selected through a juried selection process.

BACKGROUND

In 1997 Council approved a rezoning proposal at 272 East 4th Avenue which secured a bonused artist live/work studio and created the first City of Vancouver Artist Residency Award. The purpose of the award is to grant occupancy of the studio at no cost to a Vancouver professional artist for a term of three years.

Because the City is unable to grant occupancy directly to an individual, the City leased the studio to the Contemporary Art Gallery (CAG). The CAG has assisted in managing the artist selection process with Office of Cultural Affairs and Housing Centre staff.

DISCUSSION

Ms. Marshall's three-year term is up on June 30, 1999 and a selection process has been completed to chose a second recipient of the award. The jury, comprised of highly respected art professionals has selected Steven Shearer. Mr. Shearer is a graduate of the Emily Carr School of Art & Design and the Alliance of Independent Colleges in New York. He has exhibited in Vancouver, Toronto, Montreal, New York, and Los Angeles.

The award was made through an open, competitive process jointly administered by the City and the Contemporary Art Gallery. All Vancouver-based, professional artists who could demonstrate financial need were eligible to apply. Applications were pre-qualified based on financial need by the Housing Centre staff then judged by a panel of Vancouver artists based on artistic excellence.

Ms. Marshall has gratefully acknowledged the benefit of the City's award and has used her time in the studio to produce an impressive amount and quality of work. Over the term of her award, she has had major exhibitions in Vancouver (Vancouver Art Gallery, Contemporary Art Gallery) as well as Malaysia, Montreal, Thunder Bay and Kelowna.

Staff are recommending a renewal of the existing lease with the CAG for a second term of three years. Occupancy of the unit to the selected artist is managed through a sub-lease between the CAG and the artist for a non-renewable three year maximum period. The artist is required to enter into an agreement with the CAG which addresses issues of term, repairs, insurance, and liability etc. The tenant is required to pay for hydro, telephone and other user-related costs.

FINANCIAL IMPLICATIONS

The unit at 272 East 4th Avenue was secured at no cost to the City as a condition of a rezoning. The annual operating expenses are covered as follows:

Strata fees - funds secured from the developer as part of the bonus calculation were used to pay the strata fees for the first three years. A one-time transfer from the Cultural Grants budget to Sundry Rentals Disbursements has been made to fund the ongoing strata fees.

Repairs - to date one special assessment has been incurred. It is anticipated that expenses for ongoing repairs will be minimal. Any major special assessment or capital repairs will be paid for through the City-owned Cultural Facilities allocation in the Capital Budget.

Taxes - there are no taxes so long as the City is landlord and city owned property is exempt from taxes.

Management Costs - management costs of the unit are expected to be minimal and are therefore proposed to be absorbed within the current budgets of the Office of Cultural Affairs the Housing Centre and Real Estate Services.

Real Estate staff estimate that, based on comparable units in neighbouring developments, the market rental potential of the unit over three years to be approximately $23,500. The value of the award would be $23,500.

CONCLUSION

The first City of Vancouver Artist Residency Award has now successfully completed and
staff are recommending a renewal of the lease to the CAG to enable this important award to continue. The awarding of occupancy of a City-owned artist live/work studio contributes to the City's objectives to address affordable artists accommodation through non-market solutions and also enables the City to recognize, through the award, the contribution of Vancouver artists to the City.

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(c) 1998 City of Vancouver