POLICY REPORT
BUILDING AND DEVELOPMENT
Date: July 9, 1999
Author/Local: RWhitlock/7814
RTS No. 00769
CC File No. 2605Council: July 20, 1999
TO:
Vancouver City Council
FROM:
Director of Current Planning
SUBJECT:
Community Amenity Contribution for 3200 East 54th Avenue [Champlain Mall]
RECOMMENDATION
A. THAT the proposed conditions of approval for the form of development for 3200 East 54th Avenue (Champlain Mall) include acceptance of a Community Amenity Contribution (CAC), details of which are outlined in this report and subject to further discussion and incorporation in an agreement to the satisfaction of the City Manager and the Director of Legal Services, in consultation with relevant Departments.
This being in addition to Development Cost Levies (DCLs) expected to be paid under the proposed City-wide DCL By-law scheduled to be operative as of January 28, 2000 at the rate of $26.91 per m² ($2.50 per sq. ft.).
B. THAT the City apply DCL funds collected pursuant to the City-wide DCL By-law noted in RECOMMENDATION A to the following capital projects being provided on or related to this site by the developer in accordance with the following:
(i) a contribution not to exceed $233,228 towards the cost of establishing the Champlain Heights Community Centre day care facility (at a rate of $1,696 per m² [$150 per sq. ft.] x 137.58 m² [1,480 sq. ft.]); and
(ii) a contribution not to exceed $230,000 towards the cost of development of park land in the residential component of the project, for which the City will be granted a right-of-way for full public access and use of the space.
These City contributions are payable when sufficient DCL contributions are made by the developer.
C. THAT when approved, the DCL for this development remain at $26.91 per m² ($2.50 per sq. ft.) until the development is completed.
CITY MANAGER'S COMMENTS
The City Manager RECOMMENDS approval of A, B and C.
COUNCIL POLICY
At its meeting of July 7, 1998, in considering a report regarding redevelopment of 3200 East 54th Avenue (Champlain Mall) and proceeding with a development application and not a rezoning, the City Manager commented that Council can require procedures and accept Community Amenity Contributions (CAC) similar to those afforded by the normal rezoning process should it so choose.
PURPOSE
This report provides a recommendation on acceptance of a CAC package offered for the redevelopment of the Champlain Mall site at 3200 East 54th Avenue (at Kerr Street).
BACKGROUND
After extensive discussions with staff, the applicant, in a letter dated July 5, 1999, has offered the following amenity package to the City. Balancing all the factors relevant to this decision, including the nature of local demands, various funding sources over time, inputs from the community at the Development Permit Board (the Board) and the ability for the development to carry such costs, staff support this amenity package.
Library
- Turnkey with the developer to finish up to 789.7 m² (8,500 sq. ft.) (to a standard ready for occupancy and comparable to the quality of other new VPL branches) including shelving to seismic standards of a modern library space.
- Rent, including base rent and operating expenses, to be maintained at the current annual rental rate for eight years from date of completion. This means the annual rent, for the full year immediately prior to the library relocation. After eight years, the rent will be average per square foot market rent in the Mall, excluding Extra Foods.
- For purposes of calculating the developer's contribution, this is valued at $1 million.
Community Centre Addition
- $700,000 cash payment to the City prior to issuance of the first residential building permit.
- It is understood that this cash payment is to be used by the City to expand the Champlain Community Centre by approximately 413.0 m² (4,445 sq. ft)., including a childcare facility of approximately 137.6 m² (1,480 sq. ft.).
School Addition
- $300,000 cash contribution for improvements to Captain Cook School. This contribution to be submitted to the City prior to issuance of the first residential building permit, for distribution to the Vancouver School Board, which will be responsible for construction. If, during the course of the development, there are any school, site or construction levies instituted, this payment will be credited to any such obligations.
Development Cost Levy
- In accordance with the proposed City-wide DCLs of $2.50 per sq. ft., to be maintained for this development, paid at building permit issuance, and calculated on the new commercial area (i.e., existing shopping centre building area being renovated would not be subject to DCLs) and new residential area. The application of DCLs would be in accordance with the by-law approved by Council.
- This rate to be maintained, subject to Council approval, until development completed.
City Contribution to the Developer from Collected DCL Payments from the Developer of the Site
- Maximum towards completion of the childcare facility forming a part of the 4,445 sq. ft. expansion = $233,228 (1,481 sq. ft. x $150.00 per sq. ft.).
- Maximum towards development of the public open space in the residential development - $230,000. Also, as a condition, the City is to be granted a right-of-way so public has access to and use of the open space.
- The City contributions are up to the stated maximum, but only after sufficient DCL contributions are made by the developer.
DISCUSSION
Requirement for Public Amenities: The Vancouver Charter, Section 565(f.)(1) states that where a CD-1 has been created, Council may make by-laws "requiring . . . that as a condition of approving a form of development a person provide public amenities, facilities or utilities or provide land for such purposes. . ."
The Development Permit Board (the Board), in approving the form of development on February 22, 1999, emphasized the importance of the amenity package in its resolution:
....THAT, subject to Council approving the proposed form of development, and accepting a Community Amenity Contributions package, the Board APPROVE IN PRINCIPLE ... etc.
While it was made clear at the meeting that the amenity package was not within the mandate of the Board, a majority of delegations discussed the importance of the amenity package to the community. The minutes of the Board meeting are appended to the companion report on the form of development.
The estimated value of the new package is approximately $3,000,000, taking into consideration the value of the foregone library rent to the developer for eight years, and that some portions of the development will likely proceed in advance of the new DCL to come into effect January 28, 2000.
Seniors Response: It should be noted that staff expect the only element of the amenity package which is likely to be controversial is the proposed location of seniors' activities at the Champlain Heights Community Centre. Some seniors' groups in the area would prefer space dedicated for their use and that the space would best serve seniors by being located at the Mall, which has been a traditional meeting place in the community. Park Board staff feel that space can be adequately programmed and consequently will serve seniors, as well as have flexibility to also serve other groups in the community.
CONCLUSION
Staff recommend that a condition of approval for the form of development for Champlain Mall include acceptance of an amenity package which will include a new Champlain Heights branch library, monies for additions to the Champlain Heights Community Centre and Captain Cook School and other projects to be funded through collected Development Cost Levies over time.
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(c) 1998 City of Vancouver