ADMINISTRATIVE REPORT

Date: September 15, 1999
Author/Local: Rick Gates/6036
RTS No. 973

CC File No. 5104

Council: October 5, 1999

TO:	Vancouver City Council
FROM:	Director of Community Services, Social Planning, in consultation with the Director of Legal Services and the Manager of Real Estate Services
SUBJECT:	Lease for Kiwassa Neighbourhood House

RECOMMENDATION

A. THAT Council approve a 5-year lease for the site and improvements at 2425 Oxford Street, being the easterly portion of Lot B of Lot 1, THSL, Plan LMP509, as shown on the plan attached as Appendix A, to Kiwassa Neighbourhood Services Association, at a nominal basic rent of $1 (one dollar) per annum, including the terms generally described in this report.

B. THAT Council approve a partial discharge of the existing 60 year lease of Lot B of Lot 1, THSL, Plan LMP509 to Kiwassa Housing Society from that easterly portion of Lot B and a modification of the existing lease to accommodate the changes required by the lease of the easterly portion to Kiwassa Neighbourhood Services Association.

C. THAT Council grant certain easements over the easterly portion of Lot B to Kiwassa Housing Society and accept certain easements over the leasehold interest in the westerly portion of Lot B from Kiwassa Housing Society, as required by the Approving Officer, to allow for rights such as shared underground parking use, common pathways, and so on.

D. THAT Council authorize the City to enter into such lease, partial discharge, lease modification, and easements on terms and conditions satisfactory to the Manager of Real Estate Services and Director of Legal Services along with such other ancillary documents with such parties, all as the Manager and Director may consider necessary.

GENERAL MANAGER’S COMMENTS

The General Manager of Community Services RECOMMENDS approval of A, B, C, and D.

POLICY

In June 1993, City Council decided that City-owned, purpose-built social service or cultural facilities are to be kept as assets of the Capital Fund, and that the annual rent for leased Capital Fund properties is to be one dollar.

At least eight affirmative votes are required for approval of below-market rental rates.

PURPOSE

With this report, Council approval is sought for the terms of a lease to Kiwassa Neighbourhood Services Association for the social services portion of the combined social service/housing facility at 2425 Oxford Street, and for a partial discharge and modification of the existing Kiwassa Housing Society lease and creation of certain easements to accommodate shared housing/neighbourhood house uses on one legal lot.

BACKGROUND

Construction of the Kiwassa Neighbourhood House facility was completed in June 1992. This is part of a combined social housing/social service project at the northeast corner of Nanaimo and Oxford Street. Then in 1995, a second story addition was completed on the Neighbourhood House portion of the project. The Neighbourhood House is built on top of the parking garage that is shared with the housing units, and there are some other areas (e.g. utility rooms, bicycle storage, outdoor open space) that are also shared.

The entire site is City-owned and is covered by a 60 year lease to the Kiwassa Housing Society that operates the social housing component of the development. Clause 4.04 of the Kiwassa Housing Society lease states that a new lease should be prepared for the Neighbourhood House when that part of the project has been completed. This new lease will be with the independent non-profit society that operates the Neighbourhood House, Kiwassa Neighbourhood Services Association.

Staff have explored a number of options for having different leases for two components of what is, in effect, one building on one site. The recommendation is to create a “leasehold subdivision”. The Land Title Act stipulates that the Registrar may accept a reference or explanatory plan defining a new parcel being created for a lease, subject to approval by the City’s Approving Officer. So, even though the property is not subdivided in the usual sense, a parcel is defined for leasing purposes.

Reference Plans have been submitted to the Approving Officer. These plans show thelocation of the two components with easements indicated to allow access to the parking and other common areas. Preliminary approval has been given to this lease subdivision. Final approval can only be given once acceptable terms on the lease have been agreed to.

The existing lease requires Kiwassa Housing Society to enter into such an arrangement.

DISCUSSION

The housing component will continue to have the typical 60 year lease for social housing on westerly portion of Lot B. A leasehold subdivision plan has been submitted to the Approving Officer for each of the easterly and westerly portions of Lot B, and preliminary approval received, for both the Neighbourhood House section and remaining Housing section and easements for access to common areas.

The proposed lease for the Neighbourhood House (KNH) component is based on typical City lease agreements with other City-owned Neighbourhood Houses, with a few sections which deal with the specifics of the Kiwassa facility. In general, the terms of the agreement will be:

Term: 5 years, with a renewal option for an additional 5 years
Rent: $1 per year (basic)
Services: KNH commits to provide to the satisfaction of the City the full range of social and recreational services that the facility was intended for.
Repairs: KNH is responsible for all repairs, except major structural repairs which are the responsibility of the City.
Insurance: KNH is responsible for carrying full liability and property insurance.
Subleasing: None of the space can be rented out, except for short term, non-commercial rentals (to permit use by community groups).

CONCLUSION

A lease is being prepared for Kiwassa Neighbourhood House, a partial discharge of lease and lease modification is being prepared for the Kiwassa Housing Society, and appropriate easements are also being prepared. Council ratification of the general terms of these documents is now required so that they can be finalized.

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APPENDIX A

MAP HERE

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(c) 1998 City of Vancouver