Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee of Council on Planning and Environment

FROM:

Director of Current Planning, in consultation with the General Manager of Parks and Recreation

SUBJECT:

Arrangements for the Pacific Racing Association for the Racetrack at Hastings Park

 

RECOMMENDATION

THAT Council approve the preparation between the City and the Pacific Racing Association of an Operating Agreement for the Racetrack operations at Hastings Park and a Lease for the Racetrack Grandstand building, on terms and conditions as generally outlined in this report, and all to be finalized to the satisfaction of the City Manager and the Director of Legal Services in consultation with the Director of Current Planning and the General Manager of Parks and Recreation.

AND FURTHER THAT the City Manager be authorized to sign such Operating Agreement and Lease with the Pacific Racing Association.

CITY MANAGER’S COMMENTS

The City Manager recommends approval of A above.

COUNCIL POLICY

In January 1990, City Council approved that Hastings Park be restored to predominantly park use with abundant green space and trees, instead of asphalt and buildings. In March 1997, after a two-year community consultation process, both City Council and Park Board approved the Hastings Park Restoration Plan, which includes continuation of the Racetrack for the foreseeable future and its general upgrading to be compatible with the restored park.

In January 1994, the City leased the Racetrack on Hastings Park to the Pacific Racing Association (PRA) for a 5-year term with an option to renew for a term of 20 years. In December 1998, the terms of renewal could not be agreed upon and the lease expired. Accordingly, the PRA is currently on a month-to-month tenancy at the Racetrack.

In June 1999, City Council approved terms for an Operating Agreement for the Pacific National Exhibition (PNE) occupation and use of Hastings Park, except the Racetrack area. This Agreement is currently being finalized.

PURPOSE

The purpose of this report is to recommend arrangements for the PRA’s continued use and responsibility for the Racetrack on Hastings Park.

BACKGROUND

Park Restoration: Implementation of the Hastings Park Restoration Plan is underway and will continue in phases encompassing most of the south half and west edge of Hastings Park through 2005, as funding is available. This initial park development does not intrude on the Racetrack site.

Sometime after 2005, assuming the projected park restoration schedule is sustained and that funding continues to be made available, a landscaped park area and stream will be constructed on a north/south axis across the Racetrack site, separating the track from the stables complex but with a bridged link. This park area will tie the major green space of Hastings Park with New Brighton Park and the waterfront to the north, including a proposed pedestrian link over McGill Street. This phase of park restoration will require some demolition and reconstruction and capital investment by the PRA to reconfigure Racetrack facilities, especially the stables complex.

This park restoration phasing is illustrated in Appendix A.

PNE Arrangements and Relocation: While it is City policy that the PNE relocate off Hastings Park, Council has granted the PNE an Operating Agreement for three years as this is compatible with the Hastings Park Restoration Plan. As such, for the short-run, the PNE and PRA will likely continue to be neighbours on Hastings Park.

Past PRA Lease Arrangements: At the end of 1998, upon completion of its 5-year lease term, the PRA indicated that, in the short term, it could not sustain the required capital investment commitments provided for during the 20-year renewal term of their lease, they did not exercise their lease renewal option, and the lease expired. Since that time the PRA has been on a month-to-month tenancy for the Racetrack on Hastings Park but has requested a new arrangement and terms for their continued use of the site.

PRINCIPLES FOR THE PNE AND PRA ON HASTINGS PARK

Upon review of an array of City Council and Park Board decisions on Hastings Park over recent years and in recognition of the Trust that applies to the lands, staff have framed a set of basic principles recommended to guide further decisions on park restoration and any further PNE and PRA use of the site. These principles are listed in Appendix B.

These principles acknowledge first and foremost that the green park restoration should proceed as planned upon availability of funding. Of relevance to the PRA, one of these principles acknowledges the Racetrack is expected to stay for the foreseeable future but must adjust as necessary to the park restoration plan.

PROPOSED ARRANGEMENTS FOR THE PRA FOR THE RACETRACK

Guided by the principles for park restoration and respect for the continuing positive place of the Racetrack in the restored park, City and Park Board staff representatives have met with PRA representatives to frame an appropriate new arrangement for the PRA on Hastings Park, the general principles of which have been agreed to by all these representatives for Council consideration. The PRA Board’s decision regarding the proposed arrangement will be forwarded to Council separately.

The proposal does not continue the overall lease of the Racetrack site as in the past. Instead, it includes an Operating Agreement for the PRA to conduct their business on the same overall site as previously leased (until the City requires a portion of the site for park restoration) and a new lease only for the Grandstand building. Even though it is expected that the PRA will continue to operate the Racetrack over the long term, the approval of an Operating Agreement for the whole site instead of a lease is appropriate because of the following factors:

· As a result of a recent BC Court of Appeal decision, a longer than 3-year lease can only be entered into for a whole parcel of property rather than a portion of a property (except for building areas). The Racetrack site is not a self-contained legal parcel and subdivision at this time is not practical.

· A similar arrangement was offered to the PNE for their continued operation on Hastings Park.

Since the law allows a longer term lease of a building, the proposal includes the lease of the Grandstand building in recognition of the continued place of the Racetrack in the long-term park plan for Hastings Park, subject to the Grandstand lease running and terminating concurrently with the Operating Agreement.

PROPOSED TERMS

The substantive terms of the Operating Agreement and Lease are as follows:

· Term: The term of the Operating Agreement and the Lease will each be 20 years starting when these arrangements are signed, running concurrently, with no rights of renewal thereafter, subject to the provisions regarding capital expenditures and park restoration (below).

· Fee and rent: For the Operating Agreement, the PRA will pay an Operating Fee to the City based on the existing rent formula in the 1994 lease between the City and the PRA.

For the Lease, the PRA will pay the City rent of $1.00 per year.

· Maintenance of the site: The PRA will maintain the site and buildings at least to the current standards now in place. The PRA will pay for the maintenance and all the operating costs associated with the premises (the site and all the buildings thereon).

· Capital expenditures: Capital expenditures will be at the discretion of the PRA for the first 5 years. At least one year prior to the beginning of each 5-year period thereafter, there shall be a plan agreed upon by the City and PRA for capital expenditures on the site based upon an assessment of capital needs for that period, with a maximum of $5 million required by the City to be spent by the PRA in any one 5-year period. If a capital expenditure plan cannot be agreed upon for an upcoming 5-year period, then the Operating Agreement and the Lease will both terminate at the end of the then current 5-year period.

· Parking guarantee: The number of guaranteed parking spaces secured for the Racetrack patrons will be amended from a current 2500 to the following, reflecting the pattern of land lost to parking on Hastings Park due to park restoration: for the first five years of the agreement, 1800 parking spaces will be retained within Hastings Park, with a further 900 spaces available south of Hastings and\or north of McGill Street for a total of 2700 parking spaces; subsequently, the number of spaces may be reduced to 1150 off-street parking spaces within the park boundaries and 850 off-street parking spaces south of Hastings Street and\or north of McGill Street, for a total of 2000 parking spaces. This will be augmented by whatever parking is available from time to time on Renfrew, Hastings, Pender and Bridgeway Streets.

· Daycare: The PRA will be required to ensure there is adequate care and supervision of young children on-site. The PRA will also contribute directly and shall facilitate the racing industry to contribute, in amounts to be agreed upon that represent a fair share based on Racetrack daycare demand, capital funds toward a daycare to, in part, serve Hastings Park. The amounts would be agreed upon and secured to the City’s satisfaction prior to completing the new Operating Agreement and Lease. Whether or not this daycare proceeds will be solely at the discretion of the City. Should this daycare not proceed, and if the PRA is otherwise unable to ensure there is adequate supervision of young children on-site, the City may prohibit young children from being in the backstretch areas of the premises for safety reasons to avoid potential City liability in case of accident.

· Future park expansion: A general term will return to the City control of a portion of Racetrack land when needed to connect restored areas of Hastings Park to the south to New Brighton Park to the north. After the first 5-year period, the City may require, prior to the beginning of an upcoming 5-year period, return of a designated portion of the site at a designated time for construction of the New Brighton Park connection, while generally maintaining the amount of area covered by the Operating Agreement (approximately 51 acres) and will look for a reasonable capital allocation by the PRA in upcoming capital expenditure plans to facilitate this park development in regard to adjustment of PRA operations.

· City access: The City shall have full, free and uninterrupted access to the site for park development purposes on other areas of Hastings Park, having regard for the PRA’s operational needs.

· Other terms: Other terms will be essentially similar as the 1994 lease between the City and the PRA, except as outlined in this report and as deemed necessary by the Director of Legal Services .

NEXT STEPS

If Council agrees to proceed as outlined in this report, the next step will be for the Director of Legal Services to draft the final Operating Agreement and associated Lease with the PRA. Thereafter, these documents would be signed by the City Manager.

CONCLUSION

Hastings Park restoration is well underway and the Racetrack is an integral part of the plan for the restored park. The PRA requires appropriate arrangements for their continuing operation of the Racetrack in a form consistent with that offered the PNE, but recognizing that the PRA will likely be on-site for a longer period that requires ongoing capital investment, positive maintenance, provisions facilitating their day-to-day operations and security that park restoration can be undertaken when the Park Board is ready. The proposed Operating Agreement and associated Lease fulfill all these objectives.

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