ADMINISTRATIVE REPORT

Date: November 19, 1999
Author/Local: Yin Lee/7409
RTS No. 01104
CC File No. 5104

Council: December 14, 1999

TO:	Vancouver City Council
FROM:	Manager of Real Estate Services in consultation with the Director of Social Planning
SUBJECT:	Lease Renewal : 2849-2881 St. George Street and 395 East 6th Avenue to the Boys' and Girls' Club of Greater Vancouver (the "Club")

RECOMMENDATION

A. THAT Council approve the lease renewal of 2849-2881 St. George Street to the Club on the following general terms and conditions:

(a) Rent: $1.00 per annum, to be paid in advance at the commencement of the lease.

(b) Term: 5 years and 5 months commencing August 1, 1999 plus an option to renew for another 5 years.

(c) Others: Other terms and conditions to be similar to the existing lease. The lease is to be drawn to the satisfaction of the Director of Legal Service, the Director of Social Planning and the Manager of Real Estate Services. No right or legal obligation is hereby created and none shall arise until execution of the lease; and

B. THAT Council approve the lease renewal of 395 East 6th Avenue to the Club on the following general terms and conditions:

(a) Rent: $1.00 per annum, to be paid in advance at the commencement of the lease.

(b) Term: 5 years commencing January 1st, 2000 plus an option to renew for another 5 years.

(c) Others: Other terms and conditions to be similar to the existing lease. The lease is to be drawn to the satisfaction of the Director of Legal Services, the Director of Social Planning and the Manager of Real Estate Services. No right or legal obligation is hereby created and none shall arise until execution of the lease.

GENERAL MANAGER'S COMMENTS

The General Managers of Corporate and Community Services RECOMMEND approval of A and B.

COUNCIL POLICY

Pursuant to Section 206 (I)(a) of the Vancouver Charter, not less than two-thirds of all members of Council must approve a resolution for the making of a grant to a charitable institution (Lease of City-owned property at less than market rent is considered a grant).

Vancouver City Council at its meeting on June 8th, 1993 approved a list of properties to be held in Capital Assets. The rent for these properties which are occupied by non-profit organizations are to remain at nominal rent.

PURPOSE

This report seeks Council's approval to renew the lease with the Boys' and Girls' Club of Greater Vancouver for the premises at 2849-2881 St. George Street and 395 East 6th Avenue, on the general terms and conditions recommended in this report.

BACKGROUND

The City has been leasing the City-owned lots at 2849-2881 St. George Street, legally known as Lot G Block 129 D.L. 264A Plan 2797; Lot 2 (Reference Plan 1415) of Lot E Block 129 D.L. 264A Plan 2797; Lot 7, except portions in Reference Plans 847 and 1617, Block 132 D.L. 264A Plans 923 and 1771; Lot A (Reference Plan 847) of Lot 7 Block 132 D.L. 264A Plans 923 and 1771; and Lot B (Reference Plan 1617) of Lot 7 Block 132 D.L. 264A Plans 923 and 1771 (the "Land" - see Appendix A), to the Club for 20 years commencing August 1, 1979. The rent was $200.00 for the term. The Club had constructed a purpose-built facility on the Land to serve the public for cultural, educational, artistic, recreational, athletic, charitable and social purposes. The primary target is to serve youths under the age of 19 years old.

The City has also been leasing the City-owned lots at 395 East 6th Avenue, legally known as Lots E & F, Block 27, D.L. 200A Plan 5540 (the "Lands", see Appendix B) to the Club since 1941. The Club constructed a facility on the Lands in December, 1941 with the financial assistance from the Vancouver Kiwanis Club. The building reverted to the City in August, 1961. This facility serves similar programmes as the one at St. George Street.

Both facilities have provided much needed services to the public, especially the youths in the Mount Pleasant neighbourhood.

CURRENT SITUATION

The lease for the Club at 2841-2881 St. George Street expired on July 31st, 1999 and the lease at 395 East 6th Avenue expires on December 31st, 1999. The Club requests to renew both leases at nominal rent and the term of one of the leases be adjusted so that both leases expire at the same time.

The rent for the premises at 2841-2881 St. George Street was $10.00 per annum and the rent for facility at 395 East 6th Avenue is $1.00 per annum. The Director of Social Planning recommends to standardize the nominal rent to $1.00 per annum for both leases. Staff also recommend the initial term of the lease for 2841-2881 St. George Street to be five years and five months so that the lease expires at the same time as the lease for 395 East 6th Avenue.

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(c) 1998 City of Vancouver