Report Date: May 3, 2013 Contact: Michael Flanigan Contact No.: RTS No.: Van RIMS No.: Meeting Date: May 15, 2013
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1 IN CAMERA ADMINISTRATIVE REPORT Report Date: May 3, 2013 Contact: Michael Flanigan Contact No.: RTS No.: Van RIMS No.: Meeting Date: May 15, 2013 TO: FROM: SUBJECT: Vancouver City Council Director of Real Estate Services and the General Manager of Real Estate and Facilities Management in consultation with the General Manager of Community Services Property Acquisition East Hastings Street IN CAMERA RATIONALE This report is recommended for consideration by Council in the In Camera agenda as it relates to Section 165.2(1) of the Vancouver Charter: (e) the acquisition, disposition or expropriation of land or improvements, if the Council considers that disclosure could reasonably be expected to harm the interests of the city. RECOMMENDATION A. THAT Council authorize the Director of Real Estate Services to proceed with the acquisition of 3475 East Hastings Street (see Appendix A), legally described as: PID , Lot 1, South ½ of Lot 48,Town of Hastings Suburban Lands, Plan 363 (the Subject Property ), for the future development of social housing for a price of s. 17(1) (d) (e) & (f) and s. 21(1). s. 17(1) (d) (e) & B. THAT Council approve funding of (f) and s. 21(1) for capital maintenance costs relating s. 17(1) (d) (e) & (f) and s. 21(1) that require immediate upgrading. Funding for Recommendations A and B to be provided from the Property Endowment Fund (PEF).
2 Property Acquisition East Hastings Street REPORT SUMMARY The purpose of this report is to request Council authorization to acquire the Exhibition Park Ramada at 3475 East Hastings Street for future social housing purposes and to s. 17(1) (d) (e) & (f) approve funding of and s. 21(1) for capital maintenance costs required for immediate building upgrades. COUNCIL AUTHORITY/PREVIOUS DECISIONS The City s Social Housing priorities target low and modest income families with children, seniors on fixed incomes or in need of support, SRO residents and the mentally ill, physically disabled and others at risk of homelessness. On July 28, 2011, Council approved the Vancouver Housing & Homelessness Strategy ( ) and 3- Year Action Plan ( ) as a framework to respond to Council s priorities for addressing street homelessness and increasing the variety of affordable housing options within the city. CITY MANAGER'S/GENERAL MANAGER'S COMMENTS The General Manager of Real Estate and Facilities Management and the General Manager of Community Services recommend approval of the foregoing. REPORT Background/Context Council priority is to end street homelessness by 2015, as well as increase affordable housing choices for residents. The City of Vancouver s Housing and Homelessness Strategy (the Strategy ) outlines the City s overall direction for housing and homelessness, identifying the different forms of housing necessary to meet the needs of all our residents. A specific goal of the Strategy is the development of 2,900 units of supportive rental housing and 5,000 units of social rental housing by With the City s current inventory of sites set aside for social housing now diminished, Real Estate Services has been directed to replenish the PEF inventory for the next round of social housing development projects. The Subject Property, located in the northeast quadrant of the city, would begin to replenish the City s land bank and to provide an opportunity for the creation of affordable rental housing and supportive rental housing in accordance with the City s Housing and Homelessness Strategy. Strategic Analysis The site selection for future social housing projects includes (but is not limited to) the following: 1) Location: addressing gaps in social housing spread across the City, suitability in terms of neighbourhood support services and community amenities, transit accessibility, etc.;
3 Property Acquisition East Hastings Street ) Redevelopment Opportunity: targeting underutilized sites with short commercial lease terms where current planning policy supports land use intensification or where amendments to planning policy for the provision of social housing projects are likely; and 3) Asset Strength: given the timeframe to bring social housing projects to fruition, sites offering strong holding income and quality site improvements are desirable. The Subject Property Considering the above criteria, Real Estate Services has negotiated the purchase of the Exhibition Park Ramada at 3475 East Hastings Street. This is a 58-room hotel located in the Hastings/Sunrise neighbourhood, close to the eastern boundary of the City. The Subject Property is in good condition and with the proposed building upgrades, the rooms, in the short-term, could be used as interim housing for low-income households or by providing space for displaced tenants who need to move as a result of renovations/redevelopment to their social housing building. In the long-term, the property could be redeveloped as mixed-income social housing with ground level retail. The Subject Property has a site area of 23,232 sq. ft. which can be subdivided into two 96 ft. x 121 ft. development sites. The C-2 zoning requires that street retail be developed along Hastings Street with residential units on the upper floors. Under a rezoning, the site could accommodate about 90,000 gross sq. ft. of residential area, representing about 125 to 225 units depending on the unit type. If Council approves this acquisition, the Managing Director of Social Development will report back to Council with potential uses for the Subject Property and associated revenue (if applicable). Facility Condition and Capital Maintenance Costs A complete building assessment was conducted by a team of professional consultants and was reviewed and approved by the Director of Facilities Planning and Development. The report identified building components such as roofing and mechanical and electrical systems that require immediate attention. The funding s. 17(1) (d) (e) & required to properly address these issues is calculated to be approximately (f) and s. 21(1). These costs do not include any work for usage other than maintaining the existing hotel function. Converting the existing hotel into any other functions, such as Housing, will require a new program and additional funding, which would be included in the report back to Council by the Managing Director of Social Development.
4 Property Acquisition East Hastings Street Implications/Related Issues/Risk (if applicable) Financial The source of funding for the purchase of the Subject Property and capital improvements is the Property Endowment Fund (PEF). If Council approves the purchase of the Subject Property, there will be a report back to Council which will include potential uses of the property and associated revenue, if applicable. Environmental A Phase 1 investigation for soil contamination has indicated that there are no areas of potential environmental concern; therefore, no further environmental assessment is required. Hazmat samples at various locations have been tested for asbestos and all results have come back negative; however, paint on some doors show signs of lead, which is manageable if left undisturbed. Moisture on the ceiling is evident in several rooms on the top floor which could have been caused by various roof leaks. Mould abatement work and associated repair work is included in the immediate capital maintenance costs. The Manager of Environmental Planning has reviewed the environmental reports and is in agreement with the repair work. CONCLUSION As the Recommendations outlined in this report contribute to meeting the goals of the City s Housing and Homelessness Strategy, and to Mayor and Council s priority of ending street homelessness by 2015, the Director of Real Estate Services and the General Manager of Community Services recommend approval of the acquisition and additional funding for capital improvements. * * * * *
5 APPENDIX A PAGE 1 OF 1
Term: Sixty (60) years commencing October 1, Approximately 24,258 sq. ft.
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