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Maple Ridge Downtown Development

Maple Ridge Downtown Development. By Mr. T.C. Chak Mr. C.K. Siu of Housing Department. Contents. The District of Maple Ridge Background The Project and Core Facilities Funding Arrangement History of the Project Negotiation Team Work Plan Benefits of the Revised Agreement

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Maple Ridge Downtown Development

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  1. Maple Ridge DowntownDevelopment By Mr. T.C. Chak Mr. C.K. Siu of Housing Department

  2. Contents • The District of Maple Ridge • Background • The Project and Core Facilities • Funding Arrangement • History of the Project • Negotiation Team Work Plan • Benefits of the Revised Agreement • Lessons Learned

  3. The District of Maple Ridge • Location : 45 km east of City of Vancouver • Area : 260 sq. km • Population : 73,000 with an average population growth rate of 2.9%

  4. Background • 1985 & 1996 Arts & Cultural Plans and 1991 Parks & Recreation Master Plan identify need for facilities to meet the demand of growing population • 1996 GVRD Livable Region Strategic Plan identifies the area as one of eight regional town centres • 1996 OCP identifies redevelopment of the downtown as a priority

  5. Before Redevelopment

  6. After Redevelopment Art Centre & Theatre Youth Centre Office Tower Library Leisure Centre Memorial Peace Park

  7. The Project and Core Facilities • Redeveloped Memorial Peace Park • Maple Ridge Public Library (38,000 sq. ft.) • Office Tower (100,000 sq. ft.) • Surface & Underground Parking

  8. The Project and Core Facilities • Expanded and renovated Leisure Centre (70,301 sq. ft.) • Greg Moore Youth Centre (13,000 sq. ft.) • Arts Centre and Theatre (43,000 sq. ft.)

  9. Funding Arrangement • Total capital cost = $ 50M, set at fixed price • Developer : design and construction of the project • District : 25-year fixed rate and fixed term financing through MFA. Payments are made in fixed amount and in two annual instalments.

  10. History of the Project • March 1997 to summer of 1999 : exploration and discussion about: • components of the project • partners involved • financial model • Summer 1999 - partnering & development agreements signed between the District and the Developer

  11. History of the Project • Financial model developed • Missing Element(s) • Overall process, but particularly, public approval

  12. History of the Project • October 1999 - citizen challenged the partnering and development agreements. • Liability > 5years entered into without public approval. • June 2000 - Supreme Court directed that the obligations be collapsed into a term not to exceed 5 years • June to August 2000 - further development agreements, purchase and sale agreements, and leases signed

  13. History of the Project • Supreme Court decision was appealed. • July 2002 - Court of Appeal overturned original decision and found the agreements unlawful and ruled the District exceeded its authority by “borrowing” without the assent of the electors. • Court of Appeal provides two options: • renegotiate & seek public approval for liabilities > 5 years • seek public approval of original deal

  14. History of the Project • District chose to renegotiate • Fall 2002 – Council commissioned a review - the KROLL report

  15. Negotiate with the Developer Co-ordinate the approval processes Public Approval Ministry approval of: corporate structure structure of financing borrowing by-law MFA & GVRD approval of: terms of the borrowing Negotiation Team Work Plan

  16. Benefits of the Revised Agreement • Better than the original deal • Capacity to pay • Control through ownership • Cost certainty • Preferred alternative

  17. 1. Better than the Original Deal The Original Deal

  18. 1. Better than the Original Deal An Approximation of the Renegotiated Deal

  19. Original Deal Arts Centre Leisure Centre Improvements Library Park Improvements Portion of Tower Portion of Parking Youth Centre Total Stream of Payments: $80.2million Renegotiated Deal Arts Centre Leisure Centre Improvements Library Park Improvements Entire Office Tower Entire Parking Youth Centre Total Stream of Payments: $60.6million * *includes entire office space & parking ~ $10 million 1. Better than the Original Deal

  20. 2. Capacity to Pay • funds required are budgeted in the current financial plan

  21. 3. Control through Ownership • ability to dispose of, add to, stratify, or renovate the facilities becomes the choice of the District of Maple Ridge

  22. 4. Cost Certainty • eliminates all uncertainty such as CPI adjustments and balloon payment

  23. 5. Preferred Alternative • The “public approved” deal mitigated the risk of further court proceedings

  24. Lessons Learned • Assemble a team of knowledgeable individuals to evaluate and implement the project • Develop a preliminary business plan • Define project, benefits & costs • Should answer the questions: “Why a P3?” • Develop a detailed business plan • Consultation & Communication plans • Selecting a preferred partner • Negotiating Agreements • Seeking approval from relevant parties/authorities • Construction/Project Management

  25. Thank You

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