won COUN

JAN 8 1979

Mayor and Council January 5th, 1979

FROM: L.D. Pollock
City Administrator

Re: Simon Fraser Health Unit Building - District of Coquitlam

Attached is a copy of a letter from the District of Coquitlam
concerning a request from B.C. Building Corporation to acquire the Simon
Fraser Health Unit Building on Poirier Street. This building is actually
owned by the District of Coquitlam and the Health Unit was constructed
years ago with contributions from the Provincial Government, the District
of Coquitlam, the City of Port Moody, and the City of Port Coquitlam.

These partners similarly shared in the construction of our own Simon Fraser
Health Unit on Wilson Avenue. The Coquitlam letter outlines the history
of the building and the involvement of the Province.

The current proposal to convey the building to B.C.B.C. has
been proposed mainly to overcome the problem of responsibility for
repairs, maintenance, and upkeep, etc. Although the original construction
was carried out with Covernment Grants and the Provincial Department of Health
was tenant in the building, the Municipalities have had the responsibility
for providing certain Capital Costs and the responsibility for structural
maintenance and normal redecorating, etc. In the case of our own building,
we have not had a request for work for several years and I anticipate that
we will be required to spend some money in the near future. I expect that
Coquitlam are anticipating the same problem and therefore agreed that the
building should be transferred to the Province so that the Municipalities
will not have the responsibility for this future cost. The initial advantage
therefore, is that it will clearly establish the responsibility for maintenance
upkeep or future additions to the building will be clearly the responsibility
of the B.C. Building Corporation.

The second advantage to the Municipalities is that B.C, Building
Corporation is paying full General Taxes to Municipalities for their buildings,

You will note in the attached information from Coquitlam, the
Draft Deed places a Restrictive Covenant on the land which virtually guarantees
return of the property in the future as the property must be used by the
Province for Public Health or Mental Health care and gives the Municipality
the option to buy the land back for $1.00 if it is mot operated for this
purpose or the option of buying it for $1.00 after = period of 50 years, I
believe, therefore, that the Municipal position is fairly secure.

The reason that we are being asked to coneur with this proposal is
because of our investment in the Coquitlam building. We have had similar
enquiries from the Province in connection in connecttion with our own bullding
and I am sure that if the Coquitlam transfer is resmlved that the Building
Corporation will be approaching the City for a similar arrangement on the
Port Coquitlam building.