DISTRICT OF COQUITLAM

MIT BRUNETTE AVENUE, COQUITLAM, B.C. PHONE 524-3612

VIK 169 MAYOR J.L. TONN

December 19, 1978

DELIVERED BY HAND

City of Port Coquitlem
City Hall

2272 McAllister Avenue
Port Coquitlam, B.C.

Attention: Mr. L. D. Pollock
City Administrator

Dear Sirs:

Rez__ Simon Fraser Health Unit - Our File: 42/2/14

: Pursuant to my recent telephone conversation with yourself I outline
the background pertaining to my negotiations with the British Columbia Building
Corporation as to the sale for $1.00 of the Simon Fraser Health Unit building

- and land pertaining thereto tocated at 540-544 Poirier Street, Coquitlam, B.C.

legally described as Block P, Lot 357, Group 1, Plan 21332, New Westminster
District.

The Simon Fraser Health Unit building was built on the District of
Coquitlam land above mentioned in the early 1960's, mainly, but not totally, to
house Provincial emoloyees who provide Health Services to the communities of
tne District of Coquitlam, Port Coquitlam and Port Moody. Construction took
place in two sections; cne section three years prior to the other. Some 2,235
square feet of leasable aren within the subject building was built at the sole
cost of this District to house staff of the District of Coquitlam who were then
but are no longer responsible for administering Welfare services,

The cost of constructing the Heaith Services portion was financed
from contributions received from the Federal Government through the
Provinee; freta the Province, from the three above mentioned municipalities
and from three Health egencies, While the title to the land is in the District's
name, a b.reficial interest of the Province, and to a certain extent the two

cities of Fert Moody and Port Coquitlam exist, as they have contributed to

City of Port Coquitlam December 19, 1978
Page 2 Pile: 42/2/14

capital cost of the Health Services portion. My research shows that the
contribution to building by the City of Port Moody was in the neighbourhood of
$6,293.00 and by the City of Port Coquitlam in the neighbourhood of $6,072.00.
The Distriet of Coquitlam, as part of the original arrangement, entered into a
20-year lease with the Province for nominal rent to accommodate Health
Services, such lease to be renewable for a further 20 years at the option of the
Province,

In 1976, the Province took over welfare administration from the
municipalities, and Coquitlam District leased the 2,255 square fest from the
Welfare Services portion to the Province. In the early part of 1978 the Human
Resources staff were relocated by the Province to other quarters.

The Medical Health offices of the Proviacial government pertaining
to the Simon Fraser Health Unit for reasons such as central location, neerness
to bus terminal and desire to consolidate staff is very anxious to acquire the
whole space in this building. Negotiations have taken Dlace with B.C.B.C. to
sell the land, which would inelu-* the building, for the Purpose of oublic health
or mental health care for the sum of $1.00, w*. 5 a restrictive cc cenant placed
on the title of the land, if it is sold to B.C.i..., stating that the District o:
Coquitlam woutd have the option to buy the land back for $1.00 if the building
was not operated for the purpose of public health o> mental health, or, after a
period of 50 years from registration. (A copy of the proposed deed with the
conditions pertaining to the restrictive covenant is attached to this letter). The
advantage which would accrue to the three municipalities is that there would be
ac further requirement to look after Structural maintenance,

Yours “ il, .

Henry G. Castillou
Municipal Solicitor
HGC/jm
Encls,