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Vancouver Council Orders Demolition of Dunsmuir Hotel Amid Concerns of Neglect

On December 18, the Vancouver city council reached a unanimous decision to declare the former Dunsmuir Hotel a public safety threat, ultimately ordering its demolition. This action came as the building, located at 500 Dunsmuir Street, showed signs of severe dilapidation, raising fears of a potential “catastrophic collapse.”

The property is owned by Holborn Properties, which has been granted a 21-day period to carry out the demolition at its own expense. The Dunsmuir Hotel, a significant structure that has been vacant since 2013, has been plagued by deteriorating conditions, including a leaking roof that has gone unrepaired for over a decade.

Despite its inclusion on Vancouver’s Heritage Registry, the Dunsmuir Hotel does not hold a protected status under heritage designation laws, which complicates its future.

Calls for Accountability

Michael Geller, a retired architect and real estate consultant, emphasized the importance of holding the property’s owner accountable for the building’s neglected state. “It’s tragic that they allowed it to fall into disrepair after acquiring it, as it is truly a significant piece of architecture,” Geller remarked.

In response to the situation, the council has instructed city staff to explore legal actions against Holborn Properties for their apparent disregard for the well-being of the building and its heritage value. SFU program director Andy Yan noted it represents a severe case of “demolition by neglect,” stating, “The owner clearly was aware that they were purchasing a single-room occupancy hotel that provided affordable housing, and it now seems they are maneuvering towards demolishing it.”

During the council meeting, concern was raised regarding Holborn Properties’ prioritization of demolition over maintenance. Councillor Sarah Kirby-Yung pressed the city’s chief building official about the company’s sudden responsiveness regarding the demolition as opposed to the upkeep of the building. The official confirmed that the company had indeed shown urgency in pursuing demolition.

Holborn’s Defense

In a statement, Holborn Properties noted that their CEO, Joo Kim Tiah, was unavailable for comments as he spent the holiday with family. In an email to Global News, the company refuted claims that it allowed the building’s condition to worsen intentionally to prompt a demolition order. Instead, they asserted their intent to revitalize the property, mentioning that they had submitted three redevelopment proposals over the past decade, all of which were rejected by the city.

The company maintained that they were working with local officials to ensure that the vacant building complied with fire and life safety standards. Holborn noted that a structural report from mid-October stated while the building should not be occupied, it was not an immediate safety hazard nor did it necessitate immediate demolition.

Despite these claims, Geller expressed skepticism about Holborn’s true intentions, suggesting that they might prefer to start fresh rather than preserve the historical building. Housing advocate Jean Swanson echoed this sentiment, proposing that the city impose penalties on the property owner for neglecting the building.

Potential Financial Implications

Under the city’s Single Room Accommodation bylaw, significant fines could be levied for the removal of single-room occupancy units. It has been estimated that replacement fees for the lost rooms at Dunsmuir Hotel could exceed $50 million for the 167 rooms that would be eliminated.

Swanson urged the city to enforce the law, stating, “The council can levy penalties up to $300,000 per demolished unit and should take action.”

Addressing whether Holborn would pay the potential $50.1 million in replacement fees due to the loss of the Dunsmuir Hotel’s SRO rooms, the company denied this, claiming that the property had been reclassified from residential to commercial by the city in 2021, asserting that no fees were applicable.

Geller expressed concerns about the city’s lack of obligation to grant rezoning and questioned why Holborn should be permitted to rezone the property post-demolition. When asked about development plans under the current zoning regulations, Holborn acknowledged an oversupply of office space downtown but reiterated their intention to integrate 500 Dunsmuir into a comprehensive revitalization project aimed at benefiting the community.

As the situation unfolds, city officials will report back on possible avenues for seeking compensation related to any future rezoning applications that Holborn might pursue for the site. In the meantime, Holborn expressed agreement with the city’s decision to demolish the Dunsmuir Hotel and indicated that they are actively working to comply with the demolition deadline.

Source
globalnews.ca