Deteriorating to the point it was at risk of a “catastrophic collapse”, Vancouver city council voted unanimously on Dec. 18 to declare the former Dunsmuir Hotel a danger to public safety, and ordered its demolition.
Holborn Properties, which owns the structure at 500 Dunsmuir Street through a subsidiary, has been given 21 days to do the work at its own expense.
The 115-year-old Dunsmuir House has sat vacant since 2013, its roof leaking for more than a decade.
Holborn will also be required “to preserve certain heritage features to be reused in any future development of the site,” if it can be done safely.
While the building is listed on Vancouver’s Heritage Registry, it is not protected under heritage designation laws.
Retired architect and real estate consultant Michael Geller said the property’s owner needs to be held accountable.
“The fact they allowed it to become derelict after purchasing it is a tragedy because this really is a special building,” Geller said Friday.
Council has directed staff to report back on options for legal recourse against Holborn for the apparent neglect of 500 Dunsmuir and the loss of heritage.
SFU city program director Andy Yan told Global News it appears to be a case of “demolition by neglect.”
“Here is an owner who clearly knew that they were purchasing a single room occupancy hotel that was providing affordable housing – really now seemingly being able to get away with a demolition of the building,” Yan said.
Council heard Holborn Properties was preparing to move forward with demolition at 500 Dunsmuir.
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“So that’s the one thing they’ve been motivated to do with speed but not maintain the building – but they’re suddenly responsive and enthusiastic about demolishing it?” Coun. Sarah Kirby-Yung asked the city’s chief building official.
“It would appear so, yes,” replied Saul Schwebs at the Dec. 18 meeting.
Holborn Properties said CEO Joo Kim Tiah was spending the holidays with his family and unavailable for an interview this week.
In an emailed response to a series of questions from Global News, Holborn denied it let the heritage property slowly fall apart to force the city’s hand on demolition.
“From the outset, we have had plans to redevelop this location and have submitted three proposals over the course of 10 years to the City, each with a view to revitalization that would benefit the community,” Holborn said via email, acknowledging none of the proposals had been successful.
Holborn said it has worked with local authorities to ensure the vacant building was up to fire and life safety code.
The company added it commissioned its own structural report in mid-October, which concluded that while 500 Dunsmuir should not be occupied and removal considered, it was not a public safety hazard and did not need to be demolished right away.
“In my opinion, Holborn did not want to conserve this building and incorporate it into a development,” Geller told Global News Friday. “They wanted to have a clean slate.”
Housing advocate and former Vancouver councillor Jean Swanson said there should be some sort of penalty imposed on the building’s owner.
Under the city’s Single Room Accommodation bylaw, fines can be levied for each SRO room removed.
At Dunsmuir House, SRO replacement fees could top $50 million for the 167 rooms lost.
“It says council can charge up to $300,000 per unit of demolished SROS and I think the city should use it,” Swanson told Global News in an interview.
When asked if it was prepared to pay SRO replacement fees of $50.1 million as per the city of Vancouver’s SRA bylaw for the 167 Dunsmuir House rooms lost due to neglect, Holborn said no fee is applicable.
Geller said the City of Vancouver is under no obligation to permit a rezoning and questioned why the owner should be allowed to rezone the property after demolition.
When asked if it would develop an office building at the site under the current Downtown District C2 zoning, Holborn said downtown Vancouver currently has a surplus of office space.
“Our plan has always been to incorporate 500 Dunsmuir into a broader vision for revitalization that would benefit the community, with our three past proposals incorporating housing,” the company said in an email.
Holborn said it remains committed to creating a project that brings benefit to the neighbourhood and broader community.
“I hope the city will in fact drive a hard bargain because Holborn cannot develop residential on this site without a rezoning,” said Geller.
City staff have also been tasked with reporting back to council on any avenues to seek compensation as part of future rezoning applications Holborn may pursue for Dunsmuir House.
Holborn said it accepts the city’s decision to have the building demolished and is working diligently to meet the 21-day deadline.