DISTRICT OF SQUAMISH · 2 storey townhouse units 12 12 2 bedroom apartments 12 12 1 bedroom apartments 44 44 8 Ground floor live-work 468.8 m2 (5,046.29 sq ft) 11 Commercial space

DISTRICT OF SQUAMISH REPORT TO: Council FOR: Regular

PRESENTED: June 19th FILE: 2005-41 FROM: Planning Department SUBJECT: Bylaw No. 1911, 2005 - Comprehensive Development Zone No. 37 37870 Cleveland Avenue – Block 20 Recommendation:

That the District of Squamish Council give First and Second Reading to District of Squamish Zoning Bylaw No. 1342, 1995, Amendment Bylaw No. 1911, 2005 (Comprehensive Development Zone No. 37) And That a Public Hearing Date for Bylaw No. 1911, 2005 (Comprehensive Development Zone No. 37) be set for July 3rd, 2007 at 7:30pm in the District of Squamish Council Chambers;

CAO Recommendation: The CAO concurs with the Planning Department report and recommendation. K. Anema, CAO 1. Background:

The District of Squamish has received an application to develop the property located at 37870 Cleveland Avenue, referred to as Block 20. The site is located between Loggers Lane and Cleveland Avenue, North of Vancouver Street and South of Main Street. The site is the current location of Pacific West Systems (Pac West) and is used for wholesaling, construction materials supply, construction oriented manufacturing, and other similar uses. The property is owned by BC Rail Properties, and is zoned Highway Commercial (C-7). This application was received on September 30th, 2005, shortly before the Smart Growth on the Ground Concept Plan was adopted by Council. In terms of reference Policies, a large part of the project work was based on the Downtown 2000 Plan and the 2003 Update, as well as some of the draft Smartgrowth on the Ground work.

Bylaw No. 1911, 2005 – Block 20 37870 Cleveland Ave.

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2. Project Information:

The development project proposes a multi-use, multi building development on Block 20 as follows: Project summary Parking

requirement as per the Zoning Bylaw

2 storey live/work units 14 14 2 storey townhouse units 12 12 2 bedroom apartments 12 12 1 bedroom apartments 44 44 8 Ground floor live-work 468.8 m2 (5,046.29 sq ft) 11 Commercial space at grade 901.1 m2 (9,699.68 sq ft) 20 Parking: Provided = 125 stalls Required = 113 The project layout consists of six buildings ranging from one-to-four storeys, placed over a semi-underground parking structure. The site is designed to maintain commercial activity at grade in a combination of commercial/retail/service space, as well as up to eight live-work studios. Site layout is based on an open permeable concept, with full public access and extensive hard and soft landscaping between the 6 buildings. A public surface parking area is placed in the northwest corner of the site (Cleveland Ave and Main Street). This area will accommodate up to 18 cars, and is planned with decorative pavers or grass-crete. The project architects have incorporated features like electrical outlets in the parking area so that the space can host outdoor public events like the Squamish Farmers market. Smart Growth on the Ground: Smart Growth on the Ground assigns Block 20 to the Civic-Cultural-Educational (CCE) zone. While the importance of the CCE zone to Squamish is central and important to the development of the downtown, at the time the designations were assigned, Senior Staff and BCR Properties had undertaken a series of land-exchange negotiations with the intent of identifying lands for the expansion of Capilano College. The SGOG process needed to finalize the Land Use Designation Map, but there was acknowledgement that in terms of BCR Properties, a redistribution of land designations would likely occur. Between September 2005, when the application was submitted, and the Spring of 2007, discussions around land exchange between BCR Properties and the District of Squamish regarding Capilano Collage have progressed so that redevelopment and redesignation of Block 20 has become supportable by Municipal Staff, and feasible for rezoning consideration.


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The ‘replacement’ SGOG designation that staff have applied to the site is the Artisan Light Use Mixed Industrial category, which outlines the following: Permitted uses:

• Studio/manufacturing at grade • Office use above grade • Retail at grade (secondary use) • Residential use above grade (secondary use)

Intensity: • .04 – 1.0 Floor Space Ratio • 0-14 units per acre

Official Community Plan Designation: Downtown South

The OCP designates this parcel in the Downtown South area, which historically was a transition zone between commercial and industrial activity, but which has consistently had residential use as well. The Downtown South designation proposes: “…a mixture of light and service industrial uses and mixed uses involving commercial and residential components.” Affordable Housing and Amenity Contribution: Although there was no existing Affordable Housing Policy at the time this application was submitted, the applicants were made aware of a Council expectation that some form of Affordable Housing, and Amenity contribution would be assessed as part of the application package. Over the past 15 months, Staff and the applicants have negotiated the following contributions: Affordable Housing

• 10% of the residential gross area to be allocated towards resident restricted units;

• The allocation will consist of a range of unit types; • Units will be delivered at 90% of market value, and at no less than cost; • Units will be available to eligible purchasers (determined by the District) • Value increase in the restricted units would be tied to Core Consumer

Price Index

Amenity Contribution: In exchange for an added density of 0.39 FAR the following amenities will be provided:

• 1,500 sq ft (139.5 m2) of at-grade commercial space dedicated to the District of Squamish at the northeast corner of the site for non-profit use such as an art gallery or a day care;

• a dedicated multi-use exterior space on the northwest corner of the site for


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uses such as the weekend Farmers Market, or 18 ‘green-surface’ public parking stalls.

5. Department Comments: Staff support the proposed development. It achieves a number of municipal goals

including densification of the downtown, municipal amenities including an outdoor market/public parking space, an indoor civic amenity area and an affordable housing component. The development includes commercial and retail space at grade, with a range of housing units throughout the development and the development has been planned with adequate provision of parking.

The proposed development for Block 20 delivers a number of municipal goals for

the downtown, and Staff support the proposed comprehensive development zone.

6. Policy Implication This development is a ‘between policy’ project. It was based on policy that has

since been updated by Smart Growth on the Ground. In assessing the development, BCR Properties were advised of the importance of the ‘Civic, Cultural, Educational’ designation. In order to keep the development moving forward, BCR Properties and Senior staff have negotiated alternate BCR property designations, to ensure that the net requirements outlined in SGOG can be met.

Staff are comfortable that rezoning this site to Comprehensive Development No.

37 will not have any negative policy implications. 7. Recommendation:

That the District of Squamish Council give First and Second Reading to District of Squamish Zoning Bylaw No. 1342, 1995, Amendment Bylaw No. 1911, 2005 (Comprehensive Development Zone No. 37) And That a Public Hearing Date for Bylaw No. 1911, 2005 be set for July 3rd, 2007;

__________________________________________ Sabina FooFat Planner Attachment A: Bylaw No. 1911, 2005 Attachment B: Draft Housing Agreement, for consideration following Third Reading of

Bylaw No. 1911, 2005

Location Map

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Subject property

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DISTRICT OF SQUAMISH BYLAW NO. 1911, 2005. A bylaw to amend the District of Squamish Zoning Bylaw No. 1342,1995.

WHEREAS the District of Squamish deems it necessary and appropriate to amend Zoning Bylaw No. 1342, 1995;

NOW THEREFORE the Council of the District of Squamish, in open meeting assembled, enacts as follows:

1. This bylaw may be cited as "District of Squamish Zoning Bylaw No. 1342, 1995, Amendment Bylaw (Comprehensive Development No. 37 Zone) No. 1911, 2005."

2. District of Squamish Zoning Bylaw No. 1342, 1995 is amended as follows:

By rezoning the parcel of land in the District of Squamish, legally described as:

Lot B Block 20 District Lot 486 Plan 20801

and located at 37870 Cleveland Avenue, Squamish, British Columbia, as shown shaded on the sketch attached as Schedule "A" to this bylaw; from Light Industrial (I-1) zone to Comprehensive Development 37 (CD-37) Zone.

3. District of Squamish Zoning Bylaw No. 1342, 1995 is further amended by

adding the following after Section 14FF: “SECTION 14GG COMPREHENSIVE DEVELOPMENT ZONE 37 (CD-37) 14GG.1A Permitted Uses

(a) accessory uses; (b) artisan studio; (c) arts and culture; (d) business and professional offices; (e) child care facility; (f) educational services; (g) entertainment subject to Section 4.25;

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(h) fitness centre; (i) off street parking and loading; (j) outdoor market; (k) personal service establishments; (l) Townhouse, Apartment, and Live-Work Dwelling units

subject to section 4.16 with a maximum of 58 units (plus another 24 units if development meets requirements of 14GG1.B(c));

(m) restaurant; (n) retail store;

14GG.1B Community Amenities Notwithstanding section 14GG.4 below, the maximum floor area ratio

(FAR) may be increased to 1.39 if: (a) the Owner provides 129m2 (1,388.60 square feet) of Civic Multi-Use

space for a not-for-profit society approved by the District free of charge in perpetuity, either secured by s. 219 covenant or transferred to the District;

(b) the Owner provides 1,046.2 m2 (11,261.6 sq ft) of outdoor multi-use plaza for an Outdoor Market to the District free of charge in perpetuity, either secured by s. 219 covenant or transferred to the District; and

(c) the Owner enters into a housing agreement under section 905 of the Local Government Act and covenant under section 219 of the Land Title Act with the District to provide at least seven Apartment units, and one Live-Work dwelling unit, which units must have an area of not less than 70 m2 (753.5 ft2) in accordance with the terms of Housing Agreement Bylaw No. 2005, 2007 restricting the selling price and the qualified occupants of the restricted Townhouse, Apartment, and Live-work Dwelling units, and such agreement and covenant is filed as a legal notation against title to those units and registered against title to those units, in priority to all financial liens, charges and encumbrances.

14GG.2A Outdoor Market definition For the purposes of this zone, “Outdoor Market” means an outdoor

location where provisions are sold by local providers or wholesalers. 14GG.2B Civic Multi-Use For the purposes of this zone, “Civic Multi-Use” means a space that

permits day-care, after-school programs, non-profit professional services, arts and culture use, heritage and museum use, non-profit summer school, and non-profit continuing education programs.

14GG.2C Live-work For the purposes of this zone, “Live-Work” means a space that is a flexible

unit, that permits residential use, and also permits the resident of the unit

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to undertake income-generating activity in the area of artisan use, professional consulting, personal service establishment use, retail sales, and small-scale manufacturing.

14GG.3 Height of Principal Buildings No principal building shall exceed a height of 13.7 meters (45 ft). 14GG.4 Density

(a) The lot coverage shall not exceed 40.0% of the total lot area. (b) The maximum site Floor Area Ratio (FAR) is 1.0.

14GG.5 Lot Area The area of the CD-37 zone lot must be at least 0.67 ha (1.65 acres). 14GG.6 Siting requirements

(a) Cleveland Lot Line Setback: No principal building shall be located within 3 meters (9.8 ft) of the lot line;

(b) Main Street Lot Line Setback: No principal building shall be located within 2.0 meters (6.56 ft), of the lot line, with a maximum 0.5 meter (1.6 ft) balcony projection;

(c) Loggers Lane Lot Line Setback: No principal building shall be located within 3.0 meters (9.8 ft) of the lot line with a maximum 1.0 meter (3.28 ft) balcony projection;

(d) Vancouver Street Lot Line Setback: No principal building shall be located within 2.0 meters 6.56 ft) of the lot line, with a maximum 0.5 meter (1.6 ft) balcony projection.

14GG.7 Fencing Fencing shall be provided in accordance with Section 4.6 of District of

Squamish Zoning Bylaw No. 1342, 1995. 14GG.8 On-site Parking No less than 108 on-site parking spaces for buildings and uses shall be

provided. Parking stall design and location must comply with Section 40 of District of Squamish Zoning Bylaw No. 1342, 1995.

14GG.9 On-site Loading No less than two on-site loading bays shall be provided. Loading bay

design and location must comply with Section 41 of District of Squamish Zoning Bylaw No. 1342, 1995.

14GG.10 Accessory Buildings All accessory buildings shall comply with the requirements of Section 4.4

of District of Squamish Zoning Bylaw No. 1342, 1995.

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14GG.11 Screening and Landscaping Unless approved by development permit, screening and landscaping must

be provided in accordance with Section 4.7 of District of Squamish Zoning Bylaw No. 1342, 1995.

14GG.12 Comprehensive Development Plan All buildings, structures and uses shall comply with the size, shape, siting

and height as designated on the approved comprehensive development plan attached as Schedules “B”, “C”, and “D” to this Bylaw and labeled A1.01, A3.01, and L1 respectively.

14GG.13 Development Permit Notwithstanding sections 14GG.4, 14GG.6 and 14GG.12, the size, shape

and siting requirements for all buildings and structures may be amended in accordance with a Development Permit.


amending the zoning map, being Schedule "A" to the District of Squamish Zoning Bylaw No. 1342, 1995 to reflect the rezoning.


inserting as a new Schedule "B", “C” and “D” the drawings labeled "A1.01", “A3.01” and “L1” attached hereto.

READ A FIRST AND SECOND TIME this 19th day of June 2007. PURSUANT TO THE LOCAL GOVERNMENT ACT, NOTICE WAS ADVERTISED ON June 22nd, 2007 AND June 29th, 2007. PUBLIC HEARING HELD on the 3rd day of July 2007. READ A THIRD TIME this 3rd day of July 2007. ADOPTED this th day of 2007.

________________________________________ Ian Sutherland, Mayor

________________________________________ R. Arthurs, Director of Administrative Services

Schedule “A” to District of Squamish Zoning Bylaw No. 1342, 1995, Amendment Bylaw 1911, 2005

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Rezone from Light Industrial (I-1) to Comprehensive Development No. 37 (CD-37) zone. (NOTE: Schedule B C and D available in PDF)

Block 20 Housing Agreement DRAFT 2005-41

LAND TITLE ACT FORM C (Section 233) Province of British Columbia

GENERAL INSTRUMENT-PART 1 (This area for Land Title Office use) Page 1 of 3 Pages

1. APPLICATION: (Name, address, phone number and signature of applicant, applicant’s solicitor or agent) Applicant’s Solicitor [Covenant & Housing Agreement]

2. PARCEL IDENTIFIER(S) AND LEGAL DESCRIPTION(S) OF LAND:*

(PID) (LEGAL DESCRIPTION) 003-783-324 Lot B Block 20 District Lot 486 Plan 20801

3. NATURE OF INTEREST:*

Description Document Reference Person Entitled to Interest (page and paragraph)

Section 219 Covenant and Housing Agreement (s. 905 Local Government Act)

Entire Instrument Transferee

4. TERMS: Part 2 of this instrument consists of (select one only)

(a) Filed Standard Charge Terms D.F. No.

(b) Express Charge Terms X Annexed as Part 2 (c) Release __ There is no Part 2 of this Instrument.

A selection of (a) include any additional or modified terms referred to in Item 7 or in a schedule annexed to this instrument. If (c) is selected, the charge described in Item 3 is released or discharged as a charge on the land described in Item 2.

5. TRANSFEROR(S):*

BCR PROPERTIES LTD. (Inc. No. 278246)

6. TRANSFEREE(S): (including postal address(es) and postal code(s))*

DISTRICT OF SQUAMISH, 37955 – 2nd Avenue, PO Box 310, Squamish, B.C. V8B 0A3

Block 20 Housing Agreement 2005-41


GENERAL INSTRUMENT-PART 1 Page 2

7. ADDITIONAL OR MODIFIED TERMS:*

N/A

8. EXECUTION(S):**This instrument creates, assigns, modifies, enlarges, discharges or governs the priority of the interest(s) described in Item 3 and the Transferor(s) and every other signatory agree to be bound by this instrument, and acknowledge(s) receipt of a true copy of the filed standard charge terms, if any.

Officer Signature Execution Date Transferor Signature

Y M D

OFFICER CERTIFICATION:

(as to both signatures)

2007 ___ ___

BCR PROPERTIES LTD. by its authorized signatories: Name: Name:

Transferee Signature


2007 ___ ___

DISTRICT OF SQUAMISH by its authorized signatory(ies): Mayor: Ian Sutherland Director of Administrative Services: Robin Arthurs

Your signature constitutes a representation that you are a solicitor, notary public or other person authorized by the Evidence Act, R.S.B.C. 1996, c.124, to take affidavits for use in British Columbia and certifies the matters set out in Part 5 of the Land Title Act as they pertain to the execution of this instrument. * If space insufficient, enter “SEE SCHEDULE” and attach schedule in Form E. ** If space insufficient, continue executions on additional page(s) in Form D.

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TERMS OF INSTRUMENT – PART 2

SECTION 219 COVENANT AND HOUSING AGREEMENT

THIS AGREEMENT dated for reference June ______, 2007 is

BETWEEN:

BCR PROPERTIES LTD. (Inc. No. 278246), #506 – 221 West Esplanade North Vancouver, B.C. V7M 3J3

(the “Owner”) AND:

DISTRICT OF SQUAMISH, a municipal corporation pursuant to the Community Charter, having its offices at 37955 – 2nd Avenue, PO Box 310, Squamish, B.C. V8B 0A3

(the “District”)

GIVEN THAT:

A. The Owner is the registered owner in fee simple of the land and improvements thereto located at 37870 Cleveland Avenue, Squamish, B.C. and legally described in Item 2 of Part 1 of the Land Title Act Form C to which this Agreement is attached and which forms part of this Agreement (the “Land”);

B. The Owner and the District wish to enter into this agreement to restrict the use, occupancy, initial prices and resale prices of certain housing units to be constructed on the Land, on the terms and conditions of this Agreement, to have effect as both a covenant under section 219 of the Land Title Act and a housing agreement under section 905 of the Local Government Act;

THIS AGREEMENT is evidence that in consideration of $1.00 and other good and valuable consideration paid by the District to the Owner (the receipt of which the Owner acknowledges), the Owner covenants and agrees with the District, in accordance with section 905 of the Local Government Act and section 219 of the Land Title Act, as follows:

Definitions

1. In this agreement the following terms have the following meanings:

(a) “CCPI” means the Core Consumer Price Index for Canada published from time to time by the Bank of Canada, or its successor in function.

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(b) “Change in CCPI” means the percentage change in the monthly CCPI published immediately prior to the date of Previous Sale to the monthly CCPI published immediately prior to the date the purchase and sale agreement is executed for the next sale.

(c) “Development” means the development of the Land contemplated by the Development Permit.

(d) “Development Permit” means Development Permit number 237 issued or to be issued by the District in respect of the development of the Land.

(e) “Family” means the immediate family of a Qualified Occupant, which includes a spouse, children, parents, and siblings.

(f) “First Buyer” means the person whom the Interest in a Restricted Unit is first sold after issuance of the occupancy permit for the Restricted Unit by the District.

(g) “Interest” means the property interest of the Owner in a Restricted Unit.

(h) “Land” means the land described in Item 2 of the Land Title Act Form C to which this agreement is attached, and any part into which that land is Subdivided.

(i) “LTO” means the Lower Mainland Land Title Office or its successor.

(j) “Initial Maximum Sale Price” means an amount equal to 90% of the average first sale price (excluding, for clarity, all taxes, adjustments and commissions) of the Non-Restricted Units that are single family dwellings, that have floor areas between 70 m2 and 118 m2 and that have been sold as of the date that is 60 days following the issuance of an occupancy permit by the District for the Restricted Unit.

(k) “Maximum Price” means the Initial Maximum Sale Price, in the case of the sale of the Restricted Unit to the First Buyer, and means the Maximum Price, Resale, in the case of a subsequent sale.

(l) “Maximum Price, Resale” means the Previous Sale Price plus the Previous Sale Price multiplied by the Change in CCPI, provided that if the Change in CCPI is negative or cannot be determined, the Maximum Price, Resale will be the Previous Sale Price.

(m) “Median Income” means the dollar amount that marks the midpoint of annual income of households located within the District of Squamish, B.C., ranked by amount of income, as determined by data from Statistics Canada for the relevant calendar year.

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(n) “Non-Restricted Units” means the residential dwelling units to be constructed on the Land as part of the development contemplated by the Development Permit that are not Restricted Units determined in accordance with this Agreement.

(o) “Option/RFR” means the option to purchase and right of first refusal to be granted by the Owner to the District in respect of each Restricted Unit in the form attached as Schedule C.

(p) “Owner” means the Transferor described in the Land Title Act Form C to which this agreement is attached, and any subsequent owner of the Land or of any part into which the Land is Subdivided, and includes any person who is a registered owner in fee simple from time to time of a lot, strata lot or parcel containing a Restricted Unit.

(q) “Parcel” means a lot, block or other area in which land is held or into which land is subdivided and, includes, a strata lot under the Strata Property Act (British Columbia).

(r) “Previous Sale” means the most recent sale of the Restricted Unit.

(s) “Previous Sale Price” means the sale price of the Previous Sale.

(t) “Qualified Occupant” means an individual who:

(i) at the time they are approved by the Qualifying Body, has either resided within the boundaries of the District of Squamish for the previous 12-month period or is employed within the District of Squamish and has been so employed for at least 35 hours per week over the previous 6-month period;

(ii) has been pre-approved for a mortgage in relation to a Restricted Unit;

(iii) has a gross income of no greater than 80% of the Median Income based on the individual’s tax return filed with Canada Customs and Revenue Agency for the most recent taxation year;

(iv) does not own any real property or any interest therein anywhere in the world; and

(v) has been approved as meeting criterion (i) to (iv) by the Qualifying Body, except that the Qualifying Body may relax criterion (iii) above, though it must give priority to those individuals able to meet criterion (iii).

(u) “Qualifying Body” means the District or other body or entity designated by the District for the purpose of reviewing and approving whether an individual is a Qualified Occupant prior to occupying a Restricted Unit.

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(v) “Restricted Units” means the eight (8) residential dwelling units to be constructed on the Land, of which one (1) will be constructed as a ‘live-work unit’ and seven (7) will be constructed as ‘apartment units’ as those terms are used in the District Zoning Bylaw, and “Restricted Unit” means either of them, as the context requires, and in the context of the sale of a Restricted Unit, includes the Parcel upon which the Restricted Unit is located.

(w) “Subdivide” means to divide, apportion, consolidate or subdivide the Land, or the ownership or right to possession or occupation of the Land into two or more lots, strata lots, parcels, parts, portions or shares, whether by plan, descriptive words or otherwise, under the Land Title Act, the Strata Property Act or otherwise, and includes the creation, conversion, organization or development of “cooperative units” or “shared interests in land” as defined in the Real Estate Act.

Use of Land and Construction of Restricted Units

2. The Land will not be developed, and no building or structure will be constructed on the Land:

(a) except in accordance with the Development Permit;

(b) until the Owner has identified the Restricted Units in accordance with section 6; and

(c) unless, as part of and concurrently with such construction and development, the Owner also designs and constructs the Restricted Units to completion, in accordance with the Development Permit and the plans and specifications attached thereto or referenced therein, a building permit issued by the District and to at least the same standard and quality of construction and finishing as for the Non-Restricted Units.

3. The Land will not be Subdivided, except by registration in the LTO of a strata plan converting each residential dwelling unit within the building to be constructed on the Land as contemplated by the Development Permit into strata lots, as shown generally on Schedule A.

4. No building or structure on the Land may be occupied or used for any purpose until and unless:

(a) the Land is Subdivided in the manner permitted by section 3;

(b) the District has issued occupancy permits for all of the Restricted Units designed and constructed in accordance with section 2; and

(c) the Owner has granted to the District the Option/RFR and registered the Option/RFR against title to the Restricted Units in the LTO, in priority to all

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financial liens, charges, encumbrances and legal notations (including, options to purchase, rights of first refusal and leases).

Partial Discharge

5. If:

(a) the District has issued occupancy permits for all of the Restricted Units,

(b) the Owner is not in breach of any of its obligations under this agreement, and

(c) if the Land is subdivided under the Strata Property Act, the strata corporation has agreed in writing with the District that the strata corporation will not take any action that would result in an inability to rent or lease the Restricted Units in accordance with this agreement or would render such rental or lease a breach of the strata corporation bylaws; and

(d) the option to purchase and right of first refusal has been granted and registered in accordance with section 4(c)

the District will, at the request of the Owner and at the Owner’s sole expense, execute and deliver to the Owner discharges of this agreement in registrable form, discharging this agreement from title to each parcel (including strata lots) that does not contain a Restricted Unit.

Determination, Use and Occupancy of Restricted Units

6. Prior to the issuance of the Development Permit, the Owner will notify the District as to which residential dwelling units in the Development contemplated by the Development Permit will be the Restricted Units, provided that the floor area of each Restricted Unit will be at least equal to the median floor area of the other comparable dwelling units within the Development.

7. Each Restricted Unit:

(a) may only be used as a permanent residence;

(b) must be occupied as a permanent residence by at least one Qualified Occupant; and

(c) may only be occupied by a Qualified Occupant who has been approved as a Qualified Occupant by the Qualifying Body, except that the Family of such Qualified Occupant who occupies the Restricted Unit as a permanent residence may also occupy the Restricted Unit.

8. Within ten days after receiving notice from the District, the Owner will in respect of each Restricted Unit, deliver, or cause to be delivered, to the District a statutory declaration, in

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the form attached as Schedule ‘B’ or such other form as may be determined from time to time by the District, sworn by the Owner, or a director or officer of the Owner, containing all of the information required to complete the statutory declaration. The District may request such a statutory declaration in respect of a Restricted Unit no more than four times in any calendar year. The Owner hereby irrevocably authorizes the District to make such inquiries as it considers necessary and reasonable in order to confirm that the Owner is complying with this agreement, and irrevocably authorizes and directs the recipient of the request for information from the District to provide such information to the District.

Sale and Rental Restrictions

9. The Owner will not sell its Interest in a Restricted Unit except in accordance with the terms and conditions of this agreement. For clarity, where the Owner bought the Restricted Unit as a Qualified Occupant, that Owner may only sell its Interest in a Restricted Unit to a Qualified Occupant.

10. The Owner will not accept any offer to purchase its Interest in a Restricted Unit for a purchase price exceeding the Maximum Price.

11. The Owner will give prior written notice of this Agreement to any person to whom it proposes to sell or otherwise dispose (as that term is defined in the Interpretation Act (British Columbia)) of its Interest in a Restricted Unit.

12. The Owner will not rent or lease any Restricted Unit except to a Qualified Occupant in accordance with section 7 and except in accordance with the following additional conditions:

(a) the Restricted Unit will be used or occupied only pursuant to a Tenancy Agreement;

(b) the term of the Tenancy Agreement will not exceed 1 year, except if the units are rented by the Developer to a Qualified Occupant;

(c) the monthly rent payable for the Restricted Unit will not exceed the Initial Maximum Rent, except that the Owner may, subject to the provisions of the Residential Tenancy Act (British Columbia), increase the rent payable for the Restricted Unit annually, beginning with the first anniversary of the day on which the occupancy permit was issued by the District for the Restricted Unit, and thereafter on each successive anniversary date, by an amount determined by multiplying the rent payable for the Restricted Unit at the time of the proposed rent increase by the percentage change in the CCPI since the last anniversary date;

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(d) the Owner will not require the Tenant to pay any extra charges or fees for use of any common property, limited common property, or other common area, or for sanitary sewer, storm sewer, water utilities, property taxes and similar services.

(e) the Owner will attach a copy of this agreement to the Tenancy Agreement;

(f) the Owner will include in the Tenancy Agreement a clause requiring the Tenant to comply with the use and occupancy restrictions contained in section 7 of this agreement;

(g) the Owner will include in the Tenancy Agreement a clause entitling the Owner to terminate the Tenancy Agreement in accordance with the Residential Tenancy Act (British Columbia) if the Tenant uses or occupies, or allows use or occupation of, the Restricted Unit in breach of any of the use and occupancy restrictions contained in this agreement;

(h) the Tenancy Agreement will provide that the Tenant will not sublease the Restricted Unit or assign the Tenancy Agreement, without the consent of the Owner; and

(i) the Owner will deliver a copy of the Tenancy Agreement to the District upon demand from time to time.

13. The District may, in its sole discretion, provide written consent to the Owner from time to time to do something that is otherwise not permitted under this agreement, on such terms and conditions as the District considers desirable.

Marketing Obligations and Lack of Offers for Restricted Unit

14. The Owner will cooperate with the District or other Qualifying Body in endeavouring to find purchasers for the Restricted Units. The Owner will adopt the same promotional materials and make the same marketing and sales efforts for the Restricted Units as for the Non-Restricted Units.

15. Provided the Owner has complied with its obligations under section 14, if, after 11 months following the date that is 60 days after the issuance by the District of an occupancy permit for a Restricted Unit, the Owner has not received an offer to purchase a Restricted Unit for the Initial Maximum Sale Price, the Developer may at any time within the 60 day period following that 11 month period give notice to the District of the lack of any offer, together with a statutory declaration sworn by the Owner or a director or officer of the Owner, that the Owner has received no such offer. If following delivery of such notice the District does not exercise its option under the Option/RFR in accordance therewith within the time provided thereunder, the District will execute a discharge of this agreement from title to the applicable Restricted Unit. The Owner will be responsible for preparing and registering such discharge in the LTO.

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Specific Performance

16. The Owner agrees that because of the public interest in ensuring that all of the matters described in this agreement are complied with, the public interest strongly favours the award of a prohibitory or mandatory injunction, or an order for specific performance or other specific relief, by the Supreme Court of British Columbia at the instance of the District, in the event of an actual or threatened breach of this agreement.

Notice of Housing Agreement

17. For clarity, the Owner acknowledges and agrees that:

(a) this Agreement constitutes both a covenant under section 219 of the Land Title Act and a housing agreement entered into under section 905 of the Local Government Act;

(b) the District is required to file a notice of housing agreement in the LTO against title to the Land; and

(c) once such a notice is filed, this agreement binds all persons who acquire an interest in the Land as a housing agreement under section 905 of the Local Government Act.

No Obligation to Enforce

18. The rights given to the District by this agreement are permissive only and nothing in this agreement imposes any legal duty of any kind on the District to any one, or obliges the District to enforce this agreement, to perform any act or to incur any expense in respect of this agreement.

No Effect On Laws or Powers

19. This agreement does not:

(a) affect or limit the discretion, rights, duties or powers of the District or the approving officer for the District under the common law or any statute, bylaw or other enactment nor does this agreement date or give rise to, nor do the parties intend this agreement to create, any implied obligations concerning such discretionary rights, duties or powers;

(b) affect or limit the common law or any statute, bylaw or other enactment applying to the Land; or

(c) relieve the owner from complying with any common law or any statute, regulation, bylaw or other enactment.

Indemnity

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20. The Owner hereby releases the District, and indemnifies and saves the District harmless, from and against any and all actions, causes of actions, suits, claims (including claims for injurious affection), costs (including legal fees and disbursements), expenses, debts, demands, losses (including economic loss) and liabilities of whatsoever kind arising out of or in any way due or relating to the granting or existence of this agreement, the restrictions or obligations contained in this agreement or the performance or non-performance by the Owner of this agreement that the District is or may become liable for, incur or suffer.

Priority

21. The Owner will do everything necessary, at the Owner’s expense, to ensure that this agreement will be registered against title to the Land in priority to all liens, charges and encumbrances registered or pending registration against title to the Land, save and except those specifically approved in writing by the District or in favour of the District.

Waiver

22. An alleged waiver of any breach of this agreement is effective only if it is an express waiver in writing of the breach. A waiver of a breach of this agreement does not operate as a waiver of any other breach of this agreement.

Interpretation

23. In this agreement:

(a) reference to the singular includes a reference to the plural, and vice versa, unless the context requires otherwise;

(b) reference to a particular numbered section or article, or to a particular lettered Schedule, is a reference to the correspondingly numbered or lettered article, section or Schedule of this agreement;

(c) article and section headings have been inserted for ease of reference only and are not to be used in interpreting this agreement.

(d) the word “enactment” has the meaning given to it in the Interpretation Act (British Columbia) on the reference date of this agreement;

(e) reference to any enactment is a reference to that enactment as consolidated, revised, amended, re-enacted or replaced, unless otherwise expressly provided;

(f) reference to a “party” or the “parties” is a reference to a party, or the parties, to this agreement and their respective successors, assigns, trustees, administrators and receivers;

(g) time is of the essence; and

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(h) reference to a “day”, “month” or “year” is a reference to a calendar day, calendar month, or calendar year unless otherwise expressly provided.

Further Acts

24. The Owner will do everything reasonably necessary to give effect to the intent of this agreement, including execution of further instruments.

Severance

25. If any part of this agreement is held to be invalid, illegal or unenforceable by a court having the jurisdiction to do so, that part is to be considered to have been severed from the rest of this agreement and the rest of this agreement remains in force unaffected by that holding or by the severance of that part.

No Other Agreements

26. This agreement is the entire agreement between the parties regarding its subject and it terminates and supersedes all other agreements and arrangements regarding its subject.

Enurement

27. This agreement binds the parties to it and their respective successors, heirs, executors and administrators.

Deed and Contract

28. By executing and delivering this agreement each of the parties intends to create both a contract and a deed executed and delivered under seal.

As evidence of their agreement to be bound by the above terms, the parties each have executed this agreement under seal by executing Part 1 of the Land Title Act Form C to which this agreement is attached and which forms part of this agreement.

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Schedule A

[Attach draft Strata Plan]

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Schedule B

Statutory Declaration

CANADA PROVINCE OF BRITISH COLUMBIA

IN THE MATTER OF A HOUSING AGREEMENT WITH THE DISTRICT OF SQUAMISH (“Housing Agreement”)

TO WIT:

I, __________________________ of ______________________, British Columbia, do solemnly declare that:

1. I am the owner of __________________ (the “Restricted Unit”), and make this declaration to the best of my personal knowledge.

2. This declaration is made pursuant to the Housing Agreement in respect of the Restricted Unit.

3. For the period from _______________ to _______________ the Restricted Unit was occupied only by the Qualified Occupants (as defined in the Housing Agreement) whose names and current addresses and whose employer’s names and current address appear below:

Name, addresses and phone numbers of Qualified Occupants:

4. If, under 3 above, I am not shown as an occupant of the Restricted Unit, the rent charged each month for the Restricted Unit is as follows:

a. the monthly rent on the date 365 days before this date of this statutory declaration: $_________ per month;

b. the rent on the date of this statutory declaration: $______________; and

c. the proposed or actual rent that will be payable on the date that is 90 days after the date of this statutory declaration: $______________.

5. I confirm that the I have complied with all of the obligations of the Owner (as defined in the Housing Agreement) under the Housing Agreement.

6. I make this solemn declaration, conscientiously believing it to be true and knowing that it is of the same force and effect as if make under oath and pursuant to the Evidence Act (British Columbia).

DECLARED BEFORE ME at the _______________, British Columbia, this _____ day of __________________

_____________________________________ A Commissioner for taking Affidavits for British Columbia

) ) ) ) )

__________________________________

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Schedule C – Option to Purchase and Right of First Refusal

END OF DOCUMENT

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Schedule B

Statutory Declaration

CANADA PROVINCE OF BRITISH COLUMBIA

IN THE MATTER OF A HOUSING AGREEMENT WITH THE DISTRICT OF SQUAMISH (“Housing Agreement”)

TO WIT:

I, __________________________ of ______________________, British Columbia, do solemnly declare that:

1. I am the owner of __________________ (the “Restricted Unit”), and make this declaration to the best of my personal knowledge.

2. This declaration is made pursuant to the Housing Agreement in respect of the Restricted Unit.

3. For the period from _______________ to _______________ the Restricted Unit was occupied only by the Qualified Occupants (as defined in the Housing Agreement) whose names and current addresses and whose employer’s names and current address appear below:

Name, addresses and phone numbers of Qualified Occupants:

4. If, under 3 above, I am not shown as an occupant of the Restricted Unit, the rent charged each month for the Restricted Unit is as follows:

a. the monthly rent on the date 365 days before this date of this statutory declaration: $_________ per month;

b. the rent on the date of this statutory declaration: $______________; and

c. the proposed or actual rent that will be payable on the date that is 90 days after the date of this statutory declaration: $______________.

5. I confirm that the I have complied with all of the obligations of the Owner (as defined in the Housing Agreement) under the Housing Agreement.

6. I make this solemn declaration, conscientiously believing it to be true and knowing that it is of the same force and effect as if make under oath and pursuant to the Evidence Act (British Columbia).

DECLARED BEFORE ME at the _______________, British Columbia, this _____ day of __________________

_____________________________________ A Commissioner for taking Affidavits for British Columbia

) ) ) ) )

__________________________________

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Schedule C – Option to Purchase and Right of First Refusal

END OF DOCUMENT


GENERAL INSTRUMENT-PART 1 (This area for Land Title Office use) Page 1 of 1 Pages

1. APPLICATION: (Name, address, phone number and signature of applicant, applicant’s solicitor or agent) Applicant’s Solicitor [Option /RFR]

2. PARCEL IDENTIFIER(S) AND LEGAL DESCRIPTION(S) OF LAND:*

(PID) (LEGAL DESCRIPTION)

~~ ~~

3. NATURE OF INTEREST:*

Description Document Reference Person Entitled to Interest (page and paragraph)

Option to Purchase Pages 3-5 Transferee

Right of First Refusal Pages 6-8 Transferee

4. TERMS: Part 2 of this instrument consists of (select one only)

(a) Filed Standard Charge Terms __ D.F. No. (b) Express Charge Terms _X_ Annexed as Part 2 (c) Release __ There is no Part 2 of this Instrument.

A selection of (a) include any additional or modified terms referred to in Item 7 or in a schedule annexed to this instrument. If (c) is selected, the charge described in Item 3 is released or discharged as a charge on the land described in Item 2.

5. TRANSFEROR(S):*

BCR PROPERTIES LTD. (Inc. No. 278246)

6. TRANSFEREE(S): (including postal address(es) and postal code(s))*

DISTRICT OF SQUAMISH, 37955 – 2nd Avenue, PO Box 310, Squamish, B.C. V8B 0A3 ______________________________________________________________________________

Block 20 – Option to Purchase – Right of first Refusal Jun 12, 2007 10:27 AM/CR

Page 2

LAND TITLE ACT FORM C (Section 233) Province of British Columbia GENERAL INSTRUMENT-PART 1 Page 2

7. ADDITIONAL OR MODIFIED TERMS:* N/A

8. EXECUTION(S):**This instrument creates, assigns, modifies, enlarges, discharges or governs the priority of the interest(s) described in Item 3 and the Transferor(s) and every other signatory agree to be bound by this instrument, and acknowledge(s) receipt of a true copy of the filed standard charge terms, if any.

Officer Signature Execution Date Transferor Signature Y M D OFFICER CERTIFICATION:

Name of Officer

2007 ___ ___

BCR PROPERTIES LTD. by its authorized signatory(ies):

Name:

Name:


Transferee

Name of Officer (as to both signatures)

2007 ___ ___

DISTRICT OF SQUAMISH by its authorized signatories:

Mayor: Ian Sutherland

_____________________________Director of Administrative Services: Robin Arthurs

Your signature constitutes a representation that you are a solicitor, notary public or other person authorized by the Evidence Act, R.S.B.C. 1996, c.124, to take affidavits for use in British Columbia and certifies the matters set out in Part 5 of the Land Title Act as they pertain to the execution of this instrument. * If space insufficient, enter “SEE SCHEDULE” and attach schedule in Form E. ** If space insufficient, continue executions on additional page(s) in Form D.


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TERMS OF INSTRUMENT - PART 2

OPTION TO PURCHASE & RIGHT OF FIRST REFUSAL

THIS AGREEMENT dated for reference ___________________________ is

BETWEEN:

DISTRICT OF SQUAMISH, at 37955 – 2nd Avenue, PO Box 310, Squamish, B.C. V0N 3G0

(the “District”)

AND:

BCR PROPERTIES LTD. (Inc. No. 278246), #506 – 221 West Esplanade North Vancouver, B.C. V7M 3J3

(the “Owner”)

GIVEN THAT:

A. The Owner is the owner of the land, and all improvements thereto legally described in section 2 of page 1 of the Land Title Act Form C to which this agreement is attached (the “Land”), and for the purposes of the provisions herein, the Land may mean one or more parcels comprising the Land to which the Option and Right of First Refusal herein are registered,

B. Pursuant to a Housing Agreement and Covenant dated for reference _____________, 2007 between the District and the Owner (the “Housing Agreement”) registered against the Land under LTO number ________, the Owner constructed affordable housing units on the Land, and

C. Pursuant to the Housing Agreement, the Owner has agreed to grant to the District a right of first refusal and an option to purchase the Land on the following terms and conditions,

THIS AGREEMENT is evidence that in consideration of the payment of $1.00 paid by the District to the Owner and other good and valuable consideration (the receipt and sufficiency of which the Owner acknowledges), the Owner and the District agree as follows:

ARTICLE 1 - RIGHT OF FIRST REFUSAL

1.1 Definitions – In addition to any terms defined elsewhere in this agreement, in this agreement the following terms have the following meanings:


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(a) “Arm’s-length” has the same meaning as that term has in the Income Tax Act (Canada);

(b) “Bona Fide Offer” means an offer to purchase the Land:

(i) in writing,

(ii) signed by an Outside Offeror,

(iii) only in its entirety and chattels pertaining thereto and no other property, rights or assets,

(iv) free and clear of any liens, charges and encumbrances other than the Permitted Encumbrances,

(v) in a form legally enforceable against the Outside Offeror and subject to no conditions which are not capable of being waived by the Outside Offeror,

(vi) stating that the Outside Offeror has been pre-approved for a mortgage in relation to the Land, and

(vii) providing that if the District does not exercise its right to purchase the Land under section 1.6, or the Option under Article 2, the Outside Offeror will grant to the District an option to purchase and right of first refusal to purchase the Land upon the same terms and conditions as are set forth in this agreement;

(c) “Business Day” means Monday to Friday inclusive except for those days declared by lawful authority as holidays, excluding any day that the land title office is not open for business;

(d) “Expiry Time” with respect to any offer made by the Owner to the District under section 1.4, will be 5:00 p.m. on the twenty-eighth calendar day after the receipt by the Purchaser of such offer, provided that in determining such time the day such offer is received by the District will be excluded;

(e) “Outside Offeror” means a purchaser or prospective purchaser who deals at Arm’s-length with the Owner;

(f) “Permitted Encumbrances” has the meaning set out in section 3.; and

(g) “Term” means that period of time from and after the reference date of this agreement to and including the date that is 20 years thereafter.

1.2 Restrictions on Sale – During the Term, the Owner will not sell, transfer or otherwise convey or offer to sell, transfer or otherwise convey the Land except:

(a) for consideration payable entirely in lawful money of Canada;

(b) to an Outside Offeror, except that the Owner may transfer title to a person or corporation not at Arm’s-length for corporate reorganization, tax or trust or family purposes provided


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that this agreement will remain in effect as if the transferee were the Owner, and that, if the Owner does transfer title to such a person or corporation, the District will cause its solicitors to deliver a discharge of this agreement to the solicitors for the Owner on receipt of a satisfactory undertaking from the solicitors for the Owner that the discharge will only be registered concurrently with registration of a new right of first refusal and option to purchase in favour of the District on terms identical to those set forth in this agreement, and having the same priority of registration as this agreement;

(c) pursuant to a Bona Fide Offer; and

(d) in accordance with, and to the extent permitted by, the terms of this agreement.

1.3 Notice of Bona Fide Offer – If, at any time and from time to time during the Term, the Owner receives a Bona Fide Offer from an Outside Offeror, which Bona Fide Offer the Owner is willing to accept, then the Owner will deliver written notice (the “Notice”) immediately to the District that the Owner has received such Bona Fide Offer, and will deliver to the District with the Notice a photocopy of such Bona Fide Offer, certified by the Owner to be a true copy.

1.4 Notice as Offer – The Notice will be deemed to constitute an offer by the Owner to the District to sell the Land to the District on and subject to all the terms and conditions set forth in such Bona Fide Offer.

1.5 Offer Irrevocable – The offer made by the Owner to the District under section 1.4 will be irrevocable and may not be withdrawn by the Vendor until after the Expiry Time.

1.6 Acceptance of Offer – Upon receipt of the Notice, the District will have the exclusive first right, exercisable up to and including but not after the Expiry Time, to deliver to the Owner written notice (the “Acceptance”) that the District will purchase the Land for the price and upon the terms and conditions set forth in such Bona Fide Offer.

1.7 Contract of Sale and Purchase – Upon receipt by the Owner of the Acceptance, a binding contract of purchase and sale for the Land will be constituted between the District and the Owner, which contract will be completed in the manner provided in such Bona Fide Offer as if the District were the Outside Offeror.

1.8 Sale to Outside Offeror – If the Owner does not receive the Acceptance before the Expiry Time and the District does not exercise the Option under Article 2 within the time provided therein the Owner may complete the sale with the Outside Offeror as provided for in such Bona Fide Offer in strict accordance with the terms set forth in the Bona Fide Offer. In such case, the District will cause its solicitors to deliver a discharge of this agreement to the solicitors for the Owner on receipt of a satisfactory undertakings from the solicitors for the Owner that the discharge will only be registered if that sale to the Outside Offeror is completed strictly in compliance with the terms of the Bona Fide Offer and that the discharge will only be registered concurrently with registration of a new right of first refusal and option to purchase in favour of the District on terms identical to those set forth in this agreement, and having the sane priority of registration as this agreement. If the sale to the Outside Offeror is not so completed, then any subsequent sale to any person or corporation may be made only if all the requirements of this


Page 6

agreement are again complied with, and the option to purchase and right of first refusal under this agreement will survive and continue in full force and effect.

ARTICLE 2 - OPTION TO PURCHASE

2.1 Grant of Option – In consideration of the payment of the $1.00 by the District to the Owner (the receipt and sufficiency of which the Owner acknowledges), the Owner grants to the District the sole and exclusive option, irrevocable within the time herein limited, for exercise by the District to purchase the Land free and clear of all liens, claims, charges, encumbrances and legal notations, except for the Permitted Encumbrances (the “Option”).

2.2 Exercise of Option – The District may exercise the Option at any time during the Term by delivering notice of the exercise of the Option to the Owner.

2.3 Restrictions on Exercise of Option – Notwithstanding section 2.2, the District may not exercise the Option except:

(a) if the District receives notice from the Owner that the Owner has not received an offer to purchase the Land from a Qualified Occupant (as defined in the Housing Agreement) in accordance with section 15 of the Housing Agreement; or

(b) if the Owner has breached a term of the Housing Agreement and the District has given the Owner notice in writing of the breach, and the notice states that the Owner shall have not less than five (5) business days to cure the breach, or no time for cure where the breach is not curable, and such breach has not been cured.

2.4 Binding Agreement - If the District exercises the Option under section 2.2, this agreement will become a binding agreement for the purchase and sale of the Land for the Purchase Price, which shall be completed upon the terms and conditions contained in this Article on the date that is 28 days after the date the notice of Option exercise is delivered or 14 days following completion of the valuation process under section 2.7, whichever is later (the “Completion Date”).

2.5 Non-Exercise of Option – If the Option is not exercised during the Term, the Option and the provisions of Article 2 of this agreement will be null and void and no longer binding on the parties and the District will execute such instruments as may be reasonably necessary to discharge this agreement from title to the Land upon receipt of such instruments from, and prepared by and at the cost of, the Owner.

2.6 Purchase Price – The purchase price (the “Purchase Price”), excluding GST, for the Land shall be, where the District exercises the Option pursuant to section 2.3, equal to 90% of the fair market value of the Land (including all improvements), determined in accordance with section 2.7.

2.7 Valuation Process – The fair market value of the Land and improvements will be determined by an appraiser retained by and at the expense of the District, who has designation from the Appraisal Institute of Canada AACI, the Real Estate Institute of British Columbia RIBC or a similar organization, which appraisal will be completed within 30 days of the date the


Page 7

District exercises the Option. The fair market value will be determined as of the date of the applicable event under section 2.3 and will be based on the following:

(a) market value will be defined as the highest price in terms of money that the Land will fetch under all conditions requisite to a fair sale with the buyer and seller each acting reasonably, knowledgeably and assuming the price is not affected by undue stimulus, and

(b) the Land will be appraised as a fee simple parcel encumbered only by the Permitted Encumbrances.

2.8 Risk – The Land will be at the risk of the Owner until completion of the transfer of the Land to the District and after completion it will be at the District’s risk.

2.9 Adjustments – All adjustments to the Purchase Price in respect of the Land, both incoming and outgoing, usually the subject of adjustment between a vendor and purchaser in connection with the purchase and sale of land, including adjustments of property taxes, utilities and rents, must be made up to and including the Completion Date.

2.10 Title and Possession – On the Completion Date, the Owner will:

(a) transfer and convey the estate in fee simple of the Land to the District free and clear of all liens, charges, encumbrances and legal notations except for the Permitted Encumbrances; and

(b) give vacant possession of the Land to the District, subject only to the Permitted Encumbrances.

2.11 Closing Documents - On or before the Completion Date, the Owner must cause its solicitors to deliver to the District’s solicitors the following items, in a form and content satisfactory to the District, acting reasonably, duly executed by the Owner and all other parties thereto and in registrable form wherever appropriate:

(a) a freehold transfer conveying title to the Land to the District, subject only to the Permitted Encumbrances (“Transfer”) ;

(b) discharges of any liens, charges and encumbrances registered against title to the Land, other than the Permitted Encumbrances (collectively, “Discharges”);

(c) the Owner’s statement of adjustments;

(d) the District’s statement of adjustments;

(e) such further deeds, acts, things, certificates and assurances as may be requisit in the reasonable opinion of the District’s solicitors, for more perfectly and absolutely assigning, transferring, conveying and assuring to the District title to the Land free and clear of all liens, claims, charges, encumbrances and legal notations, other than the Permitted Encumbrances and to assign to the District the benefit of any of the Permitted Encumbrances.


Page 8

2.12 Delivery of Documents – On or before the Completion Date, the District must deliver to the Owner’s solicitors, the District’s statement of adjustments.

2.13 Preparation of Documents – The documents contemplated in section 2.10 will be prepared by the District’s solicitors, to the extent of preparation is required, and delivered to the Owner’s solicitors at least 3 days before the Completion Date.

2.14 Payment in Trust – On or before the Completion Date, the District must pay the adjusted Purchase Price to the District’s solicitors and the Owner hereby irrevocably directs the District to cause the District’s solicitors to pay the adjusted Purchase Price to the Owner’s solicitors and this direction shall constitute good and sufficient authority for doing so.

2.15 Registration – Forthwith following the payment in section 2.14 and after receipt by the District’s solicitors of the documents and items referred to in section 2.10, the District must cause the District’s solicitors to deposit the Transfer and the Discharges in the Lower Mainland Land Title Office (the “LTO”).

2.16 Payment – Promptly following the deposit referred to in section 2.15 and upon the District’s solicitors being satisfied that a search of the property index maintained by the LTO discloses there are no transfers, liens, charges, encumbrances or legal notations, other than the following:

(a) the existing title number to the Land;

(b) Permitted Encumbrances;

(c) the liens, charges and encumbrances in respect of which the Discharges have been deposited;

(d) the Transfer; and

(e) the Discharges.

the District must cause the District’s solicitors to deliver to the Owner’s solicitors a trust cheque for the adjusted Purchase Price made payable to the Owner’s solicitors, in trust.

2.17 Concurrent Requirements – It is a condition of this agreement that all of the requirements of sections 2.15 and 2.16 are concurrent requirements and it is agreed that nothing will be completed on the Completion Date until everything required to be paid, executed and delivered on the Completion Date has been so paid, executed and delivered and until the District’s solicitors have satisfied themselves as to the registration and priority of the Transfer.

2.18 Fees and taxes – The District must pay, as and when due and payable:

(a) any property transfer tax payable under the Property Transfer Tax Act (British Columbia);

(b) LTO registration fees in connection with the registration of the Transfer;


Page 9

(c) its own legal fees and disbursements; and

(d) any GST payable under the Excise Tax Act (Canada) in respect of the Transfer and conveyance of the Land to the District, with the District and the Owner agreeing that the Purchase Price does not include GST,

and the Owner must pay its own legal fees and disbursements and any LTO registration fees in connection with the registration of the Discharges.

2.19 Currency and Payment Obligations – All dollar amounts referred to in this agreement are Canadian dollars.

2.20 Preparation of Documents and Clearing Title – The District must prepare all necessary conveyancing documentation. At its expense, the Owner must clear title to the Land, subject only to the Permitted Encumbrances.

ARTICLE 3 - MISCELLANEOUS

3.1 Permitted Encumbrances – In this agreement, “Permitted Encumbrances” means the exceptions and reservations contained in the original Crown grant, any non-financial charges and encumbrances in favour of any government entity or public utility on the Land, and the Housing Agreement.

3.2 Encumbrances – The Owner must not charge or encumber the Land with, or permit to arise in respect of the Land, any lien, claim, charge, encumbrance or legal notation, without the District’s prior written consent, except where agreed to by the District.

3.3 Access – The District, its agents and employees have the licence, exercisable on 24 hours prior written notice to the Owner, to enter upon the Land from time to time during the Term, at the District’s sole risk and expense, for the purpose of making inspections, surveys, tests and studies of the Land. The District agrees to:

(a) release and indemnify, and hold harmless, the Owner from and against any and all actions, causes of actions, liability, demands, losses, costs and expenses (including legal fees, costs and disbursements) which the Owner or any third party may suffer, incur, be subject to or liable for, arising out of or in any way related to or in connection with the exercise by the District of its rights under this section; and

(b) leave the Land in the same condition as that in which the District found the Land, including by removing any equipment, refuse or other matter brought on to the Land by the District or its agents or contractors.

3.4 Owner Representations, Warranties and Covenants – The Owner hereby represents and warrants to the District that the following is true and accurate on the date the Owner executes this agreement and will be true on the Completion Date or on the completion date arising if the District exercises its rights under section 1.6:


Page 10

(a) the Owner has the legal capacity, power and authority to perform all of the Owner’s obligations under this agreement;

(b) the Owner has taken all necessary or desirable actions, steps and other proceedings to approve or authorize, validly and effectively, the entering into, and the execution, delivery and performance of this agreement;

(c) the Owner is registered under the Excise Tax Act (Canada) for the purposes of GST and the Owner’s registration number is __________________;

(d) the Owner is in good standing with the Registrar of Companies for British Columbia and has made all necessary filings with that registrar as required by the Company Act (British Columbia);

(e) the Owner is duly incorporated and validly existing under the laws of British Columbia and has the power and capacity to enter into and carry out the transaction provided for in this agreement.

(f) the Owner has a good, safe holding and marketable title to the Land; and

(g) the Owner is a resident of Canada within the meaning of the Income Tax Act (Canada).

3.5 Further Assurances - Each of the parties must at all time execute and deliver at the request of the other all such further documents, deeds and instruments, and do and perform such other acts as may be reasonably necessary to give full effect to the intent and meaning of this agreement, including to register this agreement with the LTO in priority to all liens, charges and encumbrances, except for the Permitted Encumbrances, promptly after execution by the parties.

3.6 Notice - Any notice, direction, demand, approval, certificate or waiver (any of which constitute a “Notice”) which may be or is required to be given under this agreement must be in writing and be delivered or sent by facsimile transmission:

to the District: 37955 – 2nd Avenue PO Box 310 Squamish, B.C. V8B 0A3 Fax Number: (604) 892-5217 Attention: Robin Arthurs to the Owner: BCR Properties Ltd. #600 – 221 West Esplanade North Vancouver, B.C. V7M 3J3 Fax Number: (604) 678-4702


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Attention: Director of Real Estate

or to such other address or facsimile number of which notice has been given as provided in this Article.

Any Notice that is delivered is to be considered given on the day it is delivered and any notice, direction, demand, approval, certificate or waiver that is sent by fax is to be considered given on the day it is sent except that if, in either case, that day is not a business day, it is to be considered given on the next business day after it is sent.

3.7 No Effect on Powers – This agreement does not:

(a) affect or limit the discretion, rights, duties or powers of the District or the approving officer for the District under the common law or any statute, bylaw or other enactment, nor does this agreement create, or is the parties’ intention to create, any implied obligations regarding such discretion, rights, duties or powers;

(b) affect or limit the common law or any statute, bylaw or other enactment applying to the Land; or

(c) relieve the Owner from complying with any common law or any statute, regulation, bylaw or other enactment.

3.8 Time of Essence - Time is of essence of this agreement and the conveyance and transfer for which it provides.

3.9 Tender - Any tender of documents or money may be made upon the parties at their respective addresses set out in this agreement or upon their respective solicitors.

3.10 No Other Agreements - This agreement is the entire agreement between the parties regarding its subject and it terminates and supersedes all representations, warranties, promises and agreements regarding its subject.

3.11 Benefit - This agreement enures to the benefit of and is binding upon the parties and their respective heirs, executors, administrators, successors and assigns.

3.12 Schedules – The Schedules to this agreement form an integral part of this agreement.

3.13 Modification - This agreement may not be changed except by an instrument in writing signed by the parties or by their successors or assigns, but the parties agree that the Completion Date may be changed by their agreement through their respective solicitors upon instructions to their solicitors as evidenced promptly thereafter in writing by their solicitors.

3.14 Interpretation - Wherever the singular is used or neuter is used in this agreement, it includes the plural, the feminine, the masculine or body corporate where the context or the parties so required.


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3.15 Governing Law – This agreement will be governed by and construed in accordance with the laws of British Columbia.

As evidence of their agreement to be bound by the terms of this agreement, the parties have executed under seal the Land Title Act Form C to which this agreement is attached and which forms part of this agreement.

END OF DOCUMENT
