Peanut Gallery Vancouver City Council
| | Est. 12,026 HE | |

Front-ender Agreement Amendment

Motion 25 · Council Meeting, March 31, 2026

On Consent Location 4989-5049 Ash Street Watch recording

Summary

  • Council approved an amendment to an existing Front-ender Agreement with Pennyfarthing Properties Ash St. North Ltd. for a sewer infrastructure project at 4989–5049 Ash Street, increasing the maximum City reimbursement from $811,200 to $1,211,720.
  • The increase reflects higher-than-anticipated construction costs; the final actual cost of separating storm and sewer pipes came in at $1,553,486, up from the original estimate, due to general construction cost inflation during the construction period.
  • The amended reimbursement represents 78% of the actual verified construction cost, consistent with the original agreement's formula; the City's technical review team confirmed the final cost figure.
  • Reimbursement will be paid out of the Utilities Development Cost Levy (DCL) reserve fund over a period of up to 10 years, at 0.4% of annual Utilities DCL revenues collected — no payment is made in years where no DCL revenue is raised.
  • Front-ender agreements allow developers to finance and build City-planned utility infrastructure ahead of the City's own schedule, with the City reimbursing a share of costs over time from DCL reserves.
  • Staff consider this amendment lawful and equitable, as the cost overrun was driven by market conditions rather than project scope changes, and the sewer separation work has already been completed.

Report Images

Schedule A legal description of the development lands at 4989–5049 Ash Street (PID 031-301-258).
Schedule A legal description of the development lands at 4989–5049 Ash Street (PID 031-301-258).
Schedule B listing the sewer separation and decommission utilities works required on Ash Street between W 37th and W 39th Avenues.
Schedule B listing the sewer separation and decommission utilities works required on Ash Street between W 37th and W 39th Avenues.

Transcript

6 segments
Ken Sim 09:44:02

seeing no other discussion. Moved by, I think, Councillor Claston first, and then seconded by Councillor Dominato. Any discussion?

? 09:44:13

Oh, and Communications 1.

Okay. I actually would like to ask a couple of questions about... The changes to the 2026 council meeting schedule.

Ken Sim 09:44:31

Okay. Communication one.

? 09:44:32

Yeah.

Ken Sim 09:44:33

Okay. Okay. So we're back to, we have report number five for the consent agenda. And that's been moved by Councillor Klassen, seconded by Councillor Dominato. Any other discussion? Okay. All those in favour say yay. All those opposed say nay. Great.

? 09:44:51

We have, so we're going to have to bear with me for a couple of seconds.

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