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Renewed life for Gastown : an economic case study and evaluation of commercial rehabilitation in the… Sommers, Michael James 1970

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RENEWED LIFE FOR GASTOWN:  AN ECONOMIC CASE STUDY  AND EVALUATION OF COMMERCIAL REHABILITATION I N THE OLD GRANVILLE TOWNSITE, VANCOUVER, B. C.  • by -  MICHAEL JAMES SOMMERS  B. Comm., U n i v e r s i t y o f B r i t i s h Columbia,  1966  A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION i n the F a c u l t y of Commerce and Business  Administration  We accept t h i s t h e s i s as conforming t o the r e q u i r e d standard  THE" UNIVERSITY OF BRITISH COLUMBIA  December, 197 0  In p r e s e n t i n g t h i s  thesis  an advanced degree at the L i b r a r y s h a l l I  f u r t h e r agree  in p a r t i a l  fu1fiIment  the U n i v e r s i t y of B r i t i s h  make i t  freely available  that permission  for  of  the requirements f o r  Columbia,  I agree  r e f e r e n c e and  f o r e x t e n s i v e copying o f  this  that  study. thesis  f o r s c h o l a r l y purposes may be g r a n t e d by the Head o f my Department o r by h i s of  this  written  representatives. thesis  for financial  i s understood that copying o r p u b l i c a t i o n gain s h a l l  not  be allowed without my  permission.  Department o f  Commerce and B u s i n e s s  The U n i v e r s i t y o f B r i t i s h Vancouver 8, Canada  Date  It  December 4, 1970.  Columbia  Administration  ABSTRACT Rather  than aging g r a c e f u l l y , the m a j o r i t y o f the  c i t i e s o f North America have been a s s a i l e d by a c h r o n i c d i s e a s e which has produced  d e t e r i o r a t i o n , decay, and o b s o l e s -  cence o f p o r t i o n s o f t h e i r c e n t r a l c o r e .  In most cases, the  c e n t r e o f t h i s decay has been the o l d e s t , h i s t o r i c s e c t i o n s o f the c i t y .  Many o f these c i t i e s have r e a c t e d t o the p r e -  mature death of these areas w i t h harsh and d i s r u p t i v e methods --the o f f e n d i n g b u i l d i n g s have been t o r n down t o be r e p l a c e d by d i s m a l p u b l i c housing developments, or impersonal g l a s s and  s t e e l skyscrapers. However, a c o u n t e r - r e a c t i o n has gained f o r c e i n  r e c e n t y e a r s , and has succeeded  i n some c i t i e s  i n slowing  and even completely h a l t i n g the spread o f " b u l l d o z e r renewal." T h i s new p h i l o s o p h y maintains t h a t the charm and uniqueness of the o l d s e c t i o n s o f the c i t y must be p r e s e r v e d i n order to m a i n t a i n the d i v e r s i t y and v i t a l i t y o f the downtown.  The  most s u c c e s s f u l method o f s a v i n g these d i s t r i c t s and i n d i v i d u a l s t r u c t u r e s has been t o renovate and r e v i t a l i z e them so that they a r e a g a i n e c o n o m i c a l l y and s t r u c t u r a l l y T h i s process i s known as commercial  sound.  rehabilitation.  Vancouver, B r i t i s h Columbia, has f e l t the i n f l u e n c e of both o f these f o r c e s — d e c a y o f i t s o l d e s t d i s t r i c t s and commercial r e h a b i l i t a t i o n .  Gastown  (the O l d T o w n s i t e ) , the  b i r t h p l a c e of the c i t y has  been n e g l e c t e d  t h a t , by road.  1940,  and  i t had  and  the s i t e of i t s o l d e s t s t r u c t u r e s ,  allowed to decay to such an  extent  become the c e n t r e of the c i t y ' s s k i d  However, s i n c e 1968  various  the r e h a b i l i t a t i o n of the area and  groups have undertaken have turned  i t into a  r a p i d l y expanding commercial d i s t r i c t . The  •  b a s i c o b j e c t i v e of the t h e s i s i s to examine  i n d e t a i l the economic s i t u a t i o n i n Gastown i n order i s o l a t e the trends  and  to  f o r c e s which have shaped i t s develop-  ment, p a r t i c u l a r l y as r e l a t e d to commercial and investment i n the d i s t r i c t .  real  estate  Based upon these f i n d i n g s ,  i m p l i c a t i o n s f o r the f u t u r e of the Old Townsite are  then  suggested. The  assumption upon which the  investigation is  based i s t h a t Gastown w i l l be able t o expand and a commercial d i s t r i c t h i s t o r i c charm.  prosper  as  i n which customer appeal i s based upon  In order  to t e s t t h i s , two  hypotheses  are  formulated: 1. • The area d e f i n e d h e r e i n as "Gastown w i l l be economically v i a b l e as a r e t a i l - e n t e r t a i n m e n t r e s t a u r a n t d i s t r i c t i n which customer a t t r a c t i o n i s based upon the unique appeal c r e a t e d by h i s t o r i c and commercial r e h a b i l i t a t i o n activities; and 2. Gastown, as a r e t a i l - e n t e r t a i n m e n t - r e s t a u r a n t d i s t r i c t , w i l l not be merely a short-term phenomena, but r a t h e r , the f u n c t i o n a l changes p r e s e n t l y t a k i n g p l a c e w i l l s u r v i v e and prosper over the long run.  . Three major r e s e a r c h techniques First,  are employed.  an e x t e n s i v e l i t e r a t u r e search i s used to determine  the theory and p r a c t i c e of commercial r e h a b i l i t a t i o n  and  to. o b t a i n a l i m i t e d amount of data about the economic s i t u a t i o n i n Gastown.  Second, a q u e s t i o n n a i r e study i s  conducted to produce i n f o r m a t i o n about the o p e r a t i n g r e s u l t s o f those r e t a i l f i r m s l o c a t e d i n the study area t h a t are c o n s i d e r e d to be compatible historic district.  with the c h a r a c t e r of  T h i s data i s e v a l u a t e d  comparable i n d u s t r y standards  an  i n r e l a t i o n to  i n order to determine the  economic h e a l t h of these f i r m s and  i s a l s o employed as a  b a s i s f o r p r e d i c t i o n of f u t u r e trends i n Gastown. an u n s t r u c t u r e d p e r s o n a l i n t e r v i e w technique  Finally,  i s employed to  o b t a i n economic data from persons g e n e r a l l y r e c o g n i z e d  as  l e a d e r s of the business community i n the O l d Townsite. With one  e x c e p t i o n , the r e s e a r c h f i n d i n g s are  t o be s u p p o r t i v e of the hypotheses.  found  I t i s determined t h a t  pronounced changes i n l a n d use have o c c u r r e d over the past g i v e y e a r s but t h a t the major f u n c t i o n a l changes r e l a t e d t o r e h a b i l i t a t i o n a c t i v i t i e s have taken p l a c e only s i n c e October 1969.  T o t a l s a l e s volume f o r a l l businesses  t o be compatible i s estimated 1971.  with the c h a r a c t e r of a r e j u v e n a t e d  to be $5.5  m i l l i o n i n 1970  and  $11.6  adjudged Gastown  million in  However, t h e r e i s a d i s p o r t i o n a t e number of very  s m a l l merchants o p e r a t i n g i n the Old Townsite with, the  result  t h a t 12 p e r c e n t  of the b u s i n e s s e s account f o r 80 percent of  t o t a l s a l e s volume i n the area. s c a l e , experienced o p e r a t o r s r e t u r n on investment.  In g e n e r a l , only  the l a r g e -  are a t t a i n i n g a reasonable  The p r e d i c t i o n i s made t h a t a high  p r o p o r t i o n o f b u s i n e s s f a i l u r e s w i l l occur among the s m a l l r e t a i l e r s and t h a t f u t u r e a d d i t i o n s t o the Gastown  business-  mix w i l l c o n s i s t almost e n t i r e l y of l a r g e - s c a l e firms,. a n a l y s i s suggests t h a t the o p p o r t u n i t y  The  e x i s t s f o r a reason-  a b l e r a t e of r e t u r n on both s p e c u l a t i v e and long term i n v e s t ment i n Gastown r e a l  estate.  Even though one of the s u p p o r t i n g retail-entertainment-restaurant  c r i t e r i a t o the  d e f i n i t i o n i s found t o be  unsound, the hypotheses are c o n s i d e r e d  t o be v a l i d .  ACKNOWLEDGMENTS A s s i s t a n c e and i n f o r m a t i o n f o r the p r e p a r a t i o n of t h i s t h e s i s was p r o v i d e d by many i n d i v i d u a l s .  I would  like  t o take t h i s o p p o r t u n i t y t o express my a p p r e c i a t i o n : To Dr. M. A. Goldberg, f o r guidance, a s s i s t a n c e and c o n s t r u c t i v e c r i t i c i s m , but most o f a l l , f o r unders t a n d i n g and encouragement; To Dr. J . D. Forbes, f o r i n t e r e s t , encouragement, and s u g g e s t i o n of the t o p i c ; To Mr.. B. Ewald and members of the Gastown Merchants A s s o c i a t i o n , f o r valued c o o p e r a t i o n and time g i v e n f o r the completion o f q u e s t i o n n a i r e s ; To Mr. D. N. Spearing, Mr. T. W i l l o x , Mr. A. W. Parker Mr. F- N. Buckley, Mr. G. Thomson, and many other members of the business communities o f Gastown and Vancouver, f o r p r o v i s i o n o f important data and sugg e s t i o n s and f o r s e t t i n g a s i d e v a l u a b l e time t o ..part i c i p a t e i n interviews; To my t y p i s t s , Mrs. A. M. G l e n d i n n i n g and Mrs. J . P r e s t o n , f o r e x c e p t i o n work under t r y i n g circumstances To my w i f e , f o r moral support and understanding.  Chapter I.  Page INTRODUCTION AND CONCEPTUAL FRAMEWORK  -1  Commercial r e h a b i l i t a t i o n and Gastown 1 D e f i n i t i o n o f the T o p i c . ... 3 Geographic D e f i n i t i o n o f the Study Area ... 4 P r e s e n t a t i o n o f the Hypotheses 12 Research T a c t i c s 14 Methodology Employed i n the Study 15 O r g a n i z a t i o n o f the T h e s i s 16' Footnotes 19 II.  HISTORIC AND COMMERCIAL  REHABILITATION .  U r b a n i z a t i o n , The C i t y / and I t s Problems B l i g h t S t r i k e s the Downtown Urban Renewal Historic Rehabilitation Commercial R e h a b i l i t a t i o n H i s t o r i c and Commercial R e h a b i l i t a t i o n A c t i v i t i e s i n Three North American Cities Footnotes III.  INTRODUCTION TO GASTOWN  •••>•>'  . 20 .. 21 24 26 30 . 32 38 45 ••.  50  A B r i e f H i s t o r y o f Gastown 51 The D e c l i n e o f the O l d Townsite .....;' 55 The T u r n i n g P o i n t 60 I n t e r e s t Groups i n Gastown .. 61 P l a n s f o r R e j u v e n a t i o n o f the O l d G r a n v i l l e Townsite "65 The Problems and Issues i n Gastown 76 The Appeal o f Gastown ............. 84 Footnotes 90 IV.  THE NATURE OF BUSINESS CHANGE IN GASTOWN F u n c t i o n a l A n a l y s i s o f Land Use i n Urban Areas Methodology Employed t o Measure Land Use Changes i n Gastown The Nature o f Business Change i n the O l d Townsite I m p l i c a t i o n s f o r the Future Footnotes  97 98 101 105 121 130  Chapter -  V.  page RETAIL SALES' VOLUME AND CUSTOMER ATTRACTION IN GASTOWN  134  A n a l y s i s o f R e t a i l S a l e s A t t r a c t i o n and Daytime P o p u l a t i o n i n Urban Areas Methodology Employed t o Estimate R e t a i l S a l e s Volume i n Gastown Estimated C u r r e n t S a l e s Volume Daytime P o p u l a t i o n and Customer A t t r a c t i o n i n Gastown I m p l i c a t i o n s f o r t h e Future Footnotes VI.  134 136 140 141 146 153  THE ECONOMICS OF COMMERCIAL INVESTMENT IN  GASTOWN  i ......................  .  A n a l y s i s of Operating Results of S m a l l - s c a l e R e t a i l Businesses Methodology Employed t o Determine and Evaluate R e t a i l Operating Factors i n Gastown . . . O p e r a t i n g R e s u l t s of S e l e c t e d Gastown Businesses .. . • 1. Sales Analysis 2. O p e r a t i n g Expenses and Markup 3. C a p i t a l Investment and Return on Investment 4. Management S k i l l I m p l i c a t i o n s f o r the Future ............... Footnotes VII.  THE ECONOMICS OF REAL ESTATE INVESTMENT IN GASTOWN A n a l y s i s o f Real E s t a t e Value i n Urban Areas Methodology Employed t o Determine Real E s t a t e F a c t o r s i n Gastown The Nature of P r o p e r t y Value Change i n the O l d Townsite A n a l y s i s o f Rate o f Return on Gastown . Properties I m p l i c a t i o n s f o r the Future . ....... Footnotes :  157  158 160 164 164 169 177 184 .189 194 202 202 204 206 217 222 224  Page  Chapter VIII.  CONCLUSIONS AND  EVALUATION OF THE STUDY .....  228  Conclusions C r i t i q u e of the Study Recommendations f o r F u r t h e r Study Footnotes BIBLIOGRAPHY 1. 2. 3. 4. 5. 6. 7. 8. 9. APPENDICES A. B. C. D. E.  228 238 241 243  .  U r b a n i z a t i o n , C i t i e s , and the CBD Commercial R e h a b i l i t a t i o n Historic Rehabilitation: Classified by C i t y o r Area ........ Historic Rehabilitation: Theory and Practice .. Urban Renewal Vancouver: Gastown " Vancouver: G e n e r a l and M i s c e l l a n e o u s S t a t i s t i c a l Data: R e t a i l S t a t i s t i c s and Market and Demographic Data Personal Interviews • •• .. . .  246 246 248 •  ...  ...........................  248 251 252 253 256 258. 259 261  Q u e s t i o n n a i r e A d m i n i s t e r e d t o GastownCompatible B u s i n e s s e s and Accompanying Letter 261 Names and Addresses of Gastown Merchants Who P a r t i c i p a t e d i n the Q u e s t i o n n a i r e Study ..... ....... 268 F u n c t i o n a l C l a s s i f i c a t i o n System Employed i n the Study 269 B l o c k Numbers and L e g a l D e s c r i p t i o n C o o r d i n a t e s i n the Gastown Study Area .. ... 274 Glossary .-275,  Map 1.  L o c a t i o n of Gastown i n R e l a t i o n t o the C i t y o f Vancouver 2. The Boundaries of Gastown as Defined by S e l e c t e d Area I n t e r e s t Groups 3. The Boundaries of Gastown as Defined i n the S t u d y • ........ 4. Ground F l o o r Land Use: October 1965 5.. Ground F l o o r Land Use: September 1970 6. L o c a t i o n and C a p a c i t y of Gastown and A d j a c e n t Area P a r k i n g F a c i l i t i e s l 7. L o c a t i o n of Gastown-Compatible B u s i n e s s e s : September 1970 8. B l o c k Numbers and L e g a l D e s c r i p t i o n C o o r d i n a t e s i n the Gastown Study Area  page 5 6 10 107 108 l i 118 274  T a b l e or F i g u r e I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV. XVI. XVII. XVIII. XIX.  L e g a l D e s c r i p t i o n of the Study Area Formal I n t e r e s t Groups i n Gastown Changes i n Ground F l o o r Land Use: 1965 to 1970 Number o f P a r k i n g L o t s and P a r k i n g C a p a c i t y Of Gastown and A d j a c e n t Area . . Percentage D i s t r i b u t i o n o f Ground F l o o r Land Use: 1965 t o 1970 D i s t r i b u t i o n o f Gastown-Compatible Businesses by Type Demographic C h a r a c t e r i s t i c s o f Gastown Customers P r o j e c t e d S a l e s Volume : Gastown, 1971 ... Comparison o f E s t i m a t e d Gastown and Vieux C a r r e Market Share: 1971 D i s t r i b u t i o n of Number of Businesses and S a l e s Volume Data by S i z e o f F i r m Comparison o f D o l l a r Volume Per Square Foot Data by R e t a i l Category .. Comparison o f R e n t a l Rates by S i z e of Firm Comparison o f R e n t a l Expense as Percentage of S a l e s Data by R e t a i l Category Comparison of C a p i t a l Investment by Size of Firm ... Comparison of Net S a l e s t o Inventory Data by R e t a i l Category ...... Comparison o f Net S a l e s t o T a n g i b l e Net Worth Data by R e t a i l Category Comparison o f F a c t o r s I n d i c a t i v e o f Management S k i l l and E x p e r i e n c e f o r ... S i x R e p r e s e n t a t i v e Gastown Businesses . . Summary o f O p e r a t i n g F a c t o r A n a l y s i s by S i z e of F i r m .......... Percentage Change i n Assessed Values o f Real P r o p e r t y i n Gastown and S e l e c t e d Vancouver L o c a t i o n s : 1967 t o 1970  Page 9 62 106 112 114 120 145 149 151 165 167 170 172 179 181 183 .  186  188 210  CHAPTER I  INTRODUCTION AND CONCEPTUAL FRAMEWORK  The o l d b u i l d i n g s [of Gastown] a r e being r e s t o r e d and as the whole area i s g r a d u a l l y r e o c c u p i e d , i t w i l l be p o s s i b l e f o r the f i r s t time to answer v i t a l q u e s t i o n s . 'Where d i d Vancouver come from?' and 'Why i s i t - t h i s way; what was the s p i r i t t h a t gave us birth?' These a r e questions t h a t can be answered only by a w i l l i n g n e s s t o accept and know the past; the resurgence of Gastown i s the symbol of t h a t w i l l i n g n e s s . 1 Commercial R e h a b i l i t a t i o n and Gastown Rather than aging cities  g r a c e f u l l y , the m a j o r i t y  of the  o f North America have been a s s a i l e d by a c h r o n i c  d i s e a s e which has produced d e t e r i o r a t i o n , decay, and o b s o l e s cence i n p o r t i o n s o f t h e i r c e n t r a l c o r e . centre  I n most cases, the  o f t h i s decay has been the o l d e s t , h i s t o r i c  of t h e c i t y .  Many o f these c i t i e s have r e a c t e d  sections  t o the pre-  mature death o f these areas w i t h harsh and d i s r u p t i v e methods the o f f e n d i n g b u i l d i n g s have been t o r n down t o be r e p l a c e d by d i s m a l and  steel  p u b l i c housing developments or impersonal g l a s s skyscrapers. However, a c o u n t e r - r e a c t i o n  recent years,  has gained force, i n  and has been s u c c e s s f u l i n some c i t i e s  i n slowi  and even completely h a l t i n g the spread of " b u l l d o z e r renewal." T h i s new  p h i l o s o p h y maintains  t h a t the charm and  uniqueness  of the o l d s e c t i o n s of the c i t y must be p r e s e r v e d i n order to m a i n t a i n the d i v e r s i t y and v i t a l i t y of the downtown. most s u c c e s s f u l method of s a v i n g these d i s t r i c t s d u a l s t r u c t u r e s has been to renovate  indivi-  and r e v i t a l i z e them so  t h a t they are again e c o n o m i c a l l y and s t r u c t u r a l l y T h i s process i s known as commercial  and  The  sound.  rehabilitation.  Vancouver, B r i t i s h Columbia, has f e l t the i n f l u e n c e of both of these f o r c e s — d e c a y of i t s o l d e s t d i s t r i c t s  and  commercial r e h a b i l i t a t i o n .  and  The b i r t h p l a c e of the C i t y  i t s o l d e s t s t r u c t u r e s are l o c a t e d i n and around D i s t r i c t L o t O.G.T. (Old G r a n v i l l e Townsite), which i s p o p u l a r l y known as 2 "Gastown."  T h i s area had been n e g l e c t e d and allowed t o  decay t o such an e x t e n t t h a t i t became the c e n t r e of the C i t y ' s "Skid Road."  However, f o r the p a s t two y e a r s , v a r i o u s  groups have undertaken have renovated  the r e h a b i l i t a t i o n of Gastown.  They  and r e s t o r e d a number of the b u i l d i n g s l o c a t e d  t h e r e so t h a t : warehouses and flophouses have become boutiques and d i s c l o t h e q u e s . F a l s e f r o n t s are b e i n g r i p p e d o f f o l d b u i l d i n g s to r e v e a l s t r i k i n g stone and masonry work f o r new r e s t a u r a n t s , a r t g a l l e r i e s and a Sunday-only f l e a market. I t ' s not a r e growth y e t . . . b u t the seeds are planted.3  D e f i n i t i o n of the The which has public. and,  Topic  r e b i r t h of Gastown i s a contemporary phenomena,  proven to be of tremendous i n t e r e s t to the Shoppers and  s i g h t - s e e r s have f l o c k e d to the  s i n c e mid-1968, Vancouver's newspapers have  numerous a r t i c l e s and  Yet,  (see s e c t i o n 6 of  little  information  a v a i l a b l e about the economic, s o c i a l , and  the has  i s presently  physical situation  no d e f i n i t i v e s t u d i e s have been conducted to  examine p o s s i b l e f u t u r e trends  i n these  fields.  T h i s t h e s i s examines the t r e n d and recent  facets  even with a l l of the a t t e n t i o n t h a t  been p a i d to Gastown, very  t h e r e , and  area  published  f e a t u r e s t o r i e s about v a r i o u s  o f the a c t i v i t i e s i n the Old C i t y Bibliography).  general  commercial development i n the area  strength  of  i n r e l a t i o n to  the  commercial r e h a b i l i t a t i o n a c t i v i t i e s t h a t have taken p l a c e to date.  The  v i d u a l l y and  a n a l y s i s attempts to determine whether, i n d i c o l l e c t i v e l y , the t y p i c a l modern Gastown business  venture i s economically  sound and p r o f i t a b l e , as w e l l  as  whether the area can s u r v i v e over the long run i f i t f u l l y develops as a commercial d i s t r i c t i n which customer a t t r a c t i o n i s based upon the unique h i s t o r i c a l and a r c h i t e c t u r a l charm o f the a r e a .  The  study i s based upon and  l i m i t e d by  the f i e l d work accomplished by a s i n g l e r e s e a r c h e r the w r i t e r ) ber,  1970.  during  the  f i v e month p e r i o d from May  (that i s , to Septem-.  The major i n t e r e s t and experience o f the author i s i n the f i e l d of r e t a i l i n g so t h a t , whenever p o s s i b l e , emphas i s has been p l a c e d upon, economic f a c t o r s i n Gastown as they r e l a t e to merchants and o t h e r r e t a i l - t y p e b u s i n e s s e s .  Factors  o u t s i d e of the realm of an economic study, such as s o c i a l concerns o r l e g a l matters, a r e beyond the scope of t h i s thesis. Geographic  D e f i n i t i o n of the Study  Area  Gastown i s l o c a t e d on the south shore o f the B u r r a r d I n l e t " i n the t h r o a t of the l a n d form t h a t connects the down4  town p e n i n s u l a t o the lower mainland."  (See Map 1 ) .  Such  a g e n e r a l d e f i n i t i o n of the l o c a t i o n of the study area would be s a t i s f a c t o r y f o r a n o n - t e c h n i c a l a r t i c l e  ( f o r example,a  magazine f e a t u r e ) but i t i s e n t i r e l y , inadequate f o r an economic a n a l y s i s of the d i s t r i c t .  An economic study must p r e -  c i s e l y d e f i n e the a r e a l boundaries employed so t h a t a d a t a base can be b u i l t up f o r a s p e c i f i c , l i m i t e d area which w i l l a l l o w i n t e r e s t e d p a r t i e s t o i n t e r p r e t the f i n d i n g s  correctly.  I t i s e v i d e n t t o a l l those i n t e r e s t e d i n Gastown. t h a t the boundaries of the d i s t r i c t have n o t y e t been p r e c i s e l y d e f i n e d and are u n l i k e l y t o be s e t t l e d f o r some time. A number o f Gastown i n t e r e s t groups have p u b l i s h e d maps which d e t a i l very d i f f e r e n t borders f o r the d i s t r i c t depending  upon t h e i r o u t l o o k o r the purpose  was prepared.  (see Map 2 ) ,  f o r which the map  The borders o f the O l d Townsite are v e r y  siiiiiiuuiiiiiiiiuiiiiiiiHUipUMiiimiiHu  SWfflWD M E T  i|blllilfnilimilllllllllllllllllllllim  'y^r—i Powell St GASTOWN  Hastings St.  A N  MAP 1 LOCATION OF GASTOWN IN RELATION TO THE CITY OF VANCOUVER Source: See t e x t , p. A.  MAP THE  2  BOUNDARIES OF GASTOWN AS DEFINED BY SELECTED AREA INTEREST GROUPS  WATER  1• i •  'Vl! !Q f T T ^ & \  \  .I i I .  IJ 3  yu .  P.J..J ..  ©©©a  F i g u r e A: The B o u n d a r i e s o f Gastown as D e f i n e d by t h e Vancouver C i t y Planning Department. S o u r c e : V a n c o u v e r C i t y P l a n n i n g Department, "Recommendation: G e n e r a l R e p o r t - Gastown, C h i n a t o w n " . U n p u b l i s h e d r e p o r t , F i l e R e f . C.36.4.2., V a n c o u v e r : C i t y P l a n n i n g D e p a r t m e n t , J u n e 1 2 , 1 9 7 0 , I l l u s t r a t i o n No. 2, " B o u n d a r i e s o f a r e a f o r p r o p o s e d i n t e r i m CD 1 r e z o n i n g " . ^  IT  Tin") °"it 5 TiTOi LJ..u.i l .  -  ••  .: [TTIV  •  -mi :  ".r&x IT  T  1114  LL  ff  ' i ffi  •T!i  •  i" i l l "ill"  — *  fa  If £\ TlL  •  F i g u r e B: T h e B o u n d a r i e s o f G a s t o w n a s D e f i n e d b y t h e Community A r t s C o u n c i l o f V a n c o u v e r . S o u r c e : Community A r t s C o u n c i l o f V a n c o u v e r , "Gastown R e v i s i t e d " . Unpubl i s h e d map p r e p a r e d f o r t h e G a s t o w n R e v i s i t e d w a l k . V a n c o u v e r : C o m m u n i t y A r t s C o u n c i l , 1968.  Map  2 continued  U L I I .irijei i i i  liJ,LL few Li.irrr.!"  1 I  mmmmmmm  -  '4  •IP, Figure  C: T h e B o u n d a r i e s o f G a s t o w n a s D e f i n e d i n t h e Restoration Report.  S o u r c e : B i r m i n g h a m a n d Wood, e t . a l . , R e s t o r a t i o n R e p o r t : A C a s e f o r Renewed L i f e i n t h e O l d C i t y , V a n c o u v e r : T h e C i t y C o u n c i l e t . a l . , 1969, pp. 34-35.  i n d e f i n i t e and  completely  f l e x i b l e to the p o i n t t h a t d e s c r i -  b i n g a l o c a t i o n as being on the "edge of Gastown" or " a t the •gateway to Gastown"^ i s meaningless. T h i s s i t u a t i o n might appear to be  illogical  and  i m p r a c t i c a l , but b e f o r e such a c o n c l u s i o n i s drawn, the f o l l o w i n g p o i n t s must be taken i n t o account: 1.  the c u r r e n t r e h a b i l i t a t i o n development i s o f very r e c e n t o r i g i n , so t h a t even those p a r t i c i p a t i n g i n the changes cannot d e f i n e exact boundaries f o r the area;  2.  the l e g a l and a d m i n i s t r a t i v e aspects have not y e t been f i n a l i z e d by the C i t y government;  3.  the v a r i o u s o r g a n i z a t i o n s t h a t are a c t i v e i n Gastown support i n t e r e s t s which are very d i f f e r e n t . These vary from the d e s i r e to p r o t e c t the a e s t h e t i c appeal of the area (the Community A r t s C o u n c i l ) t o c o n c e r n . f o r the market values of l o t s i n the d i s t r i c t (the Townsite Committee). It i s , therefore, reasonable t h a t the d i f f e r e n t groups w i l l each attempt to s e t and promote d i f f e r e n t boundaries i n order to advance t h e i r i n d i v i d u a l i n t e r e s t s ;  "4*.  the development t a k i n g p l a c e i n and around Gastown w i l l a l t e r the borders of the area. As a d d i t i o n a l b u i l d i n g s are r e s t o r e d , the borders of Gastown w i l l expand to i n c l u d e them, w h i l e redevelopment proj e c t s , such as P r o j e c t 200, may cut p o r t i o n s out of the p r e s e n t a r e a . In order to s a t i s f y the needs o f t h i s paper, a  - d e f i n i t i o n of the boundaries of Gastown was  required that  would c o n t a i n a l l of the major commercial f i r m s a s s o c i a t e d w i t h Gastown y e t would be a c c e p t a b l e i n t e r e s t groups. Planning  I t was  decided  to a l l Old Townsite  t h a t the Vancouver C i t y  Department's proposed boundary f o r i n t e r i m  CD-I  zoning  (see Map  2, F i g u r e A ) , as p r e s e n t e d i n t h e i r p r o p o s a l ,  "General Report-Gastown, Chinatown" o f June 12, 1970,^ would, w i t h o n l y minor a l t e r a t i o n s , p r o v i d e the most s u i t a b l e  areal  definition. The study area t h a t was e s t a b l i s h e d i n c l u d e s the m a j o r i t y o f D i s t r i c t L o t O.G.T. as w e l l as the northwest corner o f D i s t r i c t L o t 196 and p o r t i o n s of b l o c k s , 8,9,10, and 11 of D i s t r i c t L o t 541  (see Map  3 and Table I ) .  TABLE I . LEGAL DESCRIPTION OF STUDY AREA Lot 1 A 1 3  7 1 1 7 A  No.  Block No.  to 5 and E p o r t i o n of 6 and B to 19 t o 9 and A to C p l u s ground f l o o r l o c a t i o n s on West Cordova of 1 and 2 t o 13 t o 15 to 8 west h a l f and 8 and B o f 9 and 10 and 1 to 8  '  8 9 " 10  D i s t r i c t Lot 541  11 1 2 3 4 5  O.G.T,  1 t o 16 1 t o 11 9 t o 16 and. 27 t o 30  1 2 6  196  1 to 11 i n c l u d i n g s e c t i o n o f C.P.R. r i g h t - o f - w a y and 23 t o 28  7  Source:  See t e x t , pp.' 8-12.  11-  1  The  r e l e v a n t p o i n t s t h a t should be noted about the  area d e f i n i t i o n and the changes made i n the C i t y P l a n n i n g •Department boundaries 1.  o f Gastown are as f o l l o w s :  The area encompasses t h e two major areas o f Gastown (The West Townsite  and Maple Tree Square) as w e l l  as the two main s t r e e t s 2.  (Water and C a r r a l l ) ;  A l l l o c a t i o n s on o r south of Hastings S t r e e t have been omitted because t h i s area i n c l u d e s one o f the major shopping as Chinatown. nesses  districts  f o r Vancouver as w e l l  The appearance and appeal of b u s i -  l o c a t e d t h e r e are not compatible w i t h  i n Gastown.  those  Lots omitted because they f r o n t on  Hastings S t r e e t are l o t s 12 t o 14 o f Block 11, D.L. 541; B of l o t s 9 and 10 o f Block 4, D.L. O.G.T.; and the n o r t h and south h a l v e s o f l o t s 3 2 t o 34 o f Block 8, D.L. 19 6; 3.  L o t s 1 to 5 of Block 8, D.L. 196 have been omitted from the study area because they c o n t a i n a s u r f a c e p a r k i n g l o t which i s n o t e s s e n t i a l t o the c h a r a c t e r of Gastown;  4.  L o t s 27 t o 40 o f Block 6, D.L. 196 were n o t i n c l u d e d i n t h e C i t y P l a n n i n g Department o u t l i n e o f Gastown, but have been i n c l u d e d i n the c u r r e n t study, because t h i s i s the s i t e o f P i e r 1 Imports,  one o f the  l a r g e s t r e t a i l o u t l e t s i n the O l d Town;  5.  The Eaton's P a r k i n g Garage 12,  (Lots 1 t o 10 of Block  D.L. 541) has been omitted from t h i s study  because i t i s f u n c t i o n a l l y r e l a t e d t o the Eatons's department s t o r e , which i s an i n t e g r a l p a r t of the Hastings S t r e e t Shopping 6.  The M e r c h a n t i l e  area;  B u i l d i n g , 318 Homer  (Lots 1 and 2  " o f Block 11, D.L. 541) has been excluded except '  f o r the ground f l o o r l o c a t i o n s on West Cordova, because the b u i l d i n g does not s u i t the c h a r a c t e r of Gastown and the p o s i t i o n of the b u i l d i n g on the l o t r e l a t e s to Homer S t r e e t , r a t h e r than West Cordova ;  7.  L o t s A and D o f Block 4, D.L. O.G.T. p l u s  the north  h a l f o f l o t s 32 t o 34, B l o c k 8, D.L. 196, have been .excluded because the f u n c t i o n a l nature o f the b u s i nesses l o c a t e d t h e r e  and the b l i g h t e d c o n d i t i o n o f  the b u i l d i n g s , do n o t conform t o the c h a r a c t e r o f Gastown. Presentation  o f the Hypotheses  In order t o t e s t the c o n t e n t i o n w i l l be e c o n o m i c a l l y h e a l t h y  and s u c c e s s f u l , two s p e c i f i c  hypotheses were formulated. I t was p o s t u l a t e d  t h a t Gastown i s and  that:  1.  Hypothesis  Number  One  THE AREA DEFINED HEREIN AS "GASTOWN" WILL BE 'ECONOMICALLY VIABLE AS A RETAIL-ENTERTAINMENT-RESTAURANT DISTRICT IN WHICH CUSTOMER ATTRACTION IS BASED UPON THE UNIQUE APPEAL CREATED BY HISTORIC AND COMMERCIAL REHABILITATION ACTIVITIES. Where: i.  "Economically v i a b l e " i s d e f i n e d as the  ability  o f an area to a t t r a c t enough customer t r a f f i c to produce s u f f i c i e n t s a l e s volume to enable  a c o n c e n t r a t i o n of  f u n c t i o n a l c a t e g o r i e s to operate a t a reasonable  these  l e v e l of  p r o f i t w i t h i n the d e f i n e d area; ii.  A "Reasonable l e v e l of p r o f i t " f o r the purposes of  t h i s paper i s c o n s i d e r e d to be a r e t u r n on investment  equal  t o the p r e v a i l i n g prime i n t e r e s t rat-e p a i d on c o r p o r a t e bonds p l u s a r i s k f a c t o r of f i v e iii.  percent;  A "Retail-entertainment-restaurant d i s t r i c t "  r-e-r d i s t r i c t )  (a  i s an area i n which 50 p e r c e n t of the ground  f l o o r , l o c a t i o n s are devoted  t o these f u n c t i o n a l c a t e g o r i e s  and the t o t a l f l o o r area occupied by r - e - r a c t i v i t i e s i s g r e a t e r than t h a t devoted  to any  other s i n g l e  functional  category; iv.  The  customer a t t r a c t i o n generated  by the Gastown  area i s based upon the unique i d e n t i t y and a u t h e n t i c i t y of the area  (that i s , an appeal based upon h i s t o r i c a l charm) i n  combination  with the novel and contemporary nature o f the  b u s i n e s s f i r m s t h a t are r e s i d e n t i n the d i s t r i c t an appeal based 2.  Hypothesis  on modernity  (that i s ,  and uniqueness).  Number Two  GASTOWN, AS A RETAIL-ENTERTAINMENT-RESTAURANT DISTRICT, WILL NOT BE MERELY A SHORT-TERM PHENOMENA, BUT RATHER THE FUNCTIONAL CHANGES PRESENTLY TAKING PLACE WILL SURVIVE AND PROSPER OVER THE LONG RUN. Research  Tactics The  f o l l o w i n g r e s e a r c h t a c t i c s were e s t a b l i s h e d i n  order t o r e s t r i c t  the s u b j e c t matter  of the paper w h i l e , a t  the same time, t o p r o v i d e a. framework w i t h i n which the t o p i c c o u l d be approached. 1. . To determine  and document the present economic  p o s i t i o n o f Gastown i n terms of s a l e s volume, l a n d v a l u e s , and.other  reasonable i n d i c a t o r s o f economic  condition; 2.  To compare and c o n t r a s t the o p e r a t i n g f a c t o r s of b u s i n e s s f i r m s l o c a t e d i n Gastown w i t h f i g u r e s for- the a p p r o p r i a t e i n d u s t r y i n order t o determine of  3.  standard classification  the present economic h e a l t h  these f i r m s ;  To prepare p r e d i c t i o n s o f f u t u r e trends i n Gastown from an economic p o i n t of view and t o determine whether Gastown w i l l prosper over the long r u n .  4.  To ennumerate the f u n c t i o n a l c a t e g o r i e s of  business  p r e s e n t l y i n o p e r a t i o n i n Gastown; 5.  To determine the -nature of the changes i n pattern' of r e t a i l i n g and  other commercial a c t i v i t i e s i n  Gastown over the p a s t f i v e 6.  To gather  years;  and p r e s e n t the data i n a format t h a t can  be r e a d i l y u t i l i z e d by i n d i v i d u a l s who economic data about. Gastown.  require  It is particularly  hoped^that the i n f o r m a t i o n i n c l u d e d i n the  study  w i l l be s u i t a b l e as s u p p o r t i n g m a t e r i a l f o r request made to the C i t y f o r a s s i s t a n c e i n the Old Townsite and  as s u f f i c i e n t proof t h a t a d d i t i o n a l e n t r e p r e -  n e u r i a l investment  i n Gastown i s j u s t i f i a b l e .  Methodology Employed i n the Study Three b a s i c methods were u t i l i z e d to generate about commercial a c t i v i t i e s and  data  economic c o n d i t i o n s i n Gas-  t o w n — p e r s o n a l i n t e r v i e w s , a search of r e l e v a n t l i t e r a t u r e , and  a questionnaire  study.  Unstructured  p e r s o n a l i n t e r v i e w s were conducted  w i t h v a r i o u s r e p r e s e n t a t i v e s of i n t e r e s t groups a c t i v e i n Gastown.  Those persons i n t e r e v i e w e d were i n d i v i d u a l s gener-  a l l y recognized town.  as l e a d e r s of the economic community of Gas-  An i n f o r m a l , u n s t r u c t u r e d i n t e r v i e w technique  was  employed i n order to a l l o w the respondent to express  his  o p i n i o n s i n h i s own  words and  to ensure t h a t no r e l e v a n t  f a c t o r s were overlooked  because they were not c o n t a i n e d i n  a predetermined, p r i n t e d q u e s t i o n n a i r e . The gather  l i t e r a t u r e search was conducted i n order t o  the i n f o r m a t i o n necessary  to p r e d i c t future sales  volume and e v a l u a t e other economic f a c t o r s f o r the Gastown area.  Also,, l i m i t e d data about funds i n v e s t e d and s a l e s  volume f o r a few Gastown business secondary  f i r m s was taken from  sources. The  q u e s t i o n n a i r e was administered  t o members o f  the Gastown Merchants A s s o c i a t i o n d u r i n g the second and t h i r d weeks i n September, 1970.  The questions  asked were  designed  to o b t a i n i n f o r m a t i o n about f i n a n c i a l and o p e r a t i n g f a c t o r s of i n d i v i d u a l f i r m s i n order t h a t a p r o f i l e o f the economic s i t u a t i o n i n Gastown c o u l d be b u i l t , u p . f i r m s which co-operated  The names o f the  i n t h i s segment of the study a r e 7  i n c l u d e d i n the Appendix  along with a copy o f the q u e s t i o n -  8  naire.  .  1x  O r g a n i z a t i o n of the T h e s i s ,  The f i r s t chapter  has been an i n t r o d u c t o r y s e c t i o n  which attempted t o b u i l d a framework f o r the economic a n a l y s i s o f Gastown which w i l l f o l l o w i n subsequent  chapters.  Chapter I I w i l l examine the n a t u r a l f o r c e s which have d e t e r mined the h e a l t h and continued of North American c i t i e s  e x i s t e n c e o f the o l d e s t s e c t i o n s  i n general.  The r a p i d expansion o f  the C i t y i n the Twentieth  Century  and the r e s u l t a n t problems  w i l l be d i s c u s s e d , w i t h p a r t i c u l a r a t t e n t i o n d i r e c t e d t o c o n s i d e r a t i o n of the development of b l i g h t i n the CBD. Urban renewal,  as the t r a d i t i o n a l method employed t o combat  b l i g h t , i s examined and emphasis i s p l a c e d upon the theory and p r a c t i c e o f h i s t o r i c and commercial These f a c t o r s w i l l  then be u t i l i z e d  rehabilitation.  i n Chapter  I I I as a frame-  work w i t h i n which t o e v a l u a t e the p r e s e n t s i t u a t i o n i n Vancouver,  British The  Columbia.  t h i r d c h a p t e r p r o v i d e s an i n t r o d u c t i o n t o Gas-  town, the study area c f the t h e s i s . of  An o u t l i n e . o f the h i s t o r y  t h e O l d Townsite and the commercial r e h a b i l i t a t i o n  t i e s centred there i s presented  activi-  i n order t o i d e n t i f y the  f o r c e s which have shaped the development o f Gastown. r  An examination  o f the l o n g term p h y s i c a l and economic  trends i n the Gastown area i s i n c l u d e d i n Chapters  IV and V I I .  This includes a d e t a i l e d f u n c t i o n a l a n a l y s i s of business change over the p a s t f i v e years as w e l l as a study of the t r e n d o f changes i n p r o p e r t y v a l u e s i n the d i s t r i c t . Chapters of  V and VI e v a l u a t e the economic  viability  Gastown as a r e t a i l - e n t e r t a i n m e n t - r e s t a u r a n t d i s t r i c t .  C u r r e n t and p r o j e c t e d s a l e s e s t i m a t e s are made f o r the Gastown area and customer t r a f f i c p a t t e r n s and market segment c h a r a c teristics  a r e examined.  In a d d i t i o n , an a n a l y s i s i s made o f  the major o p e r a t i n g f a c t o r s o f s e l e c t e d b u s i n e s s e s  i n Gastown.  O p e r a t i n g r e s u l t s , such as s a l e s per square on investment,  f o o t and r e t u r n  are e v a l u a t e d and compared w i t h  standard  ficfures f o r comparable standard c a t e g o r i e s of b u s i n e s s i n order t o determine  i f commercial e n t e r p r i s e s l o c a t e d i n  Gastown have been able to a t t a i n reasonable o p e r a t i n g r e s u l The c o n c l u s i o n s and e v a l u a t i o n of the study i n c l u d e d i n the f i n a l  chapter.  are  Footnotes:  Chapter I  ^"D. S t a i n s b y , "Ending an E r a of Genteel Decay, E x c i t i n g New L i f e S t y l e s S p r i n g up i n West End and Gastown," The Vancouver Sun, December 31, 1969, p. 11A. 2 . . • As w e l l as Gastown, the Old G r a n v i l l e Townsite and O.G.T., t h i s area i s a l s o known as The O l d Townsite, G r a n v i l l e Townsite, the O l d C i t y , and the Townsite. ^The New Westminster C i t i z e n . "Gastown E n t e r s 1970's w i t h a Swinging New Look," January 22, 1970. 4  D. N. Spearing, "Chinatown—Vancouver's H e r i t a g e , " Plywood World, V o l . 9 ( F i r s t Quarter, 1969), p. 4. 5 From an advertisement f o r Pharoah's R e t r e a t i n The Gastown Gazette, August 22-29, 1970, p. 4. ^Vancouver C i t y P l a n n i n g Department, "Recommendation: General Report—Gastown, Chinatown." Unpublished r e p o r t , f i l e r e f . C-36.4.2. Vancouver: The C i t y P l a n n i n g Department, June 12, 1970, p. 31. 7 See Appendix B. 8  r  See Appendix A. i  CHAPTER I I  HISTORIC AND COMMERCIAL  REHABILITATION  A c i t y has as much r i g h t to be b e a u t i f u l as i t has t o be s a f e and clean.1 The s t r u c t u r e o f a c i t y r e f l e c t s the l i f e , a c t i v i t i e s and v i s i o n of i t s people. The c h a l l e n g e f a c i n g the c i t i z e n s and t h e i r l e a d e r s of the c i t y of today i s the molding of an environment worthy o f the p o t e n t i a l i t i e s of a contemporary s o c i e t y r e f l e c t i n g the human and dynamic a c t i v i t i e s o f a community o f the t w e n t i e t h century.2 B e f o r e proceeding to an examination o f the h i s t o r y of Gastown and the changes t h a t have taken p l a c e i n the Old Townsite, i t i s necessary t o understand the s i g n i f i c a n c e of the f o r c e s t h a t have i n f l u e n c e d the development T h i s can b e s t be accomplished by u t i l i z i n g o t h e r North American  o f the a r e a .  the experience o f  c i t i e s i n s i m i l a r s i t u a t i o n s as an a n a l y -  t i c a l framework to d i r e c t the i n v e s t i g a t i o n . .  Therefore, t h i s  chapter s h a l l p r o v i d e the necessary background-information by c o n s i d e r i n g the g e n e r a l trends t h a t have been observed i n Canadian and American  c i t i e s as w e l l as the methods t h a t have  been u t i l i z e d t o d e a l w i t h o l d , h i s t o r i c d i s t r i c t s .  This  w i l l p r o v i d e both a more c l e a r understanding of the n a t u r a l f o r c e s which i n f l u e n c e and d i r e c t commercial  rehabilitation  activities  and  i n s i g h t i n t o the a l t e r n a t i v e s which are  a v a i l a b l e to c i t y governments under these U r b a n i z a t i o n , The  C i t y , and  circumstances.  I t s Problems e  Rapidly  i n c r e a s i n g r a t e s of u r b a n i z a t i o n are  of the most s t r i k i n g tieth  century.  and widespread phenomena of the twen-  At the p r e s e n t  time, more than seventy .  cent of the p o p u l a t i o n of Canada l i v e s t u r n of the century, c r e a s i n g and future.  one  this  I t i s , therefore, self  3  in cities.  percentage has  shows no signs of slowing  .  per-  . Since  the  been r a p i d l y i n -  i n the  foreseeable  e v i d e n t t h a t the c i t y  and  i t s problems are of utmost importance to a l l Canadians. The activities tration  city  i s the primary focus of most of the major  of modern l i f e .  of the f a c i l i t i e s  I t contains and  systems necessary  v a r i e t y of a d m i n i s t r a t i v e , c u l t u r a l , and  recreational activities.  stands and  f o r a wide  commercial, e d u c a t i o n a l ,  At the very core of the  those commercial, c u l t u r a l ,  s t r u c t u r e s which modern man  of the c i t y .  the g r e a t e s t concen-  city  and government b u i l d i n g s  recognizes  as the- t r u e  T h i s area i s the c e n t r a l business  fibre  d i s t r i c t , or  downtown as i t i s p o p u l a r l y known.  ;  The C e n t r a l Business D i s t r i c t (CBD) of the... c i t y i s so f a m i l i a r to the average c i t i z e n t h a t he i s l i k e l y to take i t f o r granted. Under one name or another, i t i s thought of as an area of urban c o n c e n t r a t i o n t h a t has been i n e x i s t e n c e s i n c e the beginning of the c i t y and t h a t w i l l l a s t as long as the c i t y endures. But the CBD,  as i t i s known today, i s r e l a t i v e l y modern, and i t s p l a c e i n the c i t y of tomorrow i s a s u b j e c t of wide debate. This uncertainty i s based upon the many problems [ f a c i n g ] . . . t h e city The problems of the c i t y , o f t e n r e f e r r e d to i n total  as the "urban c r i s i s , " rank among the. most important  i s s u e s of the l a s t h a l f of the t w e n t i e t h c e n t u r y .  I f these  i s s u e s are not r e s o l v e d , c i t i e s w i l l e v e n t u a l l y s t r a n g l e to death and become u t t e r l y Although  inhospitable.  the causes and e f f e c t s of the urban  crisis  are i n t e r r e l a t e d , the three major dilemmas of the c i t y  con-  cern the advance of obsolescence, i n c r e a s i n g c o n g e s t i o n , and -  the f l i g h t to the suburbs.  These problems are a l l caused,  a t l e a s t i n p a r t , and accentuated by, the waves of p o p u l a t i o n t h a t have, flowed i n t o c i t i e s throughput  the c e n t u r y .  I t i s sometimes d i f f i c u l t to understand how  obsoles-  cence, can occur i n North American c i t i e s s i n c e many of them are b a r e l y one hundred years o l d and they c o n t a i n concent r a t i o n s of t e c h n i c i a n s and a d m i n i s t r a t o r s w i t h a p p r o p r i a t e knowledge and s k i l l s t h a t c o u l d be u t i l i z e d problems. advancing  t o ' a v e r t such  However, obsolescence goes hand-in-hand w i t h age u n l e s s never-ending,  extensive  programmes are maintained i n the c i t y . programmes have not been c a r r i e d out.  revitalization  In g e n e r a l , these Modern technology  c o n t r i b u t e d t o the development of obsolescence w i t h i n the  has  c i t i e s because the r a p i d changes t h a t are a p a r t of  this  t e c h n i c a l age have o c c u r r e d a t such a r a p i d pace t h a t the • c i t y and i t s c i t i z e n s have not been a b l e to a d j u s t w i t h s u f f i c i e n t speed.  The  r e s u l t has been t h a t many o l d e r s t r u c -  t u r e s are no l o n g e r s u i t e d to the purpose o r i g i n a l l y and  cannot r e a d i l y be adapted to other  intended  uses.  J u s t l i k e automobiles and r e f r i g e r a t o r s , c i t i e s and p a r t s of c i t i e s become o b s o l e t e from the moment they are produced--and sometimes b e f o r e . Obsolescence i s the r e v e r s e of p r o g r e s s ; the f a s t e r p r o g r e s s develops, the more obsolescence occurs. Only i n a stagnant s o c i e t y i s t h e r e no need f o r renewal. In Canada, as our c i t i e s are r a p i d l y growing and maturing, the p a t t e r n s and s t r u c t u r e s t h a t have been developed to serve the urban l i f e of yesterday are no longer s u i t e d to serve the l i f e of today and tomorrow.5 The a b i l i t y of c i t y s t r e e t s to handle  current  volumes of t r a f f i c has d e c l i n e d s t e a d i l y as modern man put more and more c a r s on the road. sit  has  At the same time, t r a n -  systems are g e n e r a l l y o b s o l e t e or even n o n - e x i s t e n t  so  t h a t urban c i t i z e n s are l e f t to fend f o r themselves i n r e g a r d to t r a n s p o r t a t i o n . Y e t , . l i k e i t or not, the automobile can no l o n g e r be banished -from our l i v e s , i f only because i t now o f f e r s an escape from the problem i t has c r e a t e d . I t i s now the f a s t e s t means on hand to take us away from a l l the o t h e r automobiles as w e l l as from the sameness of scene, the d u l l n e s s of l i f e , and, s a d l y , to and from our a i l i n g downtowns.6 As the problems of l i v i n g i n the c i t y have mounted, g r e a t masses of m i d d l e - c l a s s North Americans have r e a c t e d by  f l e e i n g to the suburbs and along w i t h them have gone subs t a n t i a l numbers of commercial and i n d u s t r i a l f i r m s .  This  •has r e s u l t e d i n d r a s t i c a l l y reduced tax bases f o r c i t y governments  and has c r e a t e d massive t r a f f i c  move t o and from t h e i r jobs i n the c i t y . to  jams as workers  This trend  appears  be c o n t i n u i n g and i s even a c c e l e r a t i n g as the p r e l i m i n a r y  r e s u l t s o f the 1970 United S t a t e s census show t h a t "suburbani7 tes  outnumber r e s i d e n t s of i n n e r c i t i e s f o r the f i r s t The above mentioned  time."  f a c t o r s have combined and  i n t e r a c t e d to produce a m u l t i t u d e of problems which form the urban c r i s i s - - " f a l l i n g r e t a i l  s a l e s , tax bases i n jeopardy,  stagnant r e a l - e s t a t e v a l u e s , i m p o s s i b l e t r a f f i c and p a r k i n g 8 c o n d i t i o n s , f a i l i n g mass t r a n s i t , e n c i r c l e m e n t by slums," u n w i l l i n g n e s s o f l e n d i n g i n s t i t u t i o n s t o advance l o a n s t o 9 r e s i d e n t s and b u s i n e s s e s i n c e r t a i n areas of the c i t y , neighbourhood d e t e r i o r a t i o n , and the i n a b i l i t y of c i t y governments t o p r o v i d e adequate l e v e l s o f m u n i c i p a l  services.^  B l i g h t S t r i k e s the Downtown The most complex and one o f the most'vexing problems in-most... c i t i e s i s the decay and premature o b s o l e s c e n c e found i n many n e i g h bourhoods, commercial d i s t r i c t s , and i n d u s t r i a l a r e a s . The c o n d i t i o n s t h a t c h a r a c t e r i z e the problem a r e c o l l e c t i v e l y known as ' b l i g h t . ' 1 1 T h i s a l l - i n c l u s i v e term which i s used t o d e s c r i b e the causes of  the problems o f the c i t y t h a t r e l a t e to d e t e r i o r a t i o n ,  o b s o l e s c e n c e , and decay must.be c o n s i d e r e d most important i s s u e i n the c i t y Generally,  as the s i n g l e  today.  b l i g h t r e s u l t s from the n e g l e c t of the  p h y s i c a l maintenance of s t r u c t u r e s and improvements and from a f a i l u r e t o adapt t o c u r r e n t c o n d i t i o n s .  Specifically,  b l i g h t i s the r e s u l t o f : 1.  2.  3.  4.  5.  6. 7.  f a u l t y l a n d use p a t t e r n s — areas go i n t o d e c l i n e , because incompatible p a t t e r n s of land use are allowed t o develop and s p e c i f i c areas are not put to t h e i r b e s t use; f a u l t y s u b d i v i s i o n or s t r e e t layout d e s i g n b l i g h t occurs where improper standards were employed or where standards d i d not e x i s t a t the time t h a t the d i s t r i c t was b u i l t up; inadequate t r a n s p o r t a t i o n f a c i l i t i e s - - t h i s c r e a t e s c o n g e s t i o n which f o r c e s the p o p u l a t i o n t o seek a l t e r n a t i v e routes or t o avoid congested areas which then go i n t o d e c l i n e ; improper p o p u l a t i o n d e n s i t i e s and land c o v e r a g e — leads t o d e t e r i o r a t i o n caused by c o n g e s t i o n and c o n v e r s i o n of f a c i l i t i e s to uses f o r which they were not designed; poor o r i g i n a l d e s i g n and c o n s t r u c t i o n o f b u i l d i n g s — t h i s u s u a l l y occurs i n o l d e r areas and r e s u l t s i n n e g l e c t of r e p a i r s and a l t e r a t i o n s because they become too expensive i n r e l a t i o n to r e a l i z e d benefits; inadequate p u b l i c s e r v i c e s — i t i s i m p o s s i b l e f o r an area to f u n c t i o n p r o p e r l y without adequate municipal services; o b s o l e s c e n c e — t h i s may be c l a s s e d a s - s t y l e obsolescence ( b u i l d i n g s become impossible t o m a i n t a i n due t o h i g h c o s t s ) , or t e c h n o l o g i c a l obsolescence ( t e c h n i c a l developments necess i t a t e s w i t c h i n g t o new s t r u c t u r e s which i n c o r p o r a t e the l a t e s t equipment and d e s i g n s ) . Obsolescence can be the r e s u l t of e i t h e r the abuse of p r o p e r t y or the l a c k of maintenance and r e p a i r . 1 2 The  and  s o c i a l c o s t s of b l i g h t are e x t e n s i v e ,  immeasurable.  diverse,  They range from the e f f e c t s o f the c u l t u r a l  d e p r i v a t i o n t h a t i s imposed upon the r e s i d e n t s of b l i g h t e d areas t o the l o s s o f v i t a l i t y and a t t r a c t i o n i n l a r g e areas i n the c i t i e s .  The economic consequences o f b l i g h t are  threefold: 1. 2. 3.  B l i g h t reduces tax c o l l e c t i o n s and .increases municipal services costs, B l i g h t leads to i n e f f i c i e n t l a n d use, B l i g h t t r i g g e r s the f l i g h t of i n d u s t r y , commerce, and housing to the suburbs.13  Urban Renewal Even though the r e b u i l d i n g and renewing of c i t i e s 14 i s a p r o c e s s t h a t i s as o l d as the c i t y  itself,  the r e c e n t  i n t e n s i v e u r b a n i z a t i o n of North American c i t i e s has c r e a t e d p r e v i o u s l y unimagined, complex problems f o r l o c a l Throughout the 1930's and 1940's, pal  governments  in city  governments.  a f t e r c i t y , munici-  were shocked i n t o th'e r e a l i z a t i o n t h a t  c i t i e s had become s e v e r e l y b l i g h t e d and would  eventually  completely decay u n l e s s some means o f comprehensive and p r e v e n t i t i v e a c t i o n was  undertaken.  their  corrective  Programmes were needed  to r e p a i r and r e p l a c e o l d and o b s o l e t e b u i l d i n g s , , t o r e j u v e n a t e decayed and rundown areas, and to s o l v e the problems of cong e s t i o n and overcrowding.  The c o - o p e r a t i v e schemes and  p r o p o s a l s t h a t were put forward t o r e b u i l d the c i t i e s by the t h r e e l e v e l s of g o v e r n m e n t ^  became known as "urban r e n e w a l .  The goals of urban renewal are g e n e r a l l y t o e l i m i n a t e b l i g h t and prevent i t s o c c u r r e n c e .  Although the form of  administration place,  and  f i n a n c i n g may  the b a s i c o b j e c t i v e s o f urban renewal are  c o n s i s t e n t and  can be broken down i n t o three  s o c i a l , economic, and p h y s i c a l 1.  2.  3.  v a r y g r e a t l y from p l a c e  to  fairly  categories—-  goals:  s o c i a l g o a l s — r e d u c t i o n of overcrowding and i n c i d e n c e o f s o c i a l i l l s ; s a f e , s a n i t a r y , and decent housing and r e c r e a t i o n f a c i l i t i e s ; h e a l t h and s o c i a l welfare; economic g o a l s — r e d u c t i o n of h i g h per c a p i t a s e r v i c e c o s t s of b l i g h t e d a r e a s ; i n c r e a s e per c a p i t a tax revenues from b l i g h t e d areas; encouragement of p r i v a t e investment; p h y s i c a l g o a l s — r e m o v a l of p h y s i c a l decay; b u i l d i n g of housing u n i t s ; improvement of v i s u a l appearance and aesthetics.17 In attempting to both e l i m i n a t e b l i g h t i n  c i t i e s and  p r e v e n t i t s spread, urban renewal does not  r e l y on one  i n f l e x i b l e methodology.  Rather, there  d i s t i n c t components which can be u t i l i z e d ,  ment.projects r e p l a c e economic r e p a i r . b y  structures  merely  are  three  i n d i v i d u a l l y or  s i m u l t a n e o u s l y , depending upon the c i r c u m s t a n c e s .  nature  the  Redevelop-  i n areas which are beyond  development of a s i m i l a r or more s u i t a b l e  (that i s , p r o j e c t s which i n v o l v e , the  "clearing  and  18 re-use of land".  ); r e h a b i l i t a t i o n i n v o l v e s  s t r u c t u r e s t h a t can be  salvaged and  the r e p a i r of  the c o r r e c t i o n of  condi-  t i o n s c o n t r i b u t i n g to b l i g h t (that i s , " r e p a i r i n g , r e f u r b i s h i n g , remodeling or r e p l a c i n g of elements of a b u i l d i n g 19 or group of b u i l d i n g s conservation and  areas  to i n s u r e c o n t i n u e d use"  seeks to p r e v e n t the decay of sound  (that i s , " p r e s e r v a t i o n  and  ); w h i l e buildings  p r o t e c t i o n of  structures  and areas a t p r e s e n t i n a c c e p t a b l e c o n d i t i o n , o r s t r u c t u r e s 20 or  areas which have a r c h i t e c t u r a l or h i s t o r i c a l v a l u e . " Although the i n t e n t i o n s o f urban renewal  legis-  l a t i o n are admirable, the r e a l i t y o f the programme has s h o r t of i t s g o a l s .  In g e n e r a l ,  ).  the a d m i n i s t r a t i v e  fallen  facili-  t i e s t h a t were e s t a b l i s h e d to oversee urban renewal p r o j e c t s have proven to be unwieldy and i n e f f e c t i v e .  The  average  p e r i o d of time from the announcement of a p r o j e c t to the 21 c l e a r a n c e of the s i t e has been from two t o f i v e y e a r s d u r i n g which time the advance ted  o f b l i g h t has r a p i d l y  accelera-  as those p r o j e c t occupants due t o be d i s p l a c e d ceased to  do r e p a i r or maintenance w e l l , the economics  work on t h e i r homes or shops.  As  of many p r o j e c t s has been such t h a t i t  has been found t o be v i r t u a l l y  impossible f o r p r i v a t e develo-  pers t o make a p r o f i t i f they undertake renewal work and the d i s p l a c e d b u s i n e s s e s and i n d i v i d u a l s o f t e n cannot a f f o r d the i n c r e a s e d r e n t s t r u c t u r e s on the new  premises once they are  22 completed. However, the major c r i t i c i s m o f urban renewal 23 projects  has been t h a t the -planners have i g n o r e d the needs  and f e e l i n g s o f the p e o p l e .  Because  of t h i s ,  many such g r e a t p r o j e c t s , i t turns o u t , have c r e a t e d s o c i a l problems as s e r i o u s as those caused by the i n a d e q u a c i e s of the o l d slum housing. The l i f e of t h e i r tenants has become o v e r - o r g a n i z e d ; many new a r r i v a l s are t e r r i f i e d by the crowds; and few o f them can q u i c k l y f i n d the e c o l o g i c a l n i c h e s which p r e v a i l e d i n t h e i r o l d , f a m i l i a r , y e t u n s a n i t a r y homes.24  In a d d i t i o n , these p r o j e c t s have f a i l e d to p r o p e r l y  allow  f o r the s o c i a l i n t e r a c t i o n t h a t human beings r e q u i r e i n order t o m a i n t a i n mental h e a l t h and i n s u f f i c i e n t c o n s i d e r a t i o n has been g i v e n  t o the problem o f d i s r u p t i o n caused by the r e -  l o c a t i o n t h a t i s c r e a t e d by the renewal p r o j e c t . Business f i r m s have g e n e r a l l y not been a f f e c t e d by urban renewal p r o j e c t s i n Canada because few o f them have been l o c a t e d w i t h i n the boundaries o f past p r o j e c t s and the urban renewal concept has only r e c e n t l y been extended t o a l l o w 25 f o r the needs o f n o n - r e s i d e n t i a l c a t e g o r i e s . renewal agencies i n the United  However,  States have b u i l t up  extensive  e x p e r i e n c e with the a p p l i c a t i o n o f urban renewal techniques to commercial f i r m s and have a t t a i n e d some very results.  negative  In most cases they have found t h a t a t l e a s t one-  t h i r d o f the b u s i n e s s e s d i s p l a c e d by' p r o j e c t s  immediately  go o u t o f business and between f o r t y t o s i x t y percent firms eventually  of the  l i q u i d a t e as a d i r e c t r e s u l t of the d i s p l a c e -  ment. At the p r e s e n t  time,.the urban renewal p r o j e c t s  planned f o r many c i t i e s i n both the United  States  and Canada,  27 are being  re-evaluated.  There has been a pronounced  shift  away from redevelopment o f " b u l l d o z e r renewal" as i t has o f t e n been c a l l e d , t o the r e h a b i l i t a t i o n  concept.  Historic Rehabilitation H i s t o r i c R e h a b i l i t a t i o n o r , a t i t i s more commonly known, h i s t o r i c p r e s e r v a t i o n , i s an o l d e r programme than the f o r m a l i z e d concept of urban renewal.  I t o r i g i n a t e d more  28 than a century  ago  and has g e n e r a l l y been i n i t i a t e d by  p r i v a t e i n t e r e s t s , r a t h e r than the p u b l i c s e c t o r , as i s the case with  urban renewal.  Although, i n most i n s t a n c e s ,  h i s t o r i c r e h a b i l i t a t i o n has not been a p a r t o f formal  urban  renewal p r o j e c t s , i t i s more and more becoming a s s o c i a t e d w i t h renewal because i t has begun to u t i l i z e governmentfunds and because i t s goals are i n l i n e w i t h the r e h a b i l i t a t i o n and c o n s e r v a t i o n  trends  t h a t have been g a i n i n g f o r c e i n  the urban renewal movement. Through urban renewal a c t i o n , h i s t o r i c s t r u c t u r e s can have a new chance t o s u r v i v e — t o be enjoyed i n a s e t t i n g t h a t i s s u i t a b l e and harmonious. Located i n the o l d e s t s e c t i o n s of our c i t i e s , these s t r u c t u r e s have o f t e n been overwhelmed by environments o f decay and d e t e r i o r a t i o n . 2 9 The and  g o a l of h i s t o r i c r e h a b i l i t a t i o n , i s t o preserve  r e s t o r e b u i l d i n g s and areas t h a t form p a r t o f the n a t i o n a l  or p r o v i n c i a l c u l t u r a l and h i s t o r i c a l h e r i t a g e .  "Modern  p r e s e r v a t i o n i s . . . d i r e c t e d toward p e r p e t u a t i n g a r c h i t e c t u r a l and  a e s t h e t i c as w e l l . a s  These values  h i s t o r i c and p a t r i o t i c  values."^  are embodied i n the o f f i c i a l d e f i n i t i o n of  h i s t o r i c p r e s e r v a t i o n t h a t i s u t i l i z e d by the N a t i o n a l  Trust  f o r H i s t o r i c P r e s e r v a t i o n , one o f the l e a d i n g American  his-  t o r i c preservation associations:  "Historic preservation i s  a well-rounded program of s c i e n t i f i c r e s e a r c h p r o t e c t i o n , r e s t o r a t i o n , maintenance, and t i o n o f s i t e s , b u i l d i n g s , and  objects  and  study,  the i n t e r p r e t a - .  significant in  31 [National]  h i s t o r y and  culture."  The  " h i s t o r i c " v a l u e of  s p e c i f i c b u i l d i n g s or o t h e r s t r u c t u r e s has i n t e r p r e t e d so t h a t p r e s e r v a t i o n protect  everything  burial sites. lobbying  been  groups have undertaken t o  from c l a s s i c , o l d b u i l d i n g s  The  to  Indian  methods used by p r e s e r v a t i o n i s t s  for p r o t e c t i v e l e g i s l a t i o n , gathering  the c a t a l o g u i n g  broadly  include  of data f o r  of h i s t o r i c s i t e s , c o n d u c t i n g programmes  of e d u c a t i o n and  p u b l i c i t y f o r the g e n e r a l  a c t u a l r e s t o r a t i o n and  conservation  p u b l i c , and  of d e s i g n a t e d  U n t i l approximately ten years ago, r e h a b i l i t a t i o n movement was  the  sites. historic  mainly content to r e s t o r e  v i d u a l b u i l d i n g s to b e . u t i l i z e d as museums or  the  indi-  show-places.  However, they have r e c e n t l y begun to widen the scope of t h e i r a c t i v i t i e s and  have undertaken r e s t o r a t i o n p r o j e c t s  d i s t r i c t s as w e l l as f o r s i g n i f i c a n t commercial and structures.  Restoration  industrial  a c t i v i t i e s have been a p p l i e d  groupings o f b u i l d i n g s and unique c h a r a c t e r  f o r whole  to  whole areas i n order to r e t a i n the  of e n t i r e s t r e e t s or b l o c k s .  Because of  these changes, p r e s e r v a t i o n i s t s have been f o r c e d to r e a l i z e t h a t they must begin to f i n d contemporary uses f o r most of the s t r u c t u r e s t h a t are p r e s e r v e d so t h a t the b u i l d i n g s generate s u f f i c i e n t income to pay t o r a t i o n c o s t s and  f o r a c q u i s i t i o n and  thereby g a i n an added measure of  can  res-  protection  as e c o n o m i c a l l y s e l f - s u p p o r t i n g s t r u c t u r e s .  Aspects  to e c o n o m i c a l l y v i a b l e r e s t o r a t i o n are d i s c u s s e d following  relevant  i n the  section.  Commercial R e h a b i l i t a t i o n For  -  the purposes of t h i s t h e s i s , the term "commercial  r e h a b i l i t a t i o n " i s considered  i n a somewhat narrower sense  than the commonly accepted d e f i n i t i o n of the e x p r e s s i o n . most c a s e s , commercial r e h a b i l i t a t i o n i s u s u a l l y to be any r e h a b i l i t a t i o n a c t i v i t y t i o n and r e s t o r a t i o n )  In .  considered  (that i s , p h y s i c a l a l t e r a -  c a r r i e d out on b u i l d i n g s and areas  o c c u p i e d by commercial f i r m s .  These f i r m s can be l o c a t e d  anywhere, but a r e u s u a l l y i n o r near the CBD and these rehab i l i t a t i o n a c t i v i t i e s are undertaken with the i n t e n t o f r e s t o r i n g the economic h e a l t h o f the a f f e c t e d  firms.  H e n c e f o r t h , the term "commercial r e h a b i l i t a t i o n " w i l l be taken to mean r e h a b i l i t a t i o n a c t i v i t i e s a p p l i e d t o b u i l d i n g s t h a t are l o c a t e d  i n l e g a l l y defined  historic  d i s t r i c t s o r t o s t r u c t u r e s t h a t would q u a l i f y f o r h i s t o r i c r e h a b i l i t a t i o n and t h a t house, or w i l l i n the f u t u r e commercial f i r m s .  contain,  Furthermore, the r e h a b i l i t a t i o n must be  undertaken w i t h the i n t e n t i o n t h a t . t h e  long-term  financial  r e t u r n w i l l be s u f f i c i e n t to j u s t i f y the c a p i t a l investment. I f i t was n o t so lengthy,  p o s s i b l y a b e t t e r term f o r these  a c t i v i t i e s would be " h i s t o r i c - c o m m e r c i a l r e h a b i l i t a t i o n . "  The m a j o r i t y of commercial r e h a b i l i t a t i o n p r o j e c t s have been undertaken by businessmen or entrepreneurs •than h i s t o r i c p r e s e r v a t i o n s o c i e t i e s ,  although  the number of  commercial areas and b u i l d i n g s r e h a b i l i t a t e d by the has  s t e a d i l y increased during recent years.  statement  i s t y p i c a l of the new  rather  societies  The f o l l o w i n g  o u t l o o k of p r e s e r v a t i o n i s t s : 1  Not a l l h i s t o r i c s t r u c t u r e s should be r e s t o r e d as p e r i o d museums. Even w i t h the s u b s t a n t i a l i n c r e a s e i n tourism, any g i v e n community can support only a l i m i t e d number of such f a c i l i t i e s . I f they are to s u r v i v e , p r o d u c t i v e contemporary uses must be found f o r most noteworthy o l d s t r u c tures. In r e s i d e n t i a l areas, these may be r e t a i n e d as housing or i n o t h e r uses compatible w i t h the r e s i d e n t i a l c h a r a c t e r of the a r e a . For h i s t o r i c s t r u c t u r e s i n or near the downtown area the problem becomes more d i f f i c u l t . Depending on i t s l o c a t i o n an o l d house might become an o f f i c e , a shop, an a r t g a l l e r y , or a headquarters b u i l d i n g for a l o c a l organization.32 Other g e n e r a l uses t h a t have been found  for historic  t u r e s are as premises f o r r e s t a u r a n t s , tea-rooms,  struc-  libraries,  book s t o r e s , and f i n e a r t s museums, as w e l l as the more s p e c i f i c examples of a t o u r i s t r e c e p t i o n c e n t r e , community c e n t r e , p a r i s h house, l e g i o n h a l l , n u r s i n g home, study or chamber of commerce  centre,  headquarters.  Commercial r e s t o r a t i o n p r o j e c t s r e c e n t l y undertaken by i n d i v i d u a l businessmen have been i m p r e s s i v e l y s u c c e s s f u l , p a r t i c u l a r l y i n San F r a n c i s c o and New of r e a l i z e d return-on-investment  Orleans.  Both i n terms  and the a c c l a i m  them by the p u b l i c , the r e s u l t s have been v e r y  accorded  rewarding.  Yet the businessmen's motives and  goals  are o f t e n much the  same as those of the pure p r e s e r v a t i o n i s t . •for w i d e l y p r a i s e d C h i r a r d e l l i Square i n San pointed  out  The  architect  Francisco  that  o l d b u i l d i n g s have a q u a l i t y t h a t can't poss i b l y be r e p l a c e d i n p r e s e n t day terms. I t i s very important to save a percentage of o l d b u i l d i n g s because the f a b r i c t h a t r e s u l t s r e presents a complete h i s t o r y of the c i t y . This i s what g i v e s a c i t y i t s c h a r a c t e r . But saving o l d b u i l d i n g s j u s t f o r l o o k s , or t o s a t i s f y a n t i q u a r i e s ' whims, i s e c o n o m i c a l l y unsound. B u i l d i n g s c o u l d s u r v i v e only i f they c o u l d be put to use.34 However, the major d i f f e r e n c e between these businessmen the members of p r e s e r v a t i o n  s o c i e t i e s i s t h a t the b u s i n e s s  i n v e s t o r s are much more aware of the market v a l u e demand f o r space i n these s i t e s . and  fact  that  bookstores,  s t o r e s - - i t i s these k i n d of e n t e r p r i s e s f o r  which o l d b u i l d i n g s are so  congenial."^^  Commercial r e s t o r a t i o n , p a r t i c u l a r l y area or one  the  or good steak house, the a r t s t o r e ,  the u n i v e r s i t y c l u b , the f i n e t a i l o r , even the antique  that  When s e l l i n g or r e n t i n g  space i n these r e s t o r e d b u i l d i n g s , they p l a y up intimate restaurant  market  They know t h a t q u a i n t n e s s  can be e x p l o i t e d f o r f i n a n c i a l g a i n .  and  and  h i s t o r i c a l c o n n o t a t i o n s are s a l e a b l e commodities  "the  and  new  to r e h a b i l i t a t i o n , i s very  i n an unknown  c o s t l y and  extremely  36 risky. a few  The  c o s t of r e s t o r a t i o n and  a l t e r a t i o n can vary  thousand d o l l a r s f o r a s m a l l , one-storey b u i l d i n g to  from  $10 m i l l i o n o r more f o r a b u i l d i n g o r b u i l d i n g s  t h a t occupy  37 a complete c i t y b l o c k . historic  A 1968 study o f the Vieux C a r r e  area i n New Orleans found t h a t the c o s t t o exten-  s i v e l y r e p a i r and renovate f i v e o u t o f nine s t r u c t u r e s i n a representative increase  sample, would exceed the a n t i c i p a t e d 38 i n market v a l u e . The  d e c i s i o n o f whether o r not a s p e c i f i c b u i l d i n g  s h o u l d be r e h a b i l i t a t e d r e s t s upon two b a s i c the  considerations-  soundness o f the s t r u c t u r e and the outcome o f a c o s t -  benefit analysis. S t r u c t u r a l soundness i s e s s e n t i a l , as without i t a major earthquake c o u l d crumble a m u l t i m i l l i o n d o l l a r investment i n seconds. The b u i l d i n g ' s economic f e a s i b i l i t y i s determined by t a k i n g i t s base c o s t and adding the p r i c e o f r e s t o r i n g and remodeling. I f when t o t a l l e d the d e v e l o p e r can s t i l l l e a s e a t a c o m p e t i t i v e r e n t a l the b u i l d i n g i s e c o n o m i c a l l y sound and worthy o f r e s t o r a t i o n . 3 9 The  economic e v a l u a t i o n  i s f u r t h e r c o m p l i c a t e d by a problem 40  which has been c a l l e d "the hidden c o s t f a c t o r . " involves  expenses c r e a t e d  This,  because i t i s o f t e n i m p o s s i b l e  to  know, s t r u c t u r a l c o n d i t i o n or d e s i g n p e c u l i a r i t i e s u n t i l the renovation  work has commenced.  cause l a r g e c o s t i n c r e a s e s ,  I f these unknown f a c t o r s  the p r o j e c t can e a s i l y become  a losing proposition. A number of advantages accrue t o commercial that locate i n r e h a b i l i t a t e d d i s t r i c t s .  firms  A s i d e from the  proven a b i l i t y o f many of these areas to generate customer t r a f f i c , the merchant w i l l o f t e n b e n e f i t from savings rental costs.  Many r e s t o r e d b u i l d i n g s i n San  "space at 10 cents  to 55 cents  l e s s per  in  Francisco offer  square f o o t than  the  41 towering downtown h i g h r i s e . " uniqueness have s t r o n g  Then, too, the charm  appeal f o r p o t e n t i a l customers  the shop-owner can  u s u a l l y customize the r e s t o r e d 42 s t o r e to s u i t h i s p a r t i c u l a r needs. I t i s a c h a r a c t e r i s t i c of commercial  owner or merchant.  which b e n e f i t the c i t y and c i t y derives  and  retail ,  rehabilitation  a c t i v i t i e s t h a t the b e n e f i t s do not accrue o n l y to property  and  the  There are a number of advantages community at l a r g e as w e l l .  The  c u l t u r a l - a n d a e s t h e t i c gains because p o t e n t i a l  eyesores are b l i g h t e d areas are upgraded to v i a b l e , v i t a l components of the urban mix.  A l s o , 'the e d u c a t i o n a l  o l d b u i l d i n g s t h a t have been p r e s e r v e d The  must not be  major b e n e f i t s to the c i t y and  are of an economic n a t u r e .  the  economy from t o u r i s t spending.  turn, increases  overlooked.  community  tourist traffic  thereby draw s u b s t a n t i a l amounts o f money i n t o the  to m a i n t a i n and  of  H i s t o r i c areas t h a t have been  commercially r e h a b i l i t a t e d s t i m u l a t e  serves  value  and.  local  In a d d i t i o n , r e h a b i l i t a t i o n  increase property  the tax r e t u r n to the  values  which, i n  city.  A steady i n f l u x of t o u r i s t s i n t o a c i t y can have a pronounced e f f e c t upon the area's economy.  "The  United  S t a t e s Department o f Commerce has r e p o r t e d t h a t i f a community can a t t r a c t an average  o f 2 4 . t o u r i s t s p e r day through-  out theyear, i t would be e c o n o m i c a l l y comparable t o a c q u i r i n g 43 a new i n d u s t r y w i t h an annual p a y r o l l o f $100,000." erous h i s t o r i c a l areas throughout  Num-  North American now a t t r a c t  more than one m i l l i o n v i s i t o r s per y e a r .  "In S t . Augustine,  F l o r i d a , and Winston-Salem, North C a r o l i n a , t o u r i s m b r i n g s i n more than $10 m i l l i o n y e a r l y , w h i l e New Orleans s e t s the v a l u e o f income from i t s h i s t o r i c a r c h i t e c t u r e a t $150 44 million yearly." There are both p o s i t i v e and n e g a t i v e aspects t h a t r e s u l t from i n c r e a s i n g p r o p e r t y value a t t r i b u t a b l e t o commercial r e h a b i l i t a t i o n .  I t can impose a h a r d s h i p on the  land-owner i f p r o p e r t y taxes r i s e t o a l e v e l beyond h i s a b i l i t y t o pay.  On the other hand, i f assessments i n c r e a s e  w i t h the p r o p e r t y v a l u e , the r e s u l t a n t i n c r e a s e d t a x revenues can s u b s t a n t i a l l y i n c r e a s e a c i t y ' s income.  Montague and  Wrenn i n P l a n n i n g f o r P r e s e r v a t i o n r e p o r t a s t r i k i n g  example  of the e f f e c t of commercial r e h a b i l i t a t i o n upon assessed property values.  One s i d e of a s p e c i f i c b l o c k i n Richmond,  V i r g i n i a , was r e s t o r e d , w h i l e the other s i d e was n o t , w i t h the r e s u l t t h a t , from 1958 t o 1963, the assessed v a l u e o f the r e s t o r e d p r o p e r t y i n c r e a s e d 136 percent w h i l e the i n c r e a s e of the u n r e s t o r e d p o r t i o n was o n l y 30 p e r c e n t over the same . . . . 45 five-year period.  H i s t o r i c and Commercial R e h a b i l i t a t i o n  Activities  i n Three North American C i t i e s Beacon H i l l ,  the Vieux C a r r e , C h a r l e s t o n , George-  town, C h u r c h i l l , Boston Square, S a i n t Augustine, Sacremento, Old. M o n t r e a l , G h i r a r d e l l i Square, Winston-Salem of  the l i s t  c i t i e s and d i s t r i c t s i n which h i s t o r i c b u i l d i n g s and  areas have been r e s t o r e d f o r commercial use goes on and on. However, f o r purposes of i l l u s t r a t i o n , three s p e c i f i c  cities  have been s e l e c t e d as r e l e v a n t examples o f what can be accomp l i s h e d through the use o f commercial r e h a b i l i t a t i o n  tech-  niques.  New  Orleans i s i n c l u d e d because i t s Vieux C a r r e  district  i s the l a r g e s t and one of the o l d e s t commercial  r e h a b i l i t a t i o n areas i n North America.  A number of r e h a b i l i -  t a t i o n areas i n San F r a n c i s c o are examined because they are e n t i r e l y the r e s u l t of p r i v a t e i n i t i a t i v e and because the life  s t y l e of the c i t y  (that i s ,  i s so s i m i l a r t o that of Vancouver  the s o - c a l l e d "West Coast l i f e  style").  In order  to  p r e s e n t a Canadian example, the B a s t i o n Square p r o j e c t  of  V i c t o r i a i s a l s o examined.  Two  a d d i t i o n a l reasons f o r  i n c l u d i n g B a s t i o n Square r e l a t e t o the f a c t that i t demons t r a t e s t h a t commercial r e h a b i l i t a t i o n can be s u c c e s s f u l l y accomplished i n a B r i t i s h Columbia framework  and the f a c t  t h a t i t c o n t a i n s b u i l d i n g s of the same type and e r a as those in  Gastown.  The  French  Quarter  C a r r e " as i t i s o f f i c i a l l y  of New  Orleans,  i d e n t i f i e d , i s probably  •most w i d e l y known h i s t o r i c d i s t r i c t W i t h i n an area of approximately contained  In a study  C o r p o r a t i o n found  "Vieux  the States.  hundred c i t y b l o c k s i s stores, hotels,  s p o t s , and r e s t a u r a n t s t h a t , i n t o t a l ,  a s u b s t a n t i a l p o r t i o n of New  volume.  one  i n the U n i t e d  an i n t e n s i v e c o n c e n t r a t i o n of r e t a i l  entertainment for  or the  accounts  O r l e a n s ' aggregate s a l e s  some y e a r s ago,  The  Real E s t a t e Research  that  -  '  the Vieux C a r r e r e p r e s e n t s the s i n g l e l a r g e s t d a y - i n and day-out c o n c e n t r a t i o n of our-of-town v i s i t o r s t h a t e x i s t s anywhere i n the United States. 7 4  They concluded  t h a t the Vieux C a r r e was  "one  of the  single  most important  elements i n the economic base of the  city."  48  In 1967,  i t was  estimated  t h a t the Vieux C a r r e drew 33  million  v i s i t o r s , which i s equal to a f u l l - t i m e c i t y of 200,000 w i t h 49 $385 m i l l i o n i n The  purchases.  Vieux C a r r e has been p r o t e c t e d by h i s t o r i c  l e g i s l a t i o n s i n c e 1937,  but minimal development of the  t r i c t has been c a r r i e d out by the c i t y .  area  dis-  V i r t u a l l y a l l of the  area r e h a b i l i t a t i o n has been c a r r i e d out by p r i v a t e groups and b u s i n e s s e s .  In 1968,  the Bureau of Governmental Research  p u b l i s h e d a study of the Vieux C a r r e , ^ which examined the c u r r e n t s i t u a t i o n and p a s t t r e n d s , i n order to recommend long range h i s t o r i c p r e s e r v a t i o n p o l i c i e s  f o r the d i s t r i c t .  The  programme t h a t was extensive  proposed w i l l , i f adopted i n t o t a l ,  f i n a n c i a l a i d and w i l l ensure t h a t the  community  r e c e i v e s maximum b e n e f i t from the area, y e t , w i l l adequate p r o t e c t i o n f o r the T h i s study i s notable  that i t w i l l l i k e l y provide  the model f o r the  undertakings of many c i t i e s  i n the  old  Francisco  areas.^  areas,  rehabilitation  future.  i n that  rehabilitation  i n s i z e from s i n g l e l o t s to whole b l o c k s ,  s c a t t e r e d throughout the m e t r o p o l i t a n but one  area.  o f the p r o j e c t s have been the r e s u l t of the  ment a c t i o n .  are  In a d d i t i o n , a l l  of i n d i v i d u a l businesmen, r a t h e r than of any  city,  structured  i s world famour f o r the charm of i t s  I t i s a unique c i t y  ranging  Carre.  an immense under-  t a k i n g but, what i s more important, i t i s so w e l l  San  provide  s t r u c t u r e s of the Vieux  since i t represents  provide  initiative  form of govern-  There are so many r e s t o r e d b u i l d i n g s i n the  t h a t i t has  been s a i d t h a t "San  F r a n c i s c o has more  p r e s e r v a t i o n i s t s per square i n c h than any  other  city  in  • -.52 America." San alive city  F r a n c i s c o has  succeeded i n c r e a t i n g a v i b r a n t ,  by combining modern b u i l d i n g s s i d e - b y - s i d e  r e s t o r e d and  r e h a b i l i t a t e d areas.  The  city's  with  experience  w i t h commercial r e h a b i l i t a t i o n commenced i n .the e a r l y 1950's w i t h the Jackson Square p r o j e c t and  additional restoration  areas have been added y e a r l y s i n c e t h a t time.  In two  the most w i d e l y p u b l i c i z e d p r o j e c t s , entrepreneurs  of  c r e a t e d two commercial developments out of l o n g - i d l e i n d u s t r i a l b u i l d i n g s on the n o r t h shore, w i t h a s e n s i b i l i t y f o r the o l d not o f t e n found i n America. G h i r a r d e l l i Square and the Cannery, o n l y two b l o c k a p a r t , have grouped, h i g h - q u a l i t y shops and r e s t a u r a n t s w i t h garden t e r r a c e s , arcades and p l a z a s i n s i d e the w a l l s of mellow b r i c k n i n e t e e n t h c e n t u r y b u i l d i n g s commanding incomparable views o f the bay. The r e s u l t , i n both cases, has been a f e e l i n g t h a t i t i s a c e n t r e not f o r c o n v e n t i o n a l shopping but f o r l e i s u r e , e p i t o m i s i n g a new q u a l i t y of l i f e i n America. Other p r o j e c t s i n c l u d e Icehouse Number's One decorating  showrooms) and  Although no  and Two  the r e j u v e n a t i o n  f i g u r e s are a v a i l a b l e on  of these developments to San  (interior,  of Union S t r e e t .  the economic importance  Francisco,  i t has  t h a t they draw as many as 15,00 0 o u t - o f - s t a t e  been estimated shoppers  per  involved  the  , 5 4 day. V i c t o r i a ' s B a s t i o n Square P r o j e c t use  of c l a s s i c urban renewal l a n d assembly techniques  d i d not  r e s u l t i n " b u l l d o z e r renewal."  V i c t o r i a purchased s e v e r a l o b s o l e t e square adjacent and  to the  Instead,  the C i t y of  b u i l d i n g s surrounding a  s i t e of the o r i g i n a l F o r t  r e s o l d them to p r i v a t e d e v e l o p e r s ,  age,  square i n such a way  unusual p h y s i c a l arrangement and  Victoria  s u b j e c t to C i t y  acceptance o f s a t i s f a c t o r y development p r o p o s a l s . undertook to develop the  but  s t a t e of  The  that " h i s t o r y , preservation  were u t i l i z e d t o r e c r e a t e a unique square honouring the teenth and  century  o r i g i n s of the area  shopping a c t i v i t y , amd  century,  i n the  City  nine-  f i e l d of commercial  to g i v e i t a f r e s h s t a r t , i n t h i s  as a modern p e d e s t r i a n m a l l . "  .  The  rejuvenation  of B a s t i o n Square was  urban renewal p r o j e c t under the N a t i o n a l  between the F e d e r a l and  The and  success,  but has  Power A u t h o r i t y .  Although few  aesthetic  b u s i n e s s e s t h a t have l o c a t e d  space and  has  i s underdeveloped i n  not been able to draw s u f f i c i e n t  i n t o the area to be r a t e d as an u n q u a l i f i e d  ber of g e n e r a l the m a j o r i t y  success.  examined the development  e v o l u t i o n of North American c i t i e s and  has  and  noted t h a t a num-  f o r c e s have influence'd the course of events i n  of o l d , m e t r o p o l i t a n  areas.  These f o r c e s  the r a p i d l y i n c r e a s i n g r a t e of u r b a n i z a t i o n suburbanization twentieth  2.  The  f a l l e n somewhat s h o r t of the a n t i c i p a t e d  T h i s chapter has  1.  shared  P r o v i n c i a l governments, the C i t y ,  on the Square have f a i l e d , the area terms o f r e t a i l  be  inexpen-  been w i d e l y acclaimed f o r i t s v i s u a l and  b u s i n e s s volume.  traffic  and  f i n a l c o s t of $245,000 was  the B r i t i s h Columbia Hydro and  p r o j e c t has  first  Housing A c t to  r e s t o r e d by means of t h i s form of i m a g i n a t i v e sive rehabilitation.  the  t h a t has  continued  include and  throughout  the  century;  the i n c r e a s i n g c o n c e n t r a t i o n s the advancing age  of p o p u l a t i o n  of c i t y s t r u c t u r e s and  the  of l o c a l governments to r e a c t have c r e a t e d urban c r i s i s - — o b s o l e s c e n c e , c o n g e s t i o n , r e s u l t a n t f l i g h t to the  suburbs;  plus  and  failure  the the  3.  t h i s o b s o l e s c e n c e , d e t e r i o r a t i o n , and decay has produced b l i g h t e d areas throughout the c i t y  which  has, i n t u r n , imposed harsh s o c i a l and economic c o s t s on the c i t y ; 4.  the t h r e e l e v e l s of government has attempted to combat these problems.with v a r i o u s urban renewal p l a n s which u t i l i z e redevelopment, or c o n s e r v a t i o n a c t i v i t i e s  rehabilitation,  i n an attempt t o e l i m i -  nate b l i g h t and p r e v e n t i t s o c c u r r e n c e ; 5.  c e r t a i n segments of the p o p u l a t i o n have r e c o g n i z e d the c u l t u r a l and s o c i a l v a l u e o f t h r e a t e n e d o l d b u i l d i n g s and d i s t r i c t s and have r e a c t e d by attempting t o p r e s e r v e and r e s t o r e h i s t o r i c tures  (that i s , these groups have undertaken  h i s t o r i c preservation 6.  struc-  projects);  i t became e v i d e n t t h a t each c i t y c o u l d only support a l i m i t e d number o f r e s t o r e d b u i l d i n g s as museums or show p l a c e s .  The t r e n d then s h i f t e d t o com  m e r c i a l r e h a b i l i t a t i o n which attempts t o f i n d contemporary, s e l f - s u p p o r t i n g uses f o r r e s t o r e d  historic  s t r u c t u r e s so t h a t t h e i r r e t e n t i o n can be economically  justified.  T h i s i n f o r m a t i o n can be u t i l i z e d as a framework t o a n a l y z e the s i t u a t i o n i n Gastown.  Unless the O l d Townsite  r e p r e s e n t s a unique case i n the e v o l u t i o n o f a subarea o f a  c i t y , these trends should be i d e n t i f i a b l e as f o r c e s which have shaped the development of the. d i s t r i c t .  The  following  chapter s h a l l o u t l i n e the changes t h a t have taken p l a c e i n . Gastown i n r e l a t i o n and commercial  to the g e n e r a l concepts o f urban renewal  rehabilitation.  N a t i o n a l T r u s t f o r H i s t o r i c P r e s e r v a t i o n , A Report on P r i n c i p l e s and G u i d e l i n e s f o r H i s t o r i c P r e s e r v a t i o n i n the United S t a t e s , Washington, D.C.: N a t i o n a l T r u s t on H i s t o r i c P r e s e r v a t i o n , 1964, p. 10. 2 J . M. M i l l e r , ed., New L i f e f o r C i t i e s Around the World: I n t e r n a t i o n a l Handbook on Urban Renewal, New York: Books I n t e r n a t i o n a l , 1959, t i t l e page. 3 L. O. Stone, Urban Development i n Canada: An I n t r o d u c t i o n to the Demographic A s p e c t s , Ottawa: Dominion Bureau of S t a t i s t i c s , 1967, p. 15. 4 R. E. Murphy, J . E. Vance, and B. J . E p s t e i n , C e n t r a l Business D i s t r i c t S t u d i e s , Worcester, Mass.: Clark U n i v e r s i t y , 1955, p. 301. ^H. Blumenfeld, The Modern M e t r o p o l i s : ItsOrigin, Growth, C h a r a c t e r i s t i c s , and P l a n n i n g , Cambridge, Mass..: The M.I.T. P r e s s , 1967, p. 190. ^C. Abrams, "Downtown Decay and R e v i v a l , " J o u r n a l of the American I n s t i t u t e of P l a n n e r s , V o l . 27, (February, 1961), p. 5. 7 The Vancouver Sun, "Trek t o the Sun, Suburbia Shown i n New U.S. Census," September 2, 1970, p. 58. 8  The E d i t o r s o f Fortune Magazine, The E x p l o d i n g M e t r o p o l i s , Garden C i t y , N.Y.: Doubleday Anchor Books, 1958, p. 141. 9 . Abrams, Op. C i t . , p. 5. ^"°R. L. Nelson and F. T. Aschman, Real E s t a t e and C i t y P l a n n i n g , Englewood C l i f f s , N.J.: P r e n t i c e - H a l l , 1957, p. 39. i : L  I b i d . , p. 449.  12 . . T h i s s e c t i o n has been f r e e l y adapted from Nelson and Aschman, 0p_. C i t . , pp. 453-459.  M. C. McFarland, The C h a l l e n g e of Urban Renewal, Urban Land I n s t i t u t e T e c h n i c a l B u l l e t i n No. 34, Washington: Urban Land I n s t i t u t e , 1958, pp. 15-17. 14 I n s t i t u t e f o r Community Development and S e r v i c e , Urban Renewal i n P r i v a t e E n t e r p r i s e , I n s t i t u t e f o r Community Development and S e r v i c e , General B u l l e t i n No. 9, E a s t L a n s i n g Mich.: Michigan S t a t e U n i v e r s i t y , 1962, p. 3. S e e K. J . Cross and R. W. C o l l i e r , The Urban Renewal Process i n Canada: An A n a l y s i s o f C u r r e n t P r a c t i c e , Vancouver: U n i v e r s i t y of B r i t i s h Columbia, no date, pp. 2-10, f o r a summary of urban renewal l e g i s l a t i o n f o r the U n i t e d S t a t e s , U n i t e d Kingdom, and Canada. 1 5  ^ " T h e term 'urban renewal' was f i r s t used o f f i c i a l l y i n the U n i t e d S t a t e s Housing A c t of 1954," Source: Cross and C o l l i e r , Op. C i t . , p. 2. 1 7  1 8  1 9  I b i d . , pp. 11-12. J.  M. M i l l e r , Ed., Op. C i t . , p. 8.  Ibid.  20 , . . Ibid. T  •  . *•  21 R. A. L i s t o n , Downtown: Our C h a l l e n g i n g Problems, New York: D e l a c o r t e P r e s s , 1969, p. 79. 2 2  Urban  I b i d . , p. 80.  23 In North America, urban renewal has been almost e n t i r e l y devoted to redevelopment p r o j e c t s w i t h v e r y few r e h a b i l i t a t i o n schemes and even fewer c o n s e r v a t i o n measures. 24 M i l l e r , ed., Op. C i t . , p. 4. 25 "Recent y e a r s have seen a broadening scope of the urban renewal p r o c e s s i n Canada. From a concern f o r r e s i d e n t i a l b l i g h t o n l y , the scope has been expanded s i n c e 1964, to i n c l u d e n o n - r e s i d e n t i a l areas and t o t a l r e h a b i l i t a t i o n and c o n v e r v a t i o n programmes." Source: Cross and C o l l i e r , Op. C i t . , p. 33.  See B. G. Zimmer, R e b u i l d i n g C i t i e s — T h e E f f e c t s of Displacement and R e l o c a t i o n on Small B u s i n e s s , Chicago: Quadrangle Books, 1964, and B. J . L. B e r r y , S. J . Parsons, and R. H. P i a t t , The Impact of Urban Renewal on Small B u s i ness , Chicago: Centre f o r Urban S t u d i e s , The U n i v e r s i t y o f Chicago, 1968. Newsweek, "The V e r t i c a l G h e t t o , " V o l . 76, (September 7, 1970), pp. 76-77. 27  28 in  The f i r s t major h i s t o r i c p r e s e r v a t i o n program the U n i t e d S t a t e s was undertaken a t Mount Vernon i n 1858. 29  Urban Renewal A d m i n i s t r a t i o n , H i s t o r i c P r e s e r v a t i o n Through Urban Renewal, Washington: Urban Renewal Agency, Housing and Home Finance Agency, 1963, p. 2. Op. C i t . ,  "^The N a t i o n a l T r u s t f o r H i s t o r i c p. 6.  Preservation,  31 I b i d . , p. 17. 32 . R. W. Miner, C o n s e r v a t i o n of H i s t o r i c and C u l t u r a l Resources, Chicago: American S o c i e t y o f P l a n n i n g O f f i c i a l s , 1969, p. 8. 33 C o l l e c t e d by the N a t i o n a l T r u s t and c i t e d m Providence C i t y P l a n Commission, C o l l e g e H i l l : A Demons t r a t i o n Study of H i s t o r i c Area Renewal, Second e d i t i o n . Providence, R.I.: Providence C i t y P l a n Commission, Providence P r e s e r v a t i o n S o c i e t y , and Department of Housing and Urban Development, 1967, p. 4. 34  the  L . Thomas, "Restored Commercial B u i l d i n g s : How C i t y Saves Face," San F r a n c i s c o , March, 1968, pp. 25-26. 35 The E d i t o r s o f Fortune Magazine, Op. C i t . ,  p. 146.  36 Thomas, Op. C i t . ,  p. 26.  37 For example, i n San F r a n c i s c o , the t o t a l c o s t to develop 120,000 square f o o t G h i r a r d e l l i Square was $10 m i l l i o n w h i l e $7.5 m i l l i o n d o l l a r s was i n v e s t e d i n c o n v e r t i n g an o l d D e l Monte cannery i n t o a c o n t i n e n t a l - s t y l e shopping compound.  38 Bureau of Governmental Research, P l a n and Program f o r the P r e s e r v a t i o n of the Vieux C a r r e , New O r l e a n s : Bureau of Governmental Research, 1968, pp. 127-133. 39 Thomas, Op. Cit.., p. 26. 4 0  I b i d . , p. 28.  ^ ^ I b i d . , p. 29. 42 , . . Ibid. 43 As c i t e d i n R. L. Montague and-T. P. Wrenn, P l a n n i n g f o r P r e s e r v a t i o n , C h i c a g o : American S o c i e t y o f P l a n n i n g O f f i c i a l s , 1964, p. 14. T  Ibid. ^ I b i d . , pp. 11-12. 46 For a d d i t i o n a l i n f o r m a t i o n on the Vieux C a r r e see: Bureau o f Governmental Research, P l a n and Program f o r the P r e s e r v a t i o n of the Vieux C a r r e , New O r l e a n s : Bureau of Governmental Research, 1968; The A r c h i t e c t u r a l Forum, " W i l l Success S p o i l the Vieux C a r r e ? " June 1969, pp. 79-83; G. Marcou and J . O'Leary, " R e l a t i n g the F u t u r e t o the P a s t . . . H i s t o r i c P r e s e r v a t i o n i n New O r l e a n ' s French Q u a r t e r , " N a t i o n ' s C i t i e s , August, 1969. 47 As c i t e d i n Montague and Wrenn, Op. C i t . , p. 16. Ibid. 49  ' North C a r o l i n a Department of C o n s e r v a t i o n and Development, H i s t o r i c D i s t r i c t Development P l a n : Wilmington, C a r o l i n a , Wilmington, N.G.: North C a r o l i n a Department of C o n s e r v a t i o n and Development-/ D i v i s i o n of Community P l a n n i n g , 1968, p. 21. ^ B u r e a u of Government Research, Op. C i t . ^ F o r d e s c r i p t i o n s o f San F r a n c i s c o ' s commercial r e h a b i l i t a t i o n p r o j e c t s see: The Economist, "San F r a n c i s c o ' s New Gold C o a s t , " A p r i l 5, 1969, pp. 39-40 and Thomas, Op. Cit.  Thomas, Op. C i t . , p. 25. The Economist, Op. C i t . , p. 39. 54 Thomas, Op. C i t . , p. 44. 55 A d d i t i o n a l data on the r e h a b i l i t a t i o n o f B a s t i o n Square can be found i n : S. E. Wood, Commercial R e h a b i l i t a t i o n W i t h i n the C e n t r a l Business D i s t r i c t : Policies for Future Use. Vancouver: U n i v e r s i t y o f B r i t i s h Columbia, 1967 J . Hume, " O f f - b e a t , H i g h - c l a s s ' V i l l a g e F a i r Opening," The V i c t o r i a Times, May 19, 1967, p. 8; Urban Renewal and P u b l i c Housing i n Canada, " V i c t o r i a : A P e d e s t r i a n M a l l f o r B a s t i o n Square," V o l . 1, No. 4, pp. 5-6; Urban Renewal and P u b l i c Housing i n Canada, " B a s t i o n Square," V o l . 3, No. 1, p. 9; Vancouver C i t y P l a n n i n g Department, Unpublished Notes on Meeting with V i c t o r i a C i t y P l a n n i n g Department on A p r i l 18, 1969. 1  Urban Renewal and P u b l i c Housing i n Canada, " B a s t i o n Square," V o l . 3, No. 1, p. 9.  CHAPTER I I I  INTRODUCTION TO GASTOWN  •  The c i t y o f Vancouver i s o n l y now b e g i n n i n g to mature. I t s t i l l hovers on the f a s c i n a t i n g t h r e s h o l d between n a i v e and r e c k l e s s youth and the wonderful u n f o l d i n g o f i t s f u l l a d u l t potential. The c i t y i s a t t h a t stage.where i t s t i l l can choose t o r e c o g n i z e the value and beauty o f i t s cultural inheritance. I t has a very s p e c i a l and a t t r a c t i v e human h e r i t a g e , and though i t has impetuously squandered some o f i t , and through ignorance and b l i n d n e s s has o f t e n p i t i f u l l y negl e c t e d t o take proper stock and care o f i t s p o s s e s s i o n s , a s u b s t a n t i a l sum o f them remain i n t a c t and o n l y need t o be r e v e a l e d and c u l t i vated t o help Vancouver t o r e f i n e and strengthen t h a t c h a r a c t e r and p e r s o n a l i t y which w i l l make i t g r e a t among g r e a t c i t i e s o f the world.1 The h i s t o r i c c e n t r e o f Vancouver has t h e p o t e n t i a l to sustain intense concentrations of human a c t i v i t y on a wide v a r i e t y and s c a l e . . . . The b i r t h p l a c e o f the c i t y , Gastown (or O l d G r a n v i l l e Townsite, as i t i s p r o p e r l y known)... i s as v i t a l today t o the form and the c h a r a c t e r o f the c i t y as i t has been i n the p a s t . 2  The  purpose o f Chapter I I I i s t o s e t the ensuing  economic a n a l y s i s i n c o n t e x t -and  t o make i t more meaningful  by p r o v i d i n g r e l e v a n t background m a t e r i a l about the e v o l u t i o n and  present  state of a f f a i r s  i n Gastown.  The rough g e n e r a l i -  z a t i o n s developed about c i t i e s i n the p r e v i o u s be u t i l i z e d  chapter w i l l  as an i n f o r m a l a n a l y t i c a l framework w i t h i n which  t o i d e n t i f y the n a t u r a l f o r c e s t h a t have i n f l u e n c e d the  development of the a r e a .  However, because the major  concern  o f t h i s s e c t i o n of the t h e s i s i s to p r o v i d e a d e s c r i p t i o n of the changes t h a t have l e d to the p r e s e n t circumstances  in  the d i s t r i c t , the m a t e r i a l from Chapter  utili-  I I w i l l not be  zed as a r e s t r i c t i v e s k e l e t o n upon which t o b u i l d the d i s c u s s i o n but, r a t h e r , w i l l be r e f e r r e d to where, it. i s deemed to be a p p l i c a b l e . A B r i e f H i s t o r y of Gastown In 1792 white man  to the e a r l y 1900's)  C a p t a i n George Vancouver became the  first  to s a i l i n t o the B u r r a r d I n l e t and s i g h t the f u t u r e  l o c a t i o n of the g r e a t c i t y was  (1867  t h a t was  to bear h i s name y,et, i t  not u n t i l s e v e n t y - f i v e years l a t e r t h a t s e t t l e m e n t began  i n the a r e a .  P r i o r to 1867,  a number of p i o n e e r f o o t h o l d s 3  had been e s t a b l i s h e d on and around the B u r r a r d I n l e t  and i n  June of t h a t y e a r , a s a w m i l l , l o c a t e d on the south shore  of  the i n l e t , c u t i t s f i r s t lumber, and s e t the stage f o r the e v e n t u a l development of Vancouver, B r i t i s h Columbia.  This  f a c t o r y , known as Stamp's M i l l , q u i c k l y began to a t t r a c t merchants, businessmen, and o t h e r s e t t l e r s t o serve the needs of the work f o r c e of the m i l l .  These s e t t l e r s became the  f i r s t i n h a b i t a n t s of the s m a l l v i l l a g e of Gastown, which e v e n t u a l l y grew i n t o the urban c e n t r e of Vancouver. The f i r s t s e t t l e r was C a p t a i n Jack Deighton, who a r r i v e d i n [September] 1867 to open a s a l o o n t o serve the workers a t Stamp's new sawmill,- l a t e r Hastings M i l l s , h a l f a m i l e s up the I n l e t . Jack  - was an adventurer i n the good o l d s t y l e and because he never stopped t a l k i n g people c a l l e d him "Gassy Jack." As he c o n t i n u a l l y boasted t h a t the l i t t l e p l a c e would become a g r e a t m e t r o p o l i s they teased him by c a l l i n g i t Gastown.... In h i s canoe he brought h i s I n d i a n w i f e , a b a r r e l of whisky, a s s o r t e d f u r n i t u r e and. chickens. Jack had p l e n t y of customers from the sawmills of B u r r a r d I n l e t where l i q u o r was not allowed. Some of them c o u l d h a r d l y w a i t - they helped him so the s a l o o n was open f o r b u s i n e s s the day a f t e r he a r r i v e d . Jack p u l l e d h i m s e l f to the r o o f of the b u i l d i n g , u n f u r l e d the Union Jack and t o l d h i s l i s t e n e r s t h a t the f l a g r e p r e s e n t e d a l l t h a t was g o o d — t h e b l o o d and guts of E n g l a n d ! 4  With no i n d u s t r y other than the m i l l and wholesale progressed  little  t r a d e or other commercial development, Gastown s l o w l y but s t e a d i l y d u r i n g the f i r s t  years of i t s l i f e .  In 1871,  fifteen  the b i r t h p l a c e of Vancouver  c o n t a i n e d o n l y t h r e e s a l o o n s , two  s t o r e s , and one  hotel,  and o c c u p i e d an area merely two  b l o c k s l o n g by one  h a l f b l o c k s deep.  the economic development of  Yet by 1882,  and  one-  the s e t t l e m e n t had a c c e l e r a t e d to the p o i n t t h a t : the o b v i o u s l y incomplete V i c t o r i a D i r e c t o r y a-nd the p r o v i n c i a l v o t e r s ' l i s t t h a t year p a i n t e d the o u t l i n e of a v a s t l y e n l a r g e d Gastown, so much e n l a r g e d t h a t i t and Hastings were lumped t o g e t h e r as i f they no l o n g e r were separate communities. I t l i s t e d s i x g e n e r a l merchants ( a l l i n Gastown), seven h o t e l s (two i n H a s t i n g s ) , f o u r b u t c h e r s , e i g h t fishermen, two shoemakers, one harnessmaker, one s a i l m a k e r , one wine merchant (James A. "Pete Donnelly" Robertson), t h r e e c a r p e n t e r s , two accountants, one b l a c k smith, one customs c o l l e c t o r , f o u r teamsters, one t e l e g r a p h o p e r a t o r , t h r e e lumbermen, one p h y s i c i a n (Dr. George M a s t e r s . . . ) , t h r e e s t e v e dores, one c o n s t a b l e , two longshoremen, one  postmaster, one salmon canner, 20 employees of Hastings M i l l , 44 l o g g e r s , 11 millmen (two Hawaiian), three l o g g i n g camp p r o p r i e t o r s ( a l l on P o i n t Grey), two churches, two m i n i s t e r s , one s c h o o l teacher, two s o c i e t i e s (Hastings L i t e r a r y I n s t i t u t e and the A n c i e n t Order of United Workmen), three i n d u s t r i e s (Hastings M i l l and the B u r r a r d I n l e t F i s h i n g and O i l Companies...), two farmers, and two j u s t i c e s of the peace.5 In 1883, ment, i t s name was  i n keeping with the growth of the  settle-  changed from the c o l o u r f u l "Gastown" to  " G r a n v i l l e , " but t h i s d i d not change the c h a r a c t e r of town.  " G r a n v i l l e was  l i v i n g town."^  a hard-boiled, hard-drinking,  the  hard-  However, i n the f o l l o w i n g year, an event  took p l a c e which was  to e v e n t u a l l y change the p l a c e of Gran-  v i l l e from a f r o n t i e r sawmill c i t y on the West Coast.  town to t h a t of Canada's major  Agreement was  reached between  W i l l i a m Smithe, premier of B r i t i s h Columbia, and W i l l i a m  Van  Home of the Canadian P a c i f i c Railway, to deed 6,000 acres of land i n the G r a n v i l l e Townsite to the C.P.R. and t h i s the l o c a t i o n of the western terminus of the During  the l a t t e r h a l f of 1885  l a t o r s , developers, i n order  and  to make  railroad.  e a r l y i n 1886,  specu-  and merchants began to f l o c k to G r a n v i l l e  to take advantage of the boom t h a t was  accompany the coming of the  expected to  railway.  G r a n v i l l e was growing f a s t . . . . T h e r e were b a r e l y 100 h a b i t a b l e b u i l d i n g s i n the town a t the end of February, 1886, and at l e a s t 600 by the middle of May. Besides the s p e c u l a t o r s , the merchants, the women f o l k and the c h i l d r e n , there was a very c o n s i d e r a b l e l a b o r f o r c e to e r e c t 500 b u i l d i n g s i n a mere 75 days. The boom was on.1  On A p r i l  6, 1886, the Townsite o f f i c i a l l y  changed  i t s name to Vancouver a f t e r 432 r e s i d e n t s o f G r a n v i l l e t i o n e d the p r o v i n c i a l government  for incorporation.  peti-  The  f i r s t e l e c t i o n was h e l d i n May and the c i t y c o n t i n u e d to f l o u r i s h as i t f e d on " r a i l w a y  fever."  On Sunday, June 13th, 1886, d i s a s t e r s t r u c k the two month o l d c i t y . period, a f i r e  During a t e r r i f y i n g twenty minute  c o m p l e t e l y d e s t r o y e d Vancouver.  One Thousand  b u i l d i n g s burned t o the ground, a t l e a s t twenty persons p e r i s h e d i n the b l a z e , and t h r e e thousand were l e f t Yet,  homeless.  such was the nature o f the p i o n e e r r e s i d e n t s t h a t by t h a t  v e r y evening, r e b u i l d i n g had a l r e a d y s t a r t e d .  On C a r r a l l ,  Water, Oppenheimer, and Cordova S t r e e t s , the r e s i d e n t s up temporary s t r u c t u r e s and went back i n t o b u s i n e s s : c o n t i n u e d to t h r i v e , almost u n i n t e r r u p t e d . y e a r s a new, permanent  threw the c i t y  "Within t h r e e  c i t y had grown o u t of the ashes, a  c i t y e x p r e s s i n g the v i s i o n and s p i r i t  o f Vancouver's  hopes  8 of  becoming  a great metropolis."  Many o f the b u i l d i n g s  which were e r e c t e d a t t h i s time a r e s t i l l Old  s t a n d i n g i n the  G r a n v i l l e Townsite. For  the twenty year p e r i o d f o l l o w i n g the f i r e , the  W a t e r - C a r r a l l - C o r d o v a area remained the commercial and c u l t u r a l hear.t—of Vancouver. i n c l u d i n g the f o l l o w i n g :  The c i t y passed many landmarks,  1887  - f i r s t passenger t r a i n a r r i v e s i n Vancouver, - a r r i v a l of f i r s t C.P.R. T r a n s - P a c i f i c steamship, * - f i r s t electric street lights installed,  1888  - b u i l d i n g of the f i r s t G r a n v i l l e S t r e e t . bridge, - waterworks opened, - e l e c t r i c s t r e e t cars begin operation, - opening of the Cambie S t r e e t B r i d g e , - Klondyke Gold Rush.  1889 1890 1892 1897  t o 1898  As the n i n e t e e n t h c e n t u r y drew to a c l o s e , Vancouver began t o f e e l the p r e s s u r e of advancing 1888  t o 1898  then reached  urbanization.  From  the p o p u l a t i o n soared from 8,500 to 20,000, and 45,000 i n 1904.  However, even though these  events were very b e n e f i c i a l to the h e a l t h and development of Vancouver, they marked the b e g i n n i n g of the end f o r the Old G r a n v i l l e Townsite  as'the c e n t r e of the  .The D e c l i n e of the Old Townsite  city.  ( E a r l y 1900's t o  1967)  During the p e r i o d between the Great F i r e and  the  s t a r t of the t w e n t i e t h c e n t u r y , Vancouver developed  into  b u s i n e s s and d i s t r i b u t i o n c e n t r e f o r a l l of B r i t i s h  Columbia.  However, by the middle  the  of the 1900's, i t became more and  more e v i d e n t t h a t the c i t y had begun to outgrow the Old Townsite it  and s h i f t i t s c e n t r e away from the area i n which  initially The  took r o o t and began to p r o s p e r . f o r c e s u n d e r l y i n g the s h i f t of the  central  b u s i n e s s d i s t r i c t to the south and west were s i m i l a r t o those experienced by most North American c i t i e s d u r i n g  similar  stages i n t h e i r development. and  generally increased  b u i l d i n g s no  longer  As b u s i n e s s e n t e r p r i s e s matured  i n s i z e , the o r i g i n a l b r i c k and  adequately served  t h e i r o r i g i n a l purpose.  Many f i r m s r e q u i r e d l a r g e r premises and,  s i n c e the G r a n v i l l e  Townsite b u i l d i n g s were g e n e r a l l y l i m i t e d to three in. h e i g h t  because they, were c o n s t r u c t e d  pread use  of e l e v a t o r s , they became o b s o l e t e  b u i l d i n g s were s t r u c k by f u n c t i o n a l and cence) . new  before  storeys  the wides-  (that i s , the  technical  Other f i r m s d e s i r e d to l o c a t e i n new  areas i n order  obsoles-  buildings in  to g a i n p r e s t i g e and were, t h e r e f o r e ,  anxious to r i d themselves of t h e i r o l d premises.  Still .  other b u s i n e s s e s moved out of the Old Townsite i n order escape from an area and  rowdy h o t e l s .  was  F i n a l l y , the narrow, p o o r l y  to q u i t the area  becoming p r e v a l e n t  t e r i s t i c of the  designed  depending upon heavy"consumer  so as to a v o i d the c o n g e s t i o n  there.  The  that  t h r e e problems charac-  "urban c r i s i s " were a l l p r e s e n t  Townsite—obsolescence, congestion, f l i g h t to new  to  i n which t h e i r neighbours were saloons  s t r e e t s f o r c e d merchants who traffic  stone  and  the  i n the  Old  resulatant  areas.  Dakin's map of Vancouver of 1889 showed t h a t Cordova S t r e e t between Cambie and C a r r a l l S t r e e t s was then the main commercial c e n t r e . . . . Development moved westwards, f o l l o w i n g the b u i l d i n g of the H o t e l Vancouver a t Georgia and G r a n v i l l e S t r e e t s i n 1887. The f i r s t commercial b u i l d i n g s appeared on Hastings S t r e e t west of Cambie and on G r a n v i l l e S t r e e t . For some time, however, t h i s development seemed premature; many s t o r e s  remained empty and grass grew on the sidewalks o f G r a n v i l l e S t r e e t w h i l e Cordova S t r e e t flourished.. By the e a r l y 1900's, Hastings S t r e e t began to c h a l l e n g e Cordova, Woodwards' s t o r e l o c a t e d there i n 1904, and other s t o r e s q u i c k l y f o l l o w e d ....However, the business d i s t r i c t continued to move west, and as G r a n v i l l e S t r e e t grew s t r o n g e r , the o l d townsite d e c l i n e d . 9 Other major b u i l d i n g s and  developments, i n a d d i t i o n  to those mentioned p r e v i o u s l y , l o c a t e d o u t s i d e of the G r a n v i l l e Townsite and district.  In 1886  thereby hastened the d e c l i n e of  opened on V i c t o r y Square.  Granville Streets.  End  courthouse  the Imperial  the Hudson's Bay  s t o r e " i n the f o r e s t " on the corner  s i g n i f i c a n t pressure the  i n 188.9, the  A l s o i n 1889,  House opened on Pender S t r e e t and  and  the  the C.P.R. began to develop the West  as a r e s i d e n t i a l d i s t r i c t w h i l e ,  b u i l t i t s new  Old  Opera  Company of Georgia  Each of these developments  exerted  i n drawing the c e n t r e of the c i t y  to  south-west. The  harsh d e p r e s s i o n  t h a t l a s t e d from 1892  a l s o i n f l u e n c e d the d e c l i n e of the Old Townsite. economy grew weaker and weaker, Vancouver's r a p i d growth came to an abrupt h a l t and decline.  to  1897  As' the population  then a c t u a l l y went i n t o a  "Houses a l l over town were boarded up as' the popu-  l a t i o n dropped; a l a r g e p o r t i o n of the working people were, from the U n i t e d  S t a t e s , and  to i t they r e t u r n e d .  The  was  p a r t i c u l a r l y hard on the s m a l l e r merchants along  and  P o w e l l , f o r they went bankrupt where the  exodus Cordova  larger r e t a i l e r s  and w h o l e s a l e r s r e t r e n c h e d and s u r v i v e d . " As the c e n t r e of the c i t y s h i f t e d away from the Old G r a n v i l l e Townsite, secondary  the b u i l d i n g s t h e r e were taken over  by  u s e r s , f r i n g e merchants, and o t h e r f i r m s which  r e q u i r e d premises  i n low r e n t a l a r e a s .  The d i s t r i c t  a l l y became more and more rundown and was  gradu-  e v e n t u a l l y bypassed  and a l l . but f o r g o t t e n by Vancouver's major f i n a n c i a l , m e r i c a l , and p r o f e s s i o n a l l e a d e r s .  •  com-  .  During the 1920's the h o t e l s and rooming houses i n the O l d Townsite who  c a t e r e d to l a r g e numbers of m i g r a t o r y workers.,  l a b o u r e d p a r t - t i m e i n the a g r i c u l t u r e , f i s h i n g , and wood  products  industries.  The Old C i t y became the  headquarters  f o r the unemployed d u r i n g the Great. Depression of the 1930's. "By the  [end of 1929]  t h e r e were 7,000 r e c e i v i n g a s s i s t a n c e  and hundreds more were r i d i n g the rods i n t o town on freight t r a i n " - m a n y  of the unemployed looked f o r food,  s h e l t e r , and companionship i n and p l a c e of the c i t y .  every  around the o r i g i n a l  founding  The a r e a which o n l y t h i r t y or f o r t y  years  p r e v i o u s l y had been the c e n t r e .and h e a r t of the c i t y began to d e t e r i o r a t e i n t o a t y p i c a l  "skid  road."  " A f t e r the d e p r e s s i o n the c h a r a c t e r of most s k i d roads changed.  No  l o n g e r were these areas dynamic, nor were 12  they necessary t o house the m i g r a t o r y labour f o r c e . " poor, the i l l ,  The  the a l c o h o l i c , the d i s a b l e d , and other down-  and-out t r a n s i e n t males became the dominant p o p u l a t i o n of  the a r e a .  "The  town's source, i t s very s o u l , was  turned  oyer to the modern S k i d Road,, a s t a t e of f u t i l i t y , •and bay  run, where r o t t i n g minds and bodies  heroin,  seem to i n f e c t  the aging b u i l d i n g s , where a sense of d e s p e r a t i o n b l o t s  out  the adventurous s p i r i t of the c i t y ' s b e g i n n i n g s , l e a v i n g them t o f e s t e r i n n e g l e c t and  shame. ""^  and drug a d d i c t s moved to the  The  alcoholics  Carrall-Cordova-Powell-Alexande]  area because i t c o n t a i n e d the only " f l o p h o u s e s " and accommodation t h a t they c o u l d a f f o r d and  other  soon the m i s s i o n s ,  cheap l i q u o r o u t l e t s , and o t h e r t y p i c a l s k i d road s e r v i c e s and merchants moved i n t o the area to c a t e r to t h e i r wants. "There was  no p l a c e e l s e to go.  e c o n o m i c a l l y prepared  No o t h e r community  was  to p r o v i d e the b a s i c amenities a t bare  14 subsistence  levels."  By the mid r e c o g n i z e d as "one  1960's, the Old" Town area was  generally  o f the worst s k i d road areas i n Canada"*^  as w e l l as a pocket of poverty and d e s p a i r .  In e x h i b i t e d  a l l of the c h a r a c t e r i s t i c s of a b l i g h t e d . a r e a : decay and obsolescence  deterioration  pervaded the m a j o r i t y of i t s b u i l d i n g s  and e x t e n s i v e s o c i a l and economic c o s t s r e s u l t e d from deterioration.  this  In i t s 19 65 r e p o r t on the "Downtown E a s t  Side"  (that i s , S k i d Road), the C i t y P l a n n i n g Department  noted  that many warehouses are vacant and many shops,-e s p e c i a l l y on Alexander and Powell S t r e e t s , have long been i n o t h e r uses. The demise of the North Shore f e r r i e s , the departure of the  Japanese p o p u l a t i o n d u r i n g the Second World War and the removal of the s t r e e t c a r s , sounded the death k n e l l of shopping on these s t r e e t s , w h i l e Hastings S t r e e t c o n t i n u e s to draw shoppers,-a t t r a c t e d by lower p r i c e s , — f r o m the e n t i r e city. 1 6  Gastown had reached r o c k bottom! The T u r n i n g P o i n t  (1968)  As Gastown approached the one hundredth a n n i v e r s a r y of i t s founding by Jack Deighton, i t appeared as i f the  citi-  zens of Vancouver had c o m p l e t e l y f o r g o t t e n t h e i r h e r i t a g e and turned t h e i r backs on the b i r t h p l a c e o f the c i t y .  I t was  g e n e r a l l y conceded t h a t the O l d Townsite would e i t h e r c o n t i n u e t o degenerate or e l s e would sooner or l a t e r become a c a n d i d a t e f o r " b u l l d o z e r renewal."  In e i t h e r c a s e , i t seemed c e r t a i n  t h a t the c i t y would e v e n t u a l l y l o s e f o r e v e r the few p h y s i c a l reminders of i t s r o a r i n g p i o n e e r p a s t . However, t h e r e were groups and i n d i v i d u a l s who  were  aware o f the problem and r e s o l v e d t o not a l l o w Vancouver's i r r e p l a c e a b l e h i s t o r i c a l b u i l d i n g s t o be d e s t r o y e d by e i t h e r the wrecker's b a l l or n e g l e c t .  These i n d i v i d u a l s had v a r i e d  backgrounds and i n t e r e s t s , y e t worked  i n t h e i r own way, w i t h  l i m i t e d s u c c e s s , to g a i n p u b l i c awareness o f , and f o r , t h e i r cause.  sympathy  These e f f o r t s remained fragmented and  r e l a t i v e l y u n s u c c e s s f u l u n t i l the f a l l  of 1968.  In  September,  the Community A r t s C o u n c i l o f Vancouver sponsored a walk 17 entitled  "Gastown R e v i s i t e d "  i n which i n t e r e s t e d  citizens  were g i v e n a t a l k on the h i s t o r y of the area and a guided tour of the Old C i t y .  Even though the weather was  f i v e hundred turned out f o r the event and completed The e n t h u s i a s t i c response  generated the d e s i r e d  poor, the walk.  publicity  and soon the l o c a t i o n and g e n e r a l meaning of "Gastown" 18 became common knowledge.  Mayor Tom  Campbell  d e s c r i b e the walk as "Vancouver's second  fire"  q u i c k l y became the t h i n g to do f o r those who to v i s i t  was 19  moved t o  and i t very  were "with i t "  the boutiques and r e s t a u r a n t s t h a t began t o s p r i n g  up i n the Old  Townsite.  T h i s marked the b e g i n n i n g of the r e h a b i l i t a t i o n of Gastown.  Because the g o a l of the Community.Arts C o u n c i l i s  t o advance c u l t u r a l awareness i n Vancouver, i t i s l i k e l y t h a t they intended t o promote h i s t o r i c p r e s e r v a t i o n of the O l d Townsite.  However, the businessmen t h a t began to l o c a t e  t h e r e rennovated  the o l d b u i l d i n g s w i t h the i n t e n t i o n o f  g a i n i n g a reasonable r e t u r n on t h e i r investment a c t u a l r e s u l t of the p u b l i c i t y was  the s t a r t of  so t h a t the commercial  r e h a b i l i t a t i o n of the a r e a . I n t e r e s t Groups i n Gastown Gastown appears  to mean many d i f f e r e n t t h i n g s to  d i f f e r e n t groups of people.  Depending upon such f a c t o r s  as  the i n d i v i d u a l ' s l e n g t h of a s s o c i a t i o n with the area, h i s b a s i c reason f o r i n t e r e s t i n the d i s t r i c t , h i s background, and h i s p o l i t i c a l o u t l o o k , he may  socio-economic feel  that  development o f Gastown i s d e s i r a b l e o r u n d e s i r a b l e , progr e s s i n g too q u i c k l y o r t o o s l o w l y , i s being p r o v i d e d  with  •too much a s s i s t a n c e from C i t y H a l l o r n o t enough, o r i s bound t o progress.under any circumstances  o r needs a l l the  a s s i s t a n c e t h a t i t can p o s s i b l y be g i v e n . TABLE I I FORMAL INTEREST GROUPS IN GASTOWN Group Name  Year Formed  Current Chief Executive  I n t e r e s t Groups Concerned S o l e l y w i t h Gastown: The  Townsite Committee  1958  Improvement o f Downtown E a s t S i d e Area Society(I.D.E.A.S.)  1966  Gastown Merchants A s s o c i a t i o n  1970  Gastown Improvement Assoc.  1969  Residents  1969  o f Gastown l  J.W. Parker Chairman DiA. L e s s e r , President B. Ewald President Dr.R.M. Kaplan President, R. Covenay President  C i t y - w i d e I n t e r e s t Groups A c t i v e in.Gastown: C i t y Planning  Department  C i t y S o c i a l P l a n n i n g Dept. Community A r t s C o u n c i l  1947  Vancouver H i s t o r i c a l S o c i e t y  1927  Source:  See t e x t , pp. 63-64.  W.E. Graham Director G. Witman Co-ordinator B. B a i l l i e President G. E l l i o t t President  Probably the major f a c t o r i n determining an  indi-  v i d u a l ' s o u t l o o k about p r e s e r v a t i o n and r e h a b i l i t a t i o n of the Old Town i s the i n t e r e s t group associates.  (or groups) with which he  F o r m a l i z e d committees and a s s o c i a t i o n s have  p r o l i f e r a t e d i n Gastown r e c e n t l y so i t i s important  to under-  stand the outlook and m o t i v a t i o n of these groups i f the v a r i o u s p r e s s r e l e a s e s , p u b l i c statements, are t o be c o r r e c t l y e v a l u a t e d .  and group a c t i o n s  I t should be noted t h a t one  person can belong to more than one group, so long as does not c r e a t e c o n f l i c t of i n t e r e s t problems. important  this  Also, i t i s  to be aware of the f a c t t h a t the groups examined  i n t h i s s e c t i o n of the paper are a l l formal, a s s o c i a t i o n s , y e t the i n d i v i d u a l may groups.  He may  w e l l belong to numerous i n f o r m a l Gastown  c l a s s i f y h i m s e l f as a "developer" or a  " s t r e e t person" or "a member of the h i p c u l t u r e " and  this  w i l l have a s t r o n g b e a r i n g upon the c o n t e x t i n which h i s a c t i v i t i e s should be c o n s i d e r e d . Nine i n t e r e s t groups which have been a c t i v e in,Gastown are i d e n t i f i e d  i n Table I I .  More d e t a i l e d  recently infor-  mation about the f o u r o r g a n i z a t i o n s formed s p e c i f i c a l l y  to  r e p r e s e n t and promote business i n t e r e s t s of s p e c i f i c Gastown groups i s i n c l u d e d below. 1. Townsite C o m m i t t e e — r e p r e s e n t s p r o p e r t y owners i n Gastown. T h i s o r g a n i z a t i o n i s the o l d e s t group s p e c i f i c a l l y c o n s t i t u t e d to r e p r e s e n t Gastown i n t e r e s t s . The Committee sponsored a s u c c e s s f u l paint-up clean-up  campaign d u r i n g the c e n t e n n i a l c e l e b r a t i o n s of 1958.. "A continuous and v i g o r o u s r e s t o r a t i o n programme has been e f f e c t i v e l y developed and e n l a r g e d upon from t h a t time t o the p r e s e n t . The group has a l s o a c t i v e l y promoted the i d e a l s r e p r e s e n t e d i n [the ' R e s t o r a t i o n r e p o r t ' ] , w i t h a s e r i e s o f p i c t o r a l p r e s e n t a t i o n s and guided t o u r s , b e g i n n i n g about 19 60.20 2. I.D.E.A.S.--represents b u s i n e s s f i r m s i n the H a s t i n g s area (mainly those merchants l o c a t e d on Hastings one and two b l o c k s e a s t of Woodwards). A l though the a s s o c i a t i o n ' s s t a t e d g o a l i s "to promote the improvement needed i n the a r e a p r i m a r i l y known as S k i d Road,"21 i t has proven to be an opponent of the presence of the l o n g - s t a n d i n g r e s i d e n t s of the a r e a . The S o c i e t y advocates removal of the "bums" from the Gastown-Hastings area but has not presented any f e a s i b l e plans f o r s o l v i n g the s o c i a l i l l s of the district. 3. Gastown Merchants A s s o c i a t i o n — r e p r e s e n t s the owners of commercial f i r m s i n Gastown ( r e t a i l s t o r e s , restaurants, night clubs). The p r e s i d e n t of the A s s o c i a t i o n has s t a t e d t h a t "the Merchants A s s o c i a t i o n i s s t r i c t l y an a s s o c i a t i o n of the merchants, f o r the merchants....We are more concerned about promoting Gastown as merchants and g e t t i n g people i n to buy our goods than anything e l s e a l t h o u g h , n a t u r a l l y , we are v e r y concerned about how i t i s going t o develop."22 4. Gastown Improvement A s s o c i a t i o n — f o r m e d t o b r i n g t o g e t h e r the v a r i o u s Gastown i n t e r e s t groups on a common meeting ground. I t has been d e s c r i b e d as "an umbrella group... formed as an o v e r a l l a s s o c i a t i o n to c o - o r d i n a t e , a s s i s t , encourage, and mediate between a l l other groups."23 i t i s composed of r e p r e s e n t a t i v e s from the Townsite Committee, the Merchants A s s o c i a t i o n , the Residents of Gastown, the New R e s i d e n t s o f Gastown, the Community A r t s C o u n c i l , and o t h e r s . Because the t o p i c of t h i s t h e s i s d e a l s w i t h comm e r c i a l i n t e r e s t s from an economic p o i n t - o f - v i e w , the main i n t e r e s t groups with which i t w i l l be concerned Gastown Merchants A s s o c i a t i o n and the Townsite  two are the  Committee.  T h i s i s not meant t o i n d i c a t e t h a t the s o c i a l or a e s t h e t i c  or a r c h i t e c t u r a l aspects are not of i n t e r e s t , but r a t h e r t h a t they are o u t s i d e of the realm of the p r e s e n t s u b j e c t 'matter. Plans f o r Rejuvenation of the Old G r a n v i l l e  Townsite  Once the i d e a of Gastown as an area worthy of p r e s e r v a t i o n and r e h a b i l i t a t i o n a c t i v i t i e s became widely accepted, i t was  o n l y n a t u r a l t h a t development plans  and  r e p o r t s would be prepared by the v a r i o u s i n t e r e s t groups a s s o c i a t e d w i t h the d i s t r i c t .  I t i s the purpose of t h i s  s e c t i o n of the paper t o b r i e f l y o u t l i n e the major s t u d i e s and p r o p o s a l s which have been prepared f o r the.Old Townsite  d u r i n g the p a s t t e n y e a r s .  Granville  These plans and r e p o r t s  can be grouped i n t o three d i s t i n c t c a t e g o r i e s : 1.  those prepared between 1960 and 1968 which were not intended t o d e a l w i t h the Old Town as a v a l u a b l e h i s t o r i c area to be preserved and rehab i l i t a t e d , although they do c o n s i d e r i s s u e s r e l e v a n t t o , or plans c o n c e r n i n g , p o r t i o n s of the Old Townsite;  2.  those prepared by the C i t y and Gastown i n t e r e s t groups a f t e r mid-1968 which o u t l i n e p r o p o s a l s f o r , or the i s s u e s i n , p r e s e r v a t i o n and rehabilitation;  3. " those prepared a f t e r mid-1968 which do not d e a l s o l e l y with Gastown, but do c o n s i d e r the area i n r e g a r d to p a r t of a l a r g e r i s s u e . Three major s t u d i e s o f , or p r o p o s a l s f o r , segments of the Old G r a n v i l l e Townsite mid-1968:  were prepared between 1960  and  i.  "An.Economic A n a l y s i s f o r C e n t r a l B u s i n e s s D i s t r i c t Redevelopment, Vancouver, B.C.: Phase I P r e l i m i n a r y Study" prepared by L a r r y Smith and Company (1963),  ii.  "Downtown-East S i d e : A P r e l i m i n a r y Study" prepared by the Vancouver C i t y P l a n n i n g Department (1965),  iii.  P r o j e c t 200, a w a t e r f r o n t r e a l e s t a t e development, proposed by a consortium of f o u r major Canadian f i r m s , ( o r i g i n a l l y announced i n 1966). 24 The  L a r r y Smxth study  attempted to i d e n t i f y  areas i n Vancouver t h a t were i n need of redevelopment  the  and  recommend the best s t a r t i n g p o i n t f o r these a c t i v i t i e s . of the areas i d e n t i f i e d i n the a n a l y s i s 1. and study.  consisted  'flophouses'  and  of the  delapidated  while "older, unsightly f a c i l i t i e s , s a l i n g , warehousing, and 26 the l a r g e s t p o r t i o n s " recognized  i n the  district  t h a t t h i s was  lower end  mostly housing wholecommercial uses  of the o t h e r .  Although the  report  first priority  f o r redevelopment.  and  saved from  Had  s i o n been made to i n c l u d e the Old Townsite i n these it  [occupied]  the S k i d Road area of Vancouver  when the r e p o r t recommended t h a t an area  west be g i v e n  commercial 2  residential units"  s u i t a b l e f o r urban renewal, the Townsite was  demolition  present  " p r i m a r i l y of d e t e r i o r a t e d , l o w - i n t e n s i t y  uses, such as  was  (Redevelopment Areas  3) correspond to Gastown as d e f i n e d T h i s r e p o r t noted t h a t one-half  Two  further the d e c i plans,  i s v i r t u a l l y c e r t a i n t h a t the urban renewal technique  employed would have i n c l u d e d complete redevelopment w i t h r e s u l t t h a t the m a j o r i t y  of o l d b u i l d i n g s would have been  the  demolished  and would not be a v a i l a b l e today f o r the  ment of an h i s t o r i c The  district.  "Downtown-East Side" study was  an examination  develop-  prepared  as  of both the s o c i a l and p h y s i c a l aspects of  S k i d Road, although emphasis was s i d e r a t i o n , and very l i t t l e was physical situation.  The  p l a c e d on the former coni n c l u d e d i n regard to the  r e p o r t reviewed  and d e t a i l e d  the  development of S k i d Road, the s o c i a l problems of the a r e a , and  the c h a r a c t e r i s t i c s of the r e s i d e n t s of the d i s t r i c t  s e t out "a p o l i c y to overcome the human problems of  and  such  27 areas."  No  concrete p r o p o s a l s were made but, r a t h e r , .  d e s i r a b l e s o c i a l goals were o u t l i n e d . Gastown contend  Many r e s i d e n t s of  t h a t t h i s r e p o r t r e s u l t e d i n no changes  whatsoever i n the a r e a . 28 P r o j e c t 200  i s a p r o p o s a l f o r an immense com-  m e r c i a l - r e s i d e n t i a l - o f f i c e complex t o be b u i l t on a twentyf o u r acre s i t e on the B u r r a r d I n l e t w a t e r f r o n t , along  the  n o r t h s i d e of the p e n i n s u l a , above the C.P.R. r a i l w a y t r a c k s . The  p l a n , as o r i g i n a l l y announced i n 1966 by a consortium of 29 four major Canadian f i r m s , was t o c o s t between $200 and $300 m i l l i o n ^ and i t was estimated t h a t e v e n t u a l l y 29,000 persons would be employed w i t h i n the borders of the develop0  31 ment and another  120,000 would pass through  A p o r t i o n of the p r o j e c t was of the c i t y a t Hastings  the area  daily.  to connect w i t h the c e n t r a l  Street.  core  At the time t h a t the news  of the p r o j e c t was r e l e a s e d t o the p u b l i c , the consortium was able t o announce t h a t "the group owns a l l o f the p r o p e r t y 32 • i t r e q u i r e s f o r the p r o j e c t " the w a t e r f r o n t  and t h a t the c o n n e c t i o n  from  to H a s t i n g s S t r e e t was t o be made through 33  "the  100 b l o c k s The  o f Cordova and Water S t r e e t s . "  s i g n i f i c a n c e o f t h i s p r o j e c t to Gastown i s t h a t ,  as o r i g i n a l l y planned, i t would r e q u i r e the c l e a r i n g and r e use o f land  (that i s , i t would be an urban -renewal r e d e v e l o p - ,  ment p r o j e c t ) which would c u t the h i s t o r i c d i s t r i c t i n h a l f when the b u i l d i n g s on Water and Cordova S t r e e t s a r e demolished.' Many supporters  o f the r e h a b i l i t a t i o n of the area  that t h i s w i l l destroy reduce i t s appeal.  34  contend  the c o h e s i o n o f the d i s t r i c t and g r e a t l y They argue t h a t i n s t e a d o f g i v i n g the  35 city  a "real heart"  as the P r e s i d e n t  o f P r o j e c t 200 has  suggested, i t w i l l a c t u a l l y t e a r o u t and d e s t r o y h e a r t o f the c i t y . and  the o r i g i n a l  Others have taken a l e s s h o s t i l e stand  have suggested t h a t the two areas can be harmonious.  statement by the P r e s i d e n t  A  o f the Community A r t s C o u n c i l was  f a i r l y t y p i c a l o f t h i s view, as he.suggested t h a t "Gastown c o u l d be a marvelous complement t o the h i g h - r i s e developments [of P r o j e c t 200]. property  values  And redevelopment w i l l mean  increased 3  f o r the owners and a g r e a t t o u r i s t a t t r a c t i o n . "  During r e c e n t months, numerous p e r s i s t e n t rumours have s u r f a c e d  t h a t the plans  f o r P r o j e c t 200 have been r e v i s e d  37 so as t o not harm Gastown.  These r e p o r t s contend t h a t the .  p r o j e c t i s t o be moved to the west, along and  t h a t the m i d - s e c t i o n  the  waterfront,  of Gastown w i l l be allowed  •as an i n t e g r a l p a r t of the h i s t o r i c d i s t r i c t . the P r o j e c t 200  t o develop  Providing  development does not harm Gastown, the  i n t e r e s t groups tend to favour  the p r o j e c t .  that  area  For example,  the  R e s t o r a t i o n Report suggested t h a t the Old Townsite "must develop i n t e g r a t e d ways to become compatible with  i t s large  38 new  neighbour, P r o j e c t 200."  j e c t 200  and  i t s e f f e c t on Gastown i s not p u b l i c  because the developers they apply  proposals  s o l e l y with i.  need not c o n f i r m  and  until  permits.  s t u d i e s which d e a l  Gastown are as  information  t h e i r plans  f o r d e m o l i t i o n or c o n s t r u c t i o n The  and  However, the f u t u r e of Pro-  specifically  follows:  "Restoration. Report: A Case f o r Renewed L i f e i n the Old C i t y , " prepared by' Birmingham and Wood, et a l . (1969),  ii.  "Recommendation: Proposed P r o j e c t — E a s t Gastown," prepared by the Vancouver C i t y . P l a n n i n g Department (1970),  iii.  "Recommendation: General R e p o r t — G a s t o w n , Chinatown," prepared by the Vancouver C i t y P l a n n i n g Department (1970). 39 The  R e s t o r a t i o n Report  was  a study conducted  j o i n t l y by t h r e e a r c h i t e c t u r a l - p l a n n i n g f i r m s commissioned by the C i t y C o u n c i l , the Townsite Committee, and of Downtown East Side Area S o c i e t y , and ment Group.  I t s aim was  Improvement  the Chinatown Improve-  g e n e r a l l y t o examine the problems  and  i s s u e s and suggest development concepts f o r "the e n t i r e o l d s e c t i o n of the c i t y .  Roughly an area  bordered by Cambie  S t r e e t t o the west, Main S t r e e t to the east and from the waterfront  t o the F a l s e Creek boundary.  b u l k o f 'Chinatown --the h i s t o r i c 1  T h i s i n c l u d e d the  'Townsite' and the s t i l l 40  vigorous exception and  shopping borough o f H a s t i n g s S t r e e t . "  With the  o f t h e Residents o f Gastown, the conceptual  goals  recommendations p r e s e n t e d i n t h e . r e p o r t have been u n a n i -  mously adopted by a l l i n t e r e s t groups l o c a t e d i n Gastown as w e l l as by C i t y C o u n c i l . reviewing  The C i t y P l a n n i n g  Department, i n  the c o n t e n t s o f the r e p o r t f o r C o u n c i l , noted t h a t  "although the p r o p o s a l s  add a new dimension to the word  ' b e a u t i f i c a t i o n ' and many o f them w i l l r e q u i r e and  p o l i c y changes, there  legislative  a r e s i g n i f i c a n t precedents e l s e -  where t o suggest t h a t the a d d i t i o n a l , work on these matters i s n o t o n l y worthwhile but e s s e n t i a l t o the s u c c e s s f u l 41 mentation o f such a program f o r Vancouver." i l l u s t r a t e s the f a c t t h a t the P l a n n i n g  This  imple-  statement  Department i s w e l l  aware of the a v a i l a b i l i t y of examples o f h i s t o r i c and comm e r c i a l r e h a b i l i t a t i o n i n other North American The  cities.  s e c t i o n of the r e p o r t which d e a l t  specifically  w i t h the O l d G r a n v i l l e Townsite b r i e f l y examined some of the problems t h a t wilJ _JJ^e_ly2^ :  t i o n o f the area.  T^TO_of  during  the,major d i f f i c u l t i e s  by., the p r o j e c t s t a f f s .were the s o c i a l problems  rehabilitaforeseen  associated  w i t h displacement o f the p r e s e n t t r a n s i e n t p o p u l a t i o n  and  the need f o r the r e h a b i l i t a t i o n work t o be compatible w i t h , 43  and s u p p o r t i v e o f , P r o j e c t 200. 44 b a s i s o f the appeal o f the area  The study examined the and suggested  certain  steps which c o u l d be taken, t o enhance the a t t r a c t i o n o f the Old C i t y .  These i n c l u d e d s u g g e s t i o n s f o r the c r e a t i o n o f 45 promenades and walkways, the development o f p u b l i c spaces a t Maple Tree Square, Trounce A l l e y , and the C.P.R. R i g h t 46 ' of-way, and t h e p r o v i s i o n o f f a c i l i t i e s and r e g u l a t i o n s t h a t would complement the nature o f the c i t y ' s  birthplace.  Among the improvements suggested f o r t h i s l a t t e r category were p r o p o s a l s " t h a t areas be repaved i n b r i c k or c o b b l e stone , t h a t the l i g h t i n g be r e p l a c e d o r augmented by f i x t u r e s which a r e sympathetic w i t h the c h a r a c t e r o f t h e a r e a , and t h a t complete . be  c o n t r o l over a l l signs, and facade m o d i f i c a t i o n s  . , ,,47 imposed." The c i t y was v e r y slow t o a c t upon the R e s t o r a t i o n  Report's recommendation o f t h e u n d e r t a k i n g o f a Stage I I 48 study o f Gastown.  F i n a l l y , more than one year a f t e r the  r e s t o r a t i o n study was i s s u e d , i t r e s u l t e d i n t h e p r e s e n t a t i o n to C i t y C o u n c i l by the Board o f A d m i n i s t r a t i o n o f a recommendation f o r such a second-stage entitled  study.  In t h i s p r o p o s a l , 49  "General R e p o r t — G a s t o w n , Chinatown"  (June 12,  1970), the P l a n n i n g Department suggested both s h o r t - t e r m and long range s t e p s t o be taken t o p r e s e r v e and r e h a b i l i t a t e the O l d G r a n v i l l e  Townsite.  Although the c i t y does not p r e s e n t l y possess the power t o prevent  d e m o l i t i o n o f b u i l d i n g s and, t h e r e f o r e ,  •could not ensure t h a t overzealous  developers  d i d not d e s t r o y  s i g n i f i c a n t s t r u c t u r e s i n the O l d Townsite, the P l a n n i n g 50 Department proposed t h a t the Area be rezoned t o CD-I  (that  i s , Comprehensive Development D i s t r i c t ) i n order t o "permit the continuance  o f e x i s t i n g uses as w e l l as p r o v i d e  f o r new  development e s s e n t i a l t o the e n v i s i o n e d c h a r a c t e r o f the 51 area/  1  T h i s a c t i o n was intended  to p r o v i d e the c i t y  with  some c o n t r o l over the development of Gastown w h i l e a l o n g term, o v e r a l l study was being conducted.  This  extensive  study was t o e s t a b l i s h comprehensive p o l i c i e s and a  develop-  ment p l a n f o r Gastown w h i l e i n v e s t i g a t i n g " p h y s i c a l , s o c i a l , 52 and  economic problems i n more d e t a i l "  Report.  than the R e s t o r a t i o n  Among the i s s u e s t o be c o n s i d e r e d  i n the study a r e  p o s s i b l e measures t h a t might be u t i l i z e d t o p r o t e c t and promote the development o f Gastown; the p o s s i b i l i t y o f p a r t i c i p a t i o n by the P r o v i n c i a l government and the community a t l a r g e ; the r e l a t i o n s h i p o f Gastown _to f u t u r e freeway and r a p i d t r a n s i t development; t r a f f i c and p a r k i n g problems i n the O l d Area o f the C i t y ; the p o s s i b l e e f f e c t of renewal o f Gastown upon p r o p e r t y owners i n , and adjacent  t o , the area; the development  of p l a n s t o d e a l with the s o c i a l problems t h a t w i l l be c r e a t e d by the d i s r u p t i o n and d i s l o c a t i o n o f the p r e s e n t p o p u l a t i o n of the O l d Townsite.  The r e p o r t s p e c i f i c a l l y i d e n t i f i e d the  major i s s u e s a s — t r a n s p o r t a t i o n and p a r k i n g , e f f e c t s on  p r o p e r t y owners, and s o c i a l matters. The expanded study w i l l r e q u i r e twelve months to 54 complete and w i l l c o s t a t o t a l of $30,380.  55 '  The r e s e a r c h  i s t o be guided by the f o l l o w i n g g o a l s , p r i n c i p l e s ,  and  objectives: The proposed study would develop i n d e t a i l and recommend on o v e r - a l l p o l i c y and a method of implementation to ensure, the maintenance of the area's unique q u a l i t i e s . The study w i l l : i. catalogue s t r u c t u r e s i n terms of a r c h i t e c t u r a l h i s t o r i c a l value; ii. recommend a p l a n and d e t a i l e d p o l i c i e s to guide development of the area i n c l u d i n g methods of implementation, l e g i s l a t i o n , and procedures required; i i i . i n v e s t i g a t e p a r t i c i p a t i o n by government and community b o d i e s ; iv. recommend p r e c i s e boundaries f o r a ' h i s t o r i c precinct'; v. d r a f t d e t a i l e d zoning r e g u l a t i o n s and bound a r i e s . 56 Although o r i g i n a l l y  intended by the C i t y P l a n n i n g  Department to be a p a r t of the Stage I I s t u d i e s , the  "Proposed  57 P r o j e c t - - E a s t Gastown,"  or the Gastown b e a u t i f x c a t i o n  p r o j e c t as i t i s more commonly known, was C o u n c i l and passed as a separate p r o j e c t .  c o n s i d e r e d by The d e s i g n study 58  evolved from the recommendations of the " R e s t o r a t i o n Report" l e a d i"nigs i to the implementation l i c and and p r i vprocedures a t e beautiand nte nded to produce d e tof a i lae dp u bdesigns f i c a t i o n p r o j e c t i n the area d e s i g n a t e d , which would enhance the s p e c i 1 a i r q u a i i t i e s of t h a t a r e a . " ^ -  The study area i n c l u d e s  the t h r e e - b l o c k s t r e t c h of C a r r a l l S t r e e t from Maple Tree  Square t o Pioneer P l a c e p l u s . t h e u n i t b l o c k s of Water, and Alexander S t r e e t s . i. ii. iii. iv.  Powell,  The p r o j e c t w i l l i n c l u d e :  the r e d e s i g n i n g of a l l sidewalks, l i g h t standards and other s t r e e t f u r n i t u r e w i t h i n the area; t h e : r e d e s i g n i n g of Pioneer P l a c e , i f necessary; the d e s i g n i n g o f f i r s t - p h a s e p h y s i c a l development of "Maple Tree Square"; the e s t a b l i s h i n g of g e n e r a l g u i d e l i n e s f o r e x t e r i o r r e n o v a t i o n s and s i g n s on p r i v a t e p r o p e r t i e s . 6 0 The p r e l i m i n a r y estimates  s t a t e t h a t the t o t a l c o s t  of the program w i l l be $273,000, of which the p r o p e r t y owners 61 w i l l pay $162,000 by s p e c i a l assessment.  ^_  Two p r e l i m i n a r y r e p o r t s r e c e n t l y completed by the C i t y P l a n n i n g Department, as stages i n the p r e p a r a t i o n of a c i t y p l a n f o r Vancouver c o n s i d e r many i s s u e s r e l e v a n t to the development of a r e h a b i l i t a t e d Gastown.  These two r e p o r t s  are: i. ii.  "Downtown Vancouver P l a n , P a r t I - The Issues" (1968); "Downtown Vancouver Development Concepts" (1970). It i s particularly  i n t e r e s t i n g t o note the i n c r e a s e d  awareness of the p o t e n t i a l of Gastown which i s ' e v i d e n t i n the second stage of the p r e p a r a t i o n o f the C i t y P l a n , as compared to.the f i r s t , which was prepared earlier.  one and one-half  years  In " P a r t I - The Issues," p u b l i s h e d i n December 1968  no mention i s made of the p o t e n t i a l o f the O l d Townsite even i n _ t h e s e c t i o n which d e a l s with  "some o f the p o s s i b i l i t i e s  f o r c i v i c a c t i o n t o improve the v i s u a l c h a r a c t e r of the C i t y . "  However, by June 1970, when "Downtown Vancouver Development Concepts"  (that i s , Phase I I of the C i t y Plan) was i s s u e d ,  the p r o t e c t i o n and r e h a b i l i t a t i o n of the O l d G r a n v i l l e Towns i t e had become a s i g n i f i c a n t matter of concern. statement of o b j e c t i v e s and goals was b u i l t up from o p i n i o n s  In the  f o r the c i t y p l a n which  solicited  from the c i t i z e n s o f  the C i t y , the need t o p r o t e c t h i s t o r i c p l a c e s was c l e a r l y recognized  and ennunciated. The community, r e s p e c t i n g those few s i g n i f i c a n t p l a c e s and s t r u c t u r e s remaining from i t s e a r l y h i s t o r y , should adopt measure to p r e s e r v e and r e v i v e them, so t h a t they may again be known and v i t a l t o the c i t y and a d e l i g h t t o i t s visitors. A l s o , r e c o g n i z i n g t h a t aspects o f today's Downtown w i l l have h i s t o r i c value to f u t u r e g e n e r a t i o n s , then there ought t o be conc e r n and p o l i c i e s f o r the p r o t e c t i o n of s e l e c t e d areas or b u i l d i n g s t h a t may c o n s t i t u t e t h i s legacy.63 In each o f the f i v e a l t e r n a t i v e p r o p o s a l s  Downtown p l a n p r e s e n t e d by t h e P l a n n i n g 1970  for a  Department i n the  r e p o r t , the approach t o be taken i n Gastown i s covered  in significant detail. plan includes  •  F o r example, the second a l t e r n a t i v e  the f o l l o w i n g statements:  H i s t o r i c p r e s e r v a t i o n , environmental improvement and the f u r t h e r development o f Vancouver's t o u r i s t . . p o t e n t i a l would be prime o b j e c t i v e s i n the Gastown Chinatown a r e a . In Concept 2, the t o t a l area f o r these p r o j e c t s would be q u i t e modest a l l o w i n g approximately 10 acres (net) f o r Gastown and 15 acres (net) f o r Chinatown. Development would be along an "L"-shaped . a x i s formed by C a r r a l l and Pender S t r e e t s . The i n t e r s e c t i o n o f C a r r a l l S t r e e t and H a s t i n g s would mark both the e a s t e r n  end of the r e t a i l core and the entrance l i n k to the h i s t o r i c a r e a . . . A l l l a n d uses which would be developed i n a manner complementary to the e n v i r o n mental and h i s t o r i c c h a r a c t e r of those areas should be p e r m i t t e d . These would i n c l u d e s p e c i a l t y and convenience r e t a i l i n g , entertainment and c u l t u r a l f a c i l i t i e s , a v a r i e t y of r e s i d e n t i a l t y p e s , i n s t i t u t i o n s , o f f i c e s , and i n d i v i d u a l l y c o n s i d e r e d l i g h t i n d u s t r i a l and s e r v i c e commerc i a l areas. The h e i g h t s , massing and d e t a i l i n g of s t r u c t u r e s should be r e g u l a t e d so t h a t new development i s compatible w i t h the p a r t i c u l a r c h a r a c t e r of the area. L e g i s l a t i o n and by-laws should be enacted to p r o t e c t the community's i n t e r e s t - i n the p r e s e r v a t i o n and r e h a b i l i t a t i o n of h i s t o r i c s t r u c t u r e s and p l a c e s . A d e t a i l e d development p l a n should be prepared f o r each of these h i s o t i r c p a r t s of the c i t y . 6 4 Although  t h i s merely represents, one  the development of a c i t y p l a n and a t l e a s t two  years from completion,  of the steps i n  the" p l a n i t s e l f  is still  i t i s important  to note  the p o s i t i v e manner i n which Gastown, i s c o n s i d e r e d .  This  can be taken to i n d i c a t e t h a t the C i t y w i l l e v e n t u a l l y commit itself  to f u l l - s c a l e development of a v i a b l e Gastown a r e a .  The Problems and  Issues i n Gastown  B e f o r e Gastown can e v o l v e i n t o a f u l l y  developed  r e t a i l - e n t e r t a i n m e n t - r e s t a u r a n t d i s t r i c t that i s widely r e c o g n i z e d i n the same manner as the Vieux C a r r e or the r e s t o r e d areas of San F r a n c i s c o , a g r e a t many h u r d l e s must be surmounted and numerous problems must be s o l v e d . these problems are only o f a s h o r t - t e r m nature and  Some of will  l i k e l y be r e s o l v e d w i t h i n the next year w h i l e o t h e r s  will  have very long ranging e f f e c t s and must be d e a l t w i t h the next f i v e years or more.  over  However, whether the problems  are long or s h o r t - t e r m i n nature and whether they are major of minor i s s u e s , they w i l l the f i n a l form assumed  a l l , i n t h e i r own way, i n f l u e n c e  by the O l d  Townsite.  Once again, the r e l a t i v e importance a t t a c h e d to these problems v a r i e s from i n t e r e s t group t o i n t e r e s t group. For example, the o r g a n i z a t i o n s which r e p r e s e n t the p o p u l a t i o n of  the area m a i n t a i n t h a t the major problems are c r e a t e d by  those f o r c e s which serve t o i n c r e a s e r e n t s and d r i v e r e s i dents  from the area w h i l e the Merchants A s s o c i a t i o n i s most  concerned  w i t h those f a c t o r s which i n f l u e n c e p o t e n t i a l s a l e s  volume and b u s i n e s s c o s t s .  Because of t h i s l a c k of agreement,  t h i s s e c t i o n of the t h e s i s w i l l d e a l w i t h the i s s u e s i n two general categories.  First,  the most w i d e l y r e c o g n i z e d i s s u e s  w i l l be e x a m i n e d — t h o s e problems w i l l be i n v e s t i g a t e d which are g e n e r a l l y r e c o g n i z e d by a l l groups to be of major ficance.  signi-  Then,the economic i s s u e s w i l l be d i s c u s s e d - - t h e  i s s u e s t h a t are most important  to Gastown's  merchants and  p r o p e r t y owners w i l l be c o n s i d e r e d . The major i s s u e s t h a t are r e c o g n i z e d by v i r t u a l l y a l l of the Gastown  i n t e r e s t groups are those which  concern  the s o c i a l problems r e l a t i n g t o the p r e s e n t p o p u l a t i o n of the area, the need f o r p r o t e c t i v e d e v i c e s to guard  against  d e s t r u c t i v e or u n s u i t a b l e development, and the p h y s i c a l  i i  problems r e l a t e d to t r a f f i c p a t t e r n s and the need f o r p a r k i n g facilities  i n the O l d Townsite. The  heated debate  s o c i a l i s s u e s have, to date, caused and the most widespread  the v a r i o u s groups.  disagreement  the most among  T h i s i s p a r t i a l l y caused by the s t r e n g t h  of the v e s t e d i n t e r e s t s i n v o l v e d but, a l s o , i t r e l a t e s t o the f a c t t h a t the c h a r a c t e r i s t i c s and needs o f the p r e s e n t popul a t i o n a r e w i d e l y misunderstood. C i t y P l a n n i n g Department noted  In a 1965 r e p o r t , the  that  the popular image o f s k i d road i s of a depressed area peopled by c h r o n i c a l c o h o l i c s and hopeless d e r e l i c t s ; an area u s u a l l y regarded as a necessary e v i l . T h i s image should be dispelled'. Many people l i v e here because they have l i t t l e c h o i c e . Some are p h y s i c a l l y d i s a b l e d and l i v e s o l e l y on w e l f a r e a s s i s t a n c e ; some a r e pensioners eking out t h e i r allowances i n the cheapest accommodation they can f i n d . Some, by l a c k of s k i l l s a r e p r a c t i c a l l y unemployable; and some l i v e here simply because they enjoy the c o n s t a n t a c t i v i t y o f the area.65 R e h a b i l i t a t i o n of the area has imposed h a r d s h i p upon these r e s i d e n t s because they have e i t h e r been e v i c t e d , i n order to make way f o r the new shops, o f f i c e s , and r e s i d e n c e s or they have found t h a t t h e i r r e n t s have been f o r c e d up by the new development.  I t i s g e n e r a l l y conceded  t h a t these  f a c t o r s w i l l e v e n t u a l l y d r i v e these r e s i d e n t s from the area w i t h the r e s u l t t h a t , sometime i n the f u t u r e , s k i d road w i l l merely  s h i f t i t s l o c a t i o n and be r e - e s t a b l i s h e d i n one or  more new l o c a t i o n s w i t h i n the c i t y .  66  The r e s i d e n t s have  organized  to demand t h a t t h e i r problems be r e c o g n i z e d  t h a t r e n t c o n t r o l s , or some other s e t the  s o l u t i o n , be  and  found to o f f -  trend. On  the other  hand, some o f the businessmen I n  Gastown f e e l t h a t the g e n e r a l area w i t h S k i d Road and uncleanliness, prospective  and  public s t i l l  associates  the  t h a t the image of high crime r a t e s ,  d r i n k i n g and  customers away.  drug problems keep many  These i n d i v i d u a l s b e l i e v e  that  t h i s r e s i s t a n c e cannot be f u l l y overcome u n t i l the  current  population  sympathetic  i s d r i v e n from the a r e a .  Those who  are  to the needs of the r e s i d e n t s have not y e t been a b l e to o f f e r v i a b l e plans  f o r s o l u t i o n s to the s o c i a l problems.  P o s s i b l y the b e s t hope f o r r e c o n c i l i a t i o n of two  opposed views and  the e v e n t u a l  s o l u t i o n of the  social.  problems i s the sympathetic manner i n which the i s s u e covered i n the R e s t o r a t i o n  Report.  I t stated  the  was  that  i t i s a d i s t u r b i n g consequence t h a t , as a d e c l i n i n g area r e g a i n s a new v i t a l i t y , the t r a n s i e n t and m a r g i n a l p o p u l a t i o n , having found support i n such an area, are d i s p l a c e d . The p o p u l a t i o n , a very v i s i b l e but s m a l l p o r t i o n of our s o c i e t y , has not been understood and i s l a r g e l y unwanted. The o l d c i t y i s a l i v i n g room p r o v i d i n g low c o s t l i v i n g , t o l e r a n c e , companionship and anonymity. Although s t u d i e s of the i s s u e s and the s e r v i c i n g agencies are somewhat u n c o - o r d i h a t e d , some progr e s s has taken p l a c e . I t i s understood t h a t r e s o l u t i o n s of these s o c i a l i s s u e s would r e q u i r e a c a r e f u l study i n p a r t n e r s h i p w i t h the C i t y ' s Department of S o c i a l P l a n n i n g and Community Development.  P r i v a t e indoor and outdoor p r o v i s i o n s should be a v a i l a b l e t o t h i s p o p u l a t i o n s t i l l i n c o n t a c t w i t h t h e i r 'known' world. . The i n t e n t i o n o f t h i s ' r e p o r t would be t o minimize the d i s l o c a t i o n by d e v e l o p i n g accommodation and s u p p o r t i v e s e r v i c e s f o r t h e i r l i f e p a t t e r n s w i t h some p e r s o n a l d i g nity. 6 7  A s o c i a l survey o f the area by the Vancouver C i t y  Social  68 P l a n n i n g Department  has been i n c l u d e d i n the Stage I I  s t u d i e s as approved by C i t y C o u n c i l . The  need t o p r o v i d e p r o t e c t i o n f o r the b u i l d i n g s  i n Gastown i s w i d e l y accepted by a l l groups which b e l i e v e the r e h a b i l i t a t i o n of the O l d Townsite to be a d e s i r a b l e development.  T h i s p r o t e c t i o n i s r e q u i r e d so t h a t the c h a r a c -  t e r o f the a r e a w i l l not be d e s t r o y e d by d e m o l i t i o n o f any of the unique,  h i s t o r i c b u i l d i n g s t h a t make up Gastown o r  by c o n s t r u c t i o n of new s t r u c t u r e s which c l a s h w i t h the s c a l e or c h a r a c t e r o f the O l d Town.  Although  t h i s problem i s  w i d e l y r e c o g n i z e d , no c l e a r - c u t s o l u t i o n has y e t been  found.  The C i t y P l a n n i n g Department p r o p o s a l f o r the Stage I I study noted t h a t "there a r e s e v e r a l ways t o p r o t e c t and d i r e c t the e v o l u t i o n o f Vancouver's h i s t o r i c  areas ... z o n i n g t h e  B r i t i s h Columbia H i s t o r i c Monuments A c t . . . , o r the O f f i c i a l 69 Development P l a n . . . "  The P l a n n i n g Department b e l i e v e s t h a t  zoning i s not a s a t i s f a c t o r y answer  (although i t has suggested  the use o f r e z o n i n g o f the area as an immediate b u t short-term, p a r t i a l s o l u t i o n ) but w i l l not recommend a course o f a c t i o n f o r l e g i s l a t i v e p r o t e c t i o n u n t i l i t completes the Stage I I study i n 1971.  I f the r e h a b i l i t a t i o n of Gastown i s to c o n t i n u e , ^ the area must be p r o t e c t e d from the s t r a n g l i n g e f f e c t s of .traffic  c o n g e s t i o n and  the p o s s i b l e encroachment of freeway  r i g h t - o f - w a y s w h i l e s u f f i c i e n t p a r k i n g f a c i l i t i e s must be c o n s t r u c t e d to handle renewed Gastown. designed of  the i n c r e a s e d . t r a f f i c  generated  The Old Townsite s t r e e t s are p o o r l y  to cope with today's  t r a f f i c p a t t e r n s and the u n i t y  the area i s threatened by the p o t e n t i a l b a r r i e r s  by freeway development and b r i d g e c o n n e c t o r s . lities will  by a  imposed  Parking  faci-  cannot handle p r e s e n t demands, l e t alone t h a t which  develop  i n the f u t u r e .  At the p r e s e n t time, t h e r e are  no d e f i n i t e plans f o r c o n s t r u c t i o n of p a r k i n g f a c i l i t i e s or s o l u t i o n of the C i t y ' s t r a f f i c Stage I I study w i l l framework and  and  freeway problems.  The  examine these i s s u e s w i t h i n the g e n e r a l  the C i t y E n g i n e e r i n g Department w i l l  proposals for t r a f f i c  present  c o n t r o l and freeway and b r i d g e p l a c e -  ment. The major economic i s s u e s i n Gastown r e l a t e to the following questions:  who  should pay  the c o s t of r e h a b i l i -  t a t i o n of the area?; what should be done to ensure the s u r v i v a l of the s m a l l merchants i n the d i s t r i c t ? ; what p r o t e c t i o n should be p r o v i d e d a g a i n s t i n c r e a s i n g c o s t s f o r p r o p e r t y owners and r e n t e r s ? Even though a l l p a r t i e s agree t h a t r e h a b i l i t a t i o n of "Gastown i s a worthwhile p r o j e c t , t h e r e i s no agreement as  to how the c o s t s o f the program should  be met.  The property-  owners, o f c o u r s e , have p a i d f o r the r e h a b i l i t a t i o n o f t h e i r •own b u i l d i n g s and have a l s o agreed t o pay almost 60 p e r c e n t of the c o s t o f the E a s t Gastown B e a u t i f i c a t i o n P r o j e c t ^ but a d d i t i o n a l amenities and f i x t u r e s w i l l be r e q u i r e d i n the f u t u r e and the land owners w i l l c e r t a i n l y not be e n t h u s i a s t i c about assuming extended c o s t s .  C i t y C o u n c i l has e s t a b l i s h e d  a committee t o n e g o t i a t e w i t h the P r o v i n c i a l Government f o r 71 f i n a n c i a l assistance for.the project,  but nothing has  r e s u l t e d from t h i s as y e t and the b a s i c f i n a n c i a l  questions  remain unanswered. The  property  C i t y Planning  owners, i n Gastown have approached the  Department, through the Townsite Committee, t o 72  examine the p o s s i b i l i t y o f p r o v i s i o n of t a x r e l i e f who have made o r w i l l make l a r g e f i n a n c i a l o u t l a y s t o r a t i o n o f b u i l d i n g s i n the O l d Townsite. if  such r e l i e f  i s not provided,  property  They f e e l  that  revenue-producing  make l a r g e expenditures on p r i v a t e and p u b l i c  improvements, and support the c o n s e q u e n t i a l ' 73 on t h e i r p r o p e r t i e s . " On  for res-  " i t may become uneconomical  to develop t h e i r p r o p e r t i e s t o h i g h e r activities,  f o r thos  the other  tax i n c r e a s e s  hand, the merchants f e e l t h a t i f the  taxes and other p r o p e r t y - r e l a t e d c o s t s go up, the  land owners w i l l merely pass the i n c r e a s e d t h e i r tenants i n the form o f i n c r e a s e d  expenses along t o  rents.  The merchants  worry about the f a c t t h a t , i f r e n t s are d r a s t i c a l l y due  to r a i s i n g  .business  increased  taxes , greed, or other causes, many Gastown  f i r m s c o u l d be f o r c e d out o f b u s i n e s s .  The P r e s i -  dent o f the Gastown Merchants A s s o c i a t i o n expressed  these  f e a r s when he noted t h a t the landowners "could simply be tempted t o take somebody e l s e i n who i s w i l l i n g t o pay twice as.much f o r . t h e space but thereby to  [the Gastown area]  stands  l o s e the m a j o r i t y of a l l the independent, l i t t l e ,  handi-  74 c r a f t people."  • .  -  T h i s leads i n t o the second p a r t o f the issue--how to p r o t e c t the small f i r m s ?  The m a j o r i t y of businesses i n  the O l d Townsite have a very low y e a r l y s a l e s volume and a r e .  .  75  run by i n d i v i d u a l s w i t h l i t t l e  business  experience.  If  r e n t s d r a s t i c a l l y i n c r e a s e , t h i s type o f f i r m w i l l not be a b l e t o absorb the i n c r e a s e d c o s t s and w i l l be f o r c e d t o cease o p e r a t i o n .  The Merchants A s s o c i a t i o n P r e s i d e n t  b e l i e v e s t h a t t h i s would damage Gastown economically  because  without [the l i t t l e botiques] i t w i l l j u s t event u a l l y be a commercial area which w i l l l o s e i t s appeal and when people have been here once they w i l l say, 'Aw we don't need t o go back t h e r e again. I t wasn't a l l t h a t hot a f t e r a l l . ' But w i t h the l i t t l e boutiques and the f l a i r and the guy p l a y i n g the g u i t a r , there i s always somet h i n g happening ....But i f we had t o s a c r i f i c e a l l o r the m a j o r i t y o f the small guys which r e a l l y does g i v e the f l a i r and c u l t u r e t o Gastown, I t h i n k i t would l o s e i t s appeal to the p u b l i c . 7 6  The Appeal of Gastown I n the f i r s t Chapter of t h i s t h e s i s , one of the s u p p o r t i n g statements "the customer  to Hypothesis Number One  declared that  a t t r a c t i o n generated by the Gastown area i s  based upon the unique i d e n t i t y and a u t h e n t i c i t y of the area (that i s , an appeal based on h i s t o r i c charm) i n combination w i t h the n o v e l and contemporary  nature of the b u s i n e s s f i r m s  t h a t are r e s i d e n t i n the d i s t r i c t ,  (that i s , an appeal based  77 on modernxty and uniqueness)."  T h i s statement i s s h o r t and  c o n c i s e of n e c e s s i t y . a n d , t h e r e f o r e , does not f u l l y why  explain  Gastown has become so p o p u l a r f o r Vancouverites t o v i s i t  nor why  the r e h a b i l i t a t i o n of the area has r e c e i v e d  favourable p u b l i c i t y .  such  I t i s the purpose of t h i s s e c t i o n to  expand upon the d e f i n i t i o n of the appeal of the Old C i t y i n o r d e r t o s e t the f u n c t i o n a l a n a l y s i s " a n d economic study i n context. The p o r t i o n o f the appeal of the Old Townsite  that  i s based upon h i s t o r i c charm i s an extremely complex f o r c e . I t g a i n s p a r t of i t s s t r e n g t h from the r e a c t i o n of modern man  to the n e g a t i v e c h a r a c t e r i s t i c s of the s k y s c r a p e r s t h a t  he has c r e a t e d — - t h e i r overpowering impersonal n a t u r e .  s i z e , harsh geometry, and  As w e l l , he has begun to r e a l i z e  the wholesale d e m o l i t i o n of s t r u c t u r e s i n the o l d e r  that areas  o f h i s c i t y and t h e i r replacement w i t h modern b u i l d i n g s i s c r e a t i n g a b a r r e n , u n i n t e r e s t i n g urban area and i s r o b b i n g  him of h i s c u l t u r a l and h i s t o r i c h e r i t a g e .  In Gastown, .  many c i t i z e n s of Vancouver see an.area which can combat these trends o r , a t l e a s t , p r o v i d e a reasonable  alternative  t o the s h i n i n g g l a s s and c o n c r e t e c o n c e n t r a t i o n s o f the West End and the downtown areas. The a r c h i t e c t u r e o f the O l d G r a n v i l l e  Townsite  maintains a s t r o n g l i n k w i t h Vancouver's e a r l y l i f e and culture.  These b u i l d i n g s a r e n e i t h e r . a r t i f i c i a l nor con-  trived, yet are adorned v/ith some of the most flamboyant and r i c h embellishment i n North America. Some are a r c h i t e c t u r a l masterpieces w h i l e o t h e r s a r e j u s t s t r o n g e c l e c t i c e x p r e s s i o n s i n a new a r c h i t e c t u r e — t h e a r c h i t e c t u r e of the West Coast. I n d i v i d u a l l y they are e x c i t i n g , a t times b e a u t i f u l , and a t times a b s u r d — c o l l e c t i v e l y they c r e a t e an area u n p a r a l l e l e d i n North America . f o r r i c h n e s s and p o t e n t i a l . 7 8 The t h r e e and f o u r s t o r e y b u i l d i n g s l o c a t e d i n the O l d Townsite do not tend t o overpower the i n d i v i d u a l b u t , r a t h e r , draw him i n t o the area t o d i s c o v e r the v a r i e t y and d i v e r s i t y of the d i s t r i c t .  Gastown maintains an a t t r a c t i o n  f o r a l l those who a p p r e c i a t e t h e a e s t h e t i c appeal and. uniqueness of. the o l d designs and the h i s t o r y embodied i n the buildings. There are a l s o many s i d e s t o the segment o f Gastown's appeal which i s based upon the nature of the shops 79 and other b u s i n e s s e s t h a t have r e c e n t l y l o c a t e d t h e r e .  Once a g a i n ,  a p o r t i o n of t h i s a t t r a c t i v e f o r c e r e l a t e s to  the r e a c t i o n by modern man •impersonal environment. i n d i v i d u a l i t y and f o r unique and  to h i s h i g h l y t e c h n i c a l  In order  to gain some measure of  d i s t i n c t i v e n e s s , he has begun to  hand-crafted  and  look,  items, which i s b a s i c a l l y the  type of merchandise t h a t the t y p i c a l Gastown merchant specializes in.  In order  short-comings o f  'big b u s i n e s s '  and  better personal  to p r o t e s t a g a i n s t  the  as w e l l as to g a i n more  s e r v i c e , he has  begun to p a t r o n i z e  s m a l l , independent s t o r e which, once again, c h a r a c t e r i s t i c s of the m a j o r i t y But  the  perceived  i s one  the  of  the  of Gastown shops.  " r e a c t i o n " theory  i s not s u f f i c i e n t  to 80  f u l l y e x p l a i n the drawing power possessed by Gastown.  A  p o r t i o n of the charisma of the area r e l a t e s t o the f a c t  that  Gastown i s d i r e c t l y i n the mainstream of an important contemporary t r e n d . to f i l l  Modern man  his increased  i s c o n t i n u a l l y . l o o k i n g f o r ways  l e i s u r e time and  the  restaurants,  c l u b s , and  even the merchants of Gastown are f i l l i n g  need.  t y p i c a l shopping t r i p to the area  by  The  this  i s characterized  l e i s u r e l y browsing r a t h e r than the h e c t i c rush of the  downtown or the contemporary suburban shopping c e n t r e . town i s s u p e r b l y  s u i t e d to p r o v i d e . t h e s e  t i e s because of i t s p r o x i m i t y i t s concentration  t o the CBD  Gas-  leisure-time  activi-  and  that  the f a c t  of r - e - r a c t i v i t i e s p r o v i d e s  a l t e r n a t i v e s f o r the l e i s u r e - s e e k e r .  ^_  a number of  In a d d i t i o n , Gastown  '  i s becoming known as an area where those who and i n the f o r e f r o n t of contemporary l i f e •going to e a t , shop, and enjoy themselves. in  are  up-to-date  i n the c i t y  are  In o t h e r words,  t h i s modern world, "people are l o o k i n g f o r spontaneous 81  c o l l e c t i v e excitement"  and many of the "in-crowd"  believe  t h a t they can f i n d i t i n Gastown. The authors of the R e s t o r a t i o n Report appear t o be f u l l y aware of t h e major f a c e t s of the appeal of Gastown when they note  that  the r o l e t h a t t h i s d i s t r i c t can f u l f i l l comes not only from i t s h i s t o r i c a l c o n n o t a t i o n but from i t s l o c a t i o n and p h y s i c a l c h a r a c t e r . The c l o s e s c a l e and v a r i e t y of the b u i l d i n g s , whether s i g n i f i c a n t or modest, g i v e a q u a l i t y to the s t r e e t s which cannot be d u p l i c a t e d . The b u i l d i n g s a r e , w i t h few e x c e p t i o n s , continuous facades and sound s t r u c t u r e s . The east-west s t r e e t s and a l l e y s t u r n i n a geometry which, as i n medieval c i t i e s , c l o s e s the v i s t a s on b u i l d i n g f a c e s . The n o r t h - s o u t h s t r e e t s and spaces o f f e r a view to the harbour and mount a i n s .... I t i s n a t u r a l t h a t t h i s p a r t of the c i t y would b e g i n t o focus the d i s p e r s i n g and unconnected s p e c i a l t y shops, g a l l e r i e s , b o u t i ques, showrooms, s t u d i o s , o f f i c e s and r e s i d e n c e f o r people a t t r a c t e d back i n t o the c i t y ' s l i f e . I t would a l s o support r e s t a u r a n t s , c a f e s , and a l l l e v e l s of entertainment. T h i s chapter has reviewed  the p a s t and p r e s e n t  h i s t o r y of Gastown as w e l l as the v a r i o u s p l a n s t h a t have been suggested  f o r the area i n the l i g h t of urban  and commercial  r e h a b i l i t a t i o n theory.  that the Old Townsite  renewal  I t has been observed  has e x p e r i e n c e d the emergence of the  same g e n e r a l n a t u r a l f o r c e s as other North American in  similar situations.  cities  That i s ,  1.  Vancouver began to experience an i n c r e a s e i n the r a t e of u r b a n i z a t i o n d u r i n g the 1880's and t h i s t r e n d along.with one toward s u b u r b a n i z a t i o n , has c o n t i n u e d unabated up to the p r e s e n t time;  2.  d u r i n g the e a r l y years of the t w e n t i e t h c e n t u r y when Vancouver was l i t t l e more than f o r t y years o l d , a l l of the problems c h a r a c t e r i s t i c of the urban c r i s i s c o u l d be observed i n Gastown. The b u i l d i n g s l o c a t e d t h e r e had become f u n c t i o n a l l y o b s o l e t e and the area was badly congested w i t h the r e s u l t t h a t r e s i d e n t s and b u s i n e s s f i r m s , a l i k e , began to f l e e to o t h e r areas;  3.  as the c e n t r e of the c i t y s h i f t e d away from the O l d Townsite, p r o p e r t y owners i n the d i s t r i c t f a i l e d to r e a c t p o s i t i v e l y to the new c o n d i t i o n s and n e g l e c t e d t o r e p a i r and m a i n t a i n t h e i r b u i l d i n g s . The area then f e l l i n t o a b l i g h t e d condition. As d e t e r i o r a t i o n , decay, and obsolescence spread throughout the d i s t r i c t , i t was taken over by V a n c o u v e r s s k i d road p o p u l a t i o n and Gastown began to s u f f e r from the e x t e n s i v e s o c i a l and economic c o s t s t h a t r e s u l t from the spread of blight; 1  4.  5.  d u r i n g the past decade, Vancouver C i t y C o u n c i l s have demonstrated i n c r e a s i n g concern about the d e t e r i o r a t i o n of the C a r r a l l - C o r d o v a - P o w e l l Alexander a r e a . P r i o r to 1968, v a r i o u s urban renewal p r o p o s a l s were put forward f o r the r e j u v e n a t i o n of the d i s t r i c t ; most of which i n v o l v e d the use of the c l a s s i c redevelopment techniques . o f d e m o l i t i o n and replacement of b l i g h t e d s t r u c tures. However, due t o a combination of C o u n c i l i n e r t i a and o t h e r c i r c u m s t a n c e s , Vancouver's o n l y h i s t o r i c d i s t r i c t was saved from d e s t r u c t i o n ; as the development of these urban renewal p r o p o s a l s began to t h r e a t e n t o d e s t r o y both the s t r u c t u r e s and nature of the Old Townsite, v a r i o u s groups began to press f o r the p r e s e r v a t i o n and r e h a b i l i t a t i o n of the threatened s t r u c t u r e s . However, i t was not u n t i l 1968 t h a t the Community A r t s C o u n c i l was able to g a i n u n i f i e d support from these i n t e r e s t groups f o r a scheme to p u b l i c i z e the matter. The v e h i c l e used was a combined l e c t u r e and guided tour  which succeeded i n b u i l d i n g e x t e n s i v e p u b l i c i n t e r e s t i n the p r e s e r v a t i o n and r e h a b i l i t a t i o n of the Old C i t y . I t i s l i k e l y t h a t the outlook of the m a j o r i t y of the members o f the Cummunity A r t s C o u n c i l was such t h a t the a s s o c i a t i o n ' s b a s i c g o a l was t o promote h i s t o r i c r e h a b i l i t a t i o n i n Gastown; the summer f o l l o w i n g the A r t s C o u n c i l t o u r s w i t nessed the f i r s t movement of merchants and develope r s i n t o Gastown and, w i t h i n one year, the r e h a b i l i t a t i o n a c t i v i t i e s i n the area had taken on major proportions. Because the m o t i v a t i o n of the b u s i nessmen t h a t began t o l o c a t e t h e r e concerned monetary g a i n ^ r a t h e r than p u r e l y a e s t h e t i c reasons, the r e j u v e n a t i o n of Gastown must be c l a s s e d as commercial r e h a b i l i t a t i o n . The p h y s i c a l and if  remainder of the t h e s i s w i l l examine s p e c i f i c economic f a c t o r s i n Gastown i n order to determine  the development to date has been e c o n o m i c a l l y  and whether.the area can  s u r v i v e over the long  justifiable run.  .  Footnotes:  Chapter I I I  "*"A. Rogatnick, "The B a s i c Premise," R e s t o r a t i o n Report: A Case f o r Renewed L i f e i n the O l d C i t y , prepared by Birmingham and Wood, e t . a l . Vancouver: The C i t y C o u n c i l e t a l . , 1969, p. 7. 2  D. N . S p e a r i n g , "Chinatown... Vancouver's H e r i t a g e , " Plywood World, V o l . 9 ( F i r s t Q u a r t e r , 1969), p. 4. ^Among the B u r r a r d I n l e t s e t t l e m e n t s which pre-date Gastown are P o r t Moody (1859), a t the head o f the i n l e t ; "the t h r e e greenhorns c l a i m " (1962), i n the area now known as Vancouver's West End; and Graham Company's Pioneer M i l l (1862), which was l o c a t e d one-quarter m i l e e a s t of the p r e s e n t day f o o t o f L o n s d a l e Avenue i n North Vancouver ( l a t e r renamed Moodyville). Source: A. Morley, Vancouver: From M i l l t o w n t o M e t r o p o l i s , Vancouver: M i t c h e l l P r e s s , 1969. Most o f t h i s s e c t i o n has been f r e e l y adapted from t h i s source and w i l l , t h e r e f o r e , n o t be f o o t n o t e d f u r t h e r , except i n the case o f d i r e c t q u o t a t i o n s . 4 E. O ' K i e l y , ed., Gastown R e v i s i t e d , Vancouver: Community A r t s C o u n c i l o f Vancouver, 1970,'p. 4. 5 Morley, Op. C i t . , pp. 64-65. ^ I b i d . , p. 72. 7  Ibid.  8  S p e a r i n g , Op. C i t . , p. 6. 9 Vancouver C i t y P l a n n i n g Department, Down town-E a s t S i d e : A P r e l i m i n a r y Study, Vancouver: C i t y P l a n n i n g Department, 1965, pp. 19-20. •^Morley, Op. Cit..,. p. 112. 1 1  Ibid.,  p. 178.  12 Vancouver C i t y P l a n n i n g Department, Downtown-^East S i d e , p. 20.  D. S t a i n s b y , " V a n c o u v e r — E n d i n g an E r a of Genteel Decay, E x c i t i n g New L i f e S t y l e s S p r i n g up i n West End and Gastown," The Vancouver Sun, December 31, 1969, p. 11A 14 Chicago Tenants R e l o c a t i o n Bureau, The Homeless Man on S k i d Road, as c i t e d i n Vancouver C i t y P l a n n i n g Department, Downtown-East S i d e , p. 20. ^ S t a t e m e n t by T e r r y W i l l d x , p u b l i s h e r of The Gastown Gazette as c i t e d i n Paul Musgrove, "Major Rezoning Urged to P r e s e r v e Gastown," The Vancouver Sun, June 18, 1970, p. 29.  S i d e , p.  ^Vancouver C i t y Planning 21.  Department, Downtown-East ' . •  17 For examples of the newspaper coverage of the "Walk" see: A. Campbell, "Gastown R e v i s i t e d , " The Vancouver P r o v i n c e , August 17, .1968, p. 33; H. Abbott, "Town to R e c a l l E a r l y A r c h i t e c t u r e , " The Vancouver Sun, September 4, 19 68, p. 56; A. Campbell, "A Worthy Legacy," The Vancouver P r o v i n c e , September 19, 1968, p. 29; K. T a i t , "Gleam of L i g h t f o r Gastown," The Vancouver P r o v i n c e , September 23, 1968, p. 25; The Vancouver Sun, "600 Gawk a t Old Gastown to Spark R e v i v a l P l a n , " September 23, 1968, p.. 3. 18 While r e s e a r c h i n g t h i s paper, the author i n t e r viewed numerous i n d i v i d u a l s w i t h i n t e r e s t s i n Gastown. I t was s u r p r i s i n g to f i n d the l a r g e number of groups who c l a i m c r e d i t f o r g e t t i n g Gastown s t a r t e d or f o r being the f i r s t to become aware of i t s p o t e n t i a l . The author chose the "Community A r t s C o u n c i l Walk" as the t u r n i n g p o i n t i n the l i f e of the area because t h i s i s the event t h a t the l a r g e s t number appear to g i v e c r e d i t f o r s e t t i n g the program i n the r i g h t d i r e c t i o n . However, i t i s worthwhile to note t h a t , s i n c e so many d i f f e r e n t groups and i n d i v i d u a l s c l a i m c r e d i t f o r Gastown's r e b i r t h , i t i s l i k e l y t h a t the concept was an i d e a "whose time had come." That i s , i t i s p r o b a b l e t h a t many s e p a r a t e formal and i n f o r m a l o r g a n i z a t i o n s conceived of the r e h a b i l i t a t i o n p r o s p e c t s of Gastown a t approximately the same p e r i o d of time. T h i s should s e r v e to s t r e n g t h e n the development, i n t h a t the p r o j e c t can be s a i d to be "of the p e o p l e , " r a t h e r than one imposed by a government agency or other b u r e a u c r a t i c o r g a n i z a t i o n . This e x t e n s i v e awareness can be expected to p r o v i d e a ready-made broad base upon which redevelopment agencies can depend f o r support. 1 9  0 ' K e i l y , Op.  C i t . , p.  35.  20 . Birmingham and Wood, e t a l . , Op.  C i t . , p.  4.  Improvement of Downtown E a s t Area S o c i e t y , " B e a u t i f i c a t i o n Programmes f o r Downtown Hastings S t r e e t / Gastown/Chinatown." Unpublished press r e l e a s e . Vancouver: I.D.E.A.S., no date, p. 1. 22 B. Ewald, P r e s i d e n t of the Gastown Merchants A s s o c i a t i o n , I n t e r v i e w w i t h the w r i t e r , September 4, 1970. 23 Dr. R. M. Kaplan, P r e s i d e n t of the Gastown Improvement A s s o c i a t i o n , Notes, made by w r i t e r d u r i n g speech t o C i t y C o u n c i l , J u l y 7, 1970. 24 L a r r y Smith and Company, An Economic A n a l y s i s f o r C e n t r a l Business D i s t r i c t Redevelopment, Vancouver, B.C.: Phase I - P r e l i m i n a r y Study,-Vancouver: The C i t y P l a n n i n g Department, 1963. 25 I b i d . , p. 15. v  •  I b i d . , p. 17. 27 Vancouver C i t y P l a n n i n g E a s t S i d e , p. 45. 2 6  Department, Downtown-  28 For the o r i g i n a l announcement of the p r o j e c t see: The Vancouver P r o v i n c e , " P r o j e c t 200"Properties L i m i t e d , " August 27, 1966, p. 23; J o u r n a l of Commerce Weekly, " P r o j e c t Goes Ahead," August 20, 1966, p. 2. 29 The f o u r f i r m s which formed P r o j e c t 200 Propert i e s L i m i t e d a r e : G r o s v e n o r - L a i n g Development Co. (Canada) L t d . ; Marathon R e a l t y , the r e a l e s t a t e s u b s i d i a r y o f C.P.R.; Woodward Stores L t d . ; and Simpson-Sears L t d . ^ F o r an example o f ah a r t i c l e which p l a c e d the c o s t o f the p r o j e c t a t $200 m i l l i o n , see The Vancouver P r o v i n c e , " P r o j e c t 200 P r o p e r t i e s L i m i t e d , " August 27, 1966, p. 23. On the other hand, B. E l s i e , " P r o j e c t 200 Shaping Up," The Vancouver P r o v i n c e , June 3, 1967, pp. 1-2, s e t s the f i g u r e a t $300 m i l l i o n . 31 The Vancouver Sun, " P r o j e c t 200 t o Employ O f f i c i a l P r e d i c t s , " March 29, 1967, p. 29. E l s i e , Op. C i t . , p. 1.  29,000  J o u r n a l o f Commerce, Op. C i t . , p. 2. •  34  For the newspaper coverage o f the c r i t i c i s m o f . P r o j e c t 200, see: The Vancouver Sun, " P r o j e c t 200 P l a n Comes Under F i r e , " November 4, 1968, p. 46 and The Vancouver Sun, "'Waterfront Vandalism' C r i t i c i z e d , " December 7, 1968, p. 37. 35 A. McKenzie, "'Heart' E n v i s i o n e d f o r C i t y , " The Vancouver P r o v i n c e , May 21, 1970, p. 26. 36 K. T a i t , "Gleam o f L i g h t f o r Gastown," The Vancouver P r o v i n c e , September 23, 1968, p. 25. 37 May  Gastown Gazette, " P r o j e c t 200 i s Moving West?" 1 - May 8, 1970, p. 1. 38 Birmingham and Wood, e t . a l . , Op. C i t . , p. 25. 39  For reviews of t h i s study see: Vancouver C i t y P l a n n i n g Department, "Recommendation: Stage I B e a u t i f i c a t i o n S t u d i e s f o r O l d G r a n v i l l e Townsite (Gastown): H a s t i n g s S t r e e t : and Chinatown." Unpublished r e p o r t , F i l e Ref. C.36.4, Vancouver: C i t y P l a n n i n g Department, 19 69; and I . MacAlpine, "Dress Up O l d C i t y — P l a n n e r s , " The Vancouver P r o v i n c e , J u l y 11, 1969, p. 27. ' 40 Birmingham and Wood, e t . a l . , Op. C i t . , p. .4. 41 Vancouver C i t y P l a n n i n g Department, "Stage I B e a u t i f i c a t i o n S t u d i e s , " p. 8. 42 Birmingham and Wood, e t . a l . , Op. C i t . , p. 28. ^ I b i d . , p. 25. 44  I b i d . , p. 24. 45 I b i d . , p. 25. ^ I b i d . , p. 26. I b i d . , p. 28. 4 7  See: Gastown Gazette, " C i t y W a f f l i n g on Gastown Goes On, On, On, On, On, On, On, On!" May 29 - June 5, 1970, pp. 1-2. 49  For the newspaper r e p o r t s o f the progress of the p r o p o s a l see: P. Musgrove, "Major Rezoning Urged t o Preserve Gastown," The Vancouver Sun, June 18, 1970, p. 29; The Vancouver Sun, "Gastown Study Asked," June 24, 1970, p. 18; J . G r i f f i t h s , "'Curb Rents' P l e a from Gastown," The Vancouver P r o v i n c e , J u l y 8, 19 70, p. 7; The Vancouver P r o v i n c e , "More S t u d i e s on Gastown," J u l y 22, 1970, p. 21; and The Vancouver Sun, "Gastown Go-Ahead: $17,800 f o r Study," J u l y 22, 1970, p. 16. ^ V a n c o u v e r C i t y P l a n n i n g Department, "Recommendation: G e n e r a l Report—Gastown, Chinatown." Unpublished r e p o r t F i l e Ref. C.36.4.2, Vancouver: C i t y P l a n n i n g Department, June 12, 1970, pp. 2-3 and 8. For the boundaries o f the r e z o n i n g area see Map 2, F i g u r e A. ^ I b i d . , p. 2. 52 I b i d . , p. 3. 5 3  I b i d . , pp.  7-8.  54  I b i d . , pp. 2 and 6. 55 As of the date o f w r i t i n g , C i t y C o u n c i l had not y e t r u l e d upon the a p p l i c a t i o n f o r r e z o n i n g to CD-I. However, the e s t a b l i s h m e n t of a Gastown A d v i s o r y Committee, a s i t e o f f i c e , and a committee o f c o u n c i l to n e g o t i a t e w i t h the p r o v i n c i a l government on f i n a n c i a l involvement was approved a t the J u l y 7th C o u n c i l Meeting. Two weeks l a t e r , C o u n c i l approved expenditure of the $17,800 n e c e s s a r y i n 1970 to b e g i n the study and a u t h o r i z e d submission of a p p l i c a t i o n of the zoning charge and i n i t i a t i o n of the proposed Stage I I study. ^ V a n c o u v e r C i t y P l a n n i n g Department, "General R e p o r t — G a s town, China town," p. 3. 57  For the r e p o r t s o f t h i s study see: The Vancouver P r o v i n c e , "For More Beauty, Gastown Co-op," June 17, 1970, p.-21.; The Vancouver P r o v i n c e , "Gastown Beauty Program T a b l e d , " June 10, 1970, p. 10; and The Vancouver Sun, " C o u n c i l Committee Urges S t a r t on Gastown P l a n , " J u l y 4, 1970, p. 6.  Birmingham and Wood, e t . a l . , Op. C i t . , pp. 26, 28 and 34-35. 59 Vancouver C i t y P l a n n i n g Department, "Recommendation: Proposed P r o j e c t — E a s t Gastown," unpublished r e p o r t , F i l e Ref. C.36.4.2, Vancouver: C i t y P l a n n i n g Department, May 29, 19 70, p. 1. 60 . , Ibid., T V  ^ I b i d . , p. 3. 62 Vancouver C i t y P l a n n i n g Department, Downtown Vancouver P l a n , P a r t I — T h e I s s u e s . Vancouver: C i t y P l a n ning Department, 1 9 6 8 , p . 3 8 . ^ V a n c o u v e r C i t y P l a n n i n g Department, Downtown Vancouver Development Concepts, Vancouver: C i t y P l a n n i n g Department, 1 9 7 0 , p . 2 2 . ^ I b i d . , pp. 37-38. 65 Vancouver C i t y P l a n n i n g Department, DowntownE a s t S i d e , pp. 13-14. 66 * For r e p o r t s s t r e s s i n g t h i s viewpoint.see: P..Musgrove, "No Room a t the Inn as Gastown Goes Mod," The Vancouver Sun, August 8, 1970, p. 10; and J . G r i f f i t h s , "'Curb Rents' P l e a from Gastown," The Vancouver P r o v i n c e , J u l y 8, 1970, p. 7. 67 Birmingham and Wood, e t . a l . , Op. C i t . , p. 28. 68 Vancouver C i t y P l a n n i n g Department, Report--Gastown, Chinatown," Appendix 3-C.  "General  69 I b i d . , Appendix 1. 70  . Vancouver C i t y P l a n n i n g Department, "Proposed  P r o j e c t — E a s t Gastown," p. 3. 71 Vancouver C i t y P l a n n i n g Department, Report--Gastown, I b i d . ,Chinatown," pp. 7-8. p. 8.  "General  I b i d . , p. 8. B. Ewald, P r e s i d e n t o f the Gastown Merchants • A s s o c i a t i o n , Interview with the w r i t e r , September 4, 1970. 75 J . K h o u r i , " S p i r i t of Gastown Triumphs Over Lack o f Know-how," The Vancouver Sun, J u l y 18, 1970, p. 21. 76 B. Ewald, P r e s d i e n t of the Gastown Merchants A s s o c i a t i o n , I n t e r v i e w with the w r i t e r , September 4, 1970. 7 7  This  t h e s i s , p. 13-14.  78 Spearing, Op. C i t . , p. 6. 79 Businesses are a t t r a c t e d t o Gastown by the combination of the a r c h i t e c t u r a l charm o f the area, low r e n t s , and the o p p o r t u n i t y t o l o c a t e i n an area i n which t h e r e i s a c o n c e n t r a t i o n of unique shops. 80 I f the " r e a c t i o n " theory was the only b a s i s o f the appeal o f Gastown's shops, r e s t a u r a n t s , and c l u b s , then l a r g e f i r m s , such as the O l d S p a g h e t t i F a c t o r y and P i e r 1, would n o t be a b l e t o s u r v i v e , s i n c e they c e r t a i n l y r e p r e s e n t "big business." 81 S p e a r i n g , Op. C i t . , p. 4. 82 Birmingham and Wood, e t . a l . , Op.. C i t . , p. 24.  CHAPTER IV  THE  NATURE OF BUSINESS CHANGE IN GASTOWN  Gastown, 1970, i s Vancouver's newest and most d r a m a t i c a l l y changed and changing area, where v e s t i g e s of the o l d c i t y remain and are t r e a t e d mostly w i t h r e s pect, oftentimes with a r e f r e s h i n g i r reverence, always w i t h i m a g i n a t i o n . Each day, i t seems, some new p l a c e opens.1 The b u i l d i n g s s i t u a t e d w i t h i n the Gastown Study area c o n t a i n 400,000 square more than one  and  f e e t of ground f l o o r space  three-quarter m i l l i o n  square  and  f e e t of  floor  2 area i n t o t a l . interest,  T h i s i n f o r m a t i o n , although of g e n e r a l  cannot be u t i l i z e d d i r e c t l y i n t h i s t h e s i s because  i t does not p r o v i d e data about the s i z e , number, or of b u s i n e s s e s  c u r r e n t l y l o c a t e d i n Gastown.  study area i s r e l a t i v e l y s m a l l i n r e l a t i o n 4 c o n t a i n s a m u l t i p l i c i t y of b u s i n e s s - t y p e s analyzed by category viability  of the  nature  Although  the 3 to the CBD, it which must be  i n order to determine the economic  district.  B e f o r e a comprehensive economic a n a l y s i s of area such as Gastown can be conducted,  i t i s necessary  an to  determine the p r e s e n t c h a r a c t e r of and changes t h a t have taken p l a c e i n the types of b u s i n e s s e s  t h a t r e s i d e t h e r e , so  t h a t the study can be guided by a proper understanding of the f u n c t i o n a l components of the T h e r e f o r e , the purpose  district. of Chapter IV i s t h r e e - f o l d  1.  to determine  the p r e s e n t business-mix i n Gastown;  2.  t o determine  the changes t h a t have taken p l a c e  i n . t h i s business-mix over time; 3.  to u t i l i z e  and  the data so determined  to p r e d i c t  f u t u r e changes i n the a r e a . The method t h a t w i l l be employed t o gather t h i s i n f o r m a t i o n , w i l l be the " f u n c t i o n a l c l a s s i f i c a t i o n "  technique, as d e f i n e  by Weiss. ~* F u n c t i o n a l A n a l y s i s of Land Use i n Urban Areas Urban land economists have' developed a number of m e t h o d o l o g i c a l approaches  which can be u t i l i z e d  to describe  and measure the economic and p h y s i c a l c h a r a c t e r i s t i c s of urban a r e a s . CBD  i n a comprehensive  study of methods of  a n a l y s i s , noted t h a t f o u r d i f f e r e n t "economic base  approach" of  Weiss,  techniques were a v a i l a b l e f o r the  investigation  changes i n m e t r o p o l i t a n areas: 1. 2. 3. 4.  r e t a i l sales a t t r a c t i o n , land v a l u e s , daytime p o p u l a t i o n , and functional classification. The l a s t approach detailed. I t may  6  i s the b r o a d e s t and most i n c o r p o r a t e any or a l l of  the other approaches enumerated; however, the emphasis i s on comprehensive r a t h e r than segmental a n a l y s i s . 7 Because the  first  three methods w i l l be employed i n l a t e r  chapters i n t h i s t h e s i s , they w i l l not be d e s c r i b e d this  at  time. Functional  c l a s s i f i c a t i o n a n a l y s i s employs  b a s i c techniques of t r a d i t i o n a l zoning approach has  surveys,  but  the the  been a l t e r e d to b e t t e r s u i t the needs of urban  land a n a l y s t s .  I t u t i l i z e s a land c l a s s i f i c a t i o n  system  based upon the nature of the a c t i v i t y predominant at each p a r t i c u l a r . l o c a t i o n w i t h i n the survey area  (that i s , based  upon the f u n c t i o n performed at each l o c a t i o n ) r a t h e r one  than  founded upon a d e s c r i p t i o n of the type of b u s i n e s s  located there.  T h i s i s necessary because "every b u s i n e s s  i s a packet of f u n c t i o n s can be  separated  and  and w i t h i n l i m i t s these  functions  located at d i f f e r e n t places."  The  type of problem t h a t t h i s methodology attempts to overcome i s exemplified  by t h a t which occurs when a d i s t r i c t  a number of buying o f f i c e s f o r department and i s placed  chain  containing stores  i n a " r e t a i l - t y p e " c a t e g o r y , r a t h e r than the more  suitable "office-type" c l a s s i f i c a t i o n .  I f such an area i s  c l a s s i f i e d as " r e t a i l - t y p e , " the survey w i l l a c t u a l l y d e s c r i b e the type of business t h a t u t i l i z e s the premises, r a t h e r  than  t h e / f u n c t i o n which i s performed a t the l o c a t i o n so the r e s u l t s w i l l be m i s l e a d i n g  (that i s , t h i s would prompt i n d i v i d u a l s  reading  the r e p o r t t o assume t h a t r e t a i l  the l o c a t i o n , when t h i s i s not the The  case).  s t r e n g t h of f u n c t i o n a l - t y p e a n a l y s i s i s both  t h a t i s more c l o s e l y d e s c r i b e s use  s a l e s are made a t  i n an area and  t r e n d of l a n d use  the t r u e nature of the  land  t h a t i t produces a c l e a r p i c t u r e of changes over time.  "While trends  the  in  retail  s a l e s a t t r a c t i o n , l a n d v a l u e s , and daytime  may  employed as symptomatic i n d i c a t o r s of changes i n the  CBD,  be  l a n d use  population  surveys taken at p e r i o d i c i n t e r v a l s may  be  used to measure d i r e c t l y the changes o c c u r r i n g i n the s t r u c 9 t u r e of the CBD."  In a d d i t i o n , t h i s methodology can  r e a d i l y modified  i n order  t o each s p e c i f i c  study.  The method has  appropriate  major drawback of the ^ f u n c t i o n a l a n a l y s i s  acceptable,  "The  c a t e g o r i e s based on business  used i n s t u d y i n g  the f u n c t i o n s f o  but i t s o r g a n i z a t i o n by i n d u s t r i e s i n s t e a d of by  makes i t cumbersome.""^ researchers  func-  very u s e f u l Standard I n d u s t r i a l C l a s s i f i c a t i o n  Manual has been "widely CBD,  information  been t h a t i t i s d i f f i c u l t to e s t a b l i s h p r e c i s e ,  yet broadly tions.  to p r o v i d e  be  During the e a r l y 19 50's  function  a number of  produced f u n c t i o n a l c l a s s i f i c a t i o n s y s t e m s ^  the r e s u l t s were g e n e r a l l y c r i t i c i z e d i n terminology subgroups and  and  the omission  because of  the  but  "ambiguity.  of a d e t a i l e d enumeration of 12 i n d i v i d u a l categories."  In 1957,  Weiss suggested a " F u n c t i o n a l  t i o n System f o r CBD  Land Use  A n a l y s i s i n Small  Classifica-  Metropolitan  13 •Areas"  which has  been w i d e l y  of f u n c t i o n a l land use 1. 2. 3. 4. 5. 6. 7. 8.  accepted.  The major c a t e g o r i e s  i n c l u d e d i n t h i s system were:  R e t a i l - Type Use, O f f i c e - Type Use, P a r k i n g Use, P u b l i c Use, Q u a s i - P u b l i c Use, Wholesale - Type Use, I n d u s t r i a l - Type Use, Residential Use. 1 4  Although the m a j o r i t y of r e f e r e n c e s to f u n c t i o n a l type a n a l y s i s i n secondary sources a p p l i c a t i o n i n C e n t r a l Business a l s o been w i d e l y of the CBD  D i s t r i c t S t u d i e s , i t has  a p p l i e d by urban p l a n n e r s  for specific purposes.^  area i s l o g i c a l l y  appear to d e s c r i b e i t s  and  to study  sub-areas  P r o v i d i n g t h a t the  s p e c i f i c a l l y d e f i n e d , f u n c t i o n a l analy-  s i s can be an extremely v a l u a b l e t o o l i n a n a l y z i n g l a n d i n s m a l l urban areas  study  use  such as Gastown.  Methodology Employed to Measure Land Use  Changes i n Gastown  Although t h e r e are a number of d i f f e r e n t v a r i a t i o n s of the f u n c t i o n a l approach t h a t c o u l d have been employed i n t h i s study,  i t was  decided  t h a t the " d i r e c t o r y method" would  be the most a p p r o p r i a t e , g i v e n the l i m i t a t i o n s imposed upon a r e s e a r c h e r working a l o n e .  The  g e n e r a l methodology  utilized 17  by R a t c l i f f to study  the Madison C e n t r a l Business  Area  was  adopted w i t h one major m o d i f i c a t i o n as suggested i n the Weiss  r e s e a r c h paper.  The R a t c l i f f study was  specifically  believed  to r e p r e s e n t the most s u i t a b l e method of land use  analysis  •upon which to p a t t e r n the p r e s e n t survey, because  i t was  w e l l documented, and because  i t was  "concerned  primarily 18  w i t h s h i f t s i n the p a t t e r n of r e t a i l i n g a c t i v i t i e s "  which  i s a l s o the major i n t e r e s t of the p r e s e n t study. The o b j e c t i v e s of the d i r e c t o r y study method, as s e t out by R a t c l i f f , were " t o examine, the f u n c t i o n s of the c e n t r a l area, to r e v e a l and e x p l a i n changes i n such f u n c t i o n s over time, and to base a f o r e c a s t of the f u t u r e r o l e of the 19 * c e n t r a l area on the p e r s p e c t i v e of f u n c t i o n a l  shifts."  R a t c l i f f conducted h i s i n v e s t i g a t i o n by u t i l i z i n g d i r e c t o r i e s t o determine  the f u n c t i o n performed  r e s i d e n t i a l l o c a t i o n i n the CBD from 1921 was  t o 1950.  a t f i v e year  at each non-  intervals,  The c a t e g o r i z a t i o n system t h a t he employed  t h a t s e t out i n the Madison C i t y d i r e c t o r y .  d a t a o n l y f o r ground  city  f l o o r l o c a t i o n s because  He  of h i s  compiled predominate  i n t e r e s t i n r e t a i l a c t i v i t i e s which are c o n c e n t r a t e d at street  level. "In u s i n g the c i t y d i r e c t o r i e s , R a t c l i f f found the  problem  of c l a s s i f i c a t i o n to be troublesome mainly  because  the d i r e c t o r i e s were not f u l l y d e s c r i p t i v e , nor were they 20 e n t i r e l y c o n s i s t e n t from year t o year."  For t h i s reason, a  broad f u n c t i o n a l c l a s s i f i c a t i o n system has been employed f o r the Gastown study, i n o r d e r to a v o i d dependence upon the  d i r e c t o r y c l a s s i f i c a t i o n system. used  The s p e c i f i c c a t e g o r i e s  (see Appendix C) were b a s i c a l l y  Weiss,  those proposed  and r e f e r r e d to e a r l i e r i n t h i s c h a p t e r .  c l a s s i f i c a t i o n was  by  A  new  added f o r vacant b u i l d i n g s w h i l e  use" and " q u a s i - p u b l i c " use were combined. b r o k e r s , and manufacturers'  sales o f f i c e s  Also,  "public  agents,  (that i s , c a t e -  g o r i e s which do not c a r r y s t o c k on t h e i r premises) were removed from the. " o f f i c e - t y p e use" c a t e g o r y , and w i t h "wholesale-type use" w h i l e a new for  combined  c a t e g o r y was  created  s t o r a g e and warehouse use i n c l u d e d by Weiss w i t h "whole-  s a l e - t y p e use."  The  f u n c t i o n a l c a t e g o r i e s employed are as  follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. In  R e t a i l - type Use O f f i c e - type Use, P a r k i n g Use, P u b l i c and Q u a s i - P u b l i c Use, Wholesale - type Use, I n d u s t r i a l - type Use, R e s i d e n t i a l Use, Storage and Warehouse Use, Vacant or Under-going Renovation. o r d e r to compile a comprehensive  l i s t of the  l o c a t i o n of b u s i n e s s e s w i t h i n the study a r e a , the author spent two days trict,  (July 18 and J u l y 20, 1970)  l i s t i n g the necessary i n f o r m a t i o n .  r e s s e d , t h i s i n f o r m a t i o n was  w a l k i n g the d i s As the study prog-  c o n s t a n t l y rechecked and  up-to-date, so t h a t the data u l t i m a t e l y u t i l i z e d up t o the week of September 28, 1970. a master  list  brought  i s correct  As w e l l as s e r v i n g as  to p r o v i d e guidance f o r the d i r e c t o r y  study,  this l i s t i n g 1970  a l s o s u p p l i e d the data f o r c o m p i l a t i o n of a  Gastown l a n d use map  (see Map  5).  The b u s i n e s s e s l o c a t e d i n the study area were determined  f o r each year from 1965  C i t y D i r e c t o r i e s of those y e a r s .  to 1969  from the Vancouver  T h i s i n f o r m a t i o n was  u t i l i z e d t o c h a r t l a n d use change i n the O l d Townsite d u r i n g the study p e r i o d as w e l l as to prepare a 1965 (see Map  map  4). Only ground  study.  l a n d use  f l o o r l o c a t i o n s were analyzed i n the  J u s t i f i c a t i o n of the d e c i s i o n t o l i m i t the i n v e s t i -  g a t i o n t o s t r e e t l e v e l l o c a t i o n s can be taken d i r e c t l y  from .  R a t c l i f f ' s statement t h a t i t was not a d e n i a l of the importance of upper f l o o r o f f i c e use i n c e n t r a l area a n a l y s i s . The s h i f t s i n o f f i c e use are s i g n i f i c a n t and deserve a t t e n t i o n . But t h i s study has been focused on the more i n t e n s i v e c e n t r a l l a n d uses, p a r t i c u l a r l y r e t a i l s e r v i c e s , i n o r d e r t o c l i n g most c l o s e l y , to the c u r r e n t concern o f p r o p e r t y owner, merchant, and tax c o l l e c tor. . 2 1  The data gathered d u r i n g . t h e d i r e c t o r y survey been t a b u l a t e d and graphed  i n o r d e r t o i s o l a t e and  determine  the f u n c t i o n a l changes t h a t have taken p l a c e i n Gastown. i n f o r m a t i o n was  then u t i l i z e d  has  This  t o i n f e r land use trends t h a t  w i l l develop i n the d i s t r i c t i n the near  future.  The  Nature of Business Change i n the Old Townsite:  1965  -  1970 22 Ground f l o o r land use  is illustrated  i n Map  i n the study area i n  Number Four.  The  year 1965  1965  has  been  s e l e c t e d as a "pre-Gastown" example because i t s u f f i c i e n t l y pre-dates the  " t u r n i n g p o i n t " as s e t out i n Chapter I I I t h a t  the l a n d use p a t t e r n can be c o n s i d e r e d other  to r e s u l t from f o r c e s  than those d i r e c t l y a t t r i b u t a b l e to the r e b i r t h of  Gastown. The  1965  s t r e e t l e v e l land use p a t t e r n  the presence of two existence  by  major f a c t o r s i n the Old Townsite--the  of f u n c t i o n a l obsolescence i n the b u i l d i n g s i n  the area and the  reflects  the presence of Vancouver's S k i d Road.  f a c t that a l a r g e number of the b u i l d i n g s had f u n c t i o n a l o b s o l e s c e n c e , many had  u s a b l e p r i o r to 1965  and,  Due  to  been s t r u c k  become completely  t h e r e f o r e , stood vacant.  un-  Other  b u i l d i n g s , p a r t i c u l a r l y those along Water S t r e e t , were occupied  by  f i r m s such as w h o l e s a l e r s and  t h a t r e q u i r e d very  low  rental rates.  the area were many s m a l l merchants who Road t r a d e , w h i l e other  p u b l i c warehouses,  Scattered catered  f r i n g e merchants and  throughout to the  discount  Skid stores  were spread along West Cordova. The  Gastown 1970  ground f l o o r land use map  c l e a r l y i n d i c a t e s the e x t e n s i v e  (Map  5)  changes t h a t have taken p l a c e  i n the f u n c t i o n a l - m i x of the d i s t r i c t .  A l a r g e number of  r e t a i l - t y p e establishments have l o c a t e d along Water S t r e e t •in the u n i t and hundred b l o c k s , as w e l l as around Maple Tree Square  (that i s , i n the E a s t Townsite).  have g e n e r a l l y r e p l a c e d "wholesale-type" type" e s t a b l i s h m e n t s . of  These and  retailers  "industrial-  At the same time, w i t h the  exception  the f o r c e d vacancy of the Stanley-New Fountain H o t e l  b u i l d i n g s , t h e r e has been.very l i t t l e the West Cordova area.  land use change i n  These changes are more  clearly  demonstrated i n T a b l e I I I . TABLE I I I CHANGES IN GROUND FLOOR LAND USE,  Category 1. 2. 3. 4. 5. 6. 7. 8. 9.  1965 Number of Ground Floor Locations  R e t a i l - t y p e Use O f f i c e - t y p e Use P a r k i n g Use P u b l i c and QuasiP u b l i c Use Wholesale-type Use I n d u s t r i a l - t y p e Use R e s i d e n t i a l Use Storage and Warehouse Use Vacant and Undergoing , Renovation Total  Source:  -  1970  1970 Number of Net Change Ground (Plus or Floor Minus L o c a t i o n s Mutations)  70 4 10  104 4 11  3 65 10 1  4 39 6  39  37  2  2  20 4  207  See Text, 105-110  1965  -  Percentage Change (1965 = Base)  + 34  + 49% static static  +  static - 40% - 40% static  +- 1  -  1 26 4 1 2  -  5%  static 3  +  2%  MAP 4 GROUND FLOOR LAND USE, OCTOBER 1965 R e t a i l - t y p e Use  P u b l i c and Quasi; p u b l i c Use  R e s i d e n t i a l Use  O f f i c e - t y p e Use  Wholesale-type Use  Storage o r Warehousetype Use  P a r k i n g Use  I n d u s t r i a l - t y p e Use  Source: Vancouver  C i t y D i r e c t o r y . Vancouver,  Vacant o r Undergoing Renovation B.C. D i r e c t o r i e s L t d . , 1965.  Re t a i l - t y p e  Use  Office-type  Use  Parking  Use Source: See t e x t , pp.  Residential  Wholesale-type  Industrial-type 105-106.  Use  Use  Use  Storage or Warehousetype Use Vacant or Undergoing Renovation  By u t i l i z i n g R a t c l i f f ' s method of " o b s e r v i n g -the c a t e g o r i e s showing 'plus mutations' and i n the  'minus mutations'  [study] p e r i o d , as w e l l as those remaining  'static',"  the essence of the b u s i n e s s changes t h a t have taken p l a c e i n Gastown can be i s o l a t e d . to 1970,  Table I I I shows t h a t , from  the number of ground f l o o r r e t a i l - t y p e  1965  locations  i n c r e a s e d by 49 p e r c e n t w h i l e w h o l e s a l e - t y p e and  industrial-  type l a n d use decreased by 40 p e r c e n t .  In a b s o l u t e numbers,  all  (that i s , they  other c a t e g o r i e s remained unchanged  remained " s t a t i c " ) .  However, d e t a i l e d examination of Maps .  Four and F i v e i s o l a t e s the f a c t t h a t , although the l a n d  use  of i n d i v i d u a l b u i l d i n g s has a l t e r e d over the f i v e year study p e r i o d , t h e i r p l a c e i n the f u n c t i o n a l c a t e g o r y has been taken by o t h e r s i n the a r e a . Two  ,  of the c a t e g o r i e s t h a t remained s t a t i c  deserve  f u r t h e r comment--vacant b u i l d i n g s  (category number 9 ) , and  parking, use  Although the number of  "Vacant"  (category number 8).  l o c a t i o n s decreased o n l y 5 p e r c e n t d u r i n g the study  p e r i o d , the p a t t e r n of l o c a t i o n of these s t r u c t u r e s changed a great deal.  Only e i g h t of the t h i r t y - n i n e l o c a t i o n s vacant  i n 1965 were s t i l l  unoccupied i n 1970.  A l s o , the o u t l o o k  f o r vacant b u i l d i n g s i s v a s t l y d i f f e r e n t i n 1970 f o r empty s t r u c t u r e s f i v e y e a r s e a r l i e r .  In 1965  than i t was i t was  d i f f i c u l t to f i n d r e n t e r s f o r many of the o b s o l e t e s t r u c t u r e s 24 i n . t h e area  w h i l e , i n 1970,  development p l a n s have been  announced or r e n o v a t i o n i s underway i n f i f t e e n of the  thirty  seven vacant ground f l o o r addresses. unoccupied  At the p r e s e n t  time,  l o c a t i o n s are c o n c e n t r a t e d i n the u n i t b l o c k of  •Water S t r e e t and around Maple Tree Square.  T h i s i s a tem-  porary s i t u a t i o n s i n c e many of these vacancies have r e s u l t e d from the s h o r t - t e r m e f f e c t s of f u n c t i o n a l s h i f t s from use' to  one  another. The  f a c t t h a t the p a r k i n g use category  remained  s t a t i c over the f i v e year p e r i o d i n a d d i t i o n to the t h a t no expansion area i s planned,  of p a r k i n g space i n Gastown or the  adjacent  w i l l have long term s i g n i f i c a n c e f o r the  r e h a b i l i t a t i o n of the Old Townsite. facilities  fact  are developed  As a d d i t i o n a l  retail  and r e s u l t i n i n c r e a s e d customer  t r a f f i c and as the area undergoes i n c r e a s i n g i n t e n s i t y of l a n d use, a s u b s t a n t i a l a d d i t i o n to the number of Gastown or a d j a c e n t area p a r k i n g spaces w i l l ' b e r e q u i r e d .  At  the  p r e s e n t time, only f o u r of the e l e v e n p a r k i n g l o t s i n Gastown are open to the p u b l i c and these c o n t a i n only 207 stalls  (see Map  a d d i t i o n a l 194  6).  parking  O n - s t r e e t p a r k i n g p r o v i d e s merely an  spaces.  There are s i x p a r k i n g l o t s  adjacent  to Gastown but the two  department s t o r e p a r k i n g s t r u c t u r e s  are p r e s e n t l y u t i l i z e d  to c a p a c i t y and  only 146  p a r k i n g spaces.  the remainder p r o v i d e  I f the p a r k i n g c a p a c i t y i n and  around Gastown i s not expanded i n the near f u t u r e , i t i s likely  t h a t the area's r e t a i l s a l e s volume w i l l e v e n t u a l l y  be r e s t r a i n e d because shoppers are not able to park where they can g a i n reasonable  access to the area.  P u b l i c Surface P a r k i n g L o t s ( h o u r l y r a t e s )  Numerals ( e g . , 99 ) i n d i c a t e number of p a r k i n g spaces i n l o t  P r i v a t e P a r k i n g L o t s ( r e s e r v e d space only)  Arrows ( e g . — • — O i n d i c a t e d i r e c t i o n of v e h i c u l a r t r a f f i c flow  Department Store Parking S t r u c t u r e s Source: See t e x t , pp. 109-112.  NUMBER OF PARKING LOTS AND PARKING CAPACITY OF GASTOWN AND ADJACENT AREA Number o f P a r k i n g L o t s Number o f P a r k i n g L o t s Located i n Gastown: P u b l i c Lots Reserved Lots Number o f P a r k i n g L o t s A d j a c e n t t o Gastown: P u b l i c L o t s ( i n c l u d i n g department store parking structures) Reserved L o t s  4 __7. 5 1  Total  6 17  P a r k i n g Spaces A v a i l a b l e f o r Gastown T r a f f i c : Number o f p u b l i c spaces i n Gastown L o t s Number o f spaces on s t r e e t (metered) Number o f spaces i n l o t s a d j a c e n t t o Gastown* Total  207 194 14 6 547  *Does n o t i n c l u d e 1163 p a r k i n g spaces parking structures. Source:  11  i n department s t o r e  See t e x t , p. H Q .  Although  the d i s c u s s i o n t o t h i s p o i n t has e s t a b l i s h  the f a c t t h a t e x t e n s i v e l a n d use changes have and a r e cont i n u i n g t o take p l a c e i n Gastown, the form o f the a n a l y s i s can be c r i t i z e d f o r two reasons.  Firstly,  the study has  f a i l e d t o p i n p o i n t the s p e c i f i c time p e r i o d i n which t h e changes began t o o c c u r .  In a d d i t i o n , i t i s e v i d e n t t h a t t h e  f u n c t i o n a l c a t e g o r i e s employed i n the study a r e too c o a r s e ,  as they do not s e p a r a t e the changes t h a t are  directly  a t t r i b u t a b l e t o the r e h a b i l i t a t i o n of Gastown from 'which are the r e s u l t of o t h e r The illustrates  those  forces.  information presented i n Figure V c l e a r l y  the f a c t t h a t these f u n c t i o n a l changes have 25  taken p l a c e o n l y s i n c e October  19 69.  T h i s graph has been  c o n s t r u c t e d by c a l c u l a t i n g the percentage  of t o t a l Gastown  ground f l o o r l o c a t i o n s a t t r i b u t a b l e t o each of the major functional categories. s t a b l e from 1965 dramatically type and  A l l c l a s s i f i c a t i o n s remained  t o 1969  but i n 1970  r e t a i l - t y p e use  rose  (from 34 p e r c e n t t o 50 percent) , w h i l e wholesaler-  i n d u s t r i a l - t y p e uses markedly decreased  p e r c e n t to 19 p e r c e n t and pectively) .  fairly  from  (from 3 2  5 percent to 3 percent,  res-  T h i s i n d i c a t e s t h a t , although Gastown gained a  g r e a t d e a l of p u b l i c i t y from the Community A r t s C o u n c i l Walk of September 1968,  i t was  not u n t i l more than one y e a r  later  t h a t merchants and o t h e r d e v e l o p e r s were a b l e t o c a p i t a l i z e on i t by moving i n t o the a r e a . Another t r e n d t h a t i s underscored  by the d a t a i n  F i g u r e V i s the i n c r e a s e i n the number of ground  floor  l o c a t i o n s t h a t has r e c e n t l y o c c u r r e d .  Even though t e n  s t r e e t l e v e l l o c a t i o n s were demolished  to make way  new  Canadian P a c i f i c Tele-communications  number of ground f l o o r premises to 204  i n 1970.  f o r the 26  building,  i n c r e a s e d from 187  the in  1966  T h i s has been the r e s u l t of p r e s s u r e c r e a t e d  FIGURE V PERCENTAGE D I S T R I B U T I O N OF GROUND FLOOR LAND U S E , 1965 - 1970  Total  R e t a i l - t y p e Use (Catagory N o . l ) Wholesale-type Vacant All  U s e ( C a t a g o r y No. 6)  or Undergoing  Other  Renovation  ( C a t a g o r y No. 9 )  Catagories  *.= D a t e o f " G a s t o w n R e v i s i t e d " Source: •  '  '  '  i  '  '  i  1  i  i  i  i - i i-i  i  i  i  i  i  i  i  i  i  i  •  Walk  See- t e x t , p p . 1 1 3 - 1 1 5 . i  i  i  i  i  i  i  i--r-i  i  i  i  i  i  i  i  i  i  i  i  i - i i  ;  [  i  i  i  i  i - . ,  r  i '  by the need of r e t a i l e r s to g a i n ground f l o o r l o c a t i o n s i n order  to a t t r a c t w a l k - i n  ' i n t e n s i t y of land use shop area. t i o n s and had  In order i n order  b u s i n e s s as w e l l as  the.increased.  t h a t i s c h a r a c t e r i s t i c of a s p e c i a l t y to c r e a t e a d d i t i o n a l ground f l o o r l o c a -  to make: b e t t e r use  of l a r g e areas t h a t  p r e v i o u s l y been u n d e r u t i l i z e d as wholesale or warehouse  space, l a n d owners have p a r t i t i o n e d a number of b u i l d i n g s i n Gastown. created  For example, an arcade c o n t a i n i n g  e i g h t shops  a t 30 8 Water S t r e e t from space t h a t had  been used f o r basement storage  previously  w h i l e f o u r s t o r e s were b u i l t  i n a renovated area on G o a l e r ' s Mews i n space t h a t p r e v i o u s l y been u n s u i t a b l e In order  was  f o r any  had  purpose whatsoever.  t o i s o l a t e the b u s i n e s s changes t h a t  have r e s u l t e d s o l e l y from the r e c e n t  r e h a b i l i t a t i o n of Gas-  town, i t i s necessary t o re-examine the f u n c t i o n a l components t h a t were i n c l u d e d i n the r e t a i l - u s e c a t e g o r y . c a t i o n i s too gross as, i n a d d i t i o n to the new businesses,  i t i n c l u d e s numerous r e t a i l and  This  classifi-  Gastown  personal  service  f i r m s which are n e i t h e r the r e s u l t o f , nor n e c e s s a r i l y comp a t i b l e with, group together grocery  the r e b i r t h of Gastown. boutiques and  s t o r e s and  growth of R-E-R  discount  activities  '..In o r d e r  It is i l l o g i c a l  French r e s t a u r a n t s  with  o u t l e t s when a n a l y z i n g i n the  to  corner the  district.  t o overcome t h i s problem, i t was  necessary  to develop a sub-category of the r e t a i l - t y p e c l a s s i f i c a t i o n '  which c o n t a i n e d only those f i r m s a p p r o p r i a t e t o a r e h a b i l i t a t e d Gastown.  Businesses  i n c l u d e d i n t h i s new c l a s s i f i c a t i o n  were d e s i g n a t e d as "Gastown-compatible" and s h a l l be i d e n t i f i e d as such throughout compatible  the remainder  o f the t h e s i s .  Gastown-  f i r m s are considered, t o be those which a r e s u i t a b l e  f o r a d i s t r i c t w i t h c h a r a c t e r i s t i c s such as those d e s c r i b e d under the "The Appeal  of Gastown" i n Chapter  b u s i n e s s e s which:  III.  That i s ,  #  - i d e n t i f y w i t h the c u l t u r a l and h i s t o r i c charm of the area; - u t i l i z e the d i s t i n c t i v e a r c h i t e c t u r e o f the area i n unique and o r i g i n a l ways; - add t o the v a r i e t y and d i v e r s i t y o f the d i s t r i c t ; - handle unique h a n d - c r a f t e d items and emphasize p e r s o n a l s e r v i c e and l e i s u r e l y browsing; and - a r e c o n s i d e r e d t o be n o v e l , y e t i n the mainstream o f contemporary l i f e s t y l e s . The major c r i t i c i s m t h a t can be made o f t h i s new c l a s s i f i c a t i o n i s t h a t i t i s e s s e n t i a l l y based judgment.  Although  i t i s reasonable  upon a v a l u e  t o assume t h a t the  m a j o r i t y o f f i r m s d e s i g n a t e d as being Gastown-compatible would be a c c e p t a b l e to i n d i v i d u a l s w i t h some knowledge of the a r e a , i t i s e v i d e n t t h a t t h e r e w i l l always be a c e r t a i n number of b u s i n e s s e s i n a grey area which some would i n c l u d e 27 i n . t h i s category and o t h e r s would not. attempted  The author has  t o overcome t h i s problem by a c q u i r i n g as much  i n f o r m a t i o n as p o s s i b l e about those f i r m s f o r which the d e c i s i o n was i n doubt.  In those cases where the d e c i s i o n t o  i n c l u d e a s p e c i f i c b u s i n e s s i n the Gastown-compatible gory c o u l d not be f i r m l y j u s t i f i e d ,  the b u s i n e s s was  cateexcluded.  The l o c a t i o n o f those f i r m s which have been i n c l u d e d i n the Gastown-compatible  category as w e l l as the l o c a t i o n of  Gastown-compatible p r o j e c t s which have been announced Seven.  officially  o r are p r e s e n t l y underway i s i l l u s t r a t e d  i n Map  T h i s e x h i b i t c l e a r l y demonstrates the c l u s t e r i n g o f  these f i r m s along Water S t r e e t and around Maple Tree  Square  (that i s , i n the E a s t Townsite) and the minimal development t h a t has o c c u r r e d a l o n g West Cordova.  Although  this  map  i n c l u d e s both ground f l o o r and o t h e r l o c a t i o n s w i t h i n s p e c i f i c b u i l d i n g s , i t must be emphasized  t h a t the m a j o r i t y of t h i s  development  I t i s , therefore, evident  i s at street l e v e l .  t h a t , as the growth c o n t i n u e s , the a v a i l a b l e ground  level  space w i l l be used up and w i l l cause r e n t a l r a t e s to i n c r e a s e as i t becomes a s c a r c e commodity. The t o t a l f l o o r area o c c u p i e d by  Gastown-compatible  b u s i n e s s e s i s 145,250 square f e e t , of which 112,150 i s l o c a t e d on the ground f l o o r .  N i n e t y - e i g h t s e p a r a t e shops i n  s i x t y - f i v e d i f f e r e n t premises'have been d e s i g n a t e d as Gastown28 compatible.  The f u n c t i o n a l d i s t r i b u t i o n o f these  businesses  i s s e t out i n Table VI which u t i l i z e s and a d a p t a t i o n .-of Weiss' f u n c t i o n a l c l a s s i f i c a t i o n system to c a t e g o r i z e the b u s i n e s s e s .  MAP 7 LOCATION OF GASTOWN-COMPATIBLE BUSINESSES,  ^3  SEPTEMBER 1970  Gastown-Compatible Businesses More Than Two Years O l d  Gastown-Compatible B u s i n e s s e s L e s s Than Two Years O l d  P r o j e c t s Announced o r Renovation i n P r o g r e s s Source: See t e x t , pp. 115-117.  MAP 7 (Continued) Explanation  o f Code  Gastown-Compatible Businesses more than Two Years O l d Code Number 1 2 3  Business Name The Y a r d s t i c k New Look I n t e r i o r s The E x p o s i t i o n Gallery  Address  Age  350 West Cordova 316 West Cordova  17 10  151 Water S t .  years years  3 years  Gastown-Compatible P r o j e c t s Announced o r i n Progress Code Number 4 5 6 7 8  10 11 12 13  14  Address 21 Water 1 Alexander  Nature o f Name o f P r o j e c t  "300 fondue s e a t r e s t a u r a n t , complete r e n o v a t i o n o f f o u r s t o r e y b u i l d i n g t o produce deluxe o f f i c e space, Gassy J a c k ' s : 225 s e a t t h e a t r e 7 Alexander restaurant, 308 Water La Crepe Bretonne: French restaurant, e x t e n s i o n t o Woodward's p a r k i n g 130-13 6 Water garage; t e n t a t i v e l y planned to p r o v i d e approximately 30 new ground f l o o r shops, 68 Water 300 seat " f a m i l y s t y l e , " low priced restaurant-entertainment complex, 8 Water Danish Designs: home a c c e s s o r i e s 3 Gaoler s Mews - q u a l i t y p o t t e r y and c r a f t s shop, Gastown Omelette and C i d e r Shoppe 53 Powell n o v e l t y restaurant,, 21-53 W. Cordova - r e n o v a t i o n o f Stanley-New Fount a i n H o t e l s by Gastown Residents Association: w i l l provide a minimum of t e n remodelled and r e f u r b i s h e d ground f l o o r shops, l e Coq Au V i n e t La Crepe Nor212 C a r r a l l mandie: French r e s t a u r a n t . 1  DISTRIBUTION OF GASTOWN-COMPATIBLE BUSINESSES BY TYPE A.  Retail-Trade Establishments Type  2. 3.  4. 5. 6.  Number  Eating, drinking places a. Restaurants 4 b. C o f f e e Houses (with, entertainment) 2 General Merchandise S t o r e s a. Import S t o r e s 3 Apparel, Accessories Stores " . • a. Shoe Stores 2 b. Men's C l o t h i n g and F u r n i s h i n g Stores 1 c. Women's C l o t h i n g , S p e c i a l t y S t o r e s 11 d. Men's-Women's C l o t h i n g S t o r e s 1 F u r n i t u r e , Home F u r n i s h i n g s S t o r e s a. F u r n i t u r e Stores 5 b. Home Accessory Stores 1 Antique Automobile P a r t s 1 Other R e t a i l Stores a. Jewelry S t o r e s 1 b. F a b r i c , Drapery Stores 2 c. Boutique G i f t s , N o v e l t y , Souvenir S t o r e s l O d'. Music S t o r e s 1 e. Leather Goods Stores * 3 f . Antique and Second Hand Stores 30 g. A r t G a l l e r i e s 4 h. Contemporary P r i n t S t o r e s 1 i. P o t t e r y , Hand C r a f t e d A r t Stores 2 j. A r t i s t , Sculpture Studios ( A r t i s t on premises) 4 .. k.' E t h n i c S t o r e s (e.g., I n d i a n Imports) 2 Total  B.  91  Establishments O f f e r i n g Personal Services P r i m a r i l y t o Consumers a. Beauty Shops b. Photographic S t u d i o s . c. Dressmakers d. I n t e r i o r Decorating Service Total  C.  Amusement and R e c r e a t i o n "  a.  Cabarets, Night  Source:  See t e x t , p.  117.  1 1 1 .2 5  Establishments Clubs  T o t a l Number o f Gastown-Compatible  .  Firms  I m p l i c a t i o n f o r the F u t u r e The speed a t which the f u n c t i o n a l changes have taken p l a c e i n Gastown has been very d r a m a t i c . relatively  In the  s h o r t space of twelve months s i n c e Gastown-  compatible b u s i n e s s e s f i r s t began moving i n t o the area i n l a r g e numbers, these f i r m s have become a major component of the business-mix of the d i s t r i c t . q u a r t e r of a l l ground  They p r e s e n t l y occupy  f l o o r space i n the d i s t r i c t  and  one-  the  c o n t i n u e d i n c r e a s e of t h i s p r o p o r t i o n shows no s i g n s of a b a t i n g d u r i n g the f o r s e e a b l e f u t u r e .  I f no p r o j e c t s other  than those which have a l r e a d y been o f f i c i a l l y announced Map  7) are completed  d u r i n g the next y e a r , the amount of  f l o o r space devoted t o Gastown-compatible still  i n c r e a s e by 75 p e r c e n t .  businesses w i l l  (see  then occupy  businesses w i l l  Gastown-compatible  R-E-R  50 p e r c e n t of a l l ground  floor  29 area i n Gastown. The s p e c i f i c d i r e c t i o n t h a t the development of Gastown w i l l  take a f t e r these p r o j e c t s are completed i s  30 uncertain.  The  supply of ground  f l o o r space i n the d i s -  t r i c t i s l i m i t e d , y e t the demand f o r these l o c a t i o n s  will  i n c r e a s e as the c u s t o m e r - a t t r a c t i o n power of the area gains strength..  As a r e s u l t , the few vacant b u i l d i n g s , w i t h the  p o s s i b l e e x c e p t i o n of those on West Cordova, ing  and the  wholesale l o c a t i o n s i n t h e E a s t Townsite, w i l l  o c c u p i e d by r e t a i l  firms.  remain-  soon  be  In a d d i t i o n , as b u s i n e s s e s compete  for  the s c a r c e resource  t h a t s t r e e t l e v e l space has  r e n t a l r a t e s , which have i n c r e a s e d •two y e a r s , w i l l  soar even  sharply during  become,  the  past  higher. ^" 3  Once the a v a i l a b l e ground f l o o r space i n the Townsite i s f u l l y  occupied, the d i r e c t i o n of the  development of Gastown w i l l be determined by forces.  One  will  create pressure  East  future  two d i f f e r e n t  for v e r t i c a l  development  as some b u s i n e s s e s w i l l d e s i r e to l o c a t e i n the h e a r t  of  Gastown so s t r o n g l y t h a t they w i l l be w i l l i n g to occupy ground f l o o r l o c a t i o n s . for  The  other  force w i l l  create  an i n c r e a s e i n the s i z e of the developed area  so  non-  pressure that  a d d i t i o n a l ground f l o o r l o c a t i o n s can be made a v a i l a b l e to Gastown-compatible  firms.  During the e a r l y stages of the v e r t i c a l ment of Gastown, i t i s l i k e l y of the new  t h a t the f u n c t i o n a l nature  b u s i n e s s e s w i l l be s u b s t a n t i a l l y d i f f e r e n t from  t h a t of firms t h a t have a l r e a d y The  develop-  l o c a t e d i n the  district.  f i r s t b u s i n e s s e s to l o c a t e above s t r e e t l e v e l w i l l  those t h a t do not need to depend upon " d r o p - i n " t r a f f i c for sales.  This w i l l  of'.businesses—established ses, r e s t a u r a n t s personal  and  or  include four general  f i r m s , very  n i g h t c l u b s , and  s e r v i c e establishments.  "browsing" types  s p e c i a l i z e d businesc e r t a i n types o f  Firms t h a t have  e s t a b l i s h e d t h e i r r e p u t a t i o n at other  be  l o c a t i o n s and  already specialty  s t o r e s which are the s o l e Vancouver o u t l e t f o r a unique type  or brand o f merchandise t o search them out;  can depend upon thexr c l i e n t e l e  thus, they do not r e q u i r e ground f l o o r  l o c a t i o n s . 'Entertainment and r e s t a u r a n t  establishments  w i l l move i n t o the area i n order t o c a p i t a l i z e on the p u b l i c i t y generated by Gastown, and they w i l l a t "the  f o c a l p o i n t o f the development.  need, nor can they u s u a l l y therefore  These firms do not  afford, street level  locations;  they w i l l move into, the upper s t o r i e s o f b u i l d i n g s  i n the E a s t Townsite. such as h a i r d r e s s i n g decorating  a l s o wish t o l o c a t e  Specialty personal service o u t l e t s , s a l o n s and contemporary  firms, also w i l l  interior  d e s i r e to b e n e f i t from the popu-  l a r i t y o f Gastown but cannot a f f o r d ground f l o o r r e n t a l r a t e s , so they, too, w i l l choose upper l e v e l  locations.  Two a d d i t i o n a l f u n c t i o n a l c a t e g o r i e s included  which were not  i n the R-E-R d e f i n i t i o n w i l l a l s o i n c r e a s e  tance i n Gastown i n the f u t u r e floor locations.  i n impor-  and w i l l move i n t o non-ground  The charm and p r e s t i g e  of the d i s t r i c t  w i l l draw young p r o f e s s i o n a l people, such as a r c h i t e c t s and lawyers, i n t o Gastown l o c a t i o n s .  T h i s group w i l l c r e a t e a  s i z a b l e demand f o r o f f i c e space w i t h the r e s u l t t h a t many o f the upper s t o r i e s w i l l be converted i n t o p r o f e s s i o n a l  office  33  space.  Young people w i l l  a l s o wish t o move i n t o Gastown i n  order t o be "where the a c t i o n i s " so t h a t many o f the o l d .hotels  and rooming houses w i l l be converted i n t o 34 apartments and r e s i d e n c e s .  prestige  -As the demand f o r h i g h t r a f f i c l o c a t i o n s  increases  i n the O l d Townsite, i t i s i n e v i t a b l e t h a t one or more developers w i l l move t o f i l l  the demand by c o n v e r t i n g a  whole b u i l d i n g , o r group of b u i l d i n g s , i n t o boutique and s p e c i a l t y shop space. ment w i l l  utilize  It is likely  t h a t t h i s type of develop-  s i m i l a r techniques t o those employed i n the  V i l l a g e F a i r i n V i c t o r i a ' s B a s t i o n Square or the Cannery i n San F r a n c i s c o . I f the demand f o r ground f l o o r premises i s s u f f i - ' c i e n t t o cause Gastown can  t o expand i n s i z e , the new  move i n t h r e e d i r e c t i o n s .  development  The area can i n c r e a s e i t s  l e n g t h by e i t h e r expanding eastward along Alexander and Powell S t r e e t s o r , to' the west, i t Can move i n t o the 300 b l o c k of Water S t r e e t  (the West T o w n s i t e ) .  I t can i n c r e a s e i n depth  by encompassing West Cordova S t r e e t on e i t h e r s i d e of the Woodward's department s t o r e .  However,.there are major  impediments t o each of these moves; c o n s e q u e n t l y , the e v e n t u a l shape taken by Gastown w i l l be determined by f a c t o r s beyond the  c o n t r o l of the area's merchants and l a n d d e v e l o p e r s . Expansion i n t o the 'West Townsite would be the most  n a t u r a l development f o r Gastown reasons:. 1. _ ' 2.  t o take f o r a number o f '  t r a f f i c flows and the alignment o f s t r e e t s channel shoppers toward the west, the West Townsite c o n t a i n s some o f the most d i s t i n c t i v e and unique b u i l d i n g s i n Gastown,  3. a number of Gastown-compatible b u s i n e s s e s have -'. a l r e a d y l o c a t e d i n the 300 block of Water S t r e e t , and 4. comprehensive development along the l e n g t h of Water S t r e e t from Maple Tree Square t o Cordova S t r e e t would p r o v i d e a n a t u r a l connector to the CBD and P r o j e c t 20 0. However, two  very d i f f i c u l t o b s t r u c t i o n s  must be  overcome  i n order to achieve t h i s g o a l . The  p l a n s f o r P r o j e c t 200  i n c l u d e a c o n n e c t i o n to  the Woodward's department s t o r e t h a t would run hundred b l o c k out,  of Water S t r e e t .  the d e m o l i t i o n  through  the  I f these p l a n s are c a r r i e d  of the h i s t o r i c b u i l d i n g s i n t h i s  block  would c u t o f f the East Townsite from the western s e c t i o n . Under these c i r c u m s t a n c e s , i t i s u n l i k e l y t h a t Gastown would develop to encompass the West Townsite. avoided, i t w i l l  If t h i s i s to  be necessary f o r Gastown i n t e r e s t groups t o  convince the e x e c u t i v e  of P r o j e c t 200  Properties  Limited  t h a t i t i s to t h e i r b e n e f i t t o r e t a i n the h i s t o r i c in this  be  buildings  area. The  other obstacle  t o the development of the West  Townsite concerns the f a c t t h a t a number of the owners of  j  major b u i l d i n g s i n the a r e a are not i n favour of changing  the'  35  occupancy of thexr b u i l d i n g s . l a r g e wholesale and t h e i r own  apparel  b u i l d i n g s and  These owners are  manufacturing f i r m s who  generally occupy  do not wish t o i n c u r the expense or 36 customer d i s r u p t i o n of moving to another l o c a t i o n . It is  l i k e l y t h a t these f i r m s w i l l e v e n t u a l l y a l l o w  Gastown-  compatible b u s i n e s s e s t o occupy a t l e a s t the ground f l o o r •premises when they r e a l i z e the h i g h r e n t a l  income t h a t i s  j  b e i n g foregone. The next most l o g i c a l d i r e c t i o n Gastown  f o r the growth of  i s toward the south, to encompass West Cordova,  because: 1. 2. 3.  t h i s a r e a , t o o , c o n t a i n s some very d i s t i n c t i v e , old buildings, development i s a l r e a d y moving along C a r r a l l S t r e e t toward Cordova, and the a d d i t i o n o f the 300 b l o c k West Cordova would i n c r e a s e the depth of Gastown which would be l o g i c a l s i n c e i t would serve t o form a compact square and a v o i d the problems c r e a t e d by a l o n g , narrow a r e a , w i t h lengthy w a l k i n g d i s t a n c e s .  The problems a s s o c i a t e d w i t h the development of West Cordova S t r e e t are even more imposing than those i n the West Townsite. Located on t h i s s t r e e t  are two major r e t a i l e r s which i  are  not compatible w i t h Gastown-type b u s i n e s s e s and which do  not  p l a n to v a c a t e t h e . a r e a .  The Army and Navy department.  s t o r e annex i s l o c a t e d d i r e c t l y a c r o s s the s t r e e t Stanley-New F o u n t a i n H o t e l b u i l d i n g s .  from the  This firm i s a  " c l e a r a n c e d i s c o u n t e r , " which c a t e r s t o an e n t i r e l y  different  segment o f the p o p u l a t i o n from Gastown b u s i n e s s e s .  It i s  g e n e r a l l y b e l i e v e d t h a t t h i s s t o r e would "cheapen"  Gastown's 37 image i f i t became a s s o c i a t e d w i t h the O l d Townsite.  The Woodward's department s t o r e and p a r k i n g garage occupy major p o r t i o n s o f both s i d e s o f the hundred b l o c k West Cordova. the  A l t h o u g h t h i s s t o r e c e r t a i n l y would not harm  image of Gastown i f i t were encompassed  by the develop-  ment, the g r e a t mass o f the two b u i l d i n g s a c t as a p h y s i c a l b a r r i e r to customer t r a f f i c  flows a l o n g the s t r e e t .  The  a t t r a c t i o n o f b u s i n e s s e s i n the 300 b l o c k of West Cordova i s e f f e c t i v e l y c u t o f f from those i n the u n i t b l o c k of the same street.  I t i s d i f f i c u l t to c o n c e i v e o f any a c t i o n t h a t could'  be taken to overcome t h i s  problem.  One o t h e r . f a c t o r which would h i n d e r the development of  West Cordova S t r e e t as an i n t e g r a l p a r t of Gastown i s the  u n s u i t a b l e p h y s i c a l c h a r a c t e r i s t i c s o f the s t r e e t Vehicular t r a f f i c the  itself.  volume i s heavy on West Cordova, so that  h e c t i c nature o f t h i s movement would not be compatible  w i t h the l e i s u r e l y pace of a h i s t o r i c d i s t r i c t .  A l s o , Cordova  S t r e e t i s wider than the o t h e r s t r e e t s i n the Old Townsite so  t h a t t h i s f a c t o r , t o o , would c r e a t e a b a r r i e r t o the  c i r c u l a t i o n o f shoppers and browsers. There i s one a l t e r n a t i v e t h a t may  be u t i l i z e d as a' \  p a r t i a l s o l u t i o n t o the problems a s s o c i a t e d w i t h Gastown's expansion onto Cordova S t r e e t .  ;  I f the premises on the n o r t h A  s i d e of the s t r e e t are c o n s t r u c t e d so t h a t they f a c e onto and 38 r e l a t e to the m a l l planned f o r Trounce A l l e y  r a t h e r than  Cordova S t r e e t , Gastown-compatible b u s i n e s s e s may prosper i n these l o c a t i o n s .  be a b l e t o . / /  Eastward, a l o n g Alexander  and Powell S t r e e t s , i s  the f i n a l d i r e c t i o n i n which Gastown can expand.  This, i s  the l e a s t s u i t a b l e of the t h r e e a l t e r n a t i v e s because the b u i l d i n g s l o c a t e d t h e r e are g e n e r a l l y more b l i g h t e d and  less  s u i t a b l e f o r r e n o v a t i o n than those i n the other a r e a s .  Also  .if t h i s t r a c t i s developed,  i t w i l l create t r a f f i c  problems t h a t would be d i f f i c u l t  flow  t o overcome.. T h i s  district  i s not as r e a d i l y a c c e s s i b l e as the o t h e r s and i t would r e q u i r e a f o u r or f i v e b l o c k walk f o r most shoppers  to reach  the c e n t r e of the a r e a . The  —  ~"  f i n a l . i m p l i c a t i o n f o r Gastown's f u t u r e t h a t  can be i n f e r r e d from the d a t a p r o v i d e d i n the a n a l y s i s , concerns  the type of b u s i n e s s e s t h a t w i l l  l o c a t e i n the area d u r i n g the next few y e a r s . the business-mix  functional  ;  By  comparing  p r e s e n t l y i n e x i s t e n c e i n Gastown  VI) t o s i m i l a r data f o r h i s t o r i c d i s t r i c t s  likely  (Table  (such as the  Vieux C a r r e or those of San F r a n c i s c o ) t h a t have a l r e a d y been developed  and are o p e r a t i n g s u c c e s s f u l l y , i t would be  p o s s i b l e to i s o l a t e those types which are l i k e l y i n the Old Townsite, developed  to  succeed  as w e l l as those which have been  to c a p a c i t y .  For example, i t i s r e a s o n a b l e  to  assume t h a t t h e r e i s not s u f f i c i e n t b u s i n e s s t o support a d d i t i o n a l import  s t o r e s , a n t i q u e shops, f u r n i t u r e  or women's wear boutiques  i n Gastown.  stores,  Business c a t e g o r i e s  which have been s u c c e s s f u l i n o t h e r h i s t o r i c d i s t r i c t s have not been developed  but  i n Gastown i n c l u d e book s t o r e s , i c e  cream p a r l o u r s , q u a l i t y toy shops, cheese and gourmet shops  i  haute c o u t u r e s a l o n s , custom  gunsmiths, e t h n i c  jewellry salons,  s t o r e s , candy  Canadian a r t p r i n t shops, beer  gardens, and high q u a l i t y , imported c l o t h i n g  stores.  shops,  Footnotes:  Chapter IV  T. French, "Gassy Jack Approves," P r o v i n c e , June 4, 1970, p. 31.  The Vancouver  2 These f l o o r space f i g u r e s have been e x t r a p o l a t e d from the d a t a r e p o r t e d f o r "Sub Area 16" Vancouver C i t y P l a n n i n g Department, Land Use: Downtown Vancouver, 1970, Vancouver: C i t y P l a n n i n g Department, 1970. T h i s study, which was completed i n February, r e p r e s e n t s the s o l e r e a d i l y a v a i l a b l e source of land use data i n Gastown. I t i s r e a s o n a b l y a c c u r a t e , although i t i s noted i n the r e p o r t t h a t complete f l o o r space data i s not a v a i l a b l e f o r r e s i d e n t i a l , h o t e l , rooming house, and motion p i c t u r e t h e a t r e c a t e g o r i e s . A r e p r e s e n t a t i v e of the P l a n n i n g Department s t a t e d t h a t " d i f f i c u l t i e s i n the data c o l l e c t i o n methods may have c r e a t e d i n a c c u r a c i e s i n the r e p o r t e d f i g u r e s of up t o , but no more than, 10%. " ^The study area c o n t a i n s 23.9 acres which amounts t o o n l y 1.8 p e r c e n t of the t o t a l l a n d area i n the "downtown p e n i n s u l a " as d e f i n e d i n - t h e P l a n n i n g Department's 1970 land use- survey. 4  For a complete l i s t i n g of the f l o o r space as o f February 1970 by s p e c i f i c b u s i n e s s - t y p e and g e n e r a l c a t e g o r y , see Vancouver C i t y P l a n n i n g Department, Land Use: Downtown Vancouver, 1970. ^S. F. Weiss, The C e n t r a l Business D i s t r i c t i n Transition: M e t h o d o l o g i c a l Approaches to CBD A n a l y s i s and F o r e c a s t i n g F u t u r e Space Requirements, C i t y . a n d R e g i o n a l P l a n n i n g S t u d i e s Research Paper No. 1, Chapel H i l l , N.C.: U n i v e r s i t y o f North C a r o l i n a , 1957. ^ I b i d . , p. 7. 7  Ibid.  8  R. H. Haig, "Major Economic F a c t o r s i n M e t r o p o l i t a n Growth and Arrangement," R e g i o n a l Survey o f New York and I t s E n v i r o n s , V o l . I, New York: 1927 p. 37, as c i t e d i n Weiss, ,Op. C i t . , p. 16. Weiss, Op. C i t . , p. 16.  L. Smith, "Space f o r the CBD' s F u n c t i o n s , " J o u r n a l of the American I n s t i t u t e of P l a n n i n g , V o l . 27 (February .1961) , p. 36. •  ^  *.  •'  ^"Hjeiss c i t e s c l a s s i f i c a t i o n systems developed by A l d e r s o n and S e s s i o n s (1951), M i t c h e l l and Rapkin (1954), R a n n e l l s (1956), and Tucker (1956). • 12 Weiss, Op. C i t . , p.  24.  I b i d . , p. 24-26. 14 I b i d . , pp. 25-26. 1 3  .  '  ^ F o r an example o f f u n c t i o n a l - t y p e a n a l y s i s a p p l i e d t o h i s t o r i c d i s t r i c t study see Bureau of Governmental Research, P l a n and Program f o r the P r e s e r v a t i o n of the Vieux C a r r e , New O r l e a n s : Bureau of Governmental Research, 1968. ^ W e i s s , Op. C i t . , pp. 17-21 i d e n t i f i e d t h r e e methods t o conduct f u n c t i o n a l a n a l y s e s d i r e c t o r y , hard c o r e , and space use. 17 R. U. R a t c l i f f , The Madison C e n t r a l Business A r e a , A Case Study o f F u n c t i o n a l Change, W i s c o n s i n Commerce Papers, V o l . I, No. 5. Madison: Bureau o f Business Research and S e r v i c e , U n i v e r s i t y of W i s c o n s i n , 1953. Because the o r i g i n a l source document was not a v a i l a b l e , the author depended upon d e s c r i p t i o n s o f the methodology g i v e n i n secondary sources (Weiss, Op. Cit.., p. 17, and J . R a n n e l l s , "Approaches t o A n a l y s i s , " J o u r n a l of the American I n s t i t u t e of P l a n n e r s , V o l . 27, (February 1961), p. 20) as w e l l as p e r s o n a l telephone d i s c u s s i o n s w i t h Dr. R a t c l i f f . 18 Weiss, Op.  C i t . , p.- 17.  19 R a t c l i f f , Op. C i t . , p. 8 as c i t e d i n I b i d . 20  1  Weiss, Op. C i t . , p.  8.  21 R a t c l i f f , Op. C i t . , p. 15 as c i t e d  in Ibid.  22 The B.C. D i r e c t o r i e s L i m i t e d i s s u e s the Vancouver C i t y D i r e c t o r y i n October each year so t h a t , t a k i n g i n t o account the time r e q u i r e d f o r d a t a c o l l e c t i o n and p r i n t i n g , i t i s l i k e l y t h a t the i n f o r m a t i o n i s up-to-date to the month of June. -  Weiss, Op.  C i t . , p.  17.  24 K.  F r a s e r , Boultbee Sweet R e a l t y L t d . ,  •with the w r i t e r , October 2nd,  . Interview  1970.  25 That i s , the changes have o c c u r r e d s i n c e the Vancouver C i t y D i r e c t o r y was i s s u e d . 26 The Canadian P a c i f i c Telecommunications b u i l d i n g i s the f i r s t b u i l d i n g i n the P r o j e c t 200 complex. 27 For example, the d e c i s i o n was made t o exclude two beer p a r l o u r s t h a t have been r e j u v i n a t e d and two r e s t a u r a n t s t h a t do not c a t e r t o the s k i d road a r e a . The pubs were not i n c l u d e d because the h o t e l s of which they are a p a r t are s t i l l v i r t u a l l y run as " f l o p houses" w h i l e t h e r e i s nothing unique about the r e s t a u r a n t s which would be d i f f e r e n t from other downtown c o f f e e shops. 28 . The number of separate shops exceeds the number o f premises because some merchants share l o c a t i o n s . For example, the F l e a Market accommodates twenty-two d i f f e r e n t merchants w h i l e the Gastown emporium c o n t a i n s s i x . 29 Completion of the o f f i c i a l l y announced p r o j e c t s w i l l i n c r e a s e the p r o p o r t i o n of ground f l o o r l o c a t i o n s t o the 50 p e r c e n t l e v e l o n l y i f the f l o o r area i n a l l planned developments are occupied o n l y by Gastown-compatible f i r m s . The nature of the b u s i n e s s e s t h a t w i l l occupy the S t a n l e y New F o u n t a i n development (number 13, Map 7) i s u n c e r t a i n because these s t r u c t u r e s r e p r e s e n t the meeting p l a c e of two opposed f o r c e s . The l o c a t i o n of t h i s development on West Codrdova i n an area t h a t has not been a p a r t of Gastown's r e b i r t h and the p r o x i m i t y of the Army and Navy s t o r e w i l l tend to a t t r a c t t r a d i t i o n a l merchants who c a r r y stocks of the d i s c o u n t and shopping goods v a r i e t y . At the same time, the planned development by the C i t y of the Blood A l l e y - T r o u n c e A l l e y p e d e s t r i a n m a l l behind the S t a n l e y and New F o u n t a i n H o t e l b u i l d i n g s w i l l e x e r t p r e s s u r e on these b u s i n e s s e s to t u r n away from the West Cordova f r o n t s t r e e t i n order to a t t r a c t the Gastown t r a f f i c t h a t w i l l develop i n the m a l l . 1969  30 Because of the u n c e r t a i n t y surrounding the plans f o r P r o j e c t 200, i t has been assumed d u r i n g t h i s p a r t of the d i s c u s s i o n t h a t t h i s development w i l l not go ahead i n the 100 b l o c k s of Water and West Cordova S t r e e t s . It i s , t h e r e f o r e , not necessary t o c o n s i d e r the i m p l i c a t i o n s of a s p l i t Gastown development.  For a more complete d i s c u s s i o n of r e n t a l r a t e s , see Chapters VI and V I I . 32 Examples of v e r y s p e c i a l i z e d b u s i n e s s e s would be those t h a t have an e x c l u s i v e Vancouver f r a n c h i s e f o r a part i c u l a r brand of expensive stereophonic equipment or those which c a t e r t o e t h n i c p o p u l a t i o n s . 33 The o f f i c e space has 75 1 - 313  F i r s t conversions of upper s t o r i e s i n t o a l r e a d y s t a r t e d a t the f o l l o w i n g l o c a t i o n s : Alexander: a r c h i t e c t , lav; f i r m ; Alexander; real estate, architect; Water: i n s u r a n c e , commercial d e s i g n e r .  34 The r e m o d e l l i n g of h o t e l s and rooming houses i n t o h i g h e r q u a l i t y r e s i d e n t i a l use has a l s o a l r e a d y commenced. Luxury apartments have been b u i l t above the L i q u o r C o n t r o l Board Store a t 214 C a r r a l l and a student r e s i d e n c e has been e s t a b l i s h e d above the s t o r e s a t 6 Water S t r e e t (the Alhambra Residences). 35 S. Frew, Frew E n t e r p r i s e s L i m i t e d , w i t h the w r i t e r , August 14th, 1970.  Interview  3  6 ' Among the f i r m s , which do not p l a n to v a c a t e t h e i r b u i l d i n g s are: J . L e c k i e Co. L t d . (220 Cambie), Frew B r o t h e r s L t d . (403 West Cordova), and Gault B r o t h e r s L t d . (361 Water). 37 I t i s i r o n i c t h a t the Army and Navy s t o r e cannot be i n c l u d e d i n Gastown s i n c e the f i r m o c c u p i e s a b u i l d i n g (the Dunn-Miller Block) which i s a p a r t i c u l a r l y f i n e example of the a r c h i t e c t u r e of the 1880's. 38 18,  1970,  The Vancouver Sun, p. 11.  "Gastown M a l l Planned," August  CHAPTER V  RETAIL SALES VOLUME AND CUSTOMER ATTRACTION IN GASTOWN  In the f o u r t h Chapter, p h y s i c a l trends i n Gastown were i s o l a t e d and examined i n order t o determine the f u n c t i o n a l components o f the d i s t r i c t .  This information  business-mix w i l l now be u t i l i z e d economic f a c t o r s i n the d i s t r i c t . the g e n e r a l  t o guide a n a l y s i s o f the Chapter V w i l l  investigate  r e t a i l s a l e s a t t r a c t i o n of the O l d Townsite i n  order t o estimate c u r r e n t The  about the  and f u t u r e s a l e s volume o f the area.  two f o l l o w i n g chapters w i l l e v a l u a t e f a c t o r s r e l a t e d t o  commercial and r e a l e s t a t e investment i n the O l d Townsite. Analysis  o f R e t a i l Sales A t t r a c t i o n and Daytime  Population  i n Urban Areas  R e t a i l s a l e s volume s t a t i s t i c s  <are widely  as i n d i c a t o r s of the economic h e a l t h o f shopping  accepted  districts.  Whether these f i g u r e s are quoted as gross estimates o r by s p e c i f i c b u s i n e s s c a t e g o r y , i n v e s t o r s and other members o f the b u s i n e s s community employ them t o e v a l u a t e the f e a s i b i l i t y and  a t t r a c t i v e n e s s o f investment o p p o r t u n i t i e s  areas.  i n commercial  Estimates of r e t a i l s a l e s volume of shopping are o f t e n u t i l i z e d  i n s t u d i e s of C e n t r a l Business  Districts  as a b a s i s f o r f o r e c a s t i n g trends i n downtown areas. cause shopping  goods  "Be-  goods tend to c o n c e n t r a t e i n market c e n t r e s ,  r e t a i l t r a d e volume i s an e x c e l l e n t i n d i c a t o r of the economic v i t a l i t y o f the CBD.""'"  Other types o f r e t a i l  such as r e g i o n a l shopping  c e n t r e s o r l o c a l shopping  a l s o prepare r e t a i l s a l e s estimates chants  districts, districts,  i n o r d e r t o a t t r a c t mer-  to the area and to j u s t i f y r e n t a l r a t e s . . The r e t a i l s a l e s volume o f a m e t r o p o l i t a n area i s  c l o s e l y a s s o c i a t e d w i t h and dependent upon, the number o f p o t e n t i a l customers t h a t pass through  the r e g i o n  Knowledge o f the c h a r a c t e r i s t i c s o f t h i s can be u t i l i z e d  t o estimate r e t a i l  each day.  "daytime p o p u l a t i o n "  s a l e s volume i n the area  or t o determine weaknesses and defic'iences i n the business-mix. There are many d i f f e r e n t reasons s p e c i f i c area throughout  why i n d i v i d u a l s t r a v e l to a  the day.  However, the daytime popu-  l a t i o n o f a d i s t r i c t can b e s t be d e f i n e d as f o l l o w s : "For any g i v e n standard  l o c a t i o n the daytime p o p u l a t i o n a t the  s e l e c t e d hour r e p r e s e n t s the sum of the number o f persons p h y s i c a l l y p r e s e n t i n the area working, a t t e n d i n g s c h o o l , shopping,  conducting p e r s o n a l b u s i n e s s , enroute  to another,  from one p l a c e  o r engaging i n o t h e r a c t i v i t i e s away from t h e i r  homes, and the number of r e s i d e n t persons 2 i n the l o c a t i o n . "  remaining  a t home  The method t h a t has been.developed by marketers to e s t i m a t e s a l e s volume and to determine customer t i c s f o r b u s i n e s s areas i s c a l l e d market  characteris-  analysis.  T h i s has  been d e f i n e d as the "study of the s i z e , l o c a t i o n , n a t u r e , 3  and c h a r a c t e r i s t i c s o f markets."  Market a n a l y s i s i s a form  of marketing r e s e a r c h t h a t adheres to the r u l e s of the scientific  method, and may  employ a wide v a r i e t y of s o c i a l  s c i e n c e and mathematical r e s e a r c h Methodology  tools.  Employed to E s t i m a t e R e t a i l S a l e s  Volume i n Gastown Any new,  attempt to e s t i m a t e r e t a i l s a l e s volume i n a  r a p i d l y changing h i s t o r i c a r e a , such as Gastown, i s  f r o u g h t w i t h numerous problems  f o r the r e s e a r c h e r .  The  m a j o r i t y of widely used market r e s e a r c h methods are u n s u i t a b l e and w i l l not p r o v i d e meaningful r e s u l t s .  Sales d a t a about  Gastown i s not a v a i l a b l e from secondary sources, w h i l e consumer surveys are u n s u i t a b l e because no data i s a v a i l a b l e about the market  segments which p a t r o n i z e Gastown b u s i n e s s e s ,  so i t i s v i r t u a l l y i m p o s s i b l e to formulate f e a s i b l e t i c a l sampling t e c h n i q u e s . correlation analysis  Market f a c t o r d e r i v a t i o n  statisand  a r e . u n s a t i s f a c t o r y procedures because  Gastown has undergone such r a d i c a l changes  i n such a s h o r t  p e r i o d of time t h a t i t i s i m p o s s i b l e to i d e n t i f y meaningful f a c t o r s to u t i l i z e as a b a s i s f o r s a l e s p r o j e c t i o n .  Finally,  s a l e s volumes cannot be estimated by standard methods, such  as the a p p l i c a t i o n of average  s a l e s per square f o o t data f o r  e q u i v a l e n t b u s i n e s s types t o the known f l o o r a r e a of each •business, because i t i s apparent  from the s i t u a t i o n i n  other h i s t o r i c d i s t r i c t s t h a t these f i r m s cannot be d e s c r i b e d by average  or standard d a t a . In view of the shortcomings  r e s e a r c h methodologies,  i t was  associated with other  decided that a d i r e c t question-  n a i r e survey of the owners and managers of a l l Gastown-comp a t i b l e b u s i n e s s e s r e p r e s e n t e d the o n l y procedure be employed to o b t a i n meaningful  that could  s a l e s data f o r the  district.  However, t h i s d e c i s i o n c r e a t e d o t h e r major problems.  Because  the r e j u v e n a t i o n of Gastown i s a v e r y r e c e n t development, the m a j o r i t y of Gastown-compatible b u s i n e s s e s are l e s s  than  one year o l d and have not experienced the low s a l e s l e v e l s t h a t are c h a r a c t e r i s t i c of the s l a c k f a l l T h i s . s i t u a t i o n , i n combination  and w i n t e r months.  w i t h the f a c t t h a t many of  the f i r m s are owned by s m a l l o p e r a t o r s who the f i r s t time, made i t d i f f i c u l t  are i n b u s i n e s s f o r  f o r many merchants t o p r o v i d e  v a l i d estimates of y e a r l y s a l e s volume.  Also, r e t a i l e r s  t y p i c a l l y v e r y s e c r e t i v e about a l l t h e i r f i n a n c i a l  are  and  o p e r a t i n g s t a t i s t i c s and are u s u a l l y u n w i l l i n g to r e l e a s e even the most i n s i g n i f i c a n t i n f o r m a t i o n .  F i n a l l y , so many  students have p e s t e r e d members of the Gastown b u s i n e s s community f o r i n f o r m a t i o n f o r term papers  and o t h e r p r o j e c t s t h a t  these businessmen have become h o s t i l e toward f u r t h e r  requests  and g e n e r a l l y are u n w i l l i n g t o cooperate w i t h s t u d e n t s .  In order contacted  t o overcome these o b s t a c l e s , the author  the Gastown Merchants A s s o c i a t i o n and proposed  t h a t , i f the A s s o c i a t i o n would endorse the q u e s t i o n n a i r e study, he would prepare a separate market study f o r t h e i r organization.  The o f f e r was accepted but the membership  imposed the s t i p u l a t i o n t h a t the i n f o r m a t i o n  p r o v i d e d by  all  confidence.  i n d i v i d u a l s was t o be h e l d i n s t r i c t e s t  In order decided  t o allow  responses to be made i n s e c r e t , i t was  t h a t merchants would not be r e q u i r e d t o p l a c e the  name o f t h e i r shops on the q u e s t i o n n a i r e .  Instead,  of f u n c t i o n a l b u s i n e s s c a t e g o r i e s was p r o v i d e d two  a listing  on the l a s t  pages o f the survey form so t h a t each respondent c o u l d  i n d i c a t e the b u s i n e s s category t h a t most c l o s e l y d e s c r i b e d his p a r t i c u l a r business. was  The method o f c l a s s i f i c a t i o n  that  u t i l i z e d was adapted from the Weiss CBD f u n c t i o n a l c l a s -  s i f i c a t i o n system t h a t was p r e v i o u s l y d i s c u s s e d The  i n Chapter IV.  survey was conducted from September 14 t o 5  September 23, 1970. seventy-six^  Questionnaires  were d i s t r i b u t e d to  business firms,, and v a l i d responses were  obtained  7 from t h i r t y - f i v e .  The response r a t e o f 46.1 percent i s  e x c e p t i o n a l l y h i g h due t o the backing r e c e i v e d from the Gastown Merchants A s s o c i a t i o n as w e l l as the f a c t t h a t the w r i t e r pressured every day u n t i l  respondents by c a l l i n g a t each l o c a t i o n the form was completed.  The l a r g e s t f i r m s  i n Gastown proved to be the most c o - o p e r a t i v e  as completed  q u e s t i o n n a i r e s were o b t a i n e d from every major Gastowncompatible b u s i n e s s i n the a r e a .  The m a j o r i t y of f i r m s  'which d i d not p r o v i d e the requested data were s m a l l boutiques and c o - o p e r a t i v e shops  (that i s , shops c o n t a i n i n g a number  o f merchants s h a r i n g one The  location).  s p e c i f i c q u e s t i o n s t h a t were asked i n o r d e r  to o b t a i n s a l e s volume estimates f o r i n d i v i d u a l f i r m s were: 1.  "What was your t o t a l s a l e s volume f o r the l a s t complete f i s c a l year? $ ' .  f o r the year ending  .  or not y e t i n b u s i n e s s one complete 2.  What do you e s t i m a t e w i l l be your volume f o r the c u r r e n t year? $  I t was was  year  .  sales  f o r the year ending  s t r e s s e d to each merchant t h a t , even i f the b u s i n e s s  l e s s than one year o l d , he was  s a l e s f o r a complete  to p r o v i d e an e s t i m a t e of  twelve month p e r i o d .  emphasized t h a t , although i t was  I t was  further  r e a l i z e d these e s t i m a t e s  might be somewhat i n a c c u r a t e , they would be much more v a l i d than those made by an i n d i v i d u a l not employed by the Due the author was  t o the  firm.  l i m i t e d time and r e s o u r c e s a v a i l a b l e ,  unable to formulate any comprehensive metho-  dology t h a t c o u l d be u t i l i z e d the measure the daytime l a t i o n of Gastown.  popu-  However, p e r i o d i c counts were taken of  foot t r a f f i c  i n the d i s t r i c t and  a question  of employees working a t each l o c a t i o n was .questionnaire. obtained  Estimated C u r r e n t An  i n the was  Department.  S a l e s Volume  extensive  l i t e r a t u r e search  source which c o n t a i n e d i n Gastown.  included  A l s o , data about v e h i c u l a r t r a f f i c flows  from the C i t y E n g i n e e r i n g  i • •.  about the number  uncovered o n l y  one  an estimate of r e t a i l s a l e s volume  This a r t i c l e , a recent  page of the Vancouver Sun,  f e a t u r e on the  financial  s t a t e d t h a t t o t a l s a l e s i n the 8  area amounted to $15,000 per day seasonal  which, i f not a d j u s t e d  t r e n d s , would amount to approximately $4.5 9  However, t h i s v a l u a t i o n was  information  about how  ment t h a t i t was  i t was  obtained  not supported by  c a l c u l a t e d , other  from "observers."  any  than a s t a t e -  I t i s , therefore,  t h a t there e x i s t s a pronounced l a c k of data about  the l e v e l of s a l e s t h a t has even though such i n f o r m a t i o n o f f i c i a l s and o f the  million  .  per y e a r .  evident  for  been a t t a i n e d by Gastown merchants, would be of b e n e f i t to C i t y  i n d i v i d u a l businessmen i n p l a n n i n g  the  future  area. The  reported  t h i r t y - f i v e f i r m s t h a t completed  questionnaires  t o t a l y e a r l y s a l e s volume of $4,775 million.''"  sales f i g u r e s provided  The  by these b u s i n e s s e s were a l s o used  g u i d e l i n e s i n the e s t i m a t i o n businesses that refused  0  of y e a r l y s a l e s f o r each of  to p a r t i c i p a t e i n the study.  as the  These  i n d i v i d u a l v a l u a t i o n s were then t o t a l l e d to o b t a i n a s a l e s  volume estimate remaining  of approximately  s i x t y - t h r e e merchants.  $0,725 m i l l i o n f o r the Therefore,  THE TOTAL ESTIMATED CURRENT SALES VOLUME OF ALL GASTOWN-COMPATIBLE BUSINESS FIRMS ADJUSTED FOR A FULL OPERATING YEAR IS $5.5 MILLION. Daytime P o p u l a t i o n and Customer A t t r a c t i o n i n Gastown As noted p r e v i o u s l y , i t proved to be i m p o s s i b l e the w r i t e r to produce a v a l i d estimate trends  for  of the l e v e l o f , or  i n , the daytime p o p u l a t i o n of Gastown.  Information  about many of the components of the p o p u l a t i o n p r e s e n t i n the area d u r i n g the day  i s impossible to obtain, while  the  e s t i m a t i o n of other segments would r e q u i r e a l a r g e f o r c e of f i e l d workers to determine the necessary an e s t i m a t i o n of the area's  data.  In a d d i t i o n ,  daytime p o p u l a t i o n f o r any  day  d u r i n g the c u r r e n t year would be r e l a t i v e l y meaningless without  e q u i v a l e n t i n f o r m a t i o n f o r p r i o r years  f o r purposes  o f comparison. I t was  o r i g i n a l l y a n t i c i p a t e d t h a t some i n f o r m a t i o n  about the number of persons e n t e r i n g or p a s s i n g  through  Gastown could be e x t r a c t e d from the data c o l l e c t e d by. the "automatic t r a f f i c counters the C i t y E n g i n e e r i n g  Department.  t h a t t h i s i n f o r m a t i o n was the p r e s e n t  study  a b l e data was  r e g u l a r l y p l a c e d i n the area However, i t was  by  determined  not s u i t a b l e f o r the purposes of  f o r a number o f reasons.  c o l l e c t e d i n A p r i l and  The  latest  September 1969  avail-  which,  as demonstrated i n Chapter  IV, i s p r i o r to the time t h a t  i n t e n s i v e r e h a b i l i t a t i o n a c t i v i t i e s commenced i n Gastown. . In  a d d i t i o n , o n l y two  r e g u l a r t r a f f i c count l o c a t i o n s are  i n c l u d e d i n the study area w h i l e t h r e e are adjacent to i t , w i t h the r e s u l t t h a t there i s i n s u f f i c i e n t data from which to  i n f e r changes i n v e h i c u l a r t r a f f i c p a t t e r n s .  Finally,  t h e r e are no methods t h a t can be employed to separate the number of commercial v e h i c l e s from p r i v a t e automobiles, t o determine  the number of p e d e s t r i a n s which r e s u l t e d  this vehicular t r a f f i c .  The  from  a c t u a l r a t e of v e h i c u l a r flow  over the s t r e e t s i n the Old Townsite over the p a s t t h r e e y e a r s .  nor  has changed very  In l i g h t of these  little  shortcomings,  the o n l y c o n c l u s i o n t h a t can be drawn i s t h a t the E n g i n e e r i n g Department t r a f f i c count s t u d i e s are an u n s u i t a b l e instrument . for  e s t i m a t i n g any p o r t i o n of the daytime p o p u l a t i o n . From June 8 to September 23, 1970,  the author  took  p e r i o d i c p e d e s t r i a n t r a f f i c counts a t the c o r n e r of Water and Cambie S t r e e t s (that i s , i n the West Townsite) and a t the i n t e r s e c t i o n of W a t e r - A l e x a n d e r - P o w e l l - C a r r a l l S t r e e t s is,  i n Maple Tree Square).  weekday f o o t t r a f f i c Square  flows  the, a f t e r n o o n hours 925,  P r i o r to Labour day, the peak (two d i r e c t i o n s ) at. Maple Tree  (from noon to 2 p.m.)  per hour w h i l e weekend  ranged  from 450 t o 1375  (Saturday and Sunday) t r a f f i c  (from 1 to 4 p.m.)  nor r i s e above 1900  (that  persons  d u r i n g e q u i v a l e n t p e r i o d s was  d i d not f a l l  per hour.  persons during below  Pedestrian t r a f f i c  g e n e r a l l y 25 t o 40 p e r c e n t  lower  i n the West Townsite  than a t Maple Tree Square.  September 7th, 1970,  weekend p e d e s t r i a n t r a f f i c has, f o r  the most p a r t , decreased.very has f a l l e n by more than 50  Since  s l i g h t l y , w h i l e weekday t r a f f i c  percent.^  These f i g u r e s support the c o n t e n t i o n t h a t t h e r e i s a s i g n i f i c a n t daytime p o p u l a t i o n i n Gastown.  Nevertheless,  t h i s data would be of much g r e a t e r v a l u e i f i t c o u l d be broken down i n t o i t s v a r i o u s components to shoppers,  persons  employed i n the a r e a , and so on) i n  order t h a t the importance c o u l d be examined.  (such as t h a t a t t r i b u t a b l e  o f , and changes i n , each f a c t o r  A l s o , i f d e f i n i t i v e statements  the t r e n d of changes i n f o o t t r a f f i c made, comparable data f o r 1969  about  i n the area are to be  and o t h e r years p r i o r to the 12  r e b i r t h of Gastown, must be  available.  From the q u e s t i o n n a i r e study, i t was  determined  that  the n i n e t y = e i g h t Gastown-compatible b u s i n e s s f i r m s employ 13 210  f u l l t i m e and  140 p a r t - t i m e s t a f f members.  The  signifi-  cance of t h i s data i s t h a t i t demonstrates t h a t the work f o r c e maintained by Gastown b u s i n e s s e s p r o v i d e a s u b s t a n t i a l p o r t i o n of the daytime p o p u l a t i o n of the a r e a . extremely  important,  This i s  i n view of the f a c t t h a t many of these  b u s i n e s s e s are l o c a t e d i n premises  t h a t were p r e v i o u s l y  vacant and d i d not c o n t r i b u t e to the daytime p o p u l a t i o n of the a r e a .  For example, the o l d M a l k i n warehouse  S t r e e t ) , u n t i l r e c e n t l y , d i d not add  (53-57 Water  to the daytime p o p u l a t i o n  of Gastown because i t stood vacant; p a t i b l e f i r m s now 27 f u l l - t i m e and  y e t , the Gastown-com-  l o c a t e d there maintain  a work f o r c e of  24 p a r t - t i m e employees and draw l a r g e num-  bers of customers to the d i s t r i c t .  As w e l l , the changes  t a k i n g p l a c e i n the Gastown work f o r c e r e f l e c t the t h a t , i n g e n e r a l , the new  fact  r e t a i l - t y p e f i r m s are more labour  i n t e n s i v e than the wholesale-type  businesses  they have  replaced.^ Information  c o u l d not be obtained about the number  of persons p h y s i c a l l y p r e s e n t i n the area conducting b u s i n e s s , enroute  from one p l a c e to another,  remaining  r e s i d e n c e l o c a t e d i n Gastown, or engaging i n other *.v i•n the  personal in  activities  a r e a . 15 Although  the author was  unable to conduct a complete  market a n a l y s i s of the area, the f i r s t  step i n the  determina-  t i o n of the demographic c h a r a c t e r i s t i c s of the market segment from which Gastown draws i t s customer t r a f f i c was i n the q u e s t i o n n a i r e study.  included  The owners and managers of  Gastown-compatible f i r m s were asked to i n d i c a t e the (  m a r i t a l s t a t u s , and customers f a l l  age group i n which the m a j o r i t y of i t s  (see Table V I I ) .  some merchants may  not be f u l l y  t i c s of t h e i r customers, i t was of shoppers are females, to"30 year age  sex,  bracket.  Although  i t i s possible that  aware of the t r u e c h a r a c t e r i s r e p o r t e d t h a t the m a j o r i t y  both married  and  s i n g l e , i n the  19  DEMOGRAPHIC CHARACTERISTICS OF GASTOWN CUSTOMERS (35 f i r m s r e p o r t i n g ) Sex  Age  Male Female Equal numbers of male and female  11% 37 52  100%  Total  Group  Less than 18 y e a r s * 19 t o 25 26 t o 30 31 to 40 41 t o 50 More than 50 y e a r s * Total  6% 35 33 19 4  100%  M a r i t a l Status Married Single Equal numbers of m a r r i e d and single  Total  43% 37 20  100%  •These age groups were r e p o r t e d o n l y by those f i r m s which i n d i c a t e d more than one age group i n t h e i r market segment. Source:  See t e x t , p. 144  The  f i n a l o b s e r v a t i o n t h a t can be made about the  t r e n d o f changes i n daytime p o p u l a t i o n i n Gastown i s one which cannot be supported by s t a t i s t i c a l  data..  From 1966 t o 1968,  the w r i t e r was employed by t h e Hudson's Bay Company as an a s s i s t a n t department manager .and v i s i t e d  the O l d Townsite  o f t e n . t o p l a c e o r d e r s w i t h the c l o t h i n g manufacturers there. to  A f t e r a two year absence from the c i t y ,  the area t o conduct  impressed  located  he r e t u r n e d  the p r e s e n t study and was immediately .  by the v e r y n o t i c e a b l e changes t h a t had taken p l a c e  i n t h e volume o f p e d e s t r i a n t r a f f i c i n the a r e a .  In 1967, the  s t r e e t s o f the O l d Townsite were u s u a l l y almost completely devoid  of foot t r a f f i c during  present  the daytime whereas, a t the  time, the sidewalks i n the Gastown area a r e o f t e n  crowded w i t h p e o p l e . Implications  f o r the F u t u r e  I t i s evident  -  t h a t the f u t u r e r e t a i l s a l e s volume  in.Gastown i s dependent upon a number of important f a c t o r s . Firstly,  p o t e n t i a l i n v e s t o r s must p e r c e i v e  rejuvenation to c o n s i d e r  activities the area  i n a favourable  the c u r r e n t  manner i f they a r e  t o be s u i t a b l e f o r f u t u r e  which w i l l , i n t u r n , add t o the s a l e s volume. appeal o f the area must be s t r o n g  investment Secondly, the  enought t o draw a d d i t i o n a l  shoppers i n t o the area and these shoppers must possess s u f f i c i e n t disposable  income t o support new f i r m s .  Finally,  the f u t u r e s a l e s volume o f Gastown w i l l depend upon the d i r e c t i o n taken by t h e expansion o f the area, which i s , i t s e l f , dependent upon overcoming the impediments t o expansion ennumerated i n Chapter IV. I f the assumption i s made t h a t the.growth o f Gastown w i l l go ahead without e n c o u n t e r i n g major or insurmountable o b s t a c l e s , a s a l e s volume p r o j e c t i o n f o r 1971 can be c a l c u l a t e d . T o t a l r e t a i l s a l e s w i l l be made up o f three 1.  the s a l e s volume a t t a i n e d by f i r m s l o c a t e d i n Gastown,  components: presently  2. 3.  the s a l e s volume a t t a i n e d by f i r m s which have announced plans t o enter Gastown but are not p r e s e n t l y l o c a t e d t h e r e (see Map 7 ) , and the s a l e s volume a t t a i n e d by f i r m s which have not y e t announced plans to open i n Gastown but w i l l be l o c a t e d t h e r e b e f o r e the end of 1971. Although a number of the s m a l l e r Gastown shops  have changed hands d u r i n g been v e r y few  the p a s t  s i x months, there have  o u t r i g h t b u s i n e s s f a i l u r e s i n the a r e a . ^  ever, the a c i d t e s t of the a b i l i t y over the l o n g term w i l l  of these f i r m s to  s u r v i v e through 1971,  under new for  or w i l l  in  operation  a t l e a s t remain i n b u s i n e s s  ownership, a s a l e s volume p r o j e c t i o n can be made  t h i s segment of the b u s i n e s s - m i x . F i v e of the 35 f i r m s which completed  for  periods  January to A p r i l .  I f i t i s assumed t h a t the 98 b u s i n e s s e s p r e s e n t l y will  survive  come i n the. s l a c k r e t a i l s a l e s  which occur from October to November and  How-  the c u r r e n t study had  y e a r and from 1969  a l l of these b u s i n e s s e s r e p o r t e d to 1970.  to 88 p e r c e n t , percent.  been i n o p e r a t i o n  These i n c r e a s e s  f o r more than  percent  a t approximately  i t can r e a s o n a b l y be  volume i n 1971.  In order  i s c o r r e c t , the p r o j e c t e d  a t t a i n increased  to remain c o n s e r v a t i v e ,  pated growth i n s a l e s of 20 p e r c e n t  has  occur, sales  an  antici-  been assumed.  s a l e s volume f o r 1971  compatible b u s i n e s s e s p r e s e n t l y  25  assumed t h a t ,  p r o v i d i n g a s e r i o u s downturn i n the economy does not Gastown-compatible b u s i n e s s e s w i l l  one  growth i n s a l e s  ranged from 17  w i t h the median f a l l i n g  Therefore,  questionnaires  i n operation  If this  of Gastown-  i n the  district  i s $6.6 m i l l i o n . The estimated s a l e s volume f o r the o f f i c i a l l y announced p r o j e c t s i n Gastown can be c a l c u l a t e d i f the responses from the q u e s t i o n n a i r e lines.  study are used as guide-  T h i s was undertaken f o r the eleven planned p r o j e c t s  l i s t e d on Map 7 and i t was determined t h a t  the-projected  s a l e s volume f o r 1971 of the announced p r o j e c t s i n Gastown i s $3.5 m i l l i o n . F i n a l l y , there  is little  information  upon which t o  base s a l e s estimates f o r a d d i t i o n s to the business-mix which are not p r e s e n t l y i n o p e r a t i o n announced.  A conservative  and have not y e t been o f f i c i a l l y  f i g u r e f o r the p r o j e c t e d  sales  volume f o r 1971 of f u r t h e r a d d i t i o n s t o the Gastown  business-  17 mix i s $1.5 m i l l i o n . Next y e a r ' s t o t a l estimated s a l e s volume can be determined by adding together Therefore,  the three preceding  projections.  the TOTAL PROJECTED SALES VOLUME FOR 1971 OF ALL  GASTOWN-COMPATIBLE BUSINESS FIRMS IS $11.6 MILLION. Because o f the h i g h l e v e l of u n c e r t a i n t y w i t h the f u t u r e o f Gastown, i t i s i m p o s s i b l e  18  associated  to provide a  meaningful e s t i m a t e of s a l e s beyond 1971. Depending upon the course of f u t u r e events, r e t a i l  s a l e s volume i n the d i s -  t r i c t may surpass $50 m i l l i o n by 1975 or the r e j u v e n a t i o n of the area may wither and d i e .  Nevertheless,  i n d i c a t i o n s are  TABLE V I I I PROJECTED SALES VOLUME: a. b. c. d.  GASTOWN  1971  T o t a l s a l e s volume of Gastown-compatible b u s i n e s s e s p r e s e n t l y i n o p e r a t i o n (1970) A n t i c i p a t e d s a l e s i n c r e a s e of category a. f i r m s (20%) E s t i m a t e d s a l e s volume of new merchants: r e n o v a t i o n announced or underway E s t i m a t e d s a l e s volume of new merchantso t h e r than c a t e g o r i e s a., b., and c.  $5,500,000 1,100,000 3,500,000 1,500,000  E s t i m a t e d R e t a i l S a l e s Volume Source:  See t e x t , pp.  $11,600,000  148-149.  f a v o u r a b l e f o r the continued expansion of Gastown.  Retail  s a l e s i n h i s t o r i c d i s t r i c t s are drawn from both t o u r i s t  traffic  and r e s i d e n t s of the c i t y , and both of these f a c t o r s are r a p i d l y i n c r e a s i n g i n Vancouver.  .  The number of t o u r i s t v i s i t s  to B r i t i s h  Columbia  19 i n c r e a s e d by more than 10 p e r c e n t i n 1969  and,  the economy has been r a t h e r weak throughout  the y e a r ,  t r e n d has c o n t i n u e d i n t o 1970.  T o t a l purchases  f o r "food, a l c o h o l i c beverages,  and  even though  by  entertainment"  this  tourists i n Van-  couver amounted to $61 m i l l i o n i n 19 69 w h i l e expenditure f o r 20 "food" t o t a l e d $48 m i l l i o n .  I t i s , therefore, evident  t h a t the merchants of Gastown w i l l be a b l e to g a i n s u b s t a n t i a l s a l e s i n c r e a s e s i f they,are a b l e t o p e n e t r a t e t h i s market.  D i s p o s a b l e income a v a i l a b l e t o Vancouver r e s i d e n t s , the o t h e r f a c t o r upon which the r e t a i l success of Gastown i s dependent, i s a l s o r a p i d l y i n c r e a s i n g .  I t has been estimated  t h a t the t o t a l p e r s o n a l d i s p o s a b l e income of r e s i d e n t s of M e t r o p o l i t a n Vancouver w i l l  i n c r e a s e 14.2  p e r c e n t over  the  21 next t h r e e ' y e a r s .  I t i s s i g n i f i c a n t t h a t the p o p u l a t i o n  segment from which Gastown draws the major p o r t i o n of i t s customers  (that i s , the 19 to 25 year age group) i s r a p i d l y  expanding  and i s known to be the age group which  possesses  the h i g h e s t l e v e l s of d i s p o s a b l e income. Gastown r e t a i l s a l e s volume must c o n t i n u e to expand f o r an extended  p e r i o d of time i f i t i s t o achieve  success  equal t o t h a t of other h i s t o r i c d i s t r i c t s such as the Vieux Carre.  T a b l e IX i l l u s t r a t e s the f a c t t h a t the  estimated  market share a t t a i n e d by the Vieux C a r r e w i l l be more than t e n times t h a t of Gastown i n 1971.  I f Gastown can  achieve  e q u i v a l e n t market p e n e t r a t i o n , t o t a l r e t a i l s a l e s w i l l $123  be  million. I t i s r e g r e t t a b l e t h a t no i n f o r m a t i o n i s a v a i l a b l e  about the consumption p a t t e r n s o f R-E-R  goods i n Gastown.  Data of t h i s nature would be of v a l u e t o guide both  the  e s t i m a t i o n of f u t u r e s a l e s l e v e l s i n the d i s t r i c t and p r e d i c t i o n of the f u t u r e expansion Very l i t t l e  areas i n the O l d  the  Townsite.  can be s a i d about the f u t u r e trends of i  the t o t a l daytime p o p u l a t i o n i n Gastown.  I f the area c o n t i n u e s  COMPARISON OF ESTIMATED GASTOWN AND MARKET SHARES,  T o t a l estimated p e r s o n a l income of c i t y r e s i d e n t s T o t a l estimated t o u r i s t revenue f o r the c i t y T o t a l E s t i m a t e d Market Potential  . $2,400,000,000  _ 450 ,000,000  to Table  $1,500,000,000 255,000,OOP  3  $1,755,000,000 4  $200,000,000  H i s t o r i c d i s t r i c t r e t a i l sales as percentage of market p o t e n t i a l (Market Share)  and Footnotes  1971  $2,850,000,000  T o t a l estimated r e t a i l sales i n h i s t o r i c d i s t r i c t  Sources  VIEUX CARRE  7.02%  $11,600,000  0.66%  IX  ^"Editor and p u b l i s h e r Magazine, E d i t o r and P u b l i s h e r Market Guide, 1969, New York: E d i t o r and P u b l i s h e r Magazine, 1969, pp. 202 and 522. To o b t a i n 1971 income e s t i m a t e s , the 1969 p r o j e c t i o n s have been i n c r e a s e d by 6 p e r c e n t per y e a r . 2 North C a r o l i n a Department of C o n s e r v a t i o n and Development, H i s t o r i c D i s t r i c t Development P l a n : Wilmington, North C a r o l i n a , Wilmington, N.C.: North C a r o l i n a Department o f C o n s e r v a t i o n and Development, D i v i s i o n of Community P l a n n i n g , 1968, p. 21. The 1967 t o u r i s t income l e v e l was a d j u s t e d upward by 20 p e r c e n t to o b t a i n a 1971 e s t i m a t e . ^Vancouver V i s i t o r ' s Bureau. Telephone i n q u i r y by the w r i t e r , September 22, 1970. The 1969 t o u r i s t income l e v e l has been a d j u s t e d upward by 15 p e r c e n t . 4 R.L. Montague and T.P. Wrenn, P l a n n i n g f o r P r e s e r v a t i o n , Chicago: American S o c i e t y of P l a n n i n g O f f i c i a l s , 1964, p. 14. T h i r t y - f i v e p e r c e n t has been added t o the 1964 estimate of Vieux C a r r e s a l e s volume.  t o g a i n customer r e c o g n i t i o n , i t i s a n t i c i p a t e d t h a t subs t a n t i a l gains w i l l be made i n the d e n s i t y o f . t r a f f i c flowing s i b l e to provide  i n t o the d i s t r i c t .  pedestrian  However, i t i s impos-  q u a n t i t a t i v e estimates a t t h i s  time.  Footnotes:  Chapter V  J . R a n n e l l s , "Approaches t o A n a l y s i s , " J o u r n a l of the American I n s t i t u t e of P l a n n e r s , V o l . 27 (February 1961), p. 19. 2 U.S. Bureau o f the Census, P o p u l a t i o n E s t i m a t e s f o r S u r v i v a l P l a n n i n g , Washington: Department o f Commerce, 1956, p. 9 as c i t e d i n S.F. Weiss, The C e n t r a l Business District i n Transition: M e t h o d o l o g i c a l Approaches t o CBD A n a l y s i s and F o r e c a s t i n g F u t u r e Space Requirement^ C i t y and R e g i o n a l P l a n n i n g S t u d i e s Research Paper No. T~. Chapel H i l l , N.E.: U n i v e r s i t y of North C a r o l i n a , 1957, p. 12. 3 American Marketing A s s o c i a t i o n Committee on D e f i n i t i o n s , Marketing D e f i n i t i o n s : A G l o s s a r y o f Marketing Terms, Chicago! American Marketing A s s o c i a t i o n , 19 60, p.17 as c i t e d i n W.J. Stanton, Fundamentals o f Marketing, New York: McGraw-Hill, 1967, p. 39. 4  For a g e n e r a l d e s c r i p t i o n o f the methods employed i n market e s t i m a t i o n see Stanton, bp. C i t . , pp. 648-651. A copy o f the complete q u e s t i o n n a i r e i s i n c l u d e d i n Appendix A. ^Even though Chapter IV i d e n t i f i e d n i n e t y - e i g h t Gastown-compatible f i r m s , the q u e s t i o n n a i r e was o n l y p r e s e n t e d to s e v e n t y - s i x o f them. The twenty-two merchants l o c a t e d i n the Gastown F l e a Market (26 Water S t r e e t ) were excluded because i t proved to be too d i f f i c u l t t o reach them (they are open f o r b u s i n e s s on Sundays o n l y ) . E s t i m a t e s were made f o r t h i s group by u t i l i z i n g the d a t a o b t a i n e d from o t h e r merchants as a g u i d e l i n e . 7  .  For a l i s t i n g o f the b u s i n e s s f i r m s which pated i n the survey see Appendix B.  partici-  8  of  J . K h o u r i , " S p i r i t o f Gastown Triumphs Over Lack Knowhow," The Vancouver Sun, J u l y 18, 1970, p. 21. 9  The y e a r l y s a l e s f i g u r e was c a l c u l a t e d by m u l t i p l y ing 300 days (that i s , a s i x day week extended over one y e a r , l e s s h o l i d a y s ) times$15,000 t o o b t a i n $4,500,000. However, t h i s method o f expanding the d a i l y s a l e s volume to an estimate  f o r the t o t a l year i s i n v a l i d f o r two reasons. Firstly, the $15,000 d a i l y v a l u a t i o n was made i n J u l y when customer t r a f f i c i s at i t s highest. T h i s f i g u r e would be substant i a l l y lower i f prepared d u r i n g the winter months. A l s o , • m u l t i p l i c a t i o n of the d a i l y s a l e s f i g u r e by 300 to o b t a i n the y e a r l y s a l e s volume cannot be adequately j u s t i f i e d because a l a r g e p o r t i o n of Gastown f i r m s are open f o r b u s i n e s s seven days a week. ^ T h e s a l e s volume estimates of three of the' r e p o r t i n g f i r m s were a d j u s t e d by the author because they appeared to be f a r out of l i n e i n r e l a t i o n to o t h e r Gastown merchants of a s i m i l a r type. ^ B e c a u s e a l i m i t e d number of p e d e s t r i a n t r a f f i c counts were made a f t e r Labour Day, the o b s e r v a t i o n s regarding' v e r y r e c e n t trends may be somewhat i n v a l i d . Only two weekends and f o u r weekday counts were made a f t e r Setpember seventh, whereas seven weekend and twenty-one weekday counts were made p r i o r to t h a t d a t e . 12 The o n l y data on p e d e s t r i a n t r a f f i c counts f o r the C i t y of Vancouver t h a t c o u l d be o b t a i n e d was i n c l u d e d i n " T r a f f i c Counts made by the Vancouver Real E s t a t e Board, December 1, 1960" as c i t e d i n L a r r y Smith and Company, An Economic A n a l y s i s f o r C e n t r a l B u s i n e s s D i s t r i c t Redevelopment, Vancouver, B.C.: Phase I - P r e l i m i n a r y Study> Vancouver: The C i t y P l a n n i n g Department, 1963, p. 3. Although t h i s count (taken on a Thursday) d i d not i n c l u d e the O l d G r a n v i l l e Townsite, o t h e r l o c a t i o n s can be used f o r purposes of comparison: 10:30-11:30 2:30-3:00 Location a.m. p.m. G r a n v i l l e , b e s i d e the HBC 1981 3263 U n i t Block E. H a s t i n g s , n o r t h s i d e 1298 1625 . . U n i t Block W. H a s t i n g s , n o r t h s i d e 1883 2651 W.Hastings, f r o n t of Woodwards 2212 3549 300 Block W.Hastings, n o r t h s i d e 1920 2815 13 The t o t a l work f o r c e data has been a d j u s t e d to i n c l u d e estimates f o r those f i r m s which d i d not p a r t i c i p a t e i n the q u e s t i o n n a i r e study. I t was a l s o determined t h a t p a r t time employees of Gastown f i r m s are p a i d f o r a t o t a l of 7100 work hours per month. From an economic p o i n t - o f - v i e w , t h i s i s e q u i v a l e n t to an a d d i t i o n a l f o r t y - t h r e e f u l l time employees.  The l a b o u r i n t e n s i t y of r e t a i l i n g as compared to w h o l e s a l i n g can be demonstrated i f comparisons are made of the average d o l l a r s a l e s per employee f o r the two groups. The 1961 Census of Canada r e p o r t e d t h a t the average number o f p a i d employees f o r f i r m s o p e r a t i n g . a t a s i n g l e l o c a t i o n was 2.3 persons f o r the r e t a i l group and 4.7 f o r the wholes a l e group. However, the average s i n g l e l o c a t i o n r e t a i l f i r m generated y e a r l y s a l e s volume o f o n l y $7,246 as compared to $485,745 f o r the e q u i v a l e n t w h o l e s a l e r . The g r e a t e r l a b o u r i n t e n s i t y of the r e t a i l s e c t o r (that is-, t h e l o w e r labour' e f f i c i e n c y ) i s apparent as the s a l e s per employee i n the r e t a i l group amounted to o n l y $3,150 versus $69,392 f o r wholesalers. Source: Canada, Dominion Bureau of S t a t i s t i c s , Census o f Canada, 19 61. R e t a i l Trade, V o l . 6 and Wholesale Trade and S e r v i c e s , V o l . 11. Ottawa: Queen's P r i n t e r , 1964. -  ^ I t i s not necessary t o o b t a i n i n f o r m a t i o n about persons a t t e n d i n g s c h o o l i n Gastown because no i n s t i t u t i o n s of l e a r n i n g , e i t h e r p r i v a t e o r p u b l i c , a r e l o c a t e d i n the area. ^ K h o u r i , Op. C i t . , p. 21 s t a t e d t h a t , as of midJ u l y 1970, "out of 80 b u s i n e s s e s e s t a b l i s h e d i n Gastown i n the l a s t 18 months, o n l y two have f a i l e d . " 17 I n view of the r a p i d pace with which new shops and o t h e r b u s i n e s s e s are b e i n g added, to the area, t h i s estimate may be o v e r l y c o n s e r v a t i v e . 18 The 1971 estimate of s a l e s has a l s o been a d j u s t e d t o produce r e s u l t s f o r a f u l l o p e r a t i n g y e a r . 19 " B r i t i s h Columbia's t o u r i s t v i s i t s i n c r e a s e d i n 1969 by 8.5 p e r c e n t f o r automobile t r a f f i c and 11.2 p e r c e n t f o r p u b l i c c a r r i e r s , compared to 1968." Source: British Columbia Department of T r a v e l I n d u s t r y , Report of the Department of T r a v e l I n d u s t r y f o r Year Ended "December 31, 1969, V i c t o r i a : Queen's P r i n t e r , 1970, p. H14. 20 The Vancouver V i s i t o r s Bureau r e p o r t e d t h a t totalexpenditures by t o u r i s t s i n Vancouver i n 1969 amounted t o $210 t o $220 m i l l i o n w h i l e the G r e a t e r Vancouver V i s i t o r s and Convention Bureau s t a t e d t h a t v i s i t o r s spend 28 p e r c e n t o f t h e i r budget f o r "merchandise, a l c o h o l i c beverages, and entertainment" and 22 p e r c e n t f o r "food." Source: Vancouver V i s i t o r s Bureau, Telephone i n q u i r y by the w r i t e r , September 22, 1970 and The Greater Vancouver V i s i t o r s and Convention Bureau, "This i s How the V i s i t o r Spends i n Vancouver," unp u b l i s h e d mineograph. Vancouver, no date.  B.M. Hamilton, ed., 1968-6 9 Survey o f Markets and Business Year Book, T o r o n t o : Maclean-Hunter, 1969, p. 46. T h i s source estimated t h a t t o t a l p e r s o n a l d i s p o s a b l e income o f r e s i d e n t s o f M e t r o p o l i t a n Vancouver would i n c r e a s e 'from $2538 m i l l i o n i n 1969 t o $2898 m i l l i o n i n 1972. During the same p e r i o d , i t i s a n t i c i p a t e d t h a t per c a p i t a d i s p o s a b l e income w i l l r i s e from $2620 t o $2850 (8.8 p e r c e n t ) .  CHAPTER VI  THE  ECONOMICS OF COMMERCIAL INVESTMENT IN GASTOWN  We have something unique i n e n t r e p r e n e u r s h i p here [ i n Gastown]... and t h a t i s making a commercial world o f a s k i d road a r e a . l  The p r e v i o u s chapter examined the g e n e r a l economic s i t u a t i o n i n Gastown as i t concerns it  R-E-R f i r m s .  i n v o l v e d an a n a l y s i s of gross f a c t o r s as they r e l a t e t o  the.whole d i s t r i c t ,  r a t h e r than an examination  r e s u l t s by category o r i n d i v i d u a l f i r m s . Old  As such,  Townsite  o f the s p e c i f !  However, i f the .  i s to c o n t i n u e to expand and develop  into a  v i a b l e commercial a r e a , the o p p o r t u n i t y must e x i s t f o r a l a r g e number of i n d i v i d u a l Gastown-compatible f i r m s t o o p e r a t profitably. I f Gastown i s to be s u c c e s s f u l over the long r u n , the o p e r a t i n g r e s u l t s of i n d i v i d u a l f i r m s must be such t h a t they both a l l o w e x i s t i n g f i r m s t o s u r v i v e and prosper and encourage a d d i t i o n a l f i r m s t o e n t e r the a r e a . determine  In o r d e r t o  whether the area w i l l be a b l e t o support a l a r g e  and d i v e r s e business-mix,  Chapter VI w i l l  e v a l u a t e the  o p e r a t i n g r e s u l t s of s e l e c t e d f i r m s i n the study area and suggest i m p l i c a t i o n s f o r the f u t u r e based  upon these  results.  A n a l y s i s of. Operating R e s u l t s of Retail  Small-scale  Businesses R.  D. Entenberg, commenting upon the  decision in relation  to the r e t u r n on c a p i t a l  s e t out the major f a c t o r s to be considered  investment in retailing,  i n evaluating  r e t a i l f i r m s i n the f o l l o w i n g manner: In r e t a i l i n g , probably more than other f i e l d s o f endeavour, most establishments are r e l a t i v e l y s m a l l i n s i z e , w i t h s o l e p r o p r i e t o r s h i p and part n e r s h i p as the predominating forms of o r g a n i zation. In these s t o r e s the element of both an i m p l i c i t wage and an i m p l i c i t r e t u r n on c a p i t a l are i n v o l v e d , because most of the firms are operated by the owner-entrepreneur type of management. ... Thus t h e r e can be no exact c r i t e r i o n of s t a n dards f o r r e t a i l f i r m s . Comparisons have to be made with f i r m s t h a t are e i t h e r ' t y p i c a l ' Or i d e a l to c a l c u l a t e the lowest p o s s i b l e c o s t s and g r e a t e s t p r o f i t a b i l i t y over time.... Investment i n the r e t a i l e n t e r p r i s e r e p r e s e n t s .a b u s i n e s s r i s k of c a p i t a l , . Net p r o f i t r e p r e s e n t s compensation f o r t h i s r i s k and an economic "return on c a p i t a l . The g r e a t e r the r i s k s , the g r e a t e r the p o t e n t i a l net p r o f i t s i f investment c a p i t a l i s to be a t t r a c t e d . . . . T h e g r e a t e r the degree of s e c u r i t y i n v o l v e d i n the investment, the s m a l l e r the r a t e of r e t u r n t h a t has to be promised i n o r d e r to secure the necessary venture funds i n the market p l a c e . 2 T h i s statement suggests three f a c t o r s which must be  taken i n t o account when e v a l u a t i n g o p e r a t i n g  r e t a i l b u s i n e s s e s l o c a t e d i n a commercial area  r e s u l t s of such as Gas-  town. 1.  The a n a l y s i s must d e a l mainly with s m a l l - s c a l e o p e r a t o r s , so awareness of the unique c h a r a c t e r i s t i c s and environment of small businesses i s essential ;  2. 3.  Extreme c a u t i o n must be e x e r c i s e d i n choosing i n d u s t r y standards and u s i n g them to e v a l u a t e the f i n a n c i a l p o s i t i o n of these f i r m s ; and I f a commercial d i s t r i c t i s to a t t r a c t new c a p i t a l , the p o t e n t i a l net p r o f i t l e v e l must be s u f f i c i e n t to compensate the i n v e s t o r f o r the attendant r i s k s . A . d e t a i l e d examination  of s m a l l - s c a l e r e t a i l i n g  i s beyond the scope of t h i s t h e s i s .  However, i n view of  e x t e n s i v e p u b l i c i t y t h a t has been g i v e n to the h i g h r a t e and  low p r o f i t a b i l i t y a s s o c i a t e d .with the (  i t would be of b e n e f i t to r e c o g n i z e an opposed r e c e n t l y expressed  by Duncan and P h i l l i p s .  the  failure  small  retailer,  viewpoint  They noted  that:  too o f t e n r e t a i l i n g i s thought of as an u n p r o f i t a b l e b u s i n e s s . T h i s i d e a has been encouraged by v a r i o u s expense s t u d i e s showing r e t a i l p r o f i t s of o n l y 1 per cent to 4 per cent of s a l e s . The f a c t i s sometimes overlooked t h a t such p r o f i t r a t i o s f r e q u e n t l y r e p r e s e n t 10 per cent to 20 per cent or more of net worth and t h a t they" are i n a d d i t i o n to the p r o p r i e t o r ' s s a l a r y or drawing account f o r s e r v i c e s rendered to the b u s i n e s s . ^ There are a number of p i t f a l l s which must be i n choosing  i n d u s t r y standards  and u s i n g them i n the e v a l u a t i o n  of the f i n a n c i a l p o s i t i o n of s m a l l r e t a i l e r s . e s s e n t i a l t h a t standards  avoided  First,  employed have been compiled  i t is for  f i r m s o p e r a t i n g under c o n d i t i o n s s i m i l a r to t h a t i n the a r e a , otherwise  the comparison w i l l be meaningless.  it  to keep i n mind a concept  i s necessary  which the e v a l u a t i o n i s b e i n g made.  study  Second,  of the purpose f o r  I f , f o r example, a par-  t i c u l a r standard r e p r e s e n t s a measure of s h o r t - t e r m  profit-  a b i l i t y but the f a c t o r b e i n g e v a l u a t e d i s r e l a t e d to the  long-term p o s i t i o n of the f i r m , r e s u l t a n t c o n c l u s i o n s be i r r e l e v a n t .  will  F i n a l l y , c a u t i o n must be e x e r c i s e d i n order  •to a v o i d c o n c e n t r a t i n g upon r a t i o s or percentages as an i n themselves.  One  end  must look f o r what these r e l a t i o n s h i p s  t e l l about the f i r m or what they mean r a t h e r than  viewing  the c a l c u l a t i o n of the f i g u r e s as the o n l y step i n the analysis.  For example, the goals and o b j e c t i v e s o f a company  w i l l have a s t r o n g b e a r i n g upon the way statistics  should be e v a l u a t e d  i n which f i n a n c i a l  so sweeping  conclusions  should not be made i n the absence of such knowledge. Methodology Employed to Determine and R e t a i l Operating  F a c t o r s i n Gastown  Once a g a i n , due and  Evaluate  to the l a c k of p u b l i s h e d  the inadequacy of a l t e r n a t i v e methods, i t was  that questionnaire  survey  techniques  represented  information; determined  the  procedure t h a t c o u l d be employed to o b t a i n r e l e v a n t data about Gastown b u s i n e s s e s . herent  only financial  However, the o b s t a c l e s i n -  i n t h i s d e c i s i o n proved to be even more d i f f i c u l t to  overcome than those sales data. i n attempting  a s s o c i a t e d w i t h the d e t e r m i n a t i o n  Some.problems were s i m i l a r to those to o b t a i n s a l e s estimates  unique to t h i s p o r t i o n of the The  of  encountered  w h i l e o t h e r s were  study.  t r a d i t i o n a l u n w i l l i n g n e s s of r e t a i l e r s  to  r e l e a s e . f i n a n c i a l data, the s h o r t l e n g t h of time t h a t most f i r m s have been i n o p e r a t i o n , and  the l a c k o f e x p e r i e n c e  of  a l a r g e p o r t i o n of the owners were, once again, major impediments to the completion  of the study.  These f a c t o r s  'created a s i t u a t i o n i n which, s i m u l t a n e o u s l y , i t was c u l t to o b t a i n the necessary  diffi-  data.and the responses  that  were p r o v i d e d were based upon estimates r a t h e r than a c t u a l operating  results. Shortcomings i n h e r e n t i n the q u e s t i o n n a i r e  and d i f f i c u l t i e s  i n f i n d i n g v a l i d i n d u s t r y standards  comparison f u r t h e r c o m p l i c a t e d experience  them to misunderstand  i n f o r m a t i o n which was  limited may  the q u e s t i o n s or to p r o v i d e  inaccurate.  I f t h i s d i d occur,  not be t r u l y comparable between f i r m s .  cause i t was and  The  for  and v a r i e d backgrounds of the respondents  have caused  d a t a may  the matter.  technique  A l s o , be-  not p o s s i b l e to ask f o r complete balance  income statements  from each f i r m  sheets  (the owners.probably  would not have p r o v i d e d these statements,  even i f they  been a v a i l a b l e ) , a l l data f o r a n a l y s i s had • from the q u e s t i o n n a i r e .  the  However, i t was  to be  had  obtained  necessary  to  limit  the l e n g t h of the p r i n t e d q u e s t i o n form so t h a t p o t e n t i a l respondents time was  would not r e f u s e to p a r t i c i p a t e because too much  r e q u i r e d to complete the q u e s t i o n n a i r e .  This, i n  t u r n , l i m i t e d the extent of the f i n a n c i a l a n a l y s i s t h a t c o u l d be  conducted. i  The 1. 2.  -  .  s p e c i f i c o p e r a t i n g f a c t o r s examined were:  S a l e s data, O p e r a t i n g expenses and mark-up,  3. 4..  C a p i t a l investment and r e t u r n on investment, and Other, n o n - q u a n t i f i a b l e f a c t o r s which i n f l u e n c e the s a l e s and p r o f i t s of Gastown b u s i n e s s e s . ^ In o r d e r to comply w i t h the Gastown Merchants  A s s o c i a t i o n ' s d e c i s i o n t h a t a l l i n f o r m a t i o n was  t o be h e l d  i n s t r i c t e s t c o n f i d e n c e , the data has been aggregated  by  l o g i c a l groupings  busi-  nesses  so t h a t the responses  of i n d i v i d u a l  cannot be s p e c i f i c a l l y i d e n t i f i e d . ^  Depending upon  the nature o f the r e t a i l r e l a t i o n s h i p s b e i n g c o n s i d e r e d the type of standard used f o r comparison, systems have been employed. i n t e n t was  two  and  categorization  In those cases where the major  t o i s o l a t e the d i f f e r e n c e s t h a t r e l a t e to the  sizi  o f the i n d i v i d u a l components, the f i r m s have been c l a s s i f i e d a c c o r d i n g to y e a r l y s a l e s volume.  Other data has been com-  p i l e d by r e t a i l category i n order t o f a c i l i t a t e  comparison  with industry standards. T h r e e : c a t e g o r i e s were employed t o c l a s s i f y Gastown b u s i n e s s e s by s i z e of f i r m : ^ Category  A -  (small f i r m s ) b u s i n e s s e s whose estimated y e a r l y s a l e s volume i s l e s s than $10,000. T h i s i n c l u d e s the m a j o r i t y o f Gastown's s m a l l boutiques which c a r r y l e a t h e r goods, hand-made c l o t h i n g , and n o v e l t y c r a f t items.  Category B -  (medium-sized f i r m s ) b u s i n e s s e s w i t h e s t i mated y e a r l y s a l e s volume of more than $10,000 but l e s s than $100,000. T h i s i n c l u d e s the m a j o r i t y o f a r t g a l l e r i e s and r e s t a u r a n t s i n Gastown as w e l l as a number of c l o t h i n g and c r a f t b o u t i q u e s .  Category C -  ( l a r g e f i r m s ) b u s i n e s s e s whose e s t i m a t e d y e a r l y s a l e s volume i s $100,000 and above.  T h i s i n c l u d e s a l l of the import shops and dry goods s t o r e s . i n Gastown as w e l l as the m a j o r i t y of f u r n i t u r e s t o r e s p l u s one r e s t a u r a n t and one c l o t h i n g store. T h e . r e t a i l categories Gastown are as I.  II.  III.  IV.  V.  follows  t h a t were i d e n t i f i e d i n  7  F u r n i t u r e Stores - . t h e r e are s i x f u r n i t u r e s t o r e s i n the study area, a l l of which s p e c i a l i z e i n modern or Scandinavian-type merchandise; Restaurants and Night Clubs - f i v e r e s t a u r a n t s and two n i g h t c l u b s have been designated as Gastown-compatible; A p p a r e l and Shoes Stores ( y e a r l y s a l e s $10,000 and over) - t h i s i s the l a r g e s t s i n g l e c a t e g o r y from which v a l i d responses to the q u e s t i o n n a i r e were o b t a i n e d . Most of these shops s p e c i a l i z e i n hand-made, h i g h s t y l e f a s h i o n s ; M i s c e l l a n e o u s S p e c i a l t y Goods Boutiques ( y e a r l y s a l e s l e s s than $10,000) - t h i s corresponds to Category A i n the c l a s s i f i c a t i o n system u t i l i z e d to group businesses by s i z e of f i r m ; M i s c e l l a n e o u s S p e c i a l t y Goods Stores ( y e a r l y s a l e s . over $10,0 00) - i n c l u d e d i n t h i s group are import shops, dry goods s t o r e s , antique auto p a r t s shops, and music s t o r e s . Because no o p e r a t i n g  standards are  specifically  prepared f o r commercial h i s t o r i c d i s t r i c t s , the r a t i o s chosen may  be  s u b j e c t to d i s p u t e .  retailing  For example,  the  environmental f a c t o r s t h a t i n f l u e n c e American v a r i e t y s t o r e s w i t h y e a r l y s a l e s of $25,000 t o $50,000 or the techniques employed by these f i r m s may  operating  be s u b s t a n t i a l l y  d i f f e r e n t from those o f Gastown's import s t o r e s .  However,  the w r i t e r i s f u l l y c o g n i z a n t o f t h i s shortcoming  i n the  • a n a l y s i s and has made every p o s s i b l e e f f o r t t o determine and employ standards which a r e b e s t s u i t e d t o i l l u s t r a t e the r e l e vant  facts.  8  O p e r a t i n g R e s u l t s o f S e l e c t e d Gastown Businesses The approach i.  ii.  1.  o f t h i s s e c t i o n of the t h e s i s w i l l be:  t o e v a l u a t e the economic v i a b i l i t y o f those Gastown-compatible b u s i n e s s e s which p r o v i d e d d a t a about t h e i r o p e r a t i n g r e s u l t s , and t o u t i l i z e the i n f o r m a t i o n so determined t o make i n f e r e n c e s about the economic h e a l t h o f the t o t a l business-mix i n Gastown.  Sales Analysis No s i n g l e f a c t o r emphasizes t h e d i v e r s i t y o f the  business-mix  i n Gastown more e m p h a t i c a l l y than the spread o f  d o l l a r s a l e s volumes o f i n d i v i d u a l f i r m s .  Although t h e t o t a l  y e a r l y s a l e s o f s p e c i f i c Gastown-compatible b u s i n e s s e s  range  from a low o f $3000 t o a h i g h of $800,000, t h e r e i s a d i s p r o p o r t i o n a t e number o f v e r y s m a l l merchants o p e r a t i n g i n the a r e a .  Of the n i n e t y - e i g h t Gastown-compatible R-E-R f i r m s  i d e n t i f i e d i n the study, more than one-half a t t a i n y e a r l y s a l e s o f l e s s than $10,000 (see Category A, Table X ) . Because t h e median y e a r l y s a l e s volume of these f i r m s i s o n l y $6000, t h i s group o f b u s i n e s s e s account f o r l e s s than 3 1/2 p e r c e n t o f the t o t a l s a l e s volume i n Gastown.  TABLE X  ..  DISTRIBUTION OF NUMBER OF BUSINESSES AND SALES VOLUME DATA BY SIZE OF FIRM  Sales Data  S a l e s Volume  No. o f Firms  Percentage of T o t a l No. o f Firms (Percent)  Category A ( Y e a r l y . Sales l e s s than $10,000) Category B (Yearly Sales $10,000$99,999) Category C (Yearly S a l e s $100,000 and over) Total  Percentage o f T o t a l Gastown Sales Volume  Range o f Sales Volumes  (Percent)  ($)  51  52.1  3.4  , 35  35.7  17.3  10,000-95,000  12  12.2  79.3  100,000-800,000  100.0  100.0  98 '  3,000-9,500  Median Sales Volume ($) 6,000*  15,000  285,000  *Does not i n c l u d e merchants l o c a t e d i n the Gastown Emporium and the Gastown F l e a Market. Source:  See t e x t , pp. 164-166.  On the other hand, although only 12 p e r c e n t of the b u s i n e s s e s have y e a r l y s a l e s o f more than $100,000 C, T a b l e X ) , they produce almost volume o f the O l d Townsite. those i n Category  (Category  80 p e r c e n t of the t o t a l  sale  The remaining merchants (that i s  B) a r e a l s o r e l a t i v e l y s m a l l , as the median  s a l e s volume of t h i s category i s $15,000.  Although more than  35 p e r c e n t of Gastown businesses have s a l e s o f between $10,000 and $100,000 per y e a r , they account percent of t o t a l r e t a i l  f o r o n l y 17.3  sales.  In view of these f a c t s , i t i s e v i d e n t t h a t the f u t u r e success of Gastown i n regard to t o t a l s a l e s volume i s dependent upon a very, s m a l l number of b u s i n e s s e s . if  However  the v a r i e t y and d i v e r s i t y of the area i s t o be r e t a i n e d ,  the s m a l l shops and boutiques t h a t add so much t o the c h a r a c t e r o f the d i s t r i c t must be a b l e t o achieve s u f f i c i e n t s a l e s l e v e l s to a l l o w them to c o n t i n u e t o o p e r a t e . The a n a l y t i c t o o l t h a t i s most commonly employed to measure the r e l a t i v e success o f r e t a i l f i r m s i n terms of s a l e s volume i s a n a l y s i s of d o l l a r volume per square data.  9  Table X I  1 0  '  1 1 -  illustrates  foot  the f a c t t h a t the m a j o r i t y  o f import shops, as w e l l as other m i s c e l l a n e o u s  specialty  goods and c l o t h i n g s t o r e s w i t h s a l e s of more than $10,000 per y e a r , have been a b l e t o a t t a i n s a l e s i n r e l a t i o n t o s a l e s - f l o o r - a r e a above the minimum economic l e v e l as d e f i n e d by the. Real E s t a t e Research C o r p o r a t i o n .  In a d d i t i o n , the  COMPARISON OF DOLLAR VOLUME PER SQUARE FOOT DATA BY RETAIL CATEGORY Standard  Retail  10  Economic Range of D o l l a r Volume Per Square Foot of R e t a i l Space  Category  Gastown Operating R e s u l t s No. of Firms Reporting  (?)  I. F u r n i t u r e  Stores  I I . Restaurants and Night Clubs I I I . A p p a r e l and Shoe S t o r e s (yearly s a l e s $10,000 and over) IV. M i s c e l l a n e o u s S p e c i a l t y Goods Boutiques (yearly s a l e s l e s s than $10,000) V. M i s c e l l a n e o u s S p e c i a l t y Goods S t o r e s (yearly s a l e s over $10,000) Total Source:  30-50  5  48-80  Range o f D o l l a r Volume Per Square Foot o f R e t a i l Space . Results  Median of D o l l a r Volume Per Square Foot o f R e t a i l Space Results  Percentage of Firms Above Minimum Standard^ (Percent)  ($)  ($)  13.33-37.50  28.60  40.0  15.94-96.43  35.50  50.0  35-75  9.17-200.00  46.25  62.5  35-75  4.80-20.00  12.00  0.0  35-75  12.00-75.00  45.85  66.7  30  43.3  Real E s t a t e Research C o r p o r a t i o n as c i t e d i n R.L. Nelson and F.T. Aschman, C o n s e r v a t i o n and R e h a b i l i t a t i o n of Major Shopping D i s t r i c t s . Urban Land T e c h n i c a l B u l l e t i n No. 22, Washington: Urban Land I n s t i t u t e , 1954, p. 16 and t h i s t h e s i s see t e x t , pp. 166-168.  s a l e s per square f o o t r e s u l t s of Gastown r e s t a u r a n t s and f u r n i t u r e s t o r e s are g e n e r a l l y w i t h i n reach of the ' l i m i t o f t h i s range and w i l l l e v e l of s a l e s by 1971  lower  l i k e l y a t t a i n an economic  i f these b u s i n e s s e s can i n c r e a s e  t h e i r p r e s e n t s a l e s by 10 p e r c e n t t o 30 p e r c e n t . None of the s m a l l boutiques  and s p e c i a l t y  shops  i n c l u d e d i n the survey have y e t reached an economic s a l e s volume i n r e l a t i o n t o the f l o o r area they occupy.  These  f i r m s must t r i p l e t h e i r s a l e s volume i n order to a t t a i n minimum standard of e q u i v a l e n t types of b u s i n e s s e s .  the  Since  the m a j o r i t y of b u s i n e s s e s t h a t d i d not p r o v i d e f i n a n c i a l and o p e r a t i n g data f o r the study are s m a l l boutiques  and  s p e c i a l t y shops, i t can r e a s o n a b l y be assumed t h a t the of  s a l e s o f a major p o r t i o n of the business-mix  level  i n Gastown  i s not e c o n o m i c a l l y v i a b l e i n terms o f i n d u s t r y s t a n d a r d s . However, t h i s s t a t e m e n t . i s v a l i d o n l y i f c o n c u r r e n t o p e r a t i n g expense and markup l e v e l s are s i m i l a r t o those of non-Gastown firms.  I f Gastown b u s i n e s s e s have been able t o a t t a i n h i g h  maintained  markups or i f t h e i r expenses are lower than  those  of comparable types of e n t e r p r i s e s , they w i l l be a b l e t o s u r v i v e w i t h lower  s a l e s per square  foot  results.  Gastown b u s i n e s s e s have a t t a i n e d much lower s a l e s volume per square f o o t of r e t a i l space r e s u l t s than merchants l o c a t e d i n h i s t o r i c areas i n o t h e r c i t i e s . Economist  For example,  r e p o r t e d t h a t i n San F r a n c i s c o ' s G h i r a r d e l l i  The  Square  "restaurants i n 1967,  and  three  shops earned b e t t e r than $130  a square f o o t  times the n a t i o n a l average f o r most shopping  12 centres."  However, the f o l l o w i n g a n a l y s i s w i l l  demonstrate  t h a t t h i s does not n e c e s s a r i l y mean t h a t Gastown e n t e r p r i s e s are l e s s e f f i c i e n t than those i n San 2.  O p e r a t i n g Expenses and Due  Francisco.  Markups  t o the l i m i t e d space a v a i l a b l e on the  form, the o n l y expense f a c t o r t h a t was the q u e s t i o n n a i r e  study was  d i r e c t l y queried  t h a t of r e n t a l c o s t s .  determined t h a t r e n t a l charges f o r ground f l o o r i n Gastown vary  from 71C  t o $8.00 per  However, a n a l y s i s of t h i s d a t a by T a b l e XII)  The  It  square f o o t per  s i z e of b u s i n e s s  i s o l a t e s the f a c t t h a t , i n g e n e r a l ,  was  year.  (see  the  larger bargaining  b u s i n e s s e x p e r i e n c e t o o b t a i n lower r e n t a l c o s t s .  median r e n t a l charge per  square f o o t of r e t a i l  f o r f i r m s i n Category C i s $1.25  and  the d i s t r i c t pays more than $3.10  space  no major r e t a i l e r i n  per square f o o t .  S m a l l e r f i r m s are g e n e r a l l y charged a much rental rate.  The  square f o o t of  which i s double t h a t charged l a r g e r f i r m s . a n a l y s i s of the  higher  median r e n t f o r f i r m s w i t h s a l e s of l e s s  than $100,000 i s $2.40 to $2.50 per  survey data i n r e g a r d  to age  e a r l y stages o f r e h a b i l i t a t i o n  space,  In a d d i t i o n , of the  determined t h a t those f i r m s which opened i n Gastown the  in  locations  merchants have been a b l e t o u t i l i z e t h e i r g r e a t e r power and  survey  business during  (that i s , p r i o r to  May  COMPARISON OF RENTAL RATES BY SIZE OF FIRM (ground f l o o r  locations) Gastown R e n t a l Rates  S a l e s Volume  Range o f R e n t a l Rate Per Square F o o t ($)  Category A (yearly sales l e s s than $10,000) Category B (yearly sales $10,000-$99,000 Category C (yearly sales $100,000 and over) Comparison Data:  ($)  ' 1 . 3 3 - 8.00  2.40  0.83-7.40  2.50  . 0.71 - 3.10  1.25  Vancouver Market  General range, a l l r e t a i l l o c a t i o n s G r a n v i l l e , prime space Shopping C e n t r e s K e r r i s d a l e Area Department S t o r e s , shopping c e n t r e s Source:  Median o f R e n t a l Rate Per Square Foot  $1.50 - 12.00 10.00 - 12.00 4.00-5.00 - 1.50 4.00 2.00 2.50  F. B u c k l e y , Macaulay N i c o l l s M a i t l a n d and Co. L t d . , I n t e r v i e w w i t h t h e w r i t e r , October 2, 1970, and t h i s t h e s i s , see t e x t pp. 169-171.  1970) pay r e n t a l r a t e s which a r e 25 p e r c e n t t o 50 p e r c e n t lower than f i r m s which have r e c e n t l y come t o the a r e a .  The  r e n t a l r a t e f o r unimproved ground f l o o r space f o r medium and l a r g e f i r m s has r e c e n t l y s e t t l e d a t $2.50 t o $3.25.  This  suggests t h a t the p r e s e n t l e v e l o f Gastown r e n t s i s roughly  e q u i v a l e n t to o l d e r shopping d i s t r i c t s ,  such as K e r r i s d a l e ,  but l e s s than t h a t in.Shopping Centres and w e l l below the r e n t charged f o r prime l o c a t i o n s on G r a n v i l l e S t r e e t Table X I I ) .  (see  A number of the o l d e r merchants are paying  which are w e l l below the minimum f o r any  other  rents  Vancouver  retail location. The which has  segment of p r o p e r t y  owners i n the Old Townsite  committed i t s e l f most h e a v i l y to r e n o v a t i o n  and  r e h a b i l i t a t i o n have begun to r e n t space on a three year l e a s e b a s i s , w i t h two should  year renewable o p t i o n s .  This action  slow the t r e n d of r a p i d l y i n c r e a s i n g r e n t s  s t a b i l i z e them  (at l e a s t over the next three years) i n the  $3.00 t o $3.50 per square f o o t range. allow r e t a i l  and  tenants  to begin  These l e a s e s  will  to p l a n f o r the long run  and  e s t a b l i s h a s t a b l e base i n Gastown. A more meaningful e v a l u a t i o n of r e n t a l c o s t s be o b t a i n e d  by c o n s i d e r i n g how  t h i s expense as a percentage  of s a l e s volume compares t o i n d u s t r y standards XIII).  Once a g a i n ,  import shops, and  can  (see  Table  the l a r g e r f i r m s , such as f u r n i t u r e s t o r e s ,  c l o t h i n g s t o r e s with s a l e s volumes over  $10,000 per year, have achieved to i n d u s t r y standards.  the b e s t r e s u l t s i n r e l a t i o n  Although a few major f i r m s appear  to have a l l o c a t e d an e x c e s s i v e  p o r t i o n o f s a l e s income t o  r e n t a l expenses, most have been able t o h o l d r e n t a l c o s t s w e l l below e q u i v a l e n t i n d u s t r y averages.  COMPARISON OF RENTAL EXPENSE AS PERCENTAGE OF SALES DATA BY RETAIL CATEGORY Standard  Retail  i n d u s t r y Average: Rental Expense as a Percentage of Sales (1969)  Category  Gastown O p e r a t i n g R e s u l t s No. of Range of Firms . Rental Expense Reporas a Percenting tage of Sales  (Percent) I. II. III.  IV.  V.  (Percent)  Median of Rental Expense as a Percentage of S a l e s  Percentage of Firms Above Industry Average  (Percent)  (Percent)  1.95  1.71 - 14.00  7.20  40.0  3.47  2.08 - 11.90  4.20  50.0  Apparel and Shoe Stores (yearly s a l e s $10,000 and over)  4.12  1.67 - 22.27  6.43  37.5  Miscellaneous S p e c i a l t y Goods Boutiques (yearly s a l e s l e s s than $10,000)  5.60  3.75 - 40.00  16.50  22.2  Miscellaneous S p e c i a l t y Goods S t o r e s (yearly s a l e s over $10,000)  5.05  1.70 - 16.00  3.13  >66.7  Furniture  Stores  Restaurants and Night Clubs  Total Source:  32  Accounting C o r p o r a t i o n of America, Barometer of Small B u s i n e s s , Vol..21 ( A p r i l , 1970), pp. 23-60 and t h i s t h e s i s , see t e x t , p. 171-173.  40.6  The v a s t m a j o r i t y o f s m a l l shops and boutiques pay e x c e s s i v e r e n t a l fees i n r e l a t i o n t o t h e i r s a l e s volume. median percentage r e n t almost t h r e e times if  The  (16.5 p e r c e n t ) f o r s m a l l shops i s  t h a t o f comparable r e t a i l  types.  Even  the average s m a l l - s c a l e merchant has been able t o r e a l i z e  a maintained  markup o f 50 p e r c e n t on r e t a i l , he has a v a i l a b l e  o n l y 33 1/2 cents out o f every s a l e s d o l l a r t o pay a l l expenses, o t h e r than those a t t r i b u t a b l e t o merchandise and r e n t costs. Although gathered  i n f o r m a t i o n about wage c o s t s was n o t  as p a r t o f the q u e s t i o n n a i r e survey,  the w r i t e r d i d  determine t h r e e r e l e v a n t f a c t s d u r i n g d i s c u s s i o n s with Gastown merchants.  Firstly,  because the average Gastown employee i s  both young and i n e x p e r i e n c e d , most b u s i n e s s e s minimum l e g a l h o u r l y wage r a t e .  pay only the  I n a d d i t i o n , many o f the  owner-operators o f s m a l l shops take a very low p r o p r i e t o r ' s wage, i n order t o conserve business of  working c a p i t a l and t o a l l o w the  t o expand i t s investment  t h e s m a l l boutiques  (particularly —>.  the "hippy"  i n stock.  F i n a l l y , many  those r u n by members o f  •  community) have been a b l e to o b t a i n a s u b s t a n t i a l  amount o f f r e e l a b o u r because f r i e n d s o f the owners have been willing  t o work i n these shops without  these f a c t s suggest  pay.  In  combination,  t h a t wage expenses of Gastown  businesses  are g e n e r a l l y lower than those o f f i r m s l o c a t e d elsewhere i n Vancouver.  Even though, i n a b s o l u t e terms, i t i s l i k e l y t h a t the t o t a l o p e r a t i n g expenses o f Gastown e n t e r p r i s e s a r e lower than those o f other Vancouver merchants, the m a j o r i t y o f b u s i n e s s e s do not have a s u f f i c i e n t l y l a r g e s a l e s base t o support these c o s t f a c t o r s .  F o r example, the median s a l e s  volume o f Category A merchants i f o n l y $6,000, which, even when a l l c o s t s o f doing b u s i n e s s a r e i g n o r e d , amounts t o l e s s than 2/3 of the average couver.  13  income her household  i n Van-.  ' • I f the t y p i c a l f i r m i n Category A pay $25 p e r month  for u t i l i t i e s  and a telephone, t h i s expense amounts t o 5 per-  cent o f s a l e s over the course o f a y e a r .  The A c c o u n t i n g  C o r p o r a t i o n o f America r e p o r t e d t h a t , i n 1969, s m a l l v a r i e t y stores  (annual gross volume of $25,000 t o $50,000) pay o n l y  1.62 p e r c e n t o f s a l e s f o r u t i l i t i e s w h i l e g i f t and n o v e l t y shops and women's s p e c i a l t y shops averaged 1.76 p e r c e n t  1.63 p e r c e n t and  respectively. ^ 1  The n e g a t i v e e f f e c t o f the inadequate  s a l e s base  c h a r a c t e r i s t i c o f many o f these e n t e r p r i s e s may be reduced as a r e s u l t o f the l a r g e r s a l e s volume i n c r e a s e s a n t i c i p a t e d i n Gastown  (Chapter V noted t h a t a c o n s e r v a t i v e estimate of  s a l e s growth d u r i n g the next year would be 20 p e r c e n t ) .  If  s a l e s volume does, i n f a c t , i n c r e a s e s u b s t a n t i a l l y over the s h o r t run, t h i s w i l l d i l u t e the h i g h overhead  expense l e v e l s  and enable a l a r g e r p o r t i o n o f Gastown b u s i n e s s e s t o produce profit.  However, merchants w i l l b e n e f i t o n l y i f expense  l e v e l s do n o t i n c r e a s e as w e l l .  I f o p e r a t i n g and overhead  c o s t s , such as wage expenses and at  the p r e s e n t  but any  r e n t s , do not  stabilize  l e v e l , i n c r e a s e s i n these f a c t o r s w i l l  cancel  gains produced by s a l e s growth. Markup l e v e l s a t t a i n e d by Gastown b u s i n e s s e s  a l s o examined i n f o r m a l l y . b y the w r i t e r . managers of two  import  t i v e o f Category  shops  Interviews  were  with  the  (which are g e n e r a l l y r e p r e s e n t a -  C f i r m s ) determined t h a t markup on  retail  i s a t l e a s t 10 p e r c e n t above the i n d u s t r y average f o r s m a l l v a r i e t y and g i f t and n o v e l t y s t o r e s . ^ of  However, the  these s t o r e s to c a p i t a l i z e on t h i s advantage and  ability turn i t  i n t o h i g h p r o f i t s , w i l l be p r o v e n o n l y when s u f f i e n t s a l e s experience  has been b u i l t up so t h a t markdown r e s u l t s  be taken i n to  account.  Markup l e v e l s i n two Category  can  s m a l l boutiques  ( t y p i c a l of  A e n t e r p r i s e s ) l o c a t e d i n Gastown were a l s o examined  d u r i n g the study.  The  author was  granted p e r m i s s i o n by  owners of a l e a t h e r goods boutique  the  and a s m a l l women's a p p a r e l  shop t o examine the c o s t i n g of a number of p i e c e s of merchand i s e manufacturing c o s t s and  on the premises.  Because of low  labour  the e l i m i n a t i o n o f ' a l l middlemen between the manu-  f a c t u r e r and  the r e t a i l e r , the markup on r e t a i l  examined was  more than 50 p e r c e n t . ^  maintained  1  of a l l items  In comparison,  the  markup f o r small, women's s p e c i a l t y s t o r e s i n the t  17 U n i t e d S t a t e s i n 1969 these  was  o n l y 38.48 p e r c e n t .  f a c t o r s can o n l y be p r o p e r l y e v a l u a t e d  Once a g a i n , i n r e l a t i o n to  the a s s o c i a t e d markdown l e v e l s and s u f f i c i e n t time has n o t passed f o r meaningful  c o n c l u s i o n s to be drawn.  Even though  the s u p p o r t i n g data i s r a t h e r l i m i t e d , i t s t i l l  appears t o  be r e a s o n a b l e to assume t h a t , due to the unique nature of the merchandise handled by Gastown merchants, markup  levels  are h i g h e r than t h a t of non-Gastown r e t a i l e r s . S t a t i s t i c s which might be u t i l i z e d  to compare the  e f f i c i e n c y of Gastown b u s i n e s s e s t o t h a t of e n t e r p r i s e s l o c a t e d i n o t h e r h i s t o r i c d i s t r i c t s a r e not a v a i l a b l e . i s s u f f i c i e n t data t o j u s t i f y the assumption  However, there  t h a t the p o t e n t i a l  e x i s t s f o r Gastown r e t a i l e r s t o be as e f f i c i e n t , i n terms o f p r o d u c t i v i t y of expense d o l l a r s and r e t u r n on investment, as merchants i n San F r a n c i s c o and o t h e r c i t i e s which c o n t a i n h i s t o r i c commercial  areas.  Because the l e v e l of r e n t s and wages i n Gastown i s 18 l e s s than t h a t p a i d by San F r a n c i s c o merchants  and the main-  t a i n e d markup e x p e r i e n c e o f r e t a i l e r s i n the two l o c a t i o n s i s p r o b a b l y similar., the p r o d u c t i v i t y o f b u s i n e s s e s i n the O l d Townsite  can be equal t o , or even b e t t e r than, those i n  San F r a n c i s c o , even though these f i r m s produce s a l e s volume t o f l o o r area r a t i o .  a much lower  That i s , the lower o p e r a t i n g  expenses c h a r a c t e r i s t i c of Gastown b u s i n e s s e s w i l l  enable them  to a t t a i n a reasonable p r o f i t on a much lower l e v e l of s a l e s .  3.  C a p i t a l Investment and I t was  Return on  Investment  determined from the q u e s t i o n n a i r e  t h a t the amount of c a p i t a l i n v e s t e d i n Gastov/n by f i r m s , e x c l u s i v e of t h a t a l l o c a t e d to land and ranged from $1200 t o $350,000.  survey reporting  buildings,  In a d d i t i o n , the  estimated  t o t a l c a p i t a l investment by a l l n i n e t y - e i g h t . Gastown-compatibl f i r m s exceeds $2.2 mitment t h a t has  million.  In view of the l a r g e c a p i t a l com-  been made by commercial f i r m s i n the  Townsite, i t i s e v i d e n t  t h a t the trend of  investment-related  f a c t o r s t h a t w i l l be examined i n t h i s s e c t i o n are important to the f u t u r e of the The  extremely  district.  f i n a l s e c t i o n of the q u e s t i o n n a i r e  ponsdents to p r o v i d e  asked r e s -  estimates of the a f t e r - t a x r e t u r n  investment t h a t would be r e a l i z e d by t h e i r f i r m s i n r  Only two  Old  merchants p r e d i c t e d a l o s s d u r i n g  on  1970.  the c u r r e n t  year  w h i l e more than 1/3  reported  t h a t r e t u r n on investment would  exceed 40 p e r c e n t .  These responses were f a r too o p t i m i s t i c ,  p r o b a b l y because they were based on i n s u f f i c i e n t knowledge of a c t u a l r e s u l t s ; t h e r e f o r e , they c o u l d not be u t i l i z e d v a l i d estimates of the p r o f i t a b i l i t y Consequently/ i t was  of these  businesses.  necessary t o r e s o r t t o a l t e r n a t i v e  a n a l y t i c a l t o o l s which r e l a t e to return-on-investment do not measure t h i s f a c t o r d i r e c t l y . ployed  were:  as  The  three r a t i o s  but em-  i.  Net s a l e s t o o p e r a t i n g a s s e t s (turnover o f o p e r a t i n g a s s e t s ) ,  ii.  Net s a l e s t o i n v e n t o r y (inventory turnover),and  iii.  Net s a l e s to t a n g i b l e net worth (turnover o f t a n g i b l e n e t worth). In order  to determine whether the c a p i t a l  i n Gastown b u s i n e s s e s was being  invested  utilized efficiently,  sales  volume l e v e l s were compared t o the amount of funds employed i n the o p e r a t i o n  o f these f i r m s .  I f the assumption i s made 19  t h a t a l l funds have been i n v e s t e d information assets.  can be u t i l i z e d  i n operating  assets,  to determine turnover  this  of o p e r a t i n g  I f t h i s r a t i o i s extremely high i n r e l a t i o n t o the  i n d u s t r y average, i t i n d i c a t e s t h a t the f i r m i s underfinanced and would l i k e l y produce a higher  s a l e s volume.of a d d i t i o n a l /  c a p i t a l was made a v a i l a b l e to the b u s i n e s s .  When i t i s much  lower than the i n d u s t r y s t a n d a r d , funds a r e probably  being  u n d e r u t i l i z e d w i t h i n the f i r m . The  data i n c l u d e d  i n Table XIV suggests t h a t the  "average f i r m " i n each s a l e s volume category has a t t a i n e d a reasonable l e v e l o f s a l e s i n r e l a t i o n to the t o t a l employed.  However, there  funds  i s a high degree o f v a r i a b i l i t y  between the r e s u l t s of i n d i v i d u a l f i r m s as turnover 20 range from 0.8 t o 14.0 times p e r year.  levels  The f a c t must be  emphasized, once more, t h a t these o p e r a t i n g  r e s u l t s are  meaningless i f the s a l e s base i s not s u f f i c i e n t t o support the l e v e l o f o p e r a t i n g  expenses.  COMPARISON OF CAPITAL INVESTMENT BY SIZE OF FIRM Gastown Operating R e s u l t s  S a l e s Volume,  (1)Median• C a p i t a l Investment (Debt and Equity) ($)  {2] Median Sales Volume ($)  Category A (yearly sales l e s s than $10,000)  2,000  6,000  Category B (yearly sales $10,000-99,999)  8,300  105,000  Category C . (yearly sales $100,000 and over)  Turnover o f Operating A s s e t s o f "Average" Gastown Firm* ( 2 T 1) (times p e r year)  Range of Turnover o f Operat i n g A s s e t s of Reporting Firms (times per year)  3.0 times  0.8  15,000  1.8  1.0 -14.0  285,000  2.7  1.5  3.5 times  -6.3  Standard Turnover o f Operating Assets: Retail I n d u s t r y (U.S.A.), 1958 - 1959  2.7,  *Assumed t h a t a l l c a p i t a l has been i n v e s t e d i n o p e r a t i n g a s s e t s . Source:  R.W. Johnson, F i n a n c i a l Management, Boston: and t h i s t h e s i s , see t e x t , p. 178.  A l l y n and Bacon, 1964, p. 43,  ID  Because the major area i n which funds are employed in retail  f i r m s i s investment  i n merchandise f o r r e s a l e , a  b e t t e r measure of the e f f i c i e n c y of the u t i l i z a t i o n of funds i n t h i s type of business  i s p r o v i d e d by a n a l y s i s of the  ratio  21 of s a l e s to investment  i n inventory.  This r e l a t i o n s h i p ,  which i s a l s o known as the s t o c k - t o - s a l e s r a t i o , shows the number of times  t h a t i n v e n t o r y has turned over i n a s p e c i f i c  p e r i o d of time.  The  r e s u l t s of t h i s a n a l y s i s are i n t e r p r e t e d  i n a manner s i m i l a r to t h a t of the p r e v i o u s r a t i o — i f  i t is  h i g h i n r e l a t i o n to the i n d u s t r y average, too l i t t l e has i n v e s t e d i n i n v e n t o r y w h i l e , i f i t i s extremely  low,  been  excessive  funds have been t i e d up i n i n v e n t o r i e s . In g e n e r a l , Gastown b u s i n e s s e s  appear to have over-  22 invested i n inventory category which has  (see Table XV).  The  only  s e t stock l e v e l s reasonably  retail  in line  s a l e s i s the one which c o n t a i n s the s m a l l boutiques i s , R e t a i l Category  IV).  The  with  (that  f a c t t h a t the o p e r a t i n g a s s e t s  turnover r a t i o i s s a t i s f a c t o r y i n r e l a t i o n to i n d u s t r y s t a n dards, w h i l e the s a l e s t o i n v e n t o r y r a t i o i s not, i n d i c a t e s t h a t Gastown merchants have not taken  i n t o account  their  lower o p e r a t i n g c o s t s when a l l o c a t i n g funds w i t h i n the f i r m . That i s , although c a p i t a l to pay  these f i r m s r e q u i r e lower l e v e l s of working  r e n t and wage expenses, they have not  the s a v i n g to produce h i g h e r p r o f i t s .  utilized  I n s t e a d , they have  a l l o c a t e d - a g r e a t e r p o r t i o n of t h e i r t o t a l funds to  investment  COMPARISON OF NET SALES TO INVENTORY DATA BY.RETAIL CATEGORY Gastown Operating  Standard  Retail  Category  Industry Median: Net Sales t o Inventory (1968)  No. of Firms Reporting  (times per year)  Results  Range o f Net Sales t o Inventory Ratios  Median o f Net Sales t o Inventory Ratios  (times per year)  (times per year)  Percentage of Firms Above I n d u s t r y Median (Percent)  I.  F u r n i t u r e Stores  5.0  2.0 -  4.7  2.7  III.  Apparel and Shoe Stores (yearly s a l e s $10,000 and over)  6.1  1.5 - 10.0  3.8  37.5  Miscellaneous S p e c i a l t y Goods Boutiques (yearly s a l e s l e s s than $10,000)  4.2  1.2 - 12.0  4.5  50.0  4.0  2.0 -  3.2  20.0  IV.  V. • M i s c e l l a n e o u s S p e c i a l t y Goods Stores (yearly s a l e s over $10,000) Total Source:  5.6  23  Dun's Review, "The Ratios of R e t a i l i n g , " V o l . 96 (Setpember 1970), p. 77> and t h i s t h e s i s , see t e x t , p. 180.  0.0  30.4  i n stocks which has ratio.  r e s u l t e d i n a reduced  However, the g e n e r a l l y low  stock-to-sales  s a l e s to i n v e n t o r y  c h a r a c t e r i s t i c of e n t e r p r i s e s i n the area may  level  a c t u a l l y be  a  - r e s u l t of a r a t i o n a l d e c i s i o n on the p a r t of these merchants. I f they a n t i c i p a t e l a r g e s a l e s i n c r e a s e s inventory  l e v e l s may  p a t i o n of i n c r e a s e d  i n the  have been s e t a t high demand.  mined t h a t , i n order  future,  levels in antici-  A l s o , these f i r m s may  to p r e s e n t  have d e t e r -  a balanced merchandise s e l e c -  t i o n to t h e i r customers, they must m a i n t a i n i n v e n t o r i e s r e l a t i v e l y high l e v e l s , i r r e g a r d l e s s of present  at  s a l e s volume.  I f t h i s i s , i n f a c t , the case, these merchants have demons t r a t e d a w i l l i n g n e s s t o accept lower turnover present  time i n order The  and  the  to promote l o n g term s a l e s growth.  f i n a l measure t h a t was  the p r o f i t a b i l i t y  rates at  u t i l i z e d t o examine  e f f i c i e n c y of Gastown b u s i n e s s e s  was  23 the turnover  to t a n g i b l e net worth  ratio.  T h i s r a t i o shows how a c t i v e l y i n v e s t e d c a p i t a l i s being put to work by i n d i c a t i n g i t s turnover d u r i n g a p e r i o d . I t helps measure the p r o f i t a b i l i t y of the i n v e s t ment. Both overwork and underwork of t a n g i b l e net worth are c o n s i d e r e d unhealthy. • 2 4  I t i s evident boutiques and  from the data i n T a b l e XVI  c l o t h i n g shops have employed t h e i r e q u i t y  much more e f f i c i e n t l y than the goods s t o r e s .  that  T h i s may  f u r n i t u r e and  small funds  large specialty  i n d i c a t e t h a t they have planned  their  COMPARISON OF NET  SALES TO TANGIBLE NET  Gastown Operating  Standard  Retail  Industry Median: Net Sales to Tangible Net Worth (1968)  Category  No. of Firms Reporting  II. III.  IV.  V.  Furniture  Stores  Range Sales gible Worth  of Net to TanNet Data  (times per year)  (times per year) I.  WORTH DATA BY RETAIL CATEGORY  2.58  Restaurants and Night Clubs  Results  Median of Net S a l e s to T a n g i b l e Net Worth (times per year)  1.54  -  2.59  2.22  1.00  -  14.00  3.90  Percentage of Firms Above Ind u s t r y Median (Percent) 25.0  A p p a r e l and Shoe Stores (yearly s a l e s $10,000 and over)  3.78  1.37  -  9.01  4. 68  75.0  Miscellaneous S p e c i a l t y G-ods Boutiques (yearly s a l e s l e s s than $10,000)  3.60  0.75  -  9.60  3.58  42.9  Miscellaneous S p e c i a l t y Goods S t o r e s (yearly s a l e s over $10,000)  3.51  1.35  -  12.50  2.22  33.3  Total  48.0  29  *Not a v a i l a b l e . Source:  Dun's Review, "The R a t i o s of R e t a i l i n g , " V o l . 96 and t h i s t h e s i s , see t e x t , p. 182-184.  (September 1970), p.  77,  a l l o c a t i o n of c a p i t a l m o r e / e f f i c i e n t l y o r t h a t some e x t e r n a l force  (such as requirements  sources) has compelled in  s e t by t h e i r l o a n and r i s k  capital  them t o h o l d these f a c t o r s r e a s o n a b l y  l i n e with industry standards.  The l a r g e r merchants may  have o v e r e s t i m a t e d the s a l e s p o t e n t i a l o f the area o r , once a g a i n , the apparent m i s a l l o c a t i o n may i n d i c a t e a r a t i o n a l d e c i s i o n t o s e t investment i n c r e a s e d f u t u r e demand. town may have adjudged  a t a high l e v e l i n a n t i c i p a t i o n of The l a r g e - s c a l e o p e r a t o r s i n Gas-  the l o n g range p r o f i t p o t e n t i a l o f the'  d i s t r i c t t o be so a t t r a c t i v e t h a t they have been w i l l i n g t o o v e r i n v e s t i n i n v e n t o r y and r e n o v a t i o n s t o p h y s i c a l  plant  over the s h o r t r u n . 4.  Management S k i l l s The p r o f i t performance  and c o n t i n u e d e x i s t e n c e o f  any b u s i n e s s i s h e a v i l y dependent upon the s k i l l of  i t s management.  and e x p e r i e n c e  That t h i s i s t r u e i s evidenced by the  f i n d i n g s o f numerous b u s i n e s s s t u d i e s .  F o r example, the  U n i t e d S t a t e s Small Business A d m i n i s t r a t i o n r e c e n t l y r e p o r t e d t h a t "nine out o f 10 [business], f a i l u r e s a r e caused by a 25 weakness i n the management o f the b u s i n e s s , " study by Dun and B r a d s t r e e t determined  and a 1966  t h a t 92.3 p e r c e n t o f  all  r e t a i l f a i l u r e s i n t h a t year were caused by " i n e x p e r i e n c e 26 and incompetence" o f management. Although management s k i l l  and e x p e r i e n c e cannot be  measured q u a n t i t a t i v e l y , i t i s p o s s i b l e t o examine  specific  f a c t o r s within, a b u s i n e s s i n order to determine elements are g e n e r a l l y p r e s e n t or l a c k i n g . list  of e i g h t q u e s t i o n s was  mining  prepared  the l e v e l of managerial  whether the  Therefore, a  as a t o o l f o r d e t e r -  experience and the degree of  u t i l i z a t i o n of management techniques of Gastown b u s i n e s s e s . T h i s l i s t was fic  then a p p l i e d t o s e l e c t e d f i r m s w i t h i n two  r e t a i l c a t e g o r i e s which were chosen as g e n e r a l l y r e p r e -  s e n t a t i v e of the business-mix The  i n the O l d  Townsite.  t h r e e import shops examined i n T a b l e XVII i n  Gastown are f a i r l y in  speci-  t y p i c a l of the l a r g e f i r m s  (Category  the area w h i l e t h r e e l e a t h e r goods boutiques  s e n t a t i v e of Gastown's many s m a l l shops management p r o f i l e o f these two  C)  are r e p r e -  (Category A ) .  types of merchants  XVII) i s very s t r i k i n g as i t e x p l i c i t l y underscores  The  (see T a b l e the  d i f f e r e n c e s i n o p e r a t i n g methods and" b u s i n e s s knowledge between l a r g e and s m a l l f i r m s i n Gastown.  Large e n t e r p r i s e s  e x h i b i t a h i g h degree of management experience and u t i l i z e comprehensive b u s i n e s s t e c h n i q u e s .  On  tend t o  the o t h e r  hand, the m a j o r i t y of the s m a l l merchants are i n b u s i n e s s for  the f i r s t  time and operate t h e i r s t o r e s on a day-to-day  b a s i s , i n much the same manner as r e t a i l for  hundreds of y e a r s .  s t o r e s have operated  These s m a l l - s c a l e o p e r a t o r s g e n e r a l l y  do not employ s o p h i s t i c a t e d b u s i n e s s procedures u t i l i z e d to reduce  t h a t can  be  the u n c e r t a i n t y a s s o c i a t e d w i t h o p e r a t i n g  d e c i s i o n s and g a i n c o m p e t i t i v e advantage.  That i s , the s m a l l  boutiques do not r e a l i z e the p o t e n t i a l b e n e f i t s a v a i l a b l e  COMPARISON OF FACTORS INDICATIVE OF MANAGEMENT SKILL AND EXPERIENCE FOR  SIX REPRESENTATIVE GASTOWN BUSINESSES  R e t a i l Category A; Leather Goods Boutiques. (LGB) R e p r e s e n t a t i v e o f Small Gastown Shops  R e t a i l Category C: Import Shops (is) R e p r e s e n t a t i v e o f Large Gastown Stores  LGB-1 No  IS-1 Yes  LGB-2 No  No  Yes  No  No  LGB-3 No No  ;  No  No  No  No  No  No  No  1. Is the s t o r e run by a h i r e d manager, r a t h e r than an owner-operator? 2. Has the manager had p r i o r experience i n t h i s l i n e o f business, o r one related to i t ? 3. Was some form o f market r e s e a r c h conducted before the d e c i s i o n was made t o enter Gastown? 4. Does the f i r m employ a s p e c i a l i z e d buyer to purchase stock f o r the store? ( i . e . : Is there a separate buyer and manager?) 5. Is a q u a l i f i e d accountant r e t a i n e d t o oversee bookkeeping a c t i v i t i e s ? 6. Are y e a r l y s a l e s and expense budgets . prepared by management, and a r e these estimates u t i l i z e d as o p e r a t i n g guide lines? 7. Are f o r m a l i z e d stock c o n t r o l procedures u t i l i z e d by the firm? 8. Is the s t o r e s t i l l owned by the same person who o r i g i n a l l y opened i t i n Gastown?  IS-2 Yes  IS-3 Yes  Yes  Yes Yes  Yes  No Yes  Yes  Yes  No  Yes  Yes  Yes  Yes  Yes  Yes .  Yes  Yes  Yes  Yes  Yes  Yes  :  No  No  No  No  No  No .  Yes  No  No.  1  1  0  T o t a l P o s i t i v e Responses*  *"Yes" responses g e n e r a l l y i n d i c a t e , the presence management techniques. Source:  See t e x t , pp. 184-185.  8  o f management experience and knowledge o f  through the use of modern accounting, and  research,  control,  s p e c i a l i z a t i o n o f f u n c t i o n procedures. The  d i f f e r e n c e i n l e v e l s o f b u s i n e s s knowledge and  experience between Category A and Category C f i r m s have a l r e a d y i n f l u e n c e d t h e i r performance.  T a b l e XVIII  illus-  t r a t e s the f a c t t h a t l a r g e f i r m s have, on the whole, reasonable o p e r a t i n g fared rather poorly.  achieved  r e s u l t s w h i l e s m a l l e r b u s i n e s s e s have Although Category C f i r m s appear t o have  i n v e s t e d too much c a p i t a l i n r e l a t i o n t o t h e i r l e v e l o f s a l e s , t h i s can be c o r r e c t e d over the s h o r t r u n by withdrawing c a p i t a l as s a l e s as made or i t can be allowed t o remain as is,  i n a n t i c i p a t i o n o f f u t u r e s a l e s growth.  Category A  b u s i n e s s e s e x h i b i t investment l e v e l s t h a t a r e b e t t e r ; r e l a t e d to s a l e s volume b u t i t i s d o u b t f u l  that t h e i r t o t a l  sales  are s u f f i c i e n t t o support the amount o f f l o o r space u t i l i z e d or the l e v e l o f expenses i n c u r r e d .  .  Commercial l e n d e r s have r e c o g n i z e d  the l a c k o f  experience g e n e r a l l y c h a r a c t e r i s t i c o f Gastown b u s i n e s s e s as they have demonstrated a r e l u c t a n c e firms.  ;  T h i s has hindered  such an extent  t o make loans  t o these  the development o f the area t o  t h a t one of Gastown's major d e v e l o p e r s was  moved to. complain t h a t " r e g u l a r l o a n sources w i l l not accept 27 mortgages i n t h i s  area."  SUMMARY OF OPERATING FACTOR ANALYSIS BY SIZE OF FIRM (Percentage of Reporting Firms with Operating R e s u l t s Above I n d u s t r y  Sales Volume  Percentage of Firms Above Minimum Economic D o l l a r Volume Per Square Foot Level (Percent)  Category A (yearly sales l e s s than $10,000): Category B (yearly sales $10,000-99,999) Category C (yearly sales $100,000 and over) Total Source:  Percentage of Firms Above Industry Average Rent as Percent of Sales (Percent)  Percentage of Firms Above Industry Median Net S a l e s to Inventory (Percent)  Percentage of Firms Above Industry Median Net Sales to T a n g i b l e Net Worth (Percent)  0.0  22.2  50.0  42.9  38.5  23.1  22.2  62.5  80.0  80.0  33*3  33.3  43.3  40.6  30.4  48.0  See t e x t , pp. 164-184.  Standards)  Implications  f o r the  The i n general,  Future  preceding  a n a l y s i s appears t o suggest t h a t , .  the l a r g e r Gastown b u s i n e s s e s are  sound w h i l e the s m a l l e r ones are not. two  p a r a l l e l trends  future.  Firstly,  months.  This f a c t implies  that  w i l l develop i n Gastown i n the- near  i t i s apparent t h a t , u n l e s s  or large sales increases failures will  economically  d r a s t i c changes  take p l a c e , a l a r g e number of b u s i n e s s  occur i n the Old Townsite d u r i n g  In a d d i t i o n , i t i s l i k e l y  the next s i x  that future additions  the Gastown business-mix w i l l c o n s i s t almost e n t i r e l y  to  of  large-scale firms. 'The  heavy a n t i c i p a t e d f a i l u r e r a t e w i l l  strike  the  51 merchants whose y e a r l y s a l e s volume i s l e s s than $10,000 most h e a v i l y .  I t i s t h i s group which has  not been a b l e  to  b u i l d a l a r g e enough s a l e s base to support t h e i r expenses has  provided  the owners w i t h very  Customer t r a f f i c and  low  and  p r o p r i e t o r ' s wages.  s a l e s volume i n Gastown w i l l , most  c e r t a i n l y , drop to a low  l e v e l from October to May  with  a b r i e f r e s p i t e p r i o r to Christmas; y e t these b u s i n e s s e s  only do  not possess s u f f i c i e n t working c a p i t a l to c a r r y them through this slack period.  In view, o f these problems, i t i s  t h a t many of t h e s e . f i r m s  evident  w i l l be f o r c e d out of b u s i n e s s or 28  will  s e l l out  to other i n d i v i d u a l s .  Even though t h i s f a i l u r e r a t e can be a f a i r degree of c e r t a i n t y , one  forecast with  unique c h a r a c t e r i s t i c of a  new,  h i s t o r i c d i s t r i c t must be taken i n t o account when  making p r e d i c t i o n s about business cause o f the immense appeal business  change i n Gastown.  of the area and  a t t i t u d e of entrepreneurs  ques, i t i s l i k e l y  t h a t every  who  the unorthodox  operate  small b o u t i -  enterprise that f a i l s  be re-opened by a d i f f e r e n t owner or t h a t another o p e r a t i o n w i l l take over the l o c a t i o n . supported  by the r e c e n t experience  t u a l l y every year  i n s t a n c e o f business  Be-  will  similar  This contention i s  i n the area as, i n v i r c l o s u r e d u r i n g the  the f i r m merely changed ownership or was  past  r e p l a c e d by  a  29 similar  operation. The  l e a d e r s of the Gastown business  community  are  very concerned about the f a t e of the small merchants i n the d i s t r i c t because they r e a l i z e t h a t the removal of these  firms  30 would s e r v e r l y damage the customer appeal  of the  However, no plans have been proposed t o p r o v i d e to  the s m a l l boutique o p e r a t o r s  and  area. assistance  i t i s u n l i k e l y that  programme w i l l be developed i n the near f u t u r e .  any  If action  i s taken to h e l p Gastown's s m a l l o p e r a t o r s , the programme should  i n c l u d e t r a i n i n g courses  i n business  procedures as  w e l l as a s s i s t a n c e i n making l o a n a p p l i c a t i o n s . a l s o i n c l u d e the e s t a b l i s h m e n t  I t could  of some procedure to a l l o w 3  s m a l l firms to o b t a i n c o n s u l t a n t and market r e s e a r c h The  advice.  t r e n d toward the entry of l a r g e - s c a l e businesse  i n t o the Gastown area i s a l r e a d y underway.  I t i s estimated  t h a t s i x o f the e l e v e n nev; developments t h a t have been announced f o r Gastown (see Map 7, Chapter  IV) w i l l i n c l u d e  o p e r a t i o n s w i t h y e a r l y s a l e s volumes i n excess o f $100,000. " The p r o j e c t e d median s a l e s volume o f these b u s i n e s s e s  will  be more than. 40 p e r c e n t h i g h e r than t h a t o f Category C f i r m s p r e s e n t l y " i n o p e r a t i o n i n the O l d Townsite. l a r g e i n terms o f s a l e s volume and investment  As w e l l as* b e i n g levels,  these  new e n t e r p r i s e s w i l l a l s o g e n e r a l l y employ e x p e r i e n c e d management and u t i l i z e  s o p h i s t i c a t e d business techniques.  The u n d e r l y i n g reasons behind t h i s t r e n d b a s i c a l l y r e l a t e t o the nature o f the entrepreneurs i n v o l v e d and the economic s i t u a t i o n i n Gastown. g i v e n the O l d Townsite  The r e c e n t e x t e n s i v e p u b l i c i t y  has emphasized the " i n s t a n t "  success  of the l a r g e u n i t s , such as the O l d S p a g h e t t i F a c t o r y and T r i d e n t Imports.  T h i s has a t t r a c t e d ' e x p e r i e n c e d b u s i n e s s  i n v e s t o r s who are i n t e r e s t e d i n l a r g e - s c a l e investment above average p r o f i t p o t e n t i a l .  with  These e n t r e p r e n e u r s c o n s i d e r  small o p e r a t i o n s t o be unappealing because they i n v o l v e a h i g h r i s k f a c t o r and a low a b s o l u t e r e t u r n on investment. A t the same time, a l a r g e o p e r a t i o n r e p r e s e n t s a more a p p e a l i n g tenant to Gastown p r o p e r t y owners because they a r e l e s s prone t o f a i l u r e and they a r e w i l l i n g to r e n t l a r g e a r e a s . These l a r g e e n t e r p r i s e s a r e a b l e t o o u t b i d s m a l l boutiques when v y i n g f o r r e n t a l space. l a r g e - s c a l e investment  In t o t a l , these f a c t o r s make  a t t r a c t i v e t o experienced  investors.  T h i s chapter has  examined the o p e r a t i n g  a t t a i n e d by Gastown-'compatible merchants and has  results determined  'that: 1. 2. 3. •  4.  .'• . • 5.  6.  a very s m a l l number of l a r g e - s c a l e b u s i n e s s e s produce the major p o r t i o n of t o t a l s a l e s i n Gastown; t h e r e i s a d i s p r o p o r t i o n a t e number of very s m a l l f i r m s i n the Old Townsite; the m a j o r i t y of l a r g e - s c a l e o p e r a t i o n s have a t t a i n e d a r e a s o n a b l e l e v e l of s a l e s i n r e l a t i o n to the . f l o o r area employed but the s m a l l f i r m s have not achieved s a t i s f a c t o r y r e s u l t s ; i n a b s o l u t e terms, o p e r a t i n g expenses of Gastown f i r m s are g e n e r a l l y lower and markup l e v e l s h i g h e r than those of b u s i n e s s e s l o c a t e d i n other areas i n Vancouver. However, when o p e r a t i n g expenses are c o n s i d e r e d i n r e l a t i o n to s a l e s , i t can be demons t r a t e d t h a t the l a r g e r f i r m s are o p e r a t i n g a t an economic l e v e l w h i l e s m a l l b u s i n e s s e s are not. Many of the s m a l l - s c a l e o p e r a t i o n s have not a t t a i n e d a l a r g e enough s a l e s base t o support the l e v e l of "operating and overhead expenses i n c u r r e d ; i n g e n e r a l , Gastown b u s i n e s s e s have a t t a i n e d a reasonable l e v e l of s a l e s i n r e l a t i o n to the t o t a l funds employed by these f i r m s . However, l a r g e - s c a l e b u s i n e s s e s appear t o have p v e r i n v e s t e d i n i n v e n t o r y w h i l e the s m a l l f i r m s have employed t h e i r e q u i t y funds more e f f i c i e n t l y than have the l a r g e r u n i t s . These r e s u l t s may r e f l e c t a r a t i o n a l d e c i s i o n by • l a r g e r merchants to s e t investment a t h i g h l e v e l s i n a n t i c i p a t i o n of i n c r e a s e d demand; the average l a r g e - s c a l e b u s i n e s s e x h i b i t s a h i g h degree of management experience and u t i l i z e s s o p h i s t i c a t e d b u s i n e s s techniques w h i l e the management of the s m a l l f i r m s i s g e n e r a l l y i n e x p e r i e n c e d and emp l o y s elementary o p e r a t i n g procedures. X— The  r e s e a r c h f i n d i n g s have been u t i l i z e d  to  t h r e e b a s i c c o n c l u s i o n s r e l a t e d to the p r e s e n t l e v e l e f f i c i e n c y , r a t e of b u s i n e s s  f a i l u r e , and  o p e r a t i o n of Gastown b u s i n e s s e s .  support of  f u t u r e s c a l e of  I t has. been determined t h a t ,  in- g e n e r a l , the l a r g e r Gastown e n t e r p r i s e s are sound w h i l e the m a j o r i t y o f s m a l l e r f i r m s are  economically inefficient  and u n p r o f i t a b l e .  The poor r e s u l t s a t t a i n e d by s m a l l - s c a l e  o p e r a t o r s suggest  t h a t a l a r g e number o f b u s i n e s s  failures  w i l l occur i n t h i s segment w i t h i n the next s i x months. is,  It  t h e r e f o r e , concluded t h a t f u t u r e a d d i t i o n s t o the Gastown  business-mix w i l l firms.  c o n s i s t almost e n t i r e l y o f l a r g e - s c a l e  Footnotes:  Chapter VI  T. W i l l o x , p u b l i s h e r of the Gastown Gazette, as c i t e d i n J . K h o u r i , " S p i r i t of Gastown Triumphs Over Lack o f Knowhow," The Vancouver Sun, J u l y 18, 1 9 7 0 , p . 21. 2 R.D. Entenberg, E f f e c t i v e R e t a i l and Market D i s t r i b u t i o n , Cleveland: The World P u b l i s h i n g . Co. , 19.66, pp. 164-165. 3 D.J. Duncan and D.F. P h i l l i p s , R e t a i l i n g : P r i n Methods, Homewood, 111.: I r w i n , 1967, p. 65.  c i p l e s and 4  ' " The n o n - q u a n t i f i a b l e f a c t o r s which i n f l u e n c e s a l e s and p r o f i t s of businesses have been c o n s i d e r e d under the a l l i n c l u s i v e heading of "management s k i l l s . " "*In order t o f u r t h e r p r o t e c t the c o n f i d e n c e of the businessmen who p r o v i d e d f i n a n c i a l data, i n d i v i d u a l respondents or f i r m s i n c l u d e d i n s p e c i f i c c a t e g o r i e s w i l l not be i d e n t i f i e d i n f o o t n o t e s throughout t h i s s e c t i o n of the t h e s i s . ^The i d e a f o r t h i s c a t e g o r i z a t i o n system was o r i g i n a l l y proposed by Mr. B. Ewald, P r e s i d e n t of the Gastown Merchants A s s o c i a t i o n , d u r i n g a p e r s o n a l i n t e r v i e w with the w r i t e r (September 4, 1970) . 7  * Responses were o b t a i n e d from two Gastown a r t g a l l e r i e s but these were not u t i l i z e d i n the study because they c o u l d not be r e a l i s t i c a l l y i n c l u d e d i n any r e t a i l c a t e gory w i t h o u t e i t h e r i n v a l i d a t i n g the c l a s s i f i c a t i o n or a l l o w i n g i d e n t i f i c a t i o n of the responses of s p e c i f i c f i r m s . 8  I t i s n e c e s s a r y f o r -the reader to understand the nature of the i n d u s t r y standards employed i n the study i f he wishes to determine the v a l i d i t y of the comparisons t h a t have been made. Because i n d u s t r y standards have been taken from a number of sources, t h e r e are some d i f f e r e n c e s between the components o f i n d u s t r y groups f o r which standard r a t i o s are prepared. For example, the A c c o u n t i n g C o r p o r a t i o n of America r e p o r t s o p e r a t i n g r e s u l t s f o r a l l types of s m a l l c l o t h i n g s t o r e s combined, w h i l e Dun's Review compiles data f o r women's ready-to-wear s t o r e s o n l y . The standard i n d u s t r y c a t e g o r i e s by source which were s e l e c t e d as most comparable to. the r e t a i l c a t e g o r i e s i n Gastown are as f o l l o w s :  Footnote  i  Source Real Estate Research Corp.  Dunn's Review  (Continued)  Gas town R e t a i l Category I I I : Apparel and Shoe Stores (sales $10,000 and over)  Gastown R e t a i l Category IV: Mis. S p e c i a l t y Goods Boutiques (sales l e s s than $10,000)  Gastown R e t a i l Category V: Misc. S p e c i a l t y Goods S t o r e s (Sales over $10,000)  Gastown R e t a i l Category I : Furniture Stores  Gastown R e t a i l Category I I : Restaurants and Night Clubs  F u r n i t u r e and Household Furnishings  E a t i n g and Drinking Places  Women s Apparel/Shoes -Women's/Men s C l o t h i n g and Furnishings  Variety Stores/Other Stores  Variety Stores/Other Stores  Restaurants (up t o $200,000 annual gross volume)  Combined Apparel Group ($25,000$50,000 annual gross volume)  G i f t and Novelty S t o r e s ($25,000$50,000 annual gross volume)  V a r i e t y Stores ($25,000$50,000 annual gross volume)  Miscellaneous General Merchandise Stores  V a r i e t y Stores  •  Accounting Corp. of America  8  Furniture Stores ($100,000- . $300,000 annual gross volume) Furniture Stores  —  1  1  ,Women's Ready-to-wear Stores  D o l l a r volume per square f o o t of r e t a i l space i s a l s o known as s a l e s per square f o o t . ^ A w e l l founded c r i t i c i s m t h a t can be d i r e c t e d a t the i n d u s t r y standard employed t o e v a l u a t e the d o l l a r volume per square f o o t r e s u l t s i n Gastown concerns the age of t h i s d a t a . These r a t i o s were prepared by the R e s l E s t a t e Research C o r p o r a t i o n i n 19 54 so they may be i n v a l i d because they are outdated. The combined e f f e c t s of i n f l a t i o n , the changing nature of r e t a i l i n g (that i s , the expansion i n s c a l e t h a t has o c c u r r e d s i n c e 1954 and changes t h a t have a l t e r e d the productmix h a n d l e d ) , and m o d i f i c a t i o n s i n r e n t l e v e l s and p r o d u c t i v i t y t h a t have taken p l a c e s i n c e 1954 w i l l l i k e l y have a l t e r e d the l e v e l of the d o l l a r volume t o r e t a i l space r e l a t i o n s h i p t h a t i s adjudged t o be e c o n o m i c a l l y sound.• T h i s outdated standard has been employed i n the study because an e x t e n s i v e l i t e r a t u r e search f a i l e d to uncover more c u r r e n t d a t a . T h e r e f o r e , the r e s u l t s of t h i s p o r t i o n of the a n a l y s i s must be i n t e r p r e t e d w i t h extreme c a u t i o n . I f consumer p r i c e index data i s a p p l i e d t o the s a l e s per square f o o t s t a n d a r d , i t can be a d j u s t e d t o remove the i n f l u e n c e of i n f l a t i o n but w i l l not r e f l e c t changes a t t r i b u t a b l e t o other f o r c e s (such as changing s c a l e ) . The p r i c e of consumer goods i n Canada rose 39.5 p e r c e n t from 1954 t o 1969. When the economic range of s a l e s per square f o o t standard i s a d j u s t e d by t h i s percentage, the r e s u l t s presented i n T a b l e XI are a l t e r e d somewhat. The percentage of f i r m s above the minimum economic range of d o l l a r volume per square f o o t o f r e t a i l space i n C a t e g o r i e s I I , I I I , and V decreases from 50.0 p e r c e n t , 62.5 p e r c e n t , and 66.7 p e r c e n t t o 25.0 p e r c e n t , 50.0 p e r c e n t , and 50.0 p e r c e n t , r e s p e c t i v e l y . No f i r m s i n C a t e g o r i e s I and IV meet the minimum economic s t a n d a r d . The apparent v a l i d i t y of the p r e c e d i n g c o n v e r s i o n i s a t t e s t e d to by d a t a r e p o r t e d i n one secondary source which was not u t i l i z e d i n the study because i t was too gross f o r purposes o f comparison. In 1956 the N a t i o n a l R e t a i l Merchants Associ a t i o n s t a t e d t h a t the l e v e l of s a l e s per square f o o t of s e l l i n g space f o r s p e c i a l t y s t o r e s w i t h annual s a l e s l e s s than $1 m i l l i o n was $77.01. I f the i n f l a t i o n r a t e of 39.5 p e r c e n t i s a p p l i e d t o the s a l e s per square f o o t r e s u l t s r e p o r t e d by the Real E s t a t e Research C o r p o r a t i o n f o r the g e n e r a l range of s t o r e s ($35 t o $60) , the converted range of the standard of $49 t o $84 i s reasonable i n r e l a t i o n t o the NRMA d a t a . Sources: Canada, Dominion Bureau of S t a t i s t i c s , "Consumer P r i c e Index," P r i c e s and P r i c e Indexes, Ottawa: Queen's P r i n t e r , May 1970, p. 47 and C o n t r o l l e r s Congress o f the N a t i o n a l R e t a i l Merchants A s s o c i a t i o n , F i n a n c i a l and O p e r a t i n g R e s u l t s of Department and S p e c i a l t y S t o r e s of 1966, New York: N a t i o n a l R e t a i l Merchants A s s o c i a t i o n , 1967, p. 58.  Recent d o l l a r volume per square f o o t r e s u l t s a t t a i n e d by tenants i n American shopping c e n t e r s a r e a v a i l a b l e from the Urban Land I n s t i t u t e as an a l t e r n a t i v e standard. T h i s data was n o t u t i l i z e d i n the a n a l y s i s because the economics o f shopping c e n t e r o p e r a t i o n are much d i f f e r e n t from t h a t o f commercially developed, h i s t o r i c areas ( f o r example, the r e n t s t r u c t u r e s o f the two are very d i f f e r e n t ) . However, i n order t h a t the reader w i l l be able t o use t h i s i n f o r m a t i o n to r e - e v a l u a t e the f i n d i n g s i f he so d e s i r e s , the o p e r a t i n g r e s u l t s by category f o r 1966 a r e presented below: Gastown R e t a i l Category I. F u r n i t u r e Stores  E q u i v a l e n t Shopping Center Tenant C l a s s i f i c a t i o n  Median S a l e s p e r Sq.Ft. r e s u l t s ( 1 9 6 6 )  F u r n i t u r e and Lamp S t o r e s  $17.78 - $25.61  I I . Restaurant Restaurants and e a t i n g and Night places serving a l c o h o l i c beverages Clubs III.  Apparel and Shoes Stores  IV. M i s c e l laneous Specialty Goods Boutiques . (smallscale units) V.  Miscellaneous Specialty Goods Stores (largescale units)  Source:  Ladies' Specialty, ladies wear, men's wear, f a m i l y shoe, l a d i e s ' shoe  $38.06 - $41.65  $40.14 - $64.93  V a r i e t y S t o r e s , costume j e w e l l r y , cards and g i f t s , toys $29.70 - $70.96  J u n i o r department s t o r e s , c h i n a and glassware, music and r e c o r d s , independent and l o c a l chain v a r i e t y stores  $26.43 - $57.95  Urban Land I n s t i t u t e , The D o l l a r s and Cents of Shopping C e n t e r s , 1966, Washington: The Urban Land I n s t i t u t e , 1966, pp. 12-32. 12  April  . The Economist, 5, 1969, pp. 39-40.  "San F r a n c i s c o ' s New Gold  Coast,"  E d i t o r and P u b l i s h e r Magazine, E d i t o r and P u b l i s h e r Market Guide, 19 69, New York: E d i t o r and Publ i s h e r Magazine, 1969, p. 522, e s t i m a t e d t h a t the average income per household i n Vancouver i n 1969 was $9579. 14 A c c o u n t i n g C o r p o r a t i o n of America, Barometer of Small B u s i n e s s , V o l . 21 ( A p r i l 1970), pp. 23 and 60. " ^ I b i d . , p. 60. Gross margin (that i s , the maint a i n e d markup on r e t a i l ) was 38. 67 p e r c e n t f o r small varietys t o r e s and 40.02 p e r c e n t f o r small g i f t and n o v e l t y shops f o r the f i s c a l year 1969. ^ S i m p l e c o s t i n g procedures were u t i l i z e d to c a l c u l a t e the c o s t on f i v e hand-made l e a t h e r items and f o u r women's garments. The median markup on r e t a i l of the l e a t h e r goods p i e c e s was 58.9 percent and 52.7 p e r c e n t on the c l o t h i n g articles. 17 Accounting Corporation  of America, Op_.  C i t . , p.  23.  18 L. Thomas, "Restored Commercial B u i l d i n g s : How the C i t y Saves Face," San F r a n c i s c o , March, 1968, p. 29 r e p o r t e d t h a t San F r a n c i s c o merchants l o c a t e d i n r e s t o r e d b u i l d i n g s r e n t "space a t 10 cents to 55 cents l e s s per square f o o t than the towering downtown h i g h r i s e , " T h i s r e p r e s e n t s a very s m a l l percentage s a v i n g on r e n t when compared to the f a c t t h a t r e n t s i n Gastown are 70 p e r c e n t lower than those charged f o r space i n Vancouver's CBD. The assumption t h a t s a l a r y expense l e v e l s are lower i n Gastown than i n San F r a n c i s c o i s r e a s o n a b l e f o r one b a s i c r e a s o n — t h e d i f f e r e n c e s i n age and r e s u l t a n t m a t u r i t y between h i s t o r i c areas i n the two c i t i e s . The t h r e e f a c t o r s t h a t were p r e v i o u s l y l i s t e d as causes of low s a l a r y l e v e l s i n the Old Townsite (that i s , s t a f f i n e x p e r i e n c e , low p r o p r i e t o r ' s wages, and f r e e labour) are a l l the r e s u l t of the s h o r t time p e r i o d t h a t Gastown has been i n o p e r a t i o n as a commercial rehabilitation district. As the area ages and matures, the work f o r c e w i l l g a i n e x p e r i e n c e and demand h i g h e r wages and fewer i n d i v i d u a l s w i l l be w i l l i n g to p r o v i d e f r e e l a b o u r . Restored areas i n San F r a n c i s c o have a l r e a d y reached a s u f f i c i e n t l e v e l of m a t u r i t y t h a t s a l a r y l e v e l s are comparable to those i n n o n - h i s t o r i c areas o f the c i t y . 19 The assumption t h a t the t o t a l funds o f Gastown b u s i n e s s e s have been i n v e s t e d i n o p e r a t i n g a s s e t s i s reasonable i n view of the nature and h i s t o r y of b u s i n e s s e s i n the district. These f i r m s have not been purchased as going  concerns and have n o t been i n b u s i n e s s a s u f f i c i e n t l e n g t h of time t o b u i l d up i n t a n g i b l e s i n t h e i r balance s h e e t s . That i s , they have not a l l o c a t e d funds t o i n t a n g i b l e accounts such as g o o d w i l l , trademarks, and l e a s e h o l d s . • .v  20 While a n a l y z i n g the turnover o f o p e r a t i n g a s s e t r e s u l t s of i n d i v i d u a l f i r m s , the author d i s c o v e r e d a p a r t i c u l a r l y i n t e r e s t i n g example which underscored both the unique c h a r a c t e r of businesses i n Gastown and the need to understand the nature o f these e n t e r p r i s e s b e f o r e drawing r i g i d conclusions. A s m a l l l e a t h e r goods merchant who entered Gastown i n August 1969 r e f u s e d t o p a r t i c i p a t e i n the q u e s t i o n n a i r e s u r vey but d i d v o l u n t e e r s a l e s and investment i n f o r m a t i o n . T h i s b u s i n e s s , which has operated p r o f i t a b l y d u r i n g the e n t i r e t h i r t e e n month p e r i o d s i n c e i t came i n t o e x i s t e n c e , managed to produce s a l e s o f $4000 on a t o t a l investment o f $35. Bef o r e t h e c o n c l u s i o n i s drawn t h a t the t u r n o v e r o f o p e r a t i n g a s s e t s l e v e l o f 114.3 times per year i s completely o u t of. l i n e i n r e l a t i o n t o i n d u s t r y standards, the o u t l o o k and background o f the owner must be taken i n t o account. T h i s merchant, who can be c h a r a c t e r i z e d as a member o f the a c t i v i s t "hippy." community, r e f u s e s t o d e a l with "the e s t a b l i s h m e n t " t o o b t a i n a d d i t i o n a l funds and i s s a t i s f i e d w i t h t h e low a b s o l u t e r e t u r n o b t a i n e d from the b u s i n e s s . The f a c t t h a t a d d i t i o n a l c a p i t a l might be u t i l i z e d t o double o r even t r i p l e the s a l e s volume i s i r r e l e v a n t t o t h i s owner. On the o t h e r hand, one must be aware o f the f a c t t h a t , i r r e g a r d l e s s o f the c h a r a c t e r t h a t t h i s f i r m adds t o the d i s t r i c t and t h e l a c k o f concern t h a t t h e merchant shows f o r the e s t a b l i s h e d business community, the b u s i n e s s w i l l , i n a l l l i k e l i h o o d , be f o r c e d o u t o f the O l d Townsite i n the near f u t u r e . As development continues i n Gastown, r e n t a l r a t e s w i l l s u r e l y i n c r e a s e and t h i s f i r m w i l l no longer be a b l e t o a f f o r d t o remain i n the a r e a . 21 The n e t s a l e s to. i n v e n t o r y r a t i o should not be confused w i t h p h y s i c a l turnover r a t i o s . P h y s i c a l turnover can o n l y be determined by p e r i o d i c a l l y c o u n t i n g the stock on hand o f a p a r t i c u l a r type of 'merchandise and comparing t h i s t o the p h y s i c a l s a l e s o f the i t e m i n the p e r i o d . 22 Because respondents were asked t o r e p o r t investment i n s t o c k s a t c o s t , i t was necessary t o c o n v e r t these f i g u r e s t o r e t a i l l e v e l s b e f o r e n e t s a l e s t o i n v e n t o r y r a t i o s c o u l d be calculated. Due t o the l a c k of r e l e v a n t i n f o r m a t i o n , the assumption was made t h a t the markup percentage (on r e t a i l ) , of Gastown f i r m s i s 5 p e r c e n t t o 10 p e r c e n t above e q u i v a l e n t i n d u s t r y averages, depending upon t h e nature o f the b u s i n e s s . These markup percentages were then used t o c a l c u l a t e investment  i n stock at r e t a i l . Although the r e s u l t s may be somewhat i n a c c u r a t e , t h i s procedure does p r o v i d e a c o n v e r s i o n of i n v e n t o r i e s from c o s t to r e t a i l t h a t w i l l allow d e t e r m i n a t i o n of u n d e r l y i n g t r e n d s . 23 R. Sanzo, R a t i o A n a l y s i s f o r Small B u s i n e s s , Small Business Management S e r i e s No. 20 (3rd. E d i t i o n ) . Washington: Small Business A d m i n i s t r a t i o n , 1970, pp. 7-8, d e f i n e s t a n g i b l e net worth as "the net worth of a b u s i n e s s , minus any i n t a n g i b l e items i n the a s s e t s such as> g o o d w i l l , trademarks, p a t e n t s , c o p y r i g h t s , l e a s e h o l d s , t r e a s u r y stock, o r g a n i z a t i o n expenses, or u n d e r w r i t i n g d i s c o u n t s and expenses. ...In a p a r t n e r s h i p or p r o p r i e t o r s h i p , i t c o u l d comprise the c a p i t a l accounts, or accounts, l e s s the i n t a n g i b l e s . " As noted p r e v i o u s l y , f o r the purposes of the p r e s e n t a n a l y s i s , i t has been assumed t h a t the t o t a l investment r e p o r t e d by Gastown f i r m s does not i n c l u d e any i n t a n g i b l e items. I b i d . , p.  8.  ~ * I b i d . , p.  1.  2 4  2  26 Dun and B r a d s t r e e t , The F a i l u r e Record Through 1966, pp. 1.2-13 as c i t e d i n D.J. Dalrymple and D.L. Thompson, Retailing: An Economic View, New York: The Free P r e s s , 1969, p. 59. 27 * I . Rogers, D i r e c t o r of Town Group L t d . , as c i t e d i n K h o u r i , Op.  C i t . , p.  21.  28 F a i l u r e s among s m a l l Gastown b u s i n e s s e s have a l r e a d y s t a r t e d . For example, three of the e l e v e n merchants i n the Red L a n t e r n Arcade (135 Water St.) have gone out of bu si ne ss or changed ownership s i n c e September 1, 1970. 29 For example, a l l t h r e e b u s i n e s s e s i n the Red L a n t e r n which ceased o p e r a t i o n (see f o o t n o t e 28) have been r e p l a c e d by s i m i l a r types of o p e r a t i o n . ^ B . Ewald, p r e s i d e n t of the Gastown Merchants A s s o c i a t i o n , i n an i n t e r v i e w w i t h the w r i t e r (September 4, 1970) expressed concern f o r the f a t e of Gastown's s m a l l merchants i n the f o l l o w i n g manner: "I t h i n k t h a t i t i s v e r y important t h a t a l l the s m a l l b o u t i q u e s — n o t n e c e s s a r i l y a l l , but a good number of t h e m — s t a y i n Gastown. By t h i s I mean, the o n l y time I c o u l d see the area l o s e i t s appeal to the p u b l i c would be i f i t became simply another shopping area. A l l the s m a l l  b o u t i q u e s , which make l e a t h e r goods or i r o n works or whatever,, t h a t are not doing very b i g volume, and never w i l l do b i g v o l u m e a r e very important to have because they are what g i v e the area f l a i r . T h i s i s what the p u b l i c l i k e s . . . . I hope '[the p u b l i c w i l l buy from these s m a l l shops] because, i f they don't, the guy can't a f f o r d to stay i n b u s i n e s s . As long as they support these l i t t l e s t o r e s to the p o i n t t h a t they can make themselves a decent l i v i n g and pay t h e i r overhead, they w i l l be w i t h us. And t h i s w i l l , of c o u r s e , be r e a l l y what Gastown hinges on." < ' T h e s t r u c t u r e f o r the p r o v i s i o n of c o n s u l t a n t a d v i c e to boutique o p e r a t o r s need not be complicated or expensive. For example, the Gastown Merchants A s s o c i a t i o n c o u l d i n s t i t u t e a programme whereby some of the l a r g e - s c a l e o p e r a t o r s p r o v i d e a few hours a week t o a c t as a d v i s o r s t o some of the s m a l l e r f i r m s . Another a l t e r n a t i v e might i n v o l v e approaching the Commerce F a c u l t i e s a t U.B.C. and S.F.U. t o see i f they would a l l o w i n t e r e s t e d b u s i n e s s students to a c t as c o n s u l tants. Two -side b e n e f i t s c o u l d c o n c e i v a b l y accrue to a l l Gastown merchants from the c o n s u l t i n g programme, f i r s t l y , the s t r e n g thening of s m a l l boutique o p e r a t i o n s should enhance the customer, a t t r a c t i o n of the d i s t r i c t and, t h e r e f o r e , be b e n e f i c i a l t o a l l merchants, whether l a r g e or s m a l l . In a d d i t i o n , the programme may succeed in. d e t e r r i n g some p r o s p e c t i v e e n t r e preneurs who are i n e x p e r i e n c e d or u n d e r f i n a n c e d from e n t e r i n g Gastown and f u r t h e r weakening the economic s i t u a t i o n . 3 1  32 I t xs estimated t h a t the e l e v e n p r o j e c t s t h a t have been announced f o r Gastown w i l l i n c l u d e s i x Category C merchants and 43 Category B firms.. The median y e a r l y s a l e s volume of the s i x l a r g e f i r m s w i l l be $415,000, w h i l e the median of the Category B b u s i n e s s e s w i l l be $22,000. The average y e a r l y s a l e s of both of these types of b u s i n e s s e s w i l l be w e l l above the median s a l e s l e v e l o f , f i r m s p r e s e n t l y i n c l u d e d i n Categ o r i e s B and C.  CHAPTER V I I  THE  ECONOMICS OF REAL ESTATE INVESTMENT IN GASTOWN  S i n c e [the l a r g e p r o p e r t y owners] have come to Gastown, r e n t s have shot up. Many f e a r t h a t as the r e n t s i n c r e a s e , the s m a l l e r tenants who add so much t o the f l a v o r and atmosphere of the area w i l l be f o r c e d o u t . 1  I n a d d i t i o n t o the a c t i v i t i e s o f merchants and o t h e r r e t a i l - t y p e b u s i n e s s e s , the e v e n t u a l success o f Gastown i s dependent upon the courses o f a c t i o n taken by p r o p e r t y owners and l a n d d e v e l o p e r s  i n the a r e a .  I t i s the  purpose of t h i s chapter t o examine changes i n r e a l e s t a t e v a l u e s and r e n t a l income l e v e l s i n order t o determine whethe they w i l l promote o r r e t a r d r e j u v e n a t i o n a c t i v i t i e s i n the Old  Townsite.  A n a l y s i s o f Real E s t a t e Value  i n Urban Areas  I t i s n o t the purpose o f t h i s t h e s i s to examine i n depth t h e many f a c t o r s which c o n t r i b u t e t o o r i n f l u e n c e r e a l estate value.  However, i t i s necessary  t o be aware o f  the b a s i c f a c t t h a t the v a l u e o f any s p e c i f i c u n i t o f urban r e a l . e s t a t e i s dependent upon the combined e f f e c t of i t s 2 p h y s i c a l and l o c a t i o n a l c h a r a c t e r i s t i c s ,  the nature o f the  a s s o c i a t e d o n - s i t e and o f f - s i t e improvements, f o r c e s of demand and e s t a t e market.  and  the  supply i n o p e r a t i o n i n the l o c a l  T h i s statement  both o v e r l y s i m p l i s t i c  real  i s misleading i n that i t i s  and does not s u f f i c i e n t l y r e c o g n i z e  the d i f f e r e n t motives and o b j e c t i v e s of v a r i o u s types of investors.  F u r t h e r , i t tends to suggest  and o n l y one  "value" f o r each urban p r o p e r t y when, i n f a c t ,  t h e r e can be many d i f f e r e n t property.  t h a t t h e r e i s one  v a l u e s c a l c u l a t e d f o r the same :  In r e c o g n i z i n g these problems, one  urban l a n d  economist emphasized the f a c t t h a t "the concept i n r e a l e s t a t e i s probably whole  field."  of v a l u e  the most e l u s i v e of any  i n the  4  The b a s i c problem i n the a n a l y s i s of r e a l e s t a t e v a l u e s i s t h a t a number of v a l u a t i o n s can be c a l c u l a t e d f o r any s p e c i f i c p r o p e r t y .  The purpose f o r which the p r o p e r t y  i s to be u t i l i z e d , the f i n a n c i a l circumstances t i v e s of the i n v e s t o r , and  and  objec-  the method by which the  value  i s c a l c u l a t e d can a l l i n f l u e n c e the f i n a l r e s u l t .  The  5  v a l u a t i o n procedure it  i s f u r t h e r c o m p l i c a t e d by the f a c t t h a t  i s u s u a l l y conducted  in a situation  of i m p e r f e c t  The knowledgeable i n v e s t o r w i l l attempt to s e t an v a l u e or "upper l i m i t to the c a p i t a l feels  investment  knowledge  investment  which he  i s j u s t i f i e d by h i s e v a l u a t i o n of the p r o d u c t i v i t y of  the property."*' v a l u e should be  Under i d e a l c i r c u m s t a n c e s ,  this  investment  "the p r e s e n t worth to the i n v e s t o r of the  future returns c a p i t a l i z e d  a t a r a t e a c c e p t a b l e to him i n  l i g h t of h i s e v a l u a t i o n of the investment c h a r a c t e r i s t i c s of the  property."  7  Because of the importance of the circumstances of the i n v e s t o r to the d e t e r m i n a t i o n  of reasonable r e a l  estate  v a l u a t i o n s , i t i s important to be aware of i n d i v i d u a l investment o b j e c t i v e s . Ratcliff identified e q u i t y c a p i t a l and estate  activity." 1.  2.  3.  On  the b a s i s of "primary  "three types of i n v e s t o r represent  the generating  motivation,"  [who]  supply  f o r c e of  real  8  I n v e s t o r f o r Use. T h i s i n v e s t o r , the buyer of a home f o r h i s f a m i l y or a s t o r e f o r h i s merchand i s i n g e s t a b l i s h m e n t , expects to occupy and use the p r o p e r t y f o r h i s own purposes and hopes to g a i n c e r t a i n advantages over the a l t e r n a t i v e of r e n t i n g space; I n v e s t o r f o r Regular Return. Most i n v e s t o r s i n apartment b u i l d i n g s or other income p r o p e r t i e s a n t i c i p a t e a r e g u l a r and p r e d i c t a b l e r e t u r n on t h e i r c a p i t a l ; they i n v e s t f o r the "long p u l l , " though no doubt a s p e c u l a t i v e g a i n would be welcome; I n v e s t o r f o r C a p i t a l Gain. Any k i n d of r e a l e s t a t e may be the o b j e c t of investment i n expect a t i o n of r e s a l e a t a p r o f i t . During the w a i t i n g p e r i o d the i n v e s t o r may w e l l hope t h a t the p r o p e r t y w i l l produce enough a t l e a s t to cover c a r r y i n g c o s t s , but he may be w i l l i n g to advance such o u t l a y s i f the expected c a p i t a l g a i n i s s u f f i c i e n t l y large.9  Methodology Employed to Determine Real E s t a t e  Factors  i n Gastown The  first  step i n an a n a l y s i s of the economics of  investment i n r e a l e s t a t e i n any the m o t i v a t i o n  area must be to determine  or investment o b j e c t i v e of p r o p e r t y  owners.  In order  to p r o v i d e  d i r e c t i o n f o r the a n a l y s i s , i t i s  necessary t o determine whether owners have a c q u i r e d b u i l d i n g s to o b t a i n the  their  use of s p e c i f i c f a c i l i t i e s ,  g a i n a r e g u l a r r e t u r n on i n v e s t e d c a p i t a l , or to  to  attain  ownership o f an a s s e t upon which a c a p i t a l g a i n i s a n t i cipated. I t was  determined from the q u e s t i o n n a i r e  t h a t the m a j o r i t y i n d i v i d u a l s who the b u s i n e s s .  survey  of Gastown merchants r e n t premises from  do not m a i n t a i n an ownership p o s i t i o n i n Therefore,  owners can be c l a s s i f i e d as Personal  very  few  Gastown  property  "investor-users."  i n t e r v i e w s with a number of  property  owners i n the Old Townsite determined t h a t they would g e n e r a l l y c l a s s i f y themselves as i n v e s t o r s f o r r e g u l a r return.  They are, t h e r e f o r e , predominantly i n t e r e s t e d i n  the r a t e of r e t u r n t h a t these investments w i l l produce over the  long run.  However, they are c e r t a i n l y aware of  p o t e n t i a l f o r c a p i t a l g a i n t h a t these h o l d i n g s  represent  so the ensueing a n a l y s i s w i l l examine r e a l e s t a t e ment i n Gastown from the p o i n t - o f - v i e w for  r e g u l a r r e t u r n and  of both  investors for c a p i t a l  gain. Old  by the f a c t t h a t a v a i l a b l e i n f o r -  mation sources are g e n e r a l l y i n a c c u r a t e , both.  invest-  investors  E v a l u a t i o n of r e a l e s t a t e f a c t o r s i n the Townsite i s complicated  the  incomplete, or  For example, market s a l e s data should  be  employed  as the b a s i s f o r a n a l y s i s of changes i n p r o p e r t y over time and  values  p o t e n t i a l . r e t u r n on r e a l e s t a t e Investment  i n the area y e t , t h e r e e x i s t s no comprehensive source of t h i s type o f i n f o r m a t i o n .  Because of t h i s shortcoming, a  number o f data sources have been employed i n the 1. 2.  3. 4. 5. 6.  The  study:  P u b l i s h e d s o u r c e s — p u r c h a s e p r i c e s and estimated c u r r e n t v a l u e of s p e c i f i c Gastown p r o p e r t i e s ; P e r s o n a l i n t e r v i e w s — r e t u r n on investment l e v e l s a n t i c i p a t e d by r e a l e s t a t e i n v e s t o r s i n the Old Townsite p l u s market values of c e r t a i n properties; C i t y of Vancouver Assessment D i v i s i o n — a s s e s s e d v a l u e s of l a n d and improvements i n the study area f o r the years 1967 and 1970; C i t y o f Vancouver Tax - D i v i s i o n — a m o u n t of 1970 p r o p e r t y tax l e v i e d on c e r t a i n l a n d and b u i l d i n g u n i t s i n Gastown; P r o v i n c e of B r i t i s h Columbia Land R e g i s t r y O f f i c e d e c l a r e d purchase p r i c e s of s p e c i f i c p r o p e r t i e s i n the Old Townsite; Q u e s t i o n n a i r e s u r v e y — r e n t a l r a t e s charged r e p o r t i n g Gastown merchants.  Nature of P r o p e r t y  Old Townsite:  1967  Value Change i n the -  1970  Economic s t u d i e s conducted i n h i s t o r i c  districts  i n many North American c i t i e s have determined t h a t , i n most instances, property  values  have i n c r e a s e d s u b s t a n t i a l l y  a f t e r r e h a b i l i t a t i o n a c t i v i t i e s commenced. Montague and  Wrenn r e p o r t e d  increases  For  example,  i n real estate  values  i n the E l Pueblo V i e j o d i s t r i c t of Santa Barbara, C a l i f o r n i a which ranged from 75 p e r c e n t 1963.  11  to 150  percent  from 1960  They a l s o c i t e d examples of s p e c i f i c  restored  to  b u i l d i n g s i n the Beacon H i l l D i s t r i c t of Boston which 12 tripled  i n v a l u e over a seven year p e r i o d . A s s e t a p p r e c i a t i o n of t h i s o r d e r has o f t e n 13  a t t r a c t e d s p e c u l a t i v e i n v e s t o r s to h i s t o r i c d i s t r i c t s . T h i s type of i n v e s t o r f o r c a p i t a l  g a i n i s not so much con-  cerned w i t h the l o n g term economic h e a l t h of the area as he i s w i t h the amount t h a t can be r e a l i z e d his property holdings.  from r e s a l e of  For t h i s reason, t h i s type of  i n v e s t o r has o f t e n been accused  of not s u p p o r t i n g h i s t o r i c  rehabilitation activities. I t i s "the purpose of t h i s s e c t i o n of the to determine i f s i m i l a r o c c u r r e d i n Gastown.  study  r e a l e s t a t e v a l u e i n c r e a s e s have  A t the same time, c o n s i d e r a t i o n w i l l  be g i v e n to the a c t i v i t i e s of i n v e s t o r s f o r c a p i t a l i n the O l d  Townsite. As p r e v i o u s l y noted  i n t h i s c h a p t e r , a n a l y s i s of  r e a l e s t a t e f a c t o r s i s hampered by an acute l a c k of sary data.  gain  This i s p a r t i c u l a r l y  severe i n r e g a r d to  mation about changes i n Gastown p r o p e r t y v a l u e s over  necesinfortime,  as the o n l y comprehensive source of d a t a f o r the whole area i s t h a t i n c l u d e d i n the assessment r o l l s maintained tax purposes by the C i t y The  for  of Vancouver.  use of assessment d a t a as a measure of a c t u a l  p r o p e r t y v a l u e i s f r a u g h t w i t h a number of problems.  The  major d i f f i c u l t y concerns t h e f a c t t h a t these v a l u a t i o n s are s e t by a p p r a i s e r s employed by the c i t y r a t h e r than f o r c e s i n the market p l a c e . property  values  Because o f t h i s ,  assessed  o f t e n do n o t t r u l y r e f l e c t d e c i s i o n s t h a t  have been made by r e a l . e s t a t e i n v e s t o r s , p a r t i c u l a r l y i n areas which c o n t a i n unique s t r u c t u r e s o r have a low turnover  rate.  experienced  A l s o , t h e r e i s u s u a l l y a pronounced  -time l a g between changes i n market-determined v a l u e s and r e f l e c t i o n o f these changes i n assessed  values.  i s most apparent i n areas where p r o p e r t y  T h i s problem  values have under-  gone r a p i d change o r where market s a l e p r i c e s have f l u c tuated  widely. Hoyt, i n h i s study o f l a n d v a l u e changes i n  Chicago, was unable t o overcome t h e problems a s s o c i a t e d with  assessment d a t a .  He noted t h a t , "the e a s i l y a c c e s s i b l e  l a n d v a l u a t i o n s o f the t a x a s s e s s o r . . . do not adequately show the course o f the r e a l e s t a t e market as i n d i c a t e d by 14 actual sales."  However, i f t h e r e s e a r c h e r  the l i m i t a t i o n s o f t h i s source,  assessment v a l u a t i o n s can  be e f f e c t i v e l y u t i l i z e d t o determine t r e n d s values  o f r e a l e s t a t e i n urban areas.  Weiss CBD study support  i s aware o f  t h i s contention  i n market  The f i n d i n g s o f the as i t was r e p o r t e d  t h a t " r e c e n t s t u d i e s i n s e l e c t e d areas have used  assessed  v a l u a t i o n s as an e f f e c t i v e t o o l i n r e l a t i n g changes i n property  values  and l a n d uses i n the CBD."  15  Changes i n the assessed v a l u e s  of s e l e c t e d proper-  t i e s i n downtown Vancouver and Gastown from 1967 t o 1970 are s e t out i n Table XIX.  During t h i s three year  period,  the t o t a l assessed v a l u e  o f l a n d and improvements w i t h i n  the Gastown study a r e a ^  increased  t o a much g r e a t e r  degree  than t h a t o f other p r o p e r t i e s w i t h i n the Vancouver CBD. T h i s suggests t h a t the r e h a b i l i t a t i o n t h a t has been c a r r i e d out i n Gastown o r some other values  f a c t o r has i n f l u e n c e d  i n the O l d Townsite but has n o t exerted  pressure  property  similar  i n the downtown a r e a . There are f o u r p o s s i b l e causes o f t h e pronounced,  i n c r e a s e i n the assessed value 1. 2. 3. 4.  o f Gastown r e a l  estate:  new c o n s t r u c t i o n or d e m o l i t i o n , p r e s s u r e s c r e a t e d by the p r o x i m i t y o f P r o j e c t 200, r e h a b i l i t a t i o n a c t i v i t i e s , or adjustments t o c o r r e c t assessments u n d e r s t a t e d i n r e l a t i o n t o market p r i c e s . Demolition  and new c o n s t r u c t i o n a c t i v i t y can be  r u l e d out as a c o n t r i b u t i n g f a c t o r because p r o p e r t i e s which have been a f f e c t e d by these o c c u r r a n c e s have been excluded from the study.  None of the p a r c e l s o f urban r e a l  f o r which assessment value  changes have been c a l c u l a t e d  i n c l u d e new c o n s t r u c t i o n o r expansion o f o n - s i t e The  proximity  of P r o j e c t  improvement  200 t o Gastown appears t o  have been a major f a c t o r i n the i n c r e a s e d i n the a r e a .  estate  land  assessment  The planned development o f h i g h i n t e n s i t y  PERCENTAGE CHANGE IN ASSESSED VALUES OF REAL PROPERTY IN GASTOWN AND SELECTED VANCOUVER LOCATIONS:  1967 - 1970  Percentage Change: Land  Location A.  TOTAL GASTOWN STUDY AREA  B.  SELECTED VANCOUVER LOCATIONS 1. Three major downtown department stores (The Bay, Eatons, Woodwards) 2. Woodwards Department S t o r e / 3 (101 West Hastings St.) 3. Army and Navy Department Store3 (27 West Hastings St.) 4. Hudson's Bay Department S t o r e * (Georgia and G r a n v i l l e ) 5. Saba Brothers S t o r e (622 G r a n v i l l e St.)  1  2  Improvements  1967 - 1970 T o t a l Land and Improvements  +34.9  +11.1  +19.9  + 8.1  + 7.8  + 7.9  nil  + 6.9  + 7.9  nil  nil  nil  +16.3  +12.3  +13.6  2  2  4  C.  SELECTED GASTOWN LOCATIONS 1. The Alhambra B u i l d i n g ? (2-8 Water St.) 2. Ye Olde F a b r i c B i n (300 Water St.) 3. T r i d e n t s - Old S p a g h e t t i F a c t o r y (53-57 Water St.) 4. The Dunn B u i l d i n g ? (1 Alexander St.) 5. The Ferguson Block? (200 C a r r a l l St.)  + 6.8  nil  + 3.8  + 48.7  +143.4  +100.1  +34.3  +27.0  + 30.2  +51.2  + 29.4  +37.3  6  6  +25.1  nil  + 17.3  + 24.7  nil  +10.8  to H O  TABLE XIX (Continued) Percentage Change: Location D.  SELECTED LOCATIONS WITHIN OR ADJACENT TO PROJECT 200 BOUNDARY 1. Woodwards property on south s i d e of Water S t r e e t (130-138 Water S t r e e t ) 2. P r o j e c t 200 p r o p e r t y on north s i d e of Water S t r e e t ' 9 (115-199 Water St.) 3. L e c k i e B u i l d i n g l O (220 Cambie St.) 4. Gault B u i l d i n g l O (361 Water St.) 8  8  Land  Improvements  + 65.3  nil  1967 - 1970 T o t a l Land and Improvements  +11.5  +68.1  + 9.2  +32.2  +43.5  + 29.9  +32.5  + 33.6  + 10.2  +15.8  Footnotes *  ^Adjusted t o exclude city-owned p r o p e r t y and land and b u i l d i n g s a s s o c i a t e d with the CPR Telecommunications b u i l d i n g p r o j e c t . 2 . E x c l u d i n g parking s t r u c t u r e s . . . 3 Adjacent t o the Gastown study a r e a . , 4 Prime G r a n v i l l e S t r e e t l o c a t i o n — o p p o s i t e block 42 of P a c i f i c Center development. 5  c  E x t e n s i v e r e n o v a t i o n completed as of assessment date.  P a r t i a l r e n o v a t i o n completed as of assessment date. 7 No r e n o v a t i o n undertaken as of assessment date. 8 L o c a t i o n s w i t h i n proposed P r o j e c t 200 boundary. 9 Adjusted t o exclude one property on which a b u i l d i n g was demolished but not r e p l a c e d between 1967 and 1970. • " ^ L o c a t i o n s adjacent t o proposed P r o j e c t 200 boundary. Source: See t e x t , pp. 209-212.  s t r u c t u r e s i n the p r o j e c t has a t t r a c t e d s p e c u l a t i v e i n t e r e s t in  the surrounding area and t h i s has f o r c e d up the market  v a l u e of t h i s p r o p e r t y .  T h i s market v a l u e i n c r e a s e has  then been r e f l e c t e d i n h i g h e r assessed v a l u e s . w i t h i n the p r o j e c t boundaries and D2,  Table XIX)  T a b l e XIX)  Land v a l u e s  have a p p r e c i a t e d more (see D l  than those a d j a c e n t . o t i t (see D3 and  D4,  w h i l e the g e n e r a l i n c r e a s e i n l a n d value i n the  whole Gastown area i s s i m i l a r to t h a t of these b o r d e r i n g properties. Renovation  and r e h a b i l i t a t i o n of Gastown's b u i l d i n g  has been the major f a c t o r i n the i n c r e a s e d assessment of these s t r u c t u r e s .  For example, the Alhambra Block has  under-  gone the most e x t e n s i v e r e s t o r a t i o n so t h i s has r e s u l t e d i n an improvement assessment i n c r e a s e of almost s i n c e 1967  (see CI, T a b l e XIX).  150  percent  At the same time, b u i l d i n g s  which have not been renovated a t the time of assessment (see C4 and C5, Table XIX)  have not i n c r e a s e d i n v a l u e .  A p o r t i o n of the i n c r e a s e d assessment i n Gastown may  be a t t r i b u t a b l e t o adjustments  with market p r i c e s . ments of two  made t o b r i n g them i n l i n e  The assessed v a l u e of l a n d and  department s t o r e s a d j a c e n t t o the  (see B2 and B3, Table XIX)  changed v e r y l i t t l e  improve-  study over  the  same t h r e e year p e r i o d even though they are s i t u a t e d o n l y a s h o r t d i s t a n c e from P r o j e c t 200.  I t i s l i k e l y t h a t these  s t r u c t u r e s were assessed a t r e a s o n a b l e l e v e l s i n the p a s t so they have been i n f l u e n c e d very l i t t l e  by t h i s new  - v  development while  the undervalued Gastown p r o p e r t i e s have  been i n f l u e n c e d t o a much g r e a t e r  extent.  An attempt was made t o a c q u i r e i n f o r m a t i o n study about p r o p e r t y Vancouver.  values  f o r the  from r e a l e s t a t e a p p r a i s e r s i n  T h i s proved t o be f r u i t l e s s as these f i r m s were  e i t h e r u n w i l l i n g o r unable t o p r o v i d e experience  r e l a t e d by one p r o p e r t y  problems encountered i n attempting s a l s f o r Gastown p r o p e r t i e s .  the information.  The  owner was t y p i c a l o f the to acquire v a l i d  apprai-  T h i s i n d i v i d u a l was informed  by a number o f a p p r a i s e r s t h a t the u n c e r t a i n t y and r a p i d l y i n c r e a s i n g r e a l e s t a t e p r i c e s a s s o c i a t e d w i t h the d i s t r i c t made i t i m p o s s i b l e building.^  t o p r o v i d e a meaningful a p p r a i s a l of. h i s  7  Although the a v a i l a b l e i n f o r m a t i o n i s l i m i t e d and may be somewhat m i s l e a d i n g ,  a more v a l i d i n d i c a t i o n o f the  t r e n d o f changes i n Gastown r e a l e s t a t e values can be obtained  from examination o f the a s k i n g p r i c e s and a c t u a l  s a l e s p r i c e s o f s p e c i f i c p r o p e r t i e s i n the a r e a . can be obtained  This  from the Land R e g i s t r y O f f i c e f i l e s ,  s o n a l i n t e r v i e w s , and a l i m i t e d number o f p u b l i s h e d A n a l y s i s of the purchase p r i c e s d e c l a r e d  data  persources.  f o r Land  R e g i s t r y O f f i c e purposes i n d i c a t e s t h a t the d e c l i n e i n r e a l e s t a t e v a l u e s which r e s u l t e d from the d e t e r i o r a t i o n o f the Gastown area reached the lowest p o i n t i n the p e r i o d 1966  t o 1968.  from  F o r example, i n 1968 one i n v e s t o r was a b l e  t o purchase two from 9 percent  p r o p e r t i e s i n the West Townsite a t p r i c e s to 22 p e r c e n t  lower than the  selling price  18 of these two  b u i l d i n g s i n 1962.  f a c t t h a t there was  very  t h i s area at t h a t time. t o such an extent  This i l l u s t r a t e s  little  demand f o r r e a l e s t a t e i n  Property  values  had  depreciated  t h a t the purchase p r i c e of one  p r o p e r t i e s amounted to o n l y one w h i l e the other was  the  of these  t h i r d of i t s assessed  barely three  f i f t h s of the  value,  assessment  valuation. I t i s not mere chance t h a t both P r o j e c t 200 t i e s L i m i t e d and property i n 1966.  the Town Group L i m i t e d , the two  largest  owners i n the area, began to a c q u i r e t h e i r Although the development o b j e c t i v e s of the  corporations  Proper  holdings two  were very d i f f e r e n t , they were both aware t h a t  r e a l e s t a t e i n the Old Townsite was  undervalued i n terms of  the l o n g term p o t e n t i a l r e t u r n t h a t c o u l d be. r e a l i z e d i f these p r o p e r t i e s were put t o other uses. p u b l i c i t y given the  The  to the a c t i v i t i e s of these two  "Gastown R e v i s i t e d " walk c r e a t e d  simultaneous firms  and  substantial investor  i n t e r e s t i n the d i s t r i c t which, i n t u r n , f o r c e d market p r i c e s upward a f t e r 1968.  E a r l i e r t h i s y e a r , L. H.  p r e s i d e n t of the Town Group, "commented t h a t the two (another having f o l l o w e d because the value 19  Killam, walks  l a s t year) i n f a c t c o s t him money  on p r o p e r t y  he was  n e g o t i a t i n g f o r went. -—  Published  sources appear to support the  conclusion  t h a t market p r i c e s reached the lowest l e v e l i n 1966. but have r e c e n t l y surged upward.  A r a t h e r derogatory a r t i c l e  Gastown i n the Autumn 1970 reported  t h a t , i n 1966,  i s s u e of the UBC  the Town Group was  about  Alumni Chronocle "'able t o p i c k  up  a Cordova S t r e e t e d i f i c e known as Boulder Rooms, which had . been on the market f o r 2 1/2 $19,000.  1,20  The  y e a r s a t $47,000, f o r o n l y  r e p o r t e r noted t h a t - " r e c e n t l y a would-be'  p u r c h a s e r of the Boulder, now  renovated and  opened...as a  h o s t e l . . . , d i d n ' t bat an eye when K i l l a m mentioned f i g u r e of $125,000."  .  21  Even the values  of p o o r l y maintained  on the edge of Gastown have been f o r c e d up by trend of r i s i n g r e a l estate values.  A very  deteriorated building  ( s i t u a t e d at 407  which was  the Town Group i n 1969  acquired  by  properties the o v e r a l l  s m a l l , somewhat  West Cordova  p r e s e n t l y l i s t e d on the market f o r .$50,000.  g a i n of more than 40 p e r c e n t  values  over a one  year  changes t h a t have taken p l a c e  over the p a s t  c u l a r i t y between use  I f i t can  and v a l u e  a capital  i n Gastown proper  f o u r y e a r s c l e a r l y i l l u s t r a t e the and  value.  determines  use.  be.  period.  cir-  T h a t i s , the changes demon-  s t r a t e the seemingly p a r i d o x i c a l f a c t t h a t use value  Street)  f o r $35,000 i s  s o l d f o r t h i s p r i c e , the t r a n s a c t i o n r e p r e s e n t s  The  the  determines  216.  v  In 1966, Gastown p r o p e r t i e s were devoted t o warehouse, l i g h t i n d u s t r i a l , and marginal r e t a i l use. Because t h i s type of user can a f f o r d o n l y low r e n t a l r a t e s , the v a l u e  of t h i s r e a l e s t a t e t o p r o s p e c t i v e  i n v e s t o r s was very  low (that i s , the c a p i t a l i z e d v a l u e of  the r e n t a l income r e s u l t e d i n a very Therefore, use  owners and  low p r e s e n t  worth).  i t can be s a i d t h a t the low-end o r m a r g i n a l  determined the low v a l u e  same time, v a l u e inexpensive  of these p r o p e r t i e s .  land  At the  a l s o determined use i n t h e d i s t r i c t .  The  land and b u i l d i n g s i n the O l d Townsite a t t r a c t e d •  u s e r s who r e q u i r e d  low r e n t a l r a t e s .  Two y e a r s ago, a number o f Gastown p r o p e r t y  owners  began t o r e p a i r and renovate t h e i r b u i l d i n g s to c r e a t e premises s u i t a b l e f o r r e t a i l use. c a l l y pay h i g h e r  Because r e t a i l e r s  r e n t a l r a t e s than the p r e v i o u s  typi-  marginal  occupants, these p r o p e r t i e s became more a t t r a c t i v e t o i n v e s t o r s so they were w i l l i n g t o pay h i g h e r o b t a i n them. in  prices to  That i s , the change i n use produced a change  value. As a d d i t i o n a l owners and i n v e s t o r s became aware  of the high p o t e n t i a l r e t u r n t h a t c o u l d be produced by land and  b u i l d i n g s i n Gastown, demand f o r these p r o p e r t i e s  and  r e a l estate values  The i n c r e a s i n g v a l u e higher  increased  were f o r c e d up throughout the d i s t r i c t .  of land and b u i l d i n g s  necessitated  r e n t a l r a t e s which drove o u t or p r e c l u d e d  of c e r t a i n types of u s e r s  the e n t r y ,  (that " i s , those w i t h low r e n t  paying  ability).  T h e r e f o r e , the v a l u e of the p r o p e r t y  determined t h e use t o which i t c o u l d be p u t . A s p e c i f i c example o f h i g h p r o p e r t y v a l u e s  deter-  mining l a n d use i s p r o v i d e d by the abovementioned b u i l d i n g a t 407 West Cordova S t r e e t .  The b u i l d i n g has, i n the past>  been o c c u p i e d by a c o n s t a n t l y changing mixture  of marginal  users who were a t t r a c t e d by low r e n t a l r a t e s .  I f the  p r o p e r t y i s s o l d f o r $50,000, the new owner w i l l r e q u i r e a reasonable  r e t u r n on investment  and w i l l probably  y e a r l y r e n t a l r a t e o f approximately f o r the ground f l o o r l o c a t i o n area).  1  set a  $2.50 per square f o o t  (1400 square f e e t o f l e a s a b l e  The t o t a l r e n t o f $3500 f o r the ground f l o o r i s  beyond the means of f r i n g e u s e r s ; t h e h i g h v a l u e has d e t e r mined t h a t the p r o p e r t y s h a l l not be occupied by users low r e n t paying a b i l i t y .  with  Only c e r t a i n types o f b u s i n e s s e s ,  such as h i g h t r a f f i c r e t a i l o u t l e t s , w i l l be a b l e t o a f f o r d these  premises.  A n a l y s i s o f Rate o f Return on Gastown P r o p e r t i e s Very l i t t l e  i n f o r m a t i o n i s a v a i l a b l e about e i t h e r  the f i n a n c i a l r i s k o r the r e t u r n on investment properties i n h i s t o r i c d i s t r i c t s .  related to  However, a r e c e n t  business  j o u r n a l a r t i c l e about San F r a n c i s c o ' s h i s t o r i c areas r e p o r t e d t h a t " i t has turned out t o be f i n a n c i a l l y worthwhile 22 t o keep the o l d b u i l d i n g s . "  Two examples o f the g e n e r a l  economics o f h i s t o r i c r e h a b i l i t a t i o n were p r o v i d e d .  I t was  stated that G h i r a d e l l i  Square was  sufficiently  profitable  t o j u s t i f y expansion of the p r o j e c t a f t e r only a s h o r t p e r i o d i n o p e r a t i o n w h i l e the Cannery reached the breakeven 23 p o i n t w i t h i n one  year of the date of completion.  In  addi-  t i o n , an e x p e r i e n c e d observer of the r e s t o r a t i o n and h a b i l i t a t i o n market, "Richard Chief Appraiser one  re-  Leimbach, V i c e - P r e s i d e n t  of  [the] Bank of C a l i f o r n i a , can't r e c a l l . 24 p r o j e c t t h a t has f a i l e d " i n the San F r a n c i s c o a r e a . Gastown p r o p e r t y  owners and d e v e l o p e r s were  g e n e r a l l y u n w i l l i n g to p r o v i d e r e n t a l income and  s p e c i f i c information  r e t u r n on investment l e v e l s  views w i t h the author.  questions,  about  during  However, of the t h r e e  t h a t d i d agree to answer g e n e r a l  felt  that higher  one  stated  was  the one  who  other  It is significant emphatically  renovated h i s b u i l d i n g most e x t e n s i v e l y .  Because i n f o r m a t i o n sary i n the d e t e r m i n a t i o n town area  involved.  s t r e s s e d t h i s p o i n t most  had  that  income l e v e l s were necessary i n view 25  of the e x t r a f i n a n c i a l r i s k s t h a t the owner who  inter-  land owners  he d i d not r e q u i r e an above average r e t u r n w h i l e the two  and  on investment r e t u r n i s neces-  of the a t t r a c t i v e n e s s of the Gas-  to r e a l e s t a t e i n v e s t o r s , the d e c i s i o n was  made  t o e s t i m a t e the r e t u r n produced by a t y p i c a l Gastown  property.  The  reno-  u n i t s e l e c t e d was  26 vated..  The  one which had  been e x t e n s i v e l y  r a t e of r e t u r n on investment before  f o r d e p r e c i a t i o n and  income taxes and  allowances  e x c l u s i v e of f i n a n c i n g 27  charges was  determined t o be approximately 25  percent.  T h i s i s s u b s t a n t i a l l y higher  than t h a t of p r o p e r t i e s  in  28  \  other Vancouver l o c a t i o n s . To the end invested  of August 1970,  i n Gastown p r o p e r t i e s  $1.5  m i l l i o n had  specifically  been  for restoration  29 purposes.  This includes only expenditure f o r land,  b u i l d i n g s , and  r e h a b i l i t a t i o n improvements where the  o b j e c t i v e of the i n v e s t o r was  to o b t a i n an income  apparent  property  i n an area where t e n a n t appeal i s based upon h i s t o r i c charm.This represents  a very  s u b s t a n t i a l c a p i t a l i n p u t which i s  extremely important t o the economic f u t u r e of the R-E-R  dis-  trict.  can  However, the l e v e l of r e h a b i l i t a t i o n investment  be expected to i n c r e a s e to the area and  s h a r p l y as other  i n v e s t o r s are drawn  as owners of p r o p e r t i e s which have not  been r e s t o r e d become aware of the s u b s t a n t i a l r e t u r n investment t h a t can be produced by h i s t o r i c Rental  yet  on  rehabilitation.  r a t e s can a l s o be u t i l i z e d as an i n d i c a t i o n  of the economic s i t u a t i o n i n a s p e c i f i c area because a investment c l i m a t e  i s r e f l e c t e d i n high r e n t s .  the investment environment has the p a s t year and  one  The  fact  improved d r a m a t i c a l l y  h a l f i n Gastown i s i l l u s t r a t e d by  s u b s t a n t i a l l y over t h i s p e r i o d of time.  In 1967,  per  square f o o t and  $1.00  per  the  increased  much of  space i n Old Townsite b u i l d i n g s c o u l d be r e n t e d  t o 60 cents  that  over  f a c t t h a t , as noted i n Chapter VI, r e n t a l r a t e s have  the  healthy  for  square f o o t  50  was  30 the g e n e r a l  r a t e f o r ground f l o o r r e t a i l  locations.  y  An  ''  economist would d e s c r i b e  t h i s s i t u a t i o n as one  economic r e n t i s equal t o $2.00 per an excess over normal r e t u r n has s h o r t run. the  i n which  square f o o t .  That i s ,  been produced over  However, as the v a l u e  of r e a l e s t a t e  i n c r e a s i n g c o s t of t h i s f i x e d resource  the  increases,  w i l l continually  reduce these excess p r o f i t s u n t i l a p o i n t of normal r e t u r n i s arrived at. Rental degree t h a t one  r a t e s i n Gastown have i n c r e a s e d landlord reported  o b t a i n the same r e n t f o r one i n h i s b u i l d i n g as was  t h t he has  to such a  been a b l e  h a l f of the ground f l o o r  obtained  to space  f o r the whole s i x s t o r e y  32 b u i l d i n g i n 1967.  Demand f o r t h i s p r o p e r t y  has  heavy t h a t t h i s owner b e l i e v e s t h a t he c o u l d have "three  been so rented  or four times the amount of f l o o r area" t h a t he had  available.  N  The  preceding  d i s c u s s i o n should  should  i t be assumed t h a t p r o p e r t y  —  not be taken to  suggest t h a t r e n t l e v e l s can c o n t i n u e t o r i s e without Nor  ,  owners can  limit.  set r e n t a l  r a t e s without c o n s i d e r a t i o n of the economic p o s i t i o n of t h e i r present  or p o t e n t i a l r e t a i l t e n a n t s .  Rather, one  must  be aware of the r e l a t i o n s h i p t h a t e x i s t s between r e n t l e v e l s and  the economic v i a b i l i t y of the I f Gastown, as an R-E-R  economically  area. d i s t r i c t , i s to become  v i a b l e over the l o n g f u n , the o p p o r t u n i t y  must  e x i s t f o r both p r o p e r t y owners and owners o f commercial f i r m s /to a t t a i n reasonable  r e t u r n s on investment.  In terms of  r e n t a l r a t e s , t h i s means t h a t r e n t l e v e l s must be s u f f i c i e n t t o cover the c o s t s and p r o f i t margin of the p r o p e r t y owners y e t must n o t impose an e x c e s s i v e burden on the r e t a i l e r . The economic h e a l t h of r e t a i l tenants i s of utmost importance t o r e a l e s t a t e owners.  i n Gastown In order  t h a t these owners be assured of r e g u l a r r e t u r n on the tenants must be a b l e t o meet the scheduled over the long r u n .  Should  investment,  r e n t payments  r e n t l e v e l s be s e t too h i g h i n  r e l a t i o n t o the r e t a i l e r ' s a b i l i t y be f o r c e d out of the premises.  t o pay, the tenants  will  I f r e n t s a r e s e t so high t h a t  l a r g e numbers of r e t a i l e r s a r e f o r c e d t o v a c a t e , the customer a t t r a c t i o n o f the d i s t r i c t c o u l d be damaged by the h i g h vacancy r a t e , the d i s r u p t i o n of the a r e a , and the l o s s of d i s t i n c t i v e firms.  I t i s , t h e r e f o r e , e v i d e n t t h a t a com-  promise must be reached i f both a r e t o p r o s p e r .  between p r o p e r t y owners and r e t a i l e r s P r o p e r t y owners must s e t r e n t s a t  l e v e l s s u f f i c i e n t t o p r o v i d e themselves with a  —  reasonable  r e t u r n on i n v e s t e d c a p i t a l but they must be w i l l i n g  to hold  these r e n t s t o l e v e l s t h a t r e t a i l e r s can a f f o r d so as. t o not damage the development of Gastown. The d a t a i n Chapter VI i n d i c a t e s t h a t a h i g h  propor-  t i o n of Gastown r e t a i l e r s pay e x c e s s i v e r e n t i n r e l a t i o n t o  sales.  I t was  tributing district  suggested t h a t t h i s w i l l be one  f a c t o r s to a h i g h r e t a i l during  of the  con-  f a i l u r e r a t e i n the  the next s i x months.  I f the r e t a i l  enter-  p r i s e s which are f o r c e d out of Gastown are not r e p l a c e d firms which can  afford  vacancy r a t e w i l l in rents.  these r e n t a l r a t e s , the  likely  resultant  b r i n g about a downward adjustment  However, i f demand f o r space i n Gastown remains  h i g h , r e n t s w i l l c o n t i n u e to  increase.  J  -  Implications  f o r the  The climate i n the  by-  Future  preceding  a n a l y s i s suggests t h a t the  i n Gastown i s such t h a t i t has  i n the p a s t and  f u t u r e a t t r a c t both s p e c u l a t i v e and  estate investors. opportunity  Properties  f o r both c a p i t a l  investment.  The  economic  long term r e a l  i n the Old Townsite p r o v i d e g a i n and  regular return  type of i n v e s t o r most p r e v a l e n t  by Gastown.  i n the  I f r e t u r n on r e a l e s t a t e investment f a l l s l e v e l a n t i c i p a t e d by the  owners, a number may  dozer d e v e l o p e r s " residential  real  f o r use  i n high i n t e n s i t y  sub-  present  be tempted to s e l l t o  schemes c l o s e to P r o j e c t  The  area  the degree of commercial success a t t a i n e d  s t a n t i a l l y below the property  the  on  w i l l e v e n t u a l l y depend upon f u t u r e developments i n the e s t a t e market and  will  "bull-  commercial  and  200.  success of l a r g e - s c a l e r e a l e s t a t e owners, such 33  as the Town Group, of Gastown.  will  It i s likely  s i g n i f i c a n t l y i n f l u e n c e the that t h i s w i l l  s t a r t a trend  future  toward the e n t r y of l a r g e b u s i n e s s e s i n t o the Gastown r e a l ~7 e s t a t e market.  These l a r g e f i r m s w i l l be a t t r a c t e d by  p o t e n t i a l f o r both high p r o f i t and Investors  appreciation.  of t h i s s c a l e w i l l be able to o u t b i d  e n t r e p r e n e u r s so t h a t , i f p r o p e r t y increase  capital  smaller  values continue to  a t the p r e s e n t r a t e , i t i s p o s s i b l e t h a t only  s c a l e i n v e s t o r s w i l l be a b l e to a f f o r d them i n the Further,  the  the unique c h a r a c t e r  buildings w i l l  future.  of investment i n h i s t o r i c  a l s o promote the e n t r y of b i g f i r m s .  i n v e s t o r s cannot a f f o r d to i n c u r the high  risk  Small  factor  a s s o c i a t e d w i t h investment i n t h i s type of p r o p e r t y .  Also,  as the market becomes more s o p h i s t i c a t e d , s u c c e s s f u l w i l l be those which are able t o c a p i t a l i z e on p a s t i n renovating  and  marketing these unique b u i l d i n g s .  l a r g e firms w i l l be able__to  large  firms  experience Only  a f f o r d "to develop s t a f f d e p a r t -  ments w i t h t h i s type of e x p e r i e n c e .  )  ——'  Footnotes:  Chapter  VII  "'"J. K h o u r i , " S p i r i t of Gastown. Triumphs over Lack of Knowhow," The Vancouver Sun, J u l y 18, 1970, p. 21. 2 For a d i s c u s s i o n of the p h y s i c a l and l o c a t i o n a l o r i g i n a of r e a l e s t a t e see. R. U. R a t c l i f f Re a-l E s t a t e > A n a l y s i s , New York: McGraw-Hill, 1961, p.p. 4.2-81. " ^ R a t c l i f f , Op_. C i t . , pp. 55-61 a l s o p r o v i d e s a d e s c r i p t i o n of the r e l a t i o n s h i p of o f f - s i t e and o n - s i t e improvements to the p h y s i c a l f o u n d a t i o n s of r e a l e s t a t e v a l u e . 4 ,New  P. M a r t i n , Real E s t a t e P r i n c i p l e s and M c M i l l a n , 1959, p. 260.  York:  Practices,  ^ I b i d . , pp. 280-301 p r o v i d e s a d e t a i l e d d e s c r i p t i o n of the t h r e e major v a l u a t i o n t e c h n i q u e s — t h e market, c o s t , and income a p p r a i s a l methods. 6  R a t c l i f f , Op.  C i t . , p.  7  I b i d . , p.  119.  8  I b i d . , p.  104.  118.  9 I b i d . , R a t c l i f f a l s o i d e n t i f i e d a f o u r t h type of i n v e s t o r , the c r e d i t o r - i n v e s t o r , which i s not the concern of t h i s paper. ^ O n l y two of the t h i r t y - f i v e r e p o r t i n g t h a t they occupy self-owned premises. ^R. Preservation, 1964, p. 10.  L. Montague and T. P. Wrenn, P l a n n i n g f o r Chicago: American S o c i e t y of P l a n n i n g O f f i c i a l s  12 I b i d . , p. 1 3  forms s t a t e d  I b i d . , pp.  9. 13-14.  14  . H. H o y t One Hundred Years of Land Values i n Chicago,.Chicago: U n i v e r s i t y o f Chicago P r e s s , 1933, p. 5, as c i t e d i n S. F. Weiss, The C e n t r a l Business D i s t r i c t i n Transition. C i t y and R e g i o n a l P l a n n i n g S t u d i e s , Research Paper No. 1, C h a p e l - H i l l , N.C.: U n i v e r s i t y of North C a r o l i n a , 1957, p. 11. f  15 Weiss, Op.  C i t . , p.  11.  ^ T h e t o t a l a s s e s s e d v a l u e of land and improvements w i t h i n the Gastown study area has been a d j u s t e d to remove the i n f l u e n c e of two f a c t o r s which might i n v a l i d a t e the r e s u l t s . A l l p r o p e r t y owned by the C i t y of Vancouver has been excluded because these items may p o s s i b l e y not be . assessed at f u l l value. A l s o , l a n d and b u i l d i n g s on the C.P.R. Telecommunications B u i l d i n g s i t e have not been i n c l u d e d so t h a t the t o t a l assessed value of improvements w i l l not be i n f l u e n c e d by the new c o n s t r u c t i o n which has taken p l a c e on t h i s l o c a t i o n s i n c e 1967. 17 Interview  H. Vander-Horst, owner of the E x p o s i t i o n G a l l e r y , w i t h the w r i t e r , September 22, 1970. 18  The v a l u a t i o n data f o r the two p r o p e r t i e s used as examples are as f o l l o w s : . 1968 Purchase 1967 T o t a l Location 1962 Purchase P r i c e Price Assessed Value 313 Water S t . $22,500 $17,500 $50,120 300 Water S t . 22,000 20,000 33,150 19 L. H. K i l l a m , P r e s i d e n t of the Town Group L i m i t e d , as c i t e d i n K h o u r i , Op. C i t . , p. 21. 20 The  UBC  T. Lautens, "Crepe Suzette and Cockroaches," Alumni C h r o n i c l e , Vol-. 24 (Autumn 1970) , p. 20. 21 , . , ' Ibid. T  22 April  The Economist, "San 5, 1969, p. 39 23  I b i d . , pp.  Francisco's  New  Gold Coast,"  39-40,  L. Thomas, "Restored Commercial B u i l d i n g s : How the C i t y Saves Face," San F r a n c i s c o Magazine, March 1968, . p. 26.  In o r d e r t o p r o t e c t the c o n f i d e n c e of the b u s i n e s s men who agreed t o p a r t i c i p a t e i n p e r s o n a l i n t e r v i e w s , i n d i v i d u a l respondents or f i r m s w i l l not be i d e n t i f i e d i n f o o t notes throughout t h i s s e c t i o n of the t h e s i s . 26 Confidential  response.  27 The data employed i n t h e " c a l c u l a t i o n of r e t u r n , on investment f o r the renovated b u i l d i n g i s as f o l l o w s : i. acquisition p r i c e — L a n d Registry Office; i i . renovation c o s t s — D . N . Spearing, A r c h i t e c t with Birmingham and Wood, Interview w i t h the w r i t e r , J u l y 22, 1970; i i i . r e n t a l r a t e s — q u e s t i o n n a i r e survey and secondary sources'; i v . p r o p e r t y t e x — C i t y of Vancouver Tax D i v i s i o n . 28  * E. N .• Yarmon, a r e a l t y e x p e r t w i t h Tankoos Yarman, one of Canada's l a r g e s t p r i v a t e r e a l e s t a t e i n v e s t ment and development f i r m s , i n a' d i s c u s s i o n w i t h a F i n a n c i a l Post i n t e r v i e w e r , s t a t e d t h a t , " i f we d e f i n e y i e l d [on investment p r o p e r t i e s ] as the cash r e t u r n a f t e r a l l o p e r a t i n g expenses, r e a l t y taxes and mortgage i n t e r e s t , but b e f o r e c a p i t a l c o s t allowance and income t a x e s , then the f o l l o w i n g y i e l d s are p r e t t y c u r r e n t : Apartment and town houses 9% t o 11% Shopping c e n t e r s 10% t o 12% M u l t i - t e n a n t o f f i c e b u i l d i n g s 8 t o 10% S i n g l e - t e n a n t o f f i c e b u i l d i n g s (net l e a s e s ) 7% t o 9% S i n g l e - t e n a n t i n d u s t r i a l b u i l d i n g s (net l e a s e s ) 8% t o 10%." Source: N. N a n k i v e l l , "What t o Watch f o r i n Real E s t a t e Market," The F i n a n c i a l Post, May 24, 1969, p. 37. F. Buckley of Macaulay N i c h o l l s M a i t l a n d and Co. L t d . , i n an i n t e r v i e w w i t h the w r i t e r (October 2, 1970) v e r i f i e d the v a l i d i t y of these e s t i mates as he s t a t e d t h a t " r e t u r n on commercial p r o p e r t i e s i n Vancouver i s comparable t o t h a t of o t h e r major Canadian cities." . 29 T h i s e s t i m a t e was prepared by c o m p i l i n g data from p e r s o n a l i n t e r v i e w s w i t h p r o p e r t y and commercial owners, the q u e s t i o n n a i r e survey, and secondary s o u r c e s . ^ F . Buckley, Macaulay N i c h o l l s M a i t l a n d and L t d . , I n t e r v i e w w i t h the w r i t e r , October 2, 1970. 3  31 K h o u r i , Op. Confidential  C i t . , p.  21.  Response.  Co.  Lautens, Op. C i t . , p. 20 estimated t h a t the t o t a l a c q u i s i t i o n p r i c e of the Town Group's Gastown p r o p e r t i e s amounted t o $400,000. K i l l a m i s quoted i n K h o u r i , Op. C i t . , p. 21 of the f a c t that the t o t a l amount spent by the f i r m i n t h e O l d Townsite on a l l aspects o f r e a l e s t a t e o p e r a t i o n (that i s , i n c l u d i n g both a c q u i s i t i o n and r e h a b i l i t a t i o n c o s t s ) i s $750,000.  CHAPTER V I I I  CONCLUSIONS AND EVALUATION OF THE STUDY  Conclusions  The zed  t o support  situation the  results  a n a l y s i s c n a be  utili-  two m a j o r c o n c l u s i o n s a b o u t t h e e c o n o m i c  i n Gastown.  thesis  to present  supporting  evidence.  1.  of the preceding  I t i s the purpose o f t h i s these  section of  c o n c l u s i o n s and t h e r e l a t e d  1  C o n c l u s i o n Number One GASTOWN IS RAPIDLY APPROACHING THE POINT WHERE I T WILL BE ECONOMICALLY VIABLE AS A RETAIL-ENTERTAINMENT-RESTAURANT DISTRICT IN WHICH CUSTOMER ATTRACTION IS BASED UPON THE UNIQUE APPEAL CREATED BY HISTORIC AND COMMERCIAL REHABILITATION A C T I V I T I E S . T h i s conc l u s i o n i s v a l i d e v e n t h o u g h ONE PORTION OF THE R-E-R C R I T E R I A IS NOT COMPLETELY SOUND. Supporting i.  Facts  Although  t o C o n c l u s i o n Number One:  G a s t o w n p r e s e n t l y does n o t s a t i s f y t h e  criteria, required f o r qualification R-E-R d i s t r i c t , that  i twill  That  i s , i tw i l l  the commercial  satisfy  customer t r a f f i c  these  as an e c o n o m i c a l l y  trends  i n the area  requirements  soon possess  suggest  i n the near f u t u r e .  the a b i l i t y  t o produce s u f f i c i e n t  viable  to attract  enough  s a l e s volume t o e n a b l e  a concentration  of R-E-R  categories  able l e v e l of p r o f i t w i t h i n the Gastown does h o t criteria  to operate a t a reason-  area.  at the p r e s e n t time s a t i s f y  f o r q u a l i f i c a t i o n as an e c o n o m i c a l l y v i a b l e  the R-E-R  d i s t r i c t because a l a r g e number of f i r m s have not y e t been a b l e to produce a l e v e l of s a l e s s u f f i c i e n t to cover t h e i r 2 operating  ' However, the t r e n d of r a p i d l y  costs.  customer t r a f f i c i d e n t i f i e d i n Chapter V  3  increasing  as w e l l as 4  s a l e s p o t e n t i a l a v a i l a b l e from the t o u r i s t market i n c r e a s i n g number of new to the a r e a , ^  i n the near f u t u r e .  combination w i t h the  and  the  o f f i c e workers coming  i m p l i e s t h a t these f i r m s w i l l g a i n  sales increases  mix,^  r e s i d e n t s and  the  substantial  These f a c t o r s , i n  a n t i c i p a t e d expansion of the  w i l l produce an e s t i m a t e d s a l e s i n c r e a s e  business-  of 110  per-  7 c e n t i n 1971. * There i s a s o l i d nucleus of f i r m s i n Gastown t h a t g  have a l r e a d y  attained substantial sales levels  the planned a d d i t i o n s  and many of  to the b u s i n e s s community i n the  Old 9  Townsite w i l l be The  l a r g e - s c a l e units with high  a d d i t i o n of these b u s i n e s s e s w i l l  the economic v i a b i l i t y  of the Old  s a l e s volumes.  s u b s t a n t i a l l y improve^!  Townsite.  Gastown must overcome a number of b a r r i e r s i n order to a t t a i n a p o s i t i o n t h a t i s e c o n o m i c a l l y v i a b l e . a t t r a c t a d d i t i o n a l customer t r a f f i c f u l l p o t e n t i a l and  I t must  i f i t i s to a c h i e v e i t s  some means must be  found to p r o t e c t  the  s m a l l o p e r a t o r s who  add so much t o the c h a r a c t e r and  d i v e r s i t y of the d i s t r i c t .  In order to preserve and  enhance  the area's customer a t t r a c t i o n power, the e x t e n s i v e p a r k i n g problem must be s o l v e d .  1 0  The r a t e of r e t u r n on investment produced  by  Gastown'businesses w i l l be c o n s i d e r e d i n subcategory ii.  The  ii.  o p p o r t u n i t y e x i s t s f o r a r a t e of r e t u r n equal  t o , or g r e a t e r than, 14 p e r c e n t per year on both r e a l e s t a t e and commercial investment  i n Gastown.  A r e t u r n on  investment  of t h i s order i s r e q u i r e d to s a t i s f y the economic c r i t e r i o n t h a t p r o f i t must a t l e a s t equal the p r e v a i l i n g prime i n t e r e s t r a t e p a i d on c o r p o r a t e b o n d s ,  1 1  p l u s a r i s k f a c t o r of 5  percent. Although  the m a j o r i t y of Gastown r e t a i l e r s have 12  not y e t been a b l e t o a t t a i n a reasonable l e v e l of p r o f i t , the l a r g e - s c a l e and experienced o p e r a t o r s g e n e r a l l y are w i t h i n reach of the r e t u r n on investment a d d i t i o n , s p e c u l a t i v e and long-term  objective.  In  1 3  investors i n real estate  i n the Old Townsite  have, i n most i n s t a n c e s , .been a b l e t o 14 surpass the p r o f i t l e v e l c r i t e r i o n . ilia.  In Chapter  IV of t h i s study, i t was p r e d i c t e d  t h a t Gastown-compatible b u s i n e s s e s w i l l occupy more than 50 p e r c e n t of the ground f l o o r l o c a t i o n s by m i d - 1 9 7 1 .  15  When t h i s o c c u r s , Gastown w i l l have s a t i s f i e d the f i r s t  half  of the f u n c t i o n a l component c r i t e r i o n f o r R-E-R The s i g n i f i c a n t a d a p t a t i o n of ground  districts. floor  loca-  t i o n s t o R-E-R use i s confirmed by the a n a l y s i s o f change i n the composition of the f u n c t i o n a l mix i n Gastown (see Table III) .  T h i s shows t h a t r e t a i l - t y p e use premises  i n c r e a s e d by 49 p e r c e n t from 1965 t o 1 9 7 0 . ^ iiib.  However, the t o t a l f l o o r area occupied by R-E-R.  a c t i v i t i e s i s not now, nor i s i t l i k e l y t o become i n the f o r e s e e a b l e f u t u r e , the l a r g e s t s i n g l e component of the f u n c t i o n a l mix i n Gastown.  Wholesale-type  ^  use i s p r e s e n t l y  17 the predominant  f u n c t i o n a l category  to remain so f o r some time, because  and can be expected the l a r g e s t  structures 18  i n the O l d Townsite  are o c c u p i e d by t h i s type of tenant.  In s p i t e o f t h i s f a c t o r , the speed a t which f u n c t i o n a l change has taken p l a c e i n Gastown has been very d r a m a t i c . than 81 p e r c e n t of the f i r m s d e s i g n a t e d as 19 are l e s s than one year o l d occupy  More  Gastown-compatible  and most of these b u s i n e s s e s  space t h a t was p r e v i o u s l y devoted t o wholesale-type  or s t o r a g e use. The b a s i c cause of the f a i l u r e of Gastown t o s a t i s f y the second h a l f of the f u n c t i o n a l component c r i t e r i o n r e l a t e s t o shortcomings  i n h e r e n t i n the a n a l y t i c a l t o o l  than d e f i c i e n c i e s w i t h i n the d i s t r i c t .  rather  The requirement  that  the t o t a l f l o o r area o c c u p i e d by R e t a i l - E n t e r t a i n m e n t Restaurant a c t i v i t i e s must be g r e a t e r than t h a t devoted t o  any o t h e r s i n g l e f u n c t i o n a l category b e f o r e a d i s t r i c t . can be c l a s s i f i e d of  as a R-E-R  area i s unreasonable  the e x p e r i e n c e of other c i t i e s .  Vieux C a r r e , the l a r g e s t and one  district.  For example, i n the  of the most s u c c e s s f u l  historic rehabilitation districts, amounts to o n l y 15.6  i n terras  commercial l a n d  use  p e r c e n t of the t o t a l of the whole  T h i s i s f a r below the 40.5  percent occupied  by  20 r e s i d e n t i a l use, the l a r g e s t iv.  category.  In order to ensure t h a t the a n a l y s i s of the  customer a t t r a c t i o n of Gastown was  based only upon those  f a c t o r s r e l a t e d to the h i s t o r i c charm of the area and  the  modernity and uniqueness of the b u s i n e s s f i r m s r e s i d e n t i n the d i s t r i c t , utilized was  the Gastown-compatible d e f i n i t i o n t h a t  as the b a s i s f o r the major p o r t i o n of the  was  study  s t r u c t u r e d so as to i d e n t i f y o n l y the a p p r o p r i a t e  businesses.  That i s , i t i n c l u d e d o n l y those  businesses  which: - i d e n t i f y w i t h the c u l t u r a l and h i s t o r i c charm of the a r e a , - u t i l i z e the d i s t i n c t i v e a r c h i t e c t u r e of the area i n unique and o r i g i n a l ways, - add t o the v a r i e t y and d i v e r s i t y of the d i s t r i c t , - handle unique and h a n d - c r a f t e d items and emphasize p e r s o n a l s e r v i c e and l e i s u r e l y browsing, and - are c o n s i d e r e d to be n o v e l , y e t i n the mainstream of contemporary l i f e s t y l e s . 2 1 The p o r t i o n of the appeal of Gastown t h a t i s based upon t h i s v a r i e t y and uniqueness may p r e s e n t l y d e v e l o p i n g i n the a r e a .  be threatened by  Space f o r the  trends  anticipated  e n t r y o f a s u b s t a n t i a l number o f l a r g e - s c a l e businesses i n t o t h e O l d Townsite w i l l l i k e l y be o b t a i n e d by f o r c i n g 22 out many o f the s m a l l o p e r a t o r s p r e s e n t l y l o c a t e d t h e r e . The  l o s s o f these businesses w i l l  ter  o f Gastown.  2.  C o n c l u s i o n Number Two  s e v e r e l y damage t h e charac-  GASTOWN WILL SURVIVE AND PROSPER OVER THE LONG RUN AS A RETAIL-ENTERTAINMENT-RESTAURANT DISTRICT, UNLESS SOME UNFORESEEN OR UNCONTROLLABLE FORCE INTERVENES. Supporting F a c t s t o C o n c l u s i o n Number Two F a c t o r s t h a t i n f l u e n c e and determine the long term success o f Gastown as a R-E-R d i s t r i c t can b e s t be examined w i t h i n four c a t e g o r i e s : -. -  l e v e l o f investment, degree o f o p e r a t i n g success, s t r e n g t h o f customer acceptance, and e x t e n t o f commitment by i n t e r e s t groups.  Because a s i g n i f i c a n t number o f i n v e s t o r s have been 23 made l a r g e c a p i t a l i n p u t s i n Gastown, a s t r o n g v e s t e d i n t e r e s t i n the a r e a . take whatever a c t i o n necessary  they have  developed  They w i l l , t h e r e f o r e ,  t o ensure the success o f  the d i s t r i c t so as t o p r o t e c t t h e i r investments.  Many o f  these owners a r e knowledgeable, well-known businessmen who have t h e necessary experience and c o n t a c t s t o promote development of the a r e a .  '  the^^J —  The  success a t t a i n e d by commercial  and  real  e s t a t e i n v e s t o r s has been a l r e a d y c o n s i d e r e d as p a r t of the s u p p o r t i n g data f o r the f i r s t c o n c l u s i o n .  In g e n e r a l ,  the o p e r a t i n g r e s u l t s of the experienced segment of the Gastown b u s i n e s s community are s u f f i c i e n t to support these 24 f i r m s and a t t r a c t a d d i t i o n a l i n v e s t o r s .  The e n t r y of  a d d i t i o n a l experienced entrepreneurs w i l l i n c r e a s e the economic s t r e n g t h of the d i s t r i c t ,  and promote the long  run success of the Old Townsite.  -—  The p r e c e d i n g a n a l y s i s has noted t h a t  substantial  i n c r e a s e s i n s a l e s and customer t r a f f i c are a n t i c i p a t e d i n the Old Townsite.  The growing  p o p u l a r i t y of the area and.  i t s acceptance by the r e s i d e n t s of Vancouver should a l s o ensure the long-term p r o s p e r i t y of Gastown. I t has a l r e a d y been noted t h a t i n v e s t o r s have developed  a v e s t e d i n t e r e s t i n the success o f Gastown and  w i l l work t o a c h i e v e t h i s end.  However, o t h e r groups have  a l s o made f i r m commitments i n the d i s t r i c t .  The C i t y of 25  Vancouver has undertaken will  likely  a d e t a i l e d study of Gastown  which  l e a d t o l a r g e c a p i t a l e x p e n d i t u r e s and other  commitments i n the a r e a .  The C i t y i s a l s o anxious to o b t a i n  the s o c i a l b e n e f i t s which r e s u l t from t h i s r e h a b i l i t a t i o n to p r o t e c t i t s tax base.  The Residents of Gastown are con-  cerned about the environment committed themselves  and  i n which they l i v e ;  they have  to l a r g e - s c a l e c a p i t a l expenditure on  the r e n o v a t i o n  of the S t a n l e y  Buildings into a residence  and New  Fountain  f o r s i n g l e men.  Hotel  In a d d i t i o n  t o c a p i t a l , the merchants of Gastown have i n v e s t e d time and the  efforts.  T h i s group w i l l  support Gastown over  long run, because l a r g e r p r o f i t s w i l l  f i r m s as Gastown becomes more and In view of the preceding  their  accrue t o  more s u c c e s s f u l . p o i n t s , i t i s reasonable  t o conclude t h a t Gastown w i l l prosper over the long unless  their  some unforeseen or u n c o n t r o l l a b l e f o r c e  Examples of such f o r c e s are the d e s t r u c t i v e  run  intervenes.  influence  o f i n t e n s i v e land s p e c u l a t i o n or the b a r r i e r t h a t w i l l created recent  i f P r o j e c t 200  severs  Gastown i n h a l f .  be  Even the  i s s u e of f o r c e d Sunday c l o s i n g c o u l d s e v e r e l y damage  the economic h e a l t h of the d i s t r i c t .  Many f i r m s which  p r e s e n t l y produce i n s u f f i c i e n t p r o f i t w i l l be i r r e p a i r a b l y harmed i f they are c u t o f f from Sunday b u s i n e s s ; f o r c e them out of C r i t i q u e of the  this  may  business.  Study  A number of the weaknesses of t h i s study have already  been d e a l t w i t h .  To e s t a b l i s h the l i m i t a t i o n s of  paper, i t i s worthwhile to r e i t e r a t e , and major i s s u e s .  enlarge  the  upon, the  The Approach:  L i m i t a t i o n s and C r i t i c i s m s  A s t r o n g case can be made t o support  the c o n t e n t i o n  t h a t the s u b j e c t matter o f t h e study i s too broad.  This  argues t h a t i t would have been more d e s i r a b l e t o i s o l a t e one  area r e l e v a n t t o the economic s i t u a t i o n i n Gastown and  c o n c e n t r a t e the study upon t h i s f a c t o r .  I n t h i s way, t h e  s e l e c t e d t o p i c c o u l d have been examined i n depth and would have been a b l e t o d e a l w i t h very s p e c i f i c , problem areas and recommendations. T h i s argument i g n o r e s the f a c t t h a t no economic s t u d i e s have p r e v i o u s l y been conducted d e t a i l e d examination  i n Gastown.  The  of a s i n g l e economic aspect would be  i r r e l e v a n t , because i t would e x i s t as an i s o l a t e d data t h a t would be extremely make use o f .  difficult  source  f o r interested parties to  T h i s approach a l s o i g n o r e s t h e i n t e r - r e l a t e d  nature o f the economic components o f G a s t o w n — e a c h  factor 27  i s i n f l u e n c e d , t o some e x t e n t , by other f a c t o r s i n the a r e a . The Hypotheses: The  L i m i t a t i o n s and C r i t i c i s m s  hypotheses o f ' t h e study would appear t o be  e s s e n t i a l l y c o r r e c t w i t h the e x c e p t i o n o f t h e R-E-R t o t a l f l o o r area c r i t e r i o n .  T h i s l i m i t a t i o n on the d e f i n i t i o n was  imposed i n an attempt t o e s t a b l i s h a q u a n t i f i a b l e measure t h a t c o u l d be u t i l i z e d  t o determine the p o i n t a t which an  h i s t o r i c a r e a can be d e s i g n a t e d as a commercial  rehabilitation  district.  The  shortcomings  of t h i s term can be  c o r r e c t e d by i n c l u d i n g Gastown-compatible  easily  residential,  p r o f e s s i o n a l o f f i c e , and h o t e l s i t e s i n the R-E-R  defini-  tion. The Research Techniques: '.\ ,  The  L i m i t a t i o n s and  Criticisms  r e s e a r c h methodology can be c r i t i c i z e d f o r a  number of reasons.  The use of p e r s o n a l i n t e r v i e w s i n t r o d u c e d  t h e . p o s s i b i l i t y of b i a s , data o m i s s i o n , and f a l s i f i c a t i o n of responses.  These c r i t i c i s m s can a l s o be a p p l i e d t o the  u t i l i z a t i o n of the q u e s t i o n n a i r e survey t e c h n i q u e . dents may  Respon-  have p r o v i d e d i n v a l i d data because they misunder28  stood the q u e s t i o n s  or because they were f o r c e d t o e s t i m a t e 29  o p e r a t i n g r e s u l t s i n the absence o f the a c t u a l d a t a . a n a l y s i s was  The  a l s o h i n d e r e d by the f a i l u r e t o query merchants  about a number o f important o p e r a t i n g s t a t i s t i c s . ^  A  p r o b a b l e cause of some of the i n v a l i d responses  failure 31 field.  3  i s the  t o p r e - t e s t the q u e s t i o n n a i r e b e f o r e u s i n g i t i n the The case study approach who  would be c r i t i c i z e d by  those  would p o i n t out t h a t the causes and e f f e c t s a s s o c i a t e d  w i t h commercial  r e h a b i l i t a t i o n a c t i v i t i e s i n one c i t y  are  not n e c e s s a r i l y those t h a t w i l l come i n t o p l a y i n another . 32 city.  That i s , i t i s i m p o s s i b l e t o g e n e r a l i z e or draw  c o n c l u s i o n s from a s i n g l e example.  .The Data Employed: The mation  L i m i t a t i o n s and C r i t i c i s m s  l a c k o f sources of e s s e n t i a l economic  about Gastown has been emphasized throughout.  inforThis  d e f i c i e n c y f o r c e d dependence upon sources and types o f data which might not have otherwise been u t i l i z e d .  For example,  i f market s a l e s p r i c e data o r v a l i d a p p r a i s e d v a l u e s o f Gastown r e a l e s t a t e had been a v a i l a b l e , assessment data would n o t have been used t o estimate t r e n d s i n p r o p e r t y v a l u e changes. daytime  In some c a s e s , such as the measurement o f  p o p u l a t i o n , the l a c k o f sources made i t i m p o s s i b l e  -to o b t a i n major p o r t i o n s o f t h e necessary i n f o r m a t i o n . These comments a r e n o t i n t e n d e d t o suggest t h a t the study i s based upon i n v a l i d d a t a , but t h a t , e v a l u a t i o n o f t h e r e s u l t s should be made o n l y w i t h f u l l knowledge o f these limitations. A n a l y t i c a l Methods:  L i m i t a t i o n s and C r i t i c i s m s  Every p o s s i b l e e f f o r t has been made t o determine and employ a n a l y t i c a l methods b e s t s u i t e d t o the s p e c i f i c needs o f the study. . As demonstrated documentation,  by the supplementary  the methods o f a n a l y s i s t h a t have been u t i l i z e d  are w i d e l y accepted by r e a l e s t a t e and business r e s e a r c h e r s . However, c r i t i c i s m might be d i r e c t e d a t the two new concepts developed by the author f o r the s t u d y — t h e concept o f the "R-E-R d i s t r i c t " and t h a t o f the "Gastown-compatible f i r m . "  The  j u s t i f i c a t i o n of the use  the fact :  lies  t h a t no a l t e r n a t i v e s were a v a i l a b l e t h a t  have p r o v i d e d e q u i v a l e n t these two  of these c o n s t r u c t s  concepts has  results.  not  The  in  could  j u d i c i o u s use  of  i n v a l i d a t e d the r e s u l t s of  the  study. Because no o p e r a t i n g  standards are  specifically  prepared f o r commercial h i s t o r i c d i s t r i c t s , the  retailing  r a t i o s chosen f o r purposes of comparison may  be  subject  dispute.  been made to  However, every p o s s i b l e e f f o r t has  determine and needs o f the The  employ standards which are best s u i t e d to  The  Suggestions f o r  Use  f i n d i n g s presented i n t h i s paper can  f o r a number of purposes by d a t a about Gastown.  can  The  i n d i v i d u a l s who  require  background i n f o r m a t i o n  of the O l d Townsite t h a t i s i n c l u d e d  be  utilized  economic  about  the  i n Chapter I I I  be of v a l u e to a wide v a r i e t y of i n t e r e s t groups t o  the c u r r e n t  the  study.  Research F i n d i n g s :  evolution  to  s i t u a t i o n i n the d i s t r i c t i n c o n t e x t .  a s s i s t i n t e r e s t e d p a r t i e s to understand how p r e s e n t s t a t e of a f f a i r s was  arrived at.  and  why  This the  research  f i n d i n g s are Gastown merchants, p r o p e r t y owners i n the the  city.  will  However, the major  groups l i k e l y t o b e n e f i t from knowledge of the  Townsite, and  set  Old  I n d i v i d u a l l y , r e t a i l e r s w i l l be a b l e t o u t i l i z e the r e s u l t s of t h i s study to e v a l u a t e the a t t r a c t i v e n e s s of p o t e n t i a l commercial  investment  i n Gastown and t o weigh  a l t e r n a t i v e courses o f a c t i o n a v a i l a b l e t o b u s i n e s s e s a l r e a d y located there. Merchants'  C o l l e c t i v e l y , Gastown merchants  (through the  A s s o c i a t i o n ) can use the i n f o r m a t i o n t o formulate  f u t u r e p l a n s and t o support r e q u e s t s t o the C i t y C o u n c i l f o r a d d i t i o n a l s e r v i c e s and o t h e r a s s i s t a n c e .  F o r the purposes  of r e t a i l d e c i s i o n - m a k i n g , t h e d a t a i s s u f f i c i e n t l y a c c u r a t e and  valid. L i k e w i s e , p r o p e r t y owners can employ the f i n d i n g s  i n the e v a l u a t i o n and d i r e c t i o n o f courses o f a c t i o n and investment  i n Gastown.  However, the h i g h degree  o f uncer-  t a i n t y a s s o c i a t e d w i t h p r o p e r t y v a l u e change i n the area and the shortcomings  i n h e r e n t i n the data sources suggest  t h i s should be approached  i n an extremely  that  j u d i c i o u s manner.  The C i t y of Vancouver may be a b l e t o employ a p o r t i o n o f the d a t a i n i t s Stage I I study.  T h i s , however,  i s d o u b t f u l , s i n c e the two s t u d i e s do n o t employ the same boundaries o r c o n c e p t u a l framework and the d a t a i n the p r e s e n t study w i l l be outdated by the time the c i t y i s prepared t o use i t .  T h i s economic study w i l l be o f g r e a t e s t v a l u e t o  the c i t y i n two a r e a s — a s a source o f i d e a s f o r the Stage I I study and as a check upon the r e s u l t s o f the Stage T h i s paper may suggest methodologies can be employed i n the c i t y study.  I I study.  o r d a t a sources which A t the same time, i t can  be u t i l i z e d as a rough t e s t of the Stage I I . r e s u l t s comparing the c i t y ' s f i n d i n g s w i t h those of an  by  independent  researcher. Recommendations f o r F u r t h e r Study The  study has d i s c l o s e d a number o f areas f o r  further research. 1.  These i n c l u d e :  A re-examination  of the economic f a c t o r s i n Gas-  town over a longer study p e r i o d : undertaken  -  I f a s i m i l a r study can  be  two or t h r e e years hence, the r e s e a r c h f i n d i n g s  and r e s u l t a n t c o n c l u s i o n s w i l l be more v a l i d over the long run because t r e n d s w i l l have been determined  from a more  s o l i d data base and the area w i l l have begun t o s t a b i l i z e ; 2.  A much more e x t e n s i v e study of the economic  i n Gastown: undertaken  factors  T h i s c o u l d be s i m i l a r t o the i n v e s t i g a t i o n t o be by the C i t y P l a n n i n g Department  Stage I I Study) and  (that i s , the  should p r o v i d e f o r a l a r g e f o r c e of  workers and adequate f i n a n c i n g .  A p r o j e c t of t h i s  field  nature  would be a b l e t o overcome many of the problems a s s o c i a t e d w i t h the l a c k of r e q u i r e d i n f o r m a t i o n because i t would have a v a i l a b l e the r e s o u r c e s to generate  the most a p p r o p r i a t e d a t a .  T h i s study should p r o v i d e f o r a n a l y s i s o f the economic f a c t o r s r e l e v a n t t o non-Gastown-compatible f i r m s , examination  of  f u n c t i o n a l change i n l o c a t i o n s i n a d d i t i o n to those a t ground l e v e l , and d e t e r m i n a t i o n of c h a r a c t e r i s t i c s of the market segment from which Gastown draws i t s customer  traffic;  3.  A complete c o s t - b e n e f i t a n a l y s i s of commercial  r e h a b i l i t a t i o n i n terms of the advantages t h a t accrue both p r o p e r t y owners and 4.  to  tenants;  An economic a n a l y s i s o f the consequences of  a l t e r n a t i v e courses of a c t i o n a v a i l a b l e to the v a r i o u s groups w i t h v e s t e d i n t e r e s t s i n the r e j u v e n a t i o n of Gastown: The  examination  c o u l d , i n t u r n , take the p o i n t - o f - v i e w of  the C i t y of Vancouver, Old Townsite p r o p e r t y owners, Gastown r e t a i l e r s , and r e s i d e n t s o f the area; 5.  and  Economic s t u d i e s of other h i s t o r i c d i s t r i c t s i n  North America:  Once t h i s data has been compiled,  i t would  be p o s s i b l e t o determine i f b a s i c f o r c e s or trends  charac-  t e r i s t i c of h i s t o r i c and commercial r e h a b i l i t a t i o n  areas  can be i s o l a t e d . utilized  Knowledge of these f a c t o r s c o u l d be  to p r e d i c t changes i n o t h e r h i s t o r i c p r e c i n c t s ,  o r t o guide the development of these  districts.  Footnotes:  Chapter  VIII  B e c a u s e t h e c o n c l u s i o n s a r e d e t e r m i n e d by t h e h y p o t h e s e s f o r m u l a t e d f o r t h e s t u d y , t h e same f o r m a t has b e e n e m p l o y e d i n t h e p r e s e n t a t i o n o f t h e c o n c l u s i o n s , as was p r e v i o u s l y u t i l i z e d to s e t out the hypotheses. This i s intended t o p r o v i d e f o r e a s i e r understanding of the conc l u s i o n s and s u p p o r t i n g d a t a .  2 Gastown  See C h a p t e r Businesses.  VI, Operating  Results of Selected  3  See C h a p t e r V, o f Gastown.  D a y t i m e P o p u l a t i o n and  See  Chapter  V,  I m p l i c a t i o n s f o r the  ^See  Chapter  IV,  I m p l i c a t i o n s f o r the  Future.  ^See  Chapter  IV,  I m p l i c a t i o n s f o r the  Future.  Chapter  IV,  I m p l i c a t i o n s f o r the  Future.  Attraction  Customer  4  Future.  7 See  8 Gastown  See C h a p t e r Businesses.  VI, Operating  Results of Selected  9 See Old  Chapter  ^Chapter Townsite.  VI,  IV, The  I m p l i c a t i o n f o r the Nature of Business  Future. Change i n  the  ^ T h e F i n a n c i a l P o s t , "More L e a p on Bond Bandwagon," M a r c h . 1 4 , 1970, pp. .1,8 r e p o r t e d t h a t t h e p r e v a i l i n g , p r i m e i n t e r e s t r a t e on c o r p o r a t e bonds was 9 p e r c e n t d u r i n g t h e f i r s t q u a r t e r o f 1970.  12 Gastown  See C h a p t e r . V I , Businesses.  Operating  Results of Selected  VI, Operating  Results of Selected  13 Gastown  See C h a p t e r Businesses.  See Chapter V I I , The Nature of P r o p e r t y Value Change i n the O l d Townsite and A n a l y s i s o f Rate of Return on Gastown P r o p e r t i e s . 15 See Chapter IV, I m p l i c a t i o n s f o r the .Future. ^ S e e Chapter IV, T a b l e I I I : F l o o r Use: 1965-1970.  Changes i n Ground  17 Vancouver C i t y P l a n n i n g Department. Land Use: Downtown Vancouver, 1970. T e c h n i c a l Report Supplement to Downtown Vancouver P l a n , Concepts f o r Development. Vancouver: C i t y P l a n n i n g Department, 1970. 18 The h i g h c o n c e n t r a t i o n o f wholesale-type b u s i n e s s e s i n Gastown i s i l l u s t r a t e d by t h e f a c t t h a t . t h e i n d i v i d u a l t o t a l f l o o r areas o f both the L e c k i e B u i l d i n g (220 Cambie S t r e e t ) and the K e l l y B u i l d i n g (367 Water S t r e e t ) exceeds' the t o t a l area devoted t o Gastown-compatible R-E-R uses. 19 See Chapter IV, The Nature o f Business Change i n the O l d Townsite. 20 , Bureau of Governmental Research, P l a n and Program f o r the P r e s e r v a t i o n of the Vieux C a r r e . New O r l e a n s : Bureau o f Governmental Research, 1968, pp. 51-5.4. 21 See Chapter IV, The Nature o f Business Change i n Gastown. 22 See Chapter V I , I m p l i c a t i o n s f o r the F u t u r e . 23 See Chapter V I , A n a l y s i s o f O p e r a t i n g R e s u l t s o f . S e l e c t e d Gastown Business and Chapter V I I , The Nature of P r o p e r t y Value Change i n the O l d Townsite and A n a l y s i s of Rate o f Return on Gastown P r o p e r t i e s . T o t a l investment i n Gastown-compatible b u s i n e s s e s amounts t o $2.2 m i l l i o n , w h i l e $1.5 m i l l i o n has been i n v e s t e d i n l a n d , b u i l d i n g s , and improvements d i r e c t l y r e l a t e d t o the r e h a b i l i t a t i o n a c t i v i t i e s . 24 • The most s p e c t a c u l a r Gastown success s t o r y t o date concerns the O l d S p a g h e t t i F a c t o r y (53 Water S t r e e t ) . T h i s r e s t a u r a n t was o n l y opened i n l a t e March, 1970,. y e t r e c e n t g r o s s i p i n the b u s i n e s s community o f the O l d Townsite s t a t e s t h a t a l l bank loans were r e p a i d from cash flow by  October o f the same year. Source: T. W i l l o x , P u b l i s h e r of the Gastown Gazette. Interview with the w r i t e r , September 17, 1970. 25 See Chapter I I I , Plans f o r Rejuvenation O l d G r a n v i l l e Townsite.  o f the  26 For r e p o r t s on the r e c e n t p r o g r e s s i o n of developments i n the Sunday c l o s i n g i s s u e i n Gastown, see: I. MacAlpine, "Close Gastown Sunday AG Orders," The Vancouver P r o v i n c e , November 16, 1970, pp. 1-2; J . Gibbs, "Shut Down on Sundays Gastown Merchants T o l d , " The Vancouver Sun, November 16, 1970, pp. 1-2; The Vancouver P r o v i n c e , "Gastown F i g h t s f o r Reprieve," November 17, 1970, pp. 1-2; S. Honeyman, "Gastowners Defy Gov't," The Vancouver Sun, November 17, 1970, pp. 1-2; The Vancouver P r o v i n c e , "Gastown O f f e r e d Help i n Sunday Law B a t t l e , " November 18, 1970, pp. 1-2; The Vancouver Sun, "Campbell Swinqs f o r Gastown," November 18, 1970, pp. 35; A. Young, " L i t t l e Hope Gastown A ' H i s t o r i c S i t e ' , " The Vancouver P r o v i n c e , November 19, 1970, p. 31; D. MacLachlan, "Shoppers Plead f o r An Open Gastown," The Vancouver P r o v i n c e , November 23, 1970; I . Thompson, "Gastown: What I t I s — W h a t I t Is Becoming," The Vancouver Sun, November 23, 1970, p.35. 27 For example, r e n t a l r a t e s are i n s e p a r a b l y t i e d to the commercial success of business f i r m s l o c a t e d i n Gastown. I t i s i r r e l e v a n t f o r p r o p e r t y owners to c o n s i d e r r e n t i n c r e a s e s i f the tenant-merchants have not been a b l e t o r e a l i z e p r o f i t s from t h e i r o p e r a t i o n s . 28 The r e t u r n on investment q u e s t i o n (see Appendix A, Question C6) appears t o have been a q u e s t i o n t h a t was o f t e n misunderstood by respondents. 29 I t proved t o be p a r t i c u l a r l y d i f f i c u l t f o r the owners of b u s i n e s s e s which were l e s s than s i x months o l d to estimate 1970 s a l e s r e s u l t s . ^ F o r example, important q u e s t i o n s about the amount of working c a p i t a l and the l e v e l of a t t a i n e d markup were omitted. 3  31 I t i s l i k e l y t h a t p r e t e s t i n g of the q u e s t i o n n a i r e would have d i s c l o s e d the shortcomings a s s o c i a t e d with the r e t u r n on investment q u e s t i o n . 32 For example, the f o r c e s which promoted commercial r e h a b i l i t a t i o n i n San F r a n c i s c o appear t o be v e r y d i f f e r e n t from those t h a t have i n f l u e n c e d Gastown.  BIBLIOGRAPHY  I.  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