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88 pages Office, Editorial 985-2131 Display Advertising 980-0511

CHRIS McKENZIE stands by the pool of the Capilano Athletic Health Ciub. The
club is owned by his father Keith. The family, area residents and club members
ate angry over a proposai by Larco Enterprises to redevelop the club site as res-
idential housing. McKenzie has a five-year lease with Larco which expires on
Aug. 31, 1996. Turn to page three for background on the site.

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Residential development plans
announced for North Van site

THE OWNERS of a_ Lower
Capilano area property that has
housed an athletic club for the
past 30 years came under attack
Tuesday from angry area home-
owners.

By Surj Rattan
News Reporter

The company proposes to
demolish the sports facility and
replace it with a residential com-
plex.

Larco Enterprises Inc., the
owners of the Park Royal Shop-
ping Centre, purchased a 4.5-acre
(1.8-hectare) site at 2035 Fullerton
Ave. in North Vancouver three
years ago.

The site is occupied by the
Capilano Athletic Health Club.
Larco plans to pull the lease of
the athletic club.

Larco has agreed to lease part
of the redeveloped site to a focal
Lions Club to provide seniors’
housing.

But Keith McKenzie, the owner
of the athletic club, said he will
take Larco to court over the pro-
posed club closure. He is not
satisfied with the buyout offer
Larco has made to him.

On Tuesday, Larco’ held a
public meeting to tell area home-
owners of the company’s plans
and to solicit public response for
its development proposal.

John Haibeck, a development
manager under contract to Larco,
said that while no formal rezoning
application has teen made to
North Vancouver District, the
company has met with district
staff.

Haibeck said a formal applica-
tion will not be made for some
time. He said that it is not known
at this point what form a residen-
tial development would take.

But Haibeck said a highrise de-
velopment was a possibility.

He added that several groups
have approached Larco in the past
with interest in purchasing the site
for a variety of developments.
Proposals have included the con-
struction of a church, a large

hotel and an intermediate-care fa-
cility.

All have been turned down by
Larco.

The site is currently zoned for
commercial and recreational use.

McKenzie has a five-year lease
with Larco. The lease expires on
Aug. 31, 1996. McKenzie also has
an option to renew the lease for a
further five years.

But the lease also contains 2
demolition clause.

The demolition clause allows
the landlord to terminate the lease
prior to expiry if the landlord
decides 1o demolish the existing
building and replace it with
another structure.

But McKenzie said he has in-
vested close to $800,000 on build-
ing renovations and equipment for
his athletic club. He maintains
that Larco is only offering him
$400,000.

“The agreement we had was
that we would have been compen-
sated for what we put into the
club. That option was taken away
from us,”’ said McKenzie,

But on Wednesday, Larco
senior vice-president Shiraz Lalji
said an audit conducted by the
company, with McKenzie’s per-
mission, found that McKenzie had
invested $400,000 in the athletic
club,

But at Tuesday night’s meeting,
McKenzie told Haibeck that he
will take the issue to court.

“If you think I’m going to put
$800,000 into it (athletic club) and
I’m going to take $400,000 (from
Larco), you can go fly a kite,’’
said McKenzie.

“We've offered you all your
money back,’’ replied Haibeck.
“We have had several meetings
with Mr. McKenzie and we have a
deal signed by Mr. McKenzie.”’

Lalji said the athletic club is ‘‘a
very old building’? and needs. to
be rebuilt. He added that Larca
does not fee! the club can succeed
in the future.

Lalji said that Larco did not
plan to redevelop the site when it
originally purchased the property.

Lalji said Larco will look after

See Larco page 3

Index

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