Vancouver city council has voted to change the land-use designation for four blocks of the Arbutus Corridor along Fir Street, allowing Canadian Pacific Railway to buy that area back for $1.

Staff proposed to remove four blocks of the Arbutus Corridor — which was bought from Canadian Pacific Railway in 2016 for $55 million — from their development plan, because they "are not required for transportation or greenway purposes."

The area is a stretch of the old railway, four blocks in length from West 5th to West 1st Avenue along Fir Street.

Once approved by council, it triggered a clause in the deal with CP that would allow them to buy back the land for $1.

"It's not the most straightforward agreement that makes sense to the average person. We need to voice dissent," said David Chen, mayoral candidate for the ProVancouver party, which urged people to attend Wednesday evening's meeting and voice their disapproval.

"The public should be very aware of how any space that the city has acquired is being used, and … is used efficiently and effectively. Especially in a housing crisis."

On Wednesday night, council voted 6-2 in favour of the proposal. Councillors Adriane Carr and Melissa De Genova voted against the proposal. Gregor Robertson, Andrea Reimer and Elizabeth Ball were absent.

City surprised by the surprise

Vancouver transportation director Lon LaClaire said he was confused by the sudden interest in the decision, because the city has been signalling for some time that they wouldn't be requiring the land as part of their transportation network.

"The purchase agreement has been on the city website since spring 2016," he said.

The lands currently owned by the City of Vancouver that they are proposing to offer back to CP for $1. (City of Vancouver)

"It's something we've been talking about with the public … for a year and a half, two years. And it got reported to council in July. So the fact that people are surprised by that is a bit surprising to me."

The city has been working over the last two years on plans to transform the former rail line — which runs from West 1st Avenue and Fir Street to Southwest Marine Drive and Granville — into a greenway and active transportation network.

But ultimately, the first four blocks didn't work well for the network.

"The particular challenge is the [width] of these properties from Fir is only 6 to 12 metres. That's a little problematic for making a safe crossing," he said.

If CP Rail chooses to buy back the land, they will be obligated to put it up for sale, with any proceeds going into a revenue-sharing agreement between it and the city.

CP Rail said they had no comment on the city's recent moves.

Rezoning before election

The Arbutus rezoning is one of three rezoning issues the public will give feedback on at the hearing, along with changes that would allow townhouses along further areas of the Cambie Corridor and in Grandview-Woodlands, to the east of Broadway and Victoria Drive.

Council also faces a vote before the Oct. 20 local election on allowing duplexes throughout the entire city.

"If these issues were truly important to Gregor Robertson and Vision Vancouver, why did they not move forward with them at an earlier time?" said NPA Coun. Melissa De Genova.

"I think it's important that we do public consultation properly instead of quickly."

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