July 28, 2014

E. Hunter Harrison
Chief Executive Officer
Canadian Pacific
7550 Ogden Dale Road SE
Calgary, AB, T2C 4X9

Dear Mr. Harrison:

Thank you for your recent letter, which lays out your views on our shared interests with
the Arbutus Corridor.

I would like to clarify that our City Manager, Dr. Penny Ballem, has been in steady
communication with CPs Jason Copping on the Corridor and, as recently as July 12,
2014, discussed potential options for moving forward.

The CP visioning process, to which you refer, maps out a coordinated development for
the Corridor lands supporting greenway and community gardens, public transportation
and EcoDensity. This concept plan resonates with the Citys vision with the exception of
the EcoDensity component, as the Official Development Plan (ODP) does not contain
any reference to EcoDensity. There is no reference in the ODP for any land
development beyond a greenway, and potentially a light-rail transit system. These facts
are the basis for the fundamental difference in our assumptions in regard to the value of
the Corridor.

The City is fully prepared to engage in an approach for completing a transaction using
innovative mechanisms to achieve our mutual goal; however, achieving agreement on
the land value related to the Corridor remains the challenge.

The City has undertaken its due diligence in regard to the appraisal of the Corridor, and
we disagree with you on what fair market value is for the land. Our assumptions are
made in the context of the ODP, the existing and future allowed uses of the Corridor
under the ODP and federal law, and the relative lack of any commercial opportunity on
the Corridor. CP assumes the fair market value is based upon significant commercial
opportunity with development, leading to a value that is significantly higher (five-fold)
than an appraisal based on the allowable use of the land. The City does business very
transparently and our financial transactions are subject to significant scrutiny. Any
transaction we undertake with CP will undergo the scrutiny of land economists,
transportation experts, other academics, and the general public.






In the discussions between the City and CP to date, and in our letter of offer dated May
12, 2014, the City Manager recognized that, if there is any future change to the ODP by
a future Council to allow for broader land use, any agreement reached by the City and
CP can reflect a methodology to ensure that CP receives its rightful share of the
enhanced land value. This is fair and acknowledges the fact that land use regulation can
be adjusted by future Councils. However, to be clear, as Mayor I do not support
changing the ODP along the Corridor.

On another note, I would like to respectfully request that CP cease efforts to remove
community gardens along the Corridor. In fairness to the residents along the Corridor,
over the last 14 years there have been no trains, minimal upkeep and little to no interest
in this greenway from CP. In the absence of any involvement or commitment by the
property owner, many citizens of Vancouver have worked hard to activate, beautify, and
nurture the greenway, creating a much cherished public space in our city. No one
disputes CPs legal rights; however, the very short notice given for removal of any and
all encroaching uses has created a huge amount of anxiety, especially given the many
years these uses have been allowed and not objected to by CP.

I would appreciate the chance for our respective staff to discuss additional creative
options to acquire the Arbutus Corridor, and to recommend a few individuals who could
be willing to facilitate a discussion going forward. I am hopeful we can find an innovative
solution that meets both the City of Vancouvers and CPs interests.

Thank you again for writing, and I am fully committed to an ongoing discussion on this
important property in our city.

Sincerely,

Gregor Robertson
Mayor