Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council/et au Conseil

 

3 June 2003/le 3 juin 2003

 

Submitted by/Soumis par : Kent Kirkpatrick, General Manager/Directeur général,

Corporate Services Department/Services généraux

 

Contact/Personne ressource : D. H. McCaslin, Manager, Real Estate Services/

Gestionnaire, Services immobiliers

580-2424, ext. 22595, Douglas.McCaslin@ottawa.ca

 

 

Ref N°: ACS2003-CRS-RPR-0009

 

 

SUBJECT:

 

OBJET :

 

ACQUISITION OF LAND – ABANDONED CP RAIL LINE

 

ACQUISITION DE TERRAINS – LINGE FERROVIAIRE ABANDONNÉE DU CANADIEN PACIFIQUE

 

 

REPORT RECOMMENDATIONS

 

That the Corporate Services and Economic Development Committee recommend Council:

 

1. Approve the acquisition of the abandoned CP rail rights-of-way known as:

 

a) part of the Prescott Subdivision from Mile 8.12 (being the southerly limit of Leitrim Road) to Mile 25.37 (being the northerly limit of Highway 416) as shown on Annex “A”, and;

b) part of the Carleton Place Subdivision, now the Carleton Spur, from Mile 7.94 (being the westerly limit of Moodie Drive) to Mile 8.09, as shown on Annex “B”,

 

from Canadian Pacific Railway Company and St. Lawrence & Ottawa Railway Company for the sum of $1,376,000 plus GST, subject to an Agreement of Purchase and Sale that has been received;

 

2. Approve the assumption of License Agreements between Canadian Pacific Railway Company and St. Lawrence & Ottawa Railway Company and certain fibre optical cable companies resulting in revenue to the City of approximately $37,701 per annum, adjusted periodically per the terms of the agreements.

 

RECOMMANDATIONS DU RAPPORT

 

Que le Comité des services organisationnels et du développement économique recommande au Conseil :

 

1. d’approuver l’acquisition des emprises ferroviaires abandonnées du Canadien Pacifique, c’est-à-dire :

 

a) une partie de la subdivision de Prescott, du mille 8,12 (soit la limite sud du chemin Leitrim) jusqu’au mille 25,37 (soit la limite nord de l’autoroute 416), comme l’illustre l’annexe A,

b) une partie de la subdivision de Carleton Place, maintenant appelée « embranchement de Carleton », du mille 7,94 (soit la limite ouest de la promenade Moodie) jusqu’au mille 8,09, comme l’illustre l’annexe B,

 

de la Compagnie ferroviaire Canadien Pacifique et de la St. Lawrence & Ottawa Railway Company, moyennant la somme de 1 376 000 $ plus TPS, sous réserve d’un contrat de vente qui a été reçu;

 

2. d’approuver la prise en charge des contrats de licence passés entre la Compagnie ferroviaire Canadien Pacifique et la St. Lawrence & Ottawa Railway Company ainsi que certaines entreprises de câbles de fibre optique, ce qui représentera pour la Ville des recettes annuelles d’environ 37 701 $, qui seront rajustées périodiquement selon les modalités des contrats.

 

 

BACKGROUND

 

In 1990 the former Region of Ottawa-Carleton adopted a policy to negotiate with railway companies for the purchase of abandoned rail rights-of-way to protect the corridors for long-term transportation and utility uses. Certain interim uses, consistent with the intended long-term uses were also approved. During 1992 the Region adopted Official Plan Amendment No. 14, which required that the Region purchase these abandoned rail rights-of-way, subject to satisfactory negotiation. Consistent with this policy, several abandoned rail lines have been acquired, such as the Renfrew Subdivision and the Carleton Place Subdivision. This policy has been carried forward in the City of Ottawa’s new Official Plan. The subject lands have been abandoned as active rail lines and the trackage and rail ties have been removed.

 

 

DISCUSSION

 

The first parcel under discussion consists of a 30.6km (19 mile) section of abandoned rail right-of-way extending from Leitrim Road to Highway 416. Its terminus at Leitrim Road coincides with the extent of the rail line that the City has leased and has an option to purchase in connection with the Light Rail project. The site is currently vacant and covered primarily with gravel. The majority of this corridor is fenced.

 

This corridor has also been designated as an important part of the north-south extension of Light Rail in the Official plan, and would provide alternate public access to those communities in the south extremities of Ottawa.

 

As part of an agreement covering a variety of CP Rail rights-of-way, the Prescott Subdivision is subject to existing License Agreements in favor of several fibre optic cable companies. The Rail companies have agreed to assign the portion of the license as it affects the subject corridor to the City. This will generate revenue, a proportionate share to the City, in the amount of $34,701 per annum on the assumption of the license and will be adjusted periodically. The actual terms of the license is proprietary and will be submitted to the City by CP upon approval of the herein report.

 

The second parcel consists of approximately 1.8 acres at Moodie Drive immediately east of the section of the former Carleton Place Subdivision that the City owns and operates as part of the Trans Canada Trail. The former Region did not initially acquire the parcel as NCC had shown interest in the property. It has since relinquished its interest. The acquisition of this parcel would be an integral part of the public access to the corridor and the Trail at this location.

 

The final property limits and conveyance are subject to the completion of legal surveys and the registration of reference plans. The Rail Companies and City are to share in the expense of the surveys and plans. 

 

Independent appraisal reports confirm that the purchase price is consistent with current market values for comparable lands at the two locations.

 

The offer is considered fair and reasonable and is recommended for acceptance.

 

 

ENVIRONMENTAL IMPLICATIONS

 

The Agreement of Purchase and Sale is conditional upon the parties undertaking satisfactory completion of environment and soil investigations. The Agreement of Purchase and Sale includes a proviso for the remediation of any pre-existing conditions to the extent necessary to bring any relevant portion of the lands in compliance with minimal applicable federal or provincial environmental standards

 

 

PUBLIC NOTIFICATION / CONSULTATION

 

Public consultation was in accordance with the environmental assessment process for this project. The Ward Councillor is aware of this acquisition and is in support of staff’s recommendations.

 

 

 

FINANCIAL IMPLICATIONS

 

900040

   

Approved Budget to Date $ 4,427,000

 

Total Paid & Committed   (2,067,192)

 

Balance Available $ 2,359,808

 

THIS REQUEST including GST   (1,472,320)

 

Balance Remaining    $ 887,488

 

Funds are available in the 2003 Capital Budget, Order No. 900040, Abandoned Railroad Rights-of-Way.

 

 

ATTACHMENTS

 

Sketches showing the subject lands are shown attached as Annexes “A” and “B”

 

DISPOSITION

 

Corporate Services Department - Real Estate Services Division to finalize an

  Agreement of Purchase and Sale

 

- Legal Services Branch to finalize this transaction.

ANNEX A

 

ANNEX B