Report
to/Rapport au :
Finance and Economic Development Committee
Comité des finances et du développement économique
4 January 2011 / le 4 janvier 2011
Submitted by/Soumis par : Kent
Kirkpatrick, City Manager/Directeur municipal
Contact Person/Personne
resource: Gordon MacNair, Director
Real Estate Partnerships and
Development Office/
Bureau partenariats et développement en
immobiliers
(613) 580-2424 x 21217,
Gordon.MacNair@ottawa.ca
SUBJECT:
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SALE OF LAND
- 65 Denzil Doyle Court - Kanata South Business Park |
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OBJET :
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VENTE DE TERRAIN – 65, COUR DENZIL DOYLE – PARC D’AFFAIRES DE KANATA
SUD |
REPORT RECOMMENDATIONS
That the Finance and Economic
Development Committee approve the following:
1.
Declare the property known municipally as 65
Denzil Doyle Court and described as
being all of PIN 04744-0137, geographic Township of Goulbourn, in the City of
Ottawa, shown as Parts 32 and 78, Plan 5R-10105, containing an area of
approximately 0.757 ha (1.70 acres) and shown hatched on Document 1
attached, as surplus to the City’s needs;
2.
Approve the sale of the property detailed in
Recommendation 1, subject to an
easement as in Instrument Number NS35475 and subject to an existing lease and
easement with Rogers Wireless over Parts 1 and 2, Plan 4R-16125, to John Allarie and Tammy Allarie, for the
amount of $230,000 plus GST/HST, if applicable, pursuant to an Agreement of
Purchase and Sale that has been received.
RECOMMANDATIONS DU RAPPORT
Que le Comité des finances et du développement
économique approuve :
1.
la décision de déclarer excédentaire aux besoins de la Ville la
propriété dont l'adresse municipale est le 65, cour Denzil-Doyle et
représentant le PIN 04744-0137 dans sa totalité, dans le
canton géographique de Goulbourn, dans la Ville d’Ottawa, présentée comme les
parties 32 et 78 du Plan 5R-10105,
comprenant une superficie d’environ 0,757 ha (1,70 acres) et illustrée en
hachuré dans le document 1 ci-joint;
2.
la vente de la propriété présentée en détail dans la recommandation 1,
sous réserve d’une servitude (Instrument no NS35475) et d’une entente de servitude et de location déjà existante
avec Rogers Wireless concernant les parties 1 et 2 du Plan 4R-16125, à John Allarie et à Tammy Allarie, au
montant de 230 000 $, TPS/TVH en sus, s’il y a lieu, en vertu d’une
Entente d’achat et de vente ayant été reçue.
BACKGROUND
65 Denzil Doyle Court is located in the Kanata South Business Park. The property which is situated on the west side of Denzil Doyle, consists of 0.7567 ha (1.87 acres) and is zoned IP Business Park Industrial Zone (Section 205-206).
In July 2006 the City of Ottawa entered into an agreement to sell the subject 1.87 acres of land in the Kanata South Business Park to Gray, Pynn and Associates Inc. (Q S Investments Inc.) for the amount of $171,000. The sale closed on 28 June 2006.
On closing, the City registered covenants on title requiring construction of a building on the property to commence within 24 months from the date of registration of the Deed from the City, failing which the City could opt to repurchase the property. The covenants also gave the City an option to re-purchase the property, should the purchasers wish to sell the property prior to the commencement of the construction of a building, at a price equal to the purchase price set out in the Deed from the City less 20%.
The purchasers did not live up to the covenants to commence construction by 28 June 2008.
On 14 October 2009, City Council approved a strategy to buy-back business park properties where owners had not complied with covenants which were registered on title to generate development of employment based industries within specified time frames.
As a result of Council’s approval, a letter was sent to Q S Investments Inc. on 6 January 2010 providing them with an extended period of six (6) months from the date of the letter for construction to begin, and advising that should the construction start date not be complied with, the City would consider invoking its right to buy-back the property in accordance with the terms set out in the covenants registered on title.
Q S Investments Inc. confirmed that they were not in a position to commence construction and requested the City to initiate the buy-back. Pursuant to the Council approved buy-back strategy, the acquisition of the subject property was completed on 14 June 2010 under the delegated authority of the Director of Real Estate Partnerships and Development Office. The purchase price was $136,800. This figure is based on the original purchase price paid by Q S Investments Inc., less 20%.
DISCUSSION
The property was listed for sale on the City website and a “For Sale” sign was erected on the property from 16 July 2010 to 16 August 2010. The property was advertised for sale in the City Page of The Ottawa Citizen and Le Droit, at a price of $240,000. Information data sheets were also available upon request.
The only offer received was from John and Tammy Allarie, in the amount of $100,000. After countering their offer, a purchase price of $230,000 was agreed to by the parties and an agreement of purchase and sale conditional on the purchaser’s completing their due diligence within 45 days of the approval of the sale was executed.
As a result of the re-purchase of 65 Denzil Doyle through the Business Park Buy-Back Strategy, additional revenue on the re-sale of this property was realized. The breakdown is as follows:
Sale Price $230,000
Less Buy-Back
Price $136,800
Additional Gross Revenue $ 93,200
As a condition of
the sale, the Purchaser is to commence construction of a building within eighteen
(18) months of the registration of the deed, failing which the City has the
option to repurchase the lands at a price equal to the purchase price paid by
the purchaser, less twenty
percent (20%).
An appraisal confirms the recommended sale price to be consistent with current market values for comparable lands in the area.
The offer is considered fair and reasonable and is recommended for approval.
ENVIRONMENTAL IMPLICATIONS
The Land Use and Natural Systems unit does not object to the proposed sale.
The subject property does not contain nor lie within 120 m of any known feature of the City’s natural heritage system. The nearest natural heritage feature is Urban Natural Area 24 – Hope Cloutier Park, which lies over 450 m north of the site, within an established residential community.
The City’s 2008 aerial photography suggests that a portion of the property is treed. The property lies within the urban boundary and is subject to the Urban Tree Conservation By-law 2009-200. Because the property is less than 1 ha in size, removal of any tree with a diameter at breast height of 50 cm or more would require a permit under the distinctive tree provisions of the By-law. Any butternut tree on or adjacent to the property would be subject to protection under the regulations of the Endangered Species Act 2007. Under Section 4.7.2 of the Official Plan, a Tree Conservation Report would be required if a Site Plan Control Application is proposed. Any distinctive trees or butternuts should be addressed in the Tree Conservation Report, in accordance with the guidelines established in Schedule “A” of By-law 2009-200.
Aerial photography does not suggest that the property contains any other significant features of the natural heritage system or that it performs any other significant ecological functions.
RURAL IMPLICATIONS
N/A
CONSULTATION
In accordance with policies approved by City Council on 14 November 2001, the availability of the property was circulated to all City Departments, including the Housing Services Branch, Public Works and the Planning and Growth Management Departments, as well as the Ward Councillor, to determine if the property was required for a City mandated program. The Land Use and Natural Systems Unit of the Infrastructure Services and Community Sustainability Department was consulted with respect to the Natural Heritage system and the Greenspace Master Plan, and their comments are indicated under the Environmental Implications section of this report. Neither the Affordable Housing division nor any City Department expressed interest in retaining the property.
The utility companies were also circulated and no interest was expressed in the retention of an easement other than those that are currently registered on title.
The following Advisory Committees have been circulated:
Local Architectural Conservation Advisory Committee (LACAC)
Ottawa Forests and Greenspace Advisory Committee (OFGAC)
Environmental Advisory Committee (EAC)
Parks and Recreation Advisory Committee (PRAC)
Roads and Cycling Advisory Committee (RCAC)
Rural Issues Advisory Committee (RIAC)
Pedestrian and Transit Advisory Committee (PTAC)
No concerns were expressed with respect to the sale of the subject property.
COMMENTS BY THE WARD COUNCILLOR(S)
Ward 23 - Councillor Hubley supports the sale of the property.
HOUSING FIRST POLICY
The Official Plan policy directs that the City make land available for affordable housing and give priority for the sale or lease of surplus City-owned property for this purpose.
The Housing First Policy, approved by Council on 13 July 2005, establishes priority consideration to the Housing Services Branch in the identification of potentially surplus City-owned property to be used in achieving the City’s affordable housing program targets. The policy also requires that the Official Plan target of 25% affordable housing, be met on any City-owned property sold for residential development. Where viable residential properties are disposed of without a condition requiring an affordable housing component, 25% of the proceeds from the sale are to be credited to a housing fund to be used for the development of affordable housing elsewhere in the City.
The subject property is not zoned residential and therefore does not meet the affordable housing criteria outlined in the Housing First Policy.
LEGAL/RISK MANAGEMENT IMPLICATIONS
There are no legal/risk management impediments to implementing any of the Recommendations arising from this Report.
CITY STRATEGIC PLAN
N/A
TECHNICAL IMPLICATIONS
N/A
FINANCIAL IMPLICATIONS
The transaction represents revenue of $230,000 to the City and will be credited to the City’s Sale of Surplus Land Account.
SUPPORTING DOCUMENTATION
Attached, as Document ‘1’, is a sketch showing the subject property.
DISPOSITION
Following approval, Realty Services and Legal Services Branches will complete the sale transaction in accordance with the Agreement of Purchase and Sale.
Document ‘1’
