|
7. &nbs=
p; PROJECT
IMPLEMENTATION - 25 Esquimault avenue Qualicum
- Graham park community Building MISE
EN œuvre DU PROJET – 25, avenue esquimault - centre communauta=
ire
dE QUALICUM-parc GRAHAM |
COMMITTEE RECOMMENDATIONS AS AMENDED
That Council:
1. &nbs=
p;
Approve using a Ci=
ty
initiated and managed project implementation process, as outlined in this
report, rather than a request for proposal process, for undertaking the fol=
lowing
work:
a) &nbs=
p;
The construction o=
f a
new community building to serve the Qualicum-Graham Park area on the proper=
ty
municipally known as 48 Nanai=
mo
Drive being Nanaimo Park and =
shown
as Parcel “B” in Document 1;
b) &nbs=
p;
The demolition of =
the
existing building at 25 Esquimault Avenue shown as Parcel “A”=
;
in Document 1;
c) &nbs=
p;
The remediation of=
the
environmental contamination at 25 Esquimault Avenue shown as Parcel R=
20;A”
in Document 1; and
d) &nbs=
p;
The redevelopment =
of the
site at 25 Esquimault Avenue shown as Parcel “A” in Docu=
ment
1.
2. =
Approve funding in the amount of $1M, =
and
authorize debt financing in the same amount, to allow for the construct=
ion
of the new community building in Nanaimo Park prior to the proposed sale of
approximately 3.0 acres of the 25 Esquimault Avenue property as outlined in
this report.
3. =
Upon
completion of the remediation of the environmental contamination at the 25
Esquimault Avenue property, approve the transfer of approximately 3.0 acres=
of
this property to the Ottawa Community Lands Development Corporation to init=
iate
the redevelopment and sale of this property as described in this report.
RecommandationS MODIF&eac=
ute;ES
du ComitÉ
Que le Conseil :
2. &=
nbsp; approuve
l’octroi de crédits d’un montant de 1 M$ et d=
217;autoriser
le financement par emprunt pour la même somme en vue de permettre
l’aménagement d’un nouveau bâtiment communautaire =
dans
le parc Nanaimo avant que n’ait lieu la vente proposée
d’environ 3,0 acres de la propriété située au 25,
avenue Esquimault, comme l’explique le présent rapport.
3. &=
nbsp; approuve,
après la décontamination environnementale de la
propriété située au 25, avenue Esquimault, le transfert
d’environ 3,0 acres de cette propriété à la Société d'aménagement des terrains communautair=
es
d’Ottawa afin de procéder au
réaménagement et à la vente de cette
propriété comme l’explique le présent rapport.
=
<= o:p>
DOCUMENTATION
1. =
City Manager’s report dated 10 August 2010 (ACS2010-CMR-REP-003=
6).
Report
to/Rapport au:
Corporate Services and Economic Development Committee
Comité des services organisationnels et du développeme=
nt
économique
and Council / et au Conseil
10 August 2010 / le 10 août 2010
Submitted by/Soumis par: Kent Kirkpatri=
ck,
City Manager / Directeur municipal
=
Co=
ntact
Person/Personne ressource : Gordon MacNair, Director, Real Estate Partnerships and
Development Office/Directeur, Partenariats et Développement en
immobilier
=
(6=
13)
580-2424 x 21217, Gordon.MacNair@Ottawa.ca
|
<=
span
lang=3DEN-US style=3D'mso-ansi-language:EN-US'>Ref N°: ACS2010-CMR-REP-0036 |
SUBJECT:
|
PROJECT
IMPLEMENTATION - Qualicum - |
|
|
|
OBJET :
|
MISE EN œuvre DU PROJET – 25, avenue esquimault - centre communautaire dE QUALICUM-parc GRAHAM |
REPORT RECOMMENDATIONS
That the Corporate Services and Economic Develop=
ment
Committee recommend that Council:
1.<=
span
style=3D'mso-tab-count:1'> =
Approve
using a City initiated and managed project implementation process, as outli=
ned
in this report, rather than a request for proposal process, for undertaking=
the
following work:
a) The construction of a new
community building to serve the Qualicum-Graham Park area on the property
municipally known as 48 Nanai=
mo
Drive being Nanaimo Park and =
shown
as Parcel “A” in Document 1;
b) The demolition of the exis=
ting
building at 25 Esquimault Avenue shown as Parcel “B” in Documen=
t 1;
c) The remediation of the env=
ironmental
contamination at
d) The redevelopment of the s=
ite at
2. &nbs=
p; Approve
funding in the amount of $1M to allow for the construction of the new commu=
nity
building in Nanaimo Park prior to the proposed sale of approximately 3.0 ac=
res
of the 25 Esquimault Avenue property as outlined in this report.
3. =
Upon
completion of the remediation of the environmental contamination at the 25
Esquimault Avenue property, approve the transfer of approximately 3.0 acres=
of
this property to the Ottawa Community Lands Development Corporation to init=
iate
the redevelopment and sale of this property as described in this report.
RECOMMANDATIONS DU RAPPORT
<=
b>Que le Comi=
té
des services organisationnels et du développement économique
recommande au Conseil :
a) l’aménagement
d’un nouveau bâtiment communautaire qui servirait le secteur
Qualicum/parc Graham sur la propriété située au 48,
promenade Nanaimo, qui constitue le parc Nanaimo et qui est
présenté comme la parcelle « A » dans le
document 1;
2. &=
nbsp; d’approuver
l’octroi de crédits d’un montant de 1 M$ en vue de =
permettre
l’aménagement d’un nouveau bâtiment communautaire =
dans
le parc Nanaimo avant que n’ait lieu la vente proposée
d’environ 3,0 acres de la propriété située au 25,
avenue Esquimault, comme l’explique le présent rapport.
3. &=
nbsp; d’approuver,
après la décontamination environnementale de la
propriété située au 25, avenue Esquimault, le transfert
d’environ 3,0 acres de cette propriété à la Société d'aménagement des terrains communautair=
es
d’Ottawa afin de procéder au
réaménagement et à la vente de cette propriét&e=
acute;
comme l’explique le présent rapport.
BACKGROUND
<= span lang=3DEN-GB>The subject property, municipally known as 25 Esquimault Avenu= e, is a 1.41 hectare (3.48 a) site with a one storey vacant school building that = has an addition at the north end of the building currently being used as the Qualicum-Graham Park area Community Centre. The property is shown as Parcel “A” in Document 1. The property to the north, shown as Parcel “B” in Document 1, is Nanaimo Park, a City owned park known municipally as 48 Nanaimo Drive.
The City purchased the p=
roperty
at 25 Esquimault Avenue, as per a City Council directive approved on 23 Apr=
il
2008 (Report Number ACS 2008-BTS-RPM-0016) following a long history=
of
multiple issues involving a long-term lease and the contamination of the so=
il
underneath the existing building from a leaking underground oil storage tan=
k.
At that time, Council approved the report recommendations to acquire the
property in order to avoid potential litigation; to relocate the community
building into Nanaimo Park in order to demolish the existing building at 25
Esquimault and remediate the contaminated land; and then to sell approximat=
ely
3.0 acres of the 25 Esquimault property for redevelopment purposes in order=
to
ultimately reduce the total net project cost to $2,356,000 as indicated in
Table 1 below.
|
Table 1 |
Acquisition & Redevelopment |
|
Acquisition Cost = (3.5 acres) |
$
2,500,000.00 &nbs= p; |
|
Demolition Cost (bldg is 30,900 sq.ft.) |
$ 650,000.00 &nbs= p; |
|
Remediation Costs
|
$ 600,000.00 &nbs= p; |
|
Temporary relocation of community building facilities |
$ |
|
<=
span
lang=3DEN-GB>*Construction of New <= span lang=3DEN-GB> (3,000 sq.ft.)= |
$
1,000,000.00
|
|
Restore property tax base<= /p> |
($ |
|
**Potential Resale Value (3.0 acr= es) |
($2,000,000.00) |
|
Outstanding payment of rent |
$ |
|
TOTAL NET COST |
$2,3= 56,000.00 |
* This assumes a basic design with details to be
finalized through the public consultation process as part of the redevelopm=
ent
proposal
**This assumes that 0.50 acres of the original 3.5
acres would be retained to offset the requirement for a new Community Build=
ing
while the balance of the land would be redeveloped for low / medium density
housing.
Funds in the total =
amount
of $3,805,000 for the acquisition of the 25 Esquimault property ($2.5M), de=
molition
of the building ($650K), remediation of the environmental contamination ($6=
00K),
and temporary relocation of the community facilities ($55K), as indicated in
Table 1 above, were then made available from within the existing capital bu=
dget
for the Realty Services environmental remediation program and a new capital
project account was established accordingly.
Staff were also
directed by Council to prepare a redevelopment proposal for t=
he
lands, which is to include a
A Qualicum-= Graham Park Community Building Working Committee, comprised of local residents, was established in 2008 to provide input for the proposed use, design and basic criteria of the new community building. This Committee held four meetings between September 2008 and January 2009, and, facilitated by Parks, Recreat= ion and Culture staff, prepared the room data sheets and blocking plan for the building, shown in Document 2 of this report, to accommodate the various programs to be offered in the new facility.
The Commi=
ttee also
studied various locations for the new building and determined that, if prac=
tical,
the preferred location was an area close to the southerly boundary of Nanai=
mo
Park with vehicular access and servicing being accommodated via an internal
roadway through the proposed new infill development on the 3.0 acres to the
south at 25 Esquimault Avenue. The Committee also indicated strong support =
for
low profile residential development on the remainder of the 25 Esquimault
property and, in particular, for “adult style bungalow”
development.
A presentation of the Committee’s
findings was made to the Qualicum - Graham Park Community Association Annual
General Meeting held on 22 October 2009.&n=
bsp;
The more than 100 persons attending the meeting indicated unanimous
support for the Committee’s recommendations.
In Dec=
ember
2009, Council approved a staff report (Report Number ACS2009-CMR-REP-0054) =
recommending
the initiation of a Request for Proposal (RFP) process. That report include=
d provisions
for redevelopment of 25 Esquimault Avenue that would be respectful of the
development concepts approved by the community and subject to a development
agreement that would include conditions for the proponent constructing a new community centre on the Nanaimo Park
property first, then demolishing the existing building and remediating the
contamination before redeveloping the remainder of the 25 Esquimault proper=
ty. The proposed RFP process would allow
community activities to remain in the existing building until the new facil=
ity
was constructed and for the existing funding provision to be used without
having to provide additional up-front funding by the City for the community
building in the amount of $1.0M.
Staff has since been preparing the RFP
package which was to be released in September 2010 for a proponent to const=
ruct
a new community centre, demolish the building, remediate the site and
subsequently construct a new development on the lands.
However, in preparing the RFP package s=
taff
has been required to take into account, among a number of factors, the Onta=
rio Ministry
of Environment’s (MOE) new Regulation 511/09, which amends the existi=
ng Record
of Site Condition (RSC) Regulation 153/04, that comes into effect on 1 July
2011. This new regulation cou=
ld
seriously affect the remediation plan for 25 Esquimault Avenue if the City =
does
not advise the Ministry by 31 December 2010 of its intention to undertake t=
he
remediation of the property based on the 2004 Regulation and associated
environmental criteria, and to have the remedial work and associated follow=
-up
monitoring completed, with the record of Site Condition submitted to the MO=
E by
31 December 2012, as provided for in the “grandfathering”
provisions of the new Regulation. If
the City cannot meet the 31 December 2012 deadline, and is required to meet=
the
criteria of the new regulation, there will be significantly increased costs=
to
undertake the remedial work as well as substantial additional time required=
to submit
and have a RSC approved by the MOE.
The purpose of this report i=
s to
outline and recommend a project delivery approach that will ensure the 25
Esquimault site is remediated as quickly as is now possible under the 2004 =
MOE
Regulation, and that the overall project is completed within the financial =
objective
set by Council in April 2008 that the total net cost for the project be red=
uced
to $2.35M once the 3.0 acres of land at 25 Esquimault is sold.
DISCUSSION
Consequently, staff has revaluated the =
RFP
process approach previously recommended to implement this project.
Staff has now estimated that:
- Securing a private sector partner for this project using the RFP
process will take approximately 3 months;
- The design, tendering and construction of a new 3,200 sq. ft.
community building, ready for occupancy, will take a total time frame =
of
approximately 9-12 months;
- Preparing the specifications, tendering, and removing the design=
ated
substances (e.g. asbestos) in the existing building and then mechanica=
lly
demolishing the building will require a time frame of approximately 4-6
months; and
- Preparing the specifications, tendering and remediating the
environmental contamination will take 2-4 months. The subsequent
monitoring cannot start until 3 months after the remediation work is
complete and the monitoring must last for a period of at least 6 months
before an RCS can be submitted to the MOE (i.e. a total time frame of
approximately 1 year to complete the remediation and obtain an RSC bef=
ore
redevelopment at 25 Esquimault can occur.
If the City uses an RFP process based o=
n the
successful proponent designing and building the Community Building before t=
he
existing building is demolished and the environmental contamination remedia=
ted,
it is estimated that the overall time frame to submit an RSC will be in the
range of 27 to 34 months from the start of the RFP process. This means that it is highly unlike=
ly
that an RSC can be submitted before the 31 December 2012 deadline. This is
likely to cause uncertainty for the proponents with respect to both
redevelopment timing and costs and, therefore, potential significantly lower
sales revenue to the City.
In addition, staff has determined that
constructing a new Community Building in the
community’s preferred location, with vehicular access and servicing a=
ccommodated
via an internal roadway through the proposed new infill development on the =
3.0
acres to the south, before the overall 25 Esquimault site is fully remediat=
ed
and serviced, will most likely create interim access problems for the new
facility and increased construction coordination problems and cost. =
As a result, it is now proposed that th=
e City
not proceed with an RFP process, but instead proceed immediately to have st=
aff
initiate and manage the project components using the City’s normal
procurement processes for the building demolition, environmental remediation
and new building construction work. It is also proposed that the commun=
ity
activities in the existing building be relocated to a temporary location un=
til
the new Community Building is constructed and that this new building be
constructed concurrently with the demolition and environmental remediation
components of the project to minimize the impact of temporary facilities on=
the
community activities. S=
taff
is currently investigating both public and private sector opportunities for
providing temporary accommodation for community activities while the new
building is being constructed. Staff will ensure that the community
representatives involved in the current program activities are consulted be=
fore
leasing a temporary facility.
In order for the City to proceed with t=
he
construction of the new community building that meets the local community
requirements as set out in Document 2, within a budgetary framework of $1M,=
as
established by Council in April 2008, staff has reviewed recent community
projects. In this regard, it was determined that a facility similar to the
recently built 3,000 sq. ft. McKellar Park=
facility (as shown in Document 3)&n=
bsp;
with some small interior and exterior modifications, would likely me=
et
the community’s requirements and fit well architecturally within the
Nanaimo park neighbourhood. Utilizing the same architects and basic building
design and specifications that were used for the
As a test fit, the building footprint f=
or the
It is also proposed that staff initiate=
the
planning approvals process for the redevelopment of the 25 Esquimault site,
including a rezoning of the property to provide for “adult style bung=
alow
development” in November 2010 to ensure that the site can be sold as =
soon
as the RSC for the property is obtained in the summer/fall of 2012. Once th=
e 25
Esquimault site has been fully remediated, and the environmental monitoring
completed, it is proposed that the sales process for the 3.0 acre parcel be
initiated. To ensure that the development will be carried out strictly in
accordance with the City’s development requirements, it is proposed t=
hat
the 3.0 acre parcel be transferred to the Ottawa Community Lands Development
Corporation once the environmental remediation work is complete, subject to=
the
specific provisions of the transfer being approved by Council, and based on=
a
further report.
Based on the above approach, staff esti=
mate
that the project components can be undertaken based on a milestone schedule=
as
follows:
- Council Approval - 25 August 2010
- Relocate Community Activities - by 1 November 2010
- Design of New
- Tender for New Building Construction - by 1 February 2011
- Designated Substances Removal - by 1 February 2011
- Obtain Approvals and Commence New Building Construction - by 1 A=
pril
2011
- Demolition of Existing Building - by 1 May 2011
- Environmental Remediation of Site - by 1 August 2011
- Complete Community Building Construction and Occupy - by 1 Septe=
mber
2011
- Environmental Monitoring - 1 November 2011 to 1 May 2012
- Submit Record of Site Condition for Approval - June 2012
- Redevelopment Approvals Process - November 2010 to April 2012
- Sales Process for 3-acre Parcel - 1 May 2012 to 1 September 2012=
=
In
order to initiate the construction of the new
ENVIRONMENTAL IMPLICATIONS
&n= bsp;
The pr= ocess outlined in this report for the construction of the new community centre, demolition of existing building followed by the remediation and redevelopme= nt of the property at 25 Esquimault Avenue will facilitate the remediation of = the site and filing of a Record of Site Condition in accordance with Ontario Ministry of the Environment Regulation 153/04.
RURAL IMPLICATIONS
There are no rural implications res= ulting from the sale of the subject property.
CONSULTATION
Extensive consultation with the community =
was
undertaken in 2009 with Parks, Recreation and Cul=
ture staff
facilitating the working committee meetings that were held to develop the
criteria for the new community building. A presentation was made to the Qualicum - =
Graham
Park Community Association Annual General Meeting held on 22 October 2009 a=
nd
the more than 100 persons attending the meeting indicated unanimous support=
for
the Committee’s recommendations.
A further public meeting, chaired by
Councillor Chiarelli, was held on 5 August 2010 to provide information on t=
he
implementation process being recommended in this report. Approximately 100 persons attended =
this
meeting and indicated unanimous support for the proposed process.
Individuals did express concerns about the traffic and parking impact of a new community building on Nanaimo Drive and also about ensuring the temporary facility for accommodating community activities would be sufficiently suitable so as to not require existing programs to be cancelled. Sta= ff indicated that both these concerns would be addressed if the project implementation process is approved by Council on 25 August 2010.
HOUSING FIRST POLICY
The Of= ficial 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 Ho= using First Policy, approved by Council on 13 July 2005, establishes priority consideration to the Affordable Housing Division 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 t= hat 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 condi= tion 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.
While = the proposed redevelopment of the 25 Esquimault property will be for “adult style bungalow” residential development, the sale of the property is being undertaken to reduce the City’s total net cost for this environmental remediation project to approximately $2.35M and, therefore, there will be no net revenue available from the sale of the lands to contribute to the housi= ng fund.
COMMENTS BY THE WARD COUNCILLOR
Counci=
llor
Chiarelli is aware of the recommendations of this report and, in this respe=
ct, held
a public meeting on 5 August 2010 to inform, and receive feedback from, loc=
al
residents on the proposed changes in the implementation of the project. At =
the
end of the meeting, the Councillor indicated his support for the report
recommendations and requested a show of hands which resulted in the approximately=
100
persons who attended indicating unanimous support for the proposed changes.=
CITY
STRATEGIC PLAN
The Ci= ty originally purchased this property to facilitate, and reduce the long term costs associated with remediating of the fuel oil contamination on the 25 Esquima= ult property. As a result of implementing the recommendations of this report, the local community will a= lso continue to benefit from the use of a community building that meets its activity needs and be assured of a residential development compatible with = the neighbourhood.
LEGAL/RISK
MANAGEMENT IMPLICATIONS
There are no legal/risk management impedimen=
ts
to implementing any of the Recommendations arising from this report.
FINANCIAL IMPLICATIONS
As outlined in this report and = set out in Document 2, funds in the amount of $3,805,000 were approved by Counc= il on 23 April 2008 for the acquisition of the 25 Esquimault property, the demolition of the existing building, remediation of the environmental contamination, and temporary relocation of the community facilities. Fundin= g in the amount of $1.28M remains in the capital project account to undertake the demolition of the existing building and the environmental remediation work = at 25 Esquimault.
The recommendations of this rep= ort, to proceed with the construction of a new community building on Nanaimo Par= k, at a net cost of $1M, concurrently with the demolition of the existing buil= ding and remediation of the on-site contamination before the 3.0 acres of land designated for redevelopment at 25 Esquimault is sold, will require the establishment of a new Capital project account for this purpose and for the= $1M cost of this project to be debt financed.
SUPPORTING DOCUMEN=
TATION
&n= bsp;
Document 1: Property SketchDocument 2: Proposed Qualicum - Graham Pa=
rk
Community Building - BlockingPlan and Room Data
Document <=
/span>3: Example of Similar
Building - McKellar Park Community Centre
Document 4: Proposed Community Building Location
DISPOSITION
Subject to Committee and Council approval, staff=
will
implement the recommendations as outlined in the report.
DOCUMENT 1
PROPERTY
SKETCH
![](3D"07-ACS2010-CMR-REP-0036-25EsquimaultAvenue_files/image002.jpg")
DOCUMENT 2
PROPOSED QUALICUM -
BLOCKING
PLAN AND ROOM DATA
![](3D"07-ACS2010-CMR-REP-0036-25EsquimaultAvenue_files/image004.jpg")
![](3D"07-ACS2010-CMR-REP-0036-25EsquimaultAvenue_files/image006.gif")
DOCUMENT 3
EXAMPLE OF SIMILAR BUILDING –
MCKELLAR PARK COMMUNITY
CENTRE
<=
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style=3D'text-decoration:none'>
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DOCUMENT 4
PROPOSED COMMUNITY BUILDING LOCATION
![](3D"07-ACS2010-CMR-REP-0036-25EsquimaultAvenue_files/image010.jpg")