ANNEX A
Report
to / Rapport au :
Corporate
Services and Economic Development Committee
Comité des services organisationnels et du
développement économique
and Council / et au Conseil
8 July 2002/le 8 juillet 2002
Submitted
by/Soumis par : Kent Kirkpatrick, General
Manager / Directeur general,
Corporate Services Department / Services
généraux
Contact/Personne-ressource : Stephen
Finnamore,
Director, Real Property Asset Management/ Directeur, Gestion des actifs et des
biens immobiliers
580-2424 ext. 28859,
Stephen.Finnamore@ottawa.ca
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Ref N°:
ACS2002-CRS-RPR-0066 |
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SUBJECT: |
LANSDOWNE
PARK AND ALBION/RIDEAU ROAD SITE – |
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OBJET : |
PARC
LANSDOWNE ET EMPLACEMENT À L’INTERSECTION DES CHEMINS ALBION ET RIDEAU – ASSOCIATION DE L’EXPOSITION DU CANADA
CENTRAL |
That the
Corporate Services and Economic Development Committee recommend Council direct
staff to negotiate terms and conditions with the Central Canada Exhibition
Association (CCEA), in support of its move to a new location, subject to the
following principles:
1. Providing the use of Lansdowne Park by the CCEA for its final
year of operation at no cost to the CCEA per the same operating agreement as
2001 and including forgiveness of the rent for office space and administration
fees;
2. Assistance in finding equivalent office space at another site
for a term not exceeding August 2004 at no cost to the CCEA;
3. Declaring a vacant parcel of land comprising of 23.82ha being
the northwest corner of Albion and Rideau Roads, shown on Annex "A"
as surplus to City needs, and approving the sale of the land to the CCEA, subject to the land being successfully rezoned
for its use, and the CCEA reserving space and access on its site for the
development of a permanent snow disposal facility, transit lands around the CP
rail line and land for a park and ride;
4. Providing a grant of $275K, being the
market value of the subject land, paid to the CCEA in equal instalments over a
period of 5 years, subject to the CCEA providing the City with a viable
business plan and demonstrating its ability to raise funds.
5. That if the subject City land ceases to
be used as the site of the CCEA’s annual fair, that the CCEA shall pay the City
the market value of the lands, at the time the land, or portion thereof, ceases
to be used for an annual fair;
6. Contributing to the provision of sanitary
and water services to the proposed site to a maximum of $600K and ensuring that
the City land is free from any contamination;
7. Expediting Council consideration of any approvals that may be
required for any new Central Canada Exhibition site and either waiving or providing offsetting grants as
appropriate for all applicable fees, including fees for planning applications,
engineering, development charges and building permits to the end of 2004;
8. Making a commitment to provide transit service to the
Albion/Rideau Road Site for the duration of the Fair each year, to be reviewed
on a bi-annual basis.
RECOMMANDATIONS DU RAPPORT
Que le Comité des services
organisationnels et du développement économique recommande au Conseil d’enjoindre
le personnel de négocier avec l’Association de l’exposition du Canada central
(AECC) les modalités et les conditions relatives à son déménagement à un nouvel
emplacement, sous réserve des principes suivants :
1. permission pour l’AECC
d’utiliser le parc Lansdowne pour sa dernière année d’exploitation, sans aucuns
frais pour cette dernière selon le même contrat d’exploitation que celui de
2001, y compris une remise de loyer pour les locaux à bureaux et de frais
administratifs;
2. aide à trouver des locaux à
bureaux équivalents à un autre emplacement pour une durée ne dépassant pas août
2004 et sans frais pour l’AECC;
3. déclaration d’une parcelle de
terrain vacante, indiquée dans l’Annexe A, comprenant 23,82 hectares et
représentant l’angle nord-ouest des chemins Albion et Rideau, excédentaire aux
besoins de la Ville et approbation de la vente dudit terrain à l’AECC, sous
réserve que ce dernier soit rezoné pour tenir compte de son usage et que l’AECC
réserve un espace ainsi qu’un accès pour l’aménagement d’un dépôt de neige
permanent, des terrains pour le transport en commun autour de la voie du CP et
un terrain pour l’aménagement d’un parc-o-bus;
4. offre d’une subvention de
275 000 $, laquelle correspond à la valeur marchande du terrain en
question, qui sera payée à l’AECC en versements échelonnés égaux sur une
période de cinq ans, à condition que l’AECC fournisse à la Ville un plan
d’affaires viable et qu’elle fasse la preuve de sa capacité à recueillir des
fonds;
5. au cas où le terrain municipal
en question cesserait d’être utilisé pour la foire annuelle de l’AECC, le
paiement par cette dernière de la valeur marchande du terrain à la Ville, au
moment où ce dernier ou une partie de ce dernier cesserait d’être utilisé pour
la foire annuelle;
6. contribution à la prestation
de services sanitaires et d’alimentation en eau sur l’emplacement proposé
jusqu’à concurrence de 600 000 $ et vérification que le terrain municipal
est exempt de toute contamination;
7. accélération de l’examen par le Conseil
de toute approbation qui pourrait être requise pour tout nouvel emplacement
d’exposition et suspension de tout droit applicable, y compris les droits de
demande d’aménagement, d’ingénierie, les redevances d’exploitation et les
permis de construire jusqu’à la fin de 2004, ou attribution d’une subvention
compensatoire relativement à ces derniers s’il y a lieu;
8. engagement à fournir chaque
année un service de transport en commun jusqu’à l’angle des chemins Albion et
Rideau pour la durée de la foire, qui sera revu tous les 6 mois.
The Central Canada Exhibition is a registered not-for-profit organization that has staged its annual fair at Lansdowne Park since 1888. During that time, the Central Canada Exhibition has evolved from a rural, country fair to one which is, today, perhaps better characterized as an amusement park dominated by a modern midway, games of chance and food retailers. In much the same way, Lansdowne Park and the area in which it is situated, has evolved from an isolated rural fairground to include a modern multi-purpose complex surrounded by a thriving residential neighbourhood.
During the past
twenty-five years, there have been attempts to find a new home for the annual
fair while at the same time various municipal administrations have been
attempting to determine a long-term future for Lansdowne Park. The Central
Canada Exhibition Association (CCEA) Board of Directors has committed to
relocate the Central Canada Exhibition for the year 2003. The Economic benefit that the Ex brings to
the community is very important and the life of our City is enlivened by its
presence, therefore, the City would like to see the Ex succeed. It is the City’s wish that the Central Canada
Exhibition find a home where it can thrive.
The CCEA Board recognizes that in order for the Central Canada
Exhibition to prosper it is important that it finds a site that will allow it
to grow and hopefully allow it to reintroduce some of the rural and
agricultural flavour that has been lost over the years at Lansdowne Park.
The most recent
lease with the CCEA for the use of Lansdowne Park expired 31 December
2001. For many years, the Central
Canada Exhibition has had a rental arrangement that required it to pay only its
own expenses while accumulating its operating surpluses in a relocation
fund. This fund was intended to support
the fair’s move to a new site. The fund
was first established in 1978. In 1992,
the CCEA made a one-time contribution of $1.3M to the former City of Ottawa to
help finance the restoration of the Aberdeen Pavilion. In return for the Central Canada
Exhibition’s contribution to saving the Aberdeen Pavilion, the Central Canada
Exhibition Association was not charged rent for a period of ten years ending at
the end of 2001. Since 1992, the CCEA has been replenishing its relocation
fund.
The relocation of the Central Canada Exhibition from Lansdowne Park to a
more rural location has been an ongoing objective for several years. The CCEA consistently indicated that it would not succeed without
the City’s support.
Lansdowne Park’s
regular operations have accommodated the occupancy period of the fair for set
up, take down, and the wear and tear on the site’s infrastructure. Moreover, the fair’s evolution has made it
difficult to consider different options in the creation of a long-term plan for
Lansdowne Park. Work on this important
initiative could not proceed until the future of the Central Canada Exhibition
had been determined. With the CCEA
commitment to move, the long-term plan for Lansdowne Park that the former
Regional Council had directed staff to create, can begin in earnest. A key element of this plan will be
additional green space.
The CCEA is
currently occupying space at Lansdowne Park, preparing to operate the fair in
2002, but without the benefit of a contract. A new contract is required
specifically for 2002 that will set out the new terms and conditions under
which they will operate. The basic operating
parameters will remain unchanged, so as to not unnecessarily hinder the
operations of the fair. Major changes
will be with regard to the schedule for vacating the site.
Following the
transfer of Lansdowne Park to the Regional Municipality of Ottawa-Carleton,
Regional Council approved a recommendation directing that staff “manage Lansdowne Park in a business like
manner". The previous lease for
the Central Canada Exhibition did not cover the direct cost attributed to its
occupancy. This left Lansdowne Park in a deficit situation in relation to
hosting the fair. In 2001, the last
year of the long-term lease, Lansdowne Park absorbed a negative impact of
approximately $180K to its financial performance as a direct result of expenses
incurred in support of the fair’s operations.
This figure does not include foregone income from things like parking,
surcharge or concessions, nor does it include lost business opportunities
during the Fair’s occupancy period or any reflection of the market value for
the facilities and time occupied.
The Department
recognizes that to impose a very strict business deal on the CCEA would only
create a serious financial hardship for the Association, when there is a
sincere desire to see financial stability to support relocation. At the same time, there is an immediate need
to at least reduce the impact on Lansdowne’s financial performance.
It is estimated that over the next several years it will take an investment of several million dollars to create a vibrant new Central Canada Exhibition grounds. To assist in the funding of the new Central Canada Exhibition, Committee and Council will be requested to help in the relocation and set up of a new site. The total cost of allowing the Central Canada Exhibition to stay for 2002, is estimated to be approximately $215K, including the forgiveness of the office rent and administration fees. Committee and Council will be requested to forgive this amount for this year.
Lansdowne management and staff will need as much clear lead time as possible to plan and nurture new business opportunities for the summer season of 2003. It is also essential that the planning process for the long-term future of Lansdowne Park begin sooner rather than later. Further delays will only weaken Lansdowne’s position in cultivating new business opportunities.
The new agreement with the Central Canada Exhibition will require the removal of all its operations from the site by 14 October 2002, with the exception of its administrative offices. This will allow for the start of building demolitions of the McElroy Building and the Sprung structure in support of the green space initiative approved by Regional Council in July 2000. The administrative offices will be required to move by the end of December 2002. In order to assist the CCEA, staff is suggesting that Council consider providing an additional help to the CCEA of up to $50K by offering to assist to facilitate the move of its office space from Lansdowne Park and funding for equivalent office space at an alternate location, at no cost until August 2004.
It is well
understood by staff that the move of the Central Canada Exhibition to a new
site will be extremely challenging and the time frame to have a new site ready
for the 2003 Central Canada Exhibition is very tight. As noted above the Administration of Lansdowne Park will do
everything possible to make this year’s Central Canada Exhibition at Lansdowne
Park a success.
The CCEA has
been working to secure a site that will meet its long-term goal of revitalizing
this enshrined institution. A staff
committee was formed to work with the CCEA to provide assistance and guidance
related to the search for a new site. The CCEA has identified a potential site in south Ottawa, which is owned
by the City of Ottawa and the English Oblate Fathers. The potential site is at
the corner of Albion and Rideau Roads and is shown as Parcels A, B & C on
Annex "A".
The City owned land is shown as Parcel A. It has been successful in negotiating a
purchase of about 55.76ha on the north side of Rideau Road at Albion Road from
the English Oblate Fathers. The city owns the land on the northwest corner of
Albion and Rideau Roads, which the CCEA is also interested in acquiring. The City land consists of an area of 27.3ha and
is undeveloped. The lands were previously used as a sand pit operation, which
has been relatively inactive for the past couple of years. The site is
essentially clear of vegetation due to previous excavations and the lack of
topsoil. The property is zoned Me (T1) - Industrial Extraction Zone under
license by the Ministry of Natural Resources. To the north and east of the
subject property the uses are agricultural, while to the south it is rural
residential. A wooded area borders the west part of the site extending onto the
English Oblate Fathers property.
Although TUPW has been using the property, they have indicated it would not object to its disposal provided that the CCEA reserve access and space within its overall site for a permanent snow disposal facility. Transportation Planning has also requested that consideration be given for future transit requirements (Light Rail) around the CP line which runs through the Oblate Father’s property and land for a future park and ride.
Based on an independent appraisal report the market value of the property is estimated to be $275K. To further assist the CCEA it is suggested that a grant for this amount be provided to offset the cost of the acquisition. The grant would be paid in equal installments over a period of 5 years. To obtain the installments, the CCEA would have to provide the City with a viable business plan and demonstrate its ability to raise funds. In the event that the City land ceased to be used primarily as an annual fair, the CCEA would be obligated to pay the City the market value of the land at the time the land was no longer used for an annual fair.
The proposed site will require an Official Plan amendment as well as rezoning to permit its use as a fair. The CCEA has requested that Council expedite consideration of any approvals that may be required for the new Central Canada Exhibition site. To further assist the CCEA it is suggested that all applicable fees be waived, including fees for planning applications, engineering, development charges and building permits to the end of 2004. The 2004 deadline is intended to provide incentive to the CCEA to proceed with its development in an expeditious manner. In addition, the CCEA is requesting additional support by the City contributing up to $600K for the provision of sanitary and water services to the proposed site.
The City owned land has been used
by the former City of Gloucester and the City of Ottawa as a staging area for
waste segregation prior to disposal of materials at a licensed waste disposal
facility. As such, various materials,
primarily demolished building materials, concrete, wood, asphalt, brush and
trees ended up at the site.
The CCEA has initiated a Phase I/II Environmental Site Assessment and has discovered evidence of some quantities of buried waste as well as some contaminated soils. The City is in the process of expanding on this Environmental Assessment in order to protect the groundwater regime on and in the vicinity of the site. No immediate potential risks to human health were identified in the Phase I/II report completed on the Site. The City is proceeding with the appropriate investigation and management activities so as to alleviate any alarm that the adjacent property owners, or the general public, might have concerning past waste management practices undertaken by the former Region, City of Gloucester and the City of Ottawa. The City is working closely with the appropriate regulatory agencies, consultants and clients, to ensure that any result will be a positive resolution to any environmental situation that is in need of attention. The Ministry of the Environment has been advised of the situation, and is in agreement with our approach. They have requested to be kept informed of our progress.
One of the key
assets of the current Central Canada Exhibition site is the excellent public
transit that Lansdowne Park enjoys. It
would be of great value to the new Central Canada Exhibition to have its site
served by public transit as well. The
Committee may wish to commit to the provision of public transit service to the
new site for the duration of the fair each year as the proposed site is in a
rural transit area. The service would be reviewed on a bi-annual basis.
There has been considerable discussion between Lansdowne Park Administration and management of the CCEA. The CCEA has viewed a Draft copy of this report. Public meetings with the South Gloucester residents have been held. Development Services Department is aware of the rezoning requirement for the Albion and Rideau Road Site and provides its support. The Councillors for both Wards were consulted and provided with an advance copy of this report.
Lansdowne Park
Administration estimates that the Central Canada Exhibition creates a negative
financial impact on its operations of at least $180K a year. This does not include forgone revenue that
will be generated by other events that will take up the space and time vacated
by the Central Canada Exhibition. These
will also include rent, parking revenue, concessions etc.
The recommendations outlined in this report have the following financial implications:
Recommendation # 1 - Forgiveness of the rent for office space and administration fees valued at $215K to be funded from the City Wide Capital Reserve Fund;
Recommendation # 2 - assistance in finding equivalent office space at no cost represents a grant valued at $50K to be funded from the 2003 Operating Budget;
Recommendation # 3 - declaring a vacant parcel of land as surplus has no funding implications;
Recommendation # 4 - provide a grant valued at $275K over 5 years to be funded from the proceeds of the original sale, to be placed in a reserve for that purpose upon receipt of the proceeds;
Recommendation # 5 - that if the site is no longer used for the annual fair, the market value shall be re-paid to the City, has no current funding implications;
Recommendation # 6 – provision of sanitary and water services as a grant valued at $600K as pre-commitment against the 2003 capital budget;
Recommendation # 7 – grant estimated at $300K for development charges and lost revenues for the other fees as pre-commitments of the 2003 and 2004 operating budgets;
Recommendation # 8 – provision of transit service representing lost revenues not estimated at this time.
Corporate Services Department:
- Venture Properties Division to finalize a year event contract with the CCEA.
- Real Estate Services Division to undertake the negotiations for the sale of the Albion and Rideau Road Site.
- Financial Services Division to draft the appropriate agreements with the CCEA for the provision of the funding.
ANNEX A