That the Corporate Services and Economic Development Committee recommend that Council approve the sale of a parcel of land, approximately 2.14 ha (5.3 ac) in area, described as being part of Lots 16 and 17, Registered Plan 4M-658 and shown as Parcels B and D on Annex ‘A’ attached, to IG Realty Investments Inc., for the amount of $583,000, plus GST, pursuant to an Agreement of Purchase and Sale that has been received.
RECOMMANDATION DU RAPPORT
Que le Comité des services organisationnels et du développement économique recommande au Conseil d’approuver la vente d’une parcelle de terrain d’une surface d’environ 2,14 ha (5,3 acres), décrite comme faisant partie des lots 16 et 17, plan enregistré 4M-658 et indiquée comme les parcelles B et D à l’Annexe « A » ci-jointe, à IG Realty Investments Inc. pour la somme de 583,000 $, TPS en sus, conformément à la convention d’achat-vente reçue.
The former Township of Goulbourn developed the Iber Road Industrial Business Park in the early 1990s. The Township deemed the properties to be surplus and authorized their sale on 18 July 2000. The lots have been available for sale since the inception of the Business Park.
All of Lots 16 and 17, Plan 4M-658 were sold in 2000 by the Township of Goulbourn to Remington Development Corporation for $652,500. As a condition of the sale the purchaser was to have commenced construction of a building within eighteen (18) months of the date of registration of the deed. As a result of the downturn of the high tech industry, the purchaser no longer had tenants seeking to lease space in the purchaser’s proposed building and decided to put the property on the market for sale. In accordance with the covenants in the transfer, the City was given first right to repurchase the property.
As the market for lots in industrial subdivisions was improving in 2002, it was recommended that it would be to the City’s benefit to repurchase the property. Under authority delegated to the City Manager, approval was granted to purchase the property from the 909979 Alberta Ltd (Remington Development Corporation) for $478,500, plus GST on 4 December 2002.
Prior to putting this property on the market for sale, a circulation was undertaken to all City Departments to determine if there was a City requirement for this property to meet its mandate. It was decided that the portion of the property containing a fairly large maple woodlot be retained in City ownership.
This maple bush played a significant role over the years for one of Stittsville’s pioneer families. The McCurdy family, who came to Canada in 1819, settled on 100 acres of Lot 27, Concession 11, Goulbourn Township. One of the reasons that the McCurdy farm grew in prosperity was partly because of this maple bush. The family continued to play a prominent role in the Stittsville area for over a century, eventually selling the property. The former McCurdy house was torn down with the beginning of the development of the Iber Road Business Park in the 1980s. This maple bush represents a significant part of the history of Stittsville and its preservation is imperative.
The sketch attached marked Annex “A” delineates the portion of the property being retained as Parcels A and C. Parcels B and D are being recommended for sale.
Through the offices of CB Richard Ellis Limited, IG Realty Investments Inc. submitted an offer to purchase the subject lands, described as Parcels B and D on the attached Annex “A”, containing approximately 5.3 acres of land in the Iber Road Business Park. The sale of the property is conditional upon the Purchaser commencing construction of its building within twelve (12) months of the registration of the deed, failing which, the City has the option to repurchase the lands, free of any encumbrances at a price equal to the purchase price paid by the purchaser for the property, less 20%. The Purchaser is proposing to build a multi-tenant warehouse facility with units ranging from 3,000 to 4,500 square feet.
The present zoning of the property is MBP – Business Park Industrial Zone and the intended use is in keeping with the zoning. A rezoning is not contemplated. The sale is subject to any easements that may be required.
In accordance with Subsection 268 (10) 2 of the Municipal Act, provision is provided for the sale of lands to be used for the establishment and carrying on of industries and industrial operations and the subject property is therefore not subject to the usual requirements of subsection 268 (3) requiring a resolution declaring the land to be surplus.
An independent appraisal, confirms that the purchase price is consistent with current market values for similar type properties in the Iber Road Business Park.
The offer is considered fair and reasonable and is recommended for acceptance.
In accordance with policies
approved by City Council on 14 November 2001, the availability of the property
was circulated to all client City Departments, to determine if the parcel
should be retained for a City mandated program. Consultation included the Housing Branch, Public Works and
Services and Planning and Growth Management Services. The
Committees were not circulated in this instance because the circulation
predated the new circulation practices . T he Ottawa Forest Greenspace Advisory Committee has
since been made aware of the pending sale of this property and they do not have
Neither the Housing Branch nor any other City Department expressed interest in
retaining the propertyThe utility companies were also circulated
and no requirements were indicated. Consultation
was also undertaken with Planning and Growth Management Services, Environmental
Management Group, with respect to the Greenspace Master Plan and their comments
are indicated under the Environmental Implications section of this report. The ward Councillor has been made aware of the
intent to dispose of the subject property and supports staff’s recommendation.
The parcels proposed for sale have been delineated to exclude sale of the wooded portions of current City-owned land that comprise the feature known as the Abbott/Iber Woodlot. This woodlot was evaluated as having low ecological significance within the City's Urban Natural Areas Study (2005). As a result of retention of the wooded lands within City ownership, there will not be environmental impacts associated with this proposed property sale. Should development be proposed in the future on the subject parcels adjacent to the urban natural area, City staff will have the opportunity to review the development application to ensure necessary mitigation measures, if required, to protect the features and functions of the Abbott/Iber Woodlot.
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
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 is a viable property
with an industrial zoning
. The property therefore does not
meet the affordable housing criteria outlined in the Housing First Policy.
Attached, as Annex "A" is a sketch showing the surplus property.
Department - Real Estate Services
Division to finalize the Agreement of Purchase and Sale
-Legal Services Branch to finalize this transaction