Report to/Rapport au :
Corporate
Services and Economic Development Committee
Comité des services organisationnels et du développement économique
17 November 2009/ le 17 novembre
2009
Submitted by/Soumis par : Kent Kirkpatrick, City Manager/Directeur des
services municipaux
Contact Person/Personne ressource : Gordon MacNair, Director
Real
Estate Partnerships and Development Office/ Directeur Partenariats et Développement en
immobilier
(613)
580-2424 x 21217, Gordon.MacNair@ottawa.ca
SUBJECT:
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OBJET :
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REPORT
RECOMMENDATIONS
That the
Corporate Services and Economic Development Committee approve the following:
1.
Declare the property known
municipally as 2751 Eighth Line Road and shown hatched and identified as Parcel
2 on Document 1 attached, containing approximately 5929.2 m2 (1.465 acres),
subject to final survey, being part of PIN 04310-0147 and legally described as
part of Lot 22, geographic Township of Osgoode, in the City of Ottawa, as
surplus to the City’s needs;
2.
Approve the sale of the
property detailed in Recommendation 1, subject to any easements that may be
required, to Metcalfe Stanley Non-Profit Apartments Corporation, for the amount
of $100,000 plus GST, if applicable, pursuant to an Agreement of Purchase and
Sale that has been received.
RECOMMANDATIONS DU RAPPORT
Que le Comité des services
organisationnels et du développement économique d ‘approuvez ce
qui suit :
1.
Déclarer
la propriété dont l’adresse municipale est 2751, chemin Eighth Line, désignée
comme étant la Parcelle 2 hachurée dans le Document 1 ci-joint, d’une
superficie d’environ 5 929,2 m2 (1,465 acre), sous réserve de levé définitif, faisant partie
du NIP 04310-0147 et légalement décrite comme partie du lot 22, canton
géographique d’Osgoode, dans la Ville d’Ottawa, comme excédentaire pour les
besoins de la Ville;
2.
Approuver
la vente de la propriété décrite à la recommandation 1, sous réserve de toute
servitude requise, à Metcalfe Stanley Non-Profit Apartments Corporation, pour
un montant de 100 000 $ plus TPS, le cas échéant, conformément à une
convention d’achat et de vente reçue précédemment.
BACKGROUND
The subject property, municipally known as 2751 Eighth Line Road, is located in the Village of Metcalfe on the east side of Eighth Line Road, south of Victoria Street and adjacent to the Purchaser’s existing non-profit housing development. The property being recommended for sale contains an area of 5929.2 square metres (1.465 acres), subject to final survey. The former Township of Osgoode acquired the property in 1981.
As a result of a routine review of City properties, a circulation was undertaken in late 2008 to determine if the subject property was required for City purposes. At that time, the ward Councillor indicated that he wished to discuss the possible availability of this property with the owners of the non-profit housing development on the adjacent property. It was also indicated during the circulation process that a 30 metre width should be protected for Eighth Line Road resulting in a portion of the property identified as Parcel 1 on the attached Document 1, being retained for future road purposes. Parcel 1 will be dedicated as road once the reference plan describing the lands to be conveyed and the portion required for the road is completed.
DISCUSSION
Agreement has been reached with Metcalfe Stanley Non-Profit Apartments Corporation to purchase the land identified as Parcel 2 and shown hatched on the sketch attached hereto as Document 1 for $100,000.
It is not the intention of the purchaser to develop the property at this time. Their current development is a non-profit seniors apartment complex and as there are no municipal services in this rural area the purchaser wanted the flexibility to either build on the property at some time in the future or in the interim be able to use the property in conjunction with their existing development at 2761 Eighth Line Road.
The sale is conditional on the City having the option to purchase the property if it is not developed for affordable housing, similar non-profit uses or ancillary uses in connection with their existing development. The City property is zoned V3G – Village Residential Third Density that permits a variety of residential uses. Should the Purchaser wish to sell the Property, or receive an offer from a third party which the Purchaser is prepared to accept, the City upon written notice will have ninety (90 days) to exercise its option with the completion of the purchase within sixty (60) days of the exercise of the option, failing which the Purchaser shall be at liberty to sell the property.
An appraisal confirms the recommended sale price of $100,000 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.
LEGAL IMPLICATIONS
There are no legal/risk management impediments to implementing any of the Recommendations arising from this Report.
ENVIRONMENTAL IMPLICATIONS
The property does not contain significant natural environment features as designated in the Official Plan. No implications to the natural environment have been identified for the proposed sale.
RURAL IMPLICATIONS
The disposal of this property would increase the
potential for expansion of affordable housing in the rural areas and is
supported by the Rural Affairs Committee.
CONSULTATION
In accordance with policies approved by City Council on 14 November 2001, the availability of the property was circulated to all client City Departments, including the Affordable Housing Division, Planning and Growth Management and City Operations to determine if these lands should be retained for a City mandated program. The Infrastructure Services and Community Sustainability Portfolio of the Planning and Growth Management Department was consulted with respect to the Urban Natural Area Environmental Evaluation Study and Greenspace Master Plan. Their comments are indicated under the Environmental Implications section of this report.
The utility companies were also circulated and no interest was expressed in the retention of an easement.
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 other concerns were expressed with respect to the sale of this property.
Housing Branch also indicated at the
time that they wanted to investigate the possibility of using this property for
affordable housing. However, the
Housing Branch subsequently confirmed their support of the sale of this
property to Metcalfe Stanley Non-Profit Apartments Corporation and withdrew
their hold on the property.
The ward Councillor supports staff’s recommendation.
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 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 Housing
Branch supports the sale of land at fair market value to Metcalfe Stanley
Non-Profit Housing Corporation to be used for ancillary purposes to the
existing non-profit housing development. Staff did have discussions with
Metcalfe Stanley Non-Profit Housing Corporation regarding the sale of the
property below fair market value to potentially develop the lands under Action
Ottawa. However, Metcalfe Stanley Non-profit did not wish to enter into any
agreements that would require them to provide additional residential
development in the near future but rather preferred to purchase the land,
subject to conditions for future engineering or amenity needs that may arise.
The subject property is a viable residential property and under the Housing First Policy approved by Council, 25% of the proceeds of the sale are to be credit to the Housing Reserve Fund.
LEGAL/RISK MANAGEMENT IMPLICATIONS:
There are no
legal/risk management impediments to implementing any of the Recommendations
arising from this Report.
FINANCIAL IMPLICATIONS
This transaction represents revenue of $100,000 to the City. This revenue is to be split with $75,000 to be credited to the City’s Sale of Surplus Land Account and $25,000 to be credited to the Housing Reserve Fund as per the housing first policy, subject to any adjustments at closing.
SUPPORTING DOCUMENTATION
Attached as Document 1 is a sketch
showing the subject property.
DISPOSITION
Following Committee’s approval Real Estate Partnerships & Development Office and Legal Services Branch will finalize the transaction and prepare the by-law for Council approval to dedicate Parcel 1 as road.
DOCUMENT 1
