SUBJECT:

Property Settlement – TRim Road Project (north Service Road to Innes Road), Claridge Homes (Trim Road) Inc.

OBJET :

répartition du droit de propriété – projet du chemin trim (du chemin north service au chemin innes), claridge homes (trim ROAD) Inc.

REPORT RECOMMENDATION

That the Finance and Economic Development Committee recommend Council approve the property settlement for the acquisition of a strip of vacant lands containing 3.123 ha, shown as Parcel 1 and Parcel 3 on Document 1, as required for the Trim Road (North Service Road to Innes Road) Project for the amount of $1,614,240 from Claridge Homes (Trim Road) Inc.

Recommandation du rapport

Que le Comité des finances et du développement économique recommande au Conseil d’approuver le règlement foncier en vue de l’acquisition d’une bande de terrains vacants d’une surface de 3,123 ha, indiqués comme les parcelles 1 et 3 dans le document 1, comme l’exige pour le chemin Trim (chemin North Service jusqu’au chemin Innes) du projet, de Claridge Homes (Trim Road) Inc. pour la somme de 1 614 240 $.

Background

On 24 December 2008, a Subdivision Agreement with Claridge Homes (Trim Road) Inc. was approved by delegated authority for the development of the Royal Ridge Subdivision located at the southeast quadrant of the Trim Road and Old Montreal Road intersection. As part of the terms and conditions of the Subdivision Agreement, Claridge Homes was required to convey half of the 46-metre Official Plan protected Trim Road right of way to the City at no cost, and the City agreed to pay market value for the oversized portions of the right of way severed from the development parcel as an unequal widening to form part of the extraordinary width required for the new Trim Road design. The extra width of the right of way is required for the Trim Road - North Service Road to Innes Road Project in order to reduce the steep slope immediately south of the Trim Road and Old Montreal Road intersection by cutting into the hillside and extending the slope south to Watters Road.

In May 2011, the City and Claridge Homes agreed to register an amended Subdivision Agreement whereby the City would proceed with the timely registration of the Plan of Subdivision and Claridge Homes agreed to convey the road requirement to the City immediately and to negotiate a settlement on the property value at a later date with an upset limit of $1,775,620 set for the acquisition. Funds for the settlement are identified in the 2011 Capital Budget in which City Council approved funding for the widening and urbanization of Trim Road between the North Service Road and Innes Road including funds for property acquisition.

DISCUSSION

The subject property is part of a larger parcel containing 11.4 ha of land zoned Development Reserve located at 960 Old Montreal Road in the former township of Cumberland. The property has been developed as the Royal Ridge Subdivision by Claridge Homes (Trim Road) Inc., which includes provisions for the conveyance of land required for the Trim Road - North Service Road and Innes Road Project. In order to complete the Trim Road project, it is necessary to settle the acquisition of two (2) parcels of vacant property containing 3.123 ha from Claridge Homes (Trim Road) Inc. shown as Parcel 1 and Parcel 3 on Document 1.

As per the terms of the amended Subdivision Agreement, the City and Claridge Homes agreed to negotiate a settlement of the market value of the oversized portions of the road requirement conveyed to the City. Negotiations for the settlement were supported by three independent appraisals, one commissioned by the City and two by the owner respectively. Future urban development was considered the highest and best use and the appraisals provided an estimate of market value for the subject property as of the day before draft approval of the Subdivision Agreement. The appraisers relied on the Direct Comparison Approach wherein the subject property was compared with similar type properties that had recently been sold, or had been offered for sale at the time of appraisal. Negotiations resulted in a settlement agreement with the owner in the total amount of $1,614,240 plus applicable taxes related to the transaction.

RURAL IMPLICATIONS

The lands conveyed are within the Urban Boundary.

CONSULTATION

The Trim Road (North Service Road to Innes Road) Project was subject to a Municipal Class Environmental Assessment which included open house public meetings.

Comments by the Ward Councillor(s)

The property is located in Ward 1, Orleans. Councillor Monette has received a copy of the report and is aware of the staff recommendation.

LEGAL IMPLICATIONS

There are no legal impediments to implementing the recommendation in this report.

RISK MANAGEMENT IMPLICATIONS

There are no risk management implications resulting from the recommendation of this report.

FINANCIAL IMPLICATIONS

Funds are available within 905215 Trim Road (174 to Innes).

ACCESSIBILITY IMPACTS

There are no accessibility impacts associated with the project.

Environmental Implications

The Subdivision was subject to Phase 1 and Phase 2 Environmental Site Assessments that included soil sampling and testing. No environmental concerns were found in the area of the road requirement.

Technology Implications

There are no technological implications associated with the project.

TERm of council priorities

The recommendation of this report supports City Council’s priority: Transportation and Mobility (TM) - meeting the current and future transportation and mobility needs of residents, visitors, and enterprises by improving transit and by emphasizing choice and accessibility of multiple types of transportation; and its objective TM3, provision of infrastructure to improve mobility choices by supporting initiatives related to routes; specifically, Strategic Initiative 14: Asset Renewal of Roads – a program to sustain renewal of roads within the City’s transportation network to maintain operational performance.

SUPPORTING DOCUMENTATION

Document 1: Property sketch depicting the Subject Lands

DISPOSITION

Following Council’s approval, the Real Estate Partnerships and Development Office and Legal Services Branch will finalize the transactions.

DOCUMENT “1”