Report to/Rapport au :
Corporate Services and Economic
Development Committee
Comité des services organisationnels
et du développement économique
and Council/et au Conseil
25 April 2002/le 25 avril 2002
Submitted by/Soumis par : Kent Kirkpatrick, General Manager/Directeur général,
Corporate Services
Department/Services généraux
Contact/Personne ressource : L.J.
Nalezinski, A/Manager, Real Estate Services/
A/Gestionnaire, Services immobiliers
580-2424, ext. 21549,
Les.Nalezinski@city.ottawa.on.ca
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Ref N°:
ACS2002-CRS-RPR-0030 |
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SUBJECT: OBJET : |
SALE OF LAND - 1505 CARLING AVENUE VENTE DE TERRAIN - 1505, AVENUE CARLING |
REPORT RECOMMENDATION
That the Corporate Services and Economic Development Committee recommend Council approve the sale of a 5930.6 m2 parcel of vacant land, municipally identified as 1505 Carling Avenue, to 52 Concord Holdings Inc. for $626,000.00 plus GST, subject to environmental clearance, and subject to any easements that may be required, 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 non construite d’une superficie de 5 930,6 mètres
carrés, portant l’adresse municipale 1505, avenue Carling, à 52 Concord
Holdings Inc., pour la somme de 626 000 $ plus TPS, sous réserve
d’approbation au point de vue de l’environnement et sous réserve également de
toute servitude pouvant être requise, conformément à une convention
d’achat-vente qui a été reçue.
BACKGROUND
The subject property is a 5930.6 m2 parcel of vacant land situated at the northeast corner of the intersection of Carling Avenue and Saigon Court, just west of Kirkwood Avenue.
This property, identified as 1505 Carling Avenue, served for many years as a municipal workshop and equipment yard (Tweedsmuir Yard) for the former City of Ottawa. In the late 1980’s, the former City decided to consolidate several of its works yards and to temporarily relocate them to Heron Road, pending centralization of its Engineering and Works Department facilities. On 7 September 1988, City Council declared 1505 Carling Avenue surplus to municipal needs, and on 3 July1991, it authorized the sale of the property.
At about that time it was discovered that an underground heating oil storage tank situated adjacent to the workshop had been leaking, and had caused contamination to the soils around and under the building support footings. On 17 June 1992, City Council approved the demolition of the workshop structure, and directed that the contaminated soils be removed from the site and replaced with clean fill materials. In 1993, City Council again directed that 1505 Carling be sold in accordance with approved disposal policies.
Since that time, the City has been involved in removing and disposing contaminated soils and groundwater from the site. These remediation measures have successfully met the Ministry of Environment criteria for commercial/industrial use.
1505 Carling is zoned CE[352](1.0)Sch 50. This is an employment center zone that is applied to areas designated in the old Ottawa Official Plan as Primary or Secondary Employment Centres. The subject site is designated as a Secondary Employment Centre. The intent under the Official Plan, and as reflected by the zoning is to have Secondary Employment Centres developed with uses that generate moderate levels of employment. Under the CE[352] zone various commercial uses are permitted, however they must be located in a building occupied by an office use, and the total gross floor area for such uses are not to exceed 10% of the building gross floor area. The intent is that such uses be secondary, to support employment generating uses.
DISCUSSION
Following the placement of a for sale sign on 1505 Carling
Avenue, Real Estate Services received three Offers to Purchase, as follows:
52 Concord Holdings Inc. submitted an offer in the amount of $626,000.00, subject to it being satisfied, within 30 days after acceptance, that there are no hazardous or contaminated soils on the property. It is the intent of 52 Concord Holdings Inc. to develop the property with an office building. The proposed use is in accordance with existing zoning. There is no real estate commission fee payable on the closing of this proposal.
Springcress Properties Inc. submitted an offer in the amount of $610,000.00, subject to it being satisfied, within 30 days after acceptance, that there are no hazardous or contaminated soils on the property, and that it is satisfied with respect to access, set backs, height limitations, and development costs. It is the intent of Springcress Properties Inc. to develop the property with an office building. The proposed use is in accordance with existing zoning. A real estate commission fee in the amount of $12,600.00 is payable on the closing of this proposal, leaving a net to the City in the amount of $597,400.00.
Jerome W. Hiscock, B.A., LL.B. “In Trust” has submitted an offer in the amount of $525,000.00, subject to it verifying, within 30 days after acceptance, that the current zoning, environmental and electrical emission conditions are suitable for its intended use as an office building. The proposed use is in accordance with existing zoning. A real estate commission fee in the amount of $11,375.00 is payable on the closing of this proposal, leaving a net to the City in the amount of $513,625.00.
The offers are in accordance with an appraisal of the subject property.
The offers have been reviewed, and it is hereby recommended that Committee and Council approve the sale to 52 Concord Holdings Inc. in the amount of $626,000.00.
PUBLIC
NOTIFICATION / 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 Housing Branch, to determine if it should be retained by the City to be used in conjunction with a City mandated program. All Departments, including the Housing Branch, confirmed that there was no City program or initiative that required use of the property. Local governments and external agencies were also circulated, but none expressed interest in acquiring the property. In 1999 this property was advertised for sale in two local newspapers. A for sale sign was erected on the property in January 2002. The sign was in place for more than the 10-day minimum period required by approved policy. The Ward Councillor has confirmed support of the sale of the property in accordance with the approved zoning.
FINANCIAL IMPLICATIONS
The sale of this property will result in revenue of $626,000.00 to the City. This revenue will be credited to Profit Centre 119909-407217.
ATTACHMENTS
Attached as Annex "A" is a sketch showing the land to be sold.
DISPOSITION
Corporate Services Department - Legal Services Branch to finalize this transaction.
ANNEX A
