Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

1 May 2007/ le 1 mai 2007

Submitted by/Soumis par : Stephen Finnamore, Executive Director, Business Transformation Services / Directeur exécutif, Services de transformation des activités

Contact Person/Personne ressource : Gordon MacNair, Manager, Real Estate Services

Real Property Asset Management/Gestion des actifs des biens immobiliers

(613) 580-2424 x 21217, Gordon.MacNair@ottawa.ca

Gloucester-Southgate (10)

Ref N°: ACS2007-BTS-RPM-0002

SUBJECT:	Sale of land - 1573 Rosebella Avenue

OBJET :	vente de terrain - 1573 avenue rosebella

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee recommend Council:

1. Declare a vacant parcel of land shown hatched on Annex “A” attached, containing approximately 459 m² (4,940.79 square feet), municipally known as 1573 Rosebella Avenue, described as Part Mavis Street (to be closed by by-law), Registered Plan 326, in the City of Ottawa, as surplus to the City’s needs;

2. Approve the sale of the land detailed in Recommendation 1, subject to any easements that may be required, to Giovanni Farinaccio, for the amount of $130,001 plus GST, 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 recommande au Conseil :

1. De déclarer excédentaire, par rapport aux besoins de la Ville, un terrain vacant illustré par la partie hachurée de l’annexe “A”, d’une superficie approximative de 459 m² (4,940.79 pieds carrés), portant l’adresse municipale 1573 avenue Rosebella, désigné comme une partie de la rue Mavis (devant être fermée par voie de règlement municipal), plan enregistré 326, dans la ville d’Ottawa;

2. D’approuver la vente du terrain décrit à la recommandation 1, sous réserve des servitudes requises, à Giovanni Farinaccio, pour la somme de 130 001 $ (TPS non comprise), conformément à une convention d’achat et de vente qui a été reçue.

BACKGROUND

As part of the ongoing review of City owned land, Real Estate Services identified this untravelled road allowance as being potentially surplus to the City’s requirements. The subject property is a vacant parcel of land legally described as Part of Mavis Street, formerly Third Street, (to be closed by by-law) on Registered Plan 326. The property is rectangular in shape and contains an area of approximately 459 m² (4,940.79 square feet) and is located on the north side of Rosebella Avenue, west side of Bank Street. The property is the northern end of Mavis Street dedicated as road allowance on Plan 326, registered in 1911. This untravelled road allowance was designated on the Plan of Subdivision as a possible future road extension for development to the north. The road allowance was never used and is not required. A street closing application submitted by Real Estate Services was approved by City Council on 27 September 2006.

DISCUSSION

A circulation was sent to all City Departments and external agencies to determine if there was any requirement for the property. No City Department or external agency expressed any interest in this property.

The property was listed for sale on the City website and a “For Sale” sign was erected on the property for a period of 15 days, from 2 February 2007 to 16 February 2007. The property was advertised for sale in the City Page of The Citizen and Le Droit on 2 February 2007 and also in the Community Newspaper. As a result of multiple offers being received, each party was given until 4:00 pm on 22 February 2007 to submit their “highest and cleanest” offer. Six offers were received and they are as follows:

Denis Levert	$ 43,500	Deposit of $10,000 with offer
Alfredo and Eleanor Cesare	$ 80,100	Deposit of $10,000 with offer
Kwok Hung Kwan	$ 91,000	Deposit of $10,000 with offer
Vigilio Righi	$114,900	Deposit of $10,000 with offer
Dr. Khaled Hasham	$118,500	Deposit of $10,000 with offer
Giovanni Farinaccio	$130,001	Deposit of $10,000 with offer

The offer by Giovanni Farinaccio in the amount of $130,001 is unconditional and considered to be fair and reasonable and is recommended for acceptance. An independent appraisal estimated the market value at $110,000 as of 17 November 06 and the property was listed at $117,900. Therefore, the recommended offer exceeds the listing price. The property is being sold as a residential building lot and the zoning designation is Rs3, Residential, Single Dwelling Zone, Gloucester Zoning By-law 333-1999. The proposed zoning designation in the new Comprehensive Zoning By-law is R1M, a Residential First Density zone, comparable to the present zoning designation. In May 2006, as part of the public notification process for the Street Closing application, Mr. Farinaccio met with Planning and Real Estate staff and was made aware of the zoning designation and permitted uses for this property.

ENVIRONMENTAL IMPLICATIONS

The Environmental Sustainability Division of Planning, Transit & the Environment Department has confirmed that there are no implications for the natural environment involved in the proposed sale.

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 typically requires properties that are suitable for multi-unit residential development. However, since last year, community organizations have identified a need for single family lots for affordable housing and the Housing Branch has been working cooperatively with RPAM to address these needs. At the time this property was circulated, Housing Branch did not have an identified community need for single family residential lots.

The subject is a viable residential property and is being sold without a condition requiring an affordable housing component. In accordance with the Housing First policy, 25% of the proceeds from the sale will be credited to a housing fund to be used for the development of affordable housing elsewhere in the City.

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, Public Works and Services and Planning, Transit and the Environment, to determine if the property should be retained for a City mandated program. The Environmental Management Group of the Planning, Transit and the Environment Department was consulted with respect to the Greenspace Master Plan and their comments are indicated under the Environmental Implications section of this report. Neither the Housing Branch nor any other City Department expressed interest in retaining the property. As this property is viable, a circulation to external agencies was undertaken and there was no interest in the property.

The utility companies were also circulated and there is no plant requiring easement protection in the parcel being sold.

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 concerns were expressed with respect to the sale of the subject property with the exception of the OFGAC who responded they have no objections to the sale subject to the preservation and incorporation of the two large and healthy mature trees at the north end of the property (close to the property line) into the new residential development plan. An inspection revealed that the subject trees are located beyond the property line; therefore, the City has no jurisdiction over the trees. This information was forwarded to OFGAC stating that the subject trees will likely be protected by abutting owners as they provide a natural buffer between the two rear property lines. OFGAC had no further concerns.

The ward Councillor, during our circulation process, indicated no objections to the disposal of the subject property.

FINANCIAL IMPLICATIONS

This transaction represents revenue of $130,001 to the Corporation with $97,500 to be credited to the City’s Sale of Surplus Land Account and $32,501 to be credited to the Housing Reserve Fund.

SUPPORTING DOCUMENTATION

Attached, as Annex "A" is a sketch showing the surplus property.

DISPOSITION

Following Council’s approval, Real Property Asset Management and Legal Services Branches will finalize the transaction.