16. MANOTICK MILL QUARTER - THE PROPOSED ACQUISITION OF LAND

QUARTIER DU MOULIN DE MANOTICK - L'ACQUISTION DE TERRAIN PROPOSE

Committee Recommendations

That Council:

1. Approve the establishment of a Manotick Mill Quarter Corporation (holding company), as described in this report, in accordance with the Business Case Study set out in Document 1 attached hereto;

2. Approve the acquisition in fee simple of two (2) parcels of land consisting of a combined land area of approximately 4056 sq. m. owned by the Rideau Valley Conservation Authority (RVCA) and known as the Dickinson House, the Carriage House and Weaver’s House being Parcel “A” and the Ayer’s Building being Parcel “B”, as shown on the Annex “A” sketch attached to this report, for the consideration of $1,400,000 plus GST subject to final adjustments on closing and the following condition. The RVCA would be required to enter into a heritage easement agreement with the City for the Watson’s Mill property, being Parcel “C”, as shown on the Annex “A” sketch attached to this report, and to agree to transfer the Watson’s Mill property to Watson’s Mill Manotick Inc. for $1 subject to the City being provided with an option to purchase this property for $1 if Watson’s Mill Manotick Inc. at any time offers the Mill property for lease or sale;

3. Approve the acquisition in fee simple of a 2144 sq. m. parcel of land, owned by the Estate of Anna Dorothy Clapp, described as Part of Lot 1, Concession A, Broken Front, North Gower; Part Lot 1 N/S Bridge Street, Plan 15 As In NG13177; City of Ottawa (PIN: 03903-1114) and being Parcel “D” as shown on the Annex “A” sketch attached to this report, for the consideration of $590,000 plus GST subject to final adjustments on closing;

4. Approve the acquisition in fee simple of a 1648 sq. m. parcel of land, owned by Maurice Holloway, described as Part of Lot 1, Concession A, Broken Front, North Gower, As In NG10893; City of Ottawa (PIN: 03903-1158) and being Parcel “E” as shown on the Annex “A” sketch attached to this report, for the consideration of $250,000 plus GST subject to final adjustments on closing;

5. Approve the transfer of the properties, shown as Parcels “A”, “B”, “D” & “E” on the Annex “A” sketch attached to this report to the Manotick Mill Quarter Corporation subject to the repayment and heritage and easement conditions and the public use covenants set out more particularly in Document 2 of this report;

6. Direct staff to continue to pursue with Watson’s Mill Manotick Inc., Energy Ottawa and Parks Canada, the potential for and economic viability of generating electrical power at Watson’s Mill; and

7. Approve a grant to Dickinson Heritage Management Inc. (DSHMI) in an amount not to exceed $25,000 to be used to offset the actual costs incurred by DSHMI in the preparation of its business plan as described in this report.

Recommandations du comité

Que le Conseil:

1. Approuve l’établissement de la Société du quartier du moulin de Manotick (une société de portefeuille), selon la description dans le présent rapport, ainsi que l’étude de rentabilisation figurant au document 1 annexé aux présentes;

2. Approuve l’acquisition en fief simple de deux (2) parcelles de terrain consistant en une superficie de terre combinée d’environ 4056 mètres carrés appartenant à l’Office de protection de la nature de la vallée de Rideau (OPNVR) et connues sous l’appellation de Dickinson House, Carriage House et Weaver’s House, constituant la parcelle « A », et Ayer’s Building, constituant la parcelle « B », comme il est illustré dans le croquis de l’annexe « A » annexée au présent rapport, pour la somme de 1 400 000 $ plus la TPS sous réserve des rajustements finals au moment de la signature du contrat et au condition suivant. L’OPNVR conclue une entente de servitude du patrimoine avec la Ville pour le bien immeuble de la Meunerie Watson, constituant la parcelle « C » ainsi qu’il est illustré dans le croquis de l’annexe « A » annexée au présent rapport, et consentira à céder le dit bien immeuble à Watson’s Mill Manotick Inc. pour le montant de 1 $ sous réserve que la Ville bénéficie de l’option d’acquérir le dit bien immeuble pour le montant de 1 $ si Watson’s Mill Manotick Inc. met en location ou en vente un moment donné le bien immeuble;

3. Approuve l’acquisition en fief simple d’une parcelle de terrain de 2 144 mètres carrés appartenant à la succession de Anna Dorothy Clapp, décrite en tant que partie du Lot 1, Concession A, Broken Front, North Gower; partie du Lot 1 N/S rue Bridge, Plan 15 comme dans NG13177; Ville d’Ottawa (PIN : 03903-1114) et constituant la parcelle « D », comme il est illustré dans le croquis de l’annexe « A » annexée au présent rapport, pour la somme de 590 000 $ plus la TPS sous réserve des rajustements finals au moment de la signature du contrat;

4. Approuve l’acquisition en fief simple d’une parcelle de terrain de 1 648 mètres carrés appartenant à Maurice Holloway, décrite comme la partie du Lot 1, Concession A, Broken Front, North Gower, comme dans NG10893; Ville d’Ottawa (PIN : 03903-1158) et constituant la parcelle « E », comme il est illustré dans le croquis de l’annexe « A » annexée au présent rapport, pour la somme de 250 000 $ plus la TPS sous réserve des rajustements finals au moment de la signature du contrat;

5. Approuve la cession de ces biens immeubles, constituant les parcelles « A », « B », « D », et « E », comme il est illustré dans le croquis de l’annexe « A » annexée au présent rapport, à la Société du quartier du moulin de Manotick, selon les conditions figurant au document 2 annexé aux présentes;

6. Demande au personnel de continuer à examiner, avec Watson’s Mill Manotick Inc., Énergie Ottawa et Parcs Canada, la possibilité de production d’énergie électrique à la Meunerie Watson ou sa viabilité économique; et

7. Approuve une subvention à Dickinson Square Management Inc. (DSHMI) d’un montant ne devant pas dépasser 25 000 $ et devant servir à payer les coûts effectifs pour DSHMI de la préparation de son plan d’activités ainsi qu’il est décrit dans le présent rapport.

DOCUMENTATION

1. Executive Director's (Business Transformation Services) and Deputy City Manager's (Community and Protective Services) joint report dated 8 November 2007 (ACS2007-BTS-RPM-0045).

2. Extract of Draft Minute, 19 November 2007.

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

8 November 2007 / le 8 novembre 2007

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

and/et

Steve Kanellakos, Deputy City Manager/Directeur municipal adjoint,

Community and Protective Services/Services communautaires et de protection

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

and/et

Colleen Hendrick, Director

Cultural Services and Community Funding/ Services culturels et financement communautaire

(613) 580-2424 x 24366, colleen hendrick@ottawa.ca

Rideau-Goulbourn (21)

ACS2007-BTS-RPM-0045

SUBJECT:

MANOTICK MILL QUARTER -

THE PROPOSED ACQUISITION OF LAND

OBJET :

QUARTIER DU MOULIN DE MANOTICK -

L’Acquistion De TERRAIN PROPOSE

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee consider recommending that Council:

1. Approve the establishment of a Manotick Mill Quarter Corporation (holding company), as described in this report, in accordance with the Business Case Study set out in Document 1 attached hereto;

2. Approve the acquisition in fee simple of two (2) parcels of land consisting of a combined land area of approximately 4056 sq. m. owned by the Rideau Valley Conservation Authority (RVCA) and known as the Dickinson House, the Carriage House and Weaver’s House being Parcel “A” and the Ayer’s Building being Parcel “B”, as shown on the Annex “A” sketch attached to this report, for the consideration of $1,400,000 plus GST subject to final adjustments on closing and the following condition. The RVCA would be required to enter into a heritage easement agreement with the City for the Watson’s Mill property, being Parcel “C”, as shown on the Annex “A” sketch attached to this report, and to agree to transfer the Watson’s Mill property to Watson’s Mill Manotick Inc. for $1 subject to the City being provided with an option to purchase this property for $1 if Watson’s Mill Manotick Inc. at any time offers the Mill property for lease or sale;

RECOMMANDATIONS DU RAPPORT

Que le Comité des services organisationnels et du développement économique considérer à recommander au Conseil ce qui suit:

1. Approuver l’établissement de la Société du quartier du moulin de Manotick (une société de portefeuille), selon la description dans le présent rapport, ainsi que l’étude de rentabilisation figurant au document 1 annexé aux présentes;

2. Approuver l’acquisition en fief simple de deux (2) parcelles de terrain consistant en une superficie de terre combinée d’environ 4056 mètres carrés appartenant à l’Office de protection de la nature de la vallée de Rideau (OPNVR) et connues sous l’appellation de Dickinson House, Carriage House et Weaver’s House, constituant la parcelle « A », et Ayer’s Building, constituant la parcelle « B », comme il est illustré dans le croquis de l’annexe « A » annexée au présent rapport, pour la somme de 1 400 000 $ plus la TPS sous réserve des rajustements finals au moment de la signature du contrat et au condition suivant. L’OPNVR conclue une entente de servitude du patrimoine avec la Ville pour le bien immeuble de la Meunerie Watson, constituant la parcelle « C » ainsi qu’il est illustré dans le croquis de l’annexe « A » annexée au présent rapport, et consentira à céder le dit bien immeuble à Watson’s Mill Manotick Inc. pour le montant de 1 $ sous réserve que la Ville bénéficie de l’option d’acquérir le dit bien immeuble pour le montant de 1 $ si Watson’s Mill Manotick Inc. met en location ou en vente un moment donné le bien immeuble;

3. Approuver l’acquisition en fief simple d’une parcelle de terrain de 2 144 mètres carrés appartenant à la succession de Anna Dorothy Clapp, décrite en tant que partie du Lot 1, Concession A, Broken Front, North Gower; partie du Lot 1 N/S rue Bridge, Plan 15 comme dans NG13177; Ville d’Ottawa (PIN : 03903-1114) et constituant la parcelle « D », comme il est illustré dans le croquis de l’annexe « A » annexée au présent rapport, pour la somme de 590 000 $ plus la TPS sous réserve des rajustements finals au moment de la signature du contrat;

4. Approuver l’acquisition en fief simple d’une parcelle de terrain de 1 648 mètres carrés appartenant à Maurice Holloway, décrite comme la partie du Lot 1, Concession A, Broken Front, North Gower, comme dans NG10893; Ville d’Ottawa (PIN : 03903-1158) et constituant la parcelle « E », comme il est illustré dans le croquis de l’annexe « A » annexée au présent rapport, pour la somme de 250 000 $ plus la TPS sous réserve des rajustements finals au moment de la signature du contrat;

5. Approuver la cession de ces biens immeubles, constituant les parcelles « A », « B », « D », et « E », comme il est illustré dans le croquis de l’annexe « A » annexée au présent rapport, à la Société du quartier du moulin de Manotick, selon les conditions figurant au document 2 annexé aux présentes;

6. Demander au personnel de continuer à examiner, avec Watson’s Mill Manotick Inc., Énergie Ottawa et Parcs Canada, la possibilité de production d’énergie électrique à la Meunerie Watson ou sa viabilité économique; et

7. Approuver une subvention à Dickinson Square Management Inc. (DSHMI) d’un montant ne devant pas dépasser 25 000 $ et devant servir à payer les coûts effectifs pour DSHMI de la préparation de son plan d’activités ainsi qu’il est décrit dans le présent rapport.

BACKGROUND

The RVCA is currently headquartered in the Village of Manotick in the area commonly referred to as Dickinson Square. The RVCA owns five (5) buildings abutting the Square known as: Watson’s Mill, the Dickinson House, the Carriage Shed, the Weaver’s House, and the Ayer’s Building. Except for the Ayers Building, these buildings are designated heritage under Part IV of the Ontario Heritage Act and the Ayers Building is currently in the process of being designated. Watson’s Mill is operated by Watson’s Mill Manotick Inc., a not-for-profit corporation dedicated to preserving Ottawa’s only working industrial heritage site and the only operating gristmill on Rideau Canal.

The RVCA is now completing the construction of a new headquarters facility in Beryl Gaffney Park, under the provisions of a ground lease and construction/building lease agreements with the City, and will be vacating its Dickinson Square properties by early 2008.

Since the RVCA’s business plan for its new headquarters project includes a provision for the sale of its Dickinson Square properties, the RVCA undertook a “Best Use” study, carried out in 2006 by Commonwealth Historic Management Ltd., which clearly indicated the community preference that these significant buildings in the historic part of the Village of Manotick remain in public ownership.

On 11 July 2006, when City Council approved the terms and conditions for the agreements between the City and the RVCA to provide for the construction of a new RVCA headquarters building in Beryl Gaffney Park, Council also approved a condition that the RVCA provide at nominal consideration to the City of Ottawa an "Option to Purchase" the Dickinson Square properties at fair market value for a period up to a maximum of 18 months.

Council then directed staff to enter into discussions with the RVCA, Dickinson Square Heritage Management Inc. (DSHMI), and the broader community in order to develop options that provide for the property to remain under public ownership and to report back to Committee and Council at least 6 months prior to the expiration of the option period.

The resulting Option Agreement was executed on 23 November 2006 and the Option Period will terminate on 23 May 2008 unless otherwise extended by mutual agreement. As a result, City staff has undertaken due diligence work (real estate appraisal, building condition audit, internal circulation) and consulted with the RVCA and DSHMI representatives in order to be able to report back to Council by the end of November 2007.

City staff also noted, as part of the due diligence work, that:

§ The property at 1135 Mill Street, between the Weavers House at 1131 Mill Street and the City owned the property at 1137 Mill Street (leased to the Millers Oven), was listed for sale at $339K and reportedly conditionally sold;

§ The property owned by the Estate of Dorothy Clapp at 1125 Clapp Lane, which property also abuts Bridge Street and Mill Street as a key entryway to Dickinson Square, was listed for sale at $699K;

§ The property owned by Maurice Holloway at the corner of Bridge Street & Mill Street across, which is directly across Mill Street from the Clapp property and abuts the west channel of the Rideau River, has reportedly been offered to the RVCA for $300K; and

§ The Manotick Village Plan, as set out in Volume 2c of the City’s Official Plan adopted under By-law 203-2003 City’s Official Plan , limits the proposed institutional uses and offices uses in the Historic Village East Sector to those under the existing zoning and provides for Council to examine the feasibility of relocating the RVCA offices and establishing a “Mill Quarter” based on commercial tourist/heritage type uses (accommodation, boutiques, galleries, craft and other specialty outlets, museums, restaurants and studios). Document 5 of this report provides further information on the Village Plan for Manotick.

Document 3 of this report provides detailed Background Information regarding the RVCA’s need to sell the Dickinson Square properties and the due diligence work undertaken by City staff in 2007.

Dickinson Square Heritage Management Inc. (DSHMI) is a not-for-profit corporation, incorporated in June 2006, with corporate objectives to:

a) Carry out the stewardship of Dickinson Square ensuring public ownership, preservation and promotion of the Square as a unique industrial heritage site;

b) Create a unique cultural space by providing opportunities for community participation in arts and heritage activities around the buildings of Dickinson Square;

c) Educate and promote public awareness and appreciation of the historical significance of the Square through historical research, educational an cultural programming and interpretive displays; and

d) Manage the Square’s buildings and open spaces for the benefit of the larger community of the City of Ottawa and beyond.

In 2007, DSHMI commissioned Canadian Cultural Resource Consultants Inc. (London, ON) in partnership with Goldsmith Borgal & Company, Architects Ltd (Toronto, ON) to prepare a concept plan/business plan to support a proposed option by DSHMI for the City to acquire the RVCA’s Dickinson Square Properties and for DSHMI to operate and manage these building and Dickinson Square as a heritage cultural centre to provide opportunities and space for arts, heritage programming and community activities.

On 16 October 2007, DSHMI received the initial draft of the Business Plan from the consultant and forwarded a copy to the City on condition that the plan is considered a work-in-progress since DSHMI Board would also be reviewing the initial draft that same evening.

DSHMI held a public information meeting in the Manotick Arena on 18 October 2007 to provide an overview of the draft Business Plan and receive feedback form the public. A summary of the corporate and draft business plan information presented by DSHMI at that meeting is provided in Document 4 of this report.

Following the DSHMI Board review of the initial draft of the Plan and the public meeting, DSHMI had the draft revised and, on 23 October 2007, submitted a second draft of its Business Plan to the City again on condition that the plan is considered a work-in-progress.

On 17 October 2007, staff from the City’s Cultural Services & Community Funding Branch, Parks & Recreation Branch, Economic & Environmental Sustainability Branch, Rural Affairs Office, and Real Property Asset Management Branch met with the Deputy City Manger of Community and Protective Services Department to set a direction for reporting back to Council by the end of November 2007 regarding options that provide for the RVCA’s Dickinson Square properties to remain under public ownership given the information in the initial draft of DSHMI’s Business Plan and the information from the City’s due diligence work.

At the meeting, staff agreed that a report should be prepared for consideration in November 2007, by the Agricultural and Rural Affairs Committee, the Corporate Services and Economic Development Committee and Council which outlines and evaluates DSHMI’s draft Business Plan and any other potential City option for the City acquiring the RVCA’s Dickinson Square properties on the basis of objectives as follows:

The preservation and enhancement of the unique enclave of heritage buildings in the Village of Manotick’s Dickinson Square after the RVCA divests its properties in that location;
The continued operation of Watson’s Mill as a “living museum” by Watson’s Mill Manotick Inc.;
The establishment of a Mill Quarter as envisioned by the Village Plan for Manotick set out in the City’s Official Plan;
The preservation of Dickinson Square by formalizing and maintaining it as an open space, primarily for public use, to reflect the heritage character of the Mill Quarter and provide enhanced opportunities for heritage and cultural events as envisioned by DSHMI;
The provision of effective public controls with respect to ensuring the development and use of properties in the Mill Quarter are consistent with the above objectives; and
The preservation and enhancement of the Dickinson Square buildings and the square and the establishment of the Mill Quarter are undertaken with no net impact on the City’s operating and capital budgets.

Representatives from the City’s Rural Affairs Office, the Cultural Services and Community Funding Branch, and Real Estate Services Division then attended the October 18^th pubic meeting organized by DSHMI and subsequently reviewed the second draft of DSHMI’s Business Plan that was submitted on 23 October 2007.

DISCUSSION

After reviewing DSHMI’s draft Business Plan, revised as of 23 October 2007, City staff is supportive of the major objectives of the draft Plan and acknowledges that it fully addresses objectives #’s 1 & 2 outlined above. However the draft Plan only partially addresses objectives #’s 3, 4 & 5 outlined above and does not meet objective #6 from the City’s financial perspective.

With respect to objective #3, DSHMI’s darft Plan is clearly more than adequate in providing heritage and cultural opportunities for the Mill Quarter, as envisioned by the Village Plan set out in the City’s Official Plan for Manotick, but it does not provide for any significant commercial tourist/heritage type uses (accommodations, boutiques, galleries, crafts and other specialty outlets, museums, restaurants and studios) as detailed in the Village Plan.

With respect to objective #4, DSHMI’s draft Plan provides for the preservation of Dickinson Square as a public open space with enhanced opportunities for heritage and cultural events but the square is not formally defined in relation to that space which would be exclusive to the users of the adjacent buildings.

With respect to objective #5, DSHMI’s draft Plan provides only for the City to own/control and limit development of the RVCA’s properties and does not provide for development opportunities and controls for private sector use of these properties and the other privately owned properties in the Mill Quarter that are needed to meet objective # 3 outlined above.

With respect to objective #6, DSHMI’s draft Plan assumes that the City will cover the property acquisition, life cycle costs, and building retrofit cost for building code and other regulatory compliance with respect to the changes of use contemplated by the draft Plan. The present value cost to the City for these items exceeds $3M.

As a result, City staff does not feel that the City should acquire the RVCA properties on the basis of the option presented in DSHMI’s draft Business Plan.

However, staff also acknowledges that there will be even less opportunity for the City to achieve its objectives for the Mill Quarter as outlined above if the City does not exercise the option to acquire the RVCA’s and adjacent properties that are being offered for sale by the respective owners.

Based on the objectives set out for the Mill Quarter as outlined above, and the current opportunity for the City to purchase the RVCA, Clapp and Holloway properties which abut Dickinson Square properties at current market value, staff believe that the City should establish a Manotick Mill Quarter Corporation as outlined in Recommendation #1 of this report. The proposed corporation would be established so that it is ultimately financially self-sustaining, as outlined in Documents #’s 1 & 2 and in the Disposition Section of this report, to provide Council with a tool to fully control the development and use of the properties shown as Parcels “A” to “E” on Annex “A” of this report and achieve the City’s objectives for the Mill Quarter.

After discussions with RVCA staff, RESD staff believe that the RVCA would likely agree to selling to the City the Dickinson House, the Carriage Shed, the Ayer’s Building and the Weaver’s House properties for $1.4M and to transfer the Watson’s Mill property to Watson’s Mill Manotick Inc. for $1, subject to the City being provided with an option to purchase this property for $1 if Watson’s Mill Manotick Inc. at any time offers the Mill property for lease or sale. It also appears that the RVCA would likely agree to enter into a heritage easement agreement with the City for the Mill property prior to transferring it to Watson’s Mill Manotick Inc. The $1.4M purchase price for the proposed transaction between the City and the RVCA is consistent with the appraised value of the properties as established by independent appraisal reports.

If City does not buy RVCA properties, there is no guarantee that the properties will be sold in the near future and, in that event, the RVCA will then have to increase its levy to offset the carrying costs for the $1.4M with the City paying approx. 91% of this levy

Once the levy is increased there is also no guarantee that the RVCA will eliminate the additional levy when the properties are sold as it might decide to use the sales revenue for other projects. It is noted that while the City pays 91% of levy it has only 6 members on the 12 member RVCA Board with only three of the members being City of Ottawa Councillors.

The Agricultural and Rural Affairs Committee, at its meeting on 8 November 2008, provided direction to staff that, if the City purchases the RVCA’s Dickinson Square properties, the RVCA should be required to pay down the amount borrowed from the City (lease/debenture) for its new headquarters building by $600K as provided for in the RVCA’s Business Case for its new building described in Document 3 of this report. The Corporate Services and Economic Development Committee may wish to recommend to Council that this be an additional condition, to those already set out in Recommendation 2 of this report, for purchasing the RVCA’s Dickinson Square properties.

After the meeting on 17 October 2007, RESD staff initiated real estate appraisals for the Clapp and Holloway properties set out as Parcels “D” & “E” on Annex “A” attached to this report and negotiated Agreements of Purchase and Sales for these properties which agreements are conditional on Council approval. The purchase prices for these properties as set out in Recommendations #’s 3 & 4 of this report are consistent with the currently appraised market values and are substantially less than the original asking prices.

The acquisition of the Clapp and Holloway properties, in addition to the RVCA’s properties will significantly improve the opportunities for the City to reposition the properties around the Mill Square from both planning and real estate market perspectives and to add value.

The total cost for acquiring the properties, as set out in Recommendations #’s 2, 3, & 4 of this report, is $2.25M plus GST. The costs for holding these properties over a two year period, assuming a worst case scenario that the properties will remain fully vacant, is estimated to be $200K based on the minimum amount of operating, maintenance and capital renewal expenditures ($100K) required to protect these assets and the anticipated amount of expenditures ($100K) to reposition the properties from both a planning and real estate market perspective. The total cost for acquiring and holding these properties is estimated to be $2.45M plus GST.

With the assembly of these properties, the designation of the Rideau Canal as a World Heritage site and the imminent provision of municipal sanitary sewer services for this area in addition to existing municipal water services, the Manotick Mill Quarter Corporation will have a significant market opportunity to fully recover the $2.45M in acquisition and holding costs outlined above.

The Manotick Mill Quarter Corporation also provides the opportunity to involve both Watson’s Mill Manotick Inc. and DSHMI in the planning, development and management of the Mill Quarter as described in the Disposition Section of this report.

The City will not directly benefit financially from a project to generate electrical power at Watson’s Mill if Watson’s Mill Inc., Energy Ottawa and Parks Canada determine that this is economically viable. However, it is still in the best interests of the City to facilitate the feasibility study, as set out in Recommendation # 6 of this report, to help Watson’s Mill Manotick Inc. establish additional funding sources for operating and maintaining the Mill and its programs and for Energy Ottawa to move further forward with its mandate to undertake environmentally and financially sustainable projects.

At the public meeting on 18 October 2007, DSHMI indicated the need to raise funds to cover the cost of preparing its draft Business Plan as outlined in Document #3 of this report. Given the value of the work carried out by DSHMI to the City in pursuing options for public control of the RVCA properties as directed by Council on 11 July 2006, staff recommends that the City provide a grant in an amount up to $25,000 plus GST to reimburse DSHMI for its actual costs incurred in preparing the draft Business Plan.

ENVIRONMENTAL IMPLICATIONS

Upon approval of this report by Council, RESD will contact the Environmental Sustainability Division of Planning, Transit and the Environment Department to identify any significant natural features that the Mill Corporation will be required to address as a development corporation when making applications to the City for development approvals.

RESD will initiate Phase I Environmental Site Assessments as part of the due diligence process for acquiring the properties and such other further assessments as may be indicated by the Phase I ESA process.

CONSULTATION

The RVCA, DSHMI, Watson’s Mill Inc. and Ward Councillor have been consulted during the due diligence process. Staff met with DSHMI representatives and the Ward Councillor on 7 November 2007 to provide staff feedback on the DHMI’s draft Business Plan and to present the City's proposed strategy for a Mill quarter Corporation to ensure that the DSHMI heritage vision could be achieved in an alternate manner while at the same time addressing the operating and capital financial implications for the City.

On 8 November 2007, staff sought direction, at a in-camera session, from the Agricultural and Rural Affairs Committee regarding the potential acquisitions of the RVCA, Clapp and Holloway properties.

HOUSING FIRST POLICY

The recommendations of this report relate to the implementation of the Manotick Village Plan of the Official Plan which provides for establishment of a “Mill Quarter” based on commercial tourist/heritage type uses (accommodation, boutiques, galleries, craft and other specialty outlets, museums, restaurants and studios).

FINANCIAL IMPLICATIONS

Funding for the acquisition of the properties as set out in the recommendations of this report was not included in the capital envelope of strategic initiatives.

Subject to City Council approval of this report, the project for the property acquisitions will be included in the 2008 budget deliberations as requiring funding.

The establishment of the Manotick Mill Quarter Corporation is based on the requirement in Business Case Study, attached as Document 1 of this report, that the Corporation will be financially self-sustaining with the projected expenditures by the City totalling $2,440,000 being offset by revenues totalling $2,440,000 from repayments by the Mill Quarter Corporation, as it sells/leases portions of the property, within two years of the properties being transferred by the City to the Mill Corporation.

If CSEDC recommends and Council approves an additional condition that the RVCA be required to pay down the amount borrowed from the City (lease/debenture) for its new headquarters building by $600K as part of completing the property transaction with the RVCA, the City will be credited with an amount of $600,000 as part of the statement of adjustments to be applied to the purchase and sales transaction with the RVCA for its Dickinson Square properties.

The grant valued at $25,000 plus GST will be funded from Cultural Services capital project 903476 - Relocation of Cultural Space.

SUPPORTING DOCUMENTATION

Attached are Documents #’s 1, 2, 3, 4 & 5; Annex “A” Plan, which provide details regarding the recommendations and information set out in this report.

DISPOSITION

Following Council’s approval of Recommendations # 1 of this report, RESD and the Legal Services Branch, which was consulted during the preparation of this Report, will take actions as required to incorporate the Manotick Mill Quarter Corporation described in this report.

Following Council’s approval of Recommendation # 2 of this report and a further approval by Council in December 2007 to provide funds for the transaction as part of the 2008 Budget, RESD, in consultation with the Planning and Legal Services Branch and Watson’s Mill Manotick Inc., will negotiate and complete an Agreement of Purchase and Sale with the RVCA that includes conditions for a heritage easement agreement for the Watson’s Mill property and for a property transfer agreement between the RVCA, Watson’s Mill Manotick Inc and the City; and then close these property transactions. If CSEDC recommends, and Council approves, an additional condition that the RVCA be required to pay down the amount borrowed from the City (lease/debenture) for its new headquarters building by $600K as part of completing the property transaction with the RVCA, this condition will also form part of the Agreement of Purchase and Sale.

Following Council approval of Recommendations # 3 & #4 of this report and a further approval by Council in December 2007 to provide funds for the transactions as part of the 2008 Budget, RESD and the Legal Services Branch will complete the purchase transactions for the Clapp & Holloway properties.

Following incorporation of the Manotick Mill Quarter Corporation and the acquisition of the RVCA, Clapp, and Holloway properties by the City, RESD and legal Services will arrange for the transfer of the properties from the City to the Corporation as provided for in Recommendation #5 of this report.

Once the properties have been transferred by the City to the Manotick Mill Quarter Corporation, RESD on behalf of the Corporation, in consultation with the Planning and Legal Services Branch, Watson’s Mill Inc and DSHMI, will initiate the necessary actions to place heritage easements on the former RVCA properties, to create Dickinson Square as a formal public open space as set out in Document 2 of this report, and to establish appropriate development and use criteria/covenants for development of properties within the Mill Quarter Area.

Upon establishment of the heritage easements, the creation of a formal Dickinson Square and development and use criteria/covenants for development of properties within the Mill Quarter Area, RESD and the Supply Division will initiate a Request for Offers to Purchase process for the sale or long-term leasing of the Manotick Mill Quarter Corporation’s properties except for lands associated with the Dickinson Square.

Following approval of Recommendation #6 RESD staff will liaise with Energy Ottawa, Parks Canada and Watson’s Mill Inc. to facilitate the feasibility study for generating electrical power at Watson’s Mill.

Following approval of Recommendation #7, the Cultural Services and Community Funding Branch will arrange for DSHMI to be paid for its actual expenditures, incurred until to 28 November 2007, up to an amount of $25K plus GST.

ANNEX A

DOCUMENT 1

MANOTICK MILL QUARTER CORPORATION

BUSINESS CASE STUDY

1. CORPORATE PURPOSES

The Manotick Mill Quarter Corporation is to be incorporated for the following purposes:

· Formalize and maintain Dickinson Square as an open space, primarily for public use, to reflect the heritage character of the Mill Quarter and provide enhanced opportunities for heritage and cultural events;

· Plan, subdivide, and develop/redevelop properties within the “Mill Quarter” area in the Village of Manotick, as required to ensure the preservation and enhancement of the heritage buildings and character of the “Mill Quarter” according to the provisions set out in the Village of Manotick Plan included in Volume 2C of the City’s Official Plan, for a heritage cultural centre with opportunities for arts and heritage programming and community activities and for commercial accommodation, boutiques, galleries, craft and other specialty outlets, museums, restaurants, and studios;

· Acquire and hold land within, and adjacent to, the “Mill Quarter” area;

· Clear, grade, service, or otherwise prepare the Manotick Mill Quarter Corporation sites;

· Improve, beautify and maintain City-owned land, buildings and structures, within the “Mill Quarter” area beyond the standard provided at the expense of the City generally and promote community improvement for the Mill Quarter and adjacent areas;

· Sell, lease or otherwise dispose or encumber all or part of the Corporations sites;

· Enter into Municipal Capital Facility Agreements;

· Enter into agreements for planning and implementing the Corporations projects; and

· Construct, operate, maintain and own, including ownership of the land related thereto, one or more of the following facilities:

(i) Recreation, tourism and cultural facilities,

(ii) General parking facilities, and

(iii) Public transportation facilities

B. CORPORATE STRUCTURE & ORGANIZATIONAL DIRECTION

Single non-profit corporation under Part III of the Corporations Act with the City as sole shareholder;
Minimum of five (5) members of the Council of the City of Ottawa to be members of the board of directors of the corporation;
Initial board of directors to be the members of the Agricutural and Rural Affairs Committee;
Initial officers of corporation to be appointed by the City Manager from members of City’s Executive and Senior Management teams;
Corporation projects will be undertaken only in accordance with objectives and development plans approved by Council;
Budgets of the corporation will be subject to Council approval;
Properties and facilities will be purchased by the corporation from the City on the basis of market value at the time of the purchase;
Funding for the corporation, including funds for land purchases from the City will be provided by the City only on the basis of a loan which shall be subject to repayment by the corporation, as a first priority, from the net proceeds of its development projects (prepaid long-term property leases or sales);
Resources for the corporation, unless otherwise authorized by the board of directors of the corporation, will be purchased from the City on a cost recovery basis with the prime resource being an independent unit of the Real Estate Services Division with capability and responsibility to implement strategic real estate development projects;
Services provided by the City to the development corporation will be in accordance with approved City policies and procedures except where otherwise authorized by Council and the Board of Directors of the Corporation; and
Within 2 years of the date the corporation is incorporated, the City shall undertake an evaluation and review of the corporation’s operations with respect to:

(a) the usefulness and continued provision by the City of financial or other assistance to the corporation, and

(b) the possible winding-up of the corporation

DOCUMENT 2

CONDITIONS FOR TRANSFER OF PROPERTIES

from

CITY of OTTAWA

MANOTICK MILL QUARTER CORPORATION

1. The Manotick Mill Quarter Corporation, in accordance with the Business Case Study, shall repay to the City all costs associated with acquisition and holding of the properties, shown as Parcels “A”, “B”, “D” & “E” on the Annex “A” sketch attached to this report, by creating an appropriate prepaid long-term property lease or sales revenue;

2. The Manotick Mill Quarter Corporation shall enter into heritage easement agreements with the City for the Dickinson House, the Carriage House, Weaver’s House and Ayer’s Building properties prior to the lease or sale of these properties; and

3. The Manotick Mill Quarter Corporation shall formalize and maintain Dickinson Square as an open space, primarily for public use, to reflect the heritage character of the Mill Quarter and provide enhanced opportunities for heritage and cultural events in consultation with Dickinson Square Heritage Management Inc. (DSHMI) and Watson’s Mill Inc.

DOCUMENT 3

MANOTICK MILL QUARTER

RVCA DICKINSON SQUARE PROPERTIES

BACKGROUND

1. Rideau Valley Conservation Authority (RVCA) - Dickinson Square Properties

The RVCA Headquarters Construction Agreement sets out funding sources as follows:

City of Ottawa Funding (Debenture/Lease payments by RVCA) $5,600,000

Waive or Grant Back of Various Permits and Fees $220,000

Tax Exemption Credit (estimate of GST and PST recovery) $600,000

RVCA Capital Reserve and Working Fund Reserve $300,000

RVCA / RBC Line of Credit $500,000

RVCA Revenue from Sale of Land at Chapman Mills $266,000

Total Project Funding Available $7,486,000

Notwithstanding the provisions of the Construction Agreement, it is understood that the RVCA’s business plan for its new headquarters project includes a provision for the sale of its Dickinson Square properties for at least $1.4M in order to allow the debenture for new building to be reduced by $600K from $5.6M to $5M and to preclude the need to use $300K of reserves and borrow $500K from its line of credit as indicated above. If it does not sell these properties soon after the completion of its new headquarters building, the RVCA will need to increase its levy above that currently set out in its annual operating budget to include for additional carrying costs related to the $1.4M. The City of Ottawa currently pays approximately 91% of the RVCA’s annual operating levy.

Prior to offering these buildings for sale, the RVCA undertook in 2006 a “Best Use” study, carried out by Commonwealth Historic Management Ltd., which clearly indicated the community preference for these significant buildings, which are an integral part of the Manotick Community to remain in public ownership.

As a result, on 11 July 2006 when City Council approved the terms and conditions for the agreements between the City and the RVCA to provide for the construction of a new RVCA headquarters building in Beryl Gaffney Park, Council also approved a condition that the RVCA provide at nominal consideration to the City of Ottawa an "Option to Purchase" the Dickinson Square properties at fair market value for a period up to a maximum of 18 months.

Council also directed staff to enter into discussions with the RVCA, Dickinson Square Heritage Management Inc. (DSHMI), and the broader community in order to develop options that provide for the property to remain under public ownership and to report back to Committee and Council at least 6 months prior to the expiration of the option period. The resulting Option Agreement was executed on 23 November 2006 and the Option Period will terminate on 23 May 2008 unless otherwise extended by mutual agreement. As a result, City staff has undertaken due diligence work (real estate appraisal, building condition audit, internal circulation) and consulted with the RVCA and DSHMI representatives in order to be able to report back to Council by the end of November 2007.

2. Dickinson Square Heritage Management Inc (DSHMI) Initiatives in 2007

DSHMI is a not-for-profit corporation, incorporated in June 2006, with corporate objectives to:

a) carry out the stewardship of Dickinson Square ensuring public ownership, preservation and promotion of the Square as a unique industrial heritage site;

b) create a unique cultural space by providing opportunities for community participation in arts and heritage activities around the buildings of Dickinson Square;

c) educate and promote public awareness and appreciation of the historical significance of the Square through historical research, educational an cultural programming and interpretive displays; and

d) manage the Square’s buildings and open spaces for the benefit of the larger community of the City of Ottawa and beyond.

In 2007, DSHMI commissioned Canadian Cultural Resource Consultants Inc. (London, ON) in partnership with Goldsmith Borgal & Company, Architects Ltd (Toronto, ON) to prepare a concept plan/business plan to support a proposal by DSHMI for the City to acquire the RVCA’s Dickinson Square Properties and for DSHMI to operate and manage these building and Dickinson Square as a heritage cultural centre to provide opportunities and space for arts, heritage programming and community activities.

On 16 October 2007, DSHMI received the initial draft of the Business Plan from the consultant and forwarded a copy to the City on condition that the plan is considered a work-in-progress since DSHMI Board would also be reviewing the initial draft that same evening.

DSHMI held a public information meeting in the Manotick Arena on 18 October 2007 to provide an overview of the draft Business Plan and receive feedback from the public. A summary of the corporate and draft business plan information presented by DSHMI at that meeting is provided in Document 4 of this report.

3. City Initiatives in 2007

In early 2007, the City’s Comprehensive Asset Management Division (CAM) commissioned the firm of Temprano, Young and Ward Architects to undertake a building condition audit for the RVCA’s Dickinson Square properties using CAM’s standard terms of reference for the audit of properties having notable heritage characteristics or historical significance.

These properties were subjected to a non-intrusive examination of the principal building systems including interior and exterior architectural elements, mechanical and electrical systems and structural components.

The RVCA properties were found to be in fair to good condition and have been subject to a reasonable program of remediation and refit in the past.

Based on the building condition audit report, CAM has identified the cost for the capital remediation of the subject RVCA buildings over a fifteen year period to be $1.04M or roughly 70% of the current annual budget allocated for life-cycle renewal of the comprehensive heritage portfolio owned and operated by the City ($1.5M). If the costs are equalized on an annual basis over that term, the capital reinvestment requirements for the RVCA facilities would equate to 5% of the available heritage life-cycle budget currently available to RPAM. As a consequence any acquisition plan would need to consider not only the nominal operating costs for the subject properties, which it is presumed the RVCA could provide, but should reflect a nominal 5% increase ($75K/year) to the RPAM Heritage Life-Cycle capital program commencing in the year of acquisition.

In August 2007, the Real Estate Services Division (RESD) commissioned an independent real estate appraisal to establish the current market value of the RVCA’s Dickinson Square properties. The City’s appraisal report was received in September 2007. The RVCA also allowed RESD staff to review the independent real estate appraisal reports received by the RVCA for the Dickinson House, the Carriage Shed, the Ayer’s Building and the Weaver’s House properties. An appraisal report for Watson’s Mill could not be made available for review by RESD staff as the RVCA Board of Directors had not yet officially received the appraisal report for that property.

RESD then determined from a comparison of the two independent appraisals that the total current market value of the Dickinson House, the Carriage Shed, the Ayer’s Building and the Weaver’s House properties is consistent with that established by the RVCA’s real estate appraisal. The City’s independent real estate appraisal also indicates that the value of Watson’s Mill as a stand alone property is nominal given the perceived difficulty, and unlikely possibility in the near future, of changing the use from its current use an operating museum.

RESD also initiated an internal circulation of all City Branches, Agencies and Advisory Committees in August 2007 to identify any programming requirements the City currently has in place that could be located in any of the RVCA’s Dickinson Square properties and a source of funding for those programs.

As a result of the circulation process, Police Services indicated a potential program use. If the City acquires these buildings, Police Services might consider a relocation of the Community Police Station from its current location in leased premises at 1131 Clapp Lane (lease expires 31 October 2011 with right to vacate after Oct. 31, 2008 on 6 months notice). Police Services have indicated that the RVCA buildings would need significant improvements related to, at least, handicapped access, air conditioning, and changes to corridor widths to accommodate the Community Police Station use.

The Rideau Seniors Centre have been trying, for a couple of years, to find another location in Manotick and expressed interest in leasing/using space in the Ayer’s Building and have identified this as part of their Community Funding Financial submission to the City. This potential use of the Ayer’s Building has also been included as a revenue opportunity in DSHMI’s draft Business Plan.

During the property appraisal process, RESD staff noted that the RVCA has a license, at nominal cost, from Parks Canada for the rights to excess water spilled in west channel to allow Mill turbines to operate and that Watson’s Mill Manotick Inc. has restored and operates 3 of the original 6 water driven turbines to drive the Mill’s machinery. As a result, RESD has also contacted Energy Ottawa who, after subsequently touring the Mill with Watson’s Mill Inc. representatives in early October 2007, have indicated an interest in further exploring the potential and economic viability of generating electricity in this location if RESD can obtain further information from Parks Canada regarding water flows and ongoing water rights. RESD has recently contacted Parks Canada who have agreed to provide this information.

City staff also noted, as part of the due diligence work, that:

§ The property owned by the Estate of Dorothy Clapp at 1125 Clapp Lane, which property also abuts Bridge Street and Mill Street as a key entryway to Dickinson Square, was listed for sale at $699K;

§ The Manotick Village Plan, as set out in Volume 2c of the City’s Official Plan adopted under By-law 203-2003 City’s Official Plan, limits the proposed institutional uses and offices uses in the Historic Village East Sector to those under the existing zoning and provides for Council to examine the feasibility of relocating the RVCA offices and establishing a “Mill Quarter” based on commercial tourist/heritage type uses (accommodation, boutiques, galleries, craft and other specialty outlets, museums, restaurants and studios). Document 5 of this report provides further information on the Village Plan for Manotick.

At the 17 October 2007 meeting, staff agreed that a report should be prepared for consideration in November 2007, by the Agricultural and Rural Affairs Committee, the Corporate Services and Economic Development Committee and Council which outlines and evaluates DSHMI’s draft Business Plan and any other potential City option for the City acquiring the RVCA’s Dickinson Square properties on the basis of objectives as follows:

· The preservation and enhancement of the unique enclave of heritage buildings in the Village of Manotick’s Dickinson Square after the RVCA divests its properties in that location;

· The continued operation of Watson’s Mill as a “living museum” by Watson’s Mill Manotick Inc.;

· The establishment of a Mill Quarter as envisioned by the Village Plan for Manotick set out in the City’s Official Plan;

· The preservation of Dickinson Square by formalizing and maintaining it as an open space, primarily for public use, to reflect the heritage character of the Mill Quarter and provide enhanced opportunities for heritage and cultural events as envisioned by DSHMI;

· The provision of effective public controls with respect to ensuring the development and use of properties in the Mill Quarter are consistent with the above objectives; and

· The preservation and enhancement of the Dickinson Square buildings and the square and the establishment of the Mill Quarter are undertaken with no net impact on the City’s operating and capital budgets.

DOCUMENT 4

DICKINSON SQUARE HERITAGE MANAGEMENT INC.

(DSHMI)

PUBLIC MEETING INFORMATION

(Manotick Arena, Oct 18^th, 2007)

v DSHMI is working towards the creation of a unique Heritage Cultural Centre in the historic Village of Manotick

v The Heritage Cultural Centre would provide opportunities and space for Arts, Heritage programming and Community activities.

v DSHMI is a Coalition of community-based organizations who regularly use the Square:

· Kiwanis of Manotick

· Manotick BIA

· Manotick Horticultural Society

· Manotick Art Association

· Manotick Messenger

· Rideau Historical Society

· Rideau Seniors’ Centre

· Watson’s Mill Manotick Inc

DSHMI Mission

“To preserve and promote the unique heritage character of Dickinson Square for the benefit of the community and beyond.”

DSHMI Aims

To work towards:

· City purchase of the buildings

· Creation of Heritage Cultural Centre

· City of Ottawa Service Agreement

DSHMI Vision

Watson’s Mill

Remains as it is now, Ottawa’s only working industrial heritage site and only operating gristmill on Rideau Canal, now a World Heritage Site

Weaver’s House

Could be:

· 1st Floor - Relocated Mill Gift Shop expanded to new Square Gift Shop

· 2nd Floor - Heritage Cultural Centre Offices

Ayer’s Building

Could become the new home of the Rideau Seniors’ Centre

Dickinson House

Could have:

· 1st Floor - Social and economic interpretation and multi-purpose gallery

· 2nd Floor - Dickinson House Families interpretation, programming/meeting space

· 3rd Floor - Programming or Office

Carriage Shed

Could be reused as:

· 1st Floor - washrooms and programming - performing arts and group activities

· 2nd Floor - programming - children’s activities and meetings

· Possible future reconstruction of former wing for more programming space

Dickinson Square

Possible Uses:

· Dickinson Days

· Heritage gardens, Square interpretative plaques & connecting pathways

· Shakespeare in the Park

· Outdoor Market

· Heritage and Arts Camp

· Special events – Concerts, wedding, picnics

DSHMI Progress to Date

2006

· RVCA announces planned move to new headquarters

· Save Our Square Committee (SOS) created

· Public signs petition to Government of Ontario and Mayor Bob Chiarelli promises Dickinson Square will remain in public ownership

· Mayor Chiarelli and Steve Kanellakos, Deputy City Manager meet with DSHMI and commit to working with DSHMI to develop the Square

· Arts, Heritage and Culture Advisory Committee (AHCAC) passes motion supporting City purchase of Dickinson Square and DSHMI Management Contract

· DSHM incorporates (DSHMI) as Ontario charity

· RVCA and City sign debenture agreement and 18 month Option to Purchase begins with staff directed to report back to Council within 1 year

2007

· Strategic Planning Terms of Reference developed along with desired Catchment Area

· Interviews with individuals/groups in the Manotick and surrounding area & the Council of Heritage Organizations of Ottawa & the City undertakes a Building Audit

· DSHMI Board submits Interim Concept Plan to the City

· Based on this Plan, the City of Ottawa commits $40,000 as leverage for a CAHSP application for funding to develop DSHMI’s Concept Plan

· CAHSP grant denied. DSHMI meets with City of Ottawa to discuss options

· City staff:

§ commit to seeking approval from City Council for $40,000 for Business Plan

§ set timeline for submission of DSHMI Business Plan in order to be considered at Council

· Joint meeting of the boards of DSHMI and Watson’s Mill Manotick Inc. to explore future working relationships

· DSHMI hires consultants to assist in development of Business Plan

· City Council denies reallocation of funds for 10 cultural projects, including $40,000 for DSHMI Business Plan

· Public appeal for emergency funds for Business Plan

· DSHMI convinces RVCA to go for Ayers Bldg. designation

· DSHMI receives Draft Business Plan from consultants

Next Steps

· Receive community input at Open Forum

· Completion of Final Business Plan

· City staff report back to Corporate Services and Economic Development Committee on Nov. 20th and then onto Council on Nov. 28th

· DSHMI presents the Business Plan on Nov. 20th

§ Deputations from heritage organizations

· Council decision to purchase buildings considered during the 2008 budget process

· RVCA move to new HQ scheduled for December, 2007

· Creation of Dickinson Square Heritage Cultural Centre in 2008

DOCUMENT 5

EXTRACT

From

OFFICIAL PLAN VOLUME 2C

VILLAGE PLANS

FORMER TOWNSHIP OF RIDEAU OFFICIAL PLAN

MANOTICK (AMENDMENT 3)

3. The Historic Village

This Character Area encompasses the historic settlement of the Village of Manotick, including Watson's Mill. Together with the Main Street Character Area, it expresses the Village's fundamental character and its identity. The east sector of the Historic Village is a mixture of office, institutional, residential and retail uses. It includes the headquarters of the Rideau Valley Conservation Authority, boutiques, and a variety of other retail uses.

East Sector Uses

The Historic Village (east sector) shall be pedestrian oriented and may include such retail uses as specialty boutiques, galleries, restaurants, craft outlets, other tourism and entertainment facilities, and residential uses, including multiple family housing. Offices will be encouraged to locate in The Gaps Character Area.

Mixed Use

Developments within The Historic Village (east sector) may be used for both retail and residential purposes (i.e., two or more permitted uses may be physically integrated within a building, or separate buildings on the same lot).

Built Form - East Sector

Council shall ensure new development in The Historic Village Character Area (east sector) respects the existing scale, massing (e.g., placement on the site) and character typical of buildings in this area.

Public and Institutional Uses Limited

Public and institutional uses in The Historic Village Character Area (east sector) will be limited to those properties zoned for this purpose as of the date of approval by Council of this Official Plan. New public and institutional uses shall be encouraged to locate in The Gaps Character Area.

Parking

To reinforce the pedestrian orientation of the Area, its safety and convenience, the parking requirements for uses within The Historic Village Character Area (east sector) shall be minimal, existing on street parking shall be retained and, in the case of designated heritage properties no parking may be required.

“Mill Quarter"

Council shall examine the feasibility of developing a "Mill Quarter" around Watson's Mill, including the potential relocation of the offices of the Rideau Valley Conservation Authority, for commercial accommodation, boutiques, galleries, craft and other specialty outlets, museums, restaurants, and studios.