3. Sale of Properties – longfields subdivision phase 1

Vente de propriétés –– plan de lottissement lonGfields phase 1

COMMITTEE RECOMMENDATIONS

That Council :

1. Declare the properties municipally known as 159 Claridge Drive, shown hatched on Document “1” attached, and 3020 Woodroffe Avenue, shown as Parcel “A” on Document “3” attached, as surplus to the City’s needs; and

2. Approve the sale of the properties detailed in Recommendation 1, pursuant to Agreements of Purchase and Sale that have been received, as follows:

a) 159 Claridge Drive, shown as Block 302 on the Longfields draft subdivision plan containing an approximate area of 1.2048 hectares (2.97 acres) subject to final survey, to The Incorporated Synod of the Diocese of Ottawa, for the amount of $1,116,720 plus GST, if applicable.

b) 3020 Woodroffe Avenue, shown as the south half of Block 292 on the Longfields subdivision plan containing an area of approximately 1.2853 hectares (3.17 acres) subject to final survey, to the South Nepean Muslim Community (SNMC), for the amount of $1,051,191 plus GST, if applicable.

RECOMMANDATIONS DU COMITÉ

Que le Conseil :

1. déclare excédentaires aux besoins de la Ville les propriétés dont les adresses municipales sont le 159, promenade Claridge – partie hachurée sur le document 1 ci-joint – et le 3020, avenue Woodroffe – parcelle « A » du document 3 ci-joint; et

2. approuve la vente des propriétés décrites à la recommandation 1, conformément aux conventions d’achat et de vente reçues, comme suit :

a) le 159, promenade Claridge, le bloc 302 sur le plan de lotissement provisoire Longfields correspondant à une superficie approximative de 1,2048 hectare (2,97 acres), à confirmer par arpentage, à The Incorporated Synod of the Diocese of Ottawa, pour la somme de 1 116 720 $, TPS en sus s’il y a lieu; et

b) le 3020, avenue Woodroffe, la moitié sud du bloc 292 sur le plan de lotissement provisoire Longfields correspondant à une superficie approximative de 1,2853 hectare (3,17 acres), à confirmer par arpentage, à la South Nepean Muslim Community (SNMC), pour la somme de 1 051 191 $, TPS en sus s’il y a lieu.

DOCUMENTATION

1. City Manager’s report dated 11 May 2009 (ACS2008-CMR-REP-0030)

Report to/Rapport au:

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

11 May 2009/ le 11 mai 2009

Submitted by/Soumis par: Kent Kirkpatrick, City Manager / directeur municipal

Contact Person/Personne ressource : Gordon MacNair, Manager, Realty Services,

Real Estate Partnerships and Development Office / Gestionnaire, Services immobiliers, Bureau de développement et de partenariats immobiliers(613) 580-2424 x 21217, Gordon.MacNair@ottawa.ca

Barrhaven (3)

Ref N°: ACS2009-CMR-REP-0030

SUBJECT:	Sale of Properties – longfields subdivision phase 1

OBJET :	Vente de propriétés –– plan de lottissement lonGfields phase 1

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee recommend Council:

2. Approve the sale of the properties detailed in Recommendation 1, pursuant to Agreements of Purchase and Sale that have been received, as follows:

a. 159 Claridge Drive, shown as Block 302 on the Longfields draft subdivision plan containing an approximate area of 1.2048 hectares (2.97 acres) subject to final survey, to The Incorporated Synod of the Diocese of Ottawa, for the amount of $1,116,720 plus GST, if applicable.

b. 3020 Woodroffe Avenue, shown as the south half of Block 292 on the Longfields subdivision plan containing an area of approximately 1.2853 hectares (3.17 acres) subject to final survey, to the South Nepean Muslim Community (SNMC), for the amount of $1,051,191 plus GST, if applicable.

RECOMMANDATIONS DU RAPPORT

Que le Comité des services organisationnels et du développement économique recommande au Conseil :

1. De déclarer excédentaires aux besoins de la Ville les propriétés dont les adresses municipales sont le 159, promenade Claridge – partie hachurée sur le document 1 ci-joint – et le 3020, avenue Woodroffe – parcelle « A » du document 3 ci-joint; et

2. D’approuver la vente des propriétés décrites à la recommandation 1, conformément aux conventions d’achat et de vente reçues, comme suit :

a. le 159, promenade Claridge, le bloc 302 sur le plan de lotissement provisoire Longfields correspondant à une superficie approximative de 1,2048 hectare (2,97 acres), à confirmer par arpentage, à The Incorporated Synod of the Diocese of Ottawa, pour la somme de 1 116 720 $, TPS en sus s’il y a lieu; et

b. le 3020, avenue Woodroffe, la moitié sud du bloc 292 sur le plan de lotissement provisoire Longfields correspondant à une superficie approximative de 1,2853 hectare (3,17 acres), à confirmer par arpentage, à la South Nepean Muslim Community (SNMC), pour la somme de 1 051 191 $, TPS en sus s’il y a lieu.

BACKGROUND

The development of the subject properties is part of the City’s initiative for the creation of a development project, by a City controlled Land Development Corporation to implement a demonstration community, on a 50 hectare parcel of City-owned property in the Longfields area of Barrhaven that was originally part of a draft plan of subdivision initiated by the former City of Nepean.

On 10 October 2007, Council approved the establishment of the Community Lands Development Corporation (the “CLDC”) and approved proceeding with the development of the Longfields subdivision lands on a phased basis, subject to registration of a plan of subdivision, and on condition that a development agreement is executed prior to transfer of the lands from the City to the development corporation.

Staff undertook planning and engineering studies; participated in numerous open houses to consult with the community; prepared a draft plan of subdivision and made application for draft plan approval. The Longfields draft subdivision plan was approved by City Council on 11 September 2008 and draft plan approval came into full force and effect on 2 October 2008.

On 28 January 2009, Council, in considering a report on “Development Corporations for City Owned Lands” (ACS2008-COS-RPM-0063), approved recommendations that:

· the City proceed with the incorporation of the CLDC;

· upon incorporation of the CLDC, the City transfer its Longfields subdivision lands to the CLDC for it to take action to comply with the conditions for registration and enter into a subdivision agreement with the City; and

· the CLDC then undertake the sale of the lands on behalf of the City with all sales revenue accruing to the City.

At the same meeting, Council also approved the membership of the initial Board of Directors for the CLDC.

The application for incorporating the CLDC has been prepared by outside counsel for Legal Services and is now being circulated for signature by the initial Board members. Once all signatures have been obtained the application will be forwarded to the Ministry based on the “expedited application process”, which should result in the letters patent for the corporation being issued approximately seven (7) days after the application is received. Outside counsel is also preparing resolutions to be considered by the Board members at their first meeting in order to establish the initial by-laws for the corporation. It is anticipated that the CLDC will be incorporated by this June with the initial meeting of its Board likely occurring before the end of June.

The draft approved plan for the Longfields subdivision consists of four (4) neighbourhoods, as shown on the plan attached as Document “5”, with the property at 3020 Woodroffe being located in Neighbourhood 1 and the property at 159 Claridge being located in Neighbourhood 2.

The intention is to obtain registration of the plan of subdivision in phases, with Phase 1 consisting of the two institutional blocks at 159 Claridge and 3020 Woodroffe, the central park for neighbourhood 1, and lots for approximately 100 residential units, as shown on the plan attached as Document “6”. It is anticipated that the registration for Phase 1 will occur before the end of 2009 and in order to do this, the intention is to transfer control of the subdivision lands to the CLDC this summer.

A further report on the requirements to register Phase 1 of the subdivision and any associated requirements for transferring control of the lands from the City to the CLDC will be forwarded to the CLDC’s Board for consideration at its first meeting and then if required, to CSEDC and Council.

DISCUSSION

The sale of the subject properties are the first two blocks of land to be offered for sale in the Longfields subdivision and are municipally known as 159 Claridge Drive, shown as block 302 and 3020 Woodroffe Avenue shown as the south part of Block 292 on the draft subdivision plan.

The subject properties were advertised for sale in the City Page of The Citizen and Le Droit on 9 January 2009 and in the Community Newspapers. The properties were added to the list of properties for sale on the City website and a “For Sale” sign was erected on the properties for a period of 63 days, from 9 January 2009 to 12 March 2009.

A minimum asking price of $300,000 per acre was established for the properties based on the findings of an independent appraisal.

The two properties were advertised with special conditions to be complied with for acceptance of the offers, including the submission of a concept plan for a permitted institutional use. The concept plans were required to demonstrate a proposed development that is consistent with the urban design guidelines for this area and an obligation for the Purchaser to obtain site plan approval for a development that is consistent with the concept plan.

The agreements of purchase and sale in each case include conditions and timelines with respect to site plan approval and construction and also include a provision for the City to have the option to re-purchase in the event that the conditions of the agreement of purchase and sale are not met.

Three offers were received as follows:

159 Claridge Drive – block 302

Purchaser

Offer # 1

The South Nepean Muslim Community (SNMC)

Price

$1,051,191

($353,936 per acre)

Basic Terms

§ Deposit of $20,000 and concept plan submitted with offer.

Offer # 2

The Incorporated Synod of the Diocese of Ottawa

$1,116,720

($376,000 per acre)

§ Deposit of $20,000 and concept plan submitted with offer.

Offer # 2 received from The Incorporated Synod of the Diocese of Ottawa was retained as the preferred offer. The subject offer is considered fair and reasonable and is recommended for acceptance.

The zoning designation for this property is I1A – Institutional Zone, City of Ottawa Zoning By-law 250-2008, and permits a variety of institutional uses. The offer received from The Incorporated Synod of the Diocese of Ottawa included a concept plan (see Document “2”) for the construction of a one (1) storey church for the Barrhaven Anglican Lutheran Ministry, which development concept has been determined by staff to meet the submission requirements.

While not a submission requirement, this preferred offer also provided a letter of support from the abutting landowner, the Nepean Non-Profit Housing Corporation.

3020 Woodroffe Avenue – block 292

Purchaser

The South Nepean Muslim Community (SNMC)

Price

$1,051,191

($331,606 per acre)

Basic Terms

§ Deposit of $20,000 and concept plan submitted with offer.

Only one offer was received for this property, being that from the South Nepean Muslim Community (SNMC) in the amount of $1,810,341 ($321,552 per acre). The concept plan submitted with the offer showed a development on the south half of the site and no specific plan was included for the north half of the site. The submission requirements included an opportunity to submit an offer for a phased development on the condition that the concept plan illustrated the proposed use, location, massing, and site access for the building and timelines for all phases of the development. The SNMC offer received did not meet these submission requirements.

As outlined previously in this report, the SNMC also submitted an offer for the site at 159 Claridge Drive which offer was determined not to be the preferred one. Given that no other offer was received for the 3020 Woodroffe property, staff indicated to the SNMC that staff would be prepared to recommend selling the south half of the site to the SNMC for the same amount that it offered for the 159 Claridge property.

Upon further negotiations, the offer received from SNMC was revised to include only the south half of the site at a price of $1,051,191 ($331,606 per acre).

An ongoing interest has been expressed by several institutional users, including the SNMC, for the north half of the site; however, staff has indicated to these parties that it will take no action toward selling this parcel until Council has dealt with the recommendations of this report.

The zoning designation for this property is I1A and R4A [1638] – Institutional Zone and Low-Rise and Stacked Dwelling zone, City of Ottawa Zoning By-law 250-2008 and permits a variety of institutional uses and low-density residential uses. When the zoning was approved for this site, the intent was to promote it as institutional land and the residential zoning was included in the event there was no interest for institutional land. The property was advertised for sale including a condition to submit an offer with a concept plan showing a proposal for an institutional use as a main use and an opportunity to include residential uses as accessory to the main use.

The offer received from the SNMC includes a concept plan (see Document “4”) for the construction of a two (2) storey Mosque and Community Centre building with no residential component which development concept has been determined by staff to meet the submission requirements.

As a result, the offer from the SNMC for Parcel A, as shown on Schedule “3” of this report, is considered fair and reasonable and is recommended for acceptance.

ENVIRONMENTAL IMPLICATIONS

The subject properties do not contain natural environment lands designated as significant in the Official Plan or areas identified in the Urban Natural Areas Environmental Evaluation Study (March 2006). No significant implications relative to these two parcels have been identified in the Environmental Impact Statement completed by Muncaster Environmental Planning Inc. Further supporting data will be provided during the process to register the plan of subdivision and also during the site plan approval stage for each site and any environmental implications will be addressed through those approval processes.

CONSULTATION

Since the subject parcels are part of a plan of subdivision that received draft approval in September 2008, through the subdivision approval process, all City Departments including the Affordable Housing Division, Infrastructure Services and Community Sustainability and City Operations, were circulated to determine if there were any requirements for a City mandated program. All property requirements identified by City Departments are being addressed within the subdivision. The Environmental Sustainability Division of the Infrastructure Services and Community Sustainability 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.

As part of the circulation for subdivision approval, there was a request by the elementary school to the south of 3020 Woodroffe Avenue to provide a pedestrian path across the property to link up to the future residential development to the west and north of the site and a condition to that effect was included in the offers of sale document. The concept plan received for 3020 Woodroffe Avenue shows a pedestrian path along the westerly boundary of the property.

The utility companies were circulated as part of the subdivision approval process and no interest was expressed in the retention of an easement.

The following Advisory Committees were circulated as part of the subdivision approval process.

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 these properties.

The Ward Councillor is aware of the sale of these properties and supports staff’s recommendation. No additional community consultation was undertaken with respect to their disposal. Extensive community consultation was undertaken as part of the subdivision approval process and the subject property was advertised for sale in the City Page of The Citizen and Le Droit on 9 January 2009 and in the Community Newspaper. The Ward Councillor concurs with this process.

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 Affordable Housing Division 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.

As first stage of development of a residential subdivision in this area by the former City of Nepean, the Nepean Non-Profit Housing Corporation has developed 168 affordable housing units, with 107 of the units available on a rent geared to income basis (RGI units), on lands provided by Nepean. Given the amount of existing and proposed development on these former City of Nepean lands, the current Housing First Policy would require an additional 266 affordable housing units to be built with 67 of the units being RGI units.

Notwithstanding that the subject properties are being sold for institutional purposes and, therefore, do not meet the affordable housing criteria outlined in the Housing First Policy, staff are working with the non-profit sector and the City’s Affordable Housing Division to ensure that additional affordable housing can be provided in the subdivision within Neighbourhood 4 near the new Longfields transit station to meet or exceed the Housing First Policy requirements.

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 $2,167,911 to the Corporation and will be credited to 991018 Service City Lands – Longfields Subdivision.

SUPPORTING DOCUMENTATION

Sketch and concept plans for 159 Claridge Drive attached as Documents “1” and “2”.

Sketch and concept plans for 3020 Woodroffe Avenue attached as Documents “3” and “4”

Sketch showing Longfields Subdivision Neighbourhoods attached as Document “5”.

Sketch showing Phase 1 for Registering Plan of Subdivision attached as Document “6”.

DISPOSITION

Following Council’s approval, the Real Estate Partnerships and Development Office and the Legal Services Branches will finalize the sale transactions in accordance with the conditions of the agreements of purchase and sale.

A report concerning the registration of the Phase 1 subdivision lands and the related transfer of control of the lands from the City to the CLDC will be prepared by the Real Estate Partnerships and Development Office for consideration of the CLDC Board at its initial meeting.