DOCUMENT 1
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7. SALE OF LAND – 173 SHERWOOD
DRIVE VENTE DE TERRAIN – 173 PROMENADE SHERWOOD |
That Council:
1. Declare
a parcel of vacant land shown hatched on Document 1 attached, containing an
area of approximately 382.6 m2, described as part of Lots 73, 74 and
75, Plan 114306 and part of Kenilworth Avenue closed by Judges Order, as
surplus to the City’s needs; and
2. Waive City policy pertaining to the public marketing of all viable properties and approve the sale of the land outlined in Recommendation 1, subject to any easements that may be required, to Linda Robinson and Gilles de la Salle for $150,000 plus GST, pursuant to an Agreement of Purchase and Sale that has been received.
RecommandationS du Comité
Que le Conseil:
1.
déclare
une parcelle de terrain vacant indiqué en hachurés sur le Document 1 ci-joint,
comprenant une surface d’environ 382,6 m2, décrit comme une partie des lots 73, 74 et 75, Plan
114306, et une partie de l’avenue Kenilworth fermée sur ordre du juge,
excédentaire aux besoins de la Ville; et
2. renonce à l’application de la politique de la
Ville prévoyant la commercialisation de toutes les parcelles viables et
d’approuver la vente du terrain mentionné dans la Recommandation 1, sous
réserve de toute servitude qui pourrait être requise, à Linda Robinson et
Gilles de la Salle pour la somme de 150 000 $ plus TPS, conformément à la
convention d’achat-vente reçue.
DOCUMENTATION
1. City
Manager’s report dated 24 August 2009 (ACS2009-CMR-REP-0041)
Corporate Services and
Economic Development Committee
Comité des services organisationnels et du développement économique
24 August 2009 / le 24 aoüt 20099
Submitted by/Soumis par: Kent Kirkpatrick, City Manager / directeur municipal
Contact Person/Personne ressource : Gordon MacNair,
Director, Real Estate Partnerships and Development Office/ directeur, Bureau de
développement et de partenariats immopbiliers
(613)
580-2424 x 21217, Gordon.MacNair@ottawa.ca
SUBJECT:
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OBJET :
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That the Corporate Services
and Economic Development Committee recommend that Council:
1.
Declare a parcel of vacant land shown hatched on
Document 1 attached, containing an area of approximately 382.6 m2,
described as part of Lots 73, 74 and 75, Plan 114306 and part of Kenilworth
Avenue closed by Judges Order, as surplus to the City’s needs;
2.
Waive City policy pertaining to the public marketing of
all viable properties and approve the sale of the land outlined in
Recommendation 1, subject to any easements that may be required, to Linda
Robinson and Gilles de la Salle for $150,000 plus GST, pursuant to an Agreement
of Purchase and Sale that has been received.
Que le Comité des services organisationnels et
du développement économique recommande au Conseil :
1.
de
déclarer une parcelle de terrain vacant indiqué en hachurés sur le Document 1
ci-joint, comprenant une surface d’environ 382,6 m2, décrit comme une partie des lots 73, 74 et 75, Plan
114306, et une partie de l’avenue Kenilworth fermée sur ordre du juge,
excédentaire aux besoins de la Ville;
2.
de
renoncer à l’application de la politique de la Ville prévoyant la
commercialisation de toutes les parcelles viables et d’approuver la vente du
terrain mentionné dans la Recommandation 1, sous réserve de toute servitude qui
pourrait être requise, à Linda Robinson et Gilles de la Salle pour la somme de
150 000 $ plus TPS, conformément à la convention d’achat-vente reçue.
The subject property is a 382.6 m2 parcel of vacant land situated in the northwest corner of Sherwood Drive and Irving Place, as shown on the attached Document 1. This property was essentially created in 1926 when Sherwood Drive was constructed diagonally across the existing neighbourhood. As shown on Document 1, a portion of the property consisted of Kenilworth Avenue, which was closed by Judges Order in 1946. At that time, title to the northerly half of closed Kenilworth Avenue vested to the abutting owner to the north. Title to the southerly half remained with the former City of Ottawa, and was amalgamated with the small triangular parcel to the south of that, which had previously been acquired by the City. Although owned by the City of Ottawa, as a result of the subject’s location and configuration it has basically become the front yard for the abutting property to the north and has been improved with the abutting owner’s driveway and landscaping.
The subject property is situated in an R1QQ-Residential First Density Zone, and despite its small size and irregular configuration, it meets minimum requirements of the zone to permit development. Development of a single family dwelling on this site would not however fit into the pattern of development of the area and it is likely that variances would be required for yards to locate a house on the property given its shape.
In accordance with the City’s Surplus Property Disposal By-law, properties meeting minimum requirements of the zone to permit development are considered viable and must be advertised for sale to the general public. However, as a result of the property’s location in relation to the abutting property, and in consideration to both the character of the neighbourhood and the nature of surrounding development, it was determined that it would not be appropriate to sell this property to anyone other than the abutting owner without first giving that abutting owner the first opportunity to purchase. Although it was determined that a direct sale to the abutting owner was the preferred course of action, since the property met minimum requirements of the zone, it was further determined the purchase price would be based on the market value of a viable building lot.
DISCUSSION
Recognizing that the typical abutting owner might have difficulty rationalizing such a purchase, the property was appraised under two scenarios. The first scenario was to value the property as a viable building lot and the second scenario was to value the property in contribution to the abutting property. That is, how much value would the subject add to the abutting property by reason of it contributing added site area.
An appraisal of the subject property as a viable building lot estimated its value to be $230,000. A second appraisal of the subject property estimated its value in contribution to the abutting property to be $150,000.
In negotiating a settlement, the abutting owners were given three options as follows:
· purchase the subject property outright for $230,000;
· lease the property for a five-year term with a purchase at the end of the term at the subject’s then market value;
· purchase the subject property for $150,000 subject to a covenant being registered on title, which would require that in the event the purchasers were to sever their property or re-develop their property with more than one residential dwelling, the purchasers would pay to the City the market value of the subject property at the time of severance or re-development, less the $150,000 already paid.
An agreement was received from the abutting owners to purchase the subject property for $150,000, subject to a covenant being registered on title and subject to any easements that may be required.
This settlement is considered to be fair and reasonable and in the City’s best interest.
There are no identified
natural environment implications associated with the sale of this property.
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 Affordable Housing Division, Infrastructure Services and
Community Sustainability and City Operations, to determine if the parcel should
be retained for a City mandated program.
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. Neither the Affordable Housing
Division nor any City Department expressed interest in retaining the property.
The utility companies were also circulated and no requirements were indicated.
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)
Pedestrian and Transit Advisory Committee (PTAC)
Rural Issues Advisory Committee (RIAC)
No concerns were expressed with respect to the sale of the subject property to the abutting owner.
The ward Councillor was made aware of the intent to dispose of the subject property through circulation process and by subsequent notification, and is in agreement that no further community consultation is required.
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.
The subject property is a viable property and therefore meets the affordable housing criteria outlined in the Housing First Policy.
There are no legal/risk management impediments to
implementing any of the Recommendations arising from this report.
Revenues received by the Corporation for the sale of this property will be split, with 75% of the monies credited to the City’s Sale of Surplus Land Account and the balance credited to the Housing Reserve Fund, pursuant to the Housing First Policy.
Attached as Document 1 is a sketch showing the surplus property.
Following approval, Realty Services and Legal Services will finalize the Agreement of Purchase and Sale and Legal Services will complete the sale transaction.