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2. WEST TRANSITWAY EXTENSION – TRANSPORTATION
CORRIDOR-SHARING AGREEMENT – MINISTRY OF TRANSPORTATION PROLONGEMENT DU TRANSITWAY OUEST – ACCORD
D’UTILISATION EN COMMUN DU COULOIR DE TRANSPORT – MINISTÈRE DES TRANSPORTS |
COMMITTEE RECOMMENDATION
That Council delegate approval to the City Manager to negotiate, approve and execute a Transportation Corridor-Sharing Agreement with the Ministry of Transportation, based on principles outlined in this report, including a nominal consideration, for the use of lands owned by the Ministry of Transportation consisting of 50,080m2 (12.37 acres) shown hatched on Document “1” and as Parcels A, B and C on Document “2”, attached hereto, required for the construction of Phases 1A and 1B of the West Transitway Extension from Pinecrest Road westerly to Holly Acres Road.
Recommandation du Comité
DOCUMENTATION
1. City
Manager’s report dated 11
February 2010 (ACS2010-CMR-REP-0007)
Transit Committee
Comité du transport en commun
and Council / et au Conseil
11 February 2010 / le 11 février 2010
Submitted by/Soumis par : Kent Kirkpatrick,
City Manager/Directeur des services municipaux
Contact
Person/Personne ressource : Gordon MacNair, Director, Real Estate Partnerships
and Development Office / Directeur, Bureau de développement et de partenariats
immobiliers
(613) 580-2424 x
21217, Gordon.MacNair@ottawa.ca
REPORT RECOMMENDATIONS
That the Transit Committee recommend Council delegate approval to the City Manager to negotiate, approve and execute a Transportation Corridor-Sharing Agreement with the Ministry of Transportation, based on principles outlined in this report, including a nominal consideration, for the use of lands owned by the Ministry of Transportation consisting of 50,080m2 (12.37 acres) shown hatched on Document “1” and as Parcels A, B and C on Document “2”, attached hereto, required for the construction of Phases 1A and 1B of the West Transitway Extension from Pinecrest Road westerly to Holly Acres Road.
RECOMMANDATION DU
RAPPORT
BACKGROUND
The West Transitway Extension resulted from an overall Environmental Assessment Report completed in March 1994 and approved by the Ministry of Environment on 4 April 1996. This report dealt with a 3.7 kilometre extension of the Transitway System commencing at the Queensway Transitway Station at Woodroffe Avenue and proceeding westerly to Holly Acres Road. In 1998 and under their approval system, the Regional Municipality of Ottawa-Carleton (RMOC) approved Phase 1A, which involved the construction of the Bayshore Transit Station situated between Richmond Road and Holly Acres Road. In the 2006 budget, City of Ottawa (City) Council approved funding to update the 1998 design assignments for Phase 1B of the West Transitway Extension from the Pinecrest Road interchange westerly to the Bayshore Transit Station and subsequently provided approval to call tenders for its construction as part of 2007 capital works program. As part of the requirements for Phases 1A and 1B, it is necessary to obtain property from the Ministry of Transportation (MTO) more particularly shown hatched on Document “1” and as Parcels A, B, and C on Document “2”, attached hereto.
DISCUSSIONS
The subject properties are part of the MTO's
controlled-access Highway 417 from the Pinecrest Road interchange westerly to
the Holly Acres Road interchange. As
part of the proposal to construct the West Transitway Extension, it is
necessary to acquire the subject properties containing an area of 50,080m2
(12.37 acres) shown hatched on Document “1” and as Parcels A, B and C on Document “2”.
The City’s “Corporate Policy-Acquistion of Real Property” requires that the City pay market value for the acquisition of land for such projects. The MTO had indicated that although their lands are dedicated as public road in the provincial system, it could declare the lands under Documents 1 and 2, surplus to their needs.
Negotiations commenced with the MTO in 1998 by the initiation of the appraisal process to estimate market value of the lands required for Phase 1A (construction of the Bayshore Transit Station – Document 1). Compensation was agreed upon on the basis of an appraisal report completed at that time however, the agreement process was never finalized. Construction of this Phase took place in 2000 as the MTO issued an encroachment permit allowing the work to proceed. This outstanding matter forms part of this report.
Negotiations for Phase 1B (Document 2), commenced in 2006 with the City requesting that the MTO transfer title to the City for its requirements. However, since the parties were unable to reach a monetary settlement by the time construction scheduling took place, the MTO granted an encroachment permit so that construction could proceed. Construction is now completed and Phases 1A and 1B are open for operation.
A resolution to the appraisal process for the lands
has not been forthcoming due to differences in fundamental appraisal principles. The MTO estimates market value of the
requirements at approximately $4M while the City estimates the market value at
approximately $2.6M. Both parties have
remained steadfast in their positions since August 2007.
The MTO developed its policy of obtaining market value for lands dedicated as public road to address compensation for the loss of an asset. However, the construction of a mass transitway system and the movement of vehicular traffic are a benefit to the future movement of traffic along any provincially-owned and controlled-access highway serving the same vehicular traffic movement. Accordingly, the City’s transitway system benefits the MTO. As such, and due to the fact that the MTO has just completed a redesign of this portion of Highway 417, the MTO’s senior management is receptive to alternative Tranportation Corridor-Sharing options in this specific circumstance.
This alternative option would permit the City to construct and maintain its infrastructure on the MTO’s public road under a Transportation Corridor-Sharing process, and this is not without precedent. Examples in the Ottawa area and along Highway 417 are:
- the transitway structure/underpass on Lees Avenue at the Nicholas Street interchange;
- the transitway structure/underpasses at Highway 417 between Alta Vista Drive and St. Laurent Boulevard; and
- the Queensway Transitway Station at Woodroffe Avenue.
City staff are recommending that Council delegate approval to the City Manager to negotiate, approve and execute a Transportation Corridor-Sharing Agreement with the Ministry of Transportation based on principles outlined in this report, thereby allowing the City and the MTO staff to work together to develop an appropriate agreement that will satisfy both parties. Should Council approve the principles, the intent is to apply this concept in similar situations such as the next phase of this project.
The agreement will be developed by the MTO’s Legal Services Branch, involving full consultation with the City’s Legal Services Branch and the Real Estate Partnerships and Development Office, and will address and define all areas of mutual concern including (but not limited to):
1. Land/Corridor:
- the term of the agreement, including cancellation / termination provisions
- appropriate compensation in the event the MTO requires the City to remove / relocate infrastructure in the future
- protection to the City in the event of the MTO’s privatization of Highway 417
- protection to the City in the event of a change in the City’s mass transportation use
2. Construction:
- shared responsibility for construction costs
- approval of contract drawings
- encroachment/building/land use/lane closure permits
- letters of Credit
3. Post Construction Maintenance:
- areas of responsibility for maintenance of infrastructure, winter maintenance
- appropriate protocols to address responsibility for Emergency Management
- process for dealing with conflict, including mediation processes
- appropriate liability and indemnification protection for both parties
- responsibility for damage to property or infrastructure of either party
ENVIRONMENTAL IMPLICATIONS
The City’s requirements from the MTO have been reviewed through the
Historical Land Use Inventory and no environmental concerns were indicated.
CONSULTATION
Public consultation of the City’s requirements for this project was part of
the Municipal Class Environmental Assessment process and included open houses.
OC Transpo, Legal and Construction Services – Development Division have been consulted regarding the proposed Transportation Corridor-Sharing Agreement.
The Ward Councillor has been made aware of the property requirements and
the proposed Transportation Corridor-Sharing Agreement.
LEGAL/RISK MANAGEMENT IMPLICATIONS:
There are no legal/risk management impediments to the implementation of the recommendation in this report. The risk which arises from constructing the Transitway on lands not owned by the City, will be dealt with in the Transportation Corridor-Sharing Agreement by requiring that appropriate compensation or mitigation be negotiated with the City should the MTO at some future time require a relocation of the Transitway, a change of use, or a sale of Highway 417. In addition, past experience with shared transportation corridors suggests that the City's risks of relocation or removal are minimal.
FINANCIAL IMPLICATIONS
The
Transportation Corridor-Sharing Agreements with the MTO will negate
payment of market value for the City’s requirements.
SUPPORTING DOCUMENTATION
Attached, as Documents “1” and “2” are property sketches showing the City’s
requirements from the MTO’s - Highway 417.
DISPOSITION
Following Council’s approval, Real Estate Partnerships and Development Office and Legal Services Branch will finalize the Transportation Corridor-Sharing Agreement.
DOCUMENT “1”
DOCUMENT “2”
