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1. SALE OF LAND –
3249 CONROY ROAD VENTE
DE TERRAIN – 3249 RUE CONROY |
COMMITTEE RECOMMENDATIONS
That Council:
1.
Declare a parcel of vacant land shown as Parcels
C, D and E on Document 1 attached, containing an area of approximately 0.74 ha,
described as part of Lot 3 Concession 5 (RF), geographic Township of Gloucester
as surplus to the City’s needs;
2.
Approve the sale of the land outlined in
Recommendation 1, subject to any easements that may be required, to Claridge
Land Holdings Inc. In Trust for $1,402,222.00 plus HST, pursuant to an
Agreement of Purchase and Sale that has been received.
RECOMMANDATIONS DU
COMITÉ
Que le Conseil :
1.
déclare une parcelle de terrain vague, illustrée sous les parcelles C, D
et E dans le document 1 ci-joint, d’une superficie de près de
7 403,9 m2, décrite comme faisant partie du lot 3 de la
concession 5 (RF), dans le canton géographique de Gloucester, comme
excédentaire aux besoins de la Ville;
2.
approuve la vente du terrain dont il est question dans la recommandation
1, sous réserve des servitudes requises, à la société Claridge Land Holdings
Inc. en fiducie pour 1 402 222 $, TVH en sus, en vertu d’une
Entente d’achat et de vente qui a été reçue.
DOCUMENTATION
1. City Manager’s report dated 20
September 2010 (ACS2010-CMR-REP-0047).
Report to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services
organisationnels et du développement économique
and Council / et au Conseil
20 September 2010 / le 20 septembre 2010
Submitted by/Soumis par : Kent
Kirkpatrick, City Manager/Directeur municipal
Contact
Person/Personne ressource : Gordon MacNair, Director
Real
Estate Partnerships and Development Office/ Directeur, Partenariats et Développement en
immobilier
(613)
580-2424 x 21217, Gordon.MacNair@ottawa.ca
SUBJECT:
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OBJET :
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REPORT RECOMMENDATIONS
That the Corporate Services
and Economic Development Committee recommend that Council:
1. Declare a
parcel of vacant land shown as Parcels C, D and E on Document 1 attached,
containing an area of approximately 0.74 ha, described as part of Lot 3 Concession
5 (RF), geographic Township of Gloucester as surplus to the City’s needs;
2. Approve the
sale of the land outlined in Recommendation 1, subject to any easements that
may be required, to Claridge Land Holdings Inc. In Trust for $1,402,222.00 plus
HST, pursuant to an Agreement of Purchase and Sale that has been received.
RECOMMANDATIONS DU RAPPORT
Que le
Comité des services organisationnels et du développement économique recommande
au Conseil :
1. de déclarer une parcelle de terrain
vague, illustrée sous les parcelles C, D et E dans le document 1 ci-joint,
d’une superficie de près de 7 403,9 m2, décrite comme
faisant partie du lot 3 de la concession 5 (RF), dans le canton géographique de
Gloucester, comme excédentaire aux besoins de la Ville;
2. d’approuver la vente du
terrain dont il est question dans la recommandation 1, sous réserve des
servitudes requises, à la société Claridge Land Holdings Inc. en fiducie pour
1 402 222 $, TVH en sus, en vertu d’une Entente d’achat et de
vente qui a été reçue.
BACKGROUND
The subject property is a 0.74 ha
(1.83 ac) parcel of vacant land located in the southeast corner of the
intersection of Conroy and Johnston Roads, in the City of Ottawa. In 1977 the former City of Ottawa purchased
the subject property together with other lands from Albion Road Estates to
fulfill in part a 20% social housing commitment within the Greenboro
subdivision. The City then sold the
majority of the land it acquired from Albion Road Estates, with a view to it
being developed with affordable housing.
However, the City retained approximately 1.2 ha (3 ac) at the corner of
Conroy and Johnston Roads. The southerly
half of the site was developed with a fire station, while the subject site was
retained for future sale. At that time, it
was thought that sale proceeds could be maximized if the property was not sold
until such time as the neighbourhood had undergone a significant level of
development.
In 2001 it was determined that market conditions were favourable, and the subject property was offered for sale to the general public. In response to that offering, Petro-Canada submitted an agreement of purchase and sale which was forwarded to Council for approval. However, Corporate Services and Economic Development Committee determined that Petro-Canada’s intent to develop the site with a gas bar, convenience store and car wash was not an appropriate use at that location. The matter was then subject to various motions and dispositions, but was ultimately referred to Planning and Development Committee where staff was directed to conduct a review of the property’s land use for residential development.
On 25 January 2006 Council approved the East Conroy Land Use Study and the recommendation contained in Planning and Environment Report 41 Item 8 requiring the insertion of a clause in the agreement of purchase and sale committing any purchaser of 3249 Conroy Road to make application to rezone the subject from IL F(1.0) to a CG exception zone, and concurrently submit an application for Site Plan Control approval.
With the implementation of the City’s new Comprehensive Zoning By-law 2008-250 it was determined that the zoning amendment, which Council had required be done by the purchaser, could best be done by staff. On 14 March 2010 Planning and Environment Committee approved an anomaly report, which amended the subject’s zoning from IL F(1.0) to GM[1738] H(13.5).
DISCUSSION
A circulation was sent to all City Departments and external agencies to determine if there was any requirement for the property. No City Department or external agency expressed any interest in this property.
The property was listed for sale on the City website and “For Sale” signs were erected on the property from 20 July 2010 to 16 August 2010. The property was advertised for sale in the City Page of The Ottawa Citizen and Le Droit, at an asking price of $1,300,000. Information data sheets were also available upon request. In response to this offering, five Offers to Purchase were received as follows:
OFFER 1 $1,500,000 SUBJECT TO PURCHASER CONDITIONS
OFFER 2 $1,402,222 UNCONDITIONAL
OFFER 3 $1,236,000 SUBJECT TO PURCHASER CONDITION
OFFER 4 $1,150,000 SUBJECT TO PURCHASER CONDITIONS
OFFER 5 $750,000 SUBJECT TO PURCHASER CONDITIONS
Of the five offers received only OFFERS 1 and 2 exceeded the asking
price of $1,300,000. Accordingly, these
were given most consideration. OFFERS 3,
4 and 5 did not meet the asking price, and each was subject to one or more purchaser
conditions. These three offers were therefore
given lesser consideration.
OFFER 1 at $1,500,000 was subject to a series of Riders and Purchaser’s
Conditions which, in staff’s opinion, amounted to a significant departure from
the specific criteria set by the City in the information package that was sent
to all potential purchasers. These
revisions and conditions were judged to render the offer non-compliant with the
City’s stated criteria. For this reason,
OFFER 2, which exceeded the City’s asking price, and which was not subject to
any purchaser condition, was judged to be the superior offer and in the City’s
best interest to accept.
The recommended offer is not conditional upon a rezoning of the
property, as that has already been completed by staff. However, the offer is subject to the
Purchaser submitting an application for Site Plan Approval not later than 90
days after Council’s approval of the Offer to Purchase Agreement. It is further conditional upon the Purchaser
obtaining Site Plan Approval prior to closing the transaction, which shall not
be later than 270 days after Council’s approval of the Offer to Purchase
Agreement.
After a comparative analysis of the five offers, it is hereby
recommended that Committee and Council approve the sale of 3249 Conroy Road to
Claridge Land Holdings Inc., In Trust, for $1,402,222 plus HST, pursuant to the
Agreement of Purchase and Sale.
ENVIRONMENTAL IMPLICATIONS
The Land Use and Natural Systems unit does not object to the proposed sale.
The subject property does not contain nor lie within 120 m of any known feature of the City’s natural heritage system. The nearest natural heritage feature is Urban Natural Area 151 – Conroy Swamp/Greenboro Turtlehead Nature Area, which lies approximately 175 m northwest, across the intersection of Conroy Road and Johnston Road.
The City’s aerial photography suggests that a portion of the property is wooded. Under Section 4.7.2 of the Official Plan, a Tree Conservation Report will be required to support the site plan application. The property lies within the urban boundary and is subject to the Urban Tree Conservation By-law. Because the property is less than 1 ha in size, removal of any tree with a diameter at breast height of 50 cm or more would require a permit under the distinctive tree provisions of the By-law. Any butternut tree on or adjacent to the property would be subject to protection under the regulations of the Endangered Species Act 2007. Any distinctive trees or butternuts should be addressed in the Tree Conservation Report, in accordance with the guidelines established under the City’s By-law.
Aerial photography does not suggest that the property contains any other significant features of the natural heritage system or that it performs any other significant ecological functions.
The subject property is located on the opposite side of Conroy Road from the designated multi-use pathway and is not identified as part of the City’s Greenspace Network in the Greenspace Master Plan.
HOUSING FIRST POLICY
The Official Plan policy directs that the City make land available for affordable housing and give priority for the sale or lease of surplus City-owned property for this purpose.
The Housing First Policy, approved by Council on 13 July 2005, establishes priority consideration to the Housing Branch in the identification of potentially surplus City-owned property to be used in achieving the City’s affordable housing program targets. The policy also requires that the Official Plan target of 25% affordable housing, be met on any City-owned property sold for residential development. Where viable residential properties are disposed of without a condition requiring an affordable housing component, 25% of the proceeds from the sale are to be credited to a housing fund to be used for the development of affordable housing elsewhere in the City.
The Housing Branch typically requires
properties that are suitable for multi-unit residential development. However, since last year, community
organizations have identified a need for single family lots for affordable
housing and the Housing Branch has been working cooperatively with REPDO to
address these needs. At the time this
property was circulated, Housing Branch did not have an identified community
need for single family residential lots.
The subject is a viable property with housing being one of several permitted uses. Since the property is being sold without a condition requiring an affordable housing component, in accordance with the Housing First policy, 25% of the proceeds from the sale will be credited to a housing fund to be used for the development of affordable housing elsewhere in the City.
RURAL IMPLICATIONS
N/A
CONSULTATION
In accordance with policies approved by City Council on 14 November 2001, the availability of the property was circulated to all client City Departments, including the Housing Branch, Public Works and Services and Planning and Growth Management, to determine if the property should be retained for a City mandated program. The Land Use and Natural Systems Unit of the Planning and Growth Management Department were consulted with respect to the Greenspace Master Plan and natural heritage system, and their comments are indicated under the Environmental Implications section of this report. Neither the Housing Branch nor any other City Department expressed interest in retaining the property. As this property is viable, a circulation to external agencies was undertaken and there was no interest in the property.
The utility companies were also circulated and there is no plant requiring easement protection in the parcel being sold.
The following Advisory Committees have been circulated:
Local Architectural Conservation Advisory Committee (LACAC)
Ottawa Forests and Greenspace Advisory Committee (OFGAC)
Environmental Advisory Committee (EAC)
Parks and Recreation Advisory Committee (PRAC)
Roads and Cycling Advisory Committee (RCAC)
Rural Issues Advisory Committee (RIAC)
Pedestrian and Transit Advisory Committee (PTAC)
Public Works and Services indicated easement requirements for such items as the 914 mm sanitary sewer which crosses the site, and underground street lighting plant along the property’s Conroy Road frontage. There was also a requirement for Conroy Road widening and a daylighting triangle at the corner of Johnston and Conroy. These requirements have been identified on the reference plan and will be accommodated in the sale of the land, along with the need to protect several Common Hackberry trees situated on the property.
The ward Councillor was notified and provided no objections to the disposal of the subject property.
COMMENTS BY THE WARD COUNCILLOR(S)
Councillor Deans - I
am aware of the sale.
LEGAL/RISK MANAGEMENT IMPLICATIONS
There are no legal/risk management impediments to implementing any of the Recommendations arising from this Report.
CITY STRATEGIC PLAN
N/A
TECHNICAL IMPLICATIONS
N/A
FINANCIAL IMPLICATIONS
This transaction represents revenue of $1,402,222 to the Corporation with $1,051,666 to be credited to the City’s Sale of Surplus Land Account and $350,556 to be credited to the Housing Reserve Fund.
SUPPORTING DOCUMENTATION
Document 1 - Sketch showing the subject property as Parcels C, D and E.
DISPOSITION
Following Council’s approval of the sale of the property, Planning and Growth Management Department will consider an application by Claridge Land Holdings Inc., In Trust, for Site Plan Approval.
Following Site Plan Approval, Realty Services and Legal Services Branches will finalize the transaction of purchase and sale.
DOCUMENT 1
