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HomeMy WebLinkAboutCAO-11-007 - Sale of Chandler Drive properties1 I~IT(~HEI~TE~,. Staff Report CA~sO~~e www.kitche~terca REPORT TO: Committee of the Whole DATE OF MEETING: May 9, 2011 SUBMITTED BY: Hans Gross, Director of Asset Management PREPARED BY: Rob Morgan, Capital Investment Advisor, x2734 WARD(S) INVOLVED: 6 DATE OF REPORT: April 20, 2011 REPORT NO.: CAO-11-007 SUBJECT: SALE OF CHANDLER DRIVE PROPERTIES RECOMMENDATION: "That a portion of the lands located on Chandler Drive, in the City of Kitchener, owned by the Corporation of the City of Kitchener, lying between Chandler Drive and Conestoga Parkway, shown as 82 and 176 Chandler Drive on the map attached to Report CAO-11-007, the triangular parcel of land located on the south side of Chandler Drive shown as 2.611 ac. approximately on said map, and the portion of Chandler Drive bordering any portion of these lands, all to be further described on a Reference Plan, be sold to the Regional Municipality of Waterloo for an approximate price of $1,741,300.00, and further; That the Mayor and Clerk be authorized to execute the necessary documentation to effect this transaction, said documentation to be to the satisfaction of the City Solicitor." BACKGROUND: In March of 200 the Citti- of Iitchener aclcno«~ledged Intent to Purchase Land request submitted by the Regional Municipality of Waterloo for three parcels of City- owned land along Chandler Drive as depicted on the map attached to this report. along with the portion of Chandler Drive bordering any portion of these lands. The land is adjacent to the Region's Transit facilities and the acquisition of the Chandler lands will accommodate their expansion needs .The total combined acreage of the three parcels is approiimately 6.22 acres and payment will be made on the basis of these parcels. The lands ultimately conveyed to the Region will be reconfigured through the realignment of Chandler Drive with the City retailung a portion of the land closest to the Ezpress~~ ay, but compensated for b~- the Region. REPORT: As a result of the CMF project the Chandler Drive properties have been deemed surplus to the City's needs b~- Council on September 7, 2010 and the functions are currently in the process of being transferred to the new facilit<-. The property is presently zoned General Industrial (M-2) and the Official Plan Designation is Municipal Services and Public Utilities. 2(a)-1 1 I~IT(~HEI~TE~,. Staff Report CA~sO~~e www.kitche~terca Within the Region's letter of intent it ryas agreed that the purchase price of the parcels was to be based upon a mutually agreed upon highest and best use of the land. In November of 2007 the City- retained the services of Cold~~-e11 Banker Commercial to provide an opinion of value on the 6.22 acres of Chandler/Strasburg lands based on the existing M-2 zoning. It was their opinion, based on the assumption that the land ~~-as clean from an environmental standpoint and the land ~~~as able to support a building. that the property- was valued industrially at $22,000 per acre. Early in 2009, the Region retained the services of McKinnon and Associates ~~;ho provided a Land Use Planning Report «hich essentially supported a General Industrial use on the subject lands. The Mckinnon Report was circulated to Cite P1~ulning staff for review and comment. Staff concurred with the finding of the report that General Industrial uses represent a reasonable use of the land. In June of 2009 the City had Cold« e11 Banker Commercial Realty update their property valuations for Chandler Drive. The results indicated vei~T little change, if and- for industrial properties. The Region's land appraisal completed in 2009 by UBA Property Valuation and Consulting valued the lands at $210,000 per acre assuming that they were clean. As a midpoint, it «%as agreed that the Region would pay $21,000 per acre for approximately 622 acres plus the value of the existing building ~~-hick ryas appraised at $ 404,000, for a total purchase price of $1,741,300.00. The acreage. and therefore the final purchase price is approximate until such time as a Reference Plan has been completed by the Region. The Agreement of Purchase and Sale also inchides a cost sharing provision for stn~cttire demolition, enviromnental and soils remediation, to be funded from the Enviromnental Remediation Fund. Ultimately the existing portion of Chandler Drive r~uming between these parcels of land ~~-ill be closed and those lands conveyed to the Region. Under the Agreement, the Region is responsible to reconstruct, at its cost, this portion of Chandler Drive in accordance with plans to be approved by the City. The northerly portion of the Chandler property rumiing between the express~yay and the newly re-aligned Chandler Drive, although paid for by the Region, ~yill remain in City_ o«mership, to be landscaped by the Region in accordance with Plans approved by the City. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The sale of surplus land relates to the foundation of Efficient and Effective Government as defined in the City's Strategic Plan. The proceeds from the sale of the Chandler Drive properties will go towards fiuidilig of the kitchener Operations Center. Thereby supporting the goal contained in the Financial Management section relating to the investment and management of assets strategically. FINANCIAL IMPLICATIONS: The total purchase price for the approximately 6.22 acres of land is $1,741,300.00. The final figure will be detei7nined upon completion of a Reference Plan by_ the purchaser. The proceeds of this sale ~yill go towards finding the Kitchener Operations Center. 2(a)-2 1 I~IT(~HEI~TE~,. Staff Report CA~sO~~e www.kitche~terca COMMUNITY ENGAGEMENT: No prior cominuniri- engagement has been required. Through the Cit~T's ~~~ebsite, this report is being made available to the communit~T as part of the Council agenda. ACKNOWLEDGED BY: Pauline Houston, Deputy- CAO Infrastructure Services Department 2(a)-3 1 StaffR Chandler 1 S4rasburg Lands ~ i Total GIS Calculated krea: fi 6.2©3ae ., 2(a)-4