HomeMy WebLinkAboutCAO-12-018 - Declaration of Surplus and Sale of Block B - PlanREPORT TO:
Finance & Corporate Services Committee
DATE OF MEETING:
May 7, 2012
SUBMITTED BY:
Rod Regier, Executive Director, Economic Development,
519-741-2506
PREPARED BY:
Rob Morgan, Capital Investment Advisor, 519-741-2734
WARD(S) INVOLVED:
Ward 2
DATE OF REPORT:
April 11, 2012
REPORT NO.:
CAO-12-018
SUBJECT:
Declaration of Surplus and Sale of Block B, Plan 1359,
Melvern Court, City of Kitchener
RECOMMENDATION:
That the Corporation of the City of Kitchener’s lands located on Melvern Court, in the
City of Kitchener, described as Block B, Plan 1359, to be further described as two parts
on a Reference Plan, be declared surplus to the City’s needs and sold to one or both of
the abutting property owners at 15 Melvern Court and 21 Melvern Court for a total
purchase price of $26,390.00 plus HST; subject to an easement over each part being
granted in favour of the City; and further,
That the Mayor and Clerk be authorized to execute the necessary documentation to effect
this transaction with each property owner, said documentation to be to the satisfaction
of the City Solicitor.
BACKGROUND/REPORT:
The owners of 15 and 21 Melvern Court have made a request to purchase a 415 square metre
strip of City owned land that runs between their homes. The request was circulated to the City’s
Property Management Team and it was deemed to have no community or development use to
the City. As such, it was determined that the parcel could be sold subject to an easement being
retained in favour of the City as the parcel contains underground sanitary and storm services.
The owners intend to put a fence down the middle of the property and use the land as additional
amenity area for their properties, subject to the provisions of the easement. Due to the
restrictions of the easement, no buildings will be permitted within this portion of purchaser’s
yards. The resolution has been left flexible should one of the property owners choose not to
purchase their portion of the land.
The owner of 48 Coventry Drive which abuts a portion of the rear of the subject lands has
expressed their desire that the property remain in City ownership. It is felt that selling the
property to the adjacent property owners would diminish their enjoyment, privacy and value of
their property. Staff are of the opinion that due to the easement requirements and the fact that
no buildings are allowed to be constructed on the subject land that the impact to the abutting
properties will be minimal at most.
ïð ó ï
The City’s Real Estate Service provider, Coldwell Banker Commercial has valued single family
residential land at $127.19 per square metre where a market situation exists where there is
more than one potential buyer. In circumstances where there is clearly only one buyer or in this
case two, and the land is encumbered by an easement, the value can be reduced by up to 50%
in accordance to standard industry practice. Given the fact that the land could only be sold to
the abutting property owners due to its narrow width, combined with the required easement over
the entire parcel, staff are recommending that the parcel’s value be reduced by the maximum
50%.
415 square metres @ $ 127.19/ sq. m = $52,783.85
Reduced by 50% = $26,391.93
Rounded = $26,390.00
Property owner’s share = To be determined upon completion of a reference plan
The purchasers are also responsible for HST as it pertains to this transaction, the cost of the
Reference Plan and any incidental costs that the City Legal Division may incur.
The property is presently maintained by City staff, should Council approve the sale, the City
would no longer be required to maintain it.
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 this parcel will be placed in
the City’s Asset Management Account. Thereby supporting the goal contained in the Financial
Management section relating to the investment and management of assets strategically.
ïð ó î
FINANCIAL IMPLICATIONS:
The disposition of this property will result in no further operating costs being used for the up
keep of the land.
That the revenue from this transaction ($26,390.00) be deposited in the Asset Management
Reserve Fund.
COMMUNITY ENGAGEMENT:
N/A
ACKNOWLEDGED BY: Rod Regier, Executive Director, Economic Development
ïð ó í