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HomeMy WebLinkAboutFCS-12-192 - Agreement of Purchase & Sale - Centre BlockREPORT TO: Special Council DATE OF MEETING: November 26, 2012 SUBMITTED BY: Lesley MacDonald, City Solicitor and Director of Legal Services, (519)741-2267 PREPARED BY: Lesley MacDonald, City Solicitor and Director of Legal Services, (519)741-2267 WARD(S) INVOLVED: N/A DATE OF REPORT: November 21, 2012 REPORT NO.: FCS-12- 192 SUBJECT: Authorization to Execute Amendments to Agreement of Purchase and Sale and Development Agreement pertaining to Centre Block RECOMMENDATION: That the Mayor and Clerk be authorized to execute amendments to the Agreement of Purchase and Sale and to the Development Agreement with Andrin Investments Limited to extend the timing to transact the various phases of the property and commence construction such that the Phase 1 lands shall be transacted no later than the earlier of thirty days following the issuance of a building permit or August 30, 2013 and the Phase 2 lands shall be transacted no later than the earlier of thirty days following the issuance of a building permit or November 30, 2016; provide further clarity regarding the boundaries of the phases; delete the City’s acquisition of any public parking in Phase 1 and reduce the number of parking spaces to be acquired in Phase 2 from 250 to 139 spaces; and any other incidental changes which, as a result of change in circumstances, require adjustments; said amendments to be satisfactory to the City Solicitor. BACKGROUND: The City entered into an Agreement of Purchase and Sale with Andrin Investments Limited as well as a Development Agreement for the development of the Centre Block. The Developer has worked diligently towards completing all prerequisites in order to commence construction of Phase 1 and it is currently undergoing site plan review. In order to complete the site plan review, secure the necessary building permits and mobilize the project, the Developer has requested an extension of the November 30, 2012 date. REPORT: In accordance with the discussion in camera on November 19, 2012, staff put forward the above resolution to acknowledge the necessary amendments which will facilitate the commencement of Phase 1 as early as possible in 2013, and not later than August 30, 2013. í ó ï ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The City of Kitchener Official Plan, Economic Development Strategy and Downtown Action Plan all prioritize residential intensification and development of high quality mixed use urban developments as a priority. This project exemplifies the type and quality of development required by municipal policy. FINANCIAL IMPLICATIONS: The City of Kitchener investment in structured parking will be deferred to phase 2 and be reduced. Sufficient budget exists to fund the investment in parking. COMMUNITY ENGAGEMENT: The Centre Block / City Centre project was the subject of extensive public consultation between 2002 and the present. CONCLUSION: The City Centre Condominium project plays a strategic role in the evolution of Kitchener’s downtown and the implementation of the City’s relevant corporate policy and strategy. Andrin has made a significant investment in the development of the project and achieved significant project milestones. These amendments will position the project to move into construction in mid- 2013. ACKNOWLEDGED BY: Dan Chapman, Deputy Chief Administrative Officer Finance and Corporate Services and Treasurer í ó î