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REPORT TO: Committee of the Whole
DATE OF MEETING: December 3, 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 28, 2012
REPORT NO.: FCS-12- 194
SUBJECT: Authorization to Execute Amendments to Agreement of
Purchase and Sale and Development Agreement pertaining
to Centre Block and assignment of Phase 3 lands
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 and Ridgewood
Holdings Inc. with respect to the property known as the Centre Block lands, to adjust the various
clauses of the agreements to facilitate the assignment of the Phase 3 lands to Ridgewood
Holdings Inc. or a related company to be incorporated and any other incidental changes which,
as a result of change in circumstances, require adjustments; said amendments to be
satisfactory to the City Solicitor; and further,
That Ridgewood Holdings Inc. and its consultants be granted access to the Mayfair Hotel
building and 156/158 King Street West for the purpose of reviewing the layout of the buildings,
taking measurements and other advance assessment type work; said access to be in
accordance with an access agreement 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 Centre Block
project consisted of three phases, Phase 1 and 2 pertaining to the construction of two new
condominium buildings and Phase 3 consisting of the redevelopment of the existing Mayfair
Hotel property and the adjacent owned City property at 156/158 King Street West. Construction
of these projects was anticipated to proceed in numerical order starting with Phase 1 but with
the understanding that the City desired the acceleration of the Phase 3 project. To facilitate the
acceleration of the Phase 3 project, the Agreements provide the City the opportunity to assign
the Phase 3 lands to another party.
REPORT:
In accordance with the discussion in camera on November 26, 2012, staff put forward the above
resolution to acknowledge the assignment of the Phase 3 lands to Ridgewood Holdings Inc. or a
related company to be incorporated.
Ridgewood Holdings is the lead investor in the redevelopment of the Mayfair Hotel. The key
proponents for this project have articulated a vision for a boutique style hotel that offers
premium food, beverage and accommodation services. The group has a significant business
track record in local urban development, entertainment and food services. They are ideally
situated to capitalize on the next steps in the City Centre project and the on-going evolution of
Downtown Kitchener. This assignment will accelerate the development of the project, something
that was requested by the downtown business community and Council.
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:
None
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.
ACKNOWLEDGED BY: Dan Chapman, Deputy Chief Administrative Officer Finance and
Corporate Services and Treasurer