HomeMy WebLinkAboutFCS-13-115 - Amendments to Agreements - Centre Block
REPORT TO:
Committee of the Whole
DATE OF MEETING:
June 24, 2013
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:
June 19, 2013
REPORT NO.: FCS-13-115
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 permit the
conveyance of the Phase 2 lands simultaneously with the Phase 1 lands on or before August
30, 2013, with the City retaining ownership through a strata reference plan of a portion of the
lands for the purpose of parking; the inclusion of a requirement that Andrin register on title
immediately after the Bank financing, a restrictive covenant restricting Andrin’s ability to sell the
Phase 2 lands to a third party; the registration on title of a long term lease or similar such
arrangement providing the City with the retention of approximately 75 surface parking spaces on
the Phase 2 lands until the commencement of the development of Phase 2 lands; the
enhancement of the King Street streetscaping around the Presentation Centre by Andrin; and
any other incidental changes which, as a result of change in circumstances contemplated
herein, 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 is
currently undertaking it final arrangements in order to commence construction of Phase 1 by
August 30, 2013
REPORT:
In accordance with the discussion in camera on June 10 and 17, 2013, staff put forward the
above resolution to acknowledge the necessary amendments to facilitate the commencement of
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Phase 1 as of August 30, 2013. This allows the City to obtain payment for the land early, with
measures to ensure the City’s interest in the parking garage are in place.
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 will be paid the $2.4 million dollar sale price for the Phase 1 and 2 lands at the time of
conveyance in late August, 2013. The Phase 2 lands are being paid for ahead of schedule.
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 at the
end of August, 2013.
ACKNOWLEDGED BY:
Dan Chapman, Deputy Chief Administrative Officer Finance and
Corporate Services and Treasurer
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