HomeMy WebLinkAboutFCS-13-196 - Sale of Land - Habitat for Humanity - Donley Road AllowanceStaff Report
Finance and Corporate Services Department
REPORT TO: Committee of the Whole
DATE OF MEETING: December 9, 2013
SUBMITTED BY: Steve Ross 519 - 741 -2200 ext.7266
PREPARED BY: Steve Ross 519 - 741 -2200 ext.7266
WARD(S) INVOLVED: 9
DATE OF REPORT: December 3, 2013
REPORT NO.: FCS -13 -196
wvmkitrhener ca
SUBJECT: Sale of Land to Habitat for Humanity — Donley Road
Allowance.
RECOMMENDATION:
That the City declare the lands marked on attached Appendix "A" (the "Subject
Lands ") surplus to the City's needs; and further
That the City initiate the road closing procedure for the former road right of way,
if required; and further
That the Mayor and Clerk be authorized
affect the sale of the Subject Lands to
$4,375.00, subject to the submission of a
the City Solicitor;
EXECUTIVE SUMMARY:
N/A
REPORT:
to execute all documents necessary to
Habitat for Humanity for approximately
Reference Plan, all to the satisfaction of
Habitat for Humanity ( "Habitat ") is in the process of constructing a multi family
development in the area of Kehl and Donley Streets. This area was the subject of a
City- initiated planning exercise by staff in 2009 and 2010 which ultimately was not
adopted by Council. At that time, there was still a chance that Donley Street would
connect through to Kehl to accomplish the land use planning goals of that process. In
the intervening years, Habitat has assembled land, received site plan approval for
townhouses and has begun construction. Habitat has requested to purchase from the
City a small portion of the remnant road allowance of Donley, as it approaches Kehl.
The purpose of the purchase is to enhance Habitat's ability to accommodate
stormwater.
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This matter went to the Property Management Committee on September 9, 2013.
Transportation Planning does not ever anticipate the use of this road allowance as it no
longer can connect to Donley. The parcel has no community value and it is surrounded
by lands now owned by Habitat on three sides.
To avoid paying for an appraisal, and due to the small size of the lands being sold,
Legal and Economic Development staff have suggested valuing the land based upon a
value of $250,000.00 per acre, being the appraised value paid for similarly zoned lands
in recent years. We have currently approximated the area at .035 acres. Given the
isolated location of the parcel, the grading and the fact that this portion of the right of
way is not wide enough to accommodate a structure, staff further recommends that a
discount of 50 % be applied, as is standard for constrained parcels. In short, this parcel
is not marketable to anyone but Habitat and has almost no utility for the development of
the remainder of the City's lands. This results in a price of approximately $4,375.00,
subject to the submission of a proper Reference Plan which will identify the exact
amount of land and price
FINANCIAL IMPLICATIONS:
The proceeds of this sale will be placed in the Land Reserve Account.
COMMUNICATIONS:
N/A
CONCLUSION:
Staff recommends that Council sell the Subject Lands to Habitat for Humanity at
$250,000 an acre for a purchase price of approximately $4,375.00.
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO
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