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HomeMy WebLinkAboutCAO-14-024 - Declaration of Surplus & a Sale of a Portion of 55 Bramms St Staff Report K jT(,'H-Ni., CA0 Office www.kitchener ca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: April 28, 2014 SUBMITTED BY: Rod Regier, Executive Director Economic Development 519-741-2200 ext 7506 PREPARED BY: Brian Bennett, Manager Business Development 519-741-2200 ext 7230 WARD (S) INVOLVED: 9 DATE OF REPORT: April 16, 2014 REPORT NO.: CAO-14-024 SUBJECT: Declaration of Surplus and a Sale of a Portion of 55 Bramm Street RECOMMENDATION: The .30 acre portion of land forming part of 55 Bramm Street, owned by the City of Kitchener located at 55 Bramm Street depicted on the map (Schedule A) attached to CAO-12-024 Report, to be further described on a Reference Plan, be declared surplus, and the City enter into a conditional Agreement of Purchase and Sale with 2373074 Ontario Inc. (Momentum Developments) for fair market value; said transaction, to close on or before construction commences; and further That the Mayor and Clerk be authorized to execute the necessary documentation to effect this transaction with 2373074 Ontario Inc, said documentation to be to the satisfaction of the City Solicitor. BACKGROUND: Momentum Development owners of the property at 98 to 110 Victoria St, would like to purchase the .30 acres of City land located at 55 Bramm St adjacent to their parcel as outlined in Schedule A. Momentum Developments intend to utilize this property to construct a mixed use development, consisting of 266 residential units, 60,000 square feet of office space and 10,000 square feet of retail space in two towers. 6 - 1 REPORT: The City-owned .30 acre parcel has limited street front exposure, is underutilized, isolated from the main body of the Bramm Yards and has not been incorporated in the initial mixed use concepts for the proposed Bramm redevelopment. The addition of the .30 acres of City owned land to Momentum's current property allows the developer's property envelope to be squared off, creating a more developable parcel, allowing for an enhanced, efficient and larger underground parking area and increased building density. Momentum will need to apply for a Zone change and Official Plan Amendment for the subject lands as well as their own. The City's ongoing overall tax assessment for the proposed development would be approximately $420,000 annually. The proposed development will be the initial catalyst for the overall development of the Bramm Yards. The property is being sold for fair market value, on an as is basis, with Momentum responsible for all costs associated with the transaction including completing a Reference Plan. 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. FINANCIAL IMPLICATIONS: The Sale proceeds will be deposited into the City's Land Reserve Account in accordance with Council Policy COMMUNITY ENGAGEMENT: Inform: This report is posted publically with the agenda prior to Committee meeting. Consult: The public will be engaged during the proposed Official Plan Amendment and the Zoning Change. ACKNOWLEDGED BY: Jeff Willmer, CAO Enclosures: Schedule A: Bramm Street Land Request 6 - 2 'ry, s a „ ► N V 1 Land Requested by Momentum Developrments !� Subject Parcel Developers Land 55 Bramrra St-Parcel Boundary Railway r, i z M f � Yti /IF 'R i , 1 r r 1 i u , Y V) o y� V ui LJ z L-Lu w a Oz ui X z > O W FS 6 - 4