HomeMy WebLinkAboutFCS-17-143 - P17-025 Sale of 48 Ontario Street NorthStaff Report
rTc.� R finance and Corporate Services Department www.kitcheneaa
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-08-11
SUBMITTED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
WARD(S) INVOLVED: Ward 9
DATE OF REPORT: 2017-07-31
REPORT NO.: FCS -17-143
SUBJECT: P17-025 Sale of 48 Ontario Street North
RECOMMENDATION:
That Proposal P17-025 Sale of 48 Ontario Street North, be awarded to Voisin
Capital Inc., in trust for a Corporation to be formed, and further;
That the Mayor and Clerk be authorized to execute an Agreement of Purchase and
Sale with Voisin Capital Inc., in trust for a Corporation to be formed for their
acquisition of the City's parcel of land and building located at 48 Ontario Street
North, legally described as Part 1 on Reference Plan 58R-13162, at a total
purchase price of $1,550,000.00; said agreement to be to the satisfaction of the
City Solicitor; and further;
That the Mayor and Clerk be authorized to execute all documentation required to
complete the transaction, said documentation to be satisfactory to the City
Solicitor.
BACKGROUND:
The lands and building were declared surplus by Council on December 5, 2016 and
subsequently offered for sale through a request for proposal process with evaluation
criteria approved by Council on January 30th, 2017. The sale of 48 Ontario Street North
will see this site not only generate revenue for the City, but to have the building be put
to use in a way that increases vitality to the downtown core, that is focused on
design/heritage preservation and aligns with the economic development strategy Make
it Kitchener.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
REPORT:
Request for Proposals were advertised publicly on the City of Kitchener website and the
Internet through the Ontario Public Buyers Electronic Tendering Information System.
Documents were downloaded by ten (10) interested parties and by the closing date of
Monday April 3, 2017, five (5) proposals had been received.
The following proposals were received:
Voisin Capital Inc., in trust for a Corporation to be formed
Waterloo ON
536357 Ontario Limited
Kitchener ON
RFB Development
Kitchener ON
2328783 Ontario Ltd.
Kitchener ON
Perimeter Garage Development Corporation
Kitchener ON
The proposals were rated on the following criteria:
• Adherence to Heritage Designation, retaining designated heritage features
• Development vision for the property, including but not limited to architectural/
urban design principles, potential employment densities in accordance with the
City's Urban Design Manual (City Centre District Design Brief) and Planning
Around Rapid Transit Stations (PARTS) Central Master Plan (the City is seeking
a use that will provide increased vitality to the Downtown)
• Proposed plan for retaining and/or enhancing the designated heritage features
• Quality of the design/architecture of the proposal, relative to the City's Urban
Design Policies and Guidelines, Planning Around Rapid Transit Stations
(PARTS), Central Master Plan
• Amount and acceptability of any conditions identified
• Demonstrated ability of the bidder to complete the transaction/past experience on
similar projects
• Proposed timing for renovations/occupancy
• Ability to be incorporated into a broader redevelopment while meeting the
timeline objectives of the City
• Financial considerations/proposed purchase price/long term tax value
A building permit must be obtained for the proposed development within 12 months
after the Agreement of Purchase and Sale is executed. The sale will close when the
building permit is issued.
The proposals were reviewed by the evaluation committee consisting of staff from
Economic Development, Planning, Financial Planning and Supply Services, who concur
with the recommendation. Legal Services provided advice regarding the documentation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city's strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
As per Council's direction during 2017 Final Budget Day (issue paper BD08 — Proceeds
of Sale from 48 Ontario Street North), all of the proceeds from the sale of this property
will be deposited in the Economic Development Reserve Fund. These funds will be
used as follows:
• 50% Creative Hub
• 50% Make it Kitchener (MIK) —New Initiatives
The MIK — New Initiatives funding will require specific direction from Council on how
those funds are to be used, either through the 2018 budget process or a stand-alone
staff report.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
CAO -16-034 Creative Hub Options
FCS -17-023 Lease of 44 Gaukel Street (1St Floor) and Sale of 48 Ontario Street North
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services