HomeMy WebLinkAboutDSD-19-097 - Declaration of Surplus and Sale – City Owned Lands – Lancaster StreetREPORT TO:Finance and Corporate Services Committee
DATE OF MEETING:May 13, 2019
SUBMITTED BY:Brian Bennett, Manager, Business Development, 519-741-2200 x7230
PREPARED BY:Rob Morgan, Capital Investment Advisor/ Brownfield Co-ordinator,
519-741-2200 x7734
WARD (S) INVOLVED:Ward1
DATE OF REPORT:April15, 2019
REPORT NO.:DSD-19-097
SUBJECT:Declaration of Surplus and saleCity owned lands Lancaster Street
West
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RECOMMENDATION:
described as Part 1 on Plan 58R-
That the closure of the unimproved Right of Way described as Waterloo Street Plan 577
be approved in principle;
That the Mayor and Clerk be authorized to execute an Agreement of Purchase and Sale
with 528 Lancaster Street West Inc. for their acquisition of two City-owned parcels of land,
as follows:
i)escribed as Part 1 on Plan 58R-18133 at a
purchase price of $585,000.00; and,
ii)
purchase price of $184,050.
That the Agreement of Purchase and Sale be conditional on the following:
i)The purchaser obtaining a Record of Site Condition, at their cost, for both
parcels ofland prior to closing;
ii)
iii)The City retains the right to re-purchase the subject lands at 90% of the
purchase price in the event that the purchaser has not commenced construction
with two years of Council approval; And further
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Thatthe Mayor and Clerk be authorized to execute all documentation required to
complete the transaction, said documentation to be to the satisfaction of the City
Solicitor.
BACKGROUND/ REPORT
Staff have been approached by Vive Development Corporation, requesting to purchase the
0.15 acre unimproved road allowance (Parcel 1) and the 0.65 acre City owned lot (Parcel2)
located immediately at the end of the road allowance. Their intention is to consolidate these
lands with the parcel of land they own at 528 Lancaster Street West in order to facilitate the
construction of a multiple dwelling unit.
currently zoned MU-2, Medium
Intensity Mixed Use Corridor Zone with Special regulation 625R which allows for freestanding
retail. The 0.65 acre City property to the rear iszoned B-2 Restricted Business Park with a
Special Use provision 40U which allows for an office use on the property.
with no concerns raised as to the sale of the road allowance or the lot. As the unimproved road
allowance is still considered open, it will be required to be closed.
Transportation Services has no concerns with the closure of the right of way as it is not needed
to serve local traffic and only provides a secondary access to 544 Lancaster Street West. To
accommodate this access, the purchaser has agreed to provide an easement in favour of the
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owner of 544 Lancaster Street. There are currently no other easements within the right of way
and therefore no other easements are required.
Further, the perspective purchaser will be required to secure a Record of Site Condition (RSC)
for all City lands at their expense prior to closing the transaction.The City will also retain the
right to re-purchase the subject lands at 90% of the purchase price in the event that the
purchaser has notcommenced construction within two years of Council approval.
The City retained the services of Coldwell Banker Commercial to provide values for the two
parcels. The 0.15 acre unimproved right of way (Parcel 1) was valued at $184,050 and the
0.65 acre (Parcel 2) was valued at $585,000 representing a total purchase price for the two
parcels of $769,050.00.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
the delivery of core service.
FINANCIAL IMPLICATIONS:
The sale proceeds in the amount of $769,050.00 will be deposit
account upon closing of the transaction.
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
ACKNOWLEDGED BY: Justin Readman, General Manager Development Services
Department
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