HomeMy WebLinkAboutCouncil Minutes - 1997-10-31 SCOU NCIL\1997-10-31 -SPE
OCTOBER 31, 1997
SPECIAL COUNCIL MINUTES
CITY OF KITCHENER
A special meeting of City Council was held at 1:45 p.m. this date and Chaired by Mayor R. Christy, with
the following members present: Councillors M. Wagner, John Smola, B. Vrbanovic, T. Galloway and M.
Yantzi. Councillor Jake Smola was in attendance for part of the meeting.
Notice of this special meeting had previously been given to all members of Council by the City Clerk
pursuant to Chapter 25 (Council Procedure) of the Municipal Code.
Mayor R. Christy referred to an additional item which staff have submitted for discussion this date
concerning parking in the Downtown during the Christmas season. Mr. D. Snow advised that if
implemented, this program would commence on November 15, prior to the next available Council meeting
on November 17, 1997. Mayor R. Christy enquired of the Clerk as to whether this item could be
discussed, having not been listed on the agenda. Mr. G. Sosnoski advised that pursuant to Council's
Procedural By-law, an item cannot be discussed unless 24-hour notice is given to each member of
Council. He also advised that under the by-law two-thirds of the entire Council must be in attendance and
vote in favour of suspending this procedure.
Councillor B. Vrbanovic questioned why this item was not raised at the Council meeting of October 27,
1997 and Mr. Snow replied that at that time he had only received informal notice of the request.
Councillor M. Wagner suggested that Council simply direct staff to proceed with implementing the
program as this has been done in previous years. Councillor M. Yantzi agreed that there would likely be
no concerns raised by other members of Council; however, he expressed concern over how other
members may feel about this breach of process. Councillor T. Galloway also expressed concern over
setting a precedent by discussing items not listed on the agenda. Mr. J. Gazzola advised that in the
interest of seeing the program proceed as in past years, he is prepared to authorize implementation
himself at the risk of criticism. Council took no action on the request to introduce the Downtown parking
matter for consideration this date.
Ms. Rita Levato, Villemaire Levato, appeared on behalf of Grerei Investments Ltd. in support of their offer
to purchase additional lands in the Lancaster Corporate Centre. Council was also in receipt of a report
and recommendation in this regard from V. Gibaut dated October 29, 1997.
Ms. Levato explained that her client wishes to purchase an additional small parcel of approximately .09
acres to compliment the 1.34 acre parcel purchased in May of 1996 to allow construction over both sites
on behalf of a tenant who would bring approximately 40 employees to the City. She advised that her
client plans to put the required storm retention pond on the remnant parcel. Councillor T. Galloway
enquired whether Ms. Levato's client was prepared to incur all costs necessary to make the 1.34 acre
parcel buildable and she replied in the affirmative.
Councillor John Smola put forward a motion, seconded by Councillor M. Yantzi, to authorize the sale of
the .09 acre parcel as per the staff recommendation.
Ms. V. Gibaut asked that the motion before Council this date be amended to add reference that the Mayor
and Clerk be authorized to sign any documents in regard to the sale to the satisfaction of the City
Solicitor. She also advised that staff are recommending that the intermediate cost per acre be charged
for these lands at an approximate cost of $4,470.
Councillor Jake Smola entered the meeting at this time.
Councillor T. Galloway recalled that the lands presently owned by Grerei Investments Ltd., next to the
Ernst and Young building, were sold at a reduced rate in light of the fact that the site was not compacted
and suitable for building and had been subsequently covered by fill which was inappropriately deposited
on what were then City-owned lands. He questioned how much it will take to prepare the site for
construction and Ms. Gibaut replied that subject to confirming with the contractor, it is her belief that it will
cost approximately $150,000 to move the soil. Councillor Galloway questioned whether now is the time to
consider charging some amount as a form of compensation for the illegal dumping, noting that a member
of the public is monitoring this sale and has raised the dumping issue. He expressed the concern that the
City sold the property presently owned by Grerei Investments Ltd. at a reduced rate on the understanding
that it is unbuildable, and with the acquisition of the remnant parcel, the owner is now planning to
construct a building utilizing both sites. He questioned whether the City should not attempt to reclaim an
amount closer to the true value of the property which was originally sold at a price of $5,000 per acre. Mr.
J. Gazzola commented that the site has a number
COUNCIL MINUTES
OCTOBER 31, 1997
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CITY OF KITCHENER
of problems from a building perspective, including a severe slope and sub-surface soil which will require
replacement, all of which would cost the developer approximately $250,000 in site rehabilitation costs.
Notwithstanding this, he advised that staff are satisfied with the price being charged for the remnant
parcel of land. Councillor Galloway indicated that he is satisfied with the price as well; however, it
appears that with this acquisition, a site which was formerly considered unbuildable will now be suddenly
buildable. He suggested that on this basis, the City should have received more money for the original
1.34 acre parcel.
Ms. Levato clarified that if her client cannot purchase the remnant parcel under consideration this date,
they would be forced to use a portion of the proposed parking for storm water retention and the City would
be left with a remnant parcel of land which is for all intents and purposes, useless. She also pointed out
that Grerei Investments Ltd. did not endorse the illegal soil deposit at issue.
Councillor M. Yantzi enquired whether the City has recourse at this time to obtain compensation from the
contractor who initially deposited the soil on City lands. Mr. J. Gazzola reminded Council that the City
was aware when the contractor had illegally dumped the soil and decided to take no action at that time.
Mr. J. Shivas agreed, noting that the entire matter was reviewed by Council and constitutes a separate
issue from the offer to purchase before Council this date. Ms. V. Gibaut clarified that at the time Council
was not advised that the site was unbuildable, but rather that it was buildable at an increased cost.
Mayor R. Christy noted that the land was initially sold at $5,000 an acre in order to attract a developer
who would deal with the fill problem. Ms. Levato further clarified that her client had no intention of
building on the land at the time of the initial purchase; however, they have since changed their mind in
light of this recent offer and are prepared to spend the funds required to make the site buildable, through
which the City would benefit by increased assessment. Councillor T. Galloway asked that the minutes
reflect that it was his understanding the City sold the lands to
Grerei Investments Ltd. at a price of $5,000 per acre on the understanding that the site was unbuildable.
Councillor B. Vrbanovic enquired whether the City could not have placed a clause in the agreement with
respect to the Grerei Investments lands prohibiting building on the site. Mr. J. Shivas replied that such a
condition could have been imposed; however, the land was sold on the understanding that it could be
built on at a significant cost. Councillor Vrbanovic advised that he would support the motion before
Council, but asked that the minutes reflect his support is on the basis that if the remnant parcel of land is
not sold at this time, it will likely be unusable for any other purpose. He also asked that staff investigate
the use of a building restriction clause in future agreements of this type.
The staff recommendation, as amended, was then voted on.
Moved by Councillor John Smola
Seconded by Councillor M. Yantzi
"That Council authorize the sale of approximately .09 acres of land in the Lancaster Corporate
Centre, adjacent to Part 1, Plan 58R-10075, to be surveyed, to Grerei Investments Ltd. at a price
of $33,000 per acre plus the cost of the reference plan; and further,
That the Mayor and Clerk be authorized to sign any agreement in this regard satisfactory to the
City Solicitor."
Carried.
Moved by Councillor M. Wagner
Seconded by Councillor M. Yantzi
"That leave be given the Mover and Seconder to introduce a by-law to confirm all actions and
proceedings of the Council and that the same be taken as read a first, second and third times, be
finally passed and numbered 97-174 by the Clerk."
Carried.
On motion the meeting adjourned at 2:20 p.m.
MAYOR CLERK