HomeMy WebLinkAboutDSD-20-041 - Acquisition of 2-8 King St. W., KitchenerStaff Repod
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K II FR
Development Services Department
www.kitchener.ca
REPORT TO:
Special Council
DATE OF MEETING:
March 9, 2020
SUBMITTED BY:
Cory Bluhm, Executive Director Economic Development, 519-741-2200
Ext 7065
PREPARED BY:
Brian Bennett, Manager Business Development 519-741-2200 ext 7230
WARD (S) INVOLVED:
Ward 10
DATE OF REPORT:
February 24, 2020
REPORT NO.:
DSD 20-041
SUBJECT:
Acquisition of 2-8 King St W, Kitchener
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute the Agreement of Purchase and Sale
with the Bank of Montreal for the City's acquisition of Part Lot 1, Plan 383 and Part Lot 2,
Plan 383, as in A53643 and 358229, City of Kitchener, Regional Municipality of Waterloo
(being all of PIN 22316-0072) and being municipally known as 2-8 King St W, Kitchener
Ontario, at a total purchase price of $3,000,000: said Agreement of Purchase and Sale 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; and
further
BACKGROUND:
The purpose of this report is to recommend the purchase of the Bank of Montreal building located
at 2-8 King St W in Kitchener.
REPORT:
THEMUSEUM has articulated a vision for an expanded facility to act as a catalyst for the local
arts and creative industries community. In support of this vision, THEMUSEUM entered into a
"Letter of Intent" (LOI) with the Bank of Montreal (BMO) to purchase the adjacent property at 2-
8 King St Wfrom The Bank of Montreal to facilitate expansion of THEMUSEUM'S current facility.
This is a strategic asset located at the key intersection of King and Queen, adjacent to City
owned property located at 10 King St W (currently home to THEMUSEUM).
THEMUSEUM'S original intent was to secure the funding to complete the purchase through an
initial fundraising campaign. The capital campaign has not yet commenced as it will now take
into account the broader vision for the future expansion. Accordingly, in order to facilitate the
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Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
acquisition, the LOI between BMO and THEMUSEUM has been assigned to the City, which
enables the City to purchase the building for $3,000,000. The City will hold the building for up
to 10 years to allow THEMUSEUM to complete their business case and execute their fundraising
campaign to facilitate the proposed capital expansion. Should THEMUSEUM not proceed with
the expansion within the 10 year period, the City would be free to redeploy the asset for another
long-term purpose after 10 years.
BMO will be relocating their Retail Branch to another downtown location and anticipate closing
this transaction in July 2020.
Subject to a Council -approved business case, the City will utilize the building for an interim
strategic purpose until such time as THEMUSEUM is ready to proceed with their expansion, or
the ten year deadline expires.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Create a vibrant economy by making strategic investments to support job creation, economic
prosperity, thriving arts and culture, and great places to live.
FINANCIAL IMPLICATIONS:
The $3,000,000 purchase will be funded through the Economic Development Reserve Fund. To
support ongoing maintenance/capital requirements over the next 10 years, $300,000 will be
allocated within the Economic Development Reserve Fund when it is updated in 2020.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
ACKNOWLEDGED BY: Dan Chapman, CAO