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HomeMy WebLinkAboutDSD-20-156 - Land Sale - Ottawa Street Right of WayREPORT TO: Community & InfrastructureServices Committee DATE OF MEETING: October 19, 2020 SUBMITTED BY: Brian Bennett, Manager, Business Development, 519-741-2200 X 7230 PREPARED BY: Rob Morgan, Capital Investment Advisor/Brownfield Co-ordinator, 519-741-2200 x7734 WARD (S) INVOLVED: Ward 5 DATE OF REPORT:September 9, 2020 REPORT NO.: DSD-20-156 SUBJECT: Land Sale – Ottawa Street Right of Way ___________________________________________________________________________ RECOMMENDATION: That the Mayor and Clerk be authorized to execute aconditionalAgreementof Purchase and Salewith Kitchener Trussler Holdings Inc.for their acquisition of the City’s remnant piece of the Ottawa Street South road allowance having an area of approximately 2.21 acres, at a purchase price of $884,000.00, subject to the City’s conditions, and that the subject road allowance beclosed anddeclared surplus to the City’s needs; 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 to the satisfaction of the City Solicitor. BACKGROUND: The City was approached by a development company Kitchener Trussler Holdings(KTH) that owns the land on both sides of theCity’s remnant piece of the Ottawa St road allowanceRight of Way (ROW). KTHwould like to consolidate the parcels to form a contiguous land parcel to allow for the development of acomprehensiveresidential subdivision with a mixed-use component. The developer’s lands to the south, shown on the attached plan, also contain a house that Heritage Kitchener has requested be retained and designated under the Heritage Act. The developer is working with our Heritage Planner to facilitate same. The subject site as well as the potential purchaser’s lands are designated Mixed Use in the City’s Official Plan and are currently zoned Agricultural A-1.KTH will be required to apply for a zone change to completethe Plan of Subdivision registration. The request to purchase the City lands was circulated to the City’s Property Management Team as well as the Regionand no objections to the sale of the landwere raised. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 2 - 1 Conditions: The sale of the property is subject to the following conditions: 1.Ifthe Purchaser does not complete the plan of subdivision within 5 yearsof the closing of this transaction, the City reserves the right to repurchase the subject lands at 90% of the purchase price. 2.That the subject land is not to be resold prior to the registration of the plan of subdivision. Land Value The purchase price of $884,000.00 is fair market value for the subject parcel of land based on an appraisal secured by the City. 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: The proceeds from the transaction will be deposited into the Land Reserve Account. 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: Justin Readman, General Manager, Development Services Department Enclosures: Property location 2 - 2 Property Location: 2 - 3