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HomeMy WebLinkAboutDSD-20-215 - Request to Purchase Air Rights Over City Owned LandREPORT TO:Committee of the Whole DATE OF MEETING:December 14,2020 SUBMITTED BY:Brian Bennett, Manager, Business Development, 519-741-2200 X 7230 PREPARED BY:Brian Bennett, Manager, Business Development, 519-741-2200 X 7230 GarettStevenson, Senior Planner 519-741-2200 X 7070 WARD (S) INVOLVED:Ward10 DATE OF REPORT:December 7,2020 REPORT NO.:DSD-20-215 SUBJECT:Request to purchase air rights (easement) over City-owned land (Breithaupt Street) for an overhead enclosed privately owned walkway. RECOMMENDATION: That the Mayor and Clerk be authorized to execute an Easement Agreement with any/all of the registered owner(s) of 20, 25, 30 and/or 51 Breithaupt Street (as necessary) for the granting of an approximate103.94 sq metre air rights easementbetween 20 Breithaupt Street and 25 Breithaupt Street for the purchase price of $64,600,subject to the, said agreement to be to the satisfaction of the City Solicitor; That the portion of the Breithaupt Street road allowance, to be described on a stratified reference plan satisfactory to the City Solicitor, which isto bethe subject ofthe above noted Easement authorized and directed to proceed with the required advertising, preparation and registration of the necessary By-law(s) for the closure of said portion of the road allowance;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: Breithaupt Block Phase 3 (20 Breithaupt Street, BB3) is a new 300,000 sq ft office tower that is now under construction by Breithaupt Block Phase III Inc & 2308559 Ontario Limited (Breithaupt), with REPORT: Perimeter Development Corporation the parent companywould like to construct an overhead walkway to connect the new office tower at20Breithaupt Street (BB3) to the building at 25 Breithaupt Street (BB2) (2184647 Ontario Limited & Breithaupt Block Inc are the owners), in a similar way that the buildings ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 8 - 1 in BB1 and BB2 are connected. The overhead walkway will enhance collaboration betweenall 3 buildings, providing a seamless experience for employees, free of the exterior elements The City would provide an easement to the ownersof 25 Breithaupt Street and 20 Breithaupt Street. The land below the overhead walkway would remain in City ownership. The three-dimensional area occupied by the overhead walkway would be subject to a road closure by-law. Staff circulated the request to members of the Property Management Team, Region of Waterloo, Grand River Transit, all utilities providers, as well as Transportation, Engineering, and Building staff, and no concerns were raised.The height of the walkway from the street (not less than 8.5 metres) will not impede current or future transportation operations or maintenance of Breithaupt Street. In order to facilitate the transaction a by-law to close that portion of the walkway space (as set out on the stratified reference plan) will need to be passed. The surface area of Breithaupt Street between the bottom of the walkway to the center of the earth would remain as City road allowance, as it houses City infrastructure including storm, sanitary and water services. The easement is for the life of the development,and extinguishes when either BB2 or BB3 no longer exist. would be responsible for the construction, maintenance and repairs of the overhead walkway, as well as the removal and/or replacement at their cost. Inaddition,they road allowance as it relates to the air space. Easement Valuation Staff have obtained an appraisal for the easement of the 103.94 square metres of air rights.The Fair Market Value established for the easement is $64,600. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: delivery of core service. FINANCIAL IMPLICATIONS: The proceeds from the transaction will be deposited into the Land Reserve Account. COMMUNITY ENGAGEMENT: INFORM committee meeting. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authoritiesrelated to this matter 8 - 2 ACKNOWLEDGED BY: Justin Readman, General Manager, Development Services Department Attachments: Attachment A: 8 - 3 8 - 4