HomeMy WebLinkAboutCAO-06-008 - Sale of Part of Lt 8 - Grand River W Business Park - Bingemans Centre Dr - Pt of Pt 12, Ref Plan 58R-143241
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REPORT
Report To: Finance and Corporate Services Committee
Date of Meeting: January 23, 2006
Submitted By: Rod Regier, Executive Director of Economic Development
Prepared By: Valerie Bradfird, Business Development Officer
741-2367
Wards}Involved: Bridgeport -Centre
Date of Report: January 16, 2006
Report No.: CAO-06-008
Subject: SALE OF PART OF LOT 8, IN THE GRAND RIVER WEST
BUSINESS PARK, BINGEMANS CENTRE DRIVE -PART
OF PART 12, REGISTERED REFERENCE PLAN 58R-14324
RECOMMENDATION:
That Council accept the conditional Offer to Purchase from Broda Enterprises Inc. for
part of Part 12 on Registered Reference Plan 58R-14324, being a parcel of land in the
Grand River West Business Park, having an area of approximately 4.31 acres at a price of
$150,000 per acre, for a total purchase price of $656,500.00. This includes an additional
sum of $10,000 to cover severance and service costs to accommodate the severance of
the remaining 2.56 acres which will then be sold and;
That the Mayor and Clerk be hereby authorized to execute any other necessary
documentation required by the City Solicitor to complete the sale transaction.
INTRODUCTION:
The City of Kitchener has received an offer to purchase for 4.31 acres in Lot 8 in the Grand
River West Business Park from Broda Enterprises Inc, who will be relocating from Waterloo.
BACKGROUND:
Lot 8 is the last parcel left in the Grand River West Business Park. It is 6.87 acres, zoned B3
with an irregular shape. It is located on the curve of Bingemans Centre Drive, adjacent to
Shirley Drive and at the easterly entrance to the business park .
The seven 2 acre sites zoned B2 were sold within 6 months of marketing however this 6.87 acre
parcel has been slower to sell.
REPORT:
The City has received an offer to purchase for 4.31 acres of Part 12, Reference Plan 58R-14324
in the Grand River West Business Park. This is an irregular-shaped parcel, located on
Bingemans Centre Drive, adjacent to Shirley Drive, and at the easterly entrance to the Grand
River West Business Park. Part 12, also known as Lot 8, is the last remaining unsold lot in the
Grand River West Business Park, and this proposed sale will require a severance resulting in
2.56 acre and a 4.31 acre lot.
Covenants require a minimum building size of a 34,480 square feet. The purchaser proposes to
construct a 40,000 square foot manufacturing establishment, with a planned
27,000 square foot expansion. Broda Enterprises is a manufacturer of medical chairs with 55
employees located on Philip Street in Waterloo. The labour force consists of R&D,
manufacturing, and sales with a increased labour force that will include, engineering,
telemarketing, I.T.
The property is subject to site plan control through a Section 41 Development Agreement.
Elevation drawings will be reviewed and approved in accordance with the site plan approval
process.
The proposed closing date is on or before March 15, 2006. A buy back option is included if the
purchaser does not commence construction within one year from the date of closing, or if the
building is not completed and occupied within two years. The City will refund without interest,
85% of the purchase price. There is a provision to allow the opportunity for a one year
extension at the start and completion dates of construction, subject to an additional 10%
deposit.
The City Solicitor has reviewed the Offer to Purchase.
FINANCIAL IMPLICATIONS:
4.8 acres @ $150,OOOlacre $646,500
Severance/Service costs 10,000
City pays 3% commission 19 695
Net Revenue $636,805
COMMUNICATIONS:
No public consultation has been undertaken.
CONCLUSION:
This proposed development will create 55 jobs in the City of Kitchener with planned growth in
the near future. This medical-related use supports economic developments' vision to establish
a BioLink Corridor along Victoria Street continuing to the City of Guelph. Severing the lot also
allows the City the opportunity to quickly sell the remaining 2.56 acres.
Valerie Bradford
Business Development
Rod Regier
Executive Director, Economic Development
Attac:hmPnt
Kathy Weiss
Director, Business Development
Appendix "A" -Grand River West Business Park Location Map
Appendix "B" - Offer to Purchase
Cc: Carla Ladd, CAO
Lesley MacDonald, Director of Legal Services
Fiona McCrea, City Solicitor