HomeMy WebLinkAboutCAO-06-015 - Sale of Lot 8A, Grand River West Business Park1
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REPORT
Report To: Finance and Corporate Services Committee
Date of Meeting: March 6, 2006
Submitted By: Rod Regier, Executive Director of Economic Development
Prepared By: Valerie Bradford, Business Development OFficer
741-2367
Ward(s) Involved: Bridgeport -Centre
Date of Report: February 27, 2006
Report No.: CAO-06-15
Subject: Sale of Lot 8A, Grand River West Buseinss Park
RECOMMENDATION:
That Council accept the conditional Offer to Purchase from Melloul Blarney in Trust for a
corporation to be formed, for part of Part 12 on Registered Reference plan 58R14324,
being an irregular shaped parcel of land in the Grand River West Business Park, having
an area of approximately 2.56 acres, at a price of $150,000 per acre, for a total purchase
price of $384,000.00, and being identified as Proposed Lot 8A on Schedule B attached;
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.
BACKGROUND:
Lot 8A was created by the severance of the former Lot 8. This is an irregular-shaped 2.56 acre
parcel, located on Bingemans Centre Drive, and is the last remaining unsold lot in the Grand
River West Business Park.
The purchaser had previously expressed an interest in Lot 2 of the Grand River West Business
Park, however, it was acquired by The Brick Brewing Company, together with Lot 1, in order to
accommodate their warehouse facility.
REPORT:
The City has received an offer to purchase for 2.56 acres of Part 12, Reference Plan 58R-14324
in the Grand River West Business Park. Covenants require a minimum building size of 20,480
square feet. The purchaser proposes to construct a 40,000 square foot manufacturing
establishment, with 15% of the gross floor are being devoted to office use The balance of the
building will be subdivided to accommodate light manufacturing uses, as required.
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 April 21, 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 prepared the Offer to Purchase.
FINANCIAL IMPLICATIONS:
2.56 acres @ $150,000/acre $384,000
3% commission 11 520
Net Revenue $372,480
COMMUNICATIONS:
No public consultation has been undertaken.
CONCLUSION:
The sale of this lot concludes all land sales in the Grand River West Business Park. The sale of
land in this development were completed within the projected timelines as per the marketing
strategy presented to Council in March 2004.
Valerie Bradford
Business Development Officer
Kathy Weiss
Director, Business Development
Rod Regier
Executive Director, Economic Development
Attachments:
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
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