HomeMy WebLinkAboutCAO-06-016 - Repurchase Lot 147 in the Huron Business Park1
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REPORT
Report To: Finance and Corporate Services
Date of Meeting: May 1, 2006
Submitted By: Rod Regier, Executive Director, Econ. Dev.
Prepared By: Kathy Weiss, Director, Business Development
Ward(s) Involved: Ward 4
Date of Report: April 25, 2006
Report No.: CAO 06-016
Subject: REPURCHASE LOT 147 IN THE HURON BUSINESS PARK
RECOMMENDATION:
That council authorize the repurchase of Lot 147 being composed of Parts 16 & 20 on
Reference Plan 58R-7426 from 521638 ONTARIO LIMITED for the sum of $147,200.00 on
terms and conditions satisfactory of the City Solicitor;
And that the Mayor and Clerk are hereby authorized to execute any other necessary
documentation required by the City Solicitor.
REPORT:
On May 24, 2003, Council approved the sale of lot 147 on Washburn Drive to 521638 Ontario
Inc. This site has as an approximate area of 1.84 acres and was purchased for $80,000 an acre.
The proposed use was to expand their Moving and Storage business requiring the construction
of a 10,000 square foot building to commence within a year of purchase.
In September 2005, staff received a letter from the owner of 521638 Ontario Inc. informing them
of a material change in their core business which necessitated a change in the building design,
layout of the lot and staff compliment, thereby requesting an extension of the building covenants
by one year.
Prior to a report coming to council, staff was then notified by the owner of 521638 Ontario Inc.
that the sale of the business was under negotiations and pending the outcome would result in
the city repurchasing the land.
The original offer to purchase allows the City to repurchase the lands at 90 percent of the
purchase price, however, given the circumstances and the fact that the taxes have been paid
to-date, staff are willing to recommend repurchasing the land at 100 percent of the purchase
price.
As a result of the shortage and demand for industrial land in the City of Kitchener, staff is
prepared to submit an ad in the Record for the sale of this site in which selection will be based
on the criteria of best use, # of employees and value of assessment.
FINANCIAL IMPLICATIONS:
Option #1 - no land price increase
Repurchase price @ $ 80,000/ac $147,200
Selling price @ $125,000/ac 230 000
Increased City Revenue $ 82,800
Option #2-land price increase
Repurchase price ~ $ 80,000/ac $147,200
Selling price ~ $195,000/ac 358 800
Increased City Revenue $ 211,600
COMMUNICATIONS:
N/A
Kathy Weiss
Director Business Development
Rod Regier
Executive Director, Econ. Dev.