HomeMy WebLinkAboutCAO-06-034 - Price Increase for City Owned Industrial Land1
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REPORT
Report To: finance and Corporate Services
Date of Meeting: May 1, 2006
Submitted By: Rod Regier, Executive Director, Economic Development
Prepared By: Kathy Weiss, Director, Business Development
Ward(s) Involved: All
Date of Report: April 25, 2006
Report No.: CAO 06-034
Subject: Price Increase for City Owned Industrial Land
RECOMMENDATION:
That the City of Kitchener increase the current selling price of City owned industrial land from
$125, OOO/acre to $195, OOOlacre
BACKGROUND:
In 2002, Council approved the increase of industrial land from $80,000/acre to $110,000 acre in
order to be competitive as industrial land prices throughout the Region and surrounding cities
had also increased to this amount.
Upon completion of the Grand River West Business Park in 2004, the Cities of Cambridge and
Waterloo as well as surrounding cities increased their land prices once again and as a result
Kitchener Council approved an increase from $110,000lac to $125,000/ac for city owned
industrial land.
REPORT:
The privately owned lands in the Grand River West Business Park are current being sold in the
price range of $195,000/acre to $225,000/acre. The cities of Cambridge and Waterloo are also
selling Industrial land in the price range of $195,000/acre to $225,000/acre while the city of
Guelph selling industrial land for $250,000/acre.
The City of Kitchener has one 2 acre site left available in the Grand River West Business Park
as well as a repurchase site of 1.84 acres. Staff feel that increasing the city owned industrial
land in the City of Kitchener to $195,000/ac will allow us to be competitive and profitable in our
industrial land investment.
FINANCIAL IMPLICATIONS:
GRWBP
2 acres ~ $195,000/ac = $390,000
Lot 147 buy-back
1.84 acres @ $195,000/ac = $358,800
less buy-back 147 200
Total Profit $ 211,600
COMMUNICATIONS:
N/A
Kathy Weiss
Director, Business Development
Rod Regier
Executive Director, Econ. Dev