HomeMy WebLinkAboutCAO-06-048 - Sale of Site 113 & Part of Site 114 in Huron Business Park1
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REPORT
Report To: Council/ Committee of the Whole
Date of Meeting: July 4, 2006
Submitted By: Rod Regier, Executive Director Economic Development
Prepared By: Kathy Weiss, Director Business Development
Wards} Involved: Ward 4
Date of Report: June 28, 2006
Report No.: CAO 06-048
Subject: SALE OF SITE 113 & PART OF SITE 114 IN HURON
BUSINESS PARK
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute an Agreement of Purchase and Sale
from 2046840 Ontario Inc., satisfactory to the City Solicitor, for their purchase of part of
Lot 14 on Registrar's Compiled Plan 1471, designated as Parts 4, 5, & 6 on Reference
Plan 58R-15361, being a parcel of land in the Huron Business Park, having an area of
approximately 1.98 acres at a price of $110,000 per acre, for a total purchase price of
$217,800.00 and;
That the Mayor and Clerk be hereby authorized to execute any other necessary
documentation required by the City Solicitor to complete this transaction.
BACKGROUND:
Council authorized staff to re-acquire the above property at 100% of original purchase price
from the previous owners in January 2005. Unfortunately the acquisition took much longer to
complete than anticipated and economic development staff were advised on June 22, 2006 by
Legal that the property came into City ownership on that day. In the meantime staff had good
faith discussions with representatives of 2046840 Ontario Inc. who were interested in
purchasing the land for $110,000/acre, which was the City rate for industrial land at that time.
REPORT:
The City has received an offer to purchase site 113 & part of Site 114 being 1.98 acres of Part
14, Reference Plan 58R-15361 in the Huron Business Park from 2046840 Ontario Inc. in which
the land will be used to accommodate the expansion of their existing company.
The proposed agreement of purchase and sale includes the covenants noted in the background
section of this report which includes the purchaser obligation to construct a minimum of 16,000
square feet building with construction commencing within one year from the date of closing. 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, 90% of the purchase price. There is a provision to allow the
opportunity for a one year extension, subject to an additional 10% deposit.
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 July 17, 2006 and the purchaser acknowledges they are
purchasing the property in an "as is" condition.
FINANCIAL IMPLICATIONS:
1.98 acres x $110,000/acre = $217,800
COMMUNICATIONS:
N/A
CONCLUSION:
Although Council approved an increase in industrial land to $195,000/acre in May 2006, staff
recommends this transaction be approved at the selling price of $110,000/acre based on
original discussions with the purchaser.
Kathy Weiss, Director
Business Development
Rod Regier, Executive Director
Economic Development