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HomeMy WebLinkAboutDTS-06-064 - Transfer of the Property 521 King St W, Agreement1 Kd LR Development& Technical Services 6 REPORT Report To: Finance and Corporate Services Committee Date of Meeting: March 27, 2006 Submitted By: Rob Browning, General Manager of Development and Technical Services /Fire Chief x2500 Prepared By: Rob Browning, General Manager of Development and Technical Services /Fire Chief x2500 Ward(s) Involved: All Date of Report: March 23, 2006 Report No.: DTS 06 -064 Subject: AGREEMENT BETWEEN THE UNIVERSITY OF WATERLOO AND THE CITY OF KITCHENER FOR THE TRANSFER OF THE PROPERTY KNOWN AS 521 KING STREET WEST RECOMMENDATION: That the Mayor and Clerk be authorized to execute the necessary documentation with the University of Waterloo for the staged transfer of the property known as 521 King Street West, satisfactory to the City Solicitor. BACKGROUND: The City and the University of Waterloo have been working collaboratively to locate the second School of Pharmacy for Ontario in downtown Kitchener. REPORT: The agreement between the City of Kitchener and the University of Waterloo for the transfer of the property known as 521 King Street West is the culmination of the efforts of many parties to make the School of Pharmacy a reality. It is one of the last pieces of the original negotiation on this project between the parties. The agreement essentially defines how the transfer of the $30M grant from the City to the University will occur and on what timelines. It also outlines how the property will be transferred to the University. The property is divided into three parts and over a phased period, it will be transferred to the University. The salient points of the agreement are summarized in Schedule `A' attached hereto. The University is going through the last steps in Site Plan approval and it is expected that the first building permits will be issued in early April. This agreement will also be tabled with the University's Board of Governors in early April for its approval. FINANCIAL IMPLICATIONS: The agreement outlines how and when the $30M will be granted to the University from the Economic Development Investment Fund COMMUNICATIONS: There have already been many open house and presentations to the Council and the community about this project. CONCLUSION: By approving the execution of this agreement, Council is moving this project one step closer to fruition. This is a significant project for the City of Kitchener which will bring a new energy to its core. f..o . Rob Browning General Manager of Development and Technical Services /Fire Chief SCHEDULE `A' SUMMARY OF AGREEMENT WITH UNIVERSITY OF WATERLOO • the University has identified a need and developed a vision to locate a Campus primarily for teaching and research with associated accessory uses in Downtown Kitchener; • the first phase of the Campus will be focussed on health sciences and anchored by a School of Pharmacy and it is anticipated that the said School of Pharmacy will attract collateral enterprises robust in teaching and research; • the City's economic development strategy includes a focus on building an education and knowledge creation cluster in the downtown, which will produce economic and community benefits for the City; • the Epton site will be conveyed to the University in 3 stages, beginning with the front portion along the King and Victoria Street frontages, once the site is remediated and a risk based Record of Site Condition has been acknowledged by the Ministry of the Environment; • pending the conveyance of the second and third stages and development of the Campus buildings the University may use parts of the site for ancillary uses such as parking • the City will indemnify the University in the event it is called upon to pay any damages for losses as a result of contamination proven to have originated from the site • the City will provide a grant of $30Million to the University, in addition to the Epton lands, for capital funding for phase one of the Campus project including preparation of the site for construction activities, construction of a 120,000 (approximately) square foot building, site improvements and parking, acquisition of adjacent lands and the City's cost to obtain a risk based Record of Site Condition for portions of the site. The grant will be disbursed in stages in accordance with an agreed upon work plan • the City will take the necessary steps to have in place the appropriate zoning for the Epton site and ensure there are adequate municipal services to the property line. • As appropriate, the City will assist the University in advocating for funding for the Campus from government sources • Agrees to establish and to continuously operate the proposed Campus on the Epton site hereinbefore described in Downtown Kitchener. Should the University cease to use the premises for the Campus, the title to the Epton site conveyed to it pursuant to this Agreement will be transferred to a registered charitable organization as the City may direct; • Agrees to use its best efforts to attract to the Campus collateral enterprises, robust in teaching and research; • Agrees to secure the funding necessary to establish and operate the Campus prior to the Grant monies being advanced; • Agrees to be responsible for the project management and construction of the Campus; • Agrees to work towards the establishment in future phases of a full university campus, primarily for teaching and research with associated accessory uses, with multiple disciplines in Downtown Kitchener. • Agrees to provide the City with an unregistered right of way, running south to connect up to the parking lot operated by the City at the former Ontario Seed site, located at 68 Victoria Street South, for the purpose of vehicular and pedestrian access to the parking lot, said right of way to be retained by the City for as long as the City leases the municipal parking lot.