HomeMy WebLinkAboutCSD-06-083 - McLennan Park - Lease Agreement with the Regional Municipality of Waterloo
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Report To:
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Mayor and Members of Council
September 25, 2006
Fiona M. McCrea, Assistant City Solicitor
Dan Ritz, Supervisor of Design and Development, Community
Services
Fiona M. McCrea, Assistant City Solicitor (Ext. 2266)
Dan Ritz, Superivsor of Design and Development, Community
Services (Ext. 2348)
Ward 4
June 12, 2006
CSD-06-083
MCLENNAN PARK - LEASE AGREEMENT WITH THE
REGIONAL MUNICIPALITY OF WATERLOO
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute a lease agreement and any related
documentation, for the surface rights of the Lands known as McLennan Park (formerly a Kitchener
municipal landfill site), near the corner of Ottawa Street South and Strasburg Road, fronting on
Ottawa Street South and extending to Blackhorne Drive, with The Regional Municipality of
Waterloo, for a term of forty-nine (49) years, on terms and conditions satisfactory to the City
Solicitor.
EXECUTIVE SUMMARY:
Further to Council's authorization [CSD-03-095], staff have negotiated a lease of the surface rights only of
McLennan Park to permit its development and use as a public park in accordance with approved Concept
B, in principle, set out in the McLennan Park Master Plan (approved on September 15, 2003). The
Regional Municipality of Waterloo (the "Region") will continue to responsible for the sub-surface of the
Lands. The lease is for a term of forty-nine (49) years and the rental being paid by the City is One ($1.00)
Dollar per year. Development of the park is proceeding with detailed planning and design and anticipated
construction commencement of the toboggan hill, Ottawa Street entrance & parking in Fall 2006.
BACKGROUND:
On or about September 15, 2003 Council approved the McLennan Park Master Plan and Concept B
outlined therein, in principle, for the development of the park. Council directed staff to negotiate a lease
agreement with the Region [CSD-03-095]. Negotiations with Regional legal and engineering staff ensued
when the timing for development of the park was finalized and funds allocated in the 2006-2015 capital
budget. City and Regional staff have reached an agreement on the terms and conditions of the lease, a
copy of which is attached.
REPORT:
The Lands known as McLennan Park were formerly the Ottawa Street Landfill site. The Region assumed
all responsibility for these lands on or about 1973. Since that time they have carried out all required
environmental monitoring and will continue to do so with the facilities currently located on site. Pursuant
to the Environmental Protection Act a former landfill may be re-developed without Ministerial approval
after the expiry of twenty-five (25) years from the closure of the landfill. The subject lands ceased being
used as a landfill in or about July/August 1976.
The proposed lease agreement provides that the City will lease only the surface of the lands. The Region
will continue to have responsibility and control over the sub-surface. All improvements to the lands that
require excavating below the surface will require the approval of the Region including submission of all
necessary engineering reports, designs and specifications. Wherever possible the City will construct
Improvements without excavating below the surface and by bringing additional fill material onto the
Premises. The City will be responsible for any issues directly arising from its park use and the
construction of any improvements on the lands or below the subsurface, otherwise the Region is
responsible for the subsurface. The term of the lease is forty-nine (49) years and the annual rental
payable by the City is One ($1.00) Dollar. The City shall be responsible to pay all realty taxes applicable
to the Lands and all utilities (other than utilities in respect of the Region's Facilities located on the Lands).
The lease agreement includes mutual obligations for liability insurance and indemnities for damages in
respect of the City's use of the surface as a park including any damages arising from the construction of
improvements on or below the surface by the City and the Region's use and maintenance of the sub-
surface in its present condition.
A portion of the proposed park area is bisected by a hydro corridor owned by Ontario Hydro. A current
lease agreement negotiated in August 1975 and renewed in August 1986 (expiring August 2011) allows
for general trail use and maintenance access. Future negotiations with Ontario Hydro will propose
extending the current lease and expand on internal road, parking and park use within the corridor.
FINANCIAL IMPLICATIONS:
The annual rental, property taxes, utilities and park maintenance will be included in the operations budget
of McLennan Park.
Funds have been allocated within the 2006-2015 Capital Budget forecast for the development of the park
facilities.
COMMUNICATIONS:
This lease will be considered by Regional Council on October 11 th, 2006. Once the lease is approved
and authorized by Kitchener City Council the Region's surplus designation process will then be carried
with an anticipated lease commencement date of November 1,2006.
Fiona M. McCrea
Assistant City Solicitor
Dan Ritz
Supervisor of Design and Development