HomeMy WebLinkAboutCAO-05-047 - Sale of .925 Acres of Site 164, Strasburg Road - Huron Business Park
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Report To:
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Councillor B. Vrbanovic, Chair and Members of the Finance
and Corporate Services Committee
December 5, 2005
Hans Gross, Director, Project Administration and Economic
Investment
Rob Morgan, Capital Investment Advisor
South Ward - 4
November 21, 2005
CAO 05-047
SALE OF .925 ACRES OF SITE 164, STRASBURG ROAD -
HURON BUSINESS PARK
RECOMMENDATION:
That Council accept the Offer to Purchase from J.T. Bakeries Inc. for approximately .925
acres of the City's Site 164 on Strasburg Road in the Huron Business Park at the price
per acre of $125,000, for a total purchase price of approximately $115,625.00
That the Mayor and Clerk be hereby authorized to execute any other necessary
documentation required by the City Solicitor to complete the transaction.
BACKGROUND:
In February of 2001 J.T Bakeries purchased 5.62 acres of industrial land from the City for
construction of a 70,000 square foot industrial bakery. The company has experienced a
significant increase in demand from throughout North America as well as the U.K and as such
needs to expand their facility. They wish to purchase .925 acres from the City's Site 164 as a lot
addition to their existing site to facilitate a 50,000 square foot expansion.
REPORT:
Site 164 on Strasburg Road in the Huron Business Park was taken off the City's inventory of
available industrial lots in mid 2004 as a result of the potential use of the land for the
Consolidated Maintenance Facility. The City purchased the abutting parcel of land from Maple
Leaf Foods with the intent of consolidating the two properties to allow sufficient land to
accommodate the maintenance facility and all of its required storage needs.
The purchase of the Maple Leaf land had a dual purpose; in the event that the CMF was located
elsewhere, the intent was for the City to develop the lands into saleable parcels for industrial
purposes.
In consideration of the fact that the land subject to this offer was removed from the City's
inventory of available industrial land for the above mentioned purpose, staff have consulted with
members of the CMF Steering Committee to determine whether the sale of the .925 acres
would be detrimental to the overall development of the site. After reviewing JT Bakeries
construction plans as well as visiting the site, the members of the committee felt that the sale of
this parcel would not adversely impact their site should the CMF be located on the remaining
lands.
The City Solicitor has reviewed the Offer to Purchase.
FINANCIAL IMPLICATIONS:
.925 acres @ $125,000/ acre = $115,625.00 paid to the City
CONCLUSION:
Staff recommend that Council accept the Offer to Purchase from J.T. Bakeries Inc. as the land
will allow a local company to grow to accommodate its demand.
Rob Morgan B.E.S.
Capital Investment Advisor
Hans Gross P.Eng
Director, Project Administration and
Economic Investment
cc. Carla Ladd, CAO
Ken Currier, Director of Operations
Fiona Mcrea, Legal
Kathy Weiss, Business Development