HomeMy WebLinkAboutFin & Corp Svcs - 2007-01-08FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JANUARY $, 2007 CITY OF KITCHENER
The Finance and Corporate Services Committee met this date, commencing at 2:35 p.m.
Present: Councillor B. Vrbanovic, Chair
Mayor C. Zehr and Councillors G. Lorentz, J. Gazzola, K. Galloway, J. Smola and C.
Weylie.
Staff: C. Ladd, Chief Administrative Officer
P. Houston, General Manager, Financial Services & City Treasurer
R. Browning, General Manager, Development & Technical Services
A. Pappert, General Manager, Community Services
T. Speck, General Manager, Corporate Services
D. Chapman, Director, Financial Planning & Reporting
S. Adams, Director of Community & Corporate Planning
R. Gosse, Director of Legislated Services & City Clerk
R. Regier, Executive Director of Economic Development
K. Weiss, Director of Business Development
F. McCrea, Assistant City Solicitor
P. Harris, Manager of Licensing
V. Bradford, Business Development Officer
J. Billett, Committee Administrator
1. FIN-07-003 -MONTHLY GRANT ALLOCATIONS PRIOR TO 2007 BUDGET DAY
The Committee considered Financial Services Department report FIN-07-003, dated
December 22, 2006 regarding authorization for continuation of monthly payments to groups
currently receiving grants, pending approval of the 2007 budget.
On motion by Councillor G. Lorentz -
it was resolved:
"That the following grants be paid on a monthly basis until the 2007 budget is approved:
Belmont Improvement Area $ 2,083.00
Centre in the Square 104,115.00
Downtown Improvement Area 45,416.00
Greater Kitchener Waterloo Chamber -Health Care Recruitment 1,666.00
Homer Watson Foundation (Payroll) 13,683.00
House of Friendship -Chandler 2,991.00
House of Friendship - Kingsdale 4,857.00
Kitchener Horticultural Society 14,281.00
Kitchener Musical Society 1,416.00
Kitchener Public Library -January 1,000,000.00
Kitchener Public Library -February 625,000.00
Kitchener Public Library -March 625,000.00
Kitchener Public Library -April 625,000.00
Kitchener Waterloo Social Planning Council 6,765.00
Kitchener Waterloo Symphony Orchestra 13,444.75
K-W Art Gallery 13,648.00
K-W Drum Corps Association 2,197.00
K-W Oktoberfest Inc. 2,626.00;
and further,
That final budget day be rescheduled from March 19, 2007 to April 16, 2007."
2. DELEGATION PRESENTATION -REQUEST FOR EXEMPTION TO C.40$ OF THE
MUNICIPAL CODE (ANIMALS -REGULATION)
- KEEPING OF RABBITS
This matter was deferred to the January 29, 2007 Finance and Corporate Services Committee
meeting on request of the delegate, Joanne Barkclay, who was unable to attend the meeting
this date.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JANUARY $, 2007 - 2 - CITY OF KITCHENER
3. CAO-07-001 -OFFERS TO PURCHASE -LOT $A
- GRAND RIVER WEST BUSINESS PARK
The Committee considered Chief Administrator's Office report CAO-07-001, dated December
21, 2006 concerning three offers to purchase Lot 8A in the Grand River West Business Park.
The competing companies are: Knapp Fasteners Incorporated, in Trust, Waterloo;
Woodhouse Contracting Limited, Kitchener; and MacNaughton, Hermsen, Britton, Clarkson
Planning Limited (MHBC), in Trust, Kitchener. All three companies are seeking to expand
their businesses and based on an analysis of the offers, staff recommended acceptance of the
offer from MHBC.
Mr. J. Knapp, Knapp Fasteners, advised that his company is planning expansion to meet
growth demands of the business and the subject lot is desired as it meets their criteria. He
noted that the subject lot is the only location in Kitchener suitable to their needs and if the offer
is not accepted they will have to look outside the City. He asked that the Committee have an
open mind in considering all types of business as opposed to focusing on only one sector.
Mr. Knapp responded to questions, advising that a 25,000 square foot upscale building is
initially proposed with plans for future expansion of up to 45,000 square feet. He noted that
the value of the initial building is estimated at $2.5M and the company's realtor, John Jessop,
has agreed to waive the City's portion of the real estate commission.
Mr. P. Britton, MHBC, advised that his consulting firm has outgrown its existing facility and
intends to consolidate and expand its services to include urban design and landscaping. To
support the additional services, their employee complement will initially increase from 25 to 30,
and up to 40 over the next two years. They propose to build a campus style setting of 2 to 3
buildings up to a maximum of 36,000 square feet that, in addition to meeting their needs, will
also be used to attract research/development and laboratory firms in support of the City's
economic development strategy for the biotech/pharma cluster. He added that the firm will
also work with City staff toward an adaptive re-use of their existing facility that meets the
needs of the biotech/pharma cluster sector.
Mr. Britton responded to questions, advising that initially a 20,000 square foot building is
proposed, the value of which is estimated at $3M with the intent to have a stand alone, owner-
occupied signature building. He added that the proposed location is important in that it meets
the desired intent to remain owner-occupied and can accommodate sufficient on-site parking
for the range of services provided by the firm.
No delegation attended in support of the offer from Woodhouse Contracting Limited.
Councillor B. Vrbanovic questioned if an analysis of potential tax revenue as a result of each
proposal had been completed. Mr. R. Regier advised that their was insufficient information to
provide such an estimate but suggested all would be roughly comparable. Ms. P. Houston
added that all three would be in the commercial class.
In reference to a previous offer to purchase the subject lot, Ms. K. Weiss advised that the
prospective purchaser had requested a change in covenants which staff were not in
agreement with. The provision at issue provided that if the purchaser wished to sell the parcel
of land within the first six years they would require Council approval. Ms. F. McCrea advised
that this is a title control provision applying to all City-owned industrial lands. She noted that
the purchaser was advised that staff would not support a recommendation to Council to
amend the covenants by omitting this provision and the purchaser chose not to proceed
further.
In response to questions, Mr. R. Regier commented that depletion of the City's supply of
employment lands is making it more difficult to accommodate local businesses. He noted that
lands on Shirley Avenue may offer the other 2 businesses some alternative, along with one lot
remaining in the Huron Business Park and staff is also exploring options with developers of
privately owned lands. He stated that all three businesses are reputable and meet zoning
requirements; however, the offer from MHBC promises a stronger return to the City as well as
support for the emerging biotech/pharma cluster sector.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JANUARY $, 2007 - 3 - CITY OF KITCHENER
3. CAO-07-001 -OFFERS TO PURCHASE -LOT $A
- GRAND RIVER WEST BUSINESS PARK tCONT'D)
Mayor C. Zehr commented that while all three businesses have solid reputations as
community builders it was important to maintain integrity of the process. He suggested that
MHBC's proposal fulfilled the City's obligation to support expansion of Kitchener businesses,
as well as provides the best financial return to the City and should be accepted as the best
offer.
Councillor B. Vrbanovic requested that in future staff consider adding criteria to provide for
such things as estimated assessment values, employee total payroll and diversity in the work
force. Ms. P. Houston advised that estimated assessed values are not feasible as the
Municipal Property Assessment Corporation would not provide quotes on proposals because
of the number of criteria that cannot be defined until a structure is built.
At the request of staff, it was agreed to amend the recommendation contained in report CAO-
07-001 by deleting the phrase "part of part 12 on Registered Reference Plan 58R14324" and
replacing it with "parts 2 and 3 on Registered Reference Plan 58R15289", to correctly identify
the legal description of the subject lot.
On motion by Mayor C. Zehr -
it was resolved:
"That the conditional Offer to Purchase from MacNaughten, Hermsen, Britton, Clarkson
Planning Limited in Trust, be accepted for parts 2 and 3 on Registered Reference Plan
58R15289, being an irregular shaped parcel of land in the Grand River West Business
Park, having an area of approximately 2.56 acres, at a price of $200,000 an acre, for a
total purchase price of $512,000, identified as Lot 8A on Schedule `A' and detail of the
proposal outlined in Appendix `B', as attached to Chief Administrator's Office report CAO-
07-001; and further,
That the Mayor and Clerk be authorized to execute any other necessary documentation
required by the City Solicitor to complete the sale transaction."
4. CRPS-07-001 -RELOCATION OF K-W BINGO CENTRE TO 501 KRUG STREET
The Committee considered Corporate Services Department report CRPS-07-001, dated
December 18, 2006 concerning an application by Pentagon Gaming Partners Inc. to the
Alcohol and Gaming Commission of Ontario to allow relocation of the K-W Bingo Centre from
29 King Street East to 501 Krug Street.
On motion by Councillor G. Lorentz -
it was resolved:
"That the request by Pentagon Gaming Partners Inc. to relocate the K-W Bingo Centre
from 29 King Street East to 501 Krug Street be approved."
5. CSD-07-003 -APPOINTMENTS TO THE GRAND RIVER ACCESSIBILITY ADVISORY
COMMITTEE
The Committee considered Community Services Department report CSD-07-003, dated
December 19, 2006 regarding appointments to the Grand River Accessibility Advisory
Committee.
On motion by Councillor K. Galloway -
it was resolved:
"That Brad Ullner, Mary Beth Hunter and Gordon Cummer, be appointed to the Grand
River Accessibility Advisory Committee (GRAAC) fora 3 year term ending December 31,
2009."
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JANUARY $, 2007 - 4 - CITY OF KITCHENER
6. ADJOURNMENT
On motion, the meeting adjourned at 3:20 p.m.
Janet Billett, AMCT
Committee Administrator