HomeMy WebLinkAboutCRPS-07-074 - Approval for Broda Enterprises to Convey Lands at 560 Bingemans Centre Drive Pursuant to Restrictive CovenantsREPORT
Report To: Committee of the Whole
Date of Meeting: June 11, 2007
Submitted By: Fiona McCrea,
Assistant City Solicitor
Prepared By: Fiona McCrea,
Assistant City Solicitor
Ward(s~ Involved: Ward 1: Bridgeport -Centre -John Smola
Date of Report: June 7, 2007
Report No.: CRPS - 07- 074
Subject: Request Council Approval for Broda Enterprises to convey
lands at 560 Bingemans Centre Drive Pursuant to Restrictive
Covenants; Part Lot 122, G.C.T. and Part Lot 123 G.C.T.
being Parts 1 & 4, Plan 58R-15289
RECOMMENDATION:
"That, on May 24, 2007, the property described as Part Lots 122 & 123 G.C.T.
being Parts 1 & 4 on Plan 58R-15289, and municipally known as 560 Bingemans
Centre Drive, Kitchener complied with the restrictions set out in Instrument No.
Wr206780 being an Application to Annex Restrictive Covenants, although the
property has not yet been approved for grading as a Site Certification has not yet
been received; and further,
That the Mayor and Clerk be authorized to execute any documentation approved
by the City Solicitor to show consent to the conveyance of the property
municipally known as 560 Bingemans Centre Drive through a leaseback
transaction.
BACKGROUND:
The subject property was purchased from the City of Kitchener on April 13, 2006. Restrictive
Covenants were registered against the title of the property by Instrument No. WR206780. As
part of the title control restrictions, Paragraph 2~f} states that no transfer or resale of the
property can take place within six years from the date of closing without the approval of the City
of Kitchener. The City has received a request from the owner of 560 Bingemans Centre Drive
to seek Council approval to sell the subject property with a lease back to the current owner.
The owner of the property has recently moved into the building to commence their business
activities. The parent company of the owner has been sold and they have indicated they do not
wish to own the real estate. If approved, the property will be sold and the current owner will
lease the property from the prospective owner. The day-to-day business of the current owner
2
will not change as the owner intends to continue business operations on the subject property
with business and employment opportunities proceeding under normal working conditions. We
have been advised that the term of the proposed lease is 20 years.
REPORT:
The appropriate staff have reviewed the request and although grading has not been approved at
this time, the plans were approved in October of 2006 and Engineering is simply awaiting site
certification from the engineering company working on the property. The subject property
complies with the restrictions set out in Instrument No. WR206780, an Application to Annex
Restrictive Covenants and staff have indicated that they have no concerns with respect to the
proposed conveyance.
FINANCIAL IMPLICATIONS:
N/A
COMMUNICATIONS:
N/A
CONCLUSION:
In view of the fact that a building was constructed and the current owner of the property is now
conducting business on the property, and will continue to operate its business on the property
through a leaseback transaction, I recommend that Council grant the approval for the proposed
conveyance.
If Council enacts the above recommendation, it would be appreciated if the Clerk would forward
a certified copy of Council's resolution as well as the confirmatory by-law to me.
FIONA McCREA,
Assistant City Solicitor
/tr