HomeMy WebLinkAboutCRPS-07-078 - Approval of Sale from MTE Properties - 520 Bingemans Centre Dr - 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- 078
Subject: Request Council Approval for MTE Properties Inc. to convey
lands to Roycom & Limited Partnership at 520 Bingemans
Centre Drive Pursuant to Restrictive Covenants; Part Lot 122,
G.C.T. being Parts 8, 9 and 10,PIan 58R-14324 and Part 4 on
Plan 58R-58R-14981
RECOMMENDATION:
"That, on June 4, 2007, the property described as Part Lot 122 G.C.T. being
Parts 8, 9 and 10 on Plan 58R-14324 and Part 4, Plan 58R-14981, and
municipally known as 520 Bingemans Centre Drive, Kitchener complied with the
restrictions set out in Instrument No. WR59470 being an Application to Annex
Restrictive Covenants, although grading has not yet been approved for the
property; 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 520 Bingemans Centre Drive.
BACKGROUND:
MTE purchased the subject property from the City of Kitchener on July 30, 2007. Restrictive
Covenants were registered against the title of the property by Instrument No. WR59470. 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. On July 29, 2005, MTE purchased an additional 24 metres to add to their
existing parcel of land, allowing them to accommodate their rapid growth. Recently, MTE and
Frontline Environmental merged and MTE now requires an additional 10,000 - 20,000 square
feet of building space. Due to the existing financing structure on the property (first, second &
third mortgages) it is not practical for MTE to finance the required expansion. MTE has agreed
to sell the whole property to a third party ~Roycom 7 Limited Partnership) who will purchase the
2
property and build the necessary addition to accommodate MTE's growth. MTE has entered
into a conditional Agreement of Purchase and Sale with a scheduled closing date around mid
July. MTE has confirmed that they will lease the subject property for a term of 15 years. The
City has received a request from MTE Properties, owner of 520 Bingemans Centre Drive to
seek Council approval for the above transaction. The day-to-day business of MTE will not
change as the owner intends to continue business operations on the subject property during the
term of the lease.
REPORT:
The appropriate staff have reviewed the request and the subject property complies with the
restrictions set out in Instrument No. WR59470, being an Application to Annex Restrictive
Covenants. Although grading has not yet been approved at this time, and there is a recent
building permit application outstanding (issued May 23, 2007}, staff have indicated that they
have no concerns with respect to the proposed conveyance.
FINANCIAL IMPLICATIONS:
N/A
COMMUNICATIONS:
N/A
CONCLUSION:
A building has been constructed and the current owner of the property is now conducting
business on the property. The owner requires additional space to continue to operate its
business and is willing to remain on the property and operate its business there through a lease.
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
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