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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 /tr