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HomeMy WebLinkAboutDTS-07-184 - Sale of 278 Clifton RdREPORT Report To: Special Council Date of Meeting: November 19, 2007 Submitted By: James A. Witmer, Director of Building and Environmental Remediation Prepared By: James A. Witmer, Director of Building and Environmental Remediation Ward(s) Involved: Bridgeport -Centre Date of Report: November 15, 2007 Report No.: DTS 07-184 Subject: SALE OF 278 CLIFTON ROAD RECOMMENDATION: That Council accept the conditional Offer to Purchase 278 Clifton Road, legally described as Plan 666 PT Lot 96, at the total purchase price of $220,00.00, and further; That the Mayor and Clerk be hereby authorized to execute any other necessary documentation required by the City Solicitor to complete the sale transaction. BACKGROUND: In July 2006 Council authorized staff to retain the services of an environmental consultant and contractor to complete an environmental remediation of the properties at 270, 274, 276, 278 and 280 Clifton Road and 834 Guelph Street where some ash fill had been placed in the 1940's or earlier. As part of the remediation, 4 of the residential units (2 semi-detached buildings) were required to be demolished. Of the owners impacted by this demolition, one of these property owners decided to sell his unit to the City (#278). The remaining property owners decided to retain ownership and the City undertook to have replacement semi-detached units constructed on their lands. Council also authorized the construction of the remaining half of the semi-detached unit at #278 Clifton Road, which would be sold upon completion of the remediation. The unit has now been completed and has been considered surplus to the City's needs. REPORT: The City of Kitchener utilized the services of Coldwell Banker Peter Benninger Realty the City's contracted realtor to sell the house on the City's behalf. Two offers were received, one for $212,500.00 and the second and recommended offer of $220,000.00 which, is above the listing price of $219,900.00. The proposed closing date is December 7, 2007 or such date to be agreed upon by the parties respective solicitors. The offer is conditional until November 21S' 2007 on the purchaser obtaining the required financing. The City Solicitor has reviewed the Offer to Purchase. FINANCIAL IMPLICATIONS: Sale Price $220,000 Real Estate 4% commission (net of GST) 8( ,800) Net Revenue $211,200 The net proceeds received from the sale will be put back into the Clifton Road Project Account 715095. Respectfully submitted, James A. Witmer, Director of Building and Environmental Remediation Cc: Carla Ladd, CAO Lesley MacDonald, Director of Legal Services Laurier Proulx, Director of Facilities Management Rob Morgan, Capital Investment Advisor