HomeMy WebLinkAboutCAO-07-056 - Price Increase for City-owned Industrial Land
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REPORT
Report To: Finance and Corporate Services Committee
Date of Meeting: December 3, 2007
Submitted By: Rod Regier, Executive Director, Economic Development
Prepared By: Kathy Weiss, Director Business Development
Wards}Involved: All Wards
Date of Report: November 14, 2007
Report No.: CAO-07-056
Subject: Price Increase for City Owned Industrial Land
RECOMMENDATION:
That the City of Kitchener increases the current selling price of City owned industrial land from
$195,000/acre to $250,000/acre.
BACKGROUND:
In April 2006, Council approved the increase of industrial land from $110,000/acre to $195,000/
acre in order to be competitive as land prices had increased to this amount throughout the
Region and surrounding cities.
At that time, the Grand River West Business Park held the remaining city owned lands which
equated to approx. 8 acres and they have since been sold.
REPORT:
As a result of the new location of the Consolidated Maintenance Facility, the City of Kitchener
has increased the industrial land inventory through the assembly of the former Maple Leaf
Lands on Strasburg Road and some surplus portions of land from the existing maintenance
facilities available for sale in 2008.
There still continues to be a demand for industrial land in the City of Kitchener. Increasing the
municipally owned land price to $250,000 will allow the city to remain competitive within the
Region and surrounding area in which current industrial land prices range from $215,000 to
$265,000 an acre as Illustrated below:
1.3 acres $247,000/acre 125 Fleming Dr. Cambridge
19 acres $255,000/acre 605 Beaverdale Rd. Cambridge
8.37 acres $295,000/acre 1800 Victoria St. (GRBP) Kitchener
13 acres $220,000/acre GRWBP (Twin City Dry Storage) Kitchener
50 acres $250,000/acre GRWBP (Rockway Holdings) Kitchener
Trammell Crow, purchasers of the Michelin Lands in Kitchener expect to market the industrial
land portion of the site in 2008/2009 with an asking price of $300,000/acre.
Guelph currently has no land, but the land they expect to come available next year will be listed
at $280,000 - $300,000/acre for industrial.
FINANCIAL IMPLICATIONS:
Former Maple Leaf Lands
A business case for the property consisting of approximately 28 acres will be developed to
determine the best methodology for its disposal to meet the demand for industrial lots, maximize
employment opportunities and provide a maximum return to the city.
Total Profit: TBD
Battler Road Lands
Immediate surplus - 2 acres $ $250,000/acre $ 500,000
Severance (5,500)
Site Improvements (13,000)
Total Profit $ 481,500
COMMUNICATIONS:
N/A
Rod Regier
Executive Director, Economic Development
Kathy Weiss
Director, Business Development