HomeMy WebLinkAboutCRPS-08-020 - Conveyance of 50 Washburn Drive & Approval for Existing Tenant to Remain on Site Pursuant to Restrictive Covenants-1-
REPORT
Report To: Committee of the Whole
Date of Meeting: February 4, 2008
Submitted By: Lesley MacDonald, Director of
Legal Services & City Solicitor
Prepared By: Lesley MacDonald, Director of
Legal Services & City Solicitor
Ward(s~ Involved: Ward 4: South Ward -Kelly Galloway
Date of Report: January 31, 2008
Report No.: CRPS - 08- 020
Subject: Request for Approval for conveyance of 50 Washburn Drive,
and approval for existing tenant to remain on site in order to
comply with Restrictive Covenants
Part Lot 12, RCP 1471, Being Part 1, 58R-14392,
RECOMMENDATION:
"That, on January 30, 2008, the property described as Part Lot 12, RCP 1471,
designated as Part 1, Plan 58R-14392, and municipally known as 50 Washburn
Drive, Kitchener was in substantial compliance complied with the restrictions set
out in Schedule "A" to Instrument No. WR28952, and further,
That the Mayor and Clerk be authorized to execute any documentation approved
by the City Solicitor to show consent to a sale transaction of the above-noted
properly by the current owner being, 581662 Ontario Inc.; and further,
That the Mayor and Clerk be authorized to execute any documentation approved
by the City Solicitor:
- to show consent to the continued tenancy of the existing tenant on the
premises, Corporate Express Canada, Inc.;
- to show approval to allow the perspective buyer to assume the existing
mortgage;
- to allow any required Assignment of Rents and Assignment of Lessors; and,
- to confirm compliance with the restrictive covenants registered as Instrument
No. WR28952."
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BACKGROUND:
I am in receipt of a request from a solicitor for confirmation that the subject property complies
with the restrictions set out in Schedule "A" to Instrument No. WR28952, an Application to
Annex Restrictive Covenants.
Title control restrictions registered on the subject lands indicate that the City of Kitchener must
approve all sale transactions, leases, mortgages, etc. registered against the subject lands within
five ~5) years from March 31, 2004. Currently, the subject property is being leased by
Corporate Express Inc., doing business as Basics Office Products and it is necessary to obtain
approval from the City of Kitchener to bring the current tenancy into compliance with the
restrictive covenants.
It is further desirable for the Owner to obtain Council approval from the City of Kitchener to allow
the sale of the subject property to a perspective buyer. The current tenancy will continue as is
subject to Council's approval.
Further, Council approved a mortgage in favour of The Manufacturers Life Assurance Company
on February 28, 2005 and a mortgage was registered on title and the mortgage appears to
comply with the restrictive covenants. If the conveyance of the property proceeds, it is the
perspective buyer's intention to assume the existing mortgage as registered on title and it is
necessary to obtain Council's approval for the assumption of mortgage an any required
Assignments of rents and Lessors in order to comply with the restrictive covenants.
REPORT:
Staff currently has no issue with respect to the requested approval for the existing tenant, the
proposed sale transaction, assumption of mortgage, and necessary assignments in order to
allow the said transactions to comply with the restrictive covenants.
FINANCIAL IMPLICATIONS:
N/A
COMMUNICATIONS:
N/A
CONCLUSION:
In view of the fact that a building was constructed and the property is in substantial accord with
the restrictive covenants, I recommend that the City confirm compliance with the restrictive
covenants and approve the existing tenancy, the proposed sale transaction, and the necessary
assumption of mortgage and necessary assignments.
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 the undersigned.
Respectfully submitted,
LESLEY MACDONALD, Director of
Legal Services & City Solicitor
/tr