HomeMy WebLinkAboutCRPS-08-176 - Approval for Owner to Obtain Financing at 155 Washburn Drive Pursuant to Restrictive CovenantREPORT
Report To: Committee of the Whole
Date of Meeting: October 27, 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: October 23, 2008
Report No.: CRPS - 08 -176
Subject: Council Approval for Ownerto obtain Financing at 155
Washburn Drive, pursuant to Restrictive Covenants: Part Lot
12, RCP 1471, Being Parts 16 & 29 on Plan 58R-7426
RECOMMENDATION:
"That, on October 21, 2008, the property described as Part Lot 12, Registered
Plan 1471, designated as Parts 16 & 29 of Reference Plan 58R-7426 and
municipally known as 155 Washburn Drive, Kitchener was in substantial
compliance with the restrictions set out in the Application to Annex Restrictive
Covenants registered as Instrument No. WR325819; and further
That the Mayor and Clerk be authorized to execute any documentation approved
by the City Solicitor to show Council's consent to the mortgage financing of
Decora Homes Inc. in compliance with the restrictive covenants registered on
title of the lands located at 155 Washburn Drive, Kitchener."
BACKGROUND:
I am in receipt of a request from a solicitor for confirmation that the subject property complies
with the restrictions set out in the Application to Annex Restrictive Covenants registered as
Instrument No. WR325819, and further, to obtain Council's consent to the financing required for
construction on 155 Washburn Drive.
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REPORT:
The City sold this property to Decora Homes Inc. on September 6, 2007. Construction has
commenced on this property, however the building is still under construction and subject to final
inspections. Staff are unable to comment on compliance of the Restrictive Covenants as
construction of the building has not yet been finalized. The owner is arranging financing for a
first mortgage to recapture construction costs. Pursuant to Paragraph 2(e} of the Restrictive
Covenants registered on title as Instrument No. WR325819, all leases, sub-leases,
assignments, mortgages, transfers of the property within five years of the date of closing must
be approved by The Corporation of the City of Kitchener.
FINANCIAL IMPLICATIONS:
N/A
COMMUNICATIONS:
N/A
CONCLUSION:
In view of the fact that construction of a building has commenced within the one year restriction
and the owner is looking for approval of financing I recommend that the City confirm partial
compliance with the restrictive covenants and consent to the financing on behalf of the owner.
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.
LESLEY MACDONALD, Director of
Legal Services & City Solicitor
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