HomeMy WebLinkAboutDTS-08-148 - Agreement Between City of Kitchener & Ontario Realty Corporation~R ..~.
Developmen~&
Technical Services
Report To: Committee of the Whole
Date of Meeting: September 15, 2008
Submitted By: Rob Browning
Prepared By: Rob Browning, General Manager, Development & Technical
Services
Wards} Involved: Ward 1
Date of Report: September 8, 2008
Report No.: DTS 08-148
Subject: AGREEMENT BETWEEN CITY OF KITCHENER AND THE
ONTARIO REALTY CORPORATION
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute an agreement with the Ontario Realty
Corporation acting as agent on behalf of Her Majesty the Queen in Right of Ontario as
represented by the Minister of Public Infrastructure Renewal for the provision of parking related
to the new Kitchener courthouse; said agreement to be to the satisfaction of the City Solicitor.
BACKGROUND:
For more than a year, the City and the Province have been discussing the potential of locating a
new consolidated Provincial courthouse in downtown Kitchener. During the past year, those
discussions intensified and culminated in an announcement in June by the Province that it had
chosen a site in downtown Kitchener bounded by Frederick St., Weber St., Scott St. and Duke
St. as the preferred site for its new courthouse. Subsequently, Council approved a new parking
garage at Charles St. and Benton St. to accommodate some of the parking required by the
courthouse. For this parking, the Province is contributing $6,475,000.00 to fund the construction
of the garage.
REPORT:
As part of the discussions with the Province, there were some requirements by both parties. The
Ministry of Attorney General required 690 parking spaces within 600 metres of the courthouse.
290 of these parking spaces will be constructed under the new courthouse. These spaces will
be strictly for the use by courthouse staff and not for use by the public. 400 hourly parking
spaces to be used on a first come first service basis must be supplied within 600 metres of the
courthouse. As well, there was a requirement to accommodate some of the parking currently on
the proposed site. Thus a lease agreement with one of the CORA companies for 200 spaces in
the parking garage is proposed in a separate report. To accommodate all of this parking, a new
structure was required.
Although the Province is exempt from local zoning and planning requirements, its agents have
been working to satisfy these. For the proposed building of approximately 340,000 square feet,
to meet the City's zoning by-law, an additional 185 parking spaces were required beyond the
290 spaces to be provided on site. The Province agreed to pay the City $6,475,000.00 for those
spaces.
To waive the conditions on its Agreement for Purchase and Sale with the vendor, the Province
required an agreement with the City laying out its commitments.
The components of the agreement are essentially:
• The City will guarantee 400 hourly spaces within 600 metres of the new Courthouse.
These spaces are on a first come first serve basis
• The Province will pay the City $6,475,000.00 for cash in lieu of parking.
o The Province will remit $2,000,000.00 on the signing of this agreement or the
finalization of its Agreement of Sale and Purchase with the vendor, whichever
occurs latest
o The balance of $4,475,000.00 will be remitted on the day that the building permit
is issued for the Courthouse.
• Should the Province not obtain its building permit by December 1, 2009, the Province
will remit to the City the carrying costs on the balance at a rate equal to the interest rate
on the City's short term investments.
• The City will have the Charles/Benton Parking Garage Operational by December 1,
2009.
• Should the parking garage not be operational by December 1, 2009, the City will provide
parking spaces at no charge to meet its commitments in this agreement. The may be
accommodated at a facility such as the Auditorium.
Legal Services is in the process of finalizing the provisions of the Agreement between the
Province and the City.
FINANCIAL IMPLICATIONS:
The City shall receive $6,475,000.00 from the Province to be used towards the construction of
the Charles/Benton parking estimated at $16,000,000.00.
COMMUNICATIONS:
None
CONCLUSION:
The construction of the new Provincial Courthouse contributes to revitalization of our downtown.
It will bring new employees to this work site. The courthouse will also bring additional clientele to
our downtown. In all these additional people in our downtown will contribute to an improved
economy for our business operators.
Rob Browning
General Manager of Development
and Technical Services