SC-13/2017 June 12, :00 pm Town of Pelham Municipal Office - Council Chambers 20 Pelham Town Square, Fonthill Pages

Transcription

1 SC-13/ June 12, 5:00 pm Town of Pelham Municipal Office - Council Chambers 20 Pelham Town Square, Fonthill Pages 1. Call to Order and Declaration of Quorum 2. Approval of the Agenda 3. Disclosure of Pecuniary Interest and General Nature Thereof 4. Evaluation: How Might the Town Proceed with Land Sales in East Fonthill 1 5. Confirming By-law 7 6. Adjournment

2 Concept: How Might We Sell Surplus Land in East Fonthill? Background: 1

3 The Town of Pelham purchased 32 acres of land in 2005 from the Allen Group (Fonthill Gardens) for a purchase price of $3,586, In 2012 Council directed that staff work with Fonthill Gardens to establish a site master plan that would include the Towns land and the adjacent parcel of land owned by Fonthill Gardens. Because the two owners decided to develop a site plan based the principals of the East Fonthill Secondary Plan and what made the most sense for the overall development. To facilitate this process Council and Fonthill Gardens entered into a land purchase and swap agreement that would allow the citing of either parties buildings anywhere in the development and would give both parties the ability to option or swap for each other s land. This eventually led to a Council adopted Detailed Site Master Plan and the option by the Town to purchase 4 acres of land from Fonthill Gardens for the purpose of facilitating the donation of land by the Town to Wellspring Niagara (Block 1). In addition, Fonthill Gardens has indicated that they may option some or all of the Towns land in Block 3 for a medical clinic and retirement facility. This option has yet to be exercised as the Town has yet to receive a formal proposal from Fonthill Gardens for these purposes. Both parties agreed to a sale price of $375, per acre (as appraised for undeveloped land by Ridley and Associates) plus the cost of development (as calculated by Upper Canada Consultants) when exercising their option. Notwithstanding the potential option by Fonthill Gardens the Town currently owns acres of surplus land valued between $600, and $800, per acre and has committed to selling the land in order to raise funding for the construction of the Pelham Community Centre. It is the goal of the municipality to raise $15.8 million in land sales, the majority being derived from East Fonthill but also includes sale of other surplus lands located within the Town. 2

4 Early example of the Detailed Site Master plan and the numerous iterations of the plan that was developed and discussed prior to final agreement and approval by both parties. 3

5 In addition to the acres the Town also optioned 3.41 acres from the Fonthill Gardens for the purpose of building Wellspring Niagara which is using 1.8 acres for their facility leaving the Town 1.61 acres of surplus land for a total of potential surplus land amount of acres. The Challenge: There are several challenges to consider: 1) How Might We (HMW) sell land quickly to generate the revenues required to finance the PCC? 2) HMW get this development right in terms of land use and urban design? 3) HMW prioritize the phasing of development in terms of disposing of all of the land at one time or phasing or breaking up the blocks to sell smaller pieces of the land? 4) HMW protect and implement our vision for East Fonthill? 5) HMW investigate the use of a 3 rd party to handle the administration of land sales? 6) HMW develop a list of different ways to sell the land? 7) HMW develop the criteria to evaluate options for disposal? 8) HMW remain objective, open and transparent when selling the land? 9) HMW develop a scope of work for a third party to sell the land? 4

6 10) HMW figure out what opportunities exist that other municipalities don t have? 11) HMW sell the Wellspring land first? There are several different options available to Council to consider when deciding on the process by which the land can be sold: 1) Hire an outside 3 rd party to handle the sale i.e. accounting firm. (It is acknowledged that the Town does not have the bench strength to handle to sale on its own.) 2) The Town handles this disposal internally. 3) A 3 rd party realtor is hired to oversee the disposal process. 4) Form a development corporation* to facilitate the sale. 5) In order to move forward with the sale of surplus land the method by which is chosen will provide clarity on how to proceed. Relying on the expertise of a 3 rd party would help determine the next steps, answering questions such as: HMW prioritize the phasing of development in terms of disposing of all of the land at one time or phasing or breaking up the blocks to sell smaller pieces of the land and HMW get this development right in terms of land use and urban design? *A development Corporation is an arm s length incorporated body that can be used by municipalities to govern utilities such as telco s or run, sell or acquire assets (land, buildings or businesses) that will generate revenue for the Town. The corporation would require formal set up including filing for incorporation with the government and is run by a board of community members that have the required expertise. 5

7 Our Recommendation Solution: In order for staff to proceed with the sale of surplus land in East Fonthill the method by which the land is to be sold needs to be determined. It is recommended that Council use the evaluation and selection criteria to select the method by which the land will be sold. It is further recommended that the Wellspring surplus land be sold immediately using a tradition RFP process. Rationale: In order to determine the process that will be used to sell surplus land Council should provide the direction to staff on their preferred method. Once the process has been determined staff can work to ensure that the design elements are maintained, the proper placement, size and function of buildings and the sale of all or some of the blocks etc. This will also allow staff to determine a scope of work if Council determines to enlist the assistance of a 3 rd party. Moreover, by selling the surplus Wellspring land immediately it will generate revenue for the Town, while working toward the eventual sale of the remaining land. Measure of Success: The surplus land is sold at for the highest amount and the best use while maintaining the vision and principals of the development that have been set out by Council. Milestones: 1) Council evaluate and select the best method to dispose of the land 2) Staff places the Wellspring surplus land for sale immediately using a RFP process. 3) The approved Council methodology for selling the land is carried out by staff. 4) The phasing (or not) of the sale of individual blocks is determined along with land use (mixed use commercial/residential) and valuation. 5) The land is sold maximizing its ROI. 6

8 THE CORPORATION OF THE T O W N O F P E L H A M BY-LAW #3893() Being a by-law to adopt, ratify and confirm the actions of the Council at its special meeting held on the 12 th day of June,. WHEREAS Section 5 (3) of the Municipal Act, S.O. 2001, Chapter M.25, as amended, provides that, except if otherwise authorized, the powers of Council shall be exercised by by-law; AND WHEREAS it is deemed desirable and expedient that the actions of the Council as herein set forth be adopted, ratified and confirmed by by-law; NOW THEREFORE COUNCIL OF THE CORPORATION OF THE TOWN OF PELHAM ENACTS AS FOLLOWS: (1) (a) The actions of the Council at its meeting held on the 12 th day of June,, including all resolutions or motions approved, are hereby adopted, ratified and confirmed as if they were expressly embodied in this by-law. (b) The above-mentioned actions shall not include: (I) any actions required by law to be taken by resolution, or (II) any actions for which prior Ontario Municipal Board approval is required, until such approval is obtained. (2) The Mayor and proper officials of the Corporation of the Town of Pelham are hereby authorized and directed to do all things necessary to give effect to the above-mentioned actions and to obtain approvals where required. (3) Unless otherwise provided, the Mayor and Clerk are hereby authorized and directed to execute and the Clerk to affix the seal of the Corporation of the Town of Pelham to all documents necessary to give effect to the above-mentioned actions. (4) THAT this by-law shall come into force on the day upon which it is passed. READ, ENACTED, SIGNED AND SEALED THIS 12 th DAY OF JUNE, A.D. MAYOR DAVE AUGUSTYN TOWN CLERK, NANCY J. BOZZATO 7