1 Report to Rapport au: Finance and Economic Development Committee Comité des finances et du développement économique 10 September 2018 / 10 septembre 2018 and Council et au Conseil 26 September 2018 / 26 septembre 2018 Submitted on August 28, 2018 Soumis le 28 août 2018 Submitted by Soumis par: Gordon MacNair, Director, Corporate Real Estate Office/Directeur, Bureau des biens immobiliers municipal Contact Person Personne ressource: Peter Radke, Manager, Realty Initiative & Development Branch, Corporate Real Estate Office / Gestionnaire, Initiatives et mise en valeur en immobilier, Bureau des biens immobiliers municipal 613-580-2424 x/poste 12551, peter.radke@ottawa.ca Ward: GLOUCESTER-SOUTHGATE (10) File Number: ACS2018-CSD-CRE-0015 SUBJECT: DECLARATION OF SURPLUS AND SALE OF 899, 901 AND 903 AGES DRIVE HAWTHORNE BUSINESS PARK TO 1394726 ONTARIO INC. OBJET: DÉCLARATION COMME EXCÉDENTAIRE ET VENTE DES 899, 901 ET 903, PROMENADE AGES PARC D AFFAIRES HAWTHORNE À 1394726 ONTARIO INC.
2 REPORT RECOMMENDATIONS That the Finance and Economic Development Committee recommend Council: 1. Declare the properties municipally known as 899, 901 and 903 Ages Drive, described as part of Lot 2, Concession 5 (Rideau Front), geographic Township of Gloucester, (Parts 1, 2, 3, 4 and 5, Plan 4R- 31244) and shown as Parcels 1, 2 and 3 on Document 1 attached, as surplus to City requirements; 2. Approve the sale of the properties identified in Recommendation 1 above, subject to easements as noted below, to 1394726 Ontario Inc. for $2,925,000 plus HST, pursuant to an Agreement of Purchase and Sale that has been received. RECOMMANDATIONS DU RAPPORT Que le Comité des finances et du développement économique recommande au Conseil: 1. De déclarer excédentaires, par rapport aux besoins de la Ville, les propriétés portant les adresses municipales 899, 901 et 903, promenade Ages, décrites comme une partie du lot 2, concession 5 (façade Rideau), canton géographique de Gloucester (parties 1, 2, 3, 4 et 5, plan 4R- 31244), désignées parcelles 1, 2 et 3 sur le document 1 ci-joint; 2. D approuver la vente des propriétés décrites à la recommandation 1, sous réserve des servitudes mentionnées ci-dessous, à 1394726 Ontario Inc. moyennant la somme de 2 925 000 $, TVH en sus, BACKGROUND conformément à la convention d achat et de vente reçue. The properties municipally known as 899, 901 and 903 Ages Drive (formerly part of 2799 Swansea Crescent) are located in the Hawthorne Business Park. The subject properties containing a total area of 4.66 acres was part of a larger 28.86 acres parcel of land acquired in 1992 from the National Capital Commission for the relocation of the Bayview Works Yard. Approximately 18 acres of the land is now the home of the Charles Sim Works Yard, leaving a parcel of approximately 10.67 acres that was not required at that time for the construction of the works yard. Approval of the sale of 899, 901 and 903 Ages Drive (4.66 acres), would still leave the remaining 5 acres available
3 for any future expansion to the works yard and the construction of a pedestrian/cycling walkway contemplated for this area. The subject properties are legally described as part of Lot 2, Concession 5, R.F., geographic Township of Gloucester and further described as Parts 1, 2, 3, 4 and 5, Plan 4R-31224. The properties are zoned IG3 - Industrial Zone (Secs. 199-206) which permits a wide variety of uses and no re-zoning is contemplated by the purchaser. DISCUSSION An internal circulation completed in April 2018 determined there was no City need to retain the subject lands. As a result, the sale of these properties will be subject to an easement in favour of Hydro One Networks Inc. (Instrument No. NS27803) an easement in favour of the City for an existing sanitary collector sewer over Part 5, Plan 4R-31244, to be registered on title prior to closing and any easements that may be required. On 28 June 2018, the subject properties were advertised for sale, with an asking price of $1.1M per lot. Marketing consisted of advertising on the City website, installing signage on the site and sending out notices to approximately 350 potential purchasers indicating that the City would be receiving offers on these properties until 19 July 2018. In response to this advertising, two offers were received on each lot as follows: OFFER 1 1394726 Ontario Inc. 899, 901 and 903 Ages Drive - $2,925,000 ($975,000 per lot) Conditions Environmental due diligence and preliminary discussion with Planning. OFFER 2 2378902 Ontario Inc. 899 Ages Drive - $920,000 901 Ages Drive - $899,000 903 Ages Drive - $720,000 Conditions Financing, Environmental due diligence. Although 2378902 Ontario Inc. submitted an offer on each property, they were only interested in acquiring one lot with their preference being 899 Ages Drive.
4 Offer 1 The offer received from 1394726 Ontario Inc. in the amount of $2,925,000 for the three properties although below the asking price, is approximately 4% less than the market value established by an internal and external appraisal. Offer 2 The offers received from 2378902 Ontario Inc. for each of the properties are considerably lower than the asking price for all three properties combined. Offer 1 above from 1394726 Ontario Inc., is considered to be fair and reasonable and is being recommended for acceptance. 1394726 Ontario Inc. is owned by Martin Languedoc, President of Simluc Contractors Limited. In 2011, the purchaser acquired a property in the Hawthorne Business Park. The property is municipally known as 2700 Swansea Crescent and was developed with a two storey research and development building which is currently the home of Iridian Spectral Technologies. AFFORDABLE HOUSING LAND AND FUNDING POLICY The Affordable Housing Land and Funding Policy approved by Council on 26 April 2017, advances the vision and targets established in the Ten Year Housing Homelessness Plan, the Official Plan and other Council-approved affordable housing initiatives. The policy also requires that the Official Plan target of 25% affordable housing be met on any City owned property where existing or proposed zoning allows for residential uses. These zones include: All residential zones (R) - Village and rural residential zones (RR, RU, VM, V1 V3) - Mixed use/commercial zones (TM, AM, GM, MC, MD and TD) and Institutional zones (I1 and I2). Where a property is disposed of without a condition requiring an affordable housing component in any of the above zones, 25% of the net proceeds from the sale are to be credited to a housing fund to be used for the development of affordable housing elsewhere in the City. The subject properties are zoned IG3 Industrial. Housing is not a permitted use within the industrial zoning and the industrial zone was not included in the Affordable Housing Land and Funding Policy. Therefore, 25% of the net proceeds from the sale of 899, 901 and 903 Ages Drive, is not applicable. RURAL IMPLICATIONS There are no rural implications resulting from the recommendations in this report.
5 CONSULTATION In accordance with policies approved by City Council on 28 March 2012, the availability of the subject property was circulated to all City Departments, including the Housing Branch and Ward Councillor to determine if the properties were required for a City mandated program. There was no City requirement identified for 899, 901 and 903 Ages Drive other than to ensure that an easement is registered prior to the sale to protect the City s existing collector sewer. Councillor Deans has been consulted with respect to this report and her comments are indicated under the Comments By Ward Councillor section. COMMENTS BY THE WARD COUNCILLOR(S) Ward 10 Gloucester-Southgate Councillor Deans is aware of the report. LEGAL IMPLICATIONS There are no legal impediments to implementing the recommendations in this report. RISK MANAGEMENT IMPLICATIONS There are no risk management implications resulting from the recommendations in this report. FINANCIAL IMPLICATIONS Proceeds of the sale will be credited to the Sale of Surplus Lands account. ACCESSIBILITY IMPACTS There are no accessibility impacts resulting from the recommendations in this report. ENVIRONMENTAL IMPLICATIONS There are no environmental implications resulting from the recommendations in this report. TERM OF COUNCIL PRIORITIES The recommendation in this report supports City Council s Financial Responsibility strategic priority to practice prudent fiscal management of existing resources and make sound long-term choices that allow core City services to be sustainable now and into
6 the future; specifically it objective FS2 to maintain and enhance the City s financial position. SUPPORTING DOCUMENTATION Document 1 is included in this report and identifies 899, 901 and 903 Ages Drive as Parcels 1, 2 and 3. DISPOSITION Following Council s approval, staff from Corporate Real Estate Office and Legal Services Branch will complete the transfer of ownership at the designated time.
Document 1 Property Sketch 7