OTTAWA COMMUNITY LANDS DEVELOPMENT CORPORATION ANNUAL REPORT 2011
On behalf of the Ottawa Community Lands Development Corporation (OCLDC) and its Board of Directors, we are pleased to share with you Ottawa Community Lands Development Corporation Annual Report for 2011. This document captures a year of great momentum for our organization and provides an opportunity to share some important milestones accomplished in 2011. We ve achieved significant measurable results. In May 2011, we awarded the contract for servicing of the Longfields Subdivision Demonstration Project, and construction is well under way. We sold the majority of the first phase of the Longfields properties, which generated significant proceeds and wrote off legacy costs accumulated from amalgamation. Considerable pre-development work took place with respect to Phase 2 of the Longfields subdivision, which laid the ground for development deals to close in 2012 and 2013. Overall, the Ottawa Community Lands Development Corporation closed on eight real estate transactions and the total sale value for all these closings was $25,117,613. The OCLDC mandate to obtain optimal value pertaining to both financial and nonfinancial community value has never been more important than it is today. We had a strong 2011. On behalf of Ottawa Community Lands Development Corporation and our Board of Directors, we would like to reaffirm our commitment to promoting and achieving the best value for the corporation and for our City. Sincerely Original signed by Jan Harder Councillor Jan Harder Chair
REPORT TO THE CHIEF FINANCIAL OFFICER This Annual Report serves to provide context for the evaluation and review of the Corporation s activities and progress in 2011. It is also intended to support the requirements of the Business Corporations Act (Ontario) for holding the 2011 Annual General Meeting of the shareholder of the Ottawa Community Lands Development Corporation (OCLDC) including receipt of Audited Financial Statements for 2011. Mandate On 10 October 2007, City Council approved the establishment of the Ottawa Community Lands Development Corporation (OCLDC) for implementation of the Longfields Subdivision and Centrepointe Town Centre projects (Report number ACS2007-BTS-RPM-008). Staff undertook planning and engineering studies and held open house consultations with the community for the Longfields and Centrepointe Town Centre projects. An application for subdivision approval for the Longfields lands was initiated and draft subdivision approval was granted in September 2008. As its meeting on 28 January 2009, City Council approved recommendations to proceed with the incorporation of the Ottawa Community Lands Development Corporation to undertake City property development initiatives and transfer the control of the Longfields subdivision to the OCLDC (Report ACS2008-COS-RPM-0063). The goal of City Council in creating a development corporation as reflected in the report is to achieve the following objectives: obtain optimal value pertaining to financial and non-financial community investment; maximize financial, social, environmental and cultural sustainability; a single point of accountability; balance municipal objectives and guiding principles; segregation of duties between the approval bodies and the project; flexibility to address business issues related to the development; ability to enter into subdivision agreements; community engagement and consultation; maintain a focused delivery and build on community objectives. In August 2009, the Letters of Patent were issued by the Ontario Ministry of Government Services establishing the Ottawa Community Lands Development Corporation/La Société d Aménagement des Terrains Communautaires d Ottawa for the purpose of promoting and undertaking community improvements in the City of
Ottawa to improve, beautify and maintain municipally owned land, buildings and structures for the benefit of the community by: (i) (ii) (iii) (iv) (v) (vi) planning, subdividing and developing or redeveloping sites owned or held by the corporation for residential, industrial, commercial, institutional, public, recreational, religious, charitable or other uses; constructing, operating, maintaining, owning and/or providing facilities for amusement, culture, heritage, parking and public transportation; acquiring, holding, selling, leasing or disposing of sites described in subparagraphs (i) and (ii) above; undertaking or conducting studies, research and design work; conducting public marketing and advertising for sale in connection with the activities set out in subparagraphs (i), (ii) and (iii) above and other complementary activities not inconsistent with the above noted objectives. In addition to above direction, Ottawa City Council also identifies how the services of the Real Estate Partnerships and Development Office will be utilized in achieving the above noted goals and objectives. The OCLDC continues to work to identify areas of improvement with the City of Ottawa and the City Clerk s Office to ensure that appropriate regulations and procedures are in place to allow for the proper conduct of business, land transfers and approvals, all of which are critical for the OCLDC to fulfill its mandate. Transfer of Assets The core business of the OCLDC is unlocking value in the City of Ottawa s real estate portfolio through sustainable development. The focus of the OCLDC activities is on determining the development potential of these assets and working with the Real Estate Partnerships and Development Office on the due diligence and transfer processes in order to acquire these and other assets. The OCLDC and Real Estate Partnerships and Development Office work collaboratively to identify opportunities within the City s real estate portfolio for development and added value. To this end, the OCLDC has identified assets that have been earmarked for development or asset management. This includes former school sites, as well as underutilized and strategic parcels of land. The OCLDC and the City are working on an approach for the transfer of lands currently held by the City. This will allow the OCLDC to pre-plan and implement development strategies for lands and proceed with actual transfers at a future date once the City s disposal process is complete with respect to each parcel. This will usually entail circulation to Real Estate Partnerships and Development Office client groups to
determine if the parcels have corporate and or operational needs, before being declared surplus and transferred to the OCLDC.
AUDITED FINANCIAL STATEMENTS The 2011 Audited Financial Statements are attached as Appendix 1. Planned spending for 2011 was $23,712,260.71, of which $20,113,281 comprised land acquisition costs for raw land acquired from the City of Ottawa, the remainder being professional consulting services related to preparing the land for development and preparing supporting information for planning applications, including servicing of the lands offered for sale. Gross revenues generated from the sale of land were $25,206,813. Net revenues generated after expenses including legacy costs, amounted to $1,494,552. 2011 RESULTS The following is a status update of OCLDC activities in 2011: LONGFIELDS SUBDIVISION The 50 hectare parcel of City owned vacant land in Barrhaven is being developed in accordance with a concept that includes innovative planning and design, affordable housing and opportunities for small scale builders. The subdivision features a mixeddensity residential community which integrates pedestrian and cycle pathways, access to rapid transit, public parks and the preservation of environmental features. An application for subdivision approval was submitted and draft subdivision approval was granted in September, 2008. A 9.97 hectare parcel, being Phase 1, received final subdivision approval and was registered in March 2011. Land Sales Activities In 2011, the OCLDC had eight (8) real estate closings and the total sale price for all these closings was $25,206,813. In order to achieve this, OCLDC staff undertook the following activities: registered Phase 1 of the Longfields Subdivision on March 23, 2011 as Plan 4M-1427; negotiated with seven (7) home builders, and closed eight (8) of these real estate transactions; fulfilled the mandate of providing opportunities for smaller home builders, which included Longwood, Valecraft, Larco, Mattino, Jock River Farms (Tartan) and Richcraft finalized negotiations for three (3) land sales that are to close between 2012 and 2014; co-ordinated and finalized the relocation of the hydro lines for Phase 1; marketed and tendered the construction of roads and services, which allowed 108 residential units to start construction
oversaw construction of services Sale of Phase 2 lands prepare marketing material and requisition appraisals rationalized grouping of lots/blocks to be sold market Phase 2 lands for sale prepare agreements of Purchase and Sale, development agreements, option to repurchase agreements advertise properties for sale Design Review of Builder Architectural Plans oversee builder permit plan for compliance with Longfields Design Guidelines and Sustainable Design Criteria. CENTREPOINTE TOWN CENTRE The purpose of transferring this property into the OCLDC is to develop and implement a strategy for the Centrepointe Town Centre Project. This project will result in development of City-owned lands at Baseline Road and Woodroffe Avenue, integrating 100 Constellation Crescent, Ben Franklin Place, vacant and transit lands and will demonstrate the 20/20 Vision of creating a sense of place. The development will focus on the integration of commercial, residential and office uses through intensification and innovation. On 10 October 2007, Council approved the inclusion of this property in the OCLDC (report number ACS2007-BTS-RPM-0008). In November 2008 City Council approved the Centrepointe Concept Plan (CTC) as updated to include the rapid transit functional design and the City s Archives/Library Technical Services Facility and Algonquin College Projects (Report number ACS2008-COS-RPM-0063). The Archive/Library Building and the Algonquin Centre for Construction Trades are completed and in operation. The implementation of the remainder of the CTC Concept Plan will require substantial further development planning some of which is currently underway including the functional design of the future Baseline Transit Station. Once the station design is finalized, funding will need to be secured to advance the next stage of development of the transitway. The station design will also lead to the identification of viable development parcels, which will become available when the next stage of the transitway project in completed. In that regard, and similar to the work done through the co-operation of the City and Algonquin College, staff will be able to explore more development opportunities within the CTC either individually or jointly with private sector partners. Securing additional public and private sector funding will be
instrumental in advancing the next stages. Additionally, the transfer of lands in the Centrepointe Town Centre (CTC) to the OCLDC will occur once these next projects stages have been advanced and the subject lands are ready for development. Work completed in 2011 includes: monitored progress of Algonquin College development (CCTBS Building); monitored construction of Archives and Library building; opened the Centrepointe Theatre expansion in September 2011; opened the Archives and Library building in September 2011. explore potential to close realigned Constellation Crescent righ-of-way and sell surplus land For 2012, the following tasks need to be completed: monitoring consultants completion of functional design for Baseline Station evaluating future parking solutions with view to creating development parcels ongoing discussions with Algonquin College regarding campus master plan and future expansion possibilities in the Town Centre liaising with Infrastructure Services to resolve issues around future station design examining availability of surplus land for sale and timing 25 ESQUIMAULT The City purchased the property at 25 Esquimault Avenue, as per a City Council directive approved on 23 April 2008 (report number ACS2008-BTS-RPM-0016) following a long history of multiple issues involving a long-term lease and the contamination of the soil underneath the existing building from a leaking underground oil storage tank. At that time Council approved the report recommendations to acquire the property in order to avoid potential litigation; to relocate the community building into Nanaimo Park in order to demolish the existing building at 25 Esquimault and remediate the contaminated land; and then to sell approximately 3.0 acres of the 25 Esquimault property for redevelopment purposes in order to ultimately reduce the total net project costs. On 25 August 2010 Council recommended that upon completion of the remediation of the environmental contamination at 25 Esquimault, approve the transfer of the property to the OCLDC (report number ACS2010-CMR-REP-0036) to initiate the redevelopment and sale of this property. Work completed in 2011 includes: former school building was demolished remediated the site
monitored the construction of the new community building new community building was delivered in December 2011. For 2012, the following works will be undertaken to ready this parcel for market: 1765 TRIM ROAD submit rezoning application requesting appraisal for site prepare relevant legal agreements (Agreement of Purchase and Sale, Development Agreements, Option to Repurchase Agreement); advertise and market the property for sale applying for Record of Site Condition obtain Phase 2 Environmental Study The City attempted to sell these lands; however, the offers received were lower than the appraised value. The low offers may have been partially attributed to the zoning at the time it was listed for sale was DR Development Reserve and the inherent risk and costs associated with a purchaser having to undertake a zoning by-law amendment process. On 13 July 2011 Council recommended ownership of these lands be transferred to the OCLDC (report number ACS2011-CMR-REP-0018) in order to leverage the property to achieve the maximum financial and non-financial value for the property. The transfer of the property allowed for OCLDC to rezone the property, enter into agreements with third parties to ensure the City s objectives were met, establish sustainable development conditions for future uses, negotiated with the abutting land owner with a view to marketing the property and potentially obtaining at least the appraised market value. In 2011 the property was rezoned to Residential and remarketed and sold. The transaction closed in March 2012. 2012 BUSINESS PLAN In order to meet the financial targets established by our sole shareholder and the need for more revenue potential, the OCLDC is working on completion of sales in Phase 1 of the Longfields Subdivision, and sale of underutilized parcels on Trim Road and the former Constellation Crescent right-of-way. The OCLDC experienced a very strong 2011, which enabled it pay back legacy costs associated with pre-development work related to City lands and generate a surplus in excess of $1M.
Meeting the targets for 2012 will be influenced by the ability to close on remaining sales that were negotiated in 2009-2010, and the development approval process for zoning amendments necessary to position sites for marketing. Predevelopment work associated with the Longfields Phase 2 subdivision may also influence these targets; however, revenues will be postponed to 2013, when most of the Phase 2 sales are expected to close and more than offset expenses accrued in 2012.
APPENDIX 1 Financial Statements Ottawa Community Lands Development Corporation December 31, 2011