Report to/Rapport au :
Corporate Services and
Economic Development Committee
Comité des services
organisationnels et du développement économique
and Council / et au Conseil
15
September 2003 / le 15 septembre 2003
Submitted by/Soumis par : Kent Kirkpatrick, General Manager/Directeur général,
Corporate Services/Services
généraux
Contact Person/Personne ressource : Doug.McCaslin,
Manager
Real
Property Asset Management/Gestion des actifs et des biens immobiliers
(613)
580-2424 x 22595, Douglas.McCaslin@ottawa.ca
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SUBJECT: |
LAND EXCHANGE - 1048219 ONTARIO INC.
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OBJET : |
ÉCHANGE DE TERRAINS - 1048219 ONTARIO INC. |
REPORT
RECOMMENDATIONS
That should Council wish to proceed with a land exchange to acquire the westerly portion of the West Ridge Phase IIIB subdivision lands to settle the matter of the boundary of the Provincially Significant Wetlands that is now the subject of an appeal before the Ontario Municipal Board, it is recommended:
That the Corporate Services and Economic Development Committee recommend Council:
1. Declare the parcel of vacant land, consisting of approximately 9.76
ha (24.12 ac), described as being part of Lot 3, Concession 9, geographic
Township of Cumberland, designated as Parts 1 to 4 Plan 5OR-633 and known
municipally as 2360 Trim Road, and shown on Annex “A” attached, as surplus to
the City's needs;
2. Waive City policy pertaining to the internal and external
circulation, notice and the marketing of surplus properties and authorize staff
to sell the property outlined in Recommendation 1;
3. Approve the sale of the land detailed in Recommendation 1 to
1048219 Ontario Inc. (Regional Group), in exchange for a parcel of vacant land
consisting of approximately 6.968 ha (17.2 ac), described as being part of
Block 112, Registered Plan 4M-1057, geographic Township of Goulbourn, and shown
on Annex “C”, all for the nominal sum of $1.00 plus GST, and subject to:
a) the completion of legal surveys;
b) any easements that may be required;
c) the execution of an Agreement of Purchase and
Sale acceptable to the General Manager, Corporate Services;
d) completion of the Blackburn Hamlet Bypass
Extension Environmental Assessment resulting in a modified alignment and;
e) the City not assuming any other costs related to
developing the West Ridge Subdivision or complying with agreements associated
with this development.
RECOMMENDATIONS DU RAPPORT
Que dans l’éventualité ou le Conseil municipal
désirerait procéder à un échange de terrains afin d’acquérir la partie Ouest du
lotissement de la phase IIIB de West Ridge en vue de régler la question de la
limite des terres humides d'importance provinciale qui fait l’objet
actuellement d’un appel devant la Commission des affaires municipales, il
est recommandé:
Que le Comité des services organisationnels et du
développement économique recommande au Conseil :
1. de déclarer comme
excédentaire aux besoins de la Ville la parcelle de terrain non bâtie, d’une
superficie approximative de 9,76 ha (24,12 ac), décrite comme faisant
partie du lot 3, concession 9, dans le canton géographique de
Cumberland, désignée comme les parties 1 à 4 du Plan 5OR-633 et connue à la
Ville d’Ottawa comme le 2360, chemin Trim, figurant dans l’Annexe A ci-jointe;
2. de déroger à la
politique de la Ville touchant à la diffusion, aux avis et au marketing
intérieurs et extérieurs des propriétés excédentaires, et d’autoriser le
personnel à vendre le terrain décrit dans la Recommandation 1;
3. d’approuver la vente
du terrain décrit dans la Recommandation 1 au groupe régional 1048219 Ontario
Inc., en échange d’une parcelle de terrain non bâtie d’une superficie approximative
de 6,962 ha (17,2 ac), décrite comme faisant partie du bloc 112,
Plan enregistré 4M-1057, et située dans le canton géographique de
Goulbourn, figurant dans l’Annexe C, le tout pour la somme symbolique de
1 $ (TPS en sus), sous réserve de ce qui suit :
a) la
réalisation des levés officiels;
b) les
servitudes qui pourraient être requises;
c) la
signature d’une convention d’achat-vente acceptable pour la Directeur général, Services généraux;
d) d’achever
l’évaluation environnementale sur le prolongement de la rocade de Blackburn
Hamlet qui entraînera un changement du tracé;
e) la
Ville n’assumera aucun autre frais lié à l’aménagement du lotissement de West
Ridge ou à la conformité aux ententes se rapportant à cet aménagement.
BACKGROUND
Planning
and Development Committee (Report 56, Item 24) carried the following motion on
24 July 2003 as part of its consideration of the Development Services
Department report (Ref. ACS2003-DEV-APR-0174) dealing with an appeal before the
OMB regarding the extent of the Provincially Significant Wetlands associated
with the Upper Poole Creek Watershed in the West Ridge IIIB subdivision:
Therefore be it resolved that staff be directed to explore avenues
for the exchange of lands by the City with the lands in the westerly portion of
West Ridge IIIB and this matter be undertaken expeditiously with a progress
report to Council by 27 August 2003.
As a result of the power blackout, the 27 August 2003 Council meeting was postponed to 3 September 2003. On 29 August 2003 staff provided the following progress report to members of Council:
Several options were explored with the owners of West Ridge (1048219
Ontario Inc. – Regional Group). This resulted in only one City-owned property
being identified as a possible option for a proposed land exchange. The parcel, with exchange potential, is
located on Trim Road.
The Trim Road property is part of a larger parcel owned by the
City. An exchange would require a
severance. Part of the land is
currently used for interim snow storage and a portion of the City’s holding
will be required for part of the lands for the proposed Blackburn Hamlet
By-pass. The lands being proposed for
possible exchange lie to the north of the by-pass.
Staff has obtained appraisal reports on both the West Ridge property and
the City lands lying north of the proposed by-pass. These reports indicate comparable values for both properties
indicating a potential for completing a land exchange for $1.00.
An internal circulation is in the process of being finalized. Ongoing discussions will continue with TUPW
in this regard based on the impact of the ongoing need for the use of the Trim
Road site for snow disposal purposes.
Subject to the disposition by
Council of the West Ridge IIIB matter, staff intends to bring forward a report
to CSDEC on 16 September 2003 and Council on 24 September 2003 seeking approval
to enter into negotiations with West Ridge with respect to the terms of a
possible land exchange. If suitable terms can be negotiated, staff will
subsequently report to CSEDC and Council either seeking approval for the land
exchange or confirming that a mutually agreeable settlement could not be
reached. The Ontario Municipal Board
has adjourned the hearing scheduled for 15 September 2003 pending the
determination of Council’s position on the land exchange. The Board has scheduled 26 September 2003
for the receipt of an update.
On 3
September 2003 Council approved the motions of the Planning and Development
Committee regarding the West Ridge Phase IIIB subdivision (Report 56, Item 24).
Staff has continued to pursue the possibility of a land exchange. The Discussion Section of this report
outlines the staff findings and details a potential course of action to achieve
a land exchange if Council wishes to settle the matter of the wetland boundary
within the subdivision, which is now the subject of an appeal to the OMB.
DISCUSSION
The internal and utility circulation regarding
the possible disposal of the 2360 Trim Road property as shown on Annex “A” was
initiated on 6 August 2003 with a due date of 20 August 2003. As of 5 September
2003, only one response was not received (Hydro One).
The responses received from internal
stakeholders and subsequent follow-up with appropriate staff indicate the
following:
·
Development
Services (Infrastructure Approvals & Transportation Planning) responded to
the circulation that the Blackburn Hamlet Bypass Extension might require a
portion of this property subject to finalizing the preferred alignment for the
right of way through an Environmental Assessment (EA) amendment process.
Discussions with
Transportation Planning staff confirmed that the
analysis and evaluation carried out to date with respect to the EA amendment is
leading to a preferred option that would swing the alignment south of the
property as shown in Annex “B”. This means that when the EA amendment is
complete, the property in question may no longer be affected by the Bypass
alignment.
The EA amendment process is
not yet complete. It is anticipated that the analysis and report will be
completed by the end of September 2003.
The 30-day public review notice would then be posted in early October
2003. The preferred alignment may be approved as early as November 2003.
· The response to the circulation
indicated the site is currently being used by Transportation Utilities and
Public Works (TUPW Surface Operations - East) as an interim Snow Disposal
Facility (SDF) for the Cumberland/ Orleans area pending completion of studies
and approvals for the proposed Innes/Mer Bleue permanent SDF that would allow
the Trim Road SDF to be closed.
On 10 September 2003, an on site
meeting was held with TUPW staff to identify the location of:
(a)
the
portion of the property currently being used as an interim site for snow
disposal and;
(b) the potential area
that may be required, in the event that the studies indicate a permanent SDF,
is subsequently needed somewhere on the Trim Road property.
This review indicated that the
current interim snow disposal activities take place to the south portion of the
property shown on Annex “A”, which may form part of a land exchange.
It was also determined that the
development of currently vacant lands within the Urban Boundary adjacent to the
City’s property together with the future alignment for Blackburn Hamlet Bypass
Extension would require that any permanent SDF in this vicinity would have to
be relocated to the south west portion of the property. It was agreed that the
approximate 40.4 ha (100 ac) portion of the property south of the preferred
alignment for the Bypass Extension should be retained until a permanent SDF
site for the Orleans/Cumberland area has been approved.
In summary, it was concluded that
the proposed land exchange should not interfere with the current or future SDF
operations on this property provided that the City retains that portion of the
property which is located to the south of the preferred alignment for the
Bypass Extension.
· Emergency and Protective Services
(Fire Services) may be interested in this site for a new East station.
Based on the input from
Transportation Planning regarding the preferred alignment for the Bypass
Extension, as shown on Annex “B”, there will be approximately 4.5 ha (11 ac) of
additional City lands adjacent to the lands shown on Annex “A”. These could be
located north of the Bypass right of way and then be included in the Urban Area
if this is deemed to be appropriate at that time.
From the review of internal stakeholder
interests, it is clear that any land exchange involving the portion of the
City’s property at 2360 Trim Road as shown on Annex “A” must be conditional on
the preferred alignment for the Blackburn Hamlet Bypass Extension being
approved.
The solicitor for 1048219 Ontario Inc. / The
Regional Group has been informed that the approval process for the Bypass
Extension EA Amendment is likely to take approximately three (3) months to
complete. He has responded that this would be an acceptable time frame for
closing a transaction provided the Council authority to proceed with the land
exchange is in place by 26 September 2003, since he must advise the OMB at that
time as to whether the appeal before the Board should proceed.
As a result land exchange might, therefore, be
made as follows:
1.
The
land exchange would be for $1.00.
2.
The
land exchange would be conditional on:
a.
the
completion of legal surveys;
b.
any
easements that may be required;
c.
the
execution of an Agreement of Purchase and Sale acceptable to the General
Manager, Corporate Services;
d.
completion
of the Blackburn Hamlet Bypass Extension Environmental Assessment resulting in
a modified alignment and;
e.
to the
City not assuming any other costs related to developing the West Ridge
Subdivision or complying with agreements associated with this development
3.
The
City would declare surplus, and convey approximately 9.76 ha (24.12 ac) of the
City’s 58.6 ha holding (144.8 ac) as shown on Annex “A”.
4.
The
City would retain the remaining 48.8 ha (120.68 ac) of the 2360 Trim Road
property (approximately 48.844 ha or 120.68 ac) to provide for the right of way
requirements for the Blackburn Extension Bypass, an interim and potential
permanent Snow Disposal Facility site, and a possible site for other potential
future City needs such as a Fire Station.
5.
1048219
Ontario Inc. / The Regional Group would convey to the City the westerly portion
of the Phase IIIB West Ridge Subdivision lands consisting of approximately 7 ha
(17.2 ac) as shown on Annex “C”.
Two
independent appraisals have been completed for the potential land exchange that
indicate comparable values for both properties and the potential for completing
a land exchange for $1.00. There are
substantial differences in the type of, and development time frame/potential
for, the two parcels that can affect value.
If
the land exchange does not proceed, a favourable decision from the
OMB regarding the appeal would allow the subdivision approvals to be finalized.
It is anticipated that the land would then be serviced and sold within a
one-year period. The two independent appraisals received by the City have been
based on these assumptions although there is no guarantee that this will in
fact prove to be the case.
The
developer has indicated a profit expectation (based on the developer’s
anticipated timing, costs and lot sales) that would make the cost to the City
for the direct purchase of the westerly portion of the Phase IIIB lands more
than 1.5 times the appraised value of the property if acquired by purchase,
rather than by land exchange.
The
City’s property as shown on Annex “A” is in a location, which because of the
uncertainty of the alignment for Blackburn Bypass Extension and transit
corridors, and current market conditions, and activities, is considered by the
independent appraisals to be land, which may not be developable for five (5)
years. However, based on applications for draft plan approval for residential
subdivisions on nearby lands, and the status of the Blackburn Hamlet Bypass EA
amendment, it is entirely possible that with appropriate market demand, these
lands might be developable within as early as a two year time frame. This would
increase the land value significantly to perhaps as much as double the value.
Clearly,
the basis upon which the West Ridge developer would make the land exchange is
predicated on the risk/reward of trading land for which development is imminent
for land that is currently not likely to be developed for five (5) years and
bringing this land to market much earlier and reaping the resulting reward from
taking the calculated risk.
The
City, for its part, must look at the potential value of the City’s site on Trim
Road over the next few years relative to:
(a) the value of the lands being acquired in the West Ridge Subdivision;
(b) the resulting cost/benefit associated with ensuring the Upper Poole
Creek Wetlands are fully protected within the proposed West Ridge Phase IIIB
subdivision; and
(c) the possible increase in value of the Trim Road property as the
development horizon gets closer over
the next few years as a potential increased revenue source.
In this respect it is noted that the current application by the developer before the OMB protects approximately 2.95 ha (7.3 ac) of wetland and associated buffer zone within the westerly portion of Phase IIIB. Acquisition of this property by the City would increase this by another 4.01 ha (9.9 ac). Based on the current appraised value of the properties in the land exchange this would represent an acquisition cost of approximately $126,000 per acre for the additional wetland/buffer zone
In
addition, any land exchange should be conditional on the City not incurring any
further costs associated with the development of the West Ridge Subdivision,
such as collect backs for Abbot Street and cost sharing for the extension of
West Ridge Drive.
The
time frame associated with completing a transaction before the end of December
2003 is related to settling the matter currently being appealed to the OMB and
also to the current uncertainty as to whether, or when, the preferred alignment
for the Blackburn Bypass Extension will be approved. As a result, it will be
necessary to provide authority to the General Manager of Corporate Services to
negotiate and execute agreements for the conveyance of the property shown on
Annex “A” property and the acquisition of the westerly portion of the West
Ridge Subdivision Phase IIIB lands, as shown on Annex “C”.
ENVIRONMENTAL IMPLICATIONS
As set out
in the motions regarding this matter that were approved by City Council on 3
September 2003, the relevant Official Plan policies indicate that Council
should seek the advice of the Ministry of Natural Resources (MNR) for matters
pertaining to Provincially Significant Wetlands. The MNR has reiterated that
the most recent wetland boundary interpretation, which shows the wetland
extending to the northerly most limit of the westerly portion of the West Ridge
Subdivision Phase IIIB, remains the information upon which the City should base
subdivision design decisions.
The
developer’s application before the OMB does not follow this most recent
boundary but a previous boundary, which existed at the time of making the
subdivision application.
Council has
established policies for the protection of environmental lands that are of
provincial and regional significance including avenues of acquisition such as a
land exchange. Therefore, a land exchange would be in accordance with these
policies; settle the matter before the OMB; and ensure that the maximum amount
of wetland and buffer is protected as development of Phase IIIB of the West
Ridge Subdivision proceeds.
There are no other known environmental implications
in approving this land exchange, and the City will complete an up to date
environmental site assessment as part of its due diligence process if Council
should wish to proceed with the land exchange.
CONSULTATION
In
accordance with policies approved by City Council on 14 November 2001, the
availability of the property was circulated to all client City Departments,
including the Housing Branch and the Comprehensive Asset Management Division
and also to utility agencies to determine if it should be retained by the City
to be used in conjunction with any mandated program. The interest expressed by
internal stakeholder and the resulting consultation with these stakeholders has
been documented previously in the Discussion Section of this report.
External
agencies were not circulated.
The
Ward Councillor initiated the motion approved by Council with respect to
exploring the possibility of a land exchange; has been consulted during the
review process; and has subsequently been advised that a land exchange appears
possible if Council wishes to proceed with that option.
FINANCIAL IMPLICATIONS
Should Council wish
to proceed with the land exchange as set out in this report:
The net cost to the
City for the acquisition of the westerly portion of the West Ridge Subdivision
Phase IIIB lands is $1.00 plus GST, which will be funded from the Environmental
Resources Area Acquisition Capital Account 900138-506143.
The transaction revenue for the City owned parcel at
2360 Trim Road is $1.00 plus GST, and will be credited to Profit Centre
119909-407217.
SUPPORTING DOCUMENTATION
Attached as Annex “A’ is a sketch showing the 24.12
acre portion of the City’s 2360 Trim Road property to be sold; Annex “B” is a
sketch showing portion of the property to be sold in relation to the City’s
total property holdings at 2360 Trim Road and the existing approved and
preferred EA alignments for the Blackburn Hamlet Bypass Extension; and Annex
“C” is a sketch showing westerly portion of the West Ridge Phase IIIB
Subdivision lands to be acquired.
DISPOSITION
Should Council wish
to proceed with a land exchange as set out in this report then the disposition
for this land exchange is as follows:
Corporate Services Department - Real Estate Services Division/ Legal
Services Branch to negotiate and finalize the Agreement of Purchase and Sale.
Development Services - Transportation Planning to
complete the Blackburn Hamlet Bypass Extension EA amendment process.
Annex A
Annex
B
Annex C
