4. ComMunity LANDS Development Project -
Implementation Strategy

PROJET DE MISE EN VALEUR DES BIENS FONCIERS DE COmmunAutÉ -
STRATÉGIE DE MISE EN oeuvre

Committee Recommendations as amended

That Council:

1. Proceed with the development of the Longfields Subdivision lands on a phased basis, as described in this report, subject to registration of a plan of subdivision and on condition that a development agreement is executed prior to transfer of the lands from the City, and staff be directed to:

a) Undertake the necessary studies and design work required for registration of the plan of subdivision and subdivision agreement;

b) Prepare Request for Proposals (RFP’s) in 2007, as described in this report, for:

i) The sale of the Neighbourhood # 1 1ands (Beatrice to Woodroffe area) (Phase 1A) on a serviced lot/block basis with the City establishing the sales price and urban/architectural design guidelines/criteria for selecting the best proposal for a high standard of community design; and

ii) The sale of the Neighbourhood # 3 lands (Highbury Park Drive area), (Phase 1B) on an unserviced lands basis with the City establishing the sales price and environmental guidelines/criteria for selecting the best proposal for a demonstration “green community”; and

c) Report back to the Corporate Services and Economic Development Committee and Council with respect to the above RFP processes set out in this report prior to initiating the call(s) for proposals;

2. Proceed with the establishment of a Community Lands Development Corporation (holding company) for the Longfields Subdivision and Centrepointe Town Centre projects, as described in this report, by:

a) Approving this report and the “Corporate Purposes” and the “Corporate Structure and Organizational Direction” set out in Documents 3 & 4 attached hereto as the Business Case Study for establishing the Community Lands Development Corporation; and

b) Authorizing staff to proceed with the incorporation of the Community Lands Development Corporation for the Longfields Subdivision and Centrepointe Town Centre projects in accordance with the Business Case Study set out above and also in accordance with the provisions of the Municipal Act, 2001, as amended, and the Business Corporations Act and;

3. Direct staff to report back to CSEDC and Council with recommendations pertaining to the transfer of surplus lands from the City to the Community Lands Development Corporation.

Recommandations modifiéES du comité

Que le Conseil :

1. Entreprenne l'aménagement par étape des terrains du lotissement Longfields, selon ce qui est décrit dans le présent rapport, sous réserve de l'exécution de l'accord de lotissement et de l'enregistrement d'un plan de lotissement avant la cession du titre de propriété de la Ville et d’autoriser le personnel à :

a) Entreprendre les études et les travaux de conception nécessaires à l’enregistrement du plan de lotissement et de l’accord de lotissement des terrains du lotissement.

b) Préparer le processus de demande de propositions (DDP) en 2007, tel que décrit dans ce rapport, en vue de :

i) La vente des terrains du quartier n^o 1 (secteur Beatrice à Woodroffe), phase 1A, en tant que terrains ou pièces viabilisés, la Ville devant établir le prix de vente et les lignes directrices ainsi que les critères d’aménagement urbain et de conception architecturale à appliquer pour choisir la meilleure proposition satisfaisant à une norme élevée de conception communautaire.

ii) La vente des terrains du quartier n^o 3 (secteur de la promenade Highbury Park), phase 1B, en tant que terrains non viabilisés, la Ville devant établir le prix de vente et les lignes directrices ainsi que les critères environnementaux à appliquer pour choisir la meilleure proposition de « communauté verte » modèle.

c) Présenter un rapport au Comité sur les services organisationnels et le développement économique (CSODE) et au Conseil sur les processus de DDP prévus dans le présent rapport avant de lancer les appels de propositions.

2. Fasse les démarches nécessaires pour la constitution en société de la Société (société de portefeuille) d'aménagement des terrains communautaires de projets du lotissement Longfields et de centre d'activité de Centrepointe, conformément à ce rapport en :

a) Approuvant le présent rapport ainsi que les « buts sociaux » et les « structures sociales et orientation organisationnelle » qui sont énoncés respectivement dans les documents 3 et 4 ci-joints comme constituant l'analyse de rentabilisation en vue de la création d'une société d'aménagement de terrains communautaires.

b) Autorisant le personnel à faire les démarches pour la constitution en société de la Société d'aménagement des terrains communautaires des projets du lotissement Longfields et de centre d'activité de Centrepointe, conformément à l'analyse de rentabilisation mentionnée précédemment et aux dispositions de la Loi sur les municipalités de 2001, modifiée, et de la Loi sur les sociétés par action.

3. Donne au personnel l'instruction de présenter un rapport au CSODE et au Conseil contenant des recommandations sur le transfert des terrains excédentaires de la Ville à la Société d'aménagement des terrains communautaires.

Documentation

1. Executive Director's report (Business Transformation Services) dated 2 October 2007 (ACS2007-BTS-RPM-0008).

2. Extract of Draft Minute, 2 October 2007.

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

02 October 2007 / le 2 octobre 2007

Submitted by/Soumis par : Stephen A. Finnamore, Executive Director, Business Transformation Services / Directeur exécutif, Services de transformation des activités

Contact Person/Personne ressource : Gordon MacNair, Manager Real Estate Services

Real Property Asset Management/Gestion des actifs des biens immobiliers

(613) 580-2424 x 21217, Gordon.MacNair@ottawa.ca

City-wide / À l’échelle de la ville			Ref N°: ACS2007-BTS-RPM-0008
	SUBJECT:	ComMunity LANDS Development Project – Implementation Strategy
	OBJET:	PROJET DE MISE EN VALEUR DES BIENS FONCIERS DE COmmunAutÉ – STRATÉGIE DE MISE EN oeuvre

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee recommend Council:

a) Undertake the necessary studies and design work required for registration of the plan of subdivision and subdivision agreement;

b) Prepare Request for Proposals (RFP’s) in 2007, as described in this report, for:

ii) The sale of the Neighbourhood # 3 lands (Highbury Park Drive area), (Phase 1B) on an unserviced lands basis with the City establishing the sales price and environmental guidelines/criteria for selecting the best proposal for a demonstration “green community”; and

c) Report back to the Corporate Services and Economic Development Committee and Council with respect to the above RFP processes set out in this report prior to initiating the call(s) for proposals;

2. Authorize staff to continue with due diligence investigations/development plan design work for the Centrepointe Town Centre (CTC) project and, in order to assist in establishing the Corporate priorities in the budget process for the key transportation initiatives set out in the Centrepointe Town Centre Concept Plan as described in this report, staff be directed to:

a) Prepare a transportation master plan for the CTC based on the road network concept established from the Community Workshop process and initial due diligence investigations,

b) Prepare a transportation demand management demonstration plan for the CTC including a parking management strategy/implementation plan, and

c) Work collaboratively with Algonquin College with respect to the potential development of College facilities adjacent to and integrated with, the Baseline Transit Station consistent with the Centrepointe Town Centre Concept Plan;

3. Proceed with Phase 1 of the Centrepointe Town Centre Project in 2007, as described in this report, by:

a) Declaring the parcel of land, shown on the Annex “A” plan attached to this report, containing approximately 4424.0 m² being part of PIN 04692-0314 as surplus to the City’s needs;

b) Waiving those internal procedures for the disposal of surplus properties as set out in Schedule B of By-law 2002-38 that apply to the internal and external circulation of surplus properties, potential for housing, and publicly marketing the property for sale, with respect to the sale of the land set on the Annex “A” plan attached to this report;

c) Approving the sale of land, as set out on the Annex “A” plan attached to this report, to Uniform Developments & Leasing Ltd., for $800,000.00 plus GST pursuant to an Agreement of Purchase and Sale that has been received;

4. Proceed with the establishment of a Community Lands Development Corporation (holding company) for the Longfields Subdivision and Centrepointe Town Centre projects, as described in this report, by:

5. Direct staff to report back to CSEDC and Council with recommendations pertaining to the following:

a) The transfer of surplus lands from the City to the Community Lands Development Corporation; and

b) The transfer of some, or all, of the proceeds of sale from the Annex “A” property to the Community Lands Development Corporation to assist in funding the infrastructure for the Centrepointe Town Centre Project.

RECOMMANDATIONS DU RAPPORT

Que le Comité des services organisationnels et du développement économique recommande au Conseil :

1. D’entreprendre l'aménagement par étape des terrains du lotissement Longfields, selon ce qui est décrit dans le présent rapport, sous réserve de l'exécution de l'accord de lotissement et de l'enregistrement d'un plan de lotissement avant la cession du titre de propriété de la Ville et d’autoriser le personnel à :

a) Entreprendre les études et les travaux de conception nécessaires à l’enregistrement du plan de lotissement et de l’accord de lotissement des terrains du lotissement.

b) Préparer le processus de demande de propositions (DDP) en 2007, tel que décrit dans ce rapport, en vue de :

ii) La vente des terrains du quartier n^o 3 (secteur de la promenade Highbury Park), phase 1B, en tant que terrains non viabilisés, la Ville devant établir le prix de vente et les lignes directrices ainsi que les critères environnementaux à appliquer pour choisir la meilleure proposition de « communauté verte » modèle.

c) Présenter un rapport au Comité sur les services organisationnels et le développement économique (CSODE) et au Conseil sur les processus de DDP prévus dans le présent rapport avant de lancer les appels de propositions.

2. D’autoriser le personnel à poursuivre avec diligence ses enquêtes et ses travaux conceptuels relatifs au plan d'aménagement du projet de centre d'activité de Centrepointe (CAC) pour faciliter l’établissement de la priorité dans le processus budgétaire municipal des initiatives clés en matière de transports énoncées dans le plan conceptuel du centre d'activité de Centrepointe, décrit dans ce rapport à :

a. Préparer un plan directeur des transports basé sur le concept de réseau routier arrêté à la suite du processus d'ateliers communautaires et des enquêtes préalables.

b. Préparer un plan de gestion de la demande en transport pour le CAC comprenant une stratégie et un plan de mise en œuvre pour la gestion du stationnement.

c. Collaborer avec le Collège Algonquin pour ce qui est de l'aménagement éventuel, compatible avec le plan conceptuel du projet de centre d'activité de Centrepointe, d'installations du Collège adjacentes et intégrées à la station Baseline de transport en commun.

3. Entreprendre la phase 1 du projet de centre d'activité de Centrepointe en 2007, comme le décrit le rapport, en prenant les mesures suivantes :

a) Déclarer la parcelle illustrée dans le plan de l'annexe A ci-jointe, couvrant environ 4 424,0 m² et faisant partie du PIN 04692-0314, comme excédentaire en regard des besoins de la Ville.

b) Suspendre, pour la vente de terrain décrite à l’annexe A du présent rapport, les procédures internes applicables à la cession des propriétés excédentaires qui sont établies à l'annexe B du Règlement municipal 2002-38 et qui portent sur l'annonce interne et externe des propriétés excédentaires, leur utilisation éventuelle à des fins de logement et la mise sur le marché public des propriétés à vendre selon la recommandation n^o3a.

c) Approuver la vente de la parcelle décrite dans le plan de l’annexe A joint au présent rapport à Uniform Urban Developments and Leasing Inc. pour la somme de 800 000,00 $, plus TPS, conformément à la convention d'achat et de vente qui a été reçue.

4. Faire les démarches nécessaires pour la constitution en société de la Société (société de portefeuille) d'aménagement des terrains communautaires de projets du lotissement Longfields et de centre d'activité de Centrepointe, conformément à ce rapport en :

a. Approuvant le présent rapport ainsi que les « buts sociaux » et les « structures sociales et orientation organisationnelle » qui sont énoncés respectivement dans les documents 3 et 4 ci-joints comme constituant l'analyse de rentabilisation en vue de la création d'une société d'aménagement de terrains communautaires.

b. Autorisant le personnel à faire les démarches pour la constitution en société de la Société d'aménagement des terrains communautaires des projets du lotissement Longfields et de centre d'activité de Centrepointe, conformément à l'analyse de rentabilisation mentionnée précédemment et aux dispositions de la Loi sur les municipalités de 2001, modifiée, et de la Loi sur les sociétés par action.

5. Donner au personnel l'instruction de présenter un rapport au CSODE et au Conseil contenant des recommandations sur :

a) le transfert des terrains excédentaires de la Ville à la Société d'aménagement des terrains communautaires;

b) sur le transfert, en tout ou en partie, du produit de la vente de terrain mentionnée à l’annexe A à la Société d'aménagement des terrains communautaires pour contribuer au financement d'une partie de l'infrastructure nécessaire à la réalisation du projet de centre d'activité de Centrepointe.

EXECUTIVE SUMMARY

The Longfields Subdivision and Centrepointe Town Centre are strategic City real estate development projects identified in the Neighbourhood Agenda of the City’s Corporate Plan, for the development of City owned lands based on collaboration with community representatives (“Community Lands Development Projects”).

For the Longfields Subdivision, additional planning work has been completed with respect to the Council approved Concept Plan based on the City’s 20/20 Growth Management Plans; consultation held with representatives from the Ottawa-Carleton Home Builders Association and Small Builders Council; a public open house held on 6 March 2007 and a number of planning and supporting studies completed together with a financial analysis. Applications for draft plan subdivision approval and for the associated zoning amendments have now been submitted.

With respect to the Centrepointe Town Centre, four public workshops were held between February and June in 2006 and initial due diligence has since been carried out based on the concept plan that evolved from the workshop process. Staff have also worked collaboratively with Algonquin College staff with respect to the potential development of College facilities integrated with the Centrepointe Town Centre and in particular, the Baseline Transit Station. As well, staff has been reviewing a proposal based on the concept plan submitted by Uniform Developments & Leasing Ltd. for the development of a portion of the Town Centre lands adjacent to the Uniform’s existing development at 117 Centrepointe. A fifth public workshop was held on 7 June 2007 to review the findings of the due diligence and associated project-planning work carried out over the past year.

The Longfields Subdivision and the Centrepointe Town Centre projects have been advanced by staff to the point where further Council direction and approvals are now required for both projects. Updates on both these projects can be found in more detail in the Project Information Reports attached as Documents 1 & 2 attached hereto.

Recommendation # 1 of this report is based on the information set out in the Project Information Report for the Longfields Subdivision Project attached as Document # 1 to this report.

Recommendations #’s 2, 3 and 5b of this report are based on the information set out in the Project Information Report for the Centrepointe Town Centre Project attached as Document # 2 to this report.

On 20 December 2005, City Council considered the establishment of four additional FTE’s, within the Real Estate Services Division (RESD) of RPAM for implementing Community Lands Development Projects subject to these resources being provided on a financially self-sustaining basis and not creating additional future pressure on the City’s base budget.

Staff was directed by Council to report back with respect to the specific implementation plan for undertaking Community Lands Development Projects including the potential creation of a development corporation (“Ottawa Lands Corporation”) before filling any positions related to the additional FTE’s.

As a result, staff has since investigated the potential and requirements for establishing a development corporation and also reviewed options related to the development of a “Vehicle” to implement the development of Community Lands Development Projects. The three options explored were as follows:

1. a fully independent/staffed development corporation with the City as the sole shareholder;

2. a work unit within RESD working within City processes; and

3. a work unit within RESD utilizing a development corporation umbrella “holding” corporation - with City as sole shareholder and Council designated Board of Directors and Corporate Officers (but not independently staffed) to provide flexibility in implementing the projects and achieving the City’s objectives (e.g. entering into subdivision agreements with the City for registration on title).

It was concluded that a work unit within RESD utilizing a “holding” corporation (a “Community Lands Development Corporation”) as a Council controlled development vehicle would be the most effective implementation vehicle to assist RESD in implementing Community Lands Development Projects and more specifically the Longfields Subdivision and Centrepointe Town Centre projects.

The establishment of the Community Lands Development Corporation for the Longfields Subdivision and Centrepointe Town Centre projects as set out in Recommendation # 4 will provide a vehicle controlled by and available at the discretion of Council to clearly separate the City’s land ownership/real estate development role as a corporate entity under the Corporations Act from its planning authority role as the Municipality under the Municipal and Planning Acts as circumstances may so warrant. This will then allow for the Community Lands Development Corporation as the developer to enter into subdivision/development agreements with the City as the Municipality once the lands have been transferred from the City to the Development Corporation which transfer will be the subject of a further report to CSEDC and Council as set out in Recommendation # 5a.

The Community Lands Development Corporation will also provide a vehicle for entering into agreements with third parties that can provide additional corporate control, based on contract provisions when selling development lands, in achieving the project objectives established by Council.

SOMMAIRE

Le lotissement Longfields et le centre d’activité de Centrepointe sont des projets d’aménagement immobilier stratégiques de la Ville identifiés dans le Programme pour les quartiers du Plan directeur municipal, aux fins de l’aménagement de terrains dont la Ville est propriétaire, en collaboration avec des représentants de la collectivité (« Projets d’aménagement des terrains communautaires »).

Pour le lotissement Longfields, les travaux de planification ont été achevés en ce qui a trait à l’approbation par le Conseil du plan conceptuel fondé sur les plans de gestion de la croissance 20/20 de la Ville; une consultation a eu lieu auprès des représentants de l’Association des constructeurs d’habitations d’Ottawa-Carleton et du Small Builders Council; une réunion publique s’est tenue le 6 mars 2007 et des études de planification et de soutien ont été effectuées, ainsi qu’une analyse financière. Les demandes d’approbation des plans de lotissement provisoires et des modifications de zonage connexes ont maintenant été présentées.

Il y a eu quatre ateliers publics pour le centre d’activité de Centrepointe entre février et juin 2006, l’intervention diligente initiale a été accomplie selon le plan conceptuel qui découle du processus des ateliers. Le personnel a aussi collaboré avec celui du Collège Algonquin pour l’aménagement éventuel d’installations du Collège intégrées dans le centre d’activité de Centrepointe et, en particulier, la station de transport en commun Baseline. Le personnel a aussi examiné une proposition formulée selon le plan conceptuel de la Uniform Developments & Leasing Ltd. pour l’aménagement d’un segment des terrains du centre d’activité adjacent à l’aménagement actuel de la Uniform au 117, Centrepointe. Il y a eu un cinquième atelier public le 7 juin 2007 pour examiner les constatations de l’intervention diligente et le travail de planification de projet connexe accompli depuis l’an dernier.

Le personnel a fait le suivi des projets de lotissement Longfields et du centre d’activité de Centrepointe au point où l’orientation et les approbations du Conseil sont maintenant nécessaires pour les deux projets. Les mises à jour plus détaillées de ces projets sont versées aux Rapports d’information sur le projet joints en documents 1 et 2 aux présentes.

La recommandation n^o 1 du présent rapport est formulée selon les données du Rapport d’information sur le projet de lotissement Longfields joint en document n^o 1 au présent rapport.

Les recommandations n^o 2, 3 et 5b du présent rapport sont formulées selon les données du Rapport d’information sur le projet du centre d’activité de Centrepointe joint en document n^o 2 au présent rapport.

Le Conseil municipal a considéré quatre ETP supplémentaires à la Division des services immobiliers (DSI) de la GABI le 20 décembre 2005 pour la mise en œuvre des projets d’aménagement de terrains communautaires à condition que la prestation de ces ressources soit autofinancée et n’exerce pas de pressions supplémentaires à l’avenir sur le budget de base de la Ville.

Le Conseil a demandé au personnel de faire rapport sur le plan de mise en œuvre en particulier pour lancer les projets d’aménagement de terrains communautaires, y compris la création éventuelle d’une société d’aménagement (« Société d’aménagement de terrains d’Ottawa ») avant de combler n’importe quel poste pertinent aux ETP supplémentaires.

Le personnel a donc fait enquête sur la possibilité d’établir une société d’aménagement et sur les exigences. Il a aussi examiné des options liées à la mise au point d’un « véhicule » pour élaborer les projets d’aménagement de terrains communautaires. Voici les trois options examinées :

1. une société d’aménagement entièrement dotée – autonome dont la Ville est seul actionnaire,

2. une unité de travail à la DSI encadrée par les processus de la Ville,

3. une unité de travail à la DSI qui fait appel à une société de « portefeuille » générale de la société d’aménagement dont la Ville est seul actionnaire et dont le Conseil désigne le Conseil d’administration et les agents de la société constituée (mais qui n’est pas dotée en toute autonomie) pour la mise en œuvre des projets avec flexibilité et pour atteindre les objectifs de la Ville (p. ex., conclure des ententes de lotissement avec la Ville pour enregistrement sur titre).

Il a été conclu qu’une unité de travail à la DSI qui fait appel à une société de « portefeuille » (la « Société d’aménagement de terrains communautaires ») comme outil d’aménagement sous le contrôle du Conseil serait le moyen de mise en œuvre le plus efficace pour aider la DSI à réaliser les Projets d’aménagement de terrains communautaires et, en particulier, les projets de lotissement Longfields et du centre d’activité de Centrepointe.

L’établissement de la Société d’aménagement de terrains communautaires pour les projets de lotissement Longfields et du centre d’activité de Centrepointe déterminés dans la recommandation n^o 4 constituerait un outil discrétionnaire sous le contrôle et à la disposition du Conseil pour faire une distinction claire entre le rôle de propriétaire de terrains – promoteur immobilier de la Ville à titre de société constituée en vertu de la Loi sur les corporations et le rôle d’autorité chargée de l’urbanisme à titre de municipalité en vertu de la Loi sur les municipalités et de la Loi sur l’aménagement du territoire, compte tenu des circonstances. Voilà qui permettra à la Société d’aménagement de terrains communautaires de conclure, à titre de promoteur, des ententes de lotissement – d’aménagement avec la Ville à titre de municipalité, une fois le transfert des terrains effectué de la Ville à la Société d’aménagement, ce dernier fera l’objet d’un rapport subséquent au CSODE et au Conseil tel qu’énoncé à la recommandation 5a.

La Société d’aménagement de terrains communautaires sera aussi un moyen de conclure des ententes avec des tierces parties qui peuvent accentuer le contrôle de la société constituée, selon les dispositions contractuelles, lorsqu’elle vend des terrains à aménager, afin d’atteindre les objectifs des projets établis au Conseil.

BACKGROUND

The City’s Corporate Plan and related Departmental Business Plans, which are rooted in the Ottawa 20/20 Growth Management Plans and tied to the City’s Long Range Financial Plan, establish departmental projects that fall into three basic categories:

· Community Lands Development Projects [Sale/Development of strategic City-owned properties involving real estate transactions (acquisitions/disposals/asset management) that require strategic real estate expertise to achieve defined overall Corporate objectives (social, environmental, economic) rather than a specific departmental program objective];

· Strategic City Program(s) Projects [P3 Projects as an alternative implementation vehicle for delivering projects related to specific City departmental programs (infrastructure, community facilities and related services)];

· Standard Departmental Program Projects (Projects undertaken by City departments through normal City processes).

Strategic City Real Estate Development Projects were identified in the Neighbourhood Agenda of the Corporate Services Departmental Business Plan, approved by Council on 28 September 2005, to initiate development of City owned lands, working in collaboration with community representatives. The objectives of these “Community Lands Development Projects” included as follows:

1. Implement City plans (e.g. concept plans, community design plans or community improvement plans) associated with strategic parcels of City-owned lands;

2. Showcase 20/20 growth management principles on these City-owned lands:

· Work, shop and play in same community,

· Compact development with modified street grid,

· Innovative planning & design,

· Sustainable development practices,

· Affordable housing; and

3. Provide opportunities for innovation and ‘small builders’.

The mandate for Community Lands Development Projects can be described in a manner similar to that established for the Canada Lands Corporation as follows:

Mandate:

Ensure the commercially oriented, orderly disposition of selected surplus City real properties with optimal value to the City’s taxpayers. In carrying out this mandate, "optimal value" is to be seen as pertaining to both financial and non-financial community value. The disposition of these properties will be sensitive to local neighbourhood and/or overall community objectives, as approved by Council in the Corporate Plan, and local real estate market conditions.

Current Community Lands Development Projects:

The Business Plan for the former Corporate Services Department, as approved by Council on 28 September 2005 and which continues to provide direction to the Business Transformation Services Department, includes action items to support the Neighbourhood Agenda of the Corporate Plan with respect to the initiation of Community Lands Development Projects as follows:

· Longfields Subdivision:

“Develop a framework and implement a smart growth demonstration community on the City-owned lands in Longfields. Within the guidelines established by the Council approved “Longfields Concept Plan”, the development will focus on a balanced return on investment, affordable housing and the environment. With the intent to provide a greater range of development opportunities with the private sector, this project will embrace innovative planning principles and design standards that are in line with the 20/20 Vision”.

· Centrepointe Town Centre:

“Develop and implement a strategy for the Centrepointe Project, which will see the development of City-owned lands at Baseline Road and Woodroffe Avenue, integrating 100 Constellation Crescent, Ben Franklin Place, vacant and transit lands to 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”.

Current Status Longfields/Centrepointe Projects:

Longfields:

· Additional planning work has been completed to enhance the Council approved Concept Plan and better reflect the objectives of the City’s 20/20 plans;

· Three workshops were held with “small builders” representatives to obtain feedback on the enhanced concept;

· Workshops were held on 29 January 2007 and 2 March 2007 to obtain feedback from representatives of the Ottawa-Carleton Home Builders Association regarding the planning and implementation of this project;

· Meetings with the agent for Jock River Farms Developments (previous owner of part of the lands expropriated by the former City of Nepean) have been held regarding the implementation of the development for the area in the vicinity of the proposed Highbury Park Drive;

· A public open house was held on 6 March 2007 at the Walter Baker Centre to obtain feedback on the enhanced Concept Plan prior to submitting applications for draft plan approval and zoning amendments;

· The planning and supporting studies, required to submit a complete application for draft plan approval and zoning amendments for this subdivision, have been completed including as follows:

Ø Environmental Impact Statement /Muncaster

Ø Tree Preservation/Protection Plan /Muncaster

Ø Functional Servicing Report/McManus

Ø Phase I & Phase II (SDF area) EA’s/AMEC

Ø Planning Rationale/Paquette Planning

Ø Phase I Archaeological statement/Jacques Whitford

Ø Transportation Impact Study/DelCan

Ø Draft Plan/Surveys & Mapping;

· Financial Proformas have been completed for 4 development scenarios; and

· Applications were submitted in June 2007 for Draft Plan of Subdivision approval and Zoning amendments.

Centrepointe:

· Four (4) public workshops with the community and stakeholders were held between February and June 2006 and a "Recommended Concept Plan" was produced by the participants;

· A report detailing the workshop process has been completed;

· Initial “due diligence” analysis has been carried out to evolve, a viable development plan and implementation strategy from the “Recommended Concept Plan”;

· Uniform Developments & Leasing Ltd. has submitted a proposal for the development of the City owned lands adjacent to Uniform’s existing development at 117 Centrepointe that is consistent with the “Recommended Concept Plan”;

· City staff has worked collaboratively with Algonquin College staff with respect to the potential for development of College facilities adjacent to, and integrated with, the Baseline Transit Station consistent with the Centrepointe Town Centre Concept Plan;

· Based on input from the workshops, first priority in the “due diligence” process has been given to the transportation study, parking strategy, and hydro corridor components and a further workshop was held on 7 June 2007 to review the initial findings for these components.

The current status for these projects is outlined in more detail in the Project Information Reports attached as Documents 1 & 2 attached hereto.

Implementation Vehicle

On 20 December 2005, City Council considered as part of the City’s 2006 Operating Budget, the establishment of four additional FTE’s within the Real Estate Services Division of RPAM subject to these resources being provided on a financially self-sustaining basis and not creating additional future pressure on the City’s base budget. Staff was directed by Council to report back with respect to the specific implementation plan for undertaking strategic real estate development projects, including the potential creation of a development corporation, before filling any positions related to the additional FTE’s.

Development Corporation

Previous Legislative Authority:

Prior to 1 January 2007, the City had only limited authority to undertake land development under the provisions of the Municipal Act, 2001. While Section 203 of the Municipal Act, 2001 provided for the Lieutenant Governor in Council to make regulations to allow the establishment and incorporation of municipal business corporations, the resulting Ontario Regulation 168/03 set out the authority for such corporations on a prescriptive basis and did not specifically provide for a municipal land development corporation.

New Legislative Authority:

During the period from April to December 2006, staff took action as follows:

· Prepared information to support a request for an amendment to O. Reg. 168/03 for the proposed Ottawa Lands Corporation based on provisions similar to those in O. Reg. 168/03 for York and Brampton and on the “Corporate Purposes” and the “Corporate Structure and Organizational Direction” set out respectively in Documents #’s 3 & 4 of this report;

· Reviewed the proposal for the amendment with the Ministry of Municipal Affairs and Housing (MMAH); and

· Held further discussions with the Ministry with regard to changes resulting from the amendments to the Municipal Act, 2001.

On 1 January 2007, Bill 130 (the Municipal Statute Law Amendment Act, 2006) came into effect with respect to amendments to the Municipal Act, 2001 and O. Reg. 168/03 was repealed and replaced by O. Reg. 599/06.

Ontario Regulation 599/06 provides that a municipality may establish a corporation for the sole purpose of providing one or more economic development services. Economic development services are defined to include "the acquisition, development and disposal of sites for residential, industrial, commercial and institutional uses, the provision of residential housing and undertaking community improvement consistent with a community improvement plan”.

Based on the broader authority provided by this regulation, it is now possible to pursue the establishment of a corporation to implement projects such as the Longfields Subdivision and the Centrepointe Town Centre Project.

DISCUSSION

Implementation of Longfields Subdivision and Centrepointe Town Centre Projects

Staff have advanced the Longfields Subdivision and Centrepointe Town Centre Projects to the point where further Council direction and approvals with respect to the project implementation processes are now required.

Recommendation # 1 of this report is based on the information set out in the Project Information Report for the Longfields Subdivision Project attached as Document # 1 to this report.

Implementation “Vehicle”

In order to fully implement Recommendations #’s 4 and 5 of this report, further Council approval is also required with respect to an implementation ‘vehicle’ for Community Lands Development Projects.

Options Considered - Implementation Vehicle:

Staff has considered three basic options as follows:

· A fully independent/staffed development corporation with the City as the sole shareholder;

· A work unit within RESD working within City processes; and

· A work unit within RESD utilizing a development corporation umbrella (“holding” corporation - with City as sole shareholder and Council designated Board of Directors and Corporate officers (but not independently staffed) to provide flexibility in implementing the projects and achieving the City’s objectives (e.g. entering into subdivision agreements with the City for registration on title).

With the changes to the Municipal Act on 1 January 2007 resulting from the enactment of the provisions of Bill 130, the City now has clearer authority to plan, service, and develop its properties for certain municipal and/or economic development purposes.

In addition, the disposal process for City properties which are surplus to City program needs is subject to Council approved policy and procedures and the City’s corporate/land planning direction and development criteria guidelines for specific properties are also subject to Council approval.

The City, acting as a developer can follow the normal subdivision/site plan approvals processes up to and including draft plan/site plan approval stages and can register subdivision plans; however, the City cannot currently enter into agreements with itself such as subdivision or site plan agreements since this would be a legal nullity.

The sale of City lands without subdivision/site plan agreements could be achieved through other forms of agreements (development agreements/covenants) as part of the agreement of purchase and sale process but this is a non-standard and more legally awkward process.

The provisions of Reg. 599/06 now provide the necessary legislative authority under the Municipal Act for the City to establish and incorporate a Community Lands Development Corporation that would allow this City owned corporation to follow the standard approval and agreement processes that other developers are required to follow.

While Reg. 599/06 requires that a municipality conduct a Business Case Study before establishing such a corporation and consult with the public about the proposal to establish the corporation unlike its predecessor Reg. 168/03, it does not prescribe the content for a Business Case Study nor the manner of public consultation. These matters are now left to the sole discretion of the municipality.

RESD Work Unit and Community Lands Development Corporation

Staff recommends that a work unit within RESD utilizing a “holding” corporation (a “Community Lands Development Corporation”), as a Council controlled development vehicle, would be the most effective implementation vehicle by:

· Continuing to have a unit of RESD work within the City’s existing organizational structure to achieve the objectives for Community Lands Development Projects set out in Council approved Corporate Plans;

· The RESD unit remaining as integral part of the City’s centre of real estate expertise;

· Providing control and flexibility to Council in directing how projects might be best undertaken. (e.g. utilize standard City real estate processes, including the use of requests for proposals based on Council approved criteria or by undertaking development through a Community Lands Development Corporation); and

· Identifying how City policies and processes might be streamlined with respect to all City or private sector initiatives.

Given that the proposed implementation vehicle is a Council controlled “holding” corporation to assist RESD in implementing Community Lands Development Projects and more specifically the Longfields Subdivision and Centrepointe Town Centre projects currently set out in the Neighbourhood Agenda of the Corporate Plan, it is recommended that the Business Case Study for the Community Lands Development Corporation consist of this report and the documents outlining the “Corporate Purposes” and the “Corporate Structure and Organizational Direction” attached to it as Documents #’s 3 & 4. Recommendation # 4 of this report has been formulated accordingly.

The establishment of the Community Lands Development Corporation as set out in Recommendation # 4 will provide a vehicle, controlled by and available at the discretion of Council, to clearly separate the City’s land ownership/real estate development role as a corporate entity under the Corporations Act from its planning authority role, as the Municipality under the Municipal and Planning Acts as circumstances may so warrant.

This will then allow for the Community Lands Development Corporation, as the developer to enter into subdivision/development agreements with the City, as the Municipality once the lands have been transferred from the City to the Development Corporation which transfer will be the subject of a further report to CSEDC and Council as set out in Recommendation # 5a.

The Community Lands Development Corporation will also provide a vehicle for entering into agreements with third parties that can provide additional corporate control when selling development lands, in achieving the project objectives established by Council.

In the future, if Council directs that other Community Lands Development Projects be implemented under the umbrella of a development corporation, this can be achieved by changing the mandate (amend business plan, articles of incorporation, and corporate by-laws) for the Community Lands Development Corporation for the Longfields Subdivision and Centrepointe Town Centre Projects to include these other projects or Council can approve the business plans for, and incorporate, separate development corporations for these projects as Council may deem appropriate.

It should be noted that under the provisions of Section 203 of the Municipal Act, 2001 as amended and Reg. 599/06, the City has the ability to loan staff to the proposed corporation without triggering severance and other issues if, from time to time, one or several City employees is seconded to the new corporation.

Recommendation # 5b is based on the information set out in Document #2 and the implementation of Recommendation # 4 of this report.

The requirement under Reg. 599/03 for public consultation on the Business Case Study can be met when CSEDC considers this report at its meeting on 27 August 2007.

CONSULTATION

The consultation processes to date for the Longfields and Centrepointe Town Centre Projects are detailed in the Project Information Reports attached to this report as Documents #’s 1 & 2 respectively.

With respect to a Community Lands Development Corporation, the City Manager consulted with the Deputy Minister of Municipal Affairs and Housing (MMAH) regarding the City’s proposed Ottawa Lands Corporation and the potential for MMAH to support amendments to Reg. 168/03 in that regard. This resulted in further detailed discussions between City staff (RPAM and Legal Services) and MMAH staff to ensure that the City’s legislative requirements for establishing a municipal corporation were taken into account by MMAH before making new regulations under Section 203 of the Municipal Act when enacting the provisions of Bill 130.

In 2005, City staff met with representatives of the Ottawa-Carleton Home Builders Association (OCHBA) with respect to the City acting as a community developer and the OCHBA subsequently confirmed in writing on 13 December 2005 that:

“The Ottawa-Carleton Homebuilders Association supports the municipal development of the Longfields lands based upon the following primary objectives:

1. that the serviced lots will be first offered to the ‘small builder’ members of the OCHBA;

2. that the subdivision design will incorporate objectives and policies of the 2003 Official Plan;

3. that there will be a broad mix of housing types;

4. that the project be used to create a model for market priced affordable housing.”

Staff has continued to consult with the OCHBA in this matter and further workshops were held with the OCHBA on 29 January 2007 and 19 March 2007.

At these meetings OCHBA representatives indicated that a City controlled development company should work on same basis as, and rules for, a private developer. They suggested that the corporation should be completely independent of City Council on a day-to-day basis and operate on a for profit basis similar to Hydro Ottawa.

Staff advised the OCHBA representatives that the transfer of properties to a land development company would be subject to Council approval which would require compliance with Council approved policies for City owned properties including planning/development guidelines/criteria approved by Council for each property transfer. This will in some cases result in higher standards (e.g. preservation, on City owned lands, of all woodlots designated as Urban Natural Areas; provision of affordable housing in accordance with the Housing First Policy) than set out for a private developer with a potentially lower rate of financial return to the City. As a result, staff indicated to the OCHBA that establishing a totally independent development corporation may not be practical but a “holding” corporation that would provide a “tool” for the City to enter into subdivision/site plan agreements and to service lands and develop lands, where deemed appropriate by Council to meet the objectives of the City’s Council approved Corporate Plan, would appear to have benefits.

The OCHBA representatives also commented that the City should ensure that the financial proformas for City land development projects identify the extent of “lost revenue” related to City self-imposed policy requirements, such as over dedication of parkland, retention of low quality woodlots, and “single loaded development” along road fronting parks and woodlots that would not be required of a private developer.

Staff indicated that project and financial proforma information will be made available to Council which will allow for a review of each proposed project/project stage not only in terms of the degree to which the Council’s development objectives are being met but also in terms of the relative cost, net revenue and risk associated with the development plan based on Council’s approved Community Developer approach and objectives as compared to a development plan that is more reflective of a private developer approach.

ENVIRONMENTAL IMPLICATIONS.

The Project Information Reports for the Longfields and Centrepointe Town Centre Projects, attached to this report as Documents #’s 1 & 2 respectively provide details as to how the proposed development processes for the Longfields and Centrepointe projects will adhere to, and promote the City’s environmental policies and strategies.

HOUSING FIRST POLICY

FINANCIAL IMPLICATIONS

The sale of the lands in the Centrepointe Town Centre to Uniform Developments & Leasing Ltd. as set out in Recommendation # 3 of this report will result in revenue of approx. $800,000.00 subject to adjustments on closing and will be credited initially to the City Sale of Surplus Land account.

In regards to the four FTE’s for the Community Lands Development Project, these positions were approved as part of the 2006 operating budget of the Real Estate Services Division of RPAM. There is no additional financial impact as a result of the recommendations in this report.

When staff reports back to CSEDC and Council regarding the initiation of the RFP processes for the Longfields Subdivision Project as set out in Recommendations #’s 1b & 1c, the transfer of lands to the Community Lands Development Corporation as set out in Recommendation # 5a and the retention of proceeds from the sale of the lands in Phase 1 of the Centrepointe Town Centre Project as set out in Recommendation # 5b of this report, the financial implications related to those initiatives will be specifically identified in the further staff reports.

SUPPORTING DOCUMENTATION

Attached are Documents #’s 1, 2, 3 & 4; Annex “A” Plan, which provide details regarding the recommendations and information set out in this report.

DISPOSITION

Following Council’s approval of Recommendation # 3 of this report, RESD and the Legal Services Branch, which was consulted during the preparation of this Report will complete the sales transaction with Uniform Developments & Leasing Ltd.

Following Council’s approval of Recommendation # 1, RESD with the assistance of the Supply Management Division will prepare the RFP documents for the sale of Phases 1A & 1B of the Longfields Subdivision and prepare a report in this matter for further consideration by CSEDC and Council.

Following Council’s approval of Recommendations # 4 of this report, RESD and the Legal Services Branch will take actions as required to incorporate the Community Lands Development Corporation described in this report.

DOCUMENT 1

LONGFIELD SUBDIVISION PROJECT

INFORMATION REPORT

1. Corporate Mandate

The Corporate Services Departmental Business Plan as approved by Council on 28 September 2005, includes action items to support the Neighbourhood Agenda of the Corporate Plan with respect to the initiation of Community Lands Development Projects as follows:

· Longfields Subdivision:

2. Summary of Work to Date:

· Additional planning work has been completed to enhance the Council approved Concept Plan and better reflect the objectives of the City’s 20/20 plans;

· Three workshops were held with “small builders” representatives to obtain feedback on the enhanced concept;

· Discussions with the school board regarding land exchange involving parcel on west side of Pierre Elliot Trudeau School;

· The planning and supporting studies, required to submit a complete application for draft plan approval and zoning amendments for this subdivision, have been completed including as follows:

o Environmental Impact Statement /Muncaster

o Tree Preservation/Protection Plan /Muncaster

o Functional Servicing Report/McManus

o Phase I & Phase II (SDF area) EA’s/AMEC

o Planning Rationale/Paquette Planning

o Phase I Archaeological statement/Jacques Whitford

o Transportation Impact Study/DelCan

o Draft Plan/Surveys & Mapping

o Noise Vibration Study/ Gradient Microclimate engineering

o Retail Study/Corporate research Group

· Financial proformas have been completed for 4 development scenarios;

· Applications were submitted in June 2007 for Draft Plan of Subdivision approval and Zoning amendments;

· Public meeting on Draft Plan scheduled for 17 October 2007; and

· Draft plan approval anticipated by mid-December 2007.

3. Project History

50 hectares of vacant City-owned land located between Greenbank & Woodroffe;

Rural lands expropriated for business park in 1971;

Secondary Plan adopted on 25 April 1990 and lands designated for residential use;

Draft Plan of Subdivision approved 25 May 1998 for 1551 units, yet never registered;

A more detailed Secondary Plan adopted on 30 November 2000;

Concept Plan approved by Council on 24 July 2002 for 1274 units;

On 28 September 2005 Real Property Asset Management (RPAM) was tasked with enhancing and implementing the Concept Plan, in concert with the City’s 20/20 Growth Management Strategy.

4. Planning Framework

Secondary Plan

Ø Objectives and policies:

· “housing should not back onto arterial roads”;

· “housing is encouraged to face pocket parks”;

· “a modified grid pattern is to be implemented”;

· “streetscapes should be at a human scale”;

· “the rapid bus corridor shall be located along the railway”;

· “street trees shall be encouraged”;

· “the city shall protect for cycling lanes along Longfields Drive”;

· “the provision of on-street spaces will be encouraged”;

· “sidewalks should be provided on local streets”;

· “all garages should be even with or set back from the main façade”.

Concept Plan 2002

Ø Vision:

• Develop an infill residential community comprised of low, medium & high density housing forms; meeting certain density targets; complemented by institutional and limited commercial uses; on an modified-grid road network; with access to rapid transit; pathways for pedestrians & cyclists; an array of public parks; preservation of environmental features; lots fronting onto collector streets; and respecting the surrounding neighbourhood fabric;

• The Concept Plan is to serve as a guide in overseeing the disposal of the city-owned lands.

LONGFIELDS SUBDIVISION - 2002 CONCEPT PLAN

5. Enhanced Concept Plan:

As a result of the Corporate Plan direction of September 2005 to undertake the project using innovative planning principles and design standards that are inline with the City’s then defined 20/20 vision, enhancements were made to the 2002 Concept Plan by City real estate and planning staff to direct a demonstration project.

Demonstration Project

The enhancements to the concept plan are intended to “demonstrate” the project objectives as follows:

§ 4 distinct neighbourhoods, embracing public parks;

§ Compact development;

§ An array of housing types for all income ranges;

§ Neighbourhood conveniences and a central transit station;

§ A modified grid road network complemented by a rapid bus corridor;

§ A network of pathways for pedestrians and cyclists;

§ Extensive landscaping and the preservation of environmental features;

§ Innovative planning principles and progressive design standards.

It was recognized that it would be difficult to demonstrate all of the above objectives for each of the neighbourhoods shown on the plan and, therefore, certain of the objectives are highlighted for a specific neighbourhood as follows:

Ø Neighbourhood #1

· Progressive urban design, architecture & landscaping throughout;

· Attractive streetscapes with hidden garages throughout; garages positioned to the rear of lots or accessed via laneways;

· Central park as neighbourhood focal point, to double as dry stormwater pond;

· Modified grid street network with a north/south central axis;

· Mix of singles, semis & towns throughout, with multi-unit buildings fronting on Woodroffe.

Ø Neighbourhood #2:

· Progressive urban design, architecture & landscaping throughout;

· An array of housing styles to embrace a central park & tot lot;

· Singles, semis & towns to back onto a rear laneway to the north;

· Modified grid street network;

· Institutional site in southeast corner for house of worship, daycare centre or similar.

Ø Neighbourhood #3:

· Development of singles and towns in a “green” neighbourhood focused on the Highbury Woods Urban Natural Area (UNA);

· Opportunity for demonstration of environmentally sustainable development practices;

· Potential collaborative planning with previous landowner (i.e. expropriated party).

Ø Neighbourhood #4:

· Towns, stacked towns & flats surrounding a rapid bus station and a “main” street boasting neighbourhood services;

· More compact development & “main” street framing a central transit station and courtyard;

· Recreation path parallel to the rapid bus line, with pocket parks throughout;

· Opportunity to enhance main street by land exchange with school board regarding land exchange involving parcel on west side of Pierre Elliot Trudeau School.

Longfields Drive

There is currently a significant difference in the road cross-sections and landscaping for the eastern and western segments of Longfields:

Eastern Segment: Absence of landscaped medians and lay-by parking;
Western Segment: Boasts landscaped medians and lay-by parking;
Enhanced Concept Plan shows the Eastern Segment of Longfields Drive re-designed to achieve a more neighbourhood-like design, consistent with the Western Segment.

ENHANCED CONCEPT PLAN

6. Consultation with Home Builders

Three workshops were held with the representatives of the Small Builders Council of the Ottawa-Carleton Home Builders Association (OCHBA) and two further workshops were held with representatives of the overall OCHBA.

The products based on lanes and rear yard garages as shown in Neighbourhood #1 are not products that most of the larger builders believe are attractive in the marketplace and would be looking to develop;
Small builders would likely be looking for a lot discount to in order to be willing to undertake the type of products being proposed for Neighbourhood #1;
City should have a Plan “B” in place for a more standard type of development if the lands and rear yard garage products in Neighbourhood #1 does not prove to be marketable and could consider making this neigbourhood more in line with that proposed Neighbourhood #2;
The City should ensure that the financial proforma for the subdivision takes into account any over dedication of parkland and the retention of the low quality woodlot that would not be required of a private developer;
Many local builders are already involved in moving towards the Energy Star program that the City is proposing as a minimum standard for the subdivision;
Neighbourhood #4 of the development is moving in the right direction in terms of higher density development around, and integration of, the transit station but the proposed low to mid-rise apartment buildings are not likely to prove economical to develop (e.g. absorb cost of elevators, underground parking etc.).

DOCUMENT 2

CENTREPOINTE TOWN CENTRE PROJECT

INFORMATION REPORT

PLEASE NOTE:

Consideration of this item was deferred to the 16 October 2007 meeting of the Corporate Services and Economic Development Committee.

DOCUMENT 3

PROPOSED COMMUNITY LANDS DEVELOPMENT CORPORATION

CORPORATE PURPOSES

The Community Lands Development Corporation is to be incorporated for the following purposes:

· Plan, subdivide, and develop/redevelop City owned properties within the project areas for the Longfields Subdivision and Centrepointe Town Centre projects identified in the Council approved Corporate Plan for residential, commercial, industrial, public, recreational, institutional, religious, charitable or other use;

· Acquire and hold land within the project areas for the Longfields Subdivision and Centrepointe Town Centre projects;

· Clear, grade, service, or otherwise prepare the development corporation’s sites;

· Improve, beautify and maintain City-owned land, buildings and structures, within the project areas for the Longfields Subdivision and Centrepointe Town Centre projects beyond the standard provided at the expense of the City generally and promote community improvement for these project areas;

· Sell, lease or otherwise dispose or encumber all or part of the development corporation’s sites;

· Enter into Municipal Capital Facility Agreements;

· Enter into agreements for planning and implementing the Longfields Subdivision and Centrepointe Town Centre projects; and

· Construct, operate, maintain and own, including ownership of the land related thereto, one or more of the following facilities:

(i) Recreation, tourism and cultural facilities,

(ii) General parking facilities, and

(iii) Public transportation systems.