9. DISPOSAL STRATEGY – 25 Esquimault avenue –

Qualicum–Graham park community centre

STRATÉGIE D’ÉLIMINATION – 25, AVENUE Esquimault – Qualicum – CENTRE COMMUNAUTAIRE DU PARC Graham

COMMITTEE RECOMMENDATIONS

That Council:

1. Direct staff to initiate a Request for Proposals (RFP) in Q1 2010 for the redevelopment of the property known municipally as 25 Esquimault Avenue, containing an area of approximately 1.41 ha (3.48 a), described as part of Lot 70, Lot 71, Block A, Plan 479669, former City of Nepean, now in the City of Ottawa, being PIN 046960138, shown as Parcel “A” on Document 1;

2. Direct staff to include, as outlined in this report, provisions in the RFP for the redevelopment of the property to be:

(a) Respectful of the development concept shown on Document 3 attached, and;

(b) Subject to a development agreement that will include conditions for the proponent to be responsible for the construction of a new community centre, the demolition of the existing building, the remediation of the environmental contamination on the property, and the redevelopment of the site in accordance with the concept plan to be submitted by the proponent; and

3. Direct staff to report back to City Council in Q2 2010 with recommendations regarding:

(a) Approval of a preferred proposal;

(b) Identification of the portion of the site not required for Park purposes and which is surplus to City needs;

(c) Approval of an Agreement of Purchase and Sale and associated Development Agreement.

RECOMMANDATIONS DU COMITÉ

Que le Conseil :

1. demande au personnel de présenter une demande de propositions (DP) au T1 de 2010 pour le réaménagement de la propriété sise au 25, avenue Esquimault, ayant une superficie d’environ 1,41 ha (3,48 a), segment des lots 70 et 71 et du Bloc A, au Plan 479669, ancienne Ville de Nepean, maintenant dans la Ville d’Ottawa, segment de PIN 046960138 et affichée en Parcelle « A » au Document 1;

2. demande au personnel d’inclure, tel qu’il est énoncé dans le présent rapport, les dispositions dans la DP afin que le réaménagement de la propriété soit :

a) respectueux du concept d’aménagement illustré au Document 3 ci‑joint;

b) assujetti à une entente d’aménagement qui comprendra les conditions qui devront être respectées afin que le promoteur soit responsable de la construction d’un nouveau centre communautaire, de la démolition du bâtiment existant, de l’élimination de la contamination de l’environnement sur la propriété et du réaménagement de l’emplacement conformément au plan du concept qui doit être fourni par le promoteur;

3. demande au personnel de faire rapport au Conseil municipal au T2 de 2010 et de faire des recommandations concernant :

a) l’approbation d’une proposition privilégiée;

b) la détermination de la portion de l’emplacement qui n’est pas nécessaire aux fins de l’aménagement du parc et qui est excédentaire aux besoins de la Ville;

c) l’approbation d’une convention d’achat et de vente et de l’entente d’aménagement connexe.

Documentation

1. City Managers report dated 17 November 2009 (ACS2009-CMR-REP-0054)

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

17 November 2009/ le 17 novembre 2009

Submitted by/Soumis par: Kent Kirkpatrick, City Manager / directeur municipal

Contact Person/Personne ressource : Gordon MacNair, Director, Real Estate Partnerships and Development Office / directeur, Bureau de développement et de partenariats immobiliers

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

College (8)

Ref N°: ACS2009-CMR-REP-0054

SUBJECT:

DISPOSAL STRATEGY – 25 Esquimault avenue –

Qualicum–Graham park community centre

OBJET :

STRATÉGIE D’ÉLIMINATION – 25, AVENUE Esquimault – Qualicum – CENTRE COMMUNAUTAIRE DU PARC Graham

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee recommend that Council:

2. Direct staff to include, as outlined in this report, provisions in the RFP for the redevelopment of the property to be:

a) Respectful of the development concept shown on Document 3 attached, and;

b) Subject to a development agreement that will include conditions for the proponent to be responsible for the construction of a new community centre, the demolition of the existing building, the remediation of the environmental contamination on the property, and the redevelopment of the site in accordance with the concept plan to be submitted by the proponent; and

3. Direct staff to report back to City Council in Q2 2010 with recommendations regarding:

a) Approval of a preferred proposal;

b) Identification of the portion of the site not required for Park purposes and which is surplus to City needs;

c) Approval of an Agreement of Purchase and Sale and associated Development Agreement.

RECOMMANDATIONS DU RAPPORT

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

1. de demander au personnel de présenter une demande de propositions (DP) au T1 de 2010 pour le réaménagement de la propriété sise au 25, avenue Esquimault, ayant une superficie d’environ 1,41 ha (3,48 a), segment des lots 70 et 71 et du Bloc A, au Plan 479669, ancienne Ville de Nepean, maintenant dans la Ville d’Ottawa, segment de PIN 046960138 et affichée en Parcelle « A » au Document 1;

2. de demander au personnel d’inclure, tel qu’il est énoncé dans le présent rapport, les dispositions dans la DP afin que le réaménagement de la propriété soit :

a) respectueux du concept d’aménagement illustré au Document 3 ci‑joint;

3. de demander au personnel de faire rapport au Conseil municipal au T2 de 2010 et de faire des recommandations concernant :

a) l’approbation d’une proposition privilégiée;

b) la détermination de la portion de l’emplacement qui n’est pas nécessaire aux fins de l’aménagement du parc et qui est excédentaire aux besoins de la Ville;

c) l’approbation d’une convention d’achat et de vente et de l’entente d’aménagement connexe.

BACKGROUND

The subject property is a 1.41hectare (3.48 a) parcel of land improved with a one storey, 2,879.9 m² (31,000ft².) school building that is vacant with the exception of a 56.86 m²(2,008 ft²) addition at the north end of the building currently being used as the Qualicum-Graham Park area Community Centre.

The property is situated on the north side of Esquimault Avenue just west of Beaumaris Drive and is municipally known as 25 Esquimault Avenue shown as Parcel “A” on Document 1 and is located immediately south of Nanaimo Park municipally known as 48 Nanaimo Drive shown as Parcel “B” on Document 1 attached.

The City purchased the subject property at 25 Esquimault Avenue, also known as the former École Maimonides, on 26 June 2008 for $2,500,000 from 770 Holdings Limited as per a City Council directive approved 23 April 2008 (Report Number ACS 2008-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.

The former City of Nepean had leased community space in this school from the Carleton School Board since 1982. In 1988, the school was sold to École Maimonides and the City of Nepean continued to lease the space and in 1995, entered into an agreement to build an addition for community use subject to a 20-year leaseback of the space.

The oil leak was discovered at the time of construction; this resulted in the issuance of an Order to Comply by the Environmental Appeal Board. Council approved the acquisition of the property to facilitate resolution of the environmental issues, avoid potential litigation and ensure a portion of the land was retained for a new community centre with the balance being planned for redevelopment and sale to a developer to defray the acquisition costs.

On 23 April 2008 Council approved the following:

1. The acquisition of 25 Esquimault Avenue, described as part of Lot 70, all of Lot 71 and Block A, Plan 479669, former City of Nepean, now City of Ottawa (PIN #046960138) shown as Parcel “A” on Document 1, for the amount of $2,500,000 plus GST from 770 Holdings Ltd. pursuant to an Agreement of Purchase and Sale that has been received;

2. The demolition of the existing structure and remediation of the site and an interim solution for the replacement of the Community Centre estimated at a cost of $1,305,000; and

3. Staff to prepare a redevelopment proposal for the lands, which is to include a Community Centre and residential development, as outlined in this report, and report back to Council in 2008 – 09.

Table 1 below summarizes the cost basis on which Council, in April 2008, approved the acquisition and development of the 25 Esquimault property.

Table 1	Acquisition & Redevelopment
Acquisition Cost (3.5 a)	$ 2,500,000
Demolition Cost (Bldg is 30,900 esq.)	$ 650,000
Remediation Costs	$ 600,000
Temporary relocation of community centre	$ 55,000
*Construction of New Community Centre (3,000 esq.)	$ 1,000,000
Restore property tax base	($ 575,000)
**Potential Resale Value (3.0 a)	($ 2,000,000)
Outstanding payment of rent	$ 126,000
TOTAL	$ 2,356,000

The acquisition of the property was approved subject to staff reporting back to Council with a redevelopment proposal for the lands at 25 Esquimault Avenue.

DISCUSSION

Following acquisition of the site, a Qualicum-Graham Park Community Building Working Committee was established to determine the basic criteria for a new community centre, undertake a blocking exercise and produce a concept plan for the building. The Committee consisted of a representative of each of the following groups; community association, parent of program attendee, long time resident, outdoor rink program and instructor/facilitator of existing programs.

The Committee held meetings on 16 September 2008, 8 October 2008, 15 October 2008, 7 January 2008 and established the Terms of References, Roles and Responsibilities for the new community centre, prepared and finalized room data sheets and selected the building-blocking plan, attached to this report as Document 2. The new facility will accommodate the following programs: after school, morning play group, Pilates, Yoga, Karate, dance, Bridge Club, Beavers, rink, summer programs, special events and room rentals.

The Committee also studied various locations for the new building and determined that the preferred location would be close to the southerly boundary of the park with vehicular access from Esquimault Avenue through the new development lands.

It was also determined that it may be appropriate to extend the southerly boundary of the park by approximately 0.1ha (.25 a) to add additional land to the park area to compensate for the loss of unstructured play area as a result of the construction of the new community building and parking area on the Qualicum Nanaimo Park property. Further refinement of how this is achieved can be dealt with through the RFP process.

On 21 May 2009 staff met with the working committee members and a few adjacent residents. At the meeting, there was a brief review of the proposed community centre criteria, considerations for ensuring the redevelopment of 25 Esquimault Avenue is compatible with the adjacent park and community centre and surrounding neighbourhood. Staff presented examples of potential compatible infill developments; i.e. adult bungalows and semi-detached units. The contents of the Request for Proposal, to be drafted by staff, were also discussed and will include requirements to:

1. Construct a new community centre on the Qualicum Nanaimo Park site for completion in 2011 in accordance with the preferred blocking plan attached as Document 2 and design criteria to be established by Parks, Recreation and Culture staff and the community centre working committee.

2. Demolish the existing building at 25 Esquimault Avenue after relocation of the community centre to the new facility has been completed.

3. Undertake environmental remediation measures on the 25 Esquimault Avenue site and obtain a Record of Site Condition from the Ministry of the Environment.

4. Submit a concept plan and building elevation sketches demonstrating proposed use, location and massing of buildings and site access. The proposal must reflect redevelopment criteria established with the community.

5. Develop the site in conformity with the concept plan submitted with the proposal.

6. Comply with established timelines for the above-noted tasks, including required planning approvals.

On 22 October 2009, at the annual public meeting of the Qualicum-Graham Park Community Association, staff presented site redevelopment options incorporating the comments and suggestions compiled from the 21 May 2009 meeting. The redevelopment plan, attached as Document 3, shows conceptually, the potential layout of the various elements that will be incorporated in the future site and abutting park. The residents attending the AGM were extremely supportive of a redevelopment plan that is based on adult bungalows.

The intent is to retain the existing configuration of the school site less the 0.1ha. (.24 a) that will become part of the abutting park to compensate for the loss of some unstructured play area due to the relocation of the community centre to the park site. Staff is of the opinion that 1.31 ha. (3.25 a) represents an appropriate lot size for future development of the site under the current Institutional - I zoning or a potential rezoning to an appropriate residential category that reflects the development criteria established through community consultation.

There was widespread support for the conceptual plan at the community association Annual General Meeting, with the exception of two objections. One new resident to the neighbourhood was unaware of the future redevelopment plans for the school site and another was concerned with parking overflow from the new community centre onto local streets. With respect to the process for community participation staff has been working with the Qualicum-Graham Park Community Building Working Committee for over a year. Regarding overflow parking, which appears to be an issue only during major events, staff is of the opinion that this will not be an issue, as the opportunity for shared parking with the future development site will be explored. In addition, in accordance with the Official Plan Smart Growth principles, residents will be encouraged to walk to activities when possible.

Upon approval of the recommendations of this report by Council, staff will:

1. Have a draft legal reference plan (R-Plan) prepared to reflect the proposed development parcels of the concept plan as described in this report;

2. Prepare and submit an application for a zoning amendment based on the parcels shown on the draft R-Plan and the provisions of the concept plan as described in this report;

3. Prepare and issue a RFP package in Q1 2010, including conditions that will require proponents to agree to support the zoning amendment for the property and to enter into a related Development Agreement to ensure compliance in that regard and with the other development provisions for Parcel “A” as described previously in this report; and

4. Report back to CSEDC and Council in Q2 2010 with recommendations for the sale of the property and the associated development agreement to a preferred proponent.

ENVIRONMENTAL IMPLICATIONS

The property will be remediated as part of the redevelopment process for this site.

CONSULTATION

Extensive consultation with the community was undertaken, including a presentation at the Aquarium-Graham Park Community Association Annual General Meeting held on 22 October 2009, as described in this report.

Parks, Recreation and Culture facilitated the working committee meetings that were held to develop the criteria for the new community building.

The Ward Councillor is aware of the intent to dispose of the subject property as per previous Council direction; and is supportive of the development concept and RFP approach; and is in agreement that no further community consultation is required at this time.

HOUSING FIRST POLICY

The Official Plan policy directs that the City make land available for affordable housing and give priority for the sale or lease of surplus City-owned property for this purpose.

The Housing First Policy, approved by Council on 13 July 2005, establishes priority consideration to the Affordable Housing Division in the identification of potentially surplus City-owned property, to be used in achieving the City’s affordable housing program targets. The policy also requires that the Official Plan target of 25% affordable housing, be met on any City-owned property sold for residential development. Where viable, residential properties are disposed of without a condition requiring an affordable housing component, 25% of the proceeds from the sale are to be credited to a housing fund, to be used for the development of affordable housing elsewhere in the City.

The subject property is a viable property and therefore meets the affordable housing criteria outlined in the Housing First Policy.

LEGAL/RISK MANAGEMENT IMPLICATIONS:

There are no legal/risk management impediments to implementing any of the Recommendations arising from this report.

FINANCIAL IMPLICATIONS

The Council approval of 23 April 2008 indicated a target of $2M in revenue from the sale of this property for redevelopment. This was a key consideration in the community consultations and it is anticipated that the resulting development criteria will allow this target to be met. The actual revenue will be determined from the RFP process.

The recommendations set out in this report do not require any further funding provision at this time.

Staff will report back in Q2 2010 on a recommend sale of Parcel “A”, shown on Document 1, to a preferred proponent and on the net proceeds to be realized from that sale together with an accounting of the actual overall cost for this project relative to the amounts set out by Council in April 2008 as outlined in Table 1 of this report.

SUPPORTING DOCUMENTATION

Document 1 - Sketch showing the subject properties.

Document 2 - Preferred blocking plan for the proposed community centre

Document 3 - Draft overall redevelopment plan

DISPOSITION

The Real Estate Partnerships and Development Office will prepare a Request for Proposal based on the conditions outlined in this report; and report back in Q2 2010 with recommendations regarding: approval of a preferred proposal, identification of the portion of the site not required for Park purposes and which is surplus to City needs; and approval of an Agreement of Purchase and Sale and associated Development Agreement.

DOCUMENT 1

DOCUMENT 2

DOCUMENT 3