5. SALE OF LAND - 3321 JOCKVALE ROAD AND PARTS OF JOCKVALE ROAD

VENTE DE TERRAIN – 3321 CHEMIN JOCKVALE ET PARTIE DU CHEMIN JOCKVALE

COMMITTEE RECOMMENDATIONS

That Council:

1. Declare the property known municipally as 3321 Jockvale Road and parts of Jockvale Road containing a total area of approximately 11,524.8 ^m2 (2.85 acres) subject to final survey, described as part of Lot 15, Concession 3, R.F., being part of Parts 1 and 2, Plan 4R-1815 and part of the Jockvale Road described as Parts 4, 5 and 6, Plan 5R-13848, geographic Township of Nepean, now in the City of Ottawa, shown hatched on Document 1 attached, subject to a right-of-way as described in Instrument No. N571268 and easements to be granted in favour of Hydro Ottawa and Bell Canada over the portions of Jockvale Road and any other easements that may be required, as surplus to the City’s needs;

2. Waive City policy pertaining to the public marketing of viable properties;

3. Approve the sale of the land referred to in Recommendation 1 to Richcraft Homes Line) Ltd., for the sum of One Million, Three Hundred Thousand ($1,300,000) Dollars plus GST or HST as applicable, as outlined in this report and pursuant to an Agreement of Purchase and Sale that has been received;

4. Approve the establishment of a capital account for Greenspace Acquisition and Development within the South Nepean Town Center Community Design Plan with spending authority of $1,300,000;

5. Approve that proceeds of the sale of the property described in Recommendation 1, be directed to the new capital account for the purchase of land within the area identified as District Park in the South Nepean Town Centre, as per the policies of Section 8.4 (Greenspace Acquisition and Development) of the South Nepean Town Centre Community Design Plan; and

6. Waive the City’s Housing First Policy with respect to the dedication of 25% of the net proceeds from the sale of these lands to the Housing Branch and direct the funds to be used in accordance with Recommendations 4 and 5 above.

RecommandationS du ComitÉ

Que le Conseil :

1. déclare la propriété dont la désignation municipale est le 3321, chemin Jockvale et des parties du chemin Jockvale comprenant une surface d’environ 11 524,8 m² (2,85 acres), sous réserve de l’arpentage final, décrites comme une partie du lot 15, concession 3 RF, correspondant aux parties 1 et 2 du plan 4R-1815 et aux parties 4, 5 et 6 du plan 5R-13848, dans le canton géographique de Nepean, qui se trouve maintenant dans la Ville d’Ottawa, indiqué en hachurés dans le document 1 ci-joint, comme étant assujettie à une emprise, indiqué dans l’instrument n° N571268, et à des servitudes qui seront instituées en faveur d’Hydro Ottawa et de Bell Canada sur les parties du chemin Jockvale, et à toute autre servitude qui pourrait être requise, et comme étant excédentaire aux besoins de la Ville;

2. renonce à l’application de la politique de la Ville prévoyant la commercialisation des parcelles viables;

3. approuve la vente du terrain mentionné dans la recommandation 1 à Richcraft Homes Line Ltd., pour la somme de un million trois cent mille dollars (1 300 000 $), TPS ou TVH en sus s’il y a lieu, conformément au présent rapport et à la convention d’achat et de vente qui a été reçue;

4. approuve la création d’un compte d’immobilisation pour l’acquisition et l’aménagement d’espaces verts dans le cadre du plan de conception communautaire du centre-ville de Nepean-Sud, avec une autorisation de dépenses d’un million trois cent mille dollars (1 300 000 $);

5. approuve que le produit de la vente de la propriété décrite dans la recommandation I soit versé à ce nouveau compte d’immobilisation pour l’achat de terrains dans le secteur identifié comme le parc de secteur du centre-ville de Nepean-Sud, conformément aux politiques de la section 7.4 (acquisition et aménagement d’espaces verts) du plan de conception communautaire du centre-ville de Nepean-Sud;

6. déroge à la politique municipale du logement d’abord en ce qui concerne l’affectation de 25 % du produit net de la vente de ces terrains à la Direction du logement afin que ces fonds soient utilisés conformément aux recommandations 4 et 5 précédentes.

DOCUMENTATION

1. City Manager’s report dated 1 June 2010 (ACS2010-CMR-REP-0032).

2. Extract of Draft Minute, 1 June 2010.

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

1 June 2010 / le 1 juin 2010

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

Contact Person/Personne ressource : Gordon Macnair, Director

Real Estate Partnerships and Development Office/Bureau des partenaires immobiliers

et du développement

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

Barrhaven (3)

Ref N°: ACS2010-CMR-REP-0032

SUBJECT:	SALE OF LAND - 3321 JOCKVALE ROAD AND PARTS OF JOCKVALE ROAD

OBJET :	vente de terrain – 3321 Chemin Jockvale et partie du chemin jockvale

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee recommend Council:

Declare the property known municipally as 3321 Jockvale Road and parts of Jockvale Road containing a total area of approximately 11,524.8 ^m2 (2.85 acres) subject to final survey, described as part of Lot 15, Concession 3, R.F., being part of Parts 1 and 2, Plan 4R-1815 and part of the Jockvale Road described as Parts 4, 5 and 6, Plan 5R-13848, geographic Township of Nepean, now in the City of Ottawa, shown hatched on Document 1 attached, subject to a right-of-way as described in Instrument No. N571268 and easements to be granted in favour of Hydro Ottawa and Bell Canada over the portions of Jockvale Road and any other easements that may be required, as surplus to the City’s needs;

2. Waive City policy pertaining to the public marketing of viable properties;

4. Approve the establishment of a capital account for Greenspace Acquisition and Development within the South Nepean Town Center Community Design Plan with spending authority of $1,300,000;

RECOMMANDATIONS DU RAPPORT

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

déclare la propriété dont la désignation municipale est le 3321, chemin Jockvale et des parties du chemin Jockvale comprenant une surface d’environ 11 524,8 m² (2,85 acres), sous réserve de l’arpentage final, décrites comme une partie du lot 15, concession 3 RF, correspondant aux parties 1 et 2 du plan 4R-1815 et aux parties 4, 5 et 6 du plan 5R-13848, dans le canton géographique de Nepean, qui se trouve maintenant dans la Ville d’Ottawa, indiqué en hachurés dans le document 1 ci-joint, comme étant assujettie à une emprise, indiqué dans l’instrument n° N571268, et à des servitudes qui seront instituées en faveur d’Hydro Ottawa et de Bell Canada sur les parties du chemin Jockvale, et à toute autre servitude qui pourrait être requise, et comme étant excédentaire aux besoins de la Ville;

renonce à l’application de la politique de la Ville prévoyant la commercialisation des parcelles viables;

BACKGROUND

The subject of this report relates to the sale of a vacant parcel of City owned land located in the South Nepean Town Centre which links with two additional real estate initiatives including the:

i) Acquisition of land required for the Terry Fox Drive (North) Extension project;

ii) Allocation of the proceeds of sale toward the acquisition of Major Open Space land designated District Park in the South Nepean Town Centre Community Design Plan.

At the request of the Infrastructure Services Branch negotiations were undertaken to acquire the fee simple interest in 14.34 acres of land required for the Terry Fox Drive right-of-way, which included land owned by Richcraft Homes Ltd. At the outset of discussions, the property owner identified interest in acquiring a City owned parcel of vacant land that is situated adjacent to one of its land holdings located in the South Nepean Town Centre. In order to bring about negotiations relating to the property requirements for the Terry Fox Drive project it was requested that parties conduct a land exchange.

In review of this request consideration was given to benefits available to the City with respect to advancing negotiations for the property requirements of the Terry Fox Drive project and achieving critical time-lines required by this Infrastructure Stimulus Funded Project. In addition, it provides a strategic opportunity through the assembly of the Richcraft lands with the City parcel to advance development of lands situated within the South Nepean Town Centre, which would result in achieving key goals and objectives of the Council approved Community Design Plan.

Agreement to proceed with negotiations was based on the principle of a land exchange that would result in a Property Acquisition Agreement for the land requirements related to the Terry Fox Drive project, and an Agreement of Purchase and Sale for the sale of the City owned parcel of land located in the South Nepean Town Centre. Accordingly, the approval for the property acquisition for Terry Fox Drive was approved by Delegated Authority DEL2010-RES-0121, whereas the approval for the Jockvale Road property sale is subject of the present report.

DISCUSSION

Recommendation 1 – Sale of Jockvale Road Lands

The subject lands shown hatched on the attached Document 1 are legally described as being part of Lot 15, Concession 3, R.F., geographic Township of Nepean and part of Jockvale Road. The site contains a total area of approximately 11,524.8 square metres (2.85 acres). The lands are comprised of a residual parcel of land acquired by the former Township of Nepean in 1976 for road purposes, as well as a portion of the road allowance for Jockvale Road described as Parts 4 and 6 on Plan 5R-13848. The road allowance was the subject of a recent Road Closure application which is subject to approval by Planning and Infrastructure Approvals Branch pursuant to the Delegation of Authority By-law 2001-12.

The lands abutting the City owned parcel to the northeast and to the west are owned by Richcraft Homes Ltd. The parcel situated to the east is approximately 1.14 acres in size with frontage along the west side of Greenbank Road. The parcel, which is the subject of this report, is situated to the west is approximately 22.4 acres in size and has frontage along the road allowance of Jockvale Road.

The parcels of land comprising both the road allowance for Jockvale Road and the surplus lands are located in the South Nepean ‘Town Centre’ designated area. The lands are more specifically designated as ‘Mixed Use Centre’ in the Official Plan. Mixed Use Centre policies promote the development of transit-supportive land-uses, high and medium density residential development and retail, office, community, recreational and services among others. Employment targets for lands located in the mixed use designation in the ‘Town Centre’ are at least 10,000 jobs.

The lands are also subject to the Secondary Plan for South Nepean Area 7. This plan designates the land as Civic Mixed Use, and its emphasis is on the creation of a main street along Greenbank Road with pedestrian activity at the street level. The objective is to achieve ground floor retail with residential, office and/or institutional uses on upper floors. The South Nepean Town Centre Community Design Plan, which is a demonstration plan of the above noted policies, designates the lands as High-Rise Mixed Use. The intent of this designation is the creation of a shopping district characterized by commercial and residential uses in the same building with building heights from 6 to 12 storeys and a net density target of 250 residential units per hectare.

The lands are zoned as DR-Development Reserve, in By-law 2008-250. This zone applies to urban and suburban future growth areas, and is intended to control the orderly development of land within the framework of existing Official Plan policies usually through plans of subdivision.

Negotiations related to the sale of this property were supported by three (3) independent appraisals; one completed on behalf of the City and two for the prospective purchaser in order to provide an estimate of market value for the subject land in its highest and best use. The respective appraisals concluded that in consideration of the property’s location within the South Nepean Town Centre and infrastructure servicing strategies through adjoining lands anticipated to occur within 3-5 years, the highest and best use of the property was holding for future development in accordance with the South Nepean Town Centre Community Design Plan (CDP) with a mix of medium and high density residential uses and commercial uses at grade. In final reconciliation of the three (3) appraisals, negotiations resulted in an agreement at the consideration of $1,300,000 for the fee simple interest in the land. In addition the ensuing Agreement of Purchase and Sale includes provision to ensure the future development of the subject property in accordance with the South Nepean Town Centre CDP, as well as to secure the future widening requirements of Greenbank Road that are identified in the CDP, at no cost to the City.

Recommendations 2 and 3 – Sale to Richcraft Homes Ltd.

In support of the recommendations, this transaction benefits the City with respect to the advancement of negotiations for the property requirements of the Terry Fox Drive project and achieving critical time-lines required by this Infrastructure Stimulus Funded project. In addition this provides a strategic opportunity through the assembly of the Richcraft Homes Ltd. holdings with the City parcel to advance the development of lands situated within the South Nepean Town Centre which would result in achieving key goals and objectives of the Council approved Community Design Plan.

Recommendations 4 and 5 – Establish Capital Account and Direction of the Proceeds of Sale

The City is the owner of a number of parcels of land in the South Nepean Town Centre as documented in ‘Appendix B’ of the Community Design Plan. In accordance with Recommendation 5, staff is proposing that the proceeds from the sale of the subject lands be directed to the acquisition of lands designated as District Park in the South Nepean Town Centre Community Design Plan. This park, named “Half Moon Bay Park” will extend the entire width of the Town Centre along the Jock River and is intended to be a focal point of the greenspace system in the area, connecting with existing and future greenspace components in surrounding communities. In order to achieve this objective, the Community Design Plan, specifically Policy 8.4: Greenspace Acquisition and Development provides the authority for funds from the sale of surplus City land in the Town Centre to be directed to the acquisition of the greenspace lands. Specifically, Policy 8.4 states that the City will acquire lands for this system through a combination of measures, including land exchanges and land purchases among others.

Furthermore, the lands within the greenway system are designated as Major Open Space in the Official Plan and subject to the policies of Section 5.2.1.5 of the plan. This policy directs that the City will acquire open space lands that are in private ownership at the request of the landowner. The City has been approached by a landowner in the Town Centre who is anxious to dispose of property that is designated Major Open Space, and a portion of which is part of Urban Natural Area Site #49 (UNA #49). The UNA portion of the property was evaluated in August 2005 as part of the Urban Natural Areas Environmental Evaluation Study (UNAEES), and was determined to have a moderate ecological significance.

As per Recommendation 5 which seeks approval of the establishment of a capital account for Greenspace Acquisition and Development within the South Nepean Town Centre Community Design Plan, staff is recommending that the funds from the subject sale be directed toward the purchase of these Major Open Space lands also designated District Park in the South Nepean Town Centre Community Design Plan.

ENVIRONMENTAL IMPLICATIONS

The funds from the sale of the subject lands, if approved as per Recommendation 5 above, will facilitate achievement of the Major Open Space objectives of the Official Plan and the South Nepean Town Centre Community Design Plan, including the protection of a Natural Environment Area along the Jock River. The net benefit for the City will be protection of a natural environment area (UNA #49) thereby protecting and enhancing the City’s natural environment and Natural Heritage System.

RURAL IMPLICATIONS

There are no rural implications resulting from the sale of the subject property.

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 Affordable Housing Division, Planning and Growth Management and City Operations to determine if these lands should be retained for a City mandated program. The Affordable Housing Division comments are included in the Housing Section of this report. The Infrastructure Services and Community Sustainability Portfolio of the Planning and Growth Management Department was consulted with respect to the Urban Natural Area Environmental Evaluation Study and Greenspace Master Plan. Their comments are indicated under the Environmental Implications section of this report.

The utility companies were also circulated. Bell Canada has confirmed that easements are required to protect their existing plant.

The following Advisory Committees have been circulated:

Local Architectural Conservation Advisory Committee (LACAC)

Ottawa Forests and Greenspace Advisory Committee (OFGAC)

Environmental Advisory Committee (EAC)

Parks and Recreation Advisory Committee (PRAC)

Roads and Cycling Advisory Committee (RCAC)

Rural Issues Advisory Committee (RIAC)

Pedestrian and Transit Advisory Committee (PTAC)

No other concerns were expressed with respect to the sale of this property.

COMMENTS BY THE WARD COUNCILLOR(S)

The subject property is located in Ward 3. Councillor Harder is supportive of the proposal to declare these lands surplus.

HOUSING FIRST POLICY

The Housing First Policy, approved by Council on 13 July 2005, establishes priority consideration to the Housing Branch 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 lands proposed for sale are within the urban boundary and are designated for Hi-Rise Mixed Use development of which housing is a major component. In fact, the Community Design Plan establishes a target of 250 units per hectare for lands designated as Hi-Rise Mixed Use. It can be reasonably expected that a percentage of the units that will be built as part of the Hi-Rise Mixed Use development on these lands, will fall into the affordable criteria as established under the Housing policy.

Recommendation 6 – Waive Housing First Policy

Notwithstanding the above, as per Recommendation 6, staff is seeking an exemption from the Housing First Policy that stipulates 25% the funds from the sale of these parcels be directed to the Housing Branch. For the purpose of this land exchange the sale price of these lands is $1,300,000 and therefore 25% of the sale price is $325,000.

The disposal of this City land is to the benefit of the Policy Development and Urban Design Branch, but ultimately the net benefit is to the City and fulfillment of the Official Plan policies with respect to the natural environment. The proceeds of this disposal of a City asset (i.e. land) is used on their behalf for the acquisition of Major Open Space. Section 8.4 of the Community Design Plan provides the authority for directing funds from the sale of surplus City property in the Town Centre towards acquisition of open space lands that contribute to the overall greenspace along the Jock River.

Comments from the Housing Branch with respect to Recommendation 6 are: “Funds collected from the Housing First Policy on the sale of City surplus lands help sustain the Affordable Housing Capital Building Fund, which is used to provide capital grants and fee relief to support and develop affordable supportive and rental housing under Action Ottawa and the Canada Ontario Affordable Housing Program (AHP). Waiving the Housing First Policy may adversely affect Housing Services ability to support the development of future affordable housing.”

Should Council choose not to support Recommendation 6, granting an exemption to the Housing First Policy with respect to this sale, will increase the budget pressure already faced in securing funding sources to carry out the objectives of the Greenspace Acquisition and Development policy in the South Nepean Town Centre Community Design Plan.

LEGAL/RISK MANAGEMENT IMPLICATIONS

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

CITY STRATEGIC PLAN

The sale of the subject properties will facilitate future development in accordance with the Council approved South Nepean Town Centre Secondary Plan.

TECHNICAL IMPLICATIONS

N/A

FINANCIAL IMPLICATIONS

There are no financial implications associated with the approval of this report.

SUPPORTING DOCUMENTATION

Attached as Document 1 is a sketch showing the subject property.

DISPOSITION

Following Council’s approval, the Real Estate Partnerships and Development Office and Legal Services Branch will finalize the transactions.

Document ‘1’