4.         Property ACQUISITION - March Road REconstruction,  Imperial Oil limited

 

acquisition de propriété – remise en état du chemin march, imperial oil limited

 

 

Committee Recommendation

 

That Council approve the acquisition of real property consisting of 1.4 ha (3.45 acres), required for the reconstruction of March Road, from Imperial Oil Limited, described as being Part of Lot 10, Concession 4, geographic Township of March, in the City of Ottawa known municipally as 788 March Road as shown on Document 1, for the total consideration of $1,400,000 plus HST as applicable.

 

 

Recommandation DU Comité

 

Que le Conseil approuve l’acquisition du bien-fonds nécessaire à la remise en état du chemin March, consistant en 1,4 ha (3,45 acres) et décrit comme faisant partie du lot 10, concession 4, canton géographique de March, dont l’adresse de voirie dans la Ville d’Ottawa est le 788, chemin March, comme il est indiqué dans le Document 1, de Imperial Oil Limited pour la somme totale de 1 400 000 $ plus TVH le cas échéant.

 

 

Documentation

 

1.         City Manager’s report dated 20 July 2010 (ACS2010- CMR-REP-0040).

 

Report to/Rapport au :

 

Transportation Committee

Comité des transports

 

and Council / et au Conseil

 

20 July 2010 / le 20 juillet 2010

 

Submitted by/Soumis par : Kent Kirkpatrick, City Manager/Directeur des services municipaux

 

Contact Person/Personne ressource : Gordon MacNair, Director

Real Estate Partnerships and Development Office/ Directeur, Partenariats et Développement en immobilier

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

 

Kanata North (4)

Ref N°: ACS2010-CMR-REP-0040

 

 

SUBJECT:

Property ACQUISITION -  March Road REconstruction,  Imperial Oil limited

 

 

OBJET :

acquisition de propriété – remise en état du chemin march, imperial oil limited

 

 

REPORT RECOMMENDATION

 

That the Transportation Committee recommend Council approve the acquisition of real property consisting of 1.4 ha (3.45 acres), required for the reconstruction of March Road, from Imperial Oil Limited, described as being Part of Lot 10, Concession 4, geographic Township of March, in the City of Ottawa known municipally as 788 March Road as shown on Document 1, for the total consideration of $1,400,000 plus HST as applicable.

 

RECOMMANDATION DU RAPPORT

 

Que le Comité des transports recommande au Conseil d’approuver l’acquisition du bien-fonds nécessaire à la remise en état du chemin March, consistant en 1,4 ha (3,45 acres) et décrit comme faisant partie du lot 10, concession 4, canton géographique de March, dont l’adresse de voirie dans la Ville d’Ottawa est le 788, chemin March, comme il est indiqué dans le Document 1, de Imperial Oil Limited pour la somme totale de 1 400 000 $ plus TVH le cas échéant.

 

BACKGROUND

 

In the 2009 Capital Budget, City Council approved funding for the widening of March Road from Shirleys Brook Drive to Old Carp Road.  As part of the requirements for the March Road project it is necessary to acquire a parcel of vacant land owned by Imperial Oil Limited.

 

DISCUSSION

 

The subject property contains 1.4 ha (3.45 acres) of vacant land located at 760 March Road in the City of Ottawa bordered by March Road, Klondike Road and Shirleys Brook.  The property is designated as a General Urban Area in the City of Ottawa Official Plan and zoned Local Commercial in the 2008 zoning bylaw.  About one third of the property is subject to development constraint due to the close proximity of Shirleys Brook running at the property’s eastern boundary.  A review of the Historical Land Use Inventory showed no previous use of the property that would warrant environmental concern.

 

In order to widen March Road to a four-lane urbanized arterial road, the City requires a strip of vacant land in fee simple containing a total 2,414.1m2 from both the March Road and Klondike Road frontage.  At the request of the Infrastructure Services Department, Realty Services opened negotiations with the owner.  It was determined that the taking of the road requirements would leave the remaining site area too small for development as a modern fuel handling facility as planned by the owner.  A buyout of the property was recommended in order to avoid damages related to loss of utility and injurious affection.  This will allow the City to recover some costs by disposing of the surplus remainder land containing approximately 1.15ha upon completion of the March Road Project.  The surplus lands are estimated to have a value in excess of one million dollars.

 

Both parties commissioned independent appraisals based on a total buyout of the property in its highest and best use, which resulted in market value estimates ranging between $1,315,000 and $1,485,000 respectively.  Negotiations resulted in a buyout agreement for the total consideration of $1,400,000 plus HST where applicable. 

 

 

RURAL IMPLICATIONS

 

There are no rural implications to implementing the recommendation in this report.

 

 

ENVIRONMENTAL IMPLICATIONS

 

The subject property has never been used as a fuel retailing or fuel handling facility and the Historical Land Use Inventory showed no previous use of the property that would warrant environmental concern.  Furthermore, in accordance with City policy regarding the acquisition of a total buyout and the terms and conditions of the Property Acquisition Agreement, a Phase 1 Environmental Site Assessment will be completed on behalf of the City as part of its due diligence prior to completion of this transaction.  Per the terms of agreement should the City not be satisfied, in its sole discretion and at its sole expense, with the results of such environmental assessments and investigations of the soil and groundwater quality comprising the property as it shall deem necessary, the City may elect not to proceed with closing the transaction.

 

 

CONSULTATION

 

The project was subject to a Municipal Class Environmental Assessment that included public meetings. 

 

 

COMMENTS BY THE WARD COUNCILLOR

 

The property is located in Kanata North, Ward 4.  Councillor Wilkinson has reviewed the report and concurs with the report recommendation. 

 

 

LEGAL/RISK MANAGEMENT IMPLICATIONS

 

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

 

 

CITY STRATEGIC PLAN

 

N/A

 

 

TECHNICAL IMPLICATIONS

 

N/A

 

FINANCIAL STATEMENT            

 

Account number                                             903182

 

Approved Budget to Date                             $14,000,000   

 

Total Paid and Committed                           ($11,225,212.74)

 

Balance Available                                          $2,774,787.26       

 

This Request                                                 ($1,424,640) 

Balance Remaining                                        $1,350,147

 

Funds have been provided in the 2009 Capital Budget and are available in Internal Order # 903182, Localized Network Repair and Improvements.  Funds Reservation #10885467.

 

 

SUPPORTING DOCUMENTATION

 

Document 1 – Property Sketch

 

 

DISPOSITION

 

Subject to approval of this report by City Council, Realty Services and External Legal Counsel will finalize the transaction.

 

DOCUMENT 1 11992K5