Document 1
Property Sketch
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1. 800, chemin montréal - acquisition d’un terrain –programme fÉdÉral des biens excÉdentaires
800, chemin montréal - acquisition d’un terrain –programme fÉdÉral des biens excÉdentaires
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Committee RecommendationS
That Council:
1. Delegate authority to the Manager of Housing Services and the Manager of Realty Services to:
a) Apply to the Surplus Federal Real Property for Homelessness Initiative to acquire land from Canada Lands Company CLC Limited known municipally as 800 Montréal Road and being part of Part 4, Plan 4M-1032, shown on Document 1 attached, for $1.00 to make such land available for affordable housing through the Action Ottawa program; and
b) Subject to approval of the application, proceed with the negotiation and execution of the required agreements to purchase the land described in Recommendation 1 for affordable housing under the Action Ottawa program, from Canada Lands Company CLC Limited, for $1.00, subject to HST and closing costs, as applicable.
2. Direct the Chair, Councillor Diane Deans, to write a letter supporting the City of Ottawa’s application to acquire the lands at 800 Montréal Road for affordable housing purposes.
RecommandationS DU Comité
Que le Conseil :
1. Délègue son autorité au gestionnaire des Services du logement et au gestionnaire des Services immobiliers, aux fins suivantes :
a) Faire une demande à l’Initiative visant à mettre des biens immobiliers excédentaires fédéraux à la disposition des sans abri, afin d’acquérir un terrain de la Société immobilière du Canada SIC limitée, dont l’adresse municipale est le 800, chemin Montréal et compris dans la Partie 4, Plan 4M-1032, du Document 1 ci-joint, au prix de 1,00 $, et de rendre ce terrain disponible pour l’aménagement de logements abordables par le biais du programme Action Ottawa;
b) Sous réserve de l’acceptation de la demande, entamer la négociation et l’exécution des ententes nécessaires pour acquérir de la Société immobilière du Canada SIC limitée le terrain décrit à la recommandation 1 et destiné à des logements abordables aménagés dans le cadre du programme Action Ottawa, au prix de 1,00 $, auquel s’ajoutent la TVH et les frais de dossier applicables.
2. Ordonne à la présidente, la conseillère Diane Deans, d’écrire une lettre appuyant la demande de la Ville d’Ottawa d’acquérir les terres situées au 800, chemin Montréal afin d’y construire des logements à prix abordables.
Documentation
1. Deputy City Manager's report, City Operations Branch, dated 19 August 2010 (ACS2010-COS-CSS-0015).
2. Extract of Draft Minutes, 19 August 2010.
Report to/Rapport au:
Community and Protective Services Committee
Comité des services communautaires et de protection
and Council / et au Conseil
Submitted by/Soumis par:
Steve Kanellakos, Deputy City Manager/Directeur municipal adjoint,
City Operations/Opérations municipales
Contact Person/Personne ressource Janice Burelle, Manager of Housing, Community and Social Services Department/Gest.Logement,Services sociaux et communautaires
(613) 580-2424 x43081, Janice.burelle@ottawa.ca
SUBJECT: |
800 MontrÉal Road - lands acquisition-Federal Surplus Property program |
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OBJET: |
800, chemin montréal - acquisition d’un terrain –programme fÉdÉral des biens excÉdentaires |
That the Community and Protective Services Committee recommend that Council delegate authority to the Manager of Housing Services and the Manager of Realty Services to:
1. Apply to the Surplus Federal Real Property for Homelessness Initiative to acquire land from Canada Lands Company CLC Limited known municipally as 800 Montréal Road and being part of Part 4, Plan 4M-1032, shown on Document 1 attached, for $1.00 to make such land available for affordable housing through the Action Ottawa program; and
2. Subject to approval of the application, proceed with the negotiation and execution of the required agreements to purchase the land described in Recommendation 1 for affordable housing under the Action Ottawa program, from Canada Lands Company CLC Limited, for $1.00, subject to HST and closing costs, as applicable.
Que le Comité des services communautaires et de protection recommande au Conseil de déléguer son autorité au gestionnaire des Services du logement et au gestionnaire des Services immobiliers, aux fins suivantes :
1. Faire une demande à l’Initiative visant à mettre des biens immobiliers excédentaires fédéraux à la disposition des sans‑abri, afin d’acquérir un terrain de la Société immobilière du Canada SIC limitée, dont l’adresse municipale est le 800, chemin Montréal et compris dans la Partie 4, Plan 4M-1032, du Document 1 ci-joint, au prix de 1,00 $, et de rendre ce terrain disponible pour l’aménagement de logements abordables par le biais du programme Action Ottawa;
2. Sous réserve de l’acceptation de la demande, entamer la négociation et l’exécution des ententes nécessaires pour acquérir de la Société immobilière du Canada SIC limitée le terrain décrit à la recommandation 1 et destiné à des logements abordables aménagés dans le cadre du programme Action Ottawa, au prix de 1,00 $, auquel s’ajoutent la TVH et les frais de dossier applicables.
Housing Services is in the process of making a formal application to the Federal Government to secure the subject parcel of land municipally known as part of 800 Montreal Road in the Carson Grove area under the Surplus Federal Real Property for Homelessness Initiative (SFRPHI). Under this initiative, the federal government makes land available at a nominal fee to proponents who develop affordable housing. It is the intent of the City to use this land, once it is acquired from the federal government to provide affordable housing in the community, under the Action Ottawa initiative and the Canada Ontario Affordability Program (AHP). It is estimated that between 60-90 units could be developed on the subject parcel of land.
Should the City of Ottawa be successful in its application to obtain these lands, the transfer of the property will require that a number of agreements be negotiated and executed involving three federal departments. The federal partners involved are working toward an October 31, 2010 deadline to execute the agreement and transfer the subject parcel of land. This cannot occur without Council approval first allowing the submission of a formal application to Human Resources and Skill Development Canada (HRSDC) and authority to execute relevant agreements under SFRPHI.
DISCUSSION
The Surplus Federal Real Property for Homelessness Initiative (SFRPHI) is a federal program administered by The Homelessness Secretariat under Human Resources and Skills Development Canada (HRSDC). The program meets the dual federal objectives of disposing of surplus real property assets and directing these assets towards use in affordable housing initiatives. Proponents who successfully access the program are entitled to secure the federal surplus land at a nominal value, provided the affordability objectives of SFRPHI are met. It is the intent of Housing Services to apply to this program in the next few months to secure the subject lands for affordable housing development under the Action Ottawa program in 2011. As such, the property would be purchased for a nominal price, One ($1.00) Dollar, and then offered to the successful housing provider through the Action Ottawa Program to meet affordable housing needs. It is estimated that approximately 60-90 affordable housing units can be provided on this parcel of land, which is well served by public transit, with access to shopping, entertainment, and parks. Given the limited availability of resources for affordable housing development, securing the Montreal Road site under this initiative represents a key opportunity for the City to leverage community investment in affordable housing at minimal cost to the City. The subject property is approximately 2, 977 square metres in area, subject to final survey. The land is zoned AM5, Arterial Mainstreet zone with exception, which allows for a variety of non-residential and residential uses such as an apartment dwelling and mid-high rise.
In the proposed land acquisition, there are three federal departments/agencies involved: Canada Lands Company (CLC) Ltd., who currently owns the land; Public Works and Government Services who would handle the transfer from CLC via a Purchase and Sale Agreement; and HRSDC who would administer the conditions of the transfer to the City through a Contribution Agreement under the SFRPHI program.
Under the proposed terms between the parties, the City would be required to ensure that the lands are used for affordable housing within five (5) years from the date of closing. Canada Lands Company would retain the option to take back the land at no cost to the City after three years if construction had not begun, and there had not been substantial progress toward the start of construction. In addition, specific development obligations for the lands would have to be met and the City, in acquiring the land, would transfer these obligations onto the end user of the site, namely any successful proponents under the Action Ottawa program.
To assist in successfully negotiating the terms of the transfer of the lands staff from the Housing Branch, Realty Services, Legal Services and Planning and Growth Management Department will be involved in the process.
Realty Services has reviewed all environmental information, Phase1 and Phase II Environmental Assessment, provided by CLC and the Federal Government with respect to the subject lands. Based on the results of the Phase I and Phase II ESA, Realty Services recommends that the Agreement of Purchase and Sale be conditional on the City undertaking its own environmental assessment prior to the closing date and being satisfied that the acquisition of the subject property does not pose a potential environmental liability to the City.
Legal Services will be reviewing all legal agreements related to the transfer and will take an active role in identifying agreeable terms of transfer.
Planning and Growth Management Department has participated in internal discussions, and will continue to play a role in outlining any potential issues that would negatively impact the proposed land transfer.
Pending City Council approval, the transfer process will include:
Finalization of agreement negotiations with Federal Government (August 2010)
Execution of Contribution Agreement (September 2010)
Execution of Purchase and Sale Agreement (October 2010)
Transfer of property from Federal Government to City (February 2011)
With Council approval and subsequent execution of the Contribution Agreement by the City, the three federal departments/agencies will then execute the respective agreements in order to meet their fiscal year end targets and ensure successful transfer of these lands. Once the land is transferred to the City, staff intends to include this property as part of an Action Ottawa proposal call in 2011 when the Affordable Housing Program guidelines are released. Given that the market value as estimated by the owner of the subject lands is approximately One Million, Eight Hundred Thousand ($1,800,000) Dollars, this acquisition provides a valuable opportunity to increase the supply of affordable housing in the Ottawa community at minimal cost to the City.
A similar process was undertaken to acquire the lands at 3901 Albion Road, currently known has McLean Cooperative Homes. These lands were purchased through SFRPHI by the City of Ottawa and later developed into McLean Cooperative Homes under Action Ottawa and the Canada-Ontario Affordable Housing Program. McLean Cooperative currently contains a mix of apartment and town houses, including supportive housing for 63 households.
Next Steps
These lands will be made available for development under the Action Ottawa program, and as such, additional capital and financial resources will need to be committed to achieve the affordability targets of Action Ottawa in 2011 and 2012. Based on current Action Ottawa guidelines, this includes fee relief, relief from development charges, and property tax reductions.
Earlier Canada-Ontario Affordable Housing Program (AHP) initiatives required that the City provide 1/3rd the capital funding in order for projects to be viable in Ottawa. The 2009/10 AHP funding model provided sufficient funds, $120,000 per dwelling unit which did not require a capital subsidy from the City however projects still required fee relief and other assistance under Action Ottawa in order to be viable.
The Federal and Provincial Governments have committed to extending the AHP for another 3 years but have not yet released the new guidelines or any funding information. If the City is required to provide 1/3 the capital funding to support a project under the AHP, up to $2,100,000 of capital funding, based on $30,000 per unit for 70 units from the City may be required in addition to other incentives under Action Ottawa.
Additional resources, such as rent supplements may also need to be provided to achieve increased affordability. These City inputs are consistent with previous Action Ottawa projects, and with such contributions counting as matching dollars for the Federal/Provincial housing program funds. A report seeking the necessary authorities and resources for the continuation of Action Ottawa in 2011 and the development of the subject lands will be tabled for Council following the release of the 2011 AHP guidelines.
As noted in the Financial Implications section, if the City does not use the land for affordable housing or substantially complete development within five years, it would be required to pay to the federal government the current market value of the property ($1.8 Million). However, staff does not anticipate any difficulties in facilitating the timely development of the lands, given the City's current mechanisms already in place under the Action Ottawa program and previous experience with the Surplus Federal Real Property for Homelessness Initiative (SFRPHI).
ENVIRONMENTAL IMPLICATIONS
Realty Services has reviewed all environmental information, Phase1 and Phase II Environmental Assessment, provided by CLC and the Federal Government with respect to the subject lands. Based on the results of the Phase I and Phase II ESA, Realty Services recommends that the Agreement of Purchase and Sale be conditional on the City undertaking its own environmental assessment prior to the closing date and being satisfied that the acquisition of the subject property does not pose a potential environmental liability to the City.
CONSULTATION
The Canada Lands Company held one community consultation for these lands during the Planning process prior to the submission of any development applications. As part of the Planning approval process, public consultation will continue following the acquisition process.
COMMENTS BY WARD COUNCILLOR
Councillor Jacques Legendre is aware of the application.
LEGAL/RISK MANAGEMENT
There are no legal/risk management impediments to implementing any of the Recommendations arising from this Report.
CITY STRATEGIC PLAN
Sustainable, Healthy and Active City Priority. Objective 4: In co-operation with federal and provincial partners, end homelessness in 10 years. Objective 7: Set a high-level and a proactive municipal response to meet the social services, social housing, supported living and public health needs of Ottawa residents. Activity: Achieve the annual development of 500 housing units affordable to people earning low income.
Sustainable Finances Priority. Objective 1: Fund infrastructure renewal, including closing the gap in affordable and appropriate housing supply. Activity: Implement the City Housing
Strategy actions related to identifying and gathering resources for affordable housing development.
TECHNICAL IMPLICATIONS
N/A
FINANCIAL IMPLICATIONS
The land cost of $1.00, subject to HST and closing fees, property management, and environmental investigation estimated at $100,000, are to be funded from the Affordable Housing Capital Building Fund. If the City does not use the land for affordable housing or substantially complete the development within five years, it would be required to pay to the federal government the current market value of the property ($1.8 M).
SUPPORTING DOCUMENTATION
Document 1: Property Sketch (Immediately follows the report)
DISPOSITION
Upon approval by Council, the Manager for the Realty Services and the Manager of Housing Services would finalize negotiations and, after review by Legal Services, execute the required agreements. Legal Services will then assist in completing the actual transfer of the subject lands to the City from the Federal Government.
Document 1
Property Sketch
800 MONTRÉAL ROAD - LANDS ACQUISITION-FEDERAL SURPLUS PROPERTY PROGRAM
800, CHEMIN MONTRÉAL - ACQUISITION D’UN TERRAIN –PROGRAMME FÉDÉRAL DES BIENS EXCÉDENTAIRES
ACS2010-COS-CSS-0015 RIDEAU – ROCKCLIFFE (13)
Moved by S. Qadri
WHEREAS Housing Services is seeking approval from Community and Protective Services Committee and Council (ACS2010-COS-CSS-0015) to submit an application to the Human Resources and Skills Development Canada - Surplus Federal Property for Homelessness Initiative (SFPHI) to acquire a parcel of land for $1.00 at 800 Montréal Road from Canada Lands Company Limited for affordable housing purposes;
WHEREAS in order to proceed with the application submission to the Surplus Federal Real Property for Homeless Initiative, letters of support for the proposal have been requested by Human Resources and Skills Development Canada (HRSDC) to be included in the submission package;
THEREFORE BE IT RESOLVED THAT Community and Protective Services Committee direct the Chair, Councillor Diane Deans, to write a letter supporting the City of Ottawa’s application to acquire the lands at 800 Montréal Road for affordable housing purposes.
That the Community and Protective Services Committee recommend that Council:
1. Delegate authority to the Manager of Housing Services and the Manager of Realty Services to:
a) Apply to the Surplus Federal Real Property for Homelessness Initiative to acquire land from Canada Lands Company CLC Limited known municipally as 800 Montréal Road and being part of Part 4, Plan 4M-1032, shown on Document 1 attached, for $1.00 to make such land available for affordable housing through the Action Ottawa program; and
b) Subject to approval of the application, proceed with the negotiation and execution of the required agreements to purchase the land described in Recommendation 1 for affordable housing under the Action Ottawa program, from Canada Lands Company CLC Limited, for $1.00, subject to HST and closing costs, as applicable.
2. Direct the Chair, Councillor Diane Deans, to write a letter supporting the City of Ottawa’s application to acquire the lands at 800 Montréal Road for affordable housing purposes.
CARRIED as amended