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6. LAND Exchange - 651 Industrial Avenue, Part of 848 belfast road and part of pin 04256-0679, city of ottawa
Échange d’un terrain – 651, avenue INDUSTRIAL, PARTIE DU 848, CHEMIN BELFAST ET PARTIE DU PIN 04256-0679, VILLE D’OTTAWA
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Committee RecommendationS
That Council:
1. Declare a portion of 651 Industrial Avenue containing a combined land area of 2,919.2m2, subject to final survey and described as being PIN 04256-0235, part of PIN 04256-0405 and part of PIN 04256-0315, in the City of Ottawa, shown as Parcels 1, 2 and 3 on the attached Document 1, as surplus to the City’s needs; and
2. Approve the sale of the land referred to in Recommendation 1, having a value of $630,000, together with $390,000 plus HST to 166332 Ontario Inc., in exchange for parcels of vacant land containing a combined land area of 3,413.4m2 subject to final survey, described as being Part of PIN 04256-0679 and part of PIN 04256-0225, in the City of Ottawa, shown as Parcels 4 and 5 on the attached Document, having a value of $1,020,000 subject to any easements that may be required, pursuant to an Agreement of Purchase and Sale.
RecommandationS DU COMITÉ
Que le Conseil municipal :
1. déclare excédentaire aux besoins de la Ville une portion du 651, avenue Industrial comprenant une superficie conjuguée de 2 919,2 m2, sous réserve d’un levé définitif, et décrite comme étant PIN 04256-0235, partie de PIN 04256-0405 et partie de PIN 04256-0315, dans la Ville d’Ottawa, indiquée comme parcelles 1, 2 et 3 au document 1 annexé; et
2. approuve la vente du terrain dont il est question à la recommandation 1, d’une valeur de 630 000 $, ainsi que la somme 390 000 $ plus TVH, à 166332 Ontario Inc., en échange de parcelles de terrain vacant d’une superficie conjuguée de 3 413,4 m2 sous réserve d’un levé définitif, décrit comme faisant partie du PIN 04256-0679 et du PIN 04256-0225, dans la Ville d’Ottawa, indiqué comme étant les parcelles 4 et 5 dans le document annexé, d’une valeur de 1 020 000 $, sous réserve de toute servitude requise, conformément au contrat d’achat et de vente.
Documentation
1.
City Manager’s report dated 20 August 2010
(ACS2010-CMR-REP-0044)
Report to/Rapport au :
Transit Committee /
Comité du transport en commun
and Council / et au Conseil
20 August 2010 / le 20 août 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 partenariats et du développement en immobilier (613) 580-2424 x 21217, Gordon.MacNair@ottawa.ca
REPORT RECOMMENDATIONS
That the Transit Committee recommend Council:
1. Declare a portion of 651 Industrial Avenue containing a combined land area of 2,919.2m2, subject to final survey and described as being PIN 04256-0235, part of PIN 04256-0405 and part of PIN 04256-0315, in the City of Ottawa, shown as Parcels 1, 2 and 3 on the attached Document 1, as surplus to the City’s needs; and
2. Approve the sale of the land referred to in Recommendation 1, having a value of $630,000, together with $390,000 plus HST to 166332 Ontario Inc., in exchange for parcels of vacant land containing a combined land area of 3,413.4m2 subject to final survey, described as being Part of PIN 04256-0679 and part of PIN 04256-0225, in the City of Ottawa, shown as Parcels 4 and 5 on the attached Document, having a value of $1,020,000 subject to any easements that may be required, pursuant to an Agreement of Purchase and Sale.
RECOMMANDATIONS DU RAPPORT
Que le Comité du transport en commun recommande au Conseil municipal :
- De déclarer excédentaire aux besoins de la Ville une portion du 651, avenue Industrial comprenant une superficie conjuguée de 2 919,2 m2, sous réserve d’un levé définitif, et décrite comme étant PIN 04256-0235, partie de PIN 04256-0405 et partie de PIN 04256-0315, dans la Ville d’Ottawa, indiquée comme parcelles 1, 2 et 3 au document 1 annexé;
- D’approuver la vente du terrain dont il est question à la recommandation 1, d’une valeur de 630 000 $, ainsi que la somme 390 000 $ plus TVH, à 166332 Ontario Inc., en échange de parcelles de terrain vacant d’une superficie conjuguée de 3 413,4 m2 sous réserve d’un levé définitif, décrit comme faisant partie du PIN 04256-0679 et du PIN 04256-0225, dans la Ville d’Ottawa, indiqué comme étant les parcelles 4 et 5 dans le document annexé, d’une valeur de 1 020 000 $, sous réserve de toute servitude requise, conformément au contrat d’achat et de vente.
BACKGROUND
In May 2009, Council approved report ACS2009-ICS-TRA-0005 that included a recommendation for additional funding of $15M for the Articulated Bus Garage Facility Project (also known as the Industrial Bus Garage). With this funding increase, major changes were introduced to the interior design of the Maintenance Garage in order to facilitate operational improvements and additional service capacity of the facility. Part of this funding was also intended to increase the exterior parking areas to accommodate an enhanced fleet of over 210 articulated buses for daily deployment. Council approval was conditional upon completion of the community consultation process.
With additional funding approved, the consultant and project teams undertook investigations to achieve the objectives of the approved Council report. The design process included revision of traffic, noise and air quality studies that would form part of an amended Environmental Assessment (EA) required as a result of the recommended changes. Meetings were also held with immediate neighbours of the facility in order to obtain their input. On 11 January 2010, a Public Information Session was held to show the community the proposed implementation of additional buses on the site. In response, the local community association overwhelmingly objected to additional bus traffic on Industrial Avenue. Residents felt that traffic volume had greatly increased in the last few years, especially around the Russell Road and Industrial Avenue intersection. The Project team was tasked to address concerns raised by the public through the amended EA process.
On 28 January 2010, an additional $17M was approved as part of the 2010 Capital Budget, part of which was directed to additional land requirements stemming from proposed changes to the exterior site design and traffic circulation, and environmental mitigation measures to address the concerns brought forward by the local residents.
During the spring of 2010, OC Transpo as part of the continuing Service Improvement Plan, started to explore using the Industrial Bus Garage as a centralized maintenance facility. As such, an interaction between the new garage and the existing St. Laurent Bus Garage was considered necessary. This could be accomplished by creating a north-south link at Belfast Road; however, the City does not possess property on the south side of Belfast Road in order to achieve this link. Alternatively, buses could interact between the two facilities by accessing St. Laurent Blvd, Industrial Ave. and Train Yards Drive.
As well, the newly proposed Hospital Link – Cumberland Transitway Connection is now being considered along the Belfast Corridor. The local community associations were concerned that the City was not considering the Industrial Bus Garage as part of the future plans for this Transit Corridor.
In order to achieve the north/south property link, additional property will be required to establish an entrance on the south side of Belfast Road. In consideration of the design of the building entrances, outdoor vehicle storage areas and traffic circulation on the Industrial Bus Garage site, the optimum location for this would be toward the west-end of the site, opposite an established entrance to the St. Laurent Bus Garage site.
Therefore, the transfer of land proposed within this report would offer the best solution by the creation of a north-south link between the two OC Transpo facilities to meet the following objectives:
· Addresses the public’s concern raised during the amended EA process regarding increased bus traffic volume on Industrial Avenue. A reduction in bus traffic flow onto Industrial Avenue could be accomplished by dispatching and returning most west bound buses through a Belfast Road entrance (approximately 75% of buses are currently proposed to be dispatched west to the Hurdman Transitway Station);
· Addresses the public’s concern raised during the amended EA process regarding noise and air pollution migrating south into the local residences from additional bus traffic on Industrial Avenue;
· Provides a direct two-way, north/south link between the two bus garages to facilitate enhanced maintenance practices for additional buses between both sites without entering onto any public streets;
· Provides program efficiencies that will reduce operational costs by the reduction in travel time between sites, increase capacity of maintenance practices and a reduction in time for operators to access buses;
· Improves on-site vehicular circulation at the Industrial Bus Garage for the new bus parking area to access the maintenance garage for Countdown and servicing bays; thereby reducing travel time and increasing operational efficiency;
· Improves the speed of the morning and afternoon peak bus deployment periods at the Industrial Bus Garage by dispatching from two (2) entrance and exit locations;
· Reduces the impact to residents of returning buses in the evening on Industrial Avenue by diverting most of the buses to the Belfast entrance to access the Industrial Bus Garage;
· Provides for easier integration with the future Hospital Link - Cumberland Transitway Connection to the Industrial Bus Garage without impacting residential streets.
The cost of the property acquisition, the construction of the additional bus parking areas and the access lane to Belfast Road will be completed with approved funding sources. The amended EA is expected to be presented to the community in the winter of 2010-2011 at a Public Information Session. The construction of the above work is planned to be tendered in early spring of 2011 and completed in the summer of 2011.
The current Industrial Bus Garage is nearly completed. The facility is expected to be substantially complete by the end of August 2010. OC Transpo operations are expected to commence in the fall, with operations ramping up incrementally, and full capacity achieved once the construction of the additional parking is completed in the Summer of 2011.
DISCUSSION
The OC Transpo Transit Projects and Facilities Maintenance Branch, in consultation with the Design and Construction Architecture Unit, identified the need for an approximate 24m wide laneway, in order to cross land situated between the north side of the Industrial Bus Garage site and Belfast Road. Ideally, the best location for this laneway would be toward the west-end of the garage site, opposite an established entrance to the St. Laurent Bus Garage site.
Investigations undertaken by Realty Services confirmed that properties fronting along this section of Belfast Road typically consist of 1-2 acre sites improved with 1-storey industrial service and/or warehouse buildings. Among these properties, a narrow section of vacant land situated between two improved properties at 820 and 848 Belfast Road was confirmed to be held in the ownership of 1663321 Ontario Inc. and planned for use as a lane connection between Belfast Road and The Ottawa Train Yards (“the Train Yards”) commercial development. This commercial development is under construction upon a larger site situated behind properties fronting the south side of Belfast, and adjacent to the north-westerly boundary of the subject property.
Discussions were undertaken with the Train Yards ownership group to determine if there was an opportunity to acquire a portion of the land identified, or possibly, other land in their ownership. While reviewing this and alternative possibilities, the opportunity was introduced for the City to acquire the laneway from an adjacent property located at 848 Belfast. The Train Yards ownership was in the process of acquiring this property. This opportunity was advantageous for the City in that planned changes in traffic movement on the Industrial Bus Garage (i.e. dispatching and returning most west bound buses through a Belfast Road entrance) rendered a portion of the garage site surplus to OC Transpo’s needs. This parcel connected to the Train Yards land holdings and had value from their perspective. Consequently, the possibility of conducting a land exchange for portions of City land in the south-west part of the bus garage site at 651 Industrial Avenue for a portion of the site at 848 Belfast Road became part of the discussion.
The properties under consideration in this proposal are described as follows.
- City Lands - Part of 651 Industrial Avenue
The subject lands shown as Parcels 1, 2 and 3 on the attached Document 1 contain a combined area of approximately 2,919.2m² (31,420 ft²). The lands were part of a former CN/CP railway corridor acquired by the City in 2003 for assembly with other municipal land holdings and improvement with the Articulated Bus Garage program. More specifically, Parcel 1 is a former rail-spur leading to Industrial Avenue, Parcel 2 was part of the railway corridor and Parcel 3 was part of the Russell Road (closed) road allowance.
The lands are vacant and designated General Urban in the City’s Official Plan and zoned IG3 – General Industrial (Subzone 3) in Zoning By-Law 2008. In consideration of a limited frontage on Industrial Avenue (Parcel 1), the separation distance and absence of street exposure provided to Parcel 2, this part of the subject property is deemed non-viable for development as a stand-alone parcel. Similarly, given its limited size and location Parcel 3 is deemed non-viable for independent development.
- Land Owned by 1663321 Ontario Inc. - Part of 848 Belfast Road and part of PIN 04256-0679:
The subject lands shown as Parcels 4 and 5 are held in the ownership of 1663321 Ontario Inc. Parcel 4 is vacant area of land which is part of a larger parcel being improved with a variety of commercial retail buildings as part of The Ottawa Train Yards shopping centre. The land is designated General Urban in the Official Plan and zoned IG3[393] – General Industrial (Subzone 3) Exception 393 in Zoning By-Law 2008-283.
Parcel 5 is part of a 1.93 acre parcel known municipally as 848 Belfast Road, which is improved with a 12,000 square foot industrial building. The property was recently acquired by 1663321 Ontario Inc. with the intent of future redevelopment of the site in assembly with The Ottawa Train Yards shopping centre. The property is designated General Urban in the Official Plan and zoned IG3 – General Industrial (Subzone 3) in Zoning By-Law 2008.
In review of this proposition, consideration was given to benefits available to the City in respect of securing the identified property requirements of the Articulated Bus Garage program, including:
- the parcels are located in the optimum location to accommodate the design of the building entrances, outdoor vehicle storage areas and traffic circulation on the Industrial Bus Garage site;
- Parcel 5 is opposite and directly aligned with an existing buses only entrance/exit to the St. Laurent Bus Garage;
- Parcel 5 is opposite the St. Laurent Bus Garage site and directly aligned with an existing buses only entrance/exit and travel lanes leading to the garage building;
- Parcel 4 squares off the westerly limit of the Industrial Bus Garage site, thereby allowing more efficient use of the (west) site area for traffic circulation and construction of a traffic loop;
- The sale of Parcels 1 and 2 provides the opportunity to leverage a real estate asset deemed surplus to program needs, while supporting a key objective related to the same program;
- The purchaser is the owner of lands abutting both Parcels 1 and 2 which will allow for assembly of these lands for development in conjunction with these lands in accordance with the zoning and planning objectives for the area (note: purchaser owns property fronting along Industrial Avenue identified as Lot 33 on Document 1).
It was agreed to proceed with negotiations based on a land exchange that would result in a Purchase and Sale Agreement for the acquisition of land requirements related to the Industrial Bus Garage project, and the sale of the City owned parcel of land located at the south-west end of the site deemed surplus to the project needs.
Negotiations related to the purchase and sale of the subject property(s) were supported by an internal appraisal completed by the City’s Leasing and Valuation Unit, as well as an independent appraisal completed on behalf of the City, to provide an estimate of market value for the subject property(s) owned by the City and 1663321 Ontario Inc., respectively, in its highest and best use.
The respective appraisals concluded that in consideration of the location of the properties adjacent to The Train Yards shopping centre lands, the highest and best use of the respective property was holding for future development with commercial uses similar to those permitted on this site.
Each of the appraisers relied on the Direct Comparison Approach wherein the subject was compared with similar type properties that had recently sold, or had been offered for sale at the time of appraisal. In the case of the land required from 848 Belfast Road, consideration was also given to additional costs that result from the partial taking of land from an improved property, including, the demolition of the site improvements, removal of an electrical transformer and relocation of an existing hydro service line that crosses the property. In reconciliation, the market value of the City land was estimated to be $630,000 while that of the land owned by 1663321 Ontario Inc. was estimated to be $1,020,000.
Negotiations between the City and 1663321 Ontario Inc. have resulted in an agreement to exchange parcels of property on the following basis:
- The City is to transfer to 1663321 Ontario Inc. 2,919.2m2 of land shown as Parcels 1, 2 and 3 on the attached Document 1, subject to any easements that may be required, having a value of $630,000 together with a cash payment to 1663321 Ontario Inc. of $390,000.
- 1663321 Ontario Inc. is to transfer to the City 3,413.4m2 of land shown as Parcels 4 and 5 on the attached Document 1, having a value of $1,020,000.
The agreement to exchange the properties in question is considered fair and reasonable and is recommended for acceptance.
ENVIRONMENTAL IMPLICATIONS
There are no natural environmental implications in connection with this land exchange.
The City’s land requirements from the property to be acquired have been reviewed through the Historical Land Use Inventory. In consideration of its location within an established and active industrial area, and in accordance with the terms and conditions in the Purchase and Sale Agreement, the City will undertake environmental investigations upon the lands to be acquired as part of its due diligence.
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 First Policy 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. Neither the Housing Branch nor any other City Department expressed interest in retaining the property.
The utility companies were also circulated and no requirements were indicated.
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 concerns were expressed with respect to the sale of this property.
COMMENTS BY THE WARD COUNCILLOR
The subject property is located in Ward 18. The Ward Councillor, Peter Hume has been made aware of the intent to dispose of the subject property through land exchange and supports staff’s recommendation.
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 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 land is non-viable property in an industrial zone and therefore does not meet 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.
CITY STRATEGIC PLAN
N/A
TECHNICAL IMPLICATIONS
N/A
FINANCIAL IMPLICATIONS
Funds are available in Order 903780 for this land exchange and associated costs.
SUPPORTING DOCUMENTATION
Attached as Document 1 is a sketch showing the subject properties.
DISPOSITION
Following Council’s approval the Real Estate Partnerships and Development Office and Legal Services Branch will finalize the transactions.
Document 1
