finance and economic development committee - Ottawa

FINANCE AND ECONOMIC
DEVELOPMENT COMMITTEE
REPORT 36
11 SEPTEMBER 2013
8.
278
COMITÉ DES FINANCES ET DU
DÉVELOPPEMENT ÉCONOMIQUE
RAPPORT 36
LE 11 SEPTEMBRE 2013
PROPERTY ACQUISITION, SNOW DISPOSAL FACILITY – 2125 CARP ROAD
ACQUISITION DE PROPRIÉTÉ, DÉPÔT DE NEIGE – 2125, CHEMIN CARP
COMMITTEE RECOMMENDATIONS
That Council:
Approve the purchase of real property containing 23.82 ha, described as
being Part of Lot 2, Concession 3, in the geographic Township of Huntley,
known municipally as 2125 Carp Road City of Ottawa and shown as Parcels
1 and 2 on Document “1”, required for use as a Snow Disposal Facility from
Albert George Reed and June Reed for the consideration of $3,982,500 plus
applicable taxes related to the transaction.
RECOMMANDATIONS DU COMITÉ
Que le Conseil:
Approuve l’achat d’un bien-fonds d’une superficie de 23,82 ha, décrit
comme étant la partie de lot 2, concession 3, dans le Canton géographique
de Huntley, dont l’adresse municipale est le 2125, chemin Carp à Ottawa et
illustré comme étant les parcelles 1 et 2 dans le document « 1 », devant
servir de dépôt de neige et acquis d’Albert George Reed et de June Reed
pour un montant de 3 982 500 $, taxes liées à la transaction en sus.
DOCUMENTATION / DOCUMENTATION
1.
Nancy Schepers, Deputy City Manager/Planning and Infrastructure, report dated
21 August 2013 (ACS2013-PAI-REP-0018)
Nancy Schepers, Directrice municipale adjointe/Urbanisme et Infrastructure,
rapport daté 21 août 2013 (ACS2013-PAI-REP-0018)
2.
Extract of Draft Committee Minutes 36, 3 September 2013
Extrait de l’ébauche du procès-verbal 36 du 3 septembre 2013.
FINANCE AND ECONOMIC
DEVELOPMENT COMMITTEE
REPORT 36
11 SEPTEMBER 2013
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DÉVELOPPEMENT ÉCONOMIQUE
RAPPORT 36
LE 11 SEPTEMBRE 2013
Report to/Rapport au :
Finance and Economic Development Committee
Comité des finances et du développement économique
and Council / et au Conseil
August 21, 2013
21 août 2013
Submitted by/Soumis par : Nancy Schepers, Deputy City Manager/Directrice
municipale adjointe, Planning and Infrastructure / Urbanisme et Infrastructure
Contact Person / Personne ressource: James Bowser, Acting Manager, Realty
Services Branch, Real Estate Partnerships and Development Office / Gestionnaire,
Direction des services immobiliers, Bureau de partenaires immobiliers et du
développement
613-580-2424 extension 28209, [email protected]
RIDEAU-GOULBOURN (21)
Ref N°: ACS2013-PAI-REP-0018
SUBJECT:
PROPERTY ACQUISITION, SNOW DISPOSAL FACILITY – 2125
CARP ROAD
OBJET :
ACQUISITION DE PROPRIÉTÉ, DÉPÔT DE NEIGE – 2125, CHEMIN
CARP
REPORT RECOMMENDATION
That the Finance and Economic Development Committee recommend Council
approve the purchase of real property containing 23.82 ha, described as being
Part of Lot 2, Concession 3, in the geographic Township of Huntley, known
municipally as 2125 Carp Road City of Ottawa and shown as Parcels 1 and 2 on
Document “1”, required for use as a Snow Disposal Facility from Albert George
Reed and June Reed for the consideration of $3,982,500 plus applicable taxes
related to the transaction.
RECOMMANDATION DU RAPPORT
Que le Comité des finances et du développement économique recommande au
Conseil d’approuver l’achat d’un bien-fonds d’une superficie de 23,82 ha, décrit
comme étant la partie de lot 2, concession 3, dans le Canton géographique de
Huntley, dont l’adresse municipale est le 2125, chemin Carp à Ottawa et illustré
FINANCE AND ECONOMIC
DEVELOPMENT COMMITTEE
REPORT 36
11 SEPTEMBER 2013
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DÉVELOPPEMENT ÉCONOMIQUE
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LE 11 SEPTEMBRE 2013
comme étant les parcelles 1 et 2 dans le document « 1 », devant servir de dépôt
de neige et acquis d’Albert George Reed et de June Reed pour un montant de
3 982 500 $, taxes liées à la transaction en sus.
BACKGROUND
On 28 November 2007, City Council approved report ACS2007-BTS-RPM-0006 with
respect to the Maple Grove Works Operation within Kanata West Concept Plan. The
report included a discussion of funding of the acquisition, design and construction of an
alternate snow disposal facility due to crowding at Maple Grove.
Shortly after approval, Infrastructure Services Department directed Realty Services to
search for a site for a permanent Snow Disposal Facility (SDF) as a replacement for the
temporary facility at Maple Grove works yard. A new engineered facility was required
for the environmentally safe containment and disposal of snow from the existing and
future west catchment area. Of the twenty-one properties evaluated, 2125 Carp Road
was determined to be the preferred site in consideration of its the proximity to major
transportation routes, access to a drainage outlet, size and location within an industrial
park away from residential development.
In order to undertake due diligence for use as a SDF, the City entered into an Option to
Purchase Agreement dated 20 March 2012 approved by delegated authority report
DEL2012-REPDO-0046. It is now necessary to exercise the Option to Purchase and for
SDF construction to begin as the owners are not prepared to grant any further option.
DISCUSSION
The subject property is located at 2125 Carp Road in the City of Ottawa between
Highway 417 and Westbrook Road as shown on Document “1”, and contains 23.82 ha
(58.85 acres) of land zoned Rural General Industrial (RG5). The property meets the
SDF site criteria with respect to being central to the existing and expected expansion of
the West Urban Community. The site also has the land area required to house the
facility, access to major transportation routes and is located within an industrial park
away from residential occupancy.
The property is subject to an easement in favour of the City for stormwater management
and storage with a drainage outlet onto the Highway 417 right of way that eventually
runs to the Carp River. Stormwater enters the property through culverts crossing
Westbrook Road connected to an inline stormwater pond located south of Westbrook
Road running to Walgreen Road. The inline facility collects stormwater runoff from the
entire industrial subdivision and outlets the water through the subject lands.
Notwithstanding the existence of the external inline pond, area stormwater management
is substandard and must be upgraded as part of the SDF construction.
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DEVELOPMENT COMMITTEE
REPORT 36
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DÉVELOPPEMENT ÉCONOMIQUE
RAPPORT 36
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The SDF and stormwater management will require about 16 ha (39 acres) leaving 5 to 7
ha (15 acres) vacant. Acquisition of the entire property including the excess land at
2125 Carp Road is considered to be strategic as it will allow Public Works to address
other accommodation issues it faces in West Ottawa in both the short and long term.
More specifically, development in Kanata West will impact the future use of the Works
Yard located at 1655 Maple Grove and the additional acreage at 2125 Carp Road will
allow for an orderly relocation of operations from Maple Grove should relocation be
required.
Negotiations with the property owner resulted in an option to purchase agreement
whereby the City obtained a one year option period plus a six month renewal period to
perform necessary due diligence. The option payments were approved by delegated
authority reports DEL2012-REPDO-0046 and DEL2013-REPDO-0009. Exercise of the
option to purchase calls for the City to purchase the entire property on agreed market
value terms in the amount of $4,050,000, less the combined option and renewal
considerations of $67,500 for a total of $3,982,500.
The property negotiations were supported by an independent appraisal commissioned
by the owner and peer reviewed by an independent appraiser retained by the City. The
City’s internal Valuation Unit also reviewed the appraisal and agreed with the Market
value estimate provided. The appraisers relied on the Direct Comparison Approach
wherein the subject property was compared with similar type properties that have
recently been sold, or had been offered for sale at the effective date of appraisal.
RURAL IMPLICATIONS
The site is located in a rural industrial area and the SDF is an industrial use. The
Stormwater Management pond will enhance proper drainage in the area.
CONSULTATION
The project is subject to a Municipal Class Environmental Assessment that included two
open houses for the benefit of the Provincial Ministry of Environment.
The Mississippi Valley Conservation Authority was consulted with respect to surface
water, groundwater and fish habitat.
The Ministry of Transportation was consulted with respect to the Highway 417 drainage
outlet.
COMMENTS BY THE WARD COUNCILLOR
The project is located in Ward 21 Rideau Goulbourn, Councillor Moffatt has reviewed
the report and is aware of the recommendations therein.
FINANCE AND ECONOMIC
DEVELOPMENT COMMITTEE
REPORT 36
11 SEPTEMBER 2013
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DÉVELOPPEMENT ÉCONOMIQUE
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LE 11 SEPTEMBRE 2013
LEGAL IMPLICATIONS
There are no legal impediments to implementing the recommendation in this report.
RISK MANAGEMENT IMPLICATIONS
Failure to exercise the option and proceed with the purchase will result in the loss of the
opportunity to purchase the property and will require a new process for finding a
location for a Snow Disposal Facility for the west catchment area. Based on previous
experience, there are limited opportunities to acquire this type of property.
The Municipal Class Environmental Assessment has been completed but Provincial
approval of the EA is still required for SDF construction to commence. The approval will
not be forthcoming prior to the expiry of the option; however the City must proceed with
the purchase as the owners will grant no further extension. In the event that the
Municipal Class is not approved, the City will still acquire an asset worth $4,050,000 for
development by Ottawa Lands Corporation or for disposal. In the event that the
Municipal Class is not approved and should it be necessary, the City will be able to sell
the asset to recover the initial investment.
FINANCIAL IMPLICATIONS
Funding for the acquisition of this property is included in the Council approved budget
authority of $9.145 M. The budget encompasses land acquisition, design and
construction of the snow disposal facility including the storm water pond plus other
amenities for the relocation of the Maple Grove Snow Disposal Facility.
ACCESSIBILITY IMPACTS
The subject property is vacant land. There are no accessibility impacts.
ENVIRONMENTAL IMPLICATIONS
Part of the site is considered to be a groundwater recharge area and mitigation
measures are designed to prevent meltwater from entering the water table.
The Mississippi Valley Conservation Authority does not consider surface water on the
site to be fish habitat.
The property was subject to a Phase 1 and Phase 2 Environmental Site Assessment
and no concerns were reported.
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DÉVELOPPEMENT ÉCONOMIQUE
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TECHNOLOGY IMPLICATIONS
There are no technological implications resulting from the recommendations in this
report.
TERM OF COUNCIL PRIORITIES
The proposed acquisition of 2125 Carp Road to accommodate a snow disposal facility is
consistent with the City’s 2011-2014 strategic priorities for long-term sustainability. The
site being central to the existing West Urban Community, with access to major
transportation routes, makes it a strategic and fiscally responsible acquisition and a
responsible decision in managing the City’s assets. In addition, the property meets the
SDF site criteria and the facility will be designed to reduce environmental impact
thereby meeting the City’s municipal waste management and environmental
stewardship priorities.
SUPPORTING DOCUMENTATION
Document 1 – Property Sketch
DISPOSITION
Upon approval, Realty Services and Legal Services will complete the transaction.
FINANCE AND ECONOMIC
DEVELOPMENT COMMITTEE
REPORT 36
11 SEPTEMBER 2013
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DÉVELOPPEMENT ÉCONOMIQUE
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Document 1 – Property Sketch