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Recommendation:
That the purchase of the portion of SE 24-52-24-W4 (as shown in Attachment 2 of the June 6, 2006,Asset Management and Public Works Department report 2006PWL096) and containing 24.61 acres (9.96 hectares), more or less, excepting thereout all mines and minerals, for the sum of $1,415,075 from Associated Developers Ltd. and Capital Management Ltd., be approved.

Report Summary

Transportation and Public Works Committee approval is required as the total purchase price exceeds Administration’s delegated authority.

Previous Council/Committee Action

At the December 15, 2005, City Council meeting, Council approved the 2006 Budget and funding for the purchase of land for Project No. XX-31-9604, Storm Water Infrastructure.

Report

  • The Drainage Branch of the Asset Management and Public Works Department requires this land for the development of a storm water management facility adjacent to Fulton Creek to help prevent flooding of developing areas in the Southeast Industrial Area. Work on this project is scheduled to begin in the summer of 2006.
  • Negotiations with the property owner have resulted in an agreement whereby the City will pay the total sum of $1,415,075, and gain ownership of the subject land by way of plan of subdivision to be registered by August 31, 2006.
  • The Purchase Agreement is conditional upon the Area Structure Plan Amendment Bylaw#14322 for Pylypow (Planning File: ASP/06-0001) being passed by City Council on or before July 12, 2006. The said Amendment Bylaw is scheduled to be heard at the June 28, 2006, City Council Public Hearing meeting.
  • The Owner will be granted a right of entry back onto a portion of the subject land until May 31, 2007, to remove a number of nursery trees and associated fencing that the Owner wants to keep.
  • Funding for the acquisition of this property will be through the Capital Priorities Program (CPP) #XX-31-9604.

Justification of Recommendation

The proposed purchase price for the subject 24.61-acre portion of the SE 24-52-24-W4 is considered to represent the market value of that land.

Background Information Attached

  1. Information Sheet
  2. Plan of Subject Property
  3. Corporate Registry Searches

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Attachment 1

Information Sheet

Purchase of Land

1.Dept. File No.05-AC-1833

2.Legal DescriptionPortion of SE1/4 24-52-24-W4

3.Tax Roll & Holding Nos.Tax Roll #: 9546003Holding #1005000

4.OwnersCapital Management Ltd. and Associated Developers Ltd.

5.LocationWest of 34 Street at about 60 Avenue

6.ZoningAGI (Industrial Reserve)

7.Land Area24.61 acres (9.96 hectares) more or less – south portion of

property

Parent property contains 160 acres in total, more or less

8.Existing ImprovementsUndeveloped, vacant land with some tree-farm trees on it

9.Market Value$1,415,075.00 (independent appraisal)

10.Negotiated Price$1,415,075.00

10.OccupancyOwnerTenant

11.Initiated byCityOwner

12.FinancingAM&PW Department CPP #XX-31-9604

Drainage G. L. Account # CE 493600

13.RemarksThe Drainage Branch of the Asset Management & Public

Works Department requires this land for the development

of a storm water management facility adjacent to Fulton

Creek to help prevent flooding of developing areas in the

Southeast Industrial Area. Work on this project is to

begin in the summer of 2006.

Attachment 1 - Page 1 of 1

Attachment 3

Corporate Registry Searches

Associated Developers Ltd.

  • Directors/Shareholders:JulieTrache and BruceSembaliuk

Capital Management Ltd.

  • DirectorsJulieTrache and BruceSembaliuk
  • Shareholders:Capital Building Supplies Ltd. - 50%

Violet Hichon – 24%

JulieTrache / BruceSembaliuk, executors of the estate of GeorgeMulek – 26%

Attachment 3 - Page 1 of 1