Finance and Economic Development Committee Comité Des Finances Et Du Développement Économique

Report to Rapport au:

Finance and Economic Development Committee Comité des finances et du développement économique

and Council et au Conseil

January 28, 2014 28 janvier 2014

Submitted by Soumis par: Nancy Schepers, Deputy City Manager/Directrice Municipale adjointe, Planning and infrastructure/Urbanisme et Infrastructure

Contact Person Personne ressource: Gordon MacNair, Director, Real Estate Partnerships and Development Office/Gestionnaire, Initiatives et Mise en valeur en immobilier (613) 580-2424 x 21217, Gordon.MacNair@ottawa.ca

Ward: STITTSVILLE (6), RIVER (16) / File Number: ACS2014-PAI-REP-0006 RIVIÈRE (16), GLOUCESTER- SOUTHGATE (10) SUBJECT: OTTAWA COMMUNITY LANDS DEVELOPMENT CORPORATION’S REQUEST TO PARTICIPATE IN PLANNING AND REDEVELOPMENT FOR THE KANATA WEST LANDS AND FUTURE DISPOSAL OF CERTAIN CITY OWNED LANDS

OBJET: RÔLE DE LA SOCIÉTÉ D’AMÉNAGEMENT DES TERRAINS COMMUNAUTAIRES D’OTTAWA POUR LA VILLE CONCERNANT LE KANATA WEST OWNERS GROUP ET L’ALIÉNATION FUTURE DE CERTAINS TERRAINS DONT LA VILLE EST PROPRIÉTAIRE 2

REPORT RECOMMENDATIONS

That the Finance and Economic Development Committee recommend Council:

1. Authorize Ottawa Community Lands Development Corporation (OCLDC) to participate in the planning and redevelopment of the City owned lands in Kanata West on behalf of the City of Ottawa;

2. Declare viable parcels of land known municipally as 5731 Hazeldean Road, 1770 Heatherington Road, 3071 Riverside Drive and 2500 St. Laurent Boulevard as surplus to City requirements; and

3. Authorize staff to transfer the lands detailed in Recommendation 2 above, to the Ottawa Community Lands Development Corporation for future redevelopment and/or disposal.

RECOMMANDATIONS DU RAPPORT

Que le Comité des finances et du développement économique recommande au Conseil :

1. D’autoriser la Société d’aménagement des terrains communautaires d’Ottawa à représenter les intérêts fonciers de la Ville d’Ottawa dans le projet du Kanata West Owners Group;

2. De déclarer excédentaires aux besoins de la Ville des parcelles viables de terrain situées aux adresses suivantes : 5731, chemin Hazeldean, 1770, chemin Heatherington, 3071, promenade Riverside; boulevard Saint-Laurent 2500, et

3. D’autoriser le personnel à transférer les terrains mentionnés à la deuxième recommandation ci-dessus à la Société d’aménagement des terrains communautaires d’Ottawa pour aliénation ultérieure.

EXECUTIVE SUMMARY

The purpose of this report is to seek Council’s approval to authorize the OCLDC to participate in the planning and development of City owned lands located in the Kanata West Concept Plan (KWCP); to declare the subject viable parcels of land as surplus to City requirements; and to authorize staff to transfer those subject parcels to the OCLDC for future redevelopment and/or disposal. 3

The Kanata West landowner’s Owners Group (KWOG) was formed to advance the conceptual planning of 550 hectares (1,360 ac.) of future development land in the KWCP, which straddles Highway 417 around the Canadian Tire Centre, extending south to Hazeldean Road and north along the Carp River, in the Stittsville Ward. The City owns approximately 30 hectares (73 ac), which includes the Maple Grove Works Yard and includes 5731 Hazeldean Road. Recommendation 1 is seeking approval for the OCLDC to participate on behalf of the City in the Kanata West Owners Group meetings to ensure overall future planning and development opportunities for the City owned development lands are accommodated to the best extent possible. The ultimate disposition of the City’s lands would return to Committee and Council for approval.

Recommendations 2 and 3 of this report are seeking Council approval to declare the following parcels of lands as surplus to City requirements; 5731 Hazeldean Road, 1770 Heatherington Road, 3071 Riverside Drive and 2500 St. Laurent.

The parcel at 5731 Hazeldean Road is a 4.5 hectares (11 ac.) site and is surrounded by existing and future retail commercial development to the east and west. An Urban Natural Area (UNA 185) which is part of Poole Creek, traverses the site to the north. A City initiated zoning amendment for all properties located along Arterial Mainstreets is expected to rezone the property to AM7 - Arterial Mainstreet Subzone 7 from the current DR – Development Reserve Zone. This zone will allow for a broad range of uses including retail, service commercial, offices, residential and institutional uses in mixed- use buildings or side by side in separate buildings. Staff is recommending transfer of this parcel to the OCLDC due to its strategic location within the KWCP and to ensure protection of the Pool Creek buffer from future development.

The parcel at 1770 Heatherington Road is approximately 3.2 hectares (8.0 ac.) in size in the Gloucester-Southgate Ward. This former works yard site was decommissioned in 2012. On-site remediation is currently in process to remediate salt and petroleum impacts from the previous works operations. A Record of Site condition will be obtained prior to its sale. A zoning amendment application will be filed to amend the zoning from the IG1 to a residential category zone to accommodate residential development and a community garden which the local community has expressed interest in. Prior to preparing the application, the OLCDC will initiate a Request for Expressions of Interest (REOI) process to define the terms of reference for a future infill residential use of the site. An area of approximately 0.16 hectare will be set aside for the community garden prior to the sale of the development lands. Staff is recommending transfer of this parcel 4 to the OCLDC to ensure the development of the community garden, to complete the environmental remediation of the site and to encourage appropriate infill residential development of the site.

Council is also being requested to declare the former Bayview School at 3071 Riverside Drive in River Ward as surplus to City requirements. In 2007, Council directed staff to acquire this school site and provide Council with a redevelopment plan and funding recommendation. The City acquired the 4 hectares (10 ac.) property from the OCDSB for $8,090,000. The acquisition was in part intended to preserve green space consisting of an existing sports field, with the intent to sell the remainder of the property for mixed density development in support of the objectives of the Official Plan and to offset the acquisition cost for the property. In 2011, an adjacent 0.30 hectare (0.64 ac.) parcel of land was acquired to provide improved access to the development area of the site and increase its overall value for resale. Acquisition of the additional parcel was completed for $475,000.

Staff has undertaken a draft redevelopment concept plan that broadly reflected community input received at two visioning sessions in 2009. The results of those visioning sessions were reported to City Council and the draft concept plan was approved by City Council on 9 December 2009.The principles of low density residential abutting existing development and medium-density residential uses and/or institutional use (e.g. retirement home) in the interior of the site overlooking the sports field were endorsed by the community.

On 9 December 2009, Council also directed staff to advertise the development portion of the parcel for sale subject. Approximately 0.79 hectares of the site will be retained by the City to preserve the existing sports field and a field house will be constructed to support programming on that field. Staff is recommending that this property be transferred to the OCLDC to manage the disposal and guide the redevelopment of this parcel. Such action will respond to the financial, social and environmental pillars that guide the activities of the OCLDC.

Lastly, staff is seeking Council approval to declare the parcel at 2500 St. Laurent Boulevard as surplus to City requirements. The subject property is 1.1615 hectares (2.87 ac.) of vacant land situated in the Ottawa Business Park. In 1988, the former City of Ottawa sold the subject property to MDS Aero Support Corporation, In Trust. Following MDS Aero Support Corporation’s failure to commence construction on the subject site within the required time frames, the subject site was sold to Loblaw 5

Properties Limited. With that sale, a “build or buy-back” covenant was also registered on title and required Loblaw Properties to build on the subject lands by June 2006. During its ownership, Loblaw Properties, applied to change the Official Plan designation and zoning of the parcel. The Official plan designation was changed from Employment Area to General Urban Area and the zoning was changed from Industrial Business Park - IP F(1.0) and Employment Centre - CE[360] to General Commercial - CG13 H[12.0] to permit development of a Loblaws retail food store. City Council did not support the changes but Loblaw Properties were successful in appealing the decision to the OMB. Over the years, a number of extensions were granted to this “build by” date, however Loblaw Properties was never able to satisfy this covenant. In 2011, Council decided that no further extensions were to be granted and the “buy-back” clause was invoked and the City acquired the property.

Staff is recommending that the parcel be transferred to the OCLDC to restore the Official Plan designation of the lands to Employment Area, to place restrictive covenants on title prior to sale limiting the site its original intended use as an employment area, to ensure that any future purchaser is not able to change the OP designation or zoning and erode the parcels original function, to ensure the Design Guidelines for the Ottawa Business Park are respected, and to attract targeted development/industries and stimulate desirable employment.

SOMMAIRE

L’objectif du présent rapport est d’obtenir l’approbation du Conseil pour qu’il autorise la SATCO à participer à la planification et à l’aménagement de terrains dont la Ville est propriétaire, situés dans le plan conceptuel de Kanata Ouest (KWCP); qu’il désigne les parcelles de terrains visés comme excédentaires par rapport aux besoins de la Ville; et qu’il autorise le personnel à transférer ces parcelles visées à la SATCO pour réaménagement ou cession futurs.

Le Kanata West landowner’s Owners Group (groupe des propriétaires fonciers de Kanata-Ouest) a été formé afin de faire avancer la planification conceptuelle de 550 hectares (1 360 acres) de biens-fonds pour aménagement futur des terrains situés dans le plan conceptuel de Kanata-Ouest, qui chevauchent l’autoroute 417 autour du Centre Canadian Tire, s’étendent au sud jusqu’au chemin Hazeldean et au nord jusqu’à la rivière Carp, dans le quartier Stittsville. La Ville détient environ 30 hectares (73 acres), qui incluent la cour des travaux publics de Maple Grove ainsi que le 5731, chemin Hazeldean. Dans la recommandation 1, on demande l’approbation pour que la 6

SATCO participe, au nom de la Ville, aux réunions du groupe de propriétaires de Kanata-Ouest, afin de veiller à ce que les possibilités de planification et d’aménagement futures pour les terrains à aménager qui sont propriété de la Ville soient exploitées à leur plein potentiel. Ultimement, si les terrains devaient être cédés, il faudrait obtenir l’approbation du Comité et du Conseil.

Dans les recommandations 2 et 3 du présent rapport, on demande au Conseil qu’il déclare excédentaires, par rapport aux besoins de la Ville, les parcelles de terrain suivantes : 5731, chemin Hazeldean, 1770, chemin Heatherington, 3071, promenade Riverside et 2500 St-Laurent.

Le terrain situé au 5731, chemin Hazeldean est une parcelle de 4.5 hectares (11 acres) entourée par des projets d’aménagement pour le commerce au détail en cours ou futurs à l’est et à l’ouest. Une zone naturelle urbaine (UNA 185) qui fait partie du ruisseau Poole, traverse le terrain au nord. Une modification au zonage proposée par la Ville pour tous les biens-fonds situés le long des artères principales devrait permettre de changer le zonage actuel DR – zone d’aménagement futur, en sous-zone d’artère principale AM7. Cette zone permettra un grand éventail d’utilisations, notamment des magasins de détail, des utilisations commerciales de services, des bureaux, des utilisations résidentielles et institutionnelles, dans des bâtiments polyvalents ou côte à côte dans des bâtiments. Le personnel recommande le transfert de cette parcelle à la SATCO en raison de son emplacement stratégique dans le Plan conceptuel de Kanata- Ouest et afin d’assurer la protection de la zone tampon du ruisseau contre tout aménagement futur.

Le terrain situé au 1770, chemin Heatherington a une superficie d’environ 3,2 hectares (8 acres) dans le quartier Gloucester-Southgate. Cette ancienne cour des travaux publics a été mise hors service en 2012. Les travaux d’assainissement du site sont en cours afin d’éliminer les conséquences du sel et de l’essence qui imprègnent le sol en conséquence des activités précédentes. Il faudra obtenir le dossier de l’état du site avant sa vente. Une demande de modification de zonage sera déposée pour modifier le zonage IG1 en une zone de catégorie résidentielle afin de permettre un aménagement résidentiel et un jardin communautaire pour lequel la collectivité locale a exprimé son intérêt. Avant la préparation de la demande, la SATCO va amorcer un processus de Demande d’expression d’intérêt afin de définir les modalités d’une future utilisation résidentielle intercalaire du site. Une zone d’environ 0,16 sera réservée pour le jardin communautaire avant la vente des terrains à aménager. Le personnel recommande le transfert de cette parcelle à la SATCO afin de garantir l’aménagement du jardin 7 communautaire et l’achèvement de l’assainissement du site et de favoriser l’aménagement d’une zone résidentielle intercalaire appropriée du site.

On demande également au Conseil de déclarer excédentaire par rapport aux besoins de la Ville l’ancienne école Bayview, située au 3071, promenade Riverside dans le quartier Rivière. En 2007, le Conseil a demandé au personnel d’acquérir cette école et de lui fournir un plan de réaménagement et des recommandations de financement. La Ville a acheté cette propriété de 4 hectares (10 acres) de la SATCO pour la somme de 8 090 000 dollars. L'acquisition visait en partie à préserver l'espace vert, c'est-à-dire le terrain de sports existant, et à vendre le reste de la propriété aux fins d'aménagement à densités mixtes en appui aux objectifs du Plan officiel de la Ville et afin de compenser le coût d'acquisition de la propriété. En 2011, une parcelle de terrain adjacente de 0,30 hectare (0,64 acre) a été achetée pour faciliter l'accès à la section du site destinée à l'aménagement et pour accroître sa valeur globale en vue de la revente. La parcelle additionnelle a été acquise pour la somme de 475 000 dollars.

Le personnel a mis en œuvre un plan conceptuel de réaménagement provisoire reflétant en gros les commentaires reçus de la population lors de deux séances de visualisation en 2009. Les résultats de ces séances de visualisation furent transmis au Conseil municipal et le plan conceptuel provisoire fut approuvé par celui-ci le 9 décembre 2009. Les principes de projets résidentiels à faible densité contigus à l'aménagement actuel et d'utilisations résidentielles à densité moyenne ou d'utilisation institutionnelle (p. ex. maison de retraite) à l'intérieur du site avec vue sur le terrain de sports ont été appuyés par la collectivité.

Le 9 décembre 2009, le Conseil a aussi demandé au personnel de publier l'annonce visant la vente de la partie de la parcelle de terrain à aménager. Une partie de cette parcelle de terrain, soit environ 0,79 hectare, sera conservée par la Ville pour préserver l'actuel terrain de sports et un pavillon sera construit pour soutenir les activités sur ce terrain. Le personnel recommande que cette propriété soit transférée à la SATCO afin qu'elle en gère la cession et oriente l'aménagement de la parcelle de terrain conservée. Cette mesure correspondra aux piliers financiers, sociaux et environnementaux sur lesquels s'appuient les activités de la SATCO.

En dernier lieu, le personnel veut obtenir l'autorisation du Conseil pour qu’il déclare excédentaire par rapport aux besoin de la Ville, la parcelle de terrain sise au 2500 boul. Saint-Laurent. La propriété en question est un terrain vacant de 1,1615 hectare (2,87 acres) situé dans le parc industriel d'Ottawa. En 1988, l'ancienne Ville d'Ottawa a 8 vendu, en fiducie, la propriété en question à MDS Aero Support Corporation. Suivant le défaut de MDS Aero Support Corporation de lancer la construction sur le terrain dans les délais prescrits, le terrain a été vendu à Loblaw Properties Limited. Au titre de cette vente s'ajoutait une clause de « construction ou rachat » obligeant Loblaw Properties à construire sur le terrain en question avant juin 2006. Alors qu'elle en était propriétaire, l'entreprise Loblaw Properties, a fait une demande pour modifier la désignation et le zonage inscrits au Plan officiel pour cette parcelle de terrain. La désignation du Plan officiel a été changée de zone d'emplois à secteur urbain général et son zonage, de parc d'affaires et industriel (IP F(1.0) et centre d'emplois (CE[360] à commercial général (CG13 H[12.0] pour permettre la construction d'un magasin de vente au détail Loblaws. Le Conseil municipal n'a pas approuvé les modifications, mais Loblaws Properties a eu gain de cause en appel devant la CMO. Au fil des années, les délais prescrits de construction ont été prolongés, toutefois Loblaw Properties n'a jamais pu se conformer à cette clause. En 2011, le Conseil a décidé de refuser toute nouvelle prolongation de délai, la clause de rachat a été invoquée et la Ville a acquis la propriété.

Le personnel recommande que la parcelle de terrain soit transférée à la SATCO afin de : a) restaurer sa désignation au Plan officiel à zone d'emplois; b) grever le titre de clauses limitatives avant vente pour restreindre l'emplacement à son utilisation originale prévue, soit celle de zone d'emplois; c) s'assurer que tout futur acquéreur ne puisse modifier la désignation ou le zonage du Plan officiel et ainsi éroder la fonction originale des parcelles de terrain; d) assurer que les lignes directrices de conception pour le Parc industriel d'Ottawa sont respectées; et e) attirer les projets d'aménagement/industries ciblés et stimuler des emplois souhaitables.

BACKGROUND

Kanata West Lands

The Kanata West Owners Group (KWOG) was formed as a landowner’s group to advance the conceptual planning of 550 hectares (1,360 ac.) of future development land in accordance with the Official Plan Amendments approved by Council in March of 2003 (ACS2003-DEV-POL-0011). The Kanata West Concept Plan (KWCP) area straddles Highway 417 around the Canadian Tire Centre extending south to Hazeldean Road, north along the Carp River to the urban boundary south of Richardson Side Road, in the Stittsville Ward. The City’s land ownership comprises approximately 30 hectares (73 ac.) which is centred on the 25 hectares (62 ac.) Maple Grove Works Yard and includes 5731 Hazeldean Road. (See Document 1: Kanata West Lands) 9

5731 Hazeldean Road

This property of 4.5 hectares (11 ac.), has approximately 140 metres of frontage on Hazeldean Road. Future commercial development is proposed to the east and west of the site, with significant growth in retail commercial businesses along this section of roadway. Poole Creek traverses the northern part of the site, which is also designated as Urban Natural Area (UNA) 185. A City initiated zoning amendment by the Planning Department for all properties located along Arterial Mainstreets is expected to rezone the property to AM7 - Arterial Mainstreet Subzone 7 from the current DR – Development Reserve Zone. The Arterial Mainstreet zone is intended to accommodate a broad range of uses including retail, service commercial, offices, residential and institutional uses in mixed-use buildings or side by side in separate buildings.

1770 Heatherington Road - Former Works Yard

On 23 May 2007, Council approved the long range plan for Facility and Property Rationalization and Consolidation that included the relocation of the city works yard facility at 1770 Heatherington Road (ACS2007-PWS-SOP-0003). This action resulted in the subsequent closure and decommissioning of the works yard located on the subject site in 2012. The site is approximately 3.2 hectares (8.0 ac.) in size and located near the intersection of Walkley and Heatherington Roads in the Gloucester-Southgate Ward. Ongoing environmental analysis identified salt related and petroleum impacts on the site. On-site remediation is currently in process. Staff will also be applying for a Record of Site condition for this parcel prior to its sale. The site is presently zoned IG1 - General Industrial Subzone 1, which permits a wide range of light industrial uses.

3071 Riverside Drive-Former Bayview School

The Ottawa Carleton District School Board (OCDSB) declared the former Bayview School at 3071 Riverside Drive in River Ward as surplus in 2007. On 28 November 2007, Council directed staff to negotiate acquisition and provide Council with a redevelopment plan and funding recommendation. Due diligence of the site revealed underground contamination, and negotiations during the sale of the property resulted in an agreement that the OCDSB would remediate the site. In addition, the City provided $435,000 towards the demolition of the existing school building on the site. The City acquired the 4 hectares (10 ac.) property from the OCDSB for a negotiated purchase price of $8,090,000 in October 2008 (ACS2007-BTS-RPM-0042). The acquisition was in part intended to preserve green space consisting of an existing sports field, with the intent to sell the remainder of the property for mixed density development in support of the objectives of the Official Plan and to offset the acquisition cost for the property. 10

On 9 February 2011, Council approved the acquisition of an adjacent 0.30 hectare (0.64 ac.) parcel of land that would provide improved access to the development area of the site and increase its overall value for resale (ACS2011-CMR-REP-0009). Acquisition of the additional parcel was completed on 15 March 2011 for $475,000.

The overall cost to acquire the two parcels of land and fund the demolition work was $9,000,000.

2500 St. Laurent Boulevard

The subject property is a 1.1615 hectares (2.87 ac.) parcel of vacant land situated in the Ottawa Business Park at the northwest corner of the intersection of Conroy Road and St. Laurent Boulevard as shown on Document 5.

In September 1988 the former City of Ottawa sold the subject property to MDS Aero Support Corporation, In Trust. That sale was subject to several restrictive covenants which were registered on title. The covenants, in summary, required MDS to construct a building within a specified timeframe, failing which the property was to revert to the City of Ottawa. MDS Aero Support Corporation failed to commence construction of a building in accordance with the covenant, and subsequently sold the subject property to a subsidiary of Loblaw Properties Limited. New covenants were instituted by the City of Ottawa as part of this sale, and an extension to the construction period was granted. A “build or buy-back” covenant was registered on title and required Loblaw’s to build on the subject lands by June 2006. Over the years, a number of extensions were granted to this “build by” date.

In 2011, Loblaw Properties indicated that it will not meet the last commence construction date and requested a further extension. However, Council decided that no further extensions were to be granted and the “buy-back” clause was invoked and the City acquired the property (ACS2011-CMR-REP-0032).

During its ownership, Loblaw Properties, applied to change the Official Plan designation and zoning of the parcel. The Official plan designation was changed from Employment Area to General Urban Area and the zoning was changed from Industrial Business Park - IP F(1.0) and Employment Centre - CE[360] to General Commercial - CG13 H[12.0] to permit the property to be developed with a Loblaws retail food store. City Council did not support the change and refused to approve the applications, which were subsequently appealed to the OMB, where Loblaw Properties was successful. Notwithstanding all of these events, Loblaws was unable to fully execute the terms of the original purchase including developing the site for uses that it obtained through the OMB decision. 11

DISCUSSION

Recommendation 1

Since the City owns 30 hectares of land within the Kanata West Concept Plan (KWCP) boundaries, the City has been participating in ownership related discussions surrounding the development of those lands. It is expected that some of the City lands within the KWCP area will be used to accommodate infrastructure needs for future development including a stormwater management facility. The approach within the KWCP area is that any owner, such as the City whose developable land is required for such infrastructure needs will be reimbursed for such lands. Remaining City owned lands will be available for future development and the OCLDC will guide that development and future disposal in the discussions with the Kanata West Owners Group.

Recommendation 1 is seeking approval for the OCLDC to participate on behalf of the City in the Kanata West Owners Group meetings to ensure overall future planning and development opportunities for the City owned development lands are accommodated to the best extent possible. The ultimate disposition of the City’s lands other than 5731 Hazeldean Road would return to Committee and Council for approval.

Recommendations 2 and 3:

The properties located at 5731 Hazeldean Road, 1770 Heatherington Road, 3071 Riverside Drive and 2500 St. Laurent Drive are proposed to be declared surplus to City needs and transferred to the OCLDC for future disposal. Upon sale of the properties by the OCLDC, all proceeds from the sales will be transferred to the City.

The mandate of the OCLDC is to obtain “optimal value” pertaining to both financial and non-financial community value. Such a mandate is based on the four (4) pillars approach that emphasizes a concern for financial, social, environmental and cultural sustainability. By transferring the lands into the OCLDC, the City is able to separate its land ownership/real estate development role from its planning authority role under the Municipal and Planning Acts. This transfer of property to the OCLDC will result in the following additional benefits being achieved:

 Conformity of proposed developments with the policies and goals of the Official Plan and Zoning By-law that cannot be appealed to the Ontario Municipal Board by a purchaser; 12

 Entering into development agreements with third parties that will provide additional corporate control to ensure City’s objectives are met;  Ability to achieve the highest and best use for the property;  Entering into agreements with purchasers to provide a higher standard of urban design and promote incorporation of sustainable measures in buildings.

In addition, the OCLDC can be a vehicle to:

 Attract targeted development/industries;

 Stimulate desirable employment;

 Regenerate neighbourhoods;

 Advance development opportunities, using a proactive approach from funds from the sale of strategic parcels or using Provincial funding; and

 Generate a higher rate of return from sale of lands when sites are rezoned before being offered for sale.

5731 Hazeldean Road

For the site on Hazeldean Road, the OCLDC will work with the City’s Zoning team to ensure that the AM7 – Arterial Mainstreet Subzone 7 to be placed on the site is compatible with the surrounding commercial developments. The OCLDC will continue to monitor abutting developments and work with the owners to ensure that joint access and mutually beneficial agreements are pursued to protect the development of the City parcel.

A site visit with staff from the Natural Systems Unit from Planning and Growth Management was recently completed. The objective of that visit was to identify the exact limits of UNA 185 and to enhance its protection and the Poole Creek buffer prior to the disposal of the subject property. This exercise will also facilitate the zoning amendments that are being undertaken to bring the site into conformity with the Official Plan policies and development context.

Staff is recommending transfer of this parcel to the OCLDC due to its strategic location within the KWCP and to ensure protection of the Pool Creek buffer from future development. These initiatives respond to the financial and environmental pillars of the OCLDC identified previously in this report.

1770 Heatherington Road 13

The subject site is presently zoned IG1 – General Industrial Subzone 1 which permits a wide range of low to moderate impact light industrial uses. A zoning amendment application will be filed to amend the zoning from the IG1 to a residential category zone to accommodate residential development and a community garden. Interest has been expressed by the local community in operating a community garden in the area and staff has worked with Councillor Deans’ office to allocate space on this parcel for such a use. An area of approximately 0.16 hectare will be set aside for the community garden prior to the sale of the development lands. The exact configuration of the garden site is yet to be determined, however, the goal will be to create a layout that maximizes the number of garden plots.

Prior to filing the zoning by-law amendment application, the OCLDC will initiate a Request for Expressions of Interest (REOI) process that will assist and inform staff in determining the type of housing product that can be supported by the market and be compatible with surrounding properties. Information from the REOI process will assist staff in preparing the zoning by-law amendment and the terms of reference that accompany a future Request for Offers. Throughout this process, staff will work with the community and the ward councillor to ensure that the future development is compatible and complementary to the existing fabric of the neighbourhood.

In addition to the REOI process, the future zoning of the subject site and the appropriate development for the subject site will be guided by policies in the Official Plan related to infill development. Specifically:

 Section 2.2.2 (14) - Managing Growth within the Urban Area, which encourages “opportunities for intensification for lands that are no longer viable for the purpose for which they were intended such as older industrial areas and lands where records indicate existing contamination due to previous commercial or industrial use and which can be made suitable for development if cleaned up.

 Section 3.6.1 – This section promotes the development of a full range and choice of housing types to meet the needs of all ages, incomes and life circumstances. This section of the plan also speaks to the urban design and compatibility of infill projects, with emphasis on achieving a balance of housing types and tenures, and ground-oriented multiple housing forms as one means of intensifying within established low-rise residential communities.

In November 2013, as part of the overall Official Plan review, City Council approved an Arterial Main Street designation for Walkley Road. This designation is pending Ministerial approval, however once approved, a zoning by-Law amendment will be used 14 to implement this new designation, potentially in 2014. The implementing zoning bylaw will be confined to lands along Walkley.

Staff is recommending transfer of this parcel to the OCLDC to ensure the development of the community garden, to complete the environmental remediation of the site and to encourage appropriate infill residential development of the site. These initiatives will respond to the social, environmental and financial pillars that drive the OCLDC.

3071 Riverside Drive

The subject property is currently a 4.31 hectare (10.64 ac.) parcel of vacant land consisting of the main parcel purchased in 2007 and the ancillary parcel purchased in 2011. The Council directive from the November 2007 staff report required staff to report back with an appropriate redevelopment plan outlining how the main parcel could be utilized by the City. Potential benefits and opportunities for the City in the acquisition of this property were identified at the time of purchase as follows:

 preserving recreational greenspace through the existing sports field on the site;

 selling a portion of the property for development; and

 funding a field house, with a portion of the sale proceeds.

The 2007 staff report noted that the developable portion of the lands could be offered for sale to a developer to create intensification within the Greenbelt in support of the objectives of the Official Plan and to offset a portion of the acquisition cost for the property. The highest and best use for development was assumed to be low to medium density residential uses subject to rezoning and market conditions.

Staff has undertaken a draft redevelopment concept plan that broadly reflected community input received at two visioning sessions in 2009. The results of those visioning sessions were reported to City Council and the draft concept plan was approved by City Council on 9 December 2009 (ACS2009-CMR-REP-0053). From those visioning sessions, the following principles are identified and addressed in the concept plan:

 Low-density residential uses (one to two storey single detached, semi-detached and townhouses) in pockets abutting existing development in the north and south ends of the site and medium-density residential uses (three to six storey townhouses, stacked units, and mid-rise condominium apartment dwellings) and/or institutional use (e.g. retirement home) in a pocket on the interior of the 15

site overlooking the sports field and abutting the existing institutional uses to the east (school) and south (church);

 A buffer area between the existing development and future uses to be established as a condition of the sale of the residual lands. The buffer will consist of fencing and/or landscaping features incorporated as part of the future development and may be rezoned as such; and

 Sustainable Development Measures incorporated into building designs

On 9 December 2009, Council also directed staff to advertise the development portion of the parcel for sale subject to the above noted development conditions (ACS2009- CMR-REP-0053). Approximately 0.79 hectares of the site will be retained by the City to preserve the existing sports field and a field house will be constructed to support programming on that field. Staff is recommending that this property be transferred to the OCLDC to manage the disposal and guide the redevelopment of this parcel. Such action will respond to the financial, social and environmental pillars that guide the activities of the OCLDC.

2500 St. Laurent Boulevard

The change in designation of these lands by Loblaw Properties from Employment Area to General Urban Area contributed to the overall loss of employment land supply that supports light industrial and research uses as well as high-technology manufacturing and general office park uses. In August 2008, the City of Ottawa’s Economic Development Division, in consultation with the Planning and Growth Management Branch, commissioned a study to inform the City on the viability of its employment land supply to meet the City’s needs to the year 2031. That study assessed Ottawa’s employment land supply and identified land constraints and challenges that Ottawa may have in accommodating future employment growth (ACS2010-ICS-CSS-0006).

Ottawa has lost approximately 35 per cent of its vacant designated employment land supply since 2001 through conversion to other land uses. The City can and should have a key role in enhancing the quality of its employment lands to realize a strong diversified economy. To accommodate potential businesses considering Ottawa as a location, the City needs to maintain a continuous supply of well located, affordable, zoned and serviced employment lands. To this end, REPDO staff has been liaising with Planning and Growth Management staff with respect to 2500 St. Laurent Boulevard to return the site to its former designation and zoning. An official plan amendment to change the designation from General Urban Area to Employment Area, which forms part of the 16 overall City Official Plan update, was approved by Council in November 2013. Similarly, a Zoning By-law amendment is currently in process to change the zoning of the parcel from General Mixed Used Zone – GM [1327] to Business Park Industrial Zone – IP zone.

Staff is recommending that the parcel be transferred to the OCLDC to:

 Market the lands as soon as possible to return the land to its former employment function

 Place a restrictive covenant on title prior to resale prohibiting the use of the lands for retail purposes as per Council directive

 Ensure that any future purchaser is not able to change the OP designation or zoning and erode the parcels original function

 Ensure the Design Guidelines for the Ottawa Business Park are respected

 Attract targeted development/industries; and

 Stimulate desirable employment.

RURAL IMPLICATIONS

There are no rural implications associated with the recommendations.

CONSULTATION

In accordance with policies approved by City Council on 28 March 2012, the availability of the properties was circulated to all City Departments including the Housing Branch, Planning and Infrastructure Parks, Recreation and Culture and City Operations as well as the Ward Councillors to determine if the properties were required for a City mandated program. No interest was expressed from any of the above mentioned groups to retain any of the properties for a City mandated program, including a comment from Parks and Recreation with respect to the Heatherington Road parcel, who indicated that the development of additional parkland in the Heatherington area has not been identified as a high priority and they have no objections to declaring the lot at 1770 Heatherington as surplus.

HOUSING FIRST POLICY

Section 2.5.2 of the Official plan directs the City to make land available for affordable 17 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 residential properties are disposed of without a condition requiring a 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.

COMMENTS BY THE WARD COUNCILLOR(S)

Councillors Shad Qadri, Maria McRae, and Diane Deans are aware of the recommendations in this report.

5731 Hazeldean Road Councillor Qadri concurs with the recommendations in this report related to the above- noted parcel. In addition, Councillor Qadri offered the following comment, “I had concern with the Poole Creek Corridor which Staff have satisfied by increasing the buffer along that corridor. I concur with the sale of this piece of land”.

Additional comments from Councillor Deans with respect to 1770 Heatherington Road and 2500 St. Laurent Boulevard are contained below.

1770 Heatherington Road The Albion-Heatherington & Fairlea community is 37.54 hectares in size and has a population of 4,833 people according to 2011 Census data. The community was developed with a high percentage of subsidized /social housing units and there are virtually no single family homes in this area. The community is densely populated with 128.7 persons/net residential hectare which is 1.5 times the City average of 84.9 persons/net per residential hectare. There are 60.4 units/ net residential hectare which is 1.7 times higher than the City average of 34.9 units/net residential hectare. Many of these units are apartments with no greenspace and many of the existing homes do not have amenity space for personal use.

The City’s Official Plan sets a target of 4.0 hectares of total greenspace for every 1000 residents. Unfortunately, the total greenspace for the Albion-Heatherington & Fairlea 18 community is only at 1.0 hectare per 1000 people (5.65 ha/4,833 people), significantly below the City target for urban areas.

As you have seen from the Census data above, community density is much higher than the City average and the greenspace is much lower than the City targets.

Furthermore, the recent Council adopted Amendment to the Official Plan has re- designated Walkley Road (from Heron Road to Bank St) as an Arterial Mainstreet. This designation will invite further densification in the future as per City of Ottawa policies which could include population increases and building heights of up to 9 storeys. We have not had a discussion with the community about current overall neighbourhood needs and future predicted impacts of growth on the community as a result of the new Arterial Mainstreet designation for Walkley Road.

The Albion/Heatherington & Fairlea community is happy with the concept and inclusion of a community garden on this site. However, at this time, I disagree with the City transferring these lands to the OCLDC. I would like to see the land remain pending the outcome of the Walkley Road Zoning Review and a community visioning exercise for the property at 1770 Heatherington Road.

2500 St. Laurent Boulevard “When Council considered this matter on December 14, 2011, the following motion was carried:

WHEREAS the lands at 2500 St. Laurent form part of the Ottawa Business Park; and

WHEREAS, should the lands be reacquired by the City, as Business Park lands they should be utilized for employment purposes;

THEREFORE BE IT RESOLVED that should the City reacquire the lands at 2500 St. Laurent, that prior to the resale of the lands a restrictive covenant be imposed prohibiting the use of the lands for retail purposes.

There is thus a Council directive to place a restrictive covenant on title. I offer the following clause:

“That the lands shall not be used for retail purposes, as either a principal use or as an accessory use in support of a retail use.”

This covenant would be in addition to any clauses that staff would generally insert in respect of employment lands. 19

Councillor McRae offered the following comments on 3071 Riverside Drive:

3071 Riverside Drive In 2007, the Ottawa-Carleton District School Board declared the property at 3071 Riverside Drive (Bayview School) surplus to the Board’s needs and circulated the first right of refusal to acquire the property to the City under Regulation 445/06 of the Education Act. Councillor McRae worked closely with staff and the Community to facilitate the City’s purchase of land in order to protect and maintain public green space for community use. Subsequent to the City acquiring the land, Councillor McRae held a Community-Visioning Workshop on May 19, 2009 and a Public Open House on September 10, 2009, wherein residents were invited to provide feedback on local community needs and uses for the property. Based on the Community’s input staff developed a Concept Plan and made the following recommendation both of which were subsequently approved by Council:

 Redevelopment to allow for low-density residential uses (one to two storey single detached and semi-detached and townhouses) and/or institutional use (e.g. retirement home). Councillor McRae is aware of the intent to dispose of the residual property for redevelopment subject to the conditions that will ensure redevelopment is in accordance with the Council approved Concept Plan.

LEGAL IMPLICATIONS

There are no legal impediments to the implementation of the recommendations in this report.

Where future rezonings are identified for the ultimate use of any of the parcels identified above, such rezoning applications will be independently assessed through the process under the Planning Act.

RISK MANAGEMENT IMPLICATIONS

There are no risk management implications associated with the recommendations.

FINANCIAL IMPLICATIONS

Approval of the recommendations outlined in this report represents the initial steps in the disposal of the identified properties. Proceeds generated by the OCLDC will be transferred back to the City upon completion of the sales.

ACCESSIBILITY IMPACTS

There are no accessibility implications to implementing the recommendations set out in this report.

ENVIRONMENTAL IMPLICATIONS

There are environmental implications with respect to implementing the recommendations set out in this report.

TECHNOLOGY IMPLICATIONS

There are no technology implications associated with this report.

TERM OF COUNCIL PRIORITIES

The OCLDC was incorporated to further the goals and objectives of City Council and its Strategic Plan. All of the activities of the corporation are guided by the four pillars approach, which is to ensure that development or value being added to the City’s real estate assets contributes to the overall financial, social, environmental and cultural objectives of Council. The recommendations in this report will enable those objectives to be fulfilled thereby assisting in achieving the goals of the City Strategic Plan as established by Council.

SUPPORTING DOCUMENTATION

Document 1 - Kanata West Lands Location Map

Document 2 - 5731Hazeldean Road Location Map

Document 3 -1770 Heatherington Road Location Map

Document 4 - 3071 Riverside Drive Location Map

Document 5 - 2500 St. Laurent Boulevard Location Map

DISPOSITION

Following Council’s approval, staff from Real Estate Partnerships and Development Office and Legal Services Branches will complete the transfer of ownership at the designated time for each of the development parcels identified. With respect to the lands within the Kanata West Concept Plan, as no disposals are contemplated at this 21 time, staff will bring forward a report in the future when plans have been developed for these lands and a marketing plan is in place.

Document 1 – Kanata West Lands Location Map

Document 2 – 5731 Hazeldean Road Location Map

Document 3 – 1770 Heatherington Road Location Map

Document 4 – 3071 Riverside Drive Location Map

Document 5 – 2500 St. Laurent Boulevard – Location Map