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1 Report to Rapport Au: Finance and Economic Development Committee 1 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, [email protected] 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 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 4 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 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. 5 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.
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