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HomeMy WebLinkAboutLEG 11-21 Report to Council Report Number: LEG 11-21 Date: June 28, 2021 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: TRCA – Waterfront Trail MOU -File: L-4100-007-21 Recommendation: 1. That the Memorandum of Understanding (“MOU”) between the City of Pickering and the Toronto and Region Conservation Authority (“TRCA”) (Attachment No. 1) be approved, subject to: (i) obtaining the necessary approvals of the Ministry of the Environment, Conservation and Parks; and (ii) minor revisions satisfactory to the Director, Corporate Services & City Solicitor, the Director, Engineering Services and the Chief Administrative Officer; 2. That the Chief Administrative Officer be authorized to execute the MOU; 3. That, as contemplated by the MOU, City staff be directed to negotiate agreements of purchase and sale for the acquisition of: (i) the lands municipally known as 501 Marksbury Road from Zoltan and Barbara Szinessy and (ii) the lands municipally known as 520 West Shore Boulevard from Marshall Homes (Copperfield) Ltd., and that those agreements of purchase and sale be subject to further Council approval; 4. That, as contemplated by the MOU, City staff be directed to: (i) determine, in collaboration with TRCA, the dimensions of the lands not required for the waterfront trail and (ii) negotiate an agreement, subject to further Council approval, to sell those lands for an amount equal to their fair market value; 5. That the Director, Finance & Treasurer be authorized to finance the total net project costs of $2,728,011.00 by a transfer from the Parkland Reserve Fund; 6. That the appropriate City of Pickering officials be authorized to take the actions necessary to implement the recommendations in this report. Executive Summary: At the present time, the waterfront trail is interrupted between West Shore Boulevard and Marksbury Road, where users of the trail are forced to walk along paved roadways. Staff at the City and the Toronto and Region Conservation Authority (“TRCA”) have collaborated on a proposal that will finally enable the waterfront trail to be connected between West Shore Boulevard and Marksbury Road along the lake shore. This proposal is set out in a Memorandum of Understanding (“MOU”) which is Attachment No. 1 to this report. The waterfront trail at West Shore Boulevard is shown in Schedule “A” of the MOU (page 5 of Attachment No. 1). The proposal is for the City to acquire 501 Marksbury Road and 520 West Shore Boulevard, and to construct a new section of the trail across the south portion of those LEG 11-21 June 28, 2021 Subject: TRCA – Waterfront Trail MOU Page 2 lands at a future date. The north portion of those lands will then be sold to reduce the cost of the land acquisition. The portion of those lands required for the new section of the Waterfront Trail will be transferred to TRCA and become subject to the existing Management Agreement between TRCA and the City . TRCA shall sell its lands at 805/809 St. Martins Drive and contribute the sale proceeds to further reduce (and possibly eliminate) the City’s acquisition costs. It must be noted that TRCA is obligated to obtain the approval of the Ministry of the Environment, Conservation and Parks (“MECP”) to both its disposition of 805/809 St. Martins Drive and the contribution of all its sale proceeds to the City. The design and construction of the trail section would be at the City’s expense. Financial Implications: 1. Estimated Project Cost Summary 501 Marksbury 520 West Rd Shore Blvd. Total Purchase Price 1,129,800.00 1,506,000.00 2,635,800.00 Land Transfer Tax 19,071.00 26,595.00 45,666.00 Registration Fees 77.62 77.62 155.24 Subtotal 1,148,948.62 1,532,672.62 2,681,621.24 HST (13%) on Purchase Price only 146,874.00 195,780.00 342,654.00 Gross Project Costs-rounded 1,295,822.00 1,728,453.00 3,024,275.00 HST Rebate (11.24%) on Purchase Price only (126,990.00) (169,274.00) (296,264.00) Net Project Costs 1,168,832.00 1,559,179.00 2,728,011.00 2. Approved Source of Funds -2021 Parks Capital Budget Approved Account Source of Funds Budget Required Parkland Reserve 5780.2103.6265 Fund 3,100,000.00 2,728,011.00 Project cost under/(over) approved funds by 371,989.00 LEG 11-21 June 28, 2021 Subject: TRCA – Waterfront Trail MOU Page 3 These costs will be reduced by selling the portion of these lands not required for the new trail section. As more particularly set out below, the unused portion of the lands will be appraised and sold for fair market value. These costs will be further reduced (possibly to zero) by the TRCA’s contribution of the proceeds of its sale of other lands it owns at 805/809 St. Martins Drive. Discussion: City and TRCA staff have collaborated on a proposal that will enable the waterfront trail to be constructed along the waterfront, between Marksbury Road and West Shore Boulevard. This proposal is set out in the MOU (Attachment No. 2 to this report). The MOU sets out a series of transactions which will result in lands becoming available, enabling the City to complete the connection of the waterfront trail. As shown on Attachment No. 1, the new section of the waterfront trail will be built on portions of the properties at 501 Marksbury Road and 520 West Shore Boulevard at a future time. Budgeting, design and construction of the new trail section will be subject to a future Council approval. Pursuant to the MOU, the City will acquire: (i) 501 Marksbury Road from Zoltan and Barbara Szinessy for a price of $1,129,800 and (ii) 520 West Shore Boulevard from Marshall Homes (Copperfield) Ltd. for a price of $1,506,000. The price for each of these properties has been confirmed to be fair market value, pursuant to Appraisal Reports obtained from D. Bottero & Associates, Certified Property Appraisers. The northern portion of 501 Marksbury Road and 520 West Shore Boulevard is not required to accommodate the new section of trail. The northern portion of the lands, together with up to 450 square meters of adjacent land to be contributed at no cost by TRCA, is shown in Attachment No. 1 and is referred to in the MOU as the “Surplus Lands”. The Surplus Lands will be sold for a price equal to their fair market value. This will defray the City’s purchase costs. The exact size and shape of the Surplus Lands will be determined based on the requirements for the adjacent trail. City staff observe that vacant building lots in Pickering have sold for approximately $500,000. To confirm the fair market value of the Surplus Lands, City staff will obtain an Appraisal Report from a Certified Property Appraisal firm. Marshall Homes (Copperfield) Ltd. (the vendor of 520 West Shore Boulevard) is interested in purchasing the Surplus Lands, and the MOU provides that Marshall Homes will be given a right of first refusal to purchase the Surplus Lands. TRCA owns other lands in Pickering municipally known as 805/809 St. Martins Drive (“805/809 St. Martins”). As you may recall, the City funded 52.6% of the cost of TRCA’s original acquisition of 805/809 St. Martins. The remaining 47.4% of TRCA’s original acquisition cost was funded by the Ministry of Natural Resources and Forestry. The MOU provides that 805/809 St. Martins will be sold by TRCA, and the proceeds of sale will be paid towards the City’s costs of purchasing 501 Marksbury Road and 520 West Shore Boulevard. The approval of the Ministry of the Environment, Conservation and Parks is required for both TRCA’s disposal of 805/809 St. Martins and for the contribution to the City of the percentage of the price originally paid by the MNRF. Because of this, City staff advise that approval of the MOU should be conditional on obtaining the required approvals from the Ministry of the Environment, Conservation and Parks. LEG 11-21 June 28, 2021 Subject: TRCA – Waterfront Trail MOU Page 4 Finally, it must be noted that if the City’s net land acquisition cost is greater than the amount of the sale proceeds obtained from 805/809 St. Martins, then TRCA will contribute a further amount equal to 50% of the shortfall. If the City’s net land acquisition cost is less than the amount of the sale proceeds obtained from 805/809 St. Martins, then the TRCA is required to apply its excess sale proceeds toward the costs of future conservation initiatives in Pickering including, but not limited to, shoreline protection measures in the vicinity of the new waterfront trail section. The MOU will enable the connection of the waterfront trail between Marksbury Road and West Shore Boulevard in the future. The trail connection is an important project that will contribute materially to the wellbeing of residents and of all trail users. The MOU sets out contributions, financial and otherwise, from both the City and TRCA which demonstrate their joint and sustained commitment to this project. Staff therefore recommend that Council approve the MOU. Attachments: 1. Draft MOU Prepared/Endorsed By: Original Signed By: Paul Bigioni Director, Corporate Services & City Solicitor PB:ks Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer Attachment 1 to Report LEG 11-21 The Corporation of the City of Pickering (the “City”) and Toronto and Region Conservation Authority (“TRCA”) MEMORANDUM OF UNDERSTANDING (“MOU”) WHEREAS the City and TRCA wish to collaborate for the purpose of constructing a future section of the Waterfront Trail as shown on the Plan attached hereto as Schedule “A”; AND WHEREAS the local portion of the Waterfront Trail within the City of Pickering is shown on the location map attached hereto as Schedule “B”; AND WHEREAS the future section of the Waterfront Trail is to be constructed along portions of the real properties municipally known as 501 Marksbury Road, Pickering [PIN 26311-0822] (“501 Marksbury”) and 520 West Shore Boulevard, Pickering [PIN 26311-0832](“520 West Shore”); AND WHEREAS TRCA is the owner of the real properties municipally known as 805 St. Martins Drive, Pickering (PIN 26319-0590) and 809 St. Martins Drive, Pickering (PIN 26319-0590) (collectively known as “805/809 St. Martins”); AND WHEREAS dispositions of 805/809 St. Martins are contingent on approval from the Ministry of the Environment, Conservation and Parks (“MECP”); AND WHEREAS 805/809 St. Martins was originally purchased by TRCA to serve as parkland, but has never been developed as such; AND WHEREAS TRCA may endeavor to improve 805/809 St. Martins to maximize the value prior to sale; AND WHEREAS the City contributed 52.6 percent of the original purchase cost of 805/809 St. Martins, and MNRF contributed the remaining 47.4 percent; NOW THEREFORE the City and TRCA agree as follows: 1. The Recitals above are true and accurate and form a part of this MOU. 2. The City shall acquire 501 Marksbury from Zoltan Szinessy and Barbara Szinessy for the amount of $1,129,800. The purchase of 501 Marksbury shall be completed no later than December 31, 2021. 3. The City shall acquire 520 West Shore from Marshall Homes (Copperfield) Ltd. for the amount of $1,506,000. The purchase of 520 West Shore shall be completed no later than December 31, 2021. 4. The City shall up to 450sqm of lands, more or less, from TRCA for nominal consideration as identified on Schedule “A.” 5. The City shall demolish all buildings located on 501 Marksbury and 520 West Shore. 6. The City shall combine portions of the lands included in paragraphs 2, 3, & 4 to produce a marketable title for a residential building lot, as shown in Schedule “A” (hereinafter referred to as the “Surplus Lot”). 7. The City shall sell the Surplus Lot for an amount equal to its fair market value. 8. The City shall grant to Marshall Homes (Copperfield) Inc. a Right of First Refusal to purchase the Surplus Lot for an amount equal to its fair market value. 9. Upon complete payment as envisioned in this MOU (including paragraphs 2, 3 and 13), the remainder of the lands included in paragraphs 2 and 3 will be transferred to TRCA for nominal consideration. These lands are to be included in the Management Agreement between the City and TRCA for management by the City. Said lands are envisioned to accommodate construction of the new section of the Waterfront Trail by the City. The new section of trail shall be constructed at a time to be determined by the City through the Management Agreement, and in accordance with a design and specifications mutually agreeable to the City and TRCA. 10. Total cost of acquisition of properties pursuant to paragraphs 2 and 3 will be reduced by the revenue from the sale of the Surplus Lot. The acquisition balance remaining is herein referred to as the “Residual Amount”. 11. TRCA shall sell 805/809 St. Martins Drive as soon as reasonably possible for an amount equal to its fair market value. TRCA will use best efforts to sell 805/809 St. Martins to be completed by December 31, 2022. TRCA may extend this timeframe by one additional year at their sole option, upon 30 days written notice. 12. In recognition that TRCA dispositions are conditional on approval from MECP, TRCA will use best efforts to obtain consent of the disposition of 805/809 St. Martins. 13. Conditional on approval from the Ministry of the Environment, Conservation and Parks for the use of disposition funds upon completion of the sale of 805/809 St. Martins, and as soon as reasonably possible, TRCA shall pay 100 percent of the sale proceeds to the City to be credited against the Residual Amount. 14. In the event the sale of 805/809 St. Martins does not exceed the Residual Amount, then TRCA shall pay the City an additional amount equal to 50 percent of the difference. Payment of this additional amount by TRCA shall be made, upon the later of: (a) completion of the City’s purchase of properties in paragraphs 2 and 3; and (b) completion of TRCA’s sale of 805/809 St. Martins. 15. In the event the sale of 805/809 St. Martins exceeds the Residual Amount, then TRCA shall retain the excess for use for future conservation initiatives within the City of Pickering, including but not limited to shoreline treatment along the waterfront as depicted in Schedule “B”. 16. This MOU is binding on the City only upon its execution by the City and its approval by Pickering’s Council. This MOU is binding on TRCA only upon its execution by TRCA and its approval by TRCA’s Board. 17. Upon approval of this MOU by both the City and TRCA, all parties hereto shall negotiate in good faith and promptly execute all agreements of purchase and sale and other documents and instruments necessary to give effect to the transactions contemplated herein. [signature pages to follow] The Corporation of the City of Pickering David Ryan, Mayor Susan Cassel, City Clerk Toronto and Region Conservation Authority Per: Jennifer Innis, Chair Per: John MacKenzie, Chief Executive Officer Schedule “A” Page 5 of 6 Schedule “B” Page 6 of 6