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Report
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Report To: General Government Committee
Date of Meeting: January 23, 2017
Report Number: EGD -002-17 Resolution:
File Number: By-law Number:
Report Subject: Road Closure and Conveyance - Parts 2 and 4, Plan 10R-3505, Conc.
BF, Lot 23, (Darlington)
Recommendations:
1. That Report EGD -002-17 be received;
2. That Part 2 on Plan 10R-3505 (see Attachment 1) be conveyed to 1816541 Ontario
Limited for fair market value of the portion that can be developed;
3. That Part 4 on Plan 10R-3505 be closed and conveyed to 1816541 Ontario Limited for
fair market value;
4. That the applicant pay all applicable costs including HST and fees for the preparation
and registration of the transfers;
5. That Council approve the draft By-law attached to Report EGD -002-17 (see Attachment
2) to convey Part 2 and close and convey Part 4 on Plan 10R-3505; and
6. That all interested parties listed in Report EGD -002-17 and any delegations be advised
of Council's decision by the Department.
Municipality of Clarington
Report EGD- 7 -1
Report Overview
Page 2
This report recommends that to facilitate the development of a commercial business at 570
Rundle Rd. in former Darlington Township that one unopened road allowance be closed and
conveyed and that one road allowance be conveyed (as it was previously closed at the time
that Hwy. 401 was built) to the adjacent property owner. These road allowances are not
required for the Municipal road network.
1. Background
Currently, the Municipality owns two unopened road allowances which were created by a
plan of subdivision in 1915 (Plan 97). That development never moved forward. The new
owner of the adjacent lands intends to develop a commercial business and, initially,
applied to the Municipality to acquire the two unopened road allowances, referred to as
Parts 2 and 4, Plan 10R-3505, to complete the developable block. Attachment 1 depicts
the land identified as 570 Rundle Road and illustrates the two parts of the road
allowance: one of which is proposed to be conveyed (since it was closed many years ago
when Highway 401 was constructed) and one of which is proposed to be closed and
conveyed.
The Municipality's Policy for Road Closure and the Municipal Act, 2001 set out the
process for closing a Municipal Road.
2. Policy for Road Closure
The owner of the adjacent lands has now applied to the Municipality to close and/or
convey the subject road allowances.
The Municipality's Road Closure Policy outlines several steps which are to be taken prior
to Council passing a by-law to close a road allowance:
x The Engineering Services Department must circulate a notice of intent to close the
road allowance to "all appropriate parties and agencies".
x Staff undertake an internal circulation to the Mayor, CAO and all department heads
identifying the road allowances intended to be closed.
x Staff undertake an outside circulation to all utilities, Conservation Authority, the
Region of Durham and provincial and federal agencies requesting that they identify
any objections or required easements.
Municipality of Clarington
Resort EGD- 7 -1
Paae 3
Since the receipt of the Application to Close and Convey the unopened road allowances
from the owner of 570 Rundle Road in November of last year, staff have circulated a
notice of intent to close the road allowances to all parties listed. No objection was
received from any individual, agency or utility.
The Policy further stipulates that the subject road allowance be appraised by a Certified
Appraiser retained by the Municipality and that the applicant pay the appraised value of
the lands. In this case the adjacent lands were recently purchased by the applicant in an
arm's length transaction, and the land transfer took place in October of 2016.
Considering that the land surrounding the unopened road allowances was just sold in
October of 2016 Staff feel that the price per acre is very representative of fair market
value. As such Staff recommend that the typically required appraisal is not necessary
and the per acre price of $73,943 be used in establishing the value of the road
allowances.
3. Value
The lands known as 570 Rundle Road are 14.2 acres in area. The two unopened road
allowances which are currently owned by the Municipality are Part 2 on Registered Plan
1 OR -3505 (0.414 acres) and Part 4 on Plan 1 OR -3505 (1.0 acre). The applicant wishes to
purchase Part 4 for fair market value, but the Ministry of Transportation restrictions will
not permit the applicant to utilize over ninety percent of Part 2 for any meaningful purpose
(i.e. no entrances, driveways, structures, utilities, stormwater management ponds, etc.).
The applicant is, therefore, not interested in purchasing Part 2.
The 14.2 acre property was purchased by the current owner for $1,050,000 ($73,943 per
acre) in an arm's length transaction in October 2016. Staff recommend that this rate be
applied to Part 4. Since Part 2 is of no use to the Municipality (and less than 10% is of
use to the developer), staff recommend that this parcel be conveyed to the applicant at a
reduced rate equal to the fair market value of the developable portion.
Staff recommend that the total purchase price is $76,605 for both Part 2 and Part 4.
4. Municipal Act, 2001
The Municipal Act, 2001 governs Council's right to close a road allowance. Sect. 34(1) -
Highway Closing Procedures simply states "a by-law permanently closing a highway does
not take effect until a certified copy of the by-law is registered in the proper land registry
office." The Municipal Act, 2001 does not stipulate any further requirements in the event
that Council wishes to close a highway unless the road allowance abuts Crown lands
(which is not the case in this instance).
5. Concurrence
This report has been reviewed by the Municipal Solicitor who concurs with the
recommendations.
Municipality of Clarington
Resort EGD- 7 -1
6. Conclusion
Paae 4
The two unopened road allowances known as Part 2 and Part 4 on Plan 10R-3505 will
not be required to be part of the future Municipal road network. The owner of the adjacent
lands wishes to acquire Part 4 at fair market value in order to consolidate a developable
block which is proposed for a future commercial business, and staff recommend that Part
2 be conveyed to the applicant at a price equal to the fair market value of the developable
portion. To this end, the owner has made application to close and convey one road
allowance and simply convey the other road allowance. If the value is established using
the above recommended method, no appraisal costs will be incurred. Further, the
existing registered plan is sufficient to effect the transfer.
Correspondingly, staff respectfully recommend that Part 2 on Plan 10R-3505 be
conveyed and Part 4 on Plan 10R-3505 be closed and conveyed to 1816451 Ontario
Limited for a total of $76,605 plus related costs (e.g. registration and HST).
7. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Submitted by:
Anthony Cannella,
Director of Engineering Services
Reviewed by:
Curry Clifford, MPA, CMO
Interim CAO
Staff Contact: Leslie J. Benson, Manager, Development Engineering and Traffic, 905-623-
3379 ext. 2304 or Ibenson@clarington.net
Attachment 1 - Aerial Plan
Attachment 2 - By-law 2017-xxx
Interested Parties:
1816451 Ontario Limited
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DATE:
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Jan. 23, 2017
REPORT EGD -002-17
ATTACHMENT No. 1
FILE NAME:
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KEY MAP
Rundle Rd Close Convey.mxd
J:\Engineering\Attachments\Attachments Post ESRI Upgrade\Rundle Rd CloseConvey.mxd
Municipality of Clarington
Attachment 2 to
EGD -002-17
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW NO. 2017 -XXX
Being a by-law to authorize the closure and conveyance of a road
allowance and the conveyance of a road allowance.
WHEREAS the Council of The Corporation of the Municipality of Clarington has
approved the recommendations of Report EGD -002-17, and deems it desirable to
pass this by-law; and
NOW THEREFORE be it enacted and it is hereby enacted as a by-law of the
Corporation of the Municipality of Clarington as follows:
1. That the property described as part of the unopened road allowances
created by Registered Plan 97, being Part of Lot 23, Broken Front
Concession, now Part 4 on Plan 10R-3505, (in the former Township of
Darlington), now in the Municipality of Clarington, is hereby closed; and
2. That the Municipal Solicitor be authorized to take all action necessary to
effect the transfer of Part 2 and Part 4 on Plan 10R-3505.
BY-LAW passed this day of February, 2017.
Adrian Foster, Mayor
C. Anne Greentree, Municipal Clerk