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HomeMy WebLinkAboutPSD-086-07 Cl!Jlpn REPORT PLANNING SERVICES Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Report #: PSD-086-07 File #: RE 6.2.7 l~l\).J,~ .' G fJiI- 430--07 By-law #: Date: Monday, June 18, 2007 Subject: OFFER OF COMPENSATION AND NOTICE REQUIRING POSSESSION TO TOM CAUCHON AND CHIGI AGBARU RESPECTING THE EXPROPRIATION OF LANDS FOR BOWMANVILLE WATERFRONT DISTRICT PARK; PART 1 ON PLAN OF EXPROPRIATION DR593102 RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PSD-086-07 be received; 2. THAT an offer of a total of $215,000.00 as the market value of the lands identified as Part 1 on Plan of Expropriation DR593102 50 East Beach Road, Bowmanville, which have been expropriated, be APPROVED; 3. THAT the Director of Planning Services be authorized to send a letter offering Tom Cauchon and Chigweyaru Agbaru immediate payment of the difference between $215,000.00 being the market value of the Owners' land and the amount owed to Scotia Mortgage Corporation, the mortgagee of the land and to deliver a copy of Appraisal Group Inc.'s appraisal as of April 4th, 2007 to them; 4. THAT payment of the amount required by the mortgage to Scotia Realty Corporation to that corporation from the market value of the land of $215,000.00 to discharge the mortgage to Scotia Mortgage Corporation registered as Instrument No. L T1 01 0279 be APPROVED and the Director of Planning Services be authorized to make the payment on behalf of the Municipality; 5. THAT the payment of an additional amount of $10,750.00 to Mr. Cauchon and Ms. Agbaru for 5% of the market value of the land as compensation for the taking of the land which was their residence on the day of taking of the land be APPROVED; and 6. THAT the Director of Planning Services be authorized to advise Mr. Cauchon and Ms. Agbaru that the Municipality of Clarington requires possession of the expropriated land on October 1, 2007. CORPORATION OF THE MUNICIPALITY OF ClARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-0830 REPORT NO.: PSD-086-07 PAGE 2 Submitted by: IL/FL/DJC/df 29 May 2007 D i . Crome, M.C.I.P., R.P.P. Director of Planning Services Reviewed by: c) ~ - ~ 'SIt, anklin Wu, Chief Administrative Officer REPORT NO.: PSD-086-07 PAGE 3 1.0 BACKGROUND 1.1 On February 19, 2007, Report PSD-025-07 was presented to Council recommending that Council pass a by-law approving the expropriation of 50 East Beach Road, Bowmanville owned by Mr. Thomas Cauchon and Ms. Chigweyaru Agbaru, for the purposes of a district park. After having regard for the comments contained within the Report, Council approved the expropriation of the land by By-law 2007-057 at its February 26th, 2007 meeting. 1.2 Report PSD-025-07 also recommended that Council pass a by-law to authorize the Mayor and the Clerk on behalf of the Municipality to execute an expropriation plan and authorize its registration pursuant to subsection 9(1) of the Expro~riations Act. This by- law was also approved as By-law 2007-059 on February 26 h, 2007. The plan of expropriation was registered on title on April 4th, 2007. 1.3 Title to the property was transferred to the Municipality upon the registration of the plan. The owner's rights were converted by law from an ownership right in the land expropriated, to a right to be paid at fair market value for the land. However, the Municipality must comply with Section 25 of the Expropriations Act before it can go into possession of the lands. 1.4 In accordance with the provisions of the Expropriations Act, a Notice of Election was served on the registered owner on May 1st, 2007. The Notice offered the owners the option to have compensation to which they were entitled to, assessed as of: · the date the notice of the Hearing of Necessity was served, if a Hearing was requested; . the date of the registration of the expropriation plan; or . the date on which he was served with the Notice of Expropriation. 1.5 The first appraisal report completed for the Municipality by the Appraisal Group Inc. (AGI) appraised the market value of the land at $185,000.00 to $200,000.00 as of August 16, 2005. The appraiser was requested to provide an update of the fair market value as of the date of the registration of the expropriation plan. AGI's estimate of the fair market value of the land as of April 4th, 2007, is $215,000.00. The increase is due to the increase in market values of comparable properties since 2005. A copy of the original appraisal report and the recent update are on file with the Planning Services Department. 1.6 The Notice of Election was returned on May 22nd, 2007. Mr. Cauchon and Ms. Agbaru have chosen the option to have compensation to which they are entitled assessed as of the date of registration of the expropriation plan. The offer of market value compensation will be $215,000.00. 1.7 Before taking possession of the land subsection 25(1) of the Act requires that the expropriating authority (the Municipality) serve upon the registered owner an offer of an amount equal to the estimated market value of the land and offer immediate payment of the amount of estimated market value. Since the property is encumbered by a REPORT NO.: PSD-086-07 PAGE 4 mortgage to Scotia Mortgage Corporation (Instrument No. L T1 01 0279) under subsection 17(6) of the Expropriations Act the mortgagee is entitled to be paid the amount of outstanding principal and interest plus any bonus out of the market value portion of the compensation. 1.8 In order to determine the amount to which the mortgagee is entitled, a mortgage statement is required. Application has been made for such a statement from the mortgagee. The amount that will be paid to Mr. Cauchon and Ms. Agbaru for the market value portion of the compensation will be $215,000 less the amount required to be paid to the mortgagee, Scotia Mortgage Corporation, to discharge the mortgage as required by the Act. 1.9 Also, since the premises comprises the owners' residence that immediate payment of 5% of the compensation payable in respect of the market value of the land, or $10,750.00, be paid to Mr. Cauchon and Ms. Agbaru. 1.10 The offer of payment of market value compensation must be served within 3 months of the registration of the expropriation plan and at least three months prior to the date on which the Municipality requires possession of the land. It is recommended that the Municipality notify Mr. Cauchon and Ms. Agbaru that the Municipality requires possession of the property on October 1, 2007. 1.11 The Expropriations Act indicates that there are additional expenses beyond the fair market value paid for the property. Compensation will also be payable to the owner for inconvenience and relocation costs, as well as the reasonable legal and appraisal fees related to the expropriation when they are known. 2.0 CONCLUSION 2.1 It is recommended that the Director of Planning Services be authorized to offer immediate payment of a total of $215,000.00 as fair market compensation for the land and to require possession of the land on October 1, 2007. 2.2 Mr. Cauchon and Ms. Agbaru are free to accept the offer of payment of the market value compensation without prejudice to their rights under the Act in respect of determination of further compensation by negotiation through the Board of Negotiation or by arbitration by the Ontario Municipal Board. In either case, the Municipality will be credited for the amount which has been paid to Mr. Cauchon and Ms. Agbaru.