HomeMy WebLinkAbout96-149 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW 96-149
being a by-law to authorize the entering
into of an agreement to amend the Subdivision
Agreement between West Bowmanville Developments
Limited, Martin Road Holdings Ltd. , certain
mortgagees, and the Corporation of the former Town
of Newcastle for the development of Plan of
Subdivision 18T-88046, as authorized by
By-law 91-100
WHEREAS at its meeting of April 24, 1995, the Council of the
Municipality of Clarington approved the recommendations contained
in Report ADMIN-14-96 which recommended a recommendation to enter
into an agreement to amend the subdivision agreement between the
Municipality, West Bowmanville Developments Limited and Martin
Road Holdings Ltd. , the owners of Plan of Subdivision 18T-88046,
and passed By-law 95-61 accordingly;
AND WHEREAS at its meeting of July 29, 1996, the Council of the
Municipality of Clarington approved the recommendations contained
in Addendum to Report ADMIN-14-96 including the making of further
amendments to the aforesaid Subdivision Agreement .
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY
OF CLARINGTON HEREBY ENACTS AS FOLLOWS:
1 . THAT the Mayor and Clerk are hereby authorized to execute on
behalf of the Corporation of the Municipality of Clarington,
and seal with the Corporate Seal, an agreement to amend the
Subdivision Agreement between the former Town of Newcastle,
Martin Road Holdings Ltd. , and West Bowmanville Developments
Ltd. (as owner) , and Robert Louis Stevens and the Royal Bank
of Canada (as mortgagee) made as of September 5, 1991, to
implement the recommendations contained in Report
ADMIN-14-95 as amended by the recommendations contained in
Addendum to Report ADMIN-14 . 95 .
2 . THAT the agreement attached hereto as Schedule "A" forms
part of this by-law.
By-law read a first and second time this 12th day of August 1996
By-law read a third time and finally passed this 12th day of
August 1996
MAYOR
D E P L E R K
DYE 6 DURHAM CO.INC.-Form N0.985
Amended NOV.1992
� y Document General'
Ontario Form 4-Land Registration Reform Act D
r
(1) Registry ❑ Land Titles n (2) Page 1 of as pages
CD C"D (3)Property Block Property
N LLJ LO Identifler(s) AditionaC
Ll7 Schedule ❑
(4)Nature of Document
tom-
CL_
NOTICE OF AGREEMENT AMENDING SUBDIVISION AGREEMENT
(Section 71 of the Act)
} t'- °D (5)Consideration
i.- `_
J r
° � Not Applicable Dollars$
141 ---I P` o
W (6)Description
W C>
LL As described in Schedule "AA' attached.
° Land Titles Division of Durham (No. 40)
New Property Identifiers
Additional:
See ❑
Schedule
xecutions
(7)This (a) Redescription (b)Schedule for:
Additional: Document New Easement 1 Additional
See hedule ❑ Contains: Plan/Sketch ❑ 1 Description F1 Parties Other ❑
(8)This Document provides as follows:
The Corporation of the Municipality of Clarington has an unregistered right, interest or equity in the lan
registered in the name of MARTIN ROAD HOLDINGS LIMITED and WEST BOWMANVI
DEVELOPMENTS LTD. as Parcel 15-6, Section Con. 1 (Darlington), Parcel 15-7, Section Con.
(Darlingto , Parcels 12-1, 45-1 and 109-1, Sectioln
4OM-1686, Parcels 12-1, 13-1, 14-1 and 28-1± ction Plan 40M-1796, Parcel
32-1, 33-1, 34-1, 35-1, 36-1, 37-1, 39-1, 40-1, 42-1, 43-1, 45-1, 46-1, 47-1, 48-1
49-1, 50-1, 51-1, 52-1, 53-1, 54-1, 55-1, 56-1, 57-1, 58-1, 59-1, 60-1, 61-1, 62-1, 63-1, 64-1, 65-1, 66-1, 67-1
68-1, 69-1, 70-1, 71-1, 72-1, 73-1, 74-1, 75-1, 76-1, 77-1, 79-1, 80-1, 81-1, 82-1, 83-1, 84-1, 85-1, 86-1, 87-1
O, 91-1, 92-1, 93-1 and 101-1 Section Plan 40M-1816 and hereby apply under Section 7j of the Lan
Titles Act for the entry of a Notice of Agreement Amending Subdivision Agreement for the said Parcels
Continued on Schedule ❑
(9)This Document relates to Instrument number(s)
LT566837
(10) Party(les) (Set out Status or Interest)
Name(s) Signature(s) Date of Signature
Y M D
THE CORPORATION OF THE 7 _ 1996 0912
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I for Sice 40 Temperance Street, Bowmanville, Ontario, L1C 3A6
(12)Party(les) (Set out Status or Interest)
Name(s) Signature(s) Dlate of Signature
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(13)Address
for Service
(14) Municipal Address of Property (15) Document Prepared by: } Fees and Tax
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0 Registration Fee
Nicholas T. Macos
130 Adelaide Street West D
Not Assigned Suite 2600, Toronto, Ontario a
M511 3P5 LL
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THIS SECOND SUBDIVISION AMENDING AGREEMENT made as of this
12th day of August, 1996.
BETWEEN:
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
(hereinafter called the "Municipality")
OF THE FIRST PART
- and -
MARTIN ROAD HOLDINGS LIMITED and
WEST BOWMANVII.LE DEVELOPMENTS LTD.
(hereinafter called the "Owner")
OF THE SECOND PART
- and -
ROYAL BANK OF CANADA
(hereinafter called the "Mortgagee")
OF THE THIRD PART
WHEREAS:
A. The Owner owns in fee simple certain lands and premises in the Municipality of
Clarington which are more particularly described in Schedule "AA" hereto (the "Lands").
B. The Owner, the Municipality and the Mortgagee made an agreement (the
"Subdivision Agreement") as of September 5, 1991 applicable to the lands and premises
described therein (the "Original Lands") as a condition of approval of draft Plan of Subdivision
18T-86046-Aspen Heights under Section 51 of the Planning Act, R.S.O. 1990, c.P.13. Notice
of the Subdivision Agreement was registered in the Land Registry Office for the Land Titles
Division of Durham (No. 40) (the "Land Registry Office") as Instrument No. LT566837.
C. Paragraph 5.29(1)of the Subdivision Agreement requires the Owner to commence
construction of the "CPR Underpass Work") (as therein defined) no later than the day on which
an application is made for a building permit for a building which is or includes the 661st
dwelling unit proposed to be constructed on the Original Lands and to complete the same in
accordance with the Subdivision Agreement.
+ s
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Second Subdivision Amending Agreement Page A
D. Paragraph 5.29(6) of the Subdivision Agreement requires the Owner to deposit
cash or an irrevocable and unconditional letter of credit issued by a bank listed in Schedule I or
II of the Bank Act, R.S.C. 1985, c.B.l as a "Security Deposit" (as defined therein) for
performance by the Owner of its covenant to construct and maintain the CPR Underpass Work
in accordance with the Subdivision Agreement. Escalations in the amount of the Security
Deposit also were provided for.
E. The total amount of the irrevocable and unconditional Letters of Credit issued by
Royal Bank of Canada for its customer Martin Road Holdings Limited under No.
P12611TO6206, P27470T06206, P67946T06206 currently on deposit with the Municipality as
a Security Deposit for the CPR Underpass Work is $1,350,000.00 (the "Underpass Letter of
Credit").
F. At its meeting on April 24, 1995, the Municipality's Council approved the
recommendations contained in Report #Admin 14-95 a copy of which is contained in Schedule
"BB" hereto.
G. Paragraph 8.5 of Report #Admin 14-95 recommended that subject to the
satisfaction of certain conditions Council approve an amendment to the Subdivision Agreement
to delete the requirement that the Owner construct the CPR Underpass Works.
H. By its adoption of Addendum Report#Admin 14-95 at its Special Meeting on July
29, 1996, a copy of which Addendum is also contained in Schedule "BB" hereto, Council
clarified the purpose in respect of which the monies referred to in Recital I may be disbursed
or appropriated by the Municipality.
I. In satisfaction of one of the conditions referred to in Report #Admin 14-95 as
amended by the Addendum to Report #Admin 14-95, the Owner has agreed to make a
contribution to the Municipality in the amount of one million, five hundred thousand
($1,500,000.00)dollars plus interest on three hundred thousand($300,000.00)dollars from April
249 1996 to the date of payment. The monies paid to the Municipality are to be used for the
purpose recommended in Report#Admin 14-95 as amended by the Addendum to Report#Admin
14-95 and are to be paid in instalments as set out below in this Agreement. The Owner also is
to deposit security with the Municipality for the performance of the Owner's covenant in this
regard. The Municipality has agreed that as soon as is reasonably practicable after the deposit
of such security the Municipality's Treasurer will return to the Owner the Underpass Letter of
Credit not drawn upon by the Municipality.
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Second Subdivision Amending Agreement Page
J. This Second Subdivision Amending Agreement is made pursuant to subsection
51(26) of the Planning Act, R.S.O. 1990, c.P.13, as amended. It is authorized by By-law No.
96-149 passed on August 12, 1996.
NOW THEREFORE WITNESSETH THAT in consideration of the premises
and the covenants hereinafter expressed, and the sum of two dollars ($2.00)of lawful money of
Canada, now paid by each party to the others (the receipt whereof by each party is hereby
acknowledged), the Parties hereto covenant and agree to and with each other as follows:
1.1 Deletion and Renumbering of Certain Special Conditions
The Subdivision Agreement is amended by deleting paragraph 4.12(12)and 4.12(14)and
renumbering paragraphs 4.12(13) to 4.12(12.
2.1 Deletion of CPR Underpass Work
The Subdivision Agreement is amended by deleting paragraph 5.29 thereof and replacing
it with a new paragraph 5.29 as follows:
"5.29 Alternative Payment to Municipality
(1) The Owner hereby covenants to pay to the Municipality the sum of one
million, five hundred thousand ($1,500,000.00) dollars (the "Alternative
Payment")in five(5)instalments of three hundred thousand ($300,000.00)
dollars each. The Owner shall pay the first and second instalments to the
Municipality on April 24, 1997 together with interest on the first
instalment of three hundred thousand ($300,000.00) dollars calculated at
the rate of 6% per annum from and including April 24, 1996 to the date
of payment. Additional instalment payments of three hundred thousand
($300,000.00) dollars each shall be made on each of the three (3)
successive anniversaries of April 24, 1997. Each instalment and the
aforesaid interest payment shall be deposited by the Municipality when
received in its Hydro Reserve Fund Account. The Owner acknowledges
that the Municipality may disburse part of the first instalment to reimburse
the Municipality for its contribution to the cost of the "Highway No. 2
Urbanization Works" (as hereinafter defined). The monies deposited in
the Municipality Hydro Reserve Fund Account may be expended by the
Municipality for any purpose permitted by law including but not limited
1 � y
x
Second Subdivision Amending Agreement Page e
to the purpose referred to in Report #Admin 14-95 as amended by the
Addendum to Report #Admin 14-95.
(2) Alternative Security Deposit
On the execution of this Second Subdivision Amending Agreement, the
Owner shall deposit with the Municipality cash or an irrevocable and
unconditional Letter of Credit issued by a bank listed in Schedule I or H
of the Bank Act, R.S.C. 1985 c.B.l, as amended, acceptable to the
Municipality's Treasurer and containing terms satisfactory to the
Municipality's Treasurer in the amount of one million, five hundred and
eighteen thousand and fifty ($1,518,050.00) dollars (the "Alternative
Security Deposit") as security for performance by the Owner of its
covenant to make the payments required by paragraph 5.29(1). In the
event that the whole or any portion of the Alternative Security Deposit is
appropriated or is presented for payment by the Municipality to the issuing
bank, all payments required to be made under paragraph 5.29(1) shall be
deemed to be accelerated due and payable to the Municipality on the day
immediately preceding the date of appropriation or presentation as
aforesaid. The Municipality's Treasurer may draw upon the Alternative
Security Deposit to remedy the Owner's default or to discharge the
Owner's obligation, and shall pay the proceeds thereof into the
Municipality's Hydro Reserve Fund Account for use by the Municipality
as set out in paragraph 5.29(1).
(3) Reduction of Security Deposit
As soon as is reasonably practicable after the Owner makes an instalment
payment in accordance with paragraph 5.29(2) and a written request
therefor is made by the Owner to the Municipality's Treasurer, the
Treasurer shall execute an appropriate document addressed to the bank
which has issued the Alternative Security Deposit if it is in the form of a
letter of credit to authorize the reduction of the amount of the Letter of
Credit by an amount equal to the amount of the payment(s) which have
been made to the Municipality by the Owner pursuant to paragraph
5.29(2) hereof.
(4) Return of Underpass Letter of Credit
As soon as is reasonably practicable after the deposit of the Alternative
Security Deposit with the Municipality as is required by paragraph 5.29(2)
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Second Subdivision Amending Agreement Paged
the Municipality's Treasurer will return the Underpass Letter of Credit to
the Owner not drawn upon by the Municipality.
(5) For the purpose of this Second Subdivision Amending Agreement:
(a) the term "Highway No. 2 Urbanization Works" means the
improvements, equipment and landscaping which are to be
constructed or installed to urbanize the "Highway No. 2
Urbanization Zone" which are set out in the "Highway No. 2 Final
Streetscape Report" prepared by Totten Sims Hubicki as finally
approved by and on file with the Director;
(b) the "Highway No. 2 Urbanization Zone" refers to the lands
identified as such on the map contained in Schedule "CC" hereto.
3.1 Deletion and Renumbering of Special Conditions on Schedule "N-Lands Unsuitable
for Building"
The Subdivision Agreement is amended by deleting the first item of the text of Schedule
"N" of the Subdivision Agreement "1) Lots 60 to 79 See paragraph 4.12(13)" and replacing it
with "1) Lots 60 to 79 See paragraph 4.12(12)", by deleting the second item thereof "2) Block
342 to 347 See paragraph 4.12(12)", and by renumbering the other items in Schedule "N"
accordingly.
4.1 Deletion and Renumbering of Special Conditions on Schedule "P - CPR JLn_&Mass
Work"
The Subdivision Agreement is amended by deleting the heading and text under the
heading of ("CPR Underpass Work") in its entirety and by renumbering the remaining
paragraphs accordingly.
4.2 PostpQnement of Mortgage
The Mortgagee hereby postpones its rights under the Charges registered in the Land
Registry Office for the Land Titles Division of Durham (No. 40) as Instrument No. 34186 and
Instrument No. 34187 to the rights of the Municipality under this Second Subdivision Amending
Agreement.
Second Subdivision Amending Agreement Page
4.3 Time of Essence
Time is of the essence of this Agreement.
4.4 Authority.to Make This Agreement
The Owner and the Mortgagee acknowledge and agree that the Municipality has authority
to enter into this Second Subdivision Amending Agreement, that every provision hereof is
authorized by the law and is duly enforceable by the Parties. This Second Amending
Subdivision Amending Agreement is made by the Municipality in reliance on the
acknowledgement and agreement of the Owner and the Mortgagee as aforesaid.
4.5 Binding Effect
This Second Subdivision Amending Agreement and the Subdivision Agreement shall
enure to the benefit of and be binding on the Parties hereto and their respective successors and
assigns. The Owner and the Mortgagee consent to the registration of a Notice of this Second
Subdivision Amending Agreement on the title to the Lands.
IN WITNESS WHEREOF the Parties hereto have hereunto affixed their
corporate seals attested by their respective proper signing officers in that behalf duly authorized.
THE CORPORATION OF THE MUNICIPALITY OF
CLARINGTON
Per:
Name: Diane Hamre, Mayor
Title:
Per:
ame: L Barrie, Clark
Second Subdivision Amending Agreement Page
MARTIN ROAD HOLDINGS LIMITED
Per: ^"
ame: w%-tk%A A6 A 5. DA'"4e
Title: Pr-,s A-f awFkws
Per:
Name:
Title:
WEST BOWMANVILLE DEVELOPMENTS LTD.
Per:
ame: W,lt(«AA T- hz W-44-
Title:
� bMOt.
carPa�a�o...
Per:
Name:
Title:
ROYAL BANK A
Per: a
Name: K.GUY WHI IELD
Title: 9eni(x Account anger
Per:
Name: UHIE A W)MELL Wt-Haw.
Title: ee"AOWJw m"GER
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1
SCHEDULE HAW
DESCRIPTION OF LANDS
LEGAL DESCRIPTION OF THE LANDS
Firstly:
The remainder Parcel 15-6, Section Con.1 (Darlington) Concession 1, being Part of Lot 15 in the
Municipality of Clarington, in the Regional Municipality of Durham.
Secondly.
The remainder of Parcel 15-7, Section Con.1 (Darlington) being Part of Lot 15 in the Municipality
of Clarington, in the Regional Municipality of Durham.
Thirdly 215-1, SEC-nor+ 4rl 1 7-Tg6 6Gnc�par 6 0�` �j�ot�k o2 S, =oti
The remainder of Parcel J being Par , tit i2
Geographic Township of Darlington in the Municipality of Clarington, in the Regional Municipality �-PLA N
of Durham. 4oR 1656
Fourthly:
All of Parcels 12-1, 45-1 and 109-1, Section 40M-1686, being Lots 12 and 45 on Plan 40M-1686,
and Block 109 on Plan 40M-1686, in the Municipality of Clarington, in the Regional Municipality
of Durham.
Fifthly:
All of Parcels 12-1, 13-1;14-1 , Section 40M-1796, being all of Lots 12, 13 and 14.Md
Also Part of Parcel 29-1, Section Plan 40M-1796, being Part of Block 29, designated as Parts 11, 12,241,.25,
13 and 14 on Plan 40R-16695, in the Municipality of Clarington, in the Regional Municipality of
Durham.
Sixthly:
All of Parcels , 32-1, 33-1, 34-1, 35-1, 36-1,
37-1, 39-1, 40-1, 42-1, 43-1, 45-1, 46-1, 47-1, 48-1, 49-1, 50-1, 51-1, 52-1, 53-1, 54-1, 55-1, 56-1,
57-1, 58-1, 59-1, 60-1, 61-1, 62-1, 63-1, 64-1, 65-1, 66-1, 67-1, 68-1, 69-1, 70-1, 71-1, 72-1, 73-1,
74-1, 75-1, 76-1, 77-1, 79-1, 80-1, 81-1, 82-1, 83-1, 84-1, 85-1, 86-1, 87-1, 91-1, 92-1, 93-1
and 101-1 Section Plan 40M-1816, being all of Lot 32, 33,
34, 35, 36, 37, 39, 40, 42, 43, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62,
63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77; 79, 80 and 81 and Blocks 82, 83, 84, 85,
86, 87, 4110, 91, 92, 93 and 101 on Plan 40M-1816, in the Municipality of Clarington, Regional
Municipality of Durham.
SCHEDULE "BB"
(Insert copy of Report #Admin 1495
and Addendum to Report #Admire 1495)
(See Attached)
THE CORPORATtOR OF THE MUNICIPALITY OF CLARINGTON
' {�1Q��X7�X7(6ldit7t�X �
REPORT
Meetino: CMWIL FRO#
Dito: APRIL 24 1995 Res.#
Rpp4lt ADM.14-95 t:tIa DY-Law
Subject:
OLDER ADULT CENTRE AND HIGHWAY NO. 2 URBANIZATION WORK
Recommendations:
It is respectfully recommended that Council approve the following.-,,.
(1) THAT Report No. ADIBN-14-95 be received; and
(2). THAT Council approve amendments to the Aspen Springs Subdivision Agreement
to delete the requiretgent that the Owner construct t m"Cl;R.Underpass Work and
the requirement that the Owner d�posit letters of C`t'edit with the ?�iun�cipality as
security for the construction of the Work,or!the conditions as outlined in this report;.
and
(3) THAT Council accept a financial contribution from Martin Road Holdings Limited
and .West Bowmanville Developments Ltd: in the 'amount of $1.5 million on the
terms and conditions set out in this report; and
(4) THAT Council approve the construction of the Older Adult•Ce' ntre, at a cost of$1.3
million,` in conjunction with the proposed Durham Region Non-Profit Housing
Authority project to be built on Temperance Street in BowmanAlle; and
(5) THAT Council-comnut $200,000 of said contribution of$13 million to the cost of-
the urbanization work on Highway No. 2; and.
(6) THAT Council approve the provision of interim funding of$1.3 million for the Older
Adult Centro and $200,000 for urbanization work on Highway No. 2 referred to in
recommendations (4) and (5) from the Hydro Reserve Fund Account; and
(7) THAT when instalments are paid to the Municipality in respect of the financial
contribution of S1.5 million referred to in recommendation(2) they be deposited in
the Hydro Reserve Fund Account; and
REPORT NO. ADMIN-1495 PAGE 2 ,t-
(8) THAT Council approve the commitment of the amount of$100,000 which is to be
paid by Markborough Properties Inc. and West Bowmanville Developments Ltd. in
respect of the extension of water service to the Garnet B. Rickard Recreation
Complex when it is paid pursuant to this report, to the cost of urbanization of
Highway No. 2; and
(9) THAT Council approve the agreements and amending agreements recommended in
this report and pass the necessary by-laws to authorize the same being executed by
the Mayor and.Clerk on behalf of the Municipality; and
(10) THAT the Treasurer be authorized to accept the deposit of the Letters of Credit and
return the Letters of Credit referred to in the report on the conditions set out in this
report; and
(11) THAT a copy of this report be sent to:
Markborough Properties Inc.
Martin Road Holdings Limited and West
Bowmanville Developments Ltd.
829462 Ontario Inc. and 838038
Ontario Inc.
Willsonia industries Limited and
Clarington Place Limited
Durham Region Non-Profit Housing Authority
Older Adult Centre Committee
1. INTRODUCTION
1.1 During the past year the Office of the Chief Administrative Officer has beeninvolved
in a number of protracted negotiations involving property acquisitions, commercial
developments,recreational facilities,etc., throughout the Municipality. Two of these
negotiations that have taken a considerable amount of Staff time are the proposed
Older Adult Centre that is being considered in conjunction with the Durham Region
Housing Authority on Temperance Street in Bowmanville, and the Urbanization of
Highway No. 2 in the area between Regional Road No. 57 and Green Road in
Bowmanville. The Highway No. 2 project must be addressed before development
can proceed on both the north and south side of Highway No. 2, which was the
subject of a recent Ontario Municipal Board hearing. In both cases, Council has
directed the Chief Administrative Officer to continue to meet with all the parties
involved, in an attempt to identify the necessary funding that would allow these
projects to go forward We now submit the following report that addresses the issue
of funding for both projects.
' REOORT NO. ADUM-14-95 PAGE 3 ,4�
A
2. OLDER ADULT CENTRE
2.1 The proposed Older Adult Centre has been the subject of numerous reports to
Council, covering the rezoning of the site in question, as well as the construction of
the 10,000 square foot facility that would form a part of the Durham Region Housing
Authority's sixty unit "singles" building proposed for the old "piano factory" site,
across from the public library on Temperance Street in Bowmanville.
2.2 As Council knows, the Housing Authority has had approval in principle from the
Ministry to construct this project on the proviso that the Municipality of Clarington
participates in the project by financing the Older Adult Centre. The Centre would
have a gross floor area of 11,600 sq. feet, and a net floor area of 10,000 sq. feet, and
will include leasehold improvements, carpet,and air conditioning. The furniture and
appliances will be provided by the Clarington Older Adult Centre Committee, who
will be responsible for the operation otthe Centre. There would be 22 surface
parking spaces. By financing the recreation Centre,the Municipality would then hold
ownership of approximately 19t.of-the overall complex. This would compare to the
square footage of approx. 16 additional living units.
23 At a meeting held on November 28, 1994, Council passed-4 resolution directing the
Chief Administrative Office to go on record with the Durham Region Housing
Authority that the Municipality of Clarington approves, in principle, of the
preliminary architectural drawings showing the.proposed 10,000.square.foot"seniors'
centre", and,as well "That the Municipality of Clarington agrees to cover the cost of
the 10,000 square foot "seniors' centre" on the proviso that an acceptable financial
contribution by the Municipality, either by way of capital investment or long term
lease, is agreed upon between the Housing Authority and the Municipality".
2.4 Following those directions, Staff have had numerous meetings with the
representatives of the Housing Authority and have identified the Municipality's
portion of the capital cost to be $1,300,000. Should Council agree to proceed with
this project, the Durham Regional Housing Authority would need a commitment
from the Municipality of Clarington that the amount of$1,300,000 would be available
for constriction purposes. This then would allow the Authority to make a final
submission to the Ministry for approval of the project. As previously stated by the
Housing Authority, should Clarington decide not to participate in this project, the
Ministry will not.approve the housing portion of the facility and the project will not
proceed. Upon Council's approval of the funding proposal identified later in this
report, the Durham Region Housing Authority will immediately proceed with the
necessary approvals and would expect to see the project commence construction
within the next few months.
4
REPORT NO. ADMIN-14-95 PAGE 4 J4
2.5 On reviewing the financing proposals that are addressed in this report, it should be
kept in mind that there is still a possibility of obtaining some type of Provini W grant
for the recreation portion of the project, even though we have not been successful
to date in receiving a positive answer in this regard from . our Regional
Representative-of the Ministry of Tourism, Culture and Recreation. 'It should also
be kept in mind that should the project proceed, the Housing Authority would be
paying approximately $150,000 to the Municipality under the Development Charges
By-law. This amount, could not be addressed as a portion of the Municipality's
funding, as it must be directed to the Development Charges Reserve Fund.
However, it.should be considered a "plus" in the overall financial assessment of the
project.
3. URBANIZATION OF HIGHWAY NO.2,BOWMANVILLE MAIN CENTRAL AREA
3.1 The transition of Highway No.2 from a high speed rural cross-section to a low speed
urban roadway between Green Road and Martin Road is considered essential to the
long term development of the Bowmanville West Main Central Area (B.W,M.C.A.).
3.2 In order to ensure that the Municipality of Clarington's interests in this regard are
properly addressed, the Clarington Public.Works Department prepared a functional
design for the urbanization of the aforementioned section of roadway.
3.3 The functional design provided a framework for the review of proposed
developments adjacent to Highway No. 2 and the opportunity to generate a phased
approach for the implementation of the required work.
3A Two developments, Markborough and Willsonia have been'reviewed in this context
and works on Highway No. 2 have been identified.
3.5 A section of Highway No. 2 adjacent to the proposed Markborough and Willsonia
developments is super-elevated and has no Iongitudinal fall. These two conditions
make urbanization of the roadway at its current grade impossible.
3.6 The lack of longitudinal grade would result in ponding along proposed curb lines and
the super-elevation 4S% is not suitable geometry for intersecting urban streets. In
order to address these issues, a number of alternative solutions were reviewed. The
only solution which satisfactorily addressed the long term interests of the
Municipality and permits the development of the Markborough and Willsonia lands
requires the construction of approximately 565 metres of Highway No. 2 (See
Attachment No. 1). The proposed reconstruction involves the lowering of Highway
No. 2 in the vicinity of Street'B'. A low point would be established at the proposed
intersection of Highway No. 2 with Street 'B' resulting in a minimum longitudinal
grade of 0.5% and removal of the super-elevation.
REPORT NO. ADMIN-14-95 PAGE 5
4. PROPOSED FINANCING OF HIGHWAY NO. 2 IMPROVEMENTS
4.1 The cost of the required road work was estimated at $1,090,000.00 in 1994 dollars.
This value does not include the cost of providing street lighting and sidewalk, as
these services were included in the Municipality's Development Charges By-law. The
amount of the estimated costs thereof of the latter services which would be the
Municipality's responsibility is $290,000. In addition, traffic signals and storm sewer
oversizing would be the responsibility of the developers. The estimated cost of traffic
signals to be located at Kings Highway and Street "E" is $100,000.
4.2 Financial negotiations have been ongoing regarding this project. Initially, the
adjacent developers were advised that the total cost of the portion of the project
necessitated by their developments was to be their responsibility and would be in
addition to the costs of works referred to in the servicing agreements they had made
with the Municipality.
4.3 The Municipality had entered into the following servicing agreements with the
adjacent developers (1) respecting the Markborough Shopping Centre on May 24,
1994 with 829426 Ontario Inc. and 838038 Ontario Inc. and Royal Bank of Canada
(the "Markborough Servicing Agreement"), and (2) respecting the Willsonia
development also on May 24, 1994 with Willsonia Industries Limited and Clarington
Place Limited (the "Willsonia Servicing Agreement"). We understand that the
shareholders of the numbered companies who are parties to the Markborough
Servicing Agreement are Markborough Properties Inc. and West Bowmanville
Developments I.td.
4.4 Both developers have indicated that they are prepared to move ahead with the
necessary approval process. However,considering the protracted hearings regarding
the Bowmanville West Main Central Area at the Ontario Municipal Board, the
additional cost of the urbanization resulted in both developments reaching a point
of questionable financial viability. Both developers clearly stated that should the
entire cost of urbanization be left to them, they could not proceed with their
proposed development.
4.5 Staff then made contact with the senior staff of the Durham Region Works
Department in an attempt to see if there was some way the Region could participate
financially in the urbanization project, given the fact the Highway No. 2 was turned
over to Durham Region by M.T.U. on January 1, 1995. After lengthy negotiations,
the Regional Staff agreed to recommend to Regional Council that they participate
in this project to the amount of $240,000.
4.6 Once the Regional Staff commitment was obtained, further discussions took place
with the two developers and commitments were obtained for contributions to the
REPORT NO. ADMIN•14-95 PAGE 6 y�
project of $400,00 from Markborough Properties Inc. and West Bowmanville
Developments Ltd, on.the one hand and $250,000 from Willsonia, on the other
hand, for a total amount of $890,000 towards the total cost of$1,190,000, leaving a
shortfall of$300,000.
4.7 Staff recommend that Council approve amendments to the Markborough and the
Willsonia Servicing Agreements, respectively, to give effect to these commitments
unless alternative legal arrangements satisfactory to the Region of Durham are made
directly with the Region to secure these commitments.
4.8 With respect to the cost of storm sewer oversizing on Highway No. 2, in the storm
sewer accommodating flow from the north side of Highway No.2 from the Willson'a
and other lands under Highway No.2(the"Highway No.2 Storm Sewer OversizW)
to connect with the storm sewer to be constructed under the Markborough Servicing
Agreement,it is recommended that Council approve an amendment to the Willsonia
Servicing Agreement to provide that Willsonia Industries Ltd. and Chuington Place
Limited will fund the cost of the Highway No. 2 Storm Sewer Oversizing.
S. FINANCING OF SHORTFALL IN FUNDING OF HIGHWAY NO. 2
IMPROVEAIEN'iS
5.1 Considering the fact that the Municipality owns land on the:north side of the portion
of Highway No. 2 in question, namely the municipal fire hall and the Garnet B.
Rickard Recreation Complex, both developers felt that the Municipality should
finance the additional $300,000 in order to have the project proceed immediately,
thereby allowing both Markborough and Willsonia to commence construction in
1995.
5.2 In an.attempt to identify additional municipal funding for the road project, Staff
revisited the past financial commitments made by all of the developers In the general
area. On reviewing same we identified two past agreements that may be a source
of funding for the Municipality to participate In the Highway No. 2 urbanization,
should Council wish to see the project and the developments proceed this year.
These are agreements respecting a water service contribution provided for in
conjunction with the rezoning to permit the Canadian Tire Store, and the Aspen
Springs Subdivision Agreement.
6. WATER SERVICE CONTRIBUTION OF WEST BOWMANVILLE
DEVELOPMENTS LTD. AND MARKBOROUGH PROPERTIES INC.
6.1 The former Town of Newcastle made an agreement dated November 26, 1990,with
Markborough Properties Inc.and West Bowmanville Developments Ltd.under which
the cost to the municipality of extending water service to the Garnet B. Rickard
4
REPORT NO. ADMIN-14-95 PAGE 7
Recreation Complex would be defrayed by a contribution from the companies of
$300,000. The two companies benefited from this municipal expenditure by being
able to extend the water service to the Canadian Tire Store and the proposed
Markborough Shopping Centre from the Recreation Complex, One hundred and
fifty thousand dollars was paid to the Municipality on the execution of the agreement
and was deposited in the Arena Reserve Fund Account. Payment of the balance of
$150,000 is to be made when a building permit is issued for the proposed
Markborough Shopping Centre. It is secured by Letters of Credit which is deposited
with the Municipality.
6.2 Since people using the Recreation Complex will benefit from the urbanization of
Highway No.2, Staff are of the opinion that it would be fair to apply$100,000 of the
balance of$150,000 secured by Letters of Credit deposited with the Municipality to
defray part of the cost of the improvements to Highway No. 2. Accordingly, Staff
recommend that subject to the concurrence of the parties to the agreement dated
November 26, 1990 between the former Town of Newcastle,Markborough Properties
Inc. and West Bowmanville Developments Ltd., be amended; (1) to provide for a
reduction in the security for the payment to defray part of the cost of extending the
water service which is now deposited with the Municipality to the amount of$50,000
which is payable on issuance of a building permit for the.,proposed Markborough
Shopping Centre;(2)to require Markborough Properties Inc.and West Bowmanville
Developments Ltd. to pay $100,000 to the Municipality to defray part of the cost of
Highway No. 2 improvements within 30 days following the commencement of the
construction of these improvements;and(3)to require the deposit of new irrevocable
and unconditional Letters, of Credit or amendments to Letters of Credit presently
deposited with the Municipality to secure performance of the revised obligations of
the companies. The Letters of Credit are to be issued by a bank listed in Schedule
1 of the Bank Act, in amounts, in a form and with a content satisfactory to the
Treasurer.
7. UNFUNDED COSTS OF HIGHWAY NO. 2. IMPROVEMENTS
7.1 Should Council agree with Staffs last recommendation in this regard, the unfunded
balance of the Highway No.2 project would be $200,000 in addition to the unfunded
cost of $1,300,00 for the Older Adult Recreation Centre. This report will go on to
deal with the immediate and longer term sources of these amounts.
& ASPEN SPRINGS SUBDIVISION AGREEMENT
8.1 In consultation with Mr. Dennis Hefferon, the Municipality's Solicitor, Staff have
reviewed the conditions of draft plan approval of the West Bowmanville
Developments Ltd.subdivision located between Green Road and Regional Road No.
57, south of the CPR tracks (Plan 18T-86046 - Aspen Heights), relative to the
F ,
'REPORT,NO. ADMIN-14-95 PAGE 8
construction of the grade separation proposed at the intersections of future Street"C"
and the CPR and the Aspen Heights Subdivision. One of the conditions of the draft
plan approval was that "the Owners shall agree to reserve Blocks.342 and 347 for
railway underpass and to address construction to the satisfaction of 'the Town of
Newcastle."
82 The Aspen Springs Subdivision Agreement between the former Town of Newcastle
and Martin Road Holdings Limited and West Bowmanville Developments Ltd. and
certain mortgagees provides: "With respect to the 'CPR Underpass Work', without
derogating from the provisions of paragraph 5.27 of this Agreement, the Owner
agrees at its cost to commence to construct this work no later than the day on which
an application is made for a building permit for a building which is or includes the
661st dwelling unit proposed to be constructed on the lands and to complete the
same in accordance with this Agreement."
83 It should be noted that a grade separation may also be constructed by the
Municipality at the intersection of Green Road and the.CPR at a future time.
8.4 Staff have considered the provisions of the Aspen Springs Subdivision Agreement as
well as the proposal for the future construction of an underpass at the intersection
of Green Road and the CPR tracks. Although the Municipality's Final Report on
the Transportation Analysis for the Bowmanville Main Central Area Study stated,
"All the network alternatives show an extension of the north-south collector road
through a railway underpass to link with Aspen Springs Drive on the south side of
the CPR tracks, this could serve as an alternative access route for West MCA traffic
heading to Martin Road, instead of having to use Highway No. 2. However,
consideration should be given to the impact of increased traffic on residential streets
south of the railway tracks.", the Director of Planning and Development has some
concern with the proposal of not proceeding with the construction of the underpass.
However, staff with the exception of the Director of Planning and Development have
concluded that it is not necessary in order to protect the Municipality's interest in the
proper functioning of the existing and future street system both north and south of
the CPR tracks and both east and west of Green Road that the "CTR Underpass
Work"he constructed as provided for in the Aspen Springs Subdivision Agreement.
8S It is recommended that conditional on financial arrangements being agreed to by
Martin Road Holdings Limited, West Bowmanville Developments Ltd., 829426
Ontario Inc. and 818038 Ontario Inc. and all necessary parties executing the
agreements and depositing the securities referred to in this report, Council approve
an amendment to the Aspen Springs Subdivision Agreement to delete the
requirement that the Owner construct the "CPR Underpass Works".
s
REPORT NO, ADMiN-14-95 PAGE 9
8.6 Should Council agree with this recommendation,the developer of the Aspen Springs
project, through Mr. William Daniel, has agreed to make an outright contribution to
the Municipality of Clarington in the amount of $1S million, to be used by the
Municipality for the purpose recommended in this report.
8.7 Accordingly, it is recommender: that Council:
(a) approve an agreement to amend the Aspen Springs Subdivision Agreement
between the Municipality, Martin Road Holdings Limited,Weaa Bowmanville
Developments Ltd, Robert Louis Stevens and Royal Bank of Canada dated
September 8, 1991, as amended, to delete the requirement that the Owners
construct the"CPR Underpass Work"and provide security to the Municipality
for the performance of the Owners' covenant to do so;
(b) provide in the amendment to the Aspen Springs Subdivision Agreement or if
considered appropriate by myself in consultation with the Solicitor in a
separate agreement with Martin Road Holdings Limited and West
Bowmanville Developments Ltd. which is to be executed prior to the
amendment to the Aspen Springs Subdivision Agreement referred to in (a),
for the payment to the Municipality $1,500,000 in five (5) equal annual
instalments of$300,000 each, the first instalment to be paid on April 24, 1996;
(c) require each of the instaiments referred to in (b) when paid to the
Municipality to be deposited in the Hydro Reserve Funds Account;
(d) require the deposit with the Municipality's Treasurer as alternative security
for the performance of the obligations set out above unconditional and
irrevocable Letters of Credit issued by a bank listed on Schedule 1 of the
Bank Act in amounts, in a form and with a content satisfactory to the
Treasurer.
(e) authorize the Treasurer to return to the Owners the Letters of Credit
deposited with the Municipality in respect of the "CPR Underpass Works"
conditional on the alternative security set out in (d) being deposited with the
Municipality;
9. INTERIM FUNDING REQUIREMENTS FOR OLDER ADULTS' RECREATION
CENTRE AND $200,000 OF THE COST OF THE HIGHWAY NO. 2
IMPROVEMENTS
9.1 It is recommended the interim funding requirements to proceed with the Adult
Recreation Centre ($1.3 million) and $200,000 of the cost of the Highway No. 2
improvements should be obtained by accessing the Hydro Reserve Funds for the
REPORT NCB. ADhUN-14-95 20 10 20
f
amount of$1.5 million, on the condition that this amount will be replaced over the
next five years upon the.payment of the $1.5 million under the revised Aspen Springs
Subdivision Agreement or the agreement between the parties referred to above.
10. TERMS OF AGREEMENTS
10.1 It is recommended all agreements to implement the recommendations contained in
the report shall contain provisions considered to be necessary to protect the
Municipality's interests by myself in consultation with the relevant Staff and the
Municipality's Solicitor.
11. CONCLUSION AND RECOMMENDATIONS
11.1 'Ibis report addresses the funding requirements for the Older Adults' Recreation
Centre and the urbanization of Highway No.2 to permit the Markborough Shopping
Centre and the Willsonia developments to be commenced this year. It is
recommended that this report approve.the making of agreements and other actions
set out in it be approved by Council.
11.2 By adopting the recommendations of Staff Council would accomplish the construction
of the Older Adult Centre, as well as the completion of the Highway No. 2
Urbanization Work without having an adverse affect on the municipal budget.
11.3 The completion of the Highway No. 2 work would then allow the developers to
proceed with their commercial projects as an early date,resulting in a positive impact
on the municipal assessment base.
Respectfully submitted,
Stockwefl
Chief Administrative Officer
�F
' REPORT #3
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting: COUNCIL
File #
Res. #
{ Date: July 29 1996 By-law #
Report #: ADDENDUM TO
ADMIN. 14-95 File #:
Subject:
OLDER ADULT CENTRE AND HIGHWAY NO. 2 URBANIZATION WORK
Recommendations:
It is respectfully recommended that Council approve the following:
(1) THAT the references in the recommendations contained in Report #Admin. 14-
95 to the Older Adult Centre in the proposed Durham Region Housing Authority
project on Temperance Street, Bowmanville, be amended to refer to the
proposed Older Adult Centre within the Municipality of.Clarington.
'
(2) THAT the text of Section 6 of Report #Admin. 14-95 (attachment #1) be
deleted and the payments now due under the Agreement of November 26,
t1990 be required to be paid (attachment #2, $150,000 escalated to .
approximately $210,000). When this payment is received, $100,000 of it is
recommended to be committed by Council to the cost of urbanization of
Highway No. 2.
(3) THAT Section 8.7(b) and (c) of Report #Admin. 14-95 be deleted and replaced
with the following:
"(b) provide in the amendment to the Aspen Springs Subdivision Agreement
or if considered appropriate by myself in consultation with the Solicitor
in a separate agreement with Martin Road Holdings Limited and West
Bowmanville Developments Ltd. which is to be executed prior to the
amendment to the Aspen Springs Subdivision Agreement referred to in
an for the instalments to the
Municipality
the firs oando eco d instalments)
annual Instalme
REPORT NO. ADMIN-14-95 PAGE 2
to be paid on April 24, 1997 together with interest calculated on the
amount of $300,000 at the rate of 6% per annum prorated from and
including April 24, 1996;
(c) require each of the instalment and interest payments referred to in (b)
when paid to the Municipality to be deposited in the Hydro Reserve Fund
Account."
1. INTRODUCTION
1.1 Council approved the recommendations contained in Report #Admin. 14-95 at
its meeting on April 24, 1995. (Attachment #1) The recommendations
included:
• The deletion of the "C.P.R. Underpass Work" from the Aspen Springs
Subdivision Agreement._
• The acceptance of a financial contribution of $1.5 million from Martin
Road Holdings Limited and West Bowmanville Developments Ltd. on the
terms and conditions set out in the report.
• The approval of the contribution of the Older Adult Centre at a cost of
$1.3 million in conjunction with the then proposed Durham Region Non
Profit Housing Authority project on Temperance Street in Bowmanville.
• The provision of interim funding of $1.3 million for the Older Adult
Centre and $200,000 for urbanization work on a portion of Highway No.
2 in the Bowmanville East Main Central Area from the Hydro Reserve
Account.
• The commitment of $100,000 to be paid by Markborough Properties Inc.
and West Bowmanville Developments Ltd. in respect of the extension of
water service to the Garnet B. Rickard Recreation Complex when it is
paid to the cost of the urbanization of Highway No. 2.
1.2 The financial contribution of $1.5 million was to be paid in 5 equal annual
instalments of $300,000 each, the first of which was to be paid on April 24,
1996. Each instalment when paid was to be deposited in the Hydro Reserve
Fund Account. The financial contribution of Martin Road Holdings Limited and
West Bowmanville Developments Ltd. was to be secured by an unconditional
and irrevocable letter of credit to be deposited with the Municipality.
i
•,
s
REPORT NO. ADMIN-14-95 PAGE 3
1 .3 With the change in the Provincial Government, the Durham Region Non-Profit
Housing Authority project on Temperance Street in Bowmanville was cancelled.
Council selected an alternative site for the Older Adult Centre on property
owned by Vanstone Mill Inc. at King and Scugog Streets in Bowmanville by its
adoption of Resolution#GPA-684-95 approving Report#Admin.34-95. (Report
#Admin. 15-96 updated Council.on the status of this project.)
1.4 The urbanization work on Highway No. 2 will proceed in 1996. Security has
been posted with the Municipality by Willsonia Industries Ltd. and Clarington
Place Limited for Willsonia's share of the cost of the urbanization work. A draft
Subdivision Agreement between the Municipality and 829426 Ontario Inc. and
838038 Ontario Inc. (the shareholders of which are Markborough Properties
Inc. and West Bowmanville Developments Ltd.) has been delivered to the
parties. When settled and executed it will provide for the posting of security
with the Municipality for those companies' share of the cost of the urbanization
work.
I
1.5 A draft Agreement to implement Report #Admin. 14- 5 by amending the
Subdivision Agreement with Martin Road Holdings Limited and West
Bowmanville Developments Ltd. has been prepared. It has yet to be executed j
by the owners.
i�
1.6 Since the amending Agreement between the Municipality and Martin Road
Holdings Limited and West Bowmanville Developments Ltd. has not been
executed,the first instalment payment of $300,000 of the $1.5 million financial
contribution has not been made to the Municipality. Also, the $150,000 plus i
the "Escalated Amount" for a total of approximately $210,000 which is to be
paid by Markborough Properties Inc. and West Bowmanville Developments Ltd.
under the water extension agreement is now due. i
1 .5 With the above changes in circumstance, it is desirable for Council to review
and where necessary and appropriate, to approve revisions of the
recommendations contained in Report #Admin. 14-95 as outlined herein.
2.0 OLDER ADULT CENTRE
2.1 Following the cancellation of the proposed Temperance Street, location of the
Older Adult Centre, the Municipality called for new proposals. Report #Admin.
34-95 dated December 2, 1995 recommended as the preferred proposal that j
submitted by Vanstone Mill Inc. Authority was given to negotiate an agreement
with Vanstone Mill Inc. for the transfer of a site on Scugog Street,
Bowmanville, with an Older Adult Centre to be constructed on a turn-key basis. j
I
4
:I
s
. _ PAGE 4
REPORT NO. ADMIN-14 95
1 will be reporting in the near future, recommendations with regards to the
Senior Centre within the Municipality of Clarington.
3.0 WATER SERVICE CONTRIBUTION OF WEST BOWMANVILLE DEVELOPMENTS
LTD. AND MARKBOROUGH PROPERTIES INC.
3.1 The contribution of $150,000 plus the "Escalated Amount" became due and
payable on March 24, 1996 the "Date of Final Approval of the Zoning
Amendment" for the proposed Markborough Shopping Centre pursuant to the
terms of the Agreement between the Municipality and the above companies
dated November 26, 1990. $150,000 is secured by a Letter of Credit
deposited With the Municipality, and the escalated value includes interest,
calculated to date.
4.0 ASPEN SPRINGS SUBDIVISION AGREEMENT
4.1 As noted above the first instalment of $300,000 which is part of the financial
contribution of West Bowmanville Developments Ltd. of $1.5 million referred
to in Section 8 of Report #Admin. 14-95 was due on April 24, 1996. Mr. 1
William Daniell has requested that the Municipality defer the payment of the
first instalment to April 24, 1997 on which date both the first and second
instalments (that is, a total of $600,000) will be paid together with interest on
$300,000 calculated at 6% per annum from and including April 24, 1996 to the
date of payment. I recommend that Council approve Mr. Daniell's request in
consideration of the delay in construction of the Senior Centre and the
subsequent signing of the Agreement.
5. The Treasurer has been consulted on above and concurs with the
recommendations.
Respectfully submitted,
W. H. Stockwell
Chief Administrative Officer
att. 1
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