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HomeMy WebLinkAboutADMIN-22-97t- • THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File # ° • O~ Date: JUNE 2, 1997 Res. #C'~tg7 By-Law # Report #: AiIMiN.22.,~ji&>~nF.NT)iIM Subject: OLDER ADULTS CENTRE Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report No. ADMIN-22-97 ADDENDUM be received; 2. THAT the submission of Rice/Daros be lifted; and 3. THAT Council give direction FORTHWITH to staff regarding the proposed submission by Rice/Daros and the offer of sale put forth by the Bowmanville Lions Club. 1.0 BACKGROUND: 1.1 On May 20, 1997 Council directed staff to meet with the Bowmanville Lions Club to immediately determine the issue of complete Municipal ownership of the Lions Centre and that the Chief Administrative Officer report to the. General Purpose and Administration Committee at their meeting of June 2, 1997. 2.0 BOWMANVILLE LIONS CLUB: 2.1 Staff have met with representatives from the Bowmanville Lions Club and Attachment No. 1 dated May 27 is their position regarding the Older Adults Centre. 2.2 Since the Lions Club are willing to sell the building/property clear of any conditions, staff have undertaken a technical building audit of the building and a property appraisal report. 2.3 These two reports will be available under separate cover and will be discussed during the in- camera session of the General Purpose and Administration Committee meeting. ../2 o.PE.~®.E~.~a. - 13 0 2 - x ..," 4 • xEraRT an~mv-zz.rr - z - .~rrE z, i~ Respectfully sulrnutted, Reviewed by, /'V'~Y U W. H. Stockwell, Chef Administrative t7ffieer - 1303 N0.1 TO REPORT NO. ADMIN-22-99 ADDEN WM BERTV + INTELLIGENCE +~' ~',[~gJ~ '~ QUR +(rAT1ONS + L6 BEECH AVE. BOWMANVILLE - ONTARIO, L1C 3A2 1997 05 27 Mr. W. H. Stockwell Chief Administrative ©fficer Municipality of Clarin~ton Dear Mr. Stockwells Res Older Adult Gentre As requested in your letter of May 21, the Members of the Lions Cluta of Bowmanville, at a well-attende¢meetin~ last eveniar, discussed our position re the O.A.C. A Motion was passed, unanimously, that we are willint to sell the Lions Centre Property for Market value for use as an Older Adults Centre with no conditions attached. We trust that this will clear the way for a decision in favour sf the Lions Centre site for. the location of the Older Adult Centre. Sincerely J cMunda , Chairman C1der Adult Centre Liaison Coamtittee 134 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON ~k;IA(XlIX6tIQl~Af%dCtXJtlg(~l~(7(06)d1~YJtl~(%CG1(Rfl~( REPORT Meeting: General Purpose and`Administration Committee Date: r7Ay 20 1997 Report #: ~~ F~7#: Subject: OLDER ADULTS CENTRE File # i~ 1 ~ ~- O {- Res.# G-PR-?~L-9~ By-Law # Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That Report Admin-22-97 be received; 2. That Council give further direction to Staff regarding the proposal submitted by Rice/Daros, and the Offer of Sale put forth by the Bowmanville Lions regarding their Beech Street property; and 3. That copies of this report be forwarded to Daros Investments Ltd., the Bowmanville Lions Club, and the members of the Older Adults Facility Committee. 1.0 BACKGROUND 1.1 On November 25, 1996, Council approved Report Admin-33-96, reaffirming its commitment to use $1.3 million, obtained from Martin Road Holdings Limited and West Bowmanville Developments Ltd., for the purpose of an Older Adults Centre in the Bowmanville area, and directing Staff to investigate alternative sites for such a facility. 1.2 Municipal staff, together with the Older Adults Centre Committee, reviewed six sites in the Bowmanville area, assessing them on a criteria list as follows: visibility accessability expansion parking circulation location price o.o.~a~®a.~:~~E 13 0 5 1.3 The six sites that were reviewed were Vanstone Mills Ltd (lands west of the Bowmanville Creek), Bowmanville Lions Centre, Fire/Court Building, Garnet B. Rickard Centre, John Rice/Daros Investments, and The Kaitlin Group (lands south of Canadian Tire in the Markborough Commercial Development). 1.4 The Committee agreed that the most preferential site was the John Rice/Daros Investment properties located on Church Street, east of Scugog Road, and proceeded to enter into an evaluation process with the owner and developer with the view of attempting to identify an approximate cost of their project. 1.5 At the same time, Staff continued to attempt to identify the availability of a second "downtown" site, that being the Bowmanville Lions Centre. 1.6 It should be noted that the Older Adults Committee has not dismissed the possibility of dealing with any of the above- mentioned sites, and is dealing with them on a prioritized basis. 2.0 JOHN RICE/DAROS INVESTMENTS 2.1 The municipal staff and the Older Adults Centre Committee have met with representatives of the Rice/Daros Group and have identified a "upset price" of construction of $1,340,000. This, together with an agreed value of $335,000. for the two parcels of land needed for construction and parking, plus an estimated G.S.T. figure of $50,250 (See Note 1), gives a final estimate of cost of $1,725,250.00. As explained in the writer`s memo to Council of May 8, 1997, the estimated property value, as identified by an outside firm contracted by the Municipality, is $479,000. 2.2 In addition, the developer requests that the Municipality make cash advances on the construction of the facility rather than entering into a "turn key" agreement. 2.3 Although the estimated cost of $1,725,250, as agreed to by both parties, is in excess of the $1.3 million identified for the project, it is still a considerable saving on the evaluated value of the needed lands, as explained in the writer`s memo to Council of May 8th, 1997. 2.4 It should also be remembered that the $1.3 million construction value came from the cost of adding an Older Adults facility to a proposed Regional Housing Project that was planned for the lands opposite the Bowmanville Library that did not come to fruition due to the lack of Provincial funding. 2.5 Should Council give consideration to increasing the construction budget of $1.3 million, to meet the Rice/Daros 13~~ costs, monies could be taken from the Impact/Escrow Reserve Fund, 5001-50-X, in the amount of approximately $425,250, plus legal and administrative costs. 3.0 BOWMANVILLE LIONS CENTRE 3.1 At its meeting of May 12, 1997, Council heard a deputation from Mr. Jack Mundy on behalf of the Bowmanville Lions, requesting consideration of the Lions` Offer of Sale of the building located at 26 Beech Ave., to the Municipality, for the purpose of a Older Adults Centre. 3.2 Upon hearing the deputation, Council agreed to deal with the Offer of Sale once Council had an opportunity to meet with the Older Adults Centre Committee, which has been arranged for May 20, 1997. 3.3 In order to assist Council in their considerations, we enclose a self-explanatory memo from Mr. Fred Horvath, Property Manager, regarding the Bowmanville Lions property. 4.0 RECOMMENDATIONS 4.1 Once Council has had the opportunity to meet with the Older Adults Centre Committee, Council should be in a position to give further direction to Staff to either enter into in-depth negotiations surrounding the Rice/Darns proposal or bring all discussions regarding this proposal to an end. Council should also be in a position to direct Staff regarding the Bowmanville Lions Offer of Sale of their Beech Street property. Note 1: GST has been assumed at the maximum value of 3°s under a rebate situation. The GST component may vary depending on the classification of the end use of the project and the construction method. This will be verified by the auditors upon the final decision by Council. Respectfully submitted, ~~ W. H. Stockwell, Chief Administrative Officer att, 1367 l THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON Memorandum To: W. H. Stockwell, Chief Administrative Officer DN: PROPERr110LDERADU.CTR.46 From: Frederick Horvath, R.D.M.R., R.R.F.A, Property Manager Date: May 14, 1997 Subject: BOWMANVILLE LIONS CENTRE During discussions with representatives from the Lions Club in late November 1996, Don Welsh and myself visited the Centre in order to do a general assessment of the building if the Municipality was to accept the original offer to purchase. Shortly after this site visit, the representatives informed us that the Lions Club building was not up for sale and no further discussions took place. Based on the original site visit, I provide the following observations: 1. Building in good condition and well maintained. 2. Upper and lower floors inaccessible for Older Adults and would not be utilized for any programming. 3. The main level including east and west halls, meeting rooms and kitchen represents around 5,000 square feet. 4. No space for storage, activity rooms or Community Care areas. 5. An expansion is required to the west which could be accommodated without the installation of an elevator. 6. Parking is a problem but adequate land is available. 7. Location of tennis courts and playgrounds poses problems if vehicular access is considered from Elgin Street. 8. Only one program activity could be carried out at any time due to design of east-west halls. 9. I did not evaluate kitchen to determine if all applicable health regulations are met. ..2/ 1308 -2- If the Municipality is to seriously consider the purchase of the land and property, some items to be considered are: 1. Building Profile Report 2. Legal Survey 3. Written Agreement with Tennis Club 4. Property Appraisal Evaluation As mentioned earlier in this memorandum, due to the Lions Club's position in early December, I have not reviewed any of the items addressed in detail. I look forward in reviewing the site and providing detailed information if this is the direction in which Council wishes to pursue. FH:sa 1 ~ !~ 9