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HomeMy WebLinkAboutADMIN-58-97THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON ~mhT REPORT Meeting: COUNCIL MEETING Date: DECEMBER 15, 1997 Report #: AnntrN.ss_gAiie #: Subject: ORONO ARMORIES, 6 PARK STREET, ORONO File # Res. # _ By-Law # Recommendations: It is respectfully recommended that Council approve the following: 1. THAT Report No. ADMIN-58-97 be received; 2. THAT the attached By-law be passed to authorize the Mayor and Clerk to execute an agreement substantially in the form of the draft Agreement of Purchase and Sale with 760719 Ontario Limited/Apogee Productions in the amount of $88,400.00; 3. THAT the Purchaser be granted an easement to use, maintain, repair and replace the septic tank located on the Orono Town Hall property at the cost of the Purchaser until sanitary sewer service is available; and 4. THAT the funds from this sale be deposited to the Building Maintenance and Improvement Reserve Fund. 1.0 BACKGROUND:. 1.1 At a meeting held October 23, 1995, Council authorized the Mayor and Clerk to execute a lease with 760719 Ontario Limited/Apogee Productions of the Orono Armories. Under the provisions of the lease the Lessee was also granted an option to purchase the leased properTy on the terms set out in the Agreement of Purchase and Sale. 1.2 Recently the Lessee has informed the Municipality of its intention to exercise the option to purchase the Orono Armories building by delivering an Agreement of Purchase and Sale executed by the Lessee to the Municipality. The offer contains significant amendments to the terms contained in the original agreement with the Municipality. 1.3 Two issues that were raised are as follows: a) The need for the Lessee to have the right to the continued use of a septic tank located on the abutting Orono Town Hall building property; and b) The discharge of a mortgage which is registered on the title to the Orono Armories property. ../2 REPORT ADMIN-58-97 - 2 - DECEMBER 15, 1997 1.4 In order to address the issue respecting on the septic tank system, the Municipality will grant an easement to the Purchaser until a sanitary sewer system is available. The cost of maintaining, repairing and replacing the septic tank will be borne by the Purchaser. The septic tank in question only services the Armories building. 1.5 A title search of the Orono Armories Property has disclosed a mortgage to secure $3,600.00 plus interest which was made in 1954 by the former Township of Clazke as mortgagor with Her Majesty the Queen in Right of Canada represented by the Minister of Defense acting through the Crown Assets Disposal Corporation. The mortgage matured in 1955. An investigation of the Municipality's records does not disclose any record of this mortgage as a present liability of the Municipality. Also, no demand has been received from the Federal Crown for payment of the amount raised by the mortgage. However, a discharge of the mortgage has not been registered on title and a discharge cannot be found in the Municipality's records. 1.6 The Lessee is prepared to accept a statutory declazation of the Property Manager that, to the best of his knowledge and belief, no demand for payment has been made on this mortgage in excess of 20 yeazs. This will resolve the title issue raised by the Lessee in title requisition referred to in paragraph 1.4. 1.7 The Solicitor has reviewed the Offer to Purchase and Sale (Schedule "A") and is in agreement with the Offer to Purchase and the recommendations contained in this report. 1.$ It is recommended that funds from the sale of this property will be deposited into Account No. 2900-00025-0000 Building Maintenance and Improvement Reserve Fund. Funds from the sale of real property normally is deposited in the Reserve for Municipal Acquisitions of Real Property Fund. Staff are recommending that the proceeds from the sale of this property be deposited to the Building Maintenance and Improvement Reserve Fund. This reserve has been established far the purpose of providing funds for municipal buildings maintenance and improvement projects. 1.9 The above recommendation has been discussed with the Treasurer. Respectfully submitted, Reviewed by, Frede ick o ath, R.D.M.R., R.R.F.A. Property Manager W. H. Stockwell, Chief Administrative Officer FH:sa THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NUMBER 97- being a By-law to authorize the execution of an Agreement of Purchase and Sale of the Orono Armories lands WHEREAS the Council of the Municipality approved the report dated at its meeting of December 15, 1997; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON ENACTS AS FOLLOWS: THAT the Mayor and the Clerk are authorized on behalf of the Municipality to execute an Agreement of Purchase and Sale with 760719 Ontario Limited respecting the Orono Armories lands substantially in the form of the revised Agreement of Purchase and Sale dated December 15th, 1997 deposited with the Clerk and to execute any further implementing documents necessary to complete the transaction. BY-LAW read a first time this 15th day of December, 1997. BY-LAW read a second time this 15th day of December, 1997. BY-LAW read a third time and finally passed this 15th day of December, 1997. Mayor Clerk SCHEDULE"A" AGREEMENT OF PURCHASE AND SALE BETWEEN 760719 Ontario Limited O/A Apogee Productions as Purchaser and The Corporation of the Municipality of Clarington as Vendor for the real property lmown as 6 Park Street, Orono Wherever and to the extent that any provision of this Schedule "A" conflicts with any provision of the remainder of this Agreement of Purchase and Sale, the respective provision of this Schedule "A" shall prevail. 2. The property to be conveyed is described as Part of Village Lots 7 and' 8, Block 'O', C. G. Hanning's Plan of Part of Lot 28, Concession 5, Geographic Township of Clazke, Municipality of Clazington described as follows: COMMENCING at the north-west corner of the intersection of Park and Church Streets; THENCE northerly along the westerly boundary of Church Street for the distance of one hundred feet (100'); THENCE westerly on a line pazallel with Park Street for the distance of fifry feet (50'); THENCE southerly parallel to the westerly boundary of Church Street to a point in the northerly boundary of Pazk Street, which said last mentioned point is fifry fee (50') from the place of beginning; THENCE easterly along the northerly boundary of Pazk Street to the place of beginning. 3. The Purchaser acknowledges that it has inspected the buildings on the property and accepts the existing conditions thereof and releases the Vendor from any claims relating to such existing conditions and this release shall survive the completion of this transaction. 4. The Vendor shall also grant to the Purchaser an easement to permit the Purchaser, at the Purchaser's cost to maintain, repair or replace the existing septic tank serving the Property which existing septic tank is located on abutting property owned by the Vendor until such time as municipal sanitary sewer service is available. 5. The Purchaser acknowledges that the title to the Property is encumbered by the registration of Instrument No. 16320 being a mortgage made by the former Township of Clarke, as mortgagor and Her Majesty the Queen in Right of Canada represented by the Minister of Defence Production acting through Crown Assets Disposal Corporation registered on October 19, 1954. On closing the Vendor shall not be required to discharge this Instrument but shall deliver [o the Purchaser, a statutory declaration of an Official of the Vendor that to the best of the knowledge and belief of such Official after conducting a review of the records of the Vendor that no claim for payment under the mortgage has been made in excess of twenty years. 6. Substantial damage means any damage for which the estimated cost of repair exceeds $10,000.00. The Purchaser represents and warrants that it is registered under the Excise Tax Act (Canada) for the collection of the Goods and Services Act and That its registration number is 8123978769. On closing the Purchaser shall deliver a certificate of an officer of the Purchaser confirming such registration and no Goods and Services Tax shall be collected by the Vendor in respect of the sale of the property to the Purchaser. The purchase price does not include any Goods and Services Tax to the extent that such tax is exigible.