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HomeMy WebLinkAboutLGS-010-23Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: February 27, 2023 Report Number: LGS-010-23 Submitted By: Rob Maciver, Deputy CAO/Solicitor Reviewed By: Mary-Anne Dempster, CAO File Number: L4000-10-64 Resolution#: JC-025-23 By-law Number: Report Subject: Durham-Hospice Clarington Recommendations: 1.That Report LGS-010-23 and any related delegations or communication items, be received; 2.That the Deputy CAO/Solicitor be authorized to execute an amendment to the agreement dated April 23, 2021, between Durham Hospice-Clarington and the Municipality to extend the Construction Commencement Date to December 31, 2023. 3.That all interested parties listed in Report LGS-010-23 and any delegations be advised of Council’s decision. Municipality of Clarington Page 2 Report LGS-010-23 Report Overview That the agreement dated April 21, 2021, between Durham Hospice-Clarington and The Corporation of the Municipality of Clarington be amended to extend the Construction Commencement Date from December 31, 2022 to December 31, 2023. 1. Background 1.1 On January 19, 2018, Council approved Report CAO-022-18 entitled, “Potential Locations for Durham Hospice-Clarington”, which was passed by resolution C-109-18 and which stated Council’s intention to donate land to Durham Hospice-Clarington at 1785 Cobbledick Road, Newcastle (the “Property”) for the purpose of constructing a hospice facility. 1.2 On April 21, 2021, the Municipality entered into an agreement with Durham Hospice - Clarington to transfer the Property to Durham Hospice-Clarington (the “Agreement”). 1.3 Pursuant to the Agreement, Durham Hospice-Clarington was required to commence construction of the building by December 31, 2022, failing which the Municipality could exercise the right to have the Property reconveyed . 1.4 In the intervening time period, various economic factors have prevented Durham Hospice-Clarington from commencing construction, and the date has now lapsed. 1.5 Durham Hospice-Clarington has requested that the date be extended by one year to December 31, 2023. There has been progress in the last several months with fundraising and the site plan application for the hospice, and it is anticipated that construction can begin before the end of 2023. 2. Financial Considerations Not Applicable 3. Concurrence This report has been reviewed by the Director of Planning and Infrastructure Services who concurs with the recommendations. Municipality of Clarington Page 3 Report LGS-010-23 4. Conclusion It is respectfully recommended that the Deputy CAO/Solicitor be authorized to execute an amendment to the Agreement dated April 23, 2021, to extend the Construction Commencement Date to December 31, 2023. Staff Contact: Robert Maciver, Deputy CAO/Solicitor, 905-623-3379 ext 2013. rmaciver@clarington.net. Attachments: Attachment 1 – Agreement of Purchase and Sale – Paragraph 11.01 Interested Parties: The following interested parties will be notified of Council's decision: Durham Hospice-Clarington Attachment 1 to Report LGS-010-23 Agreement of Purchase and Sale – Clarington and Durham Hospice-Clarington, April 23, 2021 SECTION 11 RIGHTS OF RECONVEYANCE 11.01 The Purchaser covenants and agrees that it shall have commenced the construction of the Purchaser’s intended building on the Property on or before December 31, 2022 (the “Construction Commencement Date”). For clarity, commencing the construction of the Purchaser’s intended building on the Property means the commencement of physical works on the Property directly related to the construction of the building. In the event that the Purchaser has not commenced the construction of the Purchaser’s intended building on the Property by the Construction Commencement Date (or such other date as the parties may have mutually agreed to in writing to extend the Construction Commencement Date), then the Vendor shall have the option, to be exercised by the Vendor within one hundred and twenty (120) days after the Construction Commencement Date by delivery of written notice to the Purchaser (the “Construction Commencement Reconveyance Notice”), to have the Property reconveyed from the Purchaser at no cost (the “Construction Commencement Reconveyance Transaction”).