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HomeMy WebLinkAboutWD-11-86lxl TOWN OF NEWCASTLE REPORT File # 16.7.153. Res. # 'j a By -Law # CONFIDENTIAL MEETING: JANUARY 13th MEETING OF COUNCIL DATE: JANUARY 13, 1986 REPORT #: WD -11 -86 SUBJECT: SUPPLEMENTARY INFORMATION RELATING TO REPORT WD -6 -86, CONVEYANCE OF TOWN -OWNED LANDS EAST OF DURHAM ROAD 57 AND SOUTH OF THE CPR TO MARY McEWEN FILE #: B -14 -1 RECOMMENDATIONS: It is respectfully recommended: I> That this report be received for information; and, 2. That based upon Council's assessment of this supplementary information, the recommendations of Report WD -6 -86 be adopted subject to the following: a) Recommendation number 4 being replaced by "That a phased payment plan be denied and the selling price of $3200 plus costs be paid upon completion of the transaction "; b) Recommendation number 5 being modified as follows: "That an easement over all of Part 2 in favour of the Newcastle Hydro Electric Commission be included in the transaction ". ....2 Page 2 Report No. WD -11 -86 REPORT: When Council considered Report WD -6 -86 a number of questions were raised such that the report was referred back to staff for further information. The following summarizes such questions and further findings. i) What is the zoning and building potential for the lot? At the time of the 1978 discussions, the general residential zoning did not provide for unserviced lots in an "R" Zone and since water and sanitary services did not exist in the area, the lot was considered non - conforming. Thus there was virtually no potential for building upon it. Presently, the land is zoned residential and under current legislation, the only constraints to it being used as a building lot are Health Unit approval for a well and septic system, an entrance permit from the Region, and an easement to accommodate overhead Hydro lines. However, this latter factor all but eliminates a suitable building envelope, since it would encompass about 1/3 to 1/2 of the parcel. The attached plan shows the Hydro Easement which would be required. To preclude any possibility of a building permit, the Hydro Easement should be placed over all of Part 2. is the appraised value of $3200 still applicable? The original appraisal, attached hereto, considered various factors including sales of similar lots,and established a value of $1.47 per square foot discounted to 25% for addition to a residential lot. The Region has just been contacted to determine the validity of the 1978 appraisal, and advised that the estimated increase in value would be about 50 %. Thus a re- appraised value could be as much as 8730 sq.ft. @($1.47x1.5)x25% = $4812., say $4800. However, depending upon the discount for the Hydro easement the original appraisal may still be valid. The only true method of determining this would be to perform a new appraisal, which could cost between $500 and $1000. ....3 Page 3 Report No. WD -11 -86 What other uses could the lands be put to? In considering the McEwen request and a draft plan for the lands to the rear, this aspect was considered. The rear triangular portion of Part 1 was to be conveyed to the developer to complete a lot, and the remainder of Part 1 was to be provided for a walkway. With these commitments made, the land has no other potential. iv) Other considerations: a) It may be felt that the whole parcel (Parts 1 & 2) could be used for a building lot, to be disposed of by the Town, however, its potential is low, especially due to the fact that almost the whole frontage on Durham Road 57 is blocked by the bridge over the CPR and steel beam guiderail. Another access to Durham Road 57 at this location would be extremely dangerous and they would likely object to issuance of an entrance permit. b) The McEwens are presently utilizing part of the lands as a parking and storage area and have been maintaining the area. Thus, depending upon how long they have been making use of the land, they could claim it by adverse possession after 10 years. It is noted that the McEwen's solicitor has requested phasing of payment over a three year period. The Clerk advises that from a legal viewpoint such an arrangement could place the Town in a precarious situation should there be default on the part of the McEwens. This has happened in another municipality, therefore, the phased payment plan should not be accepted. ....4 Page 4 Report No. WD -11 -86 Having considered the above as raised by Council's concerns, it is recommended that the appraised value remain as established in 1978 subject to the entire parcel having an easement over it in favour of the Newcastle Hydro Electric Commission, and that phasing of payment not be considered. Report WD -6 -86 is attached for reference. Respectfully submitted, 3 ' R.G. Dupuis, Eng., Director of Public Works. RGD:jco January 8, 1986. Attachment 20 i / t9 / /'S / `•'- ` .--_ _ ph/ _ � \ / � �� � III Za 4 o ao co to N tn / I o �.y M m N _ 1N 40 I N 15 5 ho, 1_ �'2 . °s, 28 i t. � o ,L ®� C,4 12.5fl d _ CC) CY) _— - -- - — ZG oeozi-N 4r- 10 - ,y A .1 J z 1 � � i A P P R A I S A L R E P O R T PART LOT 14, CONCESSION I TOWN OF NEWCASTLE (formerly Bowmanville) PREPARED FOR THE TOWN OF NEWCASTLE PREPARED BY THE REGIONAL MUNICIPALITY OF DURHAM LAND PURCHASE DIVISION THE REGIONAL MUNICIPALITY OF DURHAM WORKS DEPARTMENT W.A.TWELVETREES, P.Eng. / Commissioner of Works 105 CONSUMERS DRIVE, P.O. BOX 623, WHITBY, ONTARIO L1N 1C4 TELEPHONE: (416) 668 -7721 The Town of Newcastle Municipal Office Hampton, Ontario Attention: Mr. J. Dunham Director of Public Works Dear Sir: As per your request of 1978 04 25 an investigation has been carried out to determine the market value of the herein described lands. The attached report contains an analysis of this investigation and the resulting conclusions. The market value of the lands described herein as of 1978 05 08 is estimated to be $3,200.00. Respectfully submitted, ,v G.L. Post GLP /wg Land Purchase Division Attach. 4- � I Ln CuT 15 ! LOT 14 ell i i 1 / 0 <6e`0�\bl ov a5 I \100 /C cc, � CT' �I a�Ud�O� Remainder of Lands COO" conveyed to fgrmer NA\ol5 I Town of Bowmanville i dog j / _ N �,A06 by Inst. #8040, Area 0.4 ± Acres CAUTION' i PURPOSE OF APPRAISAL To estimate the market value of the herein described lands for purpose of disposal by the Town of Newcastle. DATE OF APPRAISAL 1978 05 08 LIMITING CONDITIONS No responsibility is assumed for matters which are legal in nature, clear and marketable title is assumed. Legal descriptions and surveys furnished by others are assumed to be correct. The information in this report supplied by others is believed to be correct, however, no responsibility is assumed for its accuracy. The Appraiser by reason of this report is not required to give testimony or attendance in Court, or any Governmental hearing with reference to the properties in question. LEGAL DESCRIPTION OF PROPERTY Part Lot 14, Concession 1, Town of Newcastle (formerly Town of Bowmanville). PROPERTY RIGHTS APPRAISED The property rights appraised are those in fee simple interest, subject to the usual Municipal and Governmental regulations effectinq the use of lands in the area. ZONING The subject property is designated as a closed road allowance, and as such would be reserved for public use. However, for the purpose of this evaluation the zoning is treated as though it is residential in conjunction with the adjoin- ing lands. The adjacent lands are zoned (R) General Residential and as there are no provisions in the by -law for unserviced lots in an R zone the adjoining lots are considered to be non conforming. SERVICES AND UTILITIES The subject property is unserviced by sanitary sewers or watermains. Existing services include telephone and hydro. Fire protection is provided by the Bowmanville Fire Department, and police protection is provided by the Durham Regional Police. DEFINITION OF MARKET VALUE Market value is that mount that the land might be expected to realize if sold in the open market by a willing seller to a willing buyer. DESCRIPTION OF SUBJECT PROPERTY The subject lands are part of the old road bed and are slightly lower than the existing road, but about the same elevation as the adjoining land to the south. The land immediately north drop off sharply down to the elevation of the C.P.R. lands. The lands are 170 ft. deep by 51.4'± wide with 60 ft. frontage on Regional Road No. 57. HIGHEST AND BEST USE The highest and best use of a property is that use which will produce the greatest net return to an investor over a given period of time, bearing in mind that the reference to net return is not limited to monetary advantages, but may also be in the form of amenities. There is no provision in the existing zoning by -law for the development of property in an R zone without sanitary sewers and water. Also it is highly unlikely that a permit could be obtained for an entrance unto Regional Road No. 57. The highest and best use of the subject property is therefore limited to future development land or the value it would contribute to the HIGHEST AND BEST USE (cont'd) adjoining lot. The location of the property is such that develop- ment is estimated to be some time away and would therefore require substanced discounting to arrive at to -days value. It is therefore estimated that the highest and best use of the subject property is the value that it would add in contribution to the adjoining lot. METHOD OF VALUATION In estimating the market value of this property it is first necessary to estimate the value of the adjoining lots as though vacant. This is done by the market data approach where it is necessary to gather sales of similar properties that have sold or are for sale, and analyse and compare these to the subject property making the necessary adjustments to reflect any dis- similarities. After estimating the market value of the adjoining lots a square foot rate is established for residential lots in this area. This rate is then discounted because of location and lack of accessibility etc. to estimate the value they would add to the adjoining lands. N7 AT TT A rPT(1T�T The following is a summary of six sales of vacant residential lots that indicate that the market value of a single family residential lot in the Town of Bowmanville is $22,000. SALE N0. 1 Inst. No. 80611 This sale is located on the east side of Waverly Road just south of King Street. It is a flat lot of about 6,500 sq.ft. and is about the same elevation as the road. The lot sold in November of 1976 for $20,725.00. After taking into consider- ation the time and location, the adjusted price reflects $22,000.00. SALE N0. 2 Inst. No. 84893 This sale is located on the east side of Rhonda Avenue just north of Doreen Crescent, in Waverly Gardens. This lot contains 5940 sq.ft. and slopes down from the road suitable for a backsplit. It sold in August of 1977 for $21,000.00. The adjusted price for this sale reflects $21,500.00. SALE N0. 3 Inst. No. 79586 This sale is located on Burk Court about 1/2 mile north of the centre of Town. This is a lot of about 7,000 sq.ft., slightly higher than the elevation of the road. It is presently improved with a new brick bungalow. It sold in September of 1976 for $25,800.00. The adjusted price for this lot reflects $22,700.00. SALE NO. 4 Inst. No. 81024 This sale is located on Saunders Avenue, a short distance from Sale No. 3. The lot slopes down- ward slightly from the road, and is presently improved with a new backsplit. It sold in January of 1977 for $26,000.00. The adjusted price for this sale reflects $22,300.00. SALE NO. 5 Inst. No. 77316 This sale is located on the west side of Waverly Road about 600 ft. north of Lawrence Crescent. This is a vacant lot of approximately 10,000 sq.ft. The lot is slightly lower than the road. It sold in April of 1976 for $20,500.00. The adjusted price of this sale reflects $22,000.00. SALE NO. 6 Inst. No. 77318 This sale is located approximately 1200 ft. north of Lawrence Crescent on the west side of Waverly Road. this is a vacant lot slightly lower than the road. It sold in April of 1976 for $20,500.00. The adjusted price reflects $22,000.00 After investigating and analysing the above sales and making the necessary adjustments it is estimated that the market value of a residential building lot in the area of the subject is ($22,000.00) twenty -two thousand dollars. As the average area of these lots is 15,000 sq.ft. this is equal to $1.47 per sq.ft. Investigation of the sales also VALUATION (cont'd) indicate that increasing the size of a residential lot does not significantly increase the price as can be evidenced by sales 3 and 4 where they were both located in the same area and one was double the size of the other and only sold for $200.00 more. However, if it is desirable to have a larger lot and adjacent land was not available then it would be necessary to pay real estate fees etc. to acquire another lot, if one could be found. Therefore it is advantageous to an owner to be able to purchase adjoining lands. As the subject property can not be used as a separate lot because of access and they are located next to the railway tracks, it is estimated that 250 of the established residential rate would be a fair market value for addition to an adjoining lot. The market value of the subject property is therefore estimated as follows: 8,730 sq.ft. @ 1.47 /sq.ft. X 25% _ $3,211.22 Rounded to $3,200.00 This is equal to $16,000.00 per acre which is about the market value of future residential land, which is the only alternative use of the property, if not sold to the adjoining owner. MEET I NG: DATE: REPORT #: SUBJECT: oI TOWN OF NEWCASTLE REPORT File # l . 153 Res. # _ By -Law # — THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE JANUARY 6, 1986. `\ WD- 6 -86 FILE #: CONVEYANCE OF TOWN -OWNED LANDS EAST OF DURHAM ROAD 57 AND SOUTH OF TH C.P.R. TO MARY McEWEN. n6P� RECOMMENDATIONS: CP ,l �A;� It is respectfully recommended: 1. That this report be received; and, ©� 2. That Council reaffirm former Council resolution #W- 147 -78 approved on June 19, 1978 which stated: "That we accept the appraisal and dispose i of the land in question at the appraised value "; and 3. That staff be directed to take all necessary steps to arrange for completion of the transaction; and, 4. That a payment plan which would allow phasing of the land value as appraised plus costs over a three year period be a component of the transaction; and 5. That an easement in favour of the Newcastle Hydro Electric Commission be included in the transaction. 1 ....2 Page 2 Report No. WD- 6 -86 REPORT: vl -(0G In September, 1977, the Town received a request from solicitors acting on behalf of Mc Ewen for disposal of the subject lands to them. Such lands are shown on the attached plans. After considerable discussion and deliberation an appraisal was secured and a price agreed upon. Resolution W- 147 -78 confirmed the arrangements to be made. In short the lands were to be conveyed to Mc Ewen for an amount $ 3200.00 plus costs. The attached letter indicates the owner's concurrence with same. For certain reasons the matter was never concluded and has remained in abeyance until now. Mrs. Mc Ewen is now anxious to resolve the matter. From the Town's perspective, circumstances have not changed and it would be appropriate to proceed with the transaction. Mrs. Mc Ewen's husband has since passed away and as indicated through her solicitor is desirous of phasing payment of the costs involved over a three year period. This is possible and maybe accommodated through methods such as suggested by the solicitor. Staff, through the Town's solicitor can make the necessary arrangements to ensure that the Town's interests are protected. Finally, through the earlier discussions it was determined that a Hydro line traversed the lands in question and therefore that an easement would be required to allow for construction and maintenance. Final arrangments will have to take this into account. Having considered the history of this matter it is recommended that the Town proceed as suggested. Respectfully submitted, �. R. G. Dupuis, P. Eng., Director of Public Works. RGD:mev December 24, 1985 Corporation of the Town of Weweaatle 40 Temperance Street Bowmanville, Ontario L 1C 3A6 Attention: Garnet B. Rickard, C.M. Dear Sir: October 30 , I U� re f °Iar y I-icEwen purchase of road allowance I am in receipt of a letter dated October 2, 1985 addressed to Mrs. Mary HcEwen `with respect to her property at 2 Martin Road in Bowmanville. My client is desirous of purchasing the property for the sum of $3200.00 which I understand is its appraised value. Mrs. McEwen would purchase the property from the Town on the following terms and conditions: the sum of $1000.00 being paid in year one, the sum of $1000.00 being paid in year two and a sum of $1 200.00 being paid in year three. I would request that a Transfer of the Property be prepared to be delivered to Mrs. McEwen in return for a mortgage against the lands in favour of the Town of Newcastle or such other form of security as the Town may require. I would appreciate receiving your comments. /jh Yours very truly, Carrol A. Dizenbach /t i s i� King 5 • 4 C�r i — Ud6Cel Nun"Oet HjghvVCY Lo 05 LOT 14 I diver','c 60 00 CONCESSION L4 VO CA(j T If r. '-IIS PLAN IS PREPARED PROM REGISTRY OFFICE OFFICE RECORDS ONLY AND 13 Nor To BE ISTRUED AS A PLAN OF SURVEY C) J \ CI lot ti a z yp ��,✓ cJ;�`` Z moll LLDJ a � � (', g = N g 000.. -' i Q) z t J, Q z MA 21! �,• � `i. i! h 't i , ,j1 2 �T. �.t I�. � �h �4jf iM ��r'� I'�i.�K. 1 iF � 1�J, �Y� �.,,, , i',,'z ! ,`. � '�, i1:• .(`. .! � x,^^^"`444 ?� Y i. R. au'2=¢L r N--- ,-J To the Corporation of the Town of Newcastle Public L•lorks Department, October 24th 1978. Hampton, Ontario. Attention; Mr. J. Dunham Director ne; Old Hi hwa -No. 2-..Mr- and Mrs. J. L. McFwen Dear Sirs; This serves to specifically confirm our of Newcastle agreement to purchase from the Town our own landst(�outhe north side) the lands immediately abutting of Martin Road, j located on the east side -the said lands being so purchased of Highwa y ;r`2 being the subject matter of Public COOncilcJunetl9th resolution #w- 147 -78 (approved by $320o.00-provided that 1978) for the sum of duly closes within a reasonable period such transaction that the title currently held of time and provided by the said Town is good and marketable with title, and no liens or no qualifications respecting The lands shall be at least depth. t encumbrances of and yP e, d and at least frontage on Ilartin Roa ��✓� 60 feet of � ,' e further agree to pay the Town its urvey $233.2n costs of $99.50Vand appraisal costs of plus the legal connection with this transaction the tranaction provided costs in connection with same are reasonable. �J of October ��� 1978. Dated at Newcastle (Bowmanville) this�j /day C/ R E (7, r' ' . • I — #hJ L. me Ewen NOV 1 1978 TOWN OF NEW,', . , "- L"�i_Jz6 -. Annette McEwen J