The URL can be used to link to this page

Home My WebLink AboutFND-014-14 Clar-ington REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: June 23, 2014 Resolution#:�,� ��a�� By-law#: Report#: FND-014-14 File#: Subject: SITE CLEANUP- 72 '/2 SCUGOG STREET RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-014-14 be received; 2. THAT funding to an upset limit of $90,000 be approved from the Rate Stabilization Reserve Fund for fuel tank removal, soil removal and record of site condition related costs to clean up 72 '/2 Scugog Street, Bowmanville; and 3. THAT Council declare the property municipally known as 72 '/2 Scugog Street, Bowmanville, surplus and that staff be directed to take steps to sell the property in accordance with Surplus Lands By-Law 2011-011. 1 Submitted by: c Reviewed by' ancyjTylor, B ,C A,CA, Franklin Wu, Director of Finance/Treasurer Chief Administrative Officer NT/hl CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 REPORT NO.: FND-014-14 PAGE 2 1.0 BACKGROUND 1.1 As Council is aware, 72 1/2 Scugog Street, Bowmanville is the site of a former gas station. The property is sometimes referred to as the Matthews property, although the property has not been in their ownership since 1997. The site was part of bankruptcy proceedings and has been abandoned for a number of years. It has been effectively abandoned with no tax payments received since 1991. 1 .2 Many attempts have been undertaken during this history to address concerns on the site and deal with accumulating tax arrears along with various property standards orders and actions. 1.3 A tax sale process was undertaken in 2007 by way of public tender with no bids received. A geophysical survey and Phase I Environmental Site assessment was done in September, 2008. A Phase II Environmental Site assessment was done in December, 2008 which established that the fuel tanks are still existing underground. 1.4 Again in April, 2012 a tax sale process was undertaken with no bids received. Subsequent to this, Council approved taxes to be written off as allowable under the Municipal Act following a failed tax sale, in order to improve the viability of a future sale. The objective has always been to undertake efforts to return the site to a productive condition where taxes were being appropriately generated and paid pertaining to the use of the site. 1.5 In a final tax sale attempt in October 2012, a bid was received through the public tender process, but was subsequently forfeited as the bidder did not opt to finalize the purchase. 1.6 Due to numerous unsuccessful attempts to resolve the issue through the tax sale process, and in an attempt to find some closure to this longstanding issue, a further updated Soil and Groundwater Summary was requested since the 2008 scope of work did not include the assessment of groundwater quality through monitoring wells or groundwater observation. Since 2008, the Ontario Ministry of the Environment revised the soil and groundwater site condition standards used to assess the environmental quality of a property. 1.7 As a result of the conclusions of the further study as well as the desire to resolve this longstanding issue for the neighbours and to put the site back into productive use, the property was vested in the Municipality's ownership on April 17, 2014 prior to the deadline under the Municipal Act pertaining to failed tax sale proceedings. REPORT NO.: FND-014-14 PAGE 3 2.0 SITE CONDITION 2.1 Based on the most recent study undertaken, there is soil impacts requiring management. It is estimated that the cost of removal of the impacted soil to a registered landfill would be in the order of $66,000. Some soil may be suitable for reuse. This would be determined through a soil management plan prior to excavation. 2.2 No groundwater quality issues were present that required actions to be undertaken. 2.3 Four underground storage tanks are present on the site and would need to be removed. No infiltration into groundwater is suspected. 2.4 Observation wells need to be properly decommissioned. 2.5 A Record of Site Condition should be obtained to facilitate the future sale of the site. This would likely require an updated Phase II ESA's after cleanup 3.0 COMMENTS 3.1 The objective of this report is to obtain authorization for financing to undertake the necessary cleanup activities on this site. The applicable purchasing processes would be utilized to obtain the necessary services to clean up the site. More detailed costing would be determined as authorized contractors are retained for the various activities. 3.2 Ultimately if the site is remediated and a Record of Site condition is obtained, the sale of the site would be undertaken, with appropriate authorization. It is anticipated that the sale proceeds for the site would generally equate to the cost incurred to clean up the site. This would allow for the property to be returned to use with future taxes then generated on the property. 4.0 CONCURRENCE 4.1 This report has been reviewed by Andy Allison, Solicitor who concurs with the recommendations. REPORT NO.: FND-014-14 PAGE 4 5.0 CONCLUSION 5.1 The site cleanup and subsequent sale of this property would produce several benefits. The cost to clean up is reasonably expected to be recovered through the sale, neighbouring properties would no longer have concerns with respect to the site, further site deterioration would be prevented, the site would return to active use and generate its appropriate share of future taxation to the benefit of the municipality, and a long standing issue would come to a resolve whereby a contaminated site is no longer an issue of concern for Council. CONFORMITY WITH STRATEGIC PLAN — The recommendations contained in this report conform to the general intent of the following priorities of the Strategic Plan: (Place an "X" in the box for all that apply) Promoting economic development X Maintaining financial stability Connecting Clarington X Promoting green initiatives Investing in infrastructure Showcasing our community Not in conformity with Strategic Plan Staff Contact: Nancy Taylor, Director of Finance/Treasurer Attachments: Attachment 1 - Property Location Map List of interested parties to be advised of Council's decision: none N Property Location Map (Bowmanville) 82 • 93 • 10 • EDSALLAVENUE O O 76 89 REHDERAVENUE v • • m •85 K Sturrock Avenue ¢pE RE AV N v 74 i� •81 v • rrte^^ � J CONCESSION S�REET WEST LU w U 7977 z C/) _ <�y G � roNS N2 72 Odell Street • ® Subject Property 75 D 70 • n 73 m 68 • RE 5.4 0 721/2 Scugog Street z 71 0 • O .p