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HomeMy WebLinkAboutPSD-075-02 ClfJIIDglOn REPORT PLANNING SERVICES DEPARTMENT Meeting: COUNCIL Date: Monday, June 24, 2002 Report #: PSD-075-02 File: SPA 2000-030 By-law #: Subject: RIDGE PINE PARK INC. - WILMOT CREEK COMMUNITY PHASE 6 Recommendations: It is respectfully recommended to Council the following: 1. THAT Staff Report PSD-075-02 be received; 2. THAT the Mayor and Clerk be authorized on behalf of the Municipality to execute a Development Agreement between Ridge Pine Park Inc. and the Municipality of Clarington which provides among other things for the transfer of lands for the Waterfront Trail that have certain interests and encumbrances registered against said lands; 3. THAT the by-law attached to Staff Report PSD-075-02 be approved by Council; and 4. THAT all interested parties listed in this report and any delegations be advised of Council's decision. Submitted by: Da i J rome, M.C.I.P..R.P.P. Director, Planning Services BR*L T*DJC*sh June 20,2002 Reviewed0'~--!-~ Franklin Wu Chief Administrative Officer CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905) 623-3379 F (905)623-0830 REPORT NO.: PSD-075-02 PAGE 2 1.0 BACKGROUND 1.1 Staff, in consultation with Ridge Pine Park Inc. has been working towards the completion of a Development Agreement for Phase 6 of the Wilmot Creek Community. This agreement will amend the 1981 Development Agreement between the former Town of Newcastle and Ridge Pine Park Inc. Incorporated. 1.2 A provision within the Phase 6 agreement stipulates that the lands to be provided as the parkland dedication are to be added to the lands that will form a portion of the Waterfront Trail that passes within the northerly portion of the Wilmot Creek Community. 1.3 The Municipality requires that all lands that are to be transferred must be in fee simple and free and clear of all encumbrances and restrictions. 1.4 Mr. Robert Doumani, legal counsel for Ridge Pine Park Inc. has written to the Municipality's solicitor (see Attachment 1) stating that the lands to be transferred as parkland dedication cannot be transferred free and clear of all encumbrances and restrictions. His client has been leasing sites for a term of twenty-one years less a day upon which a dwelling is erected. A large number of tenants of the sites have been registering the leases on title. Also a number of mortgages have been registered on title. Unfortunately the Land Titles office has been registering the leases and mortgages against all parcels in Wilmot Creek including the parcel in which the proposed waterfront trail is located although the trail is not part of the sites on which the individual houses are located. 1.5 Mr. Doumani has suggested that the registration of the above leases and mortgages create a timing problem for his client respecting the transfer of the Waterfront Trail lands to the Municipality if fee simple, free and clear of encumbrances and restrictions is required. When the trail is conveyed to the Municipality it will be placed in a separate Land Titles parcel and that will preclude future registration of leases and mortgages against the parkland dedication parcel. Ridge Pine Park REPORT NO.: PSD-075-02 PAGE 3 Inc. is prepared to undertake its best efforts to cause the removal of these restrictions including any mortgages of the leaseholders from the title of the parkland dedication either on turnover or expiry of the term of the lease, whichever occurs first. Ridge Pine Park Inc. estimates that all registrations could be removed within the next ten (10) to fifteen (15) years. 1.6 Following discussions with the Municipality's solicitor, staff would respectfully recommend that the Municipality accept this approach to resolve the transfer of the Waterfront Trail lands within Phase 6 of the Wilmot Creek Community, provided that the clause suggested by Mr. Doumani in his letter of June 19, 2000 is included as well as the following clause prepared by the Municipality's solicitor: "If any person entitled to the benefit of one or more these registrations indicates his intention to enforce or commence proceedings his priority rights against the Municipality, the Municipality may commence and purse the expropriation of all outstanding interests in the land shown as "Waterfront Trail" on the approved Phase 6 Site Plan at the cost of the Owner, including but not restricted to the compensation to the owners of such interests and the Municipality's reasonable legal and other expenses. Forthwith after written demand for payment is made by the Municipality to the Owner therefore, the Owner shall pay to the Municipality the amount invoiced to the Owner for reimbursement of such amount to the Municipality." 1.7 The Municipality's solicitor has reviewed and concurs with the recommendations of this report. 2.0 CONCLUSION 2.1 It is respectfully recommended that the Mayor and Clerk be authorized to execute the Development Agreement which contains provisions permitting the Municipality to accept a transfer of land for the Waterfront Trail that is encumbered by presently registered leases and mortgages subject to clause 24 of the agreement being amended as provided in the letters contained in Attachments 1 and 2. REPORT NO.: PSD-075-02 PAGE 4 Attachment 1 - Correspondence from Robert G. Doumani to the Municipal Solicitor Attachment 2 - Correspondence from the Municipal Solicitor Attachment 3 - Authorizing By-law ",1",1l''l .&.~ L:t::Jl!.IoI!:: .1.<<::' ~';I "'1'( H.LI"II:JJ ""NU .tICNl-l~ 1",1",.... ''1110 tlb.;l 1:>1:> TO ::lil6il637W1l416666 F'.02"e3 ATTACHMENT 1 .. iJl Aam & BERLIS w> _andse_ '-"''--~ Ilallen G. DolImoni 0Irtel: 41U8UOllO e.man:~~,,,,,," June 19,2002 BV FACSIMILE Our fiI. no. 63700 Dennis IleIf......, Banister " Sol1cItor , ~2500 130 Ad.~e street W. TClI'OIltO, Oritarla MSH 2M2 , Dear Mr. Hefferan: Rt: "4~ Creek . Ph.. . . Development AGreement ThlafoBows my letter of 7 June 1'or.Rrding to you a CDpy Df the Land TItIec abstract for !he parcels that c:amprise Wilmot Creek. ' ,AS )'OUknaw my c1len1leues Illes for . tenn Df twenty.one ye&rsles; 8 day upcln which a Cl'weIllng is erected. The tenants of the sites have been registering the Ieues on 1I1Ie. The land TItles aft'ic:e has I'eI:lIst8t8d the leases lIgainshll paroefs Including the parcel in which the PlVpCIS8d waterfnlnt trail is IllCIted even though thesw 81'8 located in Cl!her parcels and the nil does not Include any site. These reglsltodiu,,,,, make clallle 24 or the draft Phase Development ~t prablematical fram a Umln" pentpeCUye only. Once the waterfront trail Is conveyed 10 the Municipality It will be placed In a Iep8r1Ite parcel and that should preclude reglslr8tlan or leases against that partel. It is C1Ur Dllenr. 8llp8l'ience that, despite the IIInn of the Ieae. sites tum Oller on average every twelve years. My crl8nt 18 WIlling to undertake to use its best effor1s 10 cause the remowl of the reglabat!<<ls (including in II few Instances mortgages of !he lea8ehold Interests) from title to the trail on IuITlO\'ef' or 8ltJllty of the term whichever fiISt occur&. It Ia my clIenfs 8XplICtatlon that all regls1nltlona could be removed over the next ten to fifteen )'lIaIS. I bell8Ye !he foregoing suggestion PrOVides 8 praCfic:a/ 8OIution to an Issue that Is not the makIng of my diem, I believe the watBrfrant trail is one of the last outsf8nding matters to be re&oMld before the llgreement can be -.cut.lt' My client is anxious to rrio\le fOlWanl. It has a contractor ready to procUj and It must make a decision as to Whether it gees firm with II large number of agreements to lease by the end t1I this 1'llClnth, Bee Plooce, SulIll1IOO,lIox~, 1.111ay SlI8II" TOI'OIllll, 0nWr0, CaIlIda MSJ 2TB T: 41..1183.1500 F: 411.1&3.1515 -.............-... ~wffl~._,__ " , June 19, 2002 Page 2 In OI'der 10 expedite your consideration of lhla matter I set out below Trrf propos'ICIllCldilion 10 dal.lse 24 d the draft De'lelopment Agreetnlnt "Despite the foregoing. the Munlcipal'lIy acknOWledges lt1at a number of residential leases <and in a few.lnstanc:es mor1gagn Of Itle leasehold inl8r8stls) have been registered against the title to the lands set out In Schedule "E". The OWner u/1derUlkello use its best effoItlI to cause the reglatrations to be removed ftom title upon the expiry d the term or surrender of such leases. whichever &hallllrst occ:ur. On the basis of the Owner's undertaking, the Municipality agrees to looept the transfer of the lands de&plta such regis1ratlons.' , look forward to dIsCUSSing this proposal witI1 you as soon as possible. Yours very tnJly, - RGOIeb ::OIlMA\PCOOCSV1ZlllCllS\1 , I" ,"; . :i, II, >" .-:.' . .. ,.:E:':}:;' . :1 '-'~':\:, r~,::;;~'\' ,::;t:,:;',:;t .' """il:l31AU'f'l'I/EieJ;",,*i, ,- ':.: :.,~j: :~~, ::i '~J:,( ;.;';r..rl '~,~~~:,,;~j~:,;:.'}~-i'H' ~' ** TOTRL PRGE.03 ** . , .tou...!!Y!!'''' .~-::.'~~ ;i";c:: i'~"'i~,:i;::;' '. . ~; "'.,..,,.,.,."," ',~' JUN 20'02 12:25 FR ROBINS APPLEBY TAUB TO 7375~1905623" ATTACHMENT 2 DENNIS C. HEFFERON BarrIster & Solicitor Telephone (415) 360-3326 Facsimile (416) 868-0306 E-milll: dhefferonCilrobapp.eom Suite 2500 130 Adelaide Street West Toronto, Ontario M5H 2M2 June 20, 2002 BY FAX: 416-863-1515 Mr. Robert G. Downani Aird & Berlis LLP Barristers and Solicitors BCE Place Suite 1800, Box 174 181 Bay Street Toronto, ON MSl 2T9 Re: Ridge Pine Park Inc.: Phase 6 Development Agreement Thank you for your letters dated June 7.2002 with enclosures and June 19, 2002. Your proposed addition to clause 24 of the draft Development Agreement would have the Mwricipality exposed to a large nwnber of interests in the portion of the Trail to be transferred to the Municipality in fee simple. Your addition is not acceptable as it stands. However, in order to expedite the fmalization of this matter, your addition could be recommended to the Municipality if the following is added at the end of it: "If any person entitled to the benefit of one or more of these regisnations indicates his intention to enforce or commence proceedings his priority rights against the Municipality, the Municipality may commence and pursue the expropriation of all outstanding interests in the land shown as "Waterfront Trail" on the approved Phase 6 Site Plan at the cost of the Owner, including but not restricted to compensation to the owners of such interests and the Municipality's reasonable legal and other expenses. Forthwith after written demand for payment is made by the Municipality to the Owner therefor, the Owner shall pay to the Mwricipality the amount invoiced to the Owner for reimbursement of such amount to the Municipality." Please advise me as soon as possible whether this way of resolving the matter is acceptable to your client. JUN 20'02 12:26 FR ROBINS APPLEBY TAUB TO 7375"19056230830 P.03/03 Page 2 DCH:bg Yours very truly, (L..~ Dennis C. Hefferon c. Mr. David Crome ** TOTAL PAGE.003 ** . ATTACHMENT 3 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NUMBER 2002-_ being a by-law to authorize the entering into a Deveiopment Agreement with Ridge Pine Park Inc. and any Mortgagee who has an interest in the said lands and the Municipality of Clarington In respect of the development of Phase 6 of the Wilmot Creek Community WHEREAS the Council of the Municipality has enacted By-law 90-130 being a By-law designating ell lands located within the corporata limits of the Municipality of Clarington as a Slta Plan Control Area, a certified copy of which by-iaw has been registered in the Land Registry Office for the Registry Division of Durham (No. 40) as Instrument No. D405251: AND WHEREAS the Owner proposes to davelop Phase 6 of the Wilmot Creek Community and has requested the Municipality to approve the said development pursuant to the provisions of By-law 90-130: AND WHEREAS the Owner proposes to transfer lands to the Municipality. which will form a part of the Waterfront Trail located within the northerly portion of the Wilmot Creek Community: AND WHEREAS the Municipality will accept said lands to be transferred notwithstanding said lands are not free and clear of all leases and encumbrances: NOW THEREFORE the Council of the Corporation of the Municipality of Clarington hereby enacts as follows: 1. THAT the Mayor and Clerk are hereby authorized to execute, on beha~ of the Corporation of the Municipality of Clarington, and seal with the Corporation's seal, a Development Agreement between Ridge Pine Park Inc. and the Municipality respecting for the development of Phase 6 within the Wilmot Creek Community and certain other matters , 2. THAT the Mayor and Clerk are hereby authorized to accept on behalf of the Municipality the said conveyances of lands required pursuant to the aforesaid agreement. BY-LAW read a first time this 24~ day of June 2002 BY-LAW read a second time this 24th day of June 2002 BY-LAW read a third time and finally passed this 24" day of June 2002 John Mutton, Mayor Patti L. Barrie. MuniCipal Clerk