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HomeMy WebLinkAboutNorthside Business Park Land Pricing and Sales Conditions Policy COUNCIL POLICY CAPEBRETON Northside Business Parr REGIONAL MUNICIPALITY Land Pricing and Sales Conditions 1. Policy Title: Northside Business Park Land Pricing and Sales Conditions Policy. 2. Legislative Authority This policy derives its authority from Section 50 or Section 218 of the Municipal Government Act of the Province of Nova Scotia. 3. Short Title This Policy may be cited as the Business Park Pricing Policy. 4. Purpose (1) The Northside Business Park was created and continue to be managed and developed to foster job creation, investment, and commercial development to contribute to the economy of the CBRM. (2) The purpose of the Northside Business Parks Land Pricing and Sales Conditions Policy is to ensure the sale of land in the Northside Business Park clearly and directly supports the strategic economic development goals of the CBRM. 5. Objectives The objectives of the Northside Business Parks Land Pricing and Sales Conditions Policy are to: (1) Ensure land in the Northside Business Parks is sold and managed in congruence with Municipal Council direction. (2) Ensure openness, consistency and fairness in land prices in Northside Business Park. (3) Provide direction for the creation and regular updates of: (a) Schedule A— Northside Business Park Land Prices (i) A document that sets annual Business Park Land Prices, Lease Rates, and articulates circumstances in which deviations from the set prices may occur. (b) CBRM Application to Purchase (a Northside Business Park Lot) form; (c) CBRM Northside Business Park Lot Sales Process; and (d) The Purchase and Sale Agreement template. (4) Ensure the CBRM sells land in its Business Parks in a manner conforming to the Municipal Government Act. CBRM Council Policy— Business Park Pricing Policy Page 1 of 5 6. Scope (1) Land owned by CBRM within the Northside Business Park falls within the scope of this policy. (2) All CBRM and CBRM REN employees and contracted professionals involved in the sale of Northside Business Park land fall within the scope of this policy. 7. Definitions CAO means Chief Administrative Officer of the Cape Breton Regional Municipality. CBRM REN means the CBRM Regional Enterprise Network or equivalent organization, charged with conducting economic development promotion activities on behalf of the CBRM. Commencement of Construction means the pouring of the footings and foundations for the Development. Completion of Construction means complete the development, including building, required inspections and approvals,and additional items such as landscaping, paving and curbing,and fencing as required. Date of Closing means the date of the purchase of the lot parcel. Development means any erection, construction, alteration, demolition, replacement, relocation, or addition to any structure, and any change or alteration in the use of land or structures. Director of Economic Development means the Director of Economic Development for the CBRM Regional Enterprise Network (CBRM REN) or equivalent position. Minimum Construction Value means the minimum construction value that the CBRM requires Purchaser's of land in the Northside Business Park to commit to achieving. Public Street Any street or highway owned and maintained by the CBRM or the Province of Nova Scotia, including all deemed and common public highways pursuant to the Public Highways Act, excluding designated controlled access highways pursuant to said Act. Senior Paralegal means the Senior Paralegal of the Cape Breton Regional Municipality, or equivalent position. CBRM Council Policy— Business Park Pricing Policy Page 2 of 5 8. Statements of Policy (1) Lot Pricing: CBRM Staff will create and regularly update Schedule A of this policy to ensure that it: (a) Reflects fair market rates in compliance with the Municipal Government Act; and (b) Articulates instances where the Municipality will consider proposals and negotiate a fair market sale or lease price in compliance with the Municipal Government Act. (2) Forms and Processes:CBRM will create, regularly update marketing material,forms and processes to allow the sale of business park lots that are clear, understandable, and comprehensive. (3) Legal Agreements: CBRM will create and regularly update Purchase and Sale and other Agreements, processes, forms, and other items to ensure the following items are addressed: (a) Deposit (i) A deposit in the amount of ten percent (10%) is required as part of the purchasing process. (ii) The deposit shall be returned to the Purchaser,without interest, in the event that: 1. A Purchase and Sale Agreement is not signed; or 2. The CBRM fails to fulfil the Terms of the Agreement. (iii)The deposit shall be forfeited should the Purchaser fail to complete the sale in accordance with the terms of the agreement of purchase and sale in addition to any other rights, costs or damages that the CBRM may otherwise be entitled to. (b) Minimum Construction Value (i) The Purchaser must commit to a site development with a minimum construction value (not including the value of the land alone) determined appropriate to ensure the Municipality's interests in return on investment on business park operations and other economic goals are achieved. (ii) Notwithstanding Subsection (i), the CAO, while maintaining the spirit of addressing return on investment, is permitted flexibility to interpret what constitutes the total value of the investment required by a purchaser of lots in the Northside Business Park. Factors for consideration include employment creation, long term growth potential, compatible nature of the business, and related matters. The determination of value for purposes of Section 8 (Statements of Policy) shall be in the sole discretion of the CAO. (iii) Minimum Construction Value targets are to be required by a Purchaser and reflected in the Legal Agreements associated with any individual sale of Business Park Land. CBRM Council Policy— Business Park Pricing Policy Page 3 of 5 (iv) Minimum Construction Value will be included in Schedule A of this policy and will be reviewed and updated by the CAO as required. (c) Construction Dates (i) CBRM will compel any Purchaser to commit to a timeline for Commencement of Construction (see definition) for the entire Development, and Completion of Construction for the entire Development. (d) Options Available in the event of Non-Compliance (i) CBRM will ensure options in the Purchase and Sale and/or other Agreements that allow reasonable recourse in the event of Non-Compliance with the obligations listed above. These options must include at least one of the following conditions unless the CAO determines such options are not to the benefit of the Municipality: 1. A "buy-back option" whereby the Municipality can buy back the land in the event of non-compliance and/or 2. A "fee option" whereby the landowner pays a fee equal to the sum of all commercial taxes levied on the property as if it had complied with the original Minimum Construction Value. (ii) CAO approval is required to proceed with re-purchasing the land or for any changes to Purchase and Sale Conditions as laid out in a Purchase and Sale Agreement. 1. The CBRM may re-purchase the land if: • Construction dates are not met; • Minimum construction value is not met; and/or • Other situation-specific requirements are not met. (iii) If CBRM exercises the buyback option, the price paid for the lot will be equivalent to the purchase price less administration costs and any costs to return the lot to its original pre-purchased condition. (e) Release of Terms and Conditions of Sale (i) The purchaser may request to be released from the terms of the buyback agreement when the proposed building is roof tight(as confirmed by a CBRM building inspector). (4) CAO Discretion: CBRM will delegate negotiating authority to the CAO with respect to items not in specific conflict with this policy. (a) The CAO may negotiate and include additional items not in conflict with the specific provisions determined by Council above and determined appropriate for an individual Purchase and Sale Agreement after consideration of: (i) Legal advice; (ii) The best interest of the Municipality; (iii)The needs of the potential purchaser; and/or CBRM Council Policy— Business Park Pricing Policy Page 4 of 5 (iv)The spirit of Council's intent for the sale of Northside Business Park Lots. (b) The CAO may determine a fair market sale or lease price different than those shown in the Schedule A after receiving a proposal for use of the lands when lands: (i) Require a subdivision process prior to the sale; and/or (ii) Are more than 2 acres in size; and/or (iii) Do not front on a Public Road; and/or (iv) Do not have water and/or wastewater services available to the lot line when within the Serviceable Boundary; and/or (v) Have development constraints such as 1. Delineated wetland; 2. Geotechnical challenges; and/or 3. Other environmental challenges restricting the development potential of the site. 9. Roles and Responsibilities (1) The CAO retains ultimate responsibility for all Purchase and Sale Agreements and the conditions and obligations contained within them. (2) The Senior Paralegal will maintain adherence to this policy in all purchase and sale agreements and provide recommendations to the CAO with respect to individual agreements and the application of this policy. (3) All other Directors and Supervisors will: (a) Ensure adherence to this policy in all purchase and sale agreements. (b) Ensure advice from Legal Counsel is obtained as required. (4) The CBRM REN will: (a) Advise and support the Senior Paralegal and CAO; and (b) Ensure the policy is accurately reflected in all purchase processes, communications and marketing material produced by the CBRM REN for Northside Business Park Lots, (5) The Policy Owner(see Version Login Schedule A) is responsible for reviewing the policy as required for relevancy and potential updates, and sharing any updates with all those utilizing the policy. 10. Schedules (1) Schedule A— Land Prices and Minimum Construction Values Approved by Council November 9, 2021 CBRM Council Policy— Business Park Pricing Policy Page 5 of 5 "',"d edWe A to fl e CBRM Business Park Pricing F c ��icy: Land Prices and Minimum Ca, structia, VaWes N o rt s d e B L,'(,S s s L i-o. La ,d e s Eveleigh Subject to Subject to Subject to 2-20 15895980 Drive, 2021 Treed Eveleigh Drive Frontage. 10,926.522 117612 2.7 Market Value Market Value Market Value $150,000 $405,000 Subdivision Appraisal Appraisal Appraisal Eveleigh Treed Subject to Subject to Subject to 3-20 15895998 Drive, 2021 Eveleigh Drive Frontage. 13,354.638 143748 3.3 Market Value Market Value Market Value $150,000 $495,000 Subdivision Appraisal Appraisal Appraisal Eveleigh Treed Subject to Subject to Subject to 4-20 15896004 Drive, 2021 Eveleigh Drive Frontage. 10,521.836 113256 2.6 Market Value Market Value Market Value $150,000 $390,000 Subdivision Appraisal Appraisal Appraisal Eveleigh Treed Subject to Subject to Subject to 5-20 15896012 Drive, 2021 Eveleigh Drive Frontage. 7,689.034 82764 1.9 Market Value Market Value Market Value $150,000 $285,000 Subdivision Appraisal Appraisal Appraisal Eveleigh Treed Subject to Subject to Subject to 6-20 15896020 Drive, 2021 Eveleigh Drive Frontage. 9,307.778 100188 2.3 Market Value Market Value Market Value $150,000 $345,000 Subdivision Appraisal Appraisal Appraisal Eveleigh Treed Subject to Subject to Subject to 7-20 15896038 Drive, 2021 Eveleigh Drive Frontage. 8,093.72 87120 2.0 Market Value Market Value Market Value $150,000 $300,000 Subdivision Appraisal Appraisal Appraisal Eveleigh Treed Subject to Subject to Subject to 8-20 15896046 Drive, 2021 Eveleigh Drive Frontage. 8,093.72 87120 2.0 Market Value Market Value Market Value $150,000 $300,000 Subdivision Appraisal Appraisal Appraisal Memorial Treed, Memorial Drive Subject to Subject to Subject to 9-20 15894884 Drive, 2021 Frontage, 8,093.72 87120 2.0 Market Value Market Value Market Value $150,000 $300,000 Subdivision Appraisal Appraisal Appraisal CBRM Council Policy— Business Park Pricing Policy: Schedule A— Land Prices and Minimum Construction Values Page 1 of 3 Memorial Treed, Memorial Drive Subject to Subject to Subject to 10-20 15896053 Drive, 2021 Frontage, Flag Lot 2,4281.16 261360 6.0 Market Value Market Value Market Value $150,000 $900,000 Subdivision Appraisal Appraisal Appraisal Memorial Treed, Memorial ©rive Subject to Subject to Subject to 13-20 15895972 Drive, 2021 3,642.174 39204 0.9 Market Value Market Value Market Value $150,000 $135,000 Subdivision pp pp pp Frontage, Appraisal Appraisal Appraisal Memorial Subject to Subject to Subject to 14-20 15895964 Drive 2021 Treed, Memorial Drive 3,642.174 39204 0.9 Market Value Market Value Market Value ' Frontage, $150,000 $135,000 Subdivision Appraisal Appraisal Appraisal Memorial Treed Memorial Drive Subject to Subject to Subject to 15-20 15895956 Drive, 2021 Frontage, 3,642.174 39204 0.9 Market Value Market Value Market Value $10,000 $135,000 A Appraisal Subdivision Appraisal pp aisal Appraisal Memorial Treed, Corner Lot, Subject to Subject to Subject to 16-20 15895949 Drive, 2021 Memorial Drive and Hillier 2,832.802 30492 0.7 Market Value Market Value Market Value $150,000 $105,000 Subdivision Avenue Frontage, Appraisal Appraisal Appraisal Memorial Treed Hillier Avenue Subject to Subject to Subject to 17-20 15895931 Drive, 2021 8,093.72 87120 2.0 Market Value Market Value Market Value $150,000 $300,000 Frontage Appraisal Appraisal Subdivision pp pp Appraisal Memorial Treed Hillier Avenue Subject to Subject to Subject to 18-20 15895923 Drive, 2021 8,093.72 87120 2.0 Market Value Market Value Market Value $150,000 $300,000 Frontage Appraisal Appraisal Subdivision pp pp Appraisal Memorial Subject to Subject to Subject to 19-20 15895915 Drive, 2021 Partially cleared, Milker Avenue Frontage 5,260.918 56628 1.3 Market Value Market Value' Market Value ' Appraisal Appraisal $150,000 $195,000 Subdivision pp pp aisal Appraisal Memorial Treed, Hartigan Drive and Price and development obligations to be negotiated. 20-20 15896061 Drive, 2021 Eveleigh Drive intersection 95,101.21 1,023,661 23.5 The Cape Breton Regional Municipality is open to receiving proposals to use Subdivision Frontage. Large lot with this land enable the highest and best use for regional economic benefit. wet areas. CBRM Council Policy— Business Park Pricing Policy: Schedule A— Land Prices and Minimum Construction Values Page 2 of 3 Bulk Land, including Rail Eveleigh Spur. Pleasa Price and development obligations to be negotiated. nt Drive and 15793631 Hartigan Reserved for Rail and 368,264.26 3,963,960 91 Street The Cape Breton Regional Municipality is open to receiving proposals to use Drive Similar Strategic Business Ext, this land enable the highest and best use for regional economic benefit. Frontage and Industrial Development. N0R( I,iS 13E BJJS N ESSISA' RL K BL f,,,,,���, ai,d La ,d wit 13 e,,e o ie t C o sti a slei ic s Bulk d or Land with Development Description -------Liam Price Per Acre Wetland lands To be Negotiated To be Negotiated Delineated Watercourse lands To be Negotiated To be Negotiated Bulk Land (4 or more acres) To be Negotiated To be Negotiated VE IRS 0N L 0 G „d S e o 1„��� ,� Lb, I e ebl,d S C oI,d 1t o ,w L oV NumberVersion Amendment Description Proposed by (Policy Owner Approved by (CAO) Date of CAO Approval Date of Council Notification • 1.1 + Initial Policy based on research from (1) Tyler Mattheis, CBRM REN Marie Walsh November 9, 2021 November 9, 2021 other business parks and best Director of Economic practice across Nova Scotia. Development + Initial Pricing to be determined by an (2) Sheila Kolanko, Senior independent appraisal. Paralegal, CBRM CBRM Council Policy— Business Park Pricing Policy: Schedule A— Land Prices and Minimum Construction Values Page 3 of 3