Ontario Construction News staff writer
The City of Guelph is asking that a portion of the proceeds from the sale of a 20-acre parcel along Niska Road be directed toward community benefits as the property has been listed for sale as a residential development opportunity.
Mayor Cam Guthrie, on behalf of city council, has asked the Grand River Conservation Authority to join Guelph in requesting that the province allocate 30 per cent of the anticipated sale proceeds, or equivalent in-kind value, to benefit Guelph taxpayers.
The request follows the GRCA’s decision in July to declare the approximately eight-hectare parcel surplus.
In a letter to the GRCA board, Guthrie said the city had considered purchasing the property but determined it did not have the financial capacity to do so.
“The city formally requests, in alignment with city council direction, that the GRCA partner with the city to request of the Minister of Environment, Conservation and Parks an allocation of 30 per cent, or equivalent in-kind value of the anticipated proceeds of sale of the southeastern parcel of the Niska lands towards community benefit for Guelph taxpayers,” the letter states.
Currently zoned for low and medium density residential development, the property at 250 Niska Rd., near Pioneer Trail, is being marketed as a 20-acre residential development opportunity. Any future project would be subject to applicable planning and development approvals.
According to the City of Guelph, the GRCA acquired about 116 acres along Niska Road in 1977 for $300,000 for the proposed Hespeler Reservoir project, which was later deemed unnecessary.
The city said it contributed about 30 per cent of the purchase price through a municipal levy, while the province contributed about 60 per cent and the GRCA about 10 per cent. The city said its contribution did not give it an ownership interest in the property.
Guelph is seeking a portion of the sale proceeds to reflect its historical contribution and the community’s interest in the former Frank Kortright Waterfowl Management Area.
The city had previously attempted to protect the 20-acre parcel from development. According to the city, council directed staff in February to pursue an official plan and zoning amendment that would have redesignated the property for open space and park use.
The application was withdrawn in June after the GRCA threatened legal action, including a possible appeal to the Ontario Land Tribunal, according to the city.
Guthrie said in July that Guelph did not intend to purchase the property but wanted the sale to result in a community benefit.
Under the GRCA’s land disposition policy, the authority will select a preferred offer based on a combination of the highest value and the best terms and conditions for the authority. A 45-day public consultation period will follow before a draft transaction notice is prepared for board approval and public notification.
Meanwhile, the City of Guelph is continuing to work toward acquiring a separate 126.16-acre portion of the Niska lands from the GRCA. If the transfer is completed, the city said it will work with the GRCA and the community to restore the former trail network, provide public access and plan future uses for the property.
