A restaurant that served generations of kids and parents ice cream, hot dogs, and hamburgers was razed on June 4.
The restaurant had been closed for some time and, according to a report to the Grand River Conservation Authority Board, it was in dire need of repairs if it was ever to be rented to someone again.
At its meeting last month, the board approved a recommendation that it demolish the restaurant building on the East Part of Lot 6, Concession 3, at 8278 County Road 18, known locally as Our Place Family Dining.
The reported stated the building was adjacent to the entry of the Belwood Lake Conservation Area, and recently vacated by tenants who operated a family restaurant there.
It also stated, “The structure needs considerable investment to bring it to a level where a new tenant could be found, and financial analysis suggests that future income will not recover the costs of this investment. Lacking any other viable options, staff are recommending demolition of the structure.”
The former Chalk residence was purchased by the Grand River Conservation Authority (GRCA) in 1971 due to its proximity to the Shand Dam and the entry to the Belwood Lake Conservation Area. The building is estimated to have been built in the late-1950s. At the time of purchase, it served as a combination residence and general store.
Following acquisition by the GRCA, it was converted to a restaurant and a series of tenants operated family style restaurant businesses out of the facility under annual leases. A restaurant was considered to be the most compatible use for the structure given its relationship to the lake.
But the final tenant had financial difficulties and no one appeared interested in renting it.
GRCA staff identified considerable improvements required to prepare it for lease.
Required renovations include entry and exit improvements, ventilation, washrooms, windows, electrical upgrades, and replacement of the current well. Further, it would require a new septic system and roof within the next seven years.
The GRCA’s construction consultant conservatively estimated the cost of immediately required improvements at $72,300. Staff conducted a ten year financial analysis of the facility that estimated income against current and future expenses that would mean an operating loss of $20,300 at the end of the ten year period.
Further, a long-term lease would reduce the GRCA’s control over the site, plus require approval by the Ministry of Natural Resources, requiring a complex set of approval steps.
Staff also considered converting the place into a residential dwelling, but felt the location was not desirable.
They stated, “This will free the GRCA from having potentially incompatible businesses adjacent to the Belwood Lake Conservation Area. Also, removal of the building will allow for the eventual expansion of the Conservation Area’s entry drive, which is currently identified as an operational concern by staff.
The GRCA obtained three bids for the demolition work, and gave the job to the lowest bidder, Zehr Demolition, at $16,950. The project was funded from the current property operating budget. The property is assessed under a commercial tax class by the municipality, and municipal taxes for 2009 were $3,452.
The GRCA will now apply to the Municipal Property Assessment Corporation to reassess the property, and the GRCA hopes to see an annual reduction of $2,800 in municipal taxes.
