Centre Wellington Township has come out ahead by $167,000 after its land swap agreement with Pearle Hospitality Inc.
The land swap was initiated by Pearle’s overall plans to develop lands along the south bank of the Grand River, across from the existing Elora Mill.
Prior to discussion, councillor Don Fisher declared a conflict of interest, as he owns property adjacent to the development, and abstained from the discussion.
The offer to purchase and sale agreement between Pearle Hospitality (Elora North Inc. and Elora South Inc.) and the Township of Centre Wellington was endorsed by council on Nov. 28 following a report from township CAO Andy Goldie.
He recommended council authorized him to sign the agreement of purchase and sale in the amount of $167,000.
Mayor Kelly Linton said the agreement is “something (council) heard about a while ago in closed session.”
Goldie explained the report brings forward the discussions between the township and Pearle Hospitality regarding:
– the Carleton Street parking lot, Victoria Street road right-of-way, property on Ross Street, Ross Street itself and the Walser building, all owned by the municipality;
– lands owned by Pearle adjacent to the LCBO store; and
– some small parcels on Price Street owned by the township and by Pearle.
Goldie said the sale price includes projected cleanup costs on the township’s Carleton property.
Background
Pearle Hospitality is currently involved in the redevelopment of the Elora Mill on the north side of the Grand River in downtown Elora. But this is merely the first phase of the overall project, which includes lands on the north and south sides of the Grand River.
Phase One includes the redevelopment of the existing Elora Mill into a luxury hotel and restaurant, the stable ruin into a spa, the redevelopment and expansion of the Mill cottages, and the Granary building into a banquet facility.
Pearle Hospitality is now finalizing plans to redevelop the former Little Folks property on the south shore of the Grand River in downtown Elora.
As part of its plans Pearle Hospitality has purchased additional properties along Ross Street and adjacent to the LCBO building and expressed interest in acquiring certain lands owned by the township to fulfil its overall redevelopment plans.
The properties being discussed are riverfront properties and all of Ross Street, including:
– the Walser building and property at 32 Ross Street;
– Victoria Street road allowance and municipal parking lot at 30 Carleton Place; and
– the Ross Street right of way.
As part of the agreement for the sale of municipal property to Pearle Hospitality, Pearle will sell to the township property on Clyde Street, adjacent to the LCBO and O’Brien Park for a price of $130,000. The property will be used to replace the public parking spaces lost (33) from the Victoria/Carleton municipal parking area.
The development costs to complete detailed design, cost estimates and implementation will be paid for by the township and Pearle Hospitality on a 50-50 cost share.
As part of the document, Pearle Hospitality will enter into a site plan agreement with the township within 18 months and complete construction within 60 months.
Pearle Hospitality will construct a public boardwalk along the south side of the Grand River at its own cost.
Pearle Hospitality, which shall re-convey properties to the township if it becomes insolvent, also agreed not to demolish the Walser building without township approval – and also to retain the chimney.
The public will continue to be able to use parking spaces at 32 Carleton Place until such time as the lands are required for development.
Councillor Kirk McElwain commented the new parking area by the LCBO had been identified as part of the Mill Street West improvements.
He asked if that was being paid for through the Jack Macdonald trust fund.
Goldie said the cost of that parking lot is being shared 50-50 with Pearle Hospitality and “the funds generated by this land sale will be used to complete the parking lot.”
Council agreed to the land sale agreement with Pearle Hospitality.
