Council here is waiving its first right of refusal regarding the sale of 800 Glengarry Crescent in Fergus. The property is within the industrial section of northern Fergus.
Township planner Brett Salmon explained that when the town of Fergus sold land in its industrial park, the agreement of purchase and sale included the right of first refusal in the resale of the land if the owner was selling the property without having constructed a building on the property.
He said this property was first sold by Fergus in the late 1980s or early 1990s. Further, in 2008, the township was asked to waive its right of first refusal in order to permit the sale of a parcel of property within the Fergus Industrial Park. At that time, council agreed.
Since then, the property has come up for sale again, and the real estate lawyer had realized this right of first refusal remained on the property.
Salmon explained the main purpose is to ensure the property would be used for a ‘dry’ industry not a large water or wastewater user. In this instance, the proposed use is for outdoor storage for a local masonry contractor. The site is fenced and there are no immediate plans to construct a building.
Salmon said the main issue was whether an industry used large amounts of water or created large amounts of waste water. He said township staff are satisfied that it is appropriate to waive the right of first refusal and allow the sale to proceed.
Councillor Fred Morris asked if this process needs to be repeated every time the property is sold.
Salmon said the process is repeated each time the property is sold – until a building is constructed on the lot.
“This [policy] only affects vacant land.”
Councillor Steven VanLeeuwen said that looking at this from an economic development standpoint, he questioned restrictions on who could purchase a property.
At the same time, he questioned whether a contractor’s yard might be the best use of the industrial property. He said this is serviced industrial land at a time when there is a shortage of industrial land in the municipality.
“From a business plan, it is a poor use of the property.”
Salmon said in the review, one of the issues to be examined is whether the municipality should be interfering with the free market approach.
He noted this particular property had been vacant for a number of years.
Salmon added that a heavy water user on this size of property would be rare. He agreed there have been questions in the past as to why the municipality would sell land for storage units.
“But there is need.”
VanLeeuwen stressed he did not oppose the sale of this lot, but believed the township should have a business plan regarding the sale of commercial industrial land.
Mayor Joanne Ross-Zuj said this is an issue currently being discussed at the economic development table.
Salmon believed the other reason behind the move was to prevent land flipping. He said the township has been selling land at a fairly economical rate, but it could be to the town’s detriment if that is determining the cost of industrial land locally.
Salmon said there is land in Guelph’s Hanlon Business Park selling for $600,000 per acre when Centre Wellington may be selling for $60,000 per acre.
He added that staff are in the midst of preparing a report which should be available in February or March. Council endorsed the motion to waive the right of first refusal for this particular property.
