Councillors here are waiving their first right of refusal and site plan agreement on a property in the north end Fergus industrial park.
At the Jan. 17 committee of the whole meeting, director of planning Brett Salmon explained the property lies within “a municipally-developed industrial park, and years ago, the subject parcel was sold by the Town of Fergus to a private company to build an industrial building.”
At the time, the Town of Fergus regularly included in its agreements for purchase and sale, a right of first refusal, to purchase vacant lands which were subsequently sold.
“That measure was to prevent flipping of land which was sold by the Town of Fergus which was sold at a very economical rate.”
The provision allowed the town the opportunity to buy that land back before it hit the open market. Salmon said this was a parcel which has sat for years without any construction on it.
“The owner put it on the market and John Burt Enterprises entered into an agreement to purchase the land. As a result of the right of first refusal, they had to come to the township and ask the municipality to waive its right of first refusal.”
Burt Enterprises applied for site plan approval for the parcel and the site plan approval was for a mini-storage warehouse facility.
“There seems to be lots of demand for mini-storage,” Salmon said. Originally, construction was planned for two phases – two buildings.
Phase one is complete, but the applicant decided not to move forward with phase two.
As a result, Burt Enterprises has applied to sever off the remaining land to sell.
Salmon said with the severance now approved, they anticipate selling the 2.6 acres.
On title is still the site plan agreement and the right of first refusal. As a result, the request has come through to release the vacant lands from the site plan agreement so it is no longer encumbered with the municipality’s first right of refusal on the sale.
“This way they don’t have to come back to us every time.”
The recommendation before the committee was to approve a release from the site plan agreement and the first right of refusal.
Councillor Walt Visser asked if this might raise the value of the municipality’s industrial land – if this property is being sold at market value.
Salmon said he supposed that could be a consideration, since the municipality waived its rights the last time it sold.
“We don’t have the money (set aside) to buy back industrial lands,” he said.
“What we do now when we sell a parcel is that the economic development department bases the price on the cost to bringing it to market.”
If the private land sells for more it may raise the price.
“It could be a good thing.”
On Jan. 24, council agreed to authorize and direct the mayor and clerk to execute a Release of Site Plan Agreement to the property and that it also execute a release a right of first refusal to property owned by John Burt Enterprises Limited, 730 Glengarry Crescent, Fergus.
