REQUEST FOR DECISION
DATE: November 21, 2017 Report No. ADM-17-028
TO: Mayor and Council
FROM: Laurie Hurst, Chief Administrative Officer
SUBJECT:
Title
1237-1243 Esquimalt Road
End
RECOMMENDATION:
Recommendation
That Council direct staff to provide notice to end current tenancies at 1237-1243 Esquimalt Road effective February 28, 2018 and undertake all actions and required procedures to authorize and construct a temporary parking area for use effective May 1, 2018.
Body
RELEVANT POLICY:
Local Government Act
Community Charter
Residential Tenancy Act and Commercial Tenancy Act
STRATEGIC RELEVANCE:
Encourage a resilient and diverse economic environment.
BACKGROUND:
The Township has recently acquired the property at 1237-1243 Esquimalt Road. This property was determined to have strategic relevance in connection with the Esquimalt Village Project and with the amenity funds that were negotiated in connection with the McLoughlin Point Wastewater Treatment Facility.
There are currently 3 commercial tenants and 1 residential tenant that occupy the spaces in this property.
For the one residential tenancy, the Residential Tenancy Act requires the landlord to provide 2 months’ written notice with the last month being rent free. Damage deposits plus any applicable interest would also be reimbursed at the end of the tenancy.
Documentation received during the conveyancing of the property shows that all commercial tenancies are on a month to month basis at this time which requires 30 days written notice to end tenancy. However the original Tenancy Agreement with the Pearl Tree Trading Company stipulated that 3 months’ written notice must be provided to end tenancy.
ISSUES:
1. Rationale for Selected Option
Public engagement for expenditure of the amenity funds is currently scheduled to commence in January, 2018. Of the $17 million in amenity funds, $5 million is restricted to capital expenditures for emergency services and/or public safety facilities. This property has strategic relevance for this initiative.
With the commencement of construction on the Esquimalt Town Square, there is currently restricted access to parking for patrons of the library and municipal hall. As construction will be ongoing for an extended period, it is anticipated that the restricted parking will also be exacerbated during busy periods, specifically during property tax time when the volume of visits to the municipal hall are elevated.
It is the staff recommendation that 3 months’ formal written notice to end tenancy be provided to all tenants, that the existing structure be demolished and that a temporary parking facility be constructed and remain in use until such time as further decisions are made on the use of this property in relation to the expenditure of the amenity funding.
The staff recommendation would see the proposed timeline as follows:
December 1, 2017 - formal notice to end tenancies effective February 28, 2018
March 1, 2018 - commence demolition of existing structure
April 1, 2018 - commence construction of temporary parking area
May 1, 2018 - temporary parking area ready for use
Since this property is not currently zoned for the proposed use as a parking area, staff will review and undertake any required procedures to authorize this use on a temporary basis in order to move forward with the staff recommendation.
2. Organizational Implications
There are no organizational implications.
3. Financial Implications
It is estimated that the total cost for removal of the existing structure and construction of a temporary parking area is approximately $250,000. This figure may change based on the hazardous materials assessment that will need to occur prior to demolition and staff would advise Council should this figure change significantly.
The funds to complete this initiative are available from Accumulated Surplus.
4. Sustainability & Environmental Implications
The existing structure, due to its age, is known to have materials that have environmental implications that will be addressed through the procurement process for demolition services.
The land beneath the existing structure, due to historic uses, will most likely require some degree of remediation prior to any redevelopment. Environmental assessments would be completed and a remediation plan prepared and presented to Council prior to any future redevelopment, including financial implications.
It has been determined that the current staff recommendation for temporary use will not require any remediation efforts at this time as there is no plan to remove soil from the site in order to provide the temporary parking area.
5. Communication & Engagement
Current tenants have been notified of the staff recommendation and the opportunity to provide input at this meeting for Council consideration prior to making a decision.
Should Council endorse the staff recommendation, staff would prepare public messaging and notifications.
As mentioned earlier, public engagement for expenditure of amenity funds is scheduled to commence in January 2018 and a communication strategy will be presented to Council for endorsement prior.
ALTERNATIVES:
1. That Council direct staff to provide notice to end current tenancies at 1237-1243 Esquimalt Road effective February 28, 2018 and undertake all actions and required procedures to authorize and construct a temporary parking area for use effective May 1, 2018.
2. That Council endorse an alternate timeline for staff to provide notice to end current tenancies and undertake all actions and required procedures to authorize and construct a temporary parking area for this site.
3. That Council provide alternative direction to staff.