City Council endorsed a plan Monday to move ahead with negotiations to purchase 243 acres of provincial land that they then plan on reselling to developers.
The plan, years in the making, is seen as a way of maintaining control of the so-called Guelph Innovation District and making sure it is developed in accordance with the city’s new secondary plan.
The property is made up largely of the former Turfgrass Institute lands on Victoria Road and is bordered by York Road to the north, Victoria Road to the west and Stone Road to the south.
It does not include the former jail lands on York Road. The province retains that land for the time being.
“We’re talking about transformative change in the east end of this city,” said Deputy CAO Scott Stewart at Monday’s council planning meeting.
“It’s a bold move,” Stewart said. "But I think we're in a really, really cool place here to make things happen."
“This is a chance to realize that vision and goals we’ve been looking for for so many years,” Mayor Cam Guthrie said.
Plans are to see the land developed with a mix of residential, commercial and research-based industry. If things go according to plan, the property would be in a developer’s hand by the end of 2019.
The process of buying the land from the province has several “off ramps” that would allow the city to back out of the deal with minimal cost.
It was revealed at Monday’s meeting that the land is valued at $60 million dollars and as Guelph moves through negotiations with the province it would eventually have to put up a 10 per cent deposit.
That, plus money the city could eventually spend on outside sources, could eventually see the city have a $10 million stake in the deal, money it fully expects to eventually recoup from a developer.
Neither staff or most members of council believe the city would ever be out that much.
The city would only lose all its money if a deal fell through with a developer in the final stage, a new developer couldn’t be found and the city then decided to walk away from the whole deal.
“I don’t believe that’s ever going to happen,” Coun. Karl Wettstein said.
“Our goal is to recoup our money,” said Peter Cartwright, general manager Business Development and Enterprise.
"It is risky. There is risk in this," Cartwright said, but added that the province is on board with the plan.
"The province could just go to market (with the land)," Cartwright said. "They're giving the city time to go out to market the land."
Much of the discussion Monday night centred around how much autonomy city staff would have with moving the process along.
Staff has asked for more “delegated authority” than usual, in part to keep the process moving during a transition to a new council late next year.
Coun. Dan Gibson moved that staff be required to come back to council at various stages for approval to move forward.
“Our reputation is on the line when we delegate this much authority,” Gibson said. “My level of comfort needs to be satisfied.”
That motion was rejected and a second, “friendlier” motion put forth by the Mayor requiring staff to send out progress reports after each stage of the negotiating process was passed.
If council has any issues with the process, it can then bring that matter back before council for deliberation.
The city would also eventually be given 38 acres of conservation land that is part of the area.
Two reserve funds would eventually be used to finance the project at the city’s end.
