Originally published in the Voice of Pelham on January 26 2005.
After more than eight months of negotiations, a deal has finally been made by the Town of Pelham to purchase just over 30 acres of land at Rice Road and Regional Rd. 20. At a special council meeting Monday night, councillors voted 5-2 to purchase the land, at a cost of $110,000 per acre.
Councillors Malcolm Allen and Peter Papp were the two members of council to vote against the deal. Mayor Ron Leavens, talking with The VOICE just before press time, said the deal to purchase the land from Westerra Equities Corporation, a sub-company of the Allen Group, closes on March 31. The deal is for a minimum of 30 acres and a maximum of 33 acres, depending on the land survey. Leavens noted the price was negotiated down from an original cost of more than $135,000 per acre to the purchase price of $110,000 per acre.
That still puts the total cost to the town at around $3.5 million. Town staff and an independent professional both did appraisals on the property, said Leavens, and in both cases what the town paid for the land is below the estimated value.
To pay for the land, the town has negotiated a financing deal with CIBC for a 15-year term that is completely open, allowing the town to pay off the debt if the property isn’t needed, and is sold. Leavens said the land was purchased now, with the intent of building a recreation centre, because there won’t be another opportunity to buy a large chunk of land under the proposed Greenbelt legislation.
If the town chooses not to build, the land will be sold said Leavens, adding the property is “probably the most desirable piece of property in the municipality” and it will sold on the open market to get the highest dollar possible. Nothing will be done with the land until the ad-hoc committee currently reviewing options for a community centre, which include a public-private deal, presents its report at the end of February, said Leavens, adding if the town decides to go ahead with a rec centre plans will have to be settled fairly quickly to ensure Pelham is ready for the next round of Canada-Ontario MunicipalRural Infrastructure Fund (COMRIF) grants.
Leavens said the second round of COMRIF grants will likely be for community centres, and if accepted, Pelham could receive two-thirds of the cost from the provincial and federal governments. Reiterating a comment made by Councillor Uwe Brand, Leavens said the town has done its part, now we need the stakeholder groups to step forward and make a commitment to the town.
The land purchase does not change council’s commitment to completing the Centennial Park Master Plan; does not change Leavens’ commitment that a rec centre won’t be built on the backs of taxpayers; and does not mean Pelham will be building the Taj Mahal of community centres overnight. What it does mean, is that if Pelham decides to go ahead with the construction of a community centre, the land is available and the town won’t need to try to put together piecemeal parcels of land to accommodate future recreational needs.
Leavens said he is pleased council voted in favour of the purchase, but said he’s nervous as well. “There’s no denying it’s a risk,” he said. “It is the largest purchase the municipality’s ever made.” The value of the land, however, outweighs the risk with the town prepared to sell the land on the open market if a rec centre is not in Pelham’s future. If a rec centre is to be built on the land, however, it is quite clear that the municipality is asking taxpayers to “step up to the plate,” said Leavens.
“It can be a great project to bring this community together,” said the mayor.