Midland to buy Unimin lands
In what Mayor Gordon McKay describes as “a bold statement defining our town’s future,” Midland council has voted to buy the Unimin waterfront lands.
In a 7-1 vote at a special meeting Friday, council passed a bylaw to enter into a purchase and sale agreement for the 40-acre site. The town will pay $4 million for the properties, plus a portion of the cost of a Phase 2 environmental assessment (EA) to confirm that the property is free of any contamination. The EA costs could exceed $500,000. Closing the deal depends on a satisfactory completion of the EA by Dec. 31, 2014.
Veteran councillor Bob Jeffrey welcomed the decision, noting the town has never owned any of its waterfront.
“It may take time for something to occur,” he said. “But this is great for the people and for the town’s future.”
Coun. Mike Ross, however, opposed the decision, saying the town can’t afford it.
“I hear people around this table say every day that we need to cut costs, that Midland taxes are too high and spending is out of control.
“But the same people have no problem spending $4 million, plus interest.”
Ross said he believes the development of the Unimin property would be a great thing for the town, “but land speculation is something Midland should not be doing. This should be left to the private sector.”
A news release issued by the town said “the lands have long been identified as a critical part of Midland’s waterfront and its future.
“Like all shoreline communities, Midland understands that proper waterfront development is essential. The purchase of these lands will permit the town to direct the development of this key real estate asset for the benefit of all citizens,” said the release.
McKay said that in putting this property up for sale, Unimin presented council with a “once-in-a-lifetime” opportunity to consider the future use of the land.
“When Unimin put the property up for sale, council launched a public planning exercise to let all residents decide what should be developed on the property.”
That consultation process, say town officials, will continue.
Buying the property gives council control of future development and, says the release, “will allow council to be a full partner with developers who come forward to work with the town.”
As part of its due diligence the town hired a real estate professional to assess the future value of the land. The assessment showed the land, properly zoned, would be worth $6 million.
Carolyn Tripp, the town’s chief administrative officer, says purchasing the land “not only allows the town to control its development, but creates the very real opportunity for the town to benefit from the appreciation of this unique waterfront property.”
The news release said “council is sensitive to the impact such an acquisition would have on the tax rate. The purchase will be managed as a financial project. It will be funded through debt in order to minimize the impact on the municipal budget.
“This debt will be reduced by anticipated contributions from developers and the possible sale of surplus municipal lands.
“While some of the Unimin lands will certainly be used for public spaces, other parts will be sold at market value to ensure the town recovers every penny of its $4 million investment,” the release added.
The Planning Partnership — consultants hired by the town to create the framework for a waterfront lands master plan — have proposed a mixture of residential and commercial development, complemented by an amphitheatre, pool-skating area, trails, a boardwalk, biking trails and other amenities. Residents have had opportunities for input into the plan at public meetings.
In an interview, McKay said there have been inquiries by developers.
“We have 40 acres of fully-serviced waterfront property on Georgian Bay. This is a dynamite combination.”
Coun. Zena Pendlebury said she sees the decision as an investment in Midland’s future.
“People have told me we should buy it, because it’s the only way to control future development,” she said.
Coun. Jack Charlebois said he has heard similar comments.
Coun. Pat File said she is “optimistic. We are protecting this waterfront area for the town.”
Coun. Glenn Canning said he understood Ross’s concern, but felt the property could have been bought and broken up for development.
“This way we can control the development.”
Deputy Mayor Stephan Kramp said council has made some tough decisions over two years to control taxes.
“Those difficult decisions have allowed us to buy the property and it’s a good decision.”
In criticizing the decision, Ross pointed to the empty storefronts on King Street.
“This town is in big trouble. There are no jobs coming to town.”
“Residents cannot afford the taxes they are paying now. I feel that going into debt is not the right thing,”?Ross said.
“Allow the natural course of business to dictate how this land will develop,” he urged.
“I would be willing to consider any type of business that may be interested in investing, even if a similar business wants to operate at this site,” he said.
“You are going to hear from many people around this table that Midland will buy this land, and sell it in the future for profit. There is not one piece of land that Midland could buy today and sell in the future for profit. Just take a look around the area’s waterfront and see all the half completed projects,”?Ross advised.
“The unemployment rate is well over 8%. Times are tough and it’s not getting any better,”‘ he said.
“I would like nothing more than to live in a big house on waterfront. But I cannot afford it. And Midland cannot afford this deal,”?he said.
“I hope the people of Midland understand they are on the hook for $4 million, plus interest, plus $200,000 for clean-up, plus, plus, plus.”
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