Demand is outpacing supply for industrial/commercial land in Dundalk with all the lots in the EcoPark having offers in various stages.
Council approved three purchase and sale agreements at the Feb. 3 meeting, and there’s another on the agenda this week.
TWO LOTS TO LITZ
Gus Litz Contracting originally bought a two-acre parcel in 2019, and it was associated with two out of three of the approved offers last Wednesday.
Each is a two-acre lot: one will be in the name of Waldemar and Diane Litz, and the other purchaser is Alana Litz.
Mr. Milliner told council that the properties would be contractor yards with buildings for small equipment storage.
The lots are at the southeast corner of Eco Park Way and Ida Street.
The staff report said that the purchaser wants to close both deals within 60 days and is committed to developing the property in 2021.
The township takes on the cost of surveys and extending services to the property boundary for the Eco-Park lots.
Sale prices for the two parcels was at the normal asking price of $35,000 per acre. Estimated DCs received by the township from each parcel will be about $50,000 DCs from each lot for 4,000 sq. ft. buildings proposed along with building permit fees and ongoing property tax revenue.
The second lot is the south lot of the three that front on Ida Street and abuts the wastewater property. The building will be used as a rental property for a contractor yard or small manufacturing business.
When Coun. Dobreen asked about the township losing the ability to approve a business based on its impacts when a property is rented out to a third party, Mr. Milliner said that the uses would be low-impact, likely for storage of equipment.
Sale of a two-acre parcel at the corner of Eco Park Way and Ida Street was also approved Feb. 3. The deal came before council and was approved in 2019 with the same proprietor Mark Cook with the company being America Standard Homes.
Mr. Cook is also the owner of Alstructural Handling Inc. and MKSN Holdings, and it is the last named company which will own the Eco-Park lot.
The staff report said that Mr. Cook plans to develop it this year, as a contractor yard for his business. Council heard that the sale was delayed by the township’s getting the survey needed.
The anticipated income to the township would be $70,000 from the land sale, about $50,000 in DCs, planning and permit fees and ongoing tax revenue.
On this Wednesday’s agenda for council approval is a sale of seven acres of industrial land to Suleyman Chekdar Batgi, who plans to build a 5,000-sq.-ft. building to start a business. The product is modular pre-fab walls, floors, panels and cabins.
The purchaser hopes to expand later to 30,000 sq.ft. or more, the staff report says. It says the company may employ six people at the beginning, which could increase to 30. About 20 percent of the property would be used for outdoor storage, which would be fenced and have a visual barrier.
Sale price is $35,000 per acre and the staff report said the deal should close on Sept. 24 or sooner, if the planning and approvals allow.
The land sale would bring $245,000, about $60,000 in DCs plus planning and permit fees and ongoing taxes.
Mr. Batgi owns several businesses in the GTA and holds rural property in Southgate, the staff report said.
UPDATE ON OTHER DEALS
GOLDEN GREEN LEAF – This deal with a company hoping to open a marijuana facility is now off the table. Council did not provide a third extension which was requested, the CAO confirmed.
The agreement with a furniture manufacturer was given a one-year extension in December 2019, and that deal is expected to be back to council in the next 120 days.
Both this deal and the one with Havana Castle Cigars were held up. Part of the reason was that access to the lots depended on development of the Eco-Parkway which was held-up by an objection, a delay that has now been resolved.
Also in common between the two properties is a sale price which was lower than the usual, $20,000 per acre, because of the challenging terrain of the lots, requiring much fill.
HAVANA CASTLE CIGARS -
This purchase and sale agreement was also extended in December 2019. The Havana Castle Cigars 5.75-acre property is to the east of Lystek.
The company retails premium cigars, with locations in Ontario including one in Collingwood. According to its website, it has grown from selling 500 cigars a year in 1998 to 500,000 cigars per year. The site is to be used for a warehouse.
Mr. Milliner said that this deal for five acres of Eco-Park land is in the lawyers’ hands and should close in the next 30 -60 days. The price is at $27,000 per acre. Several public meetings were held on this initiative to produce renewable natural gas from agriculture and other feedstock in an enclosed negative pressure plant which will have filtered stacks.
FLATO The CAO expects a purchase and sale agreement to close in 2021.
This 30-acre purchase from 2016 has been delayed because of re-zoning and OPA issues, the CAO said. Council at that time heard that the site would be developed with a blend of housing and commercial.
Delays have been due to the process of working through the planning challenges in the development as well as other factors. Proposed uses include commercial, residential and light industrial (warehouse).
M.T. Fernandes, Local Journalism Initiative Reporter, Dundalk Herald