email phone

Development Covenants

Any purchase of Town-developed industrial land is subject to certain development covenants, which reinforce the Town's intent to promote direct industrial development and prevent land speculation. Below is a list of some of these requirements, which must be seriously taken into consideration before any purchase.

BUILDING REQUIREMENTS

1a.       The Purchaser covenants and agrees, within one year of the date of purchase to start construction thereon of an industrial building or buildings, to cover not less than 20% of the area of the said Property, the plans for which have been approved by the Town, and to complete construction of such building and or buildings and all landscaping required in connection therewith within one year of the start of such construction; provided that, in the event that weather conditions do not permit completion of landscaping and exterior work within that time, such period for completion of landscaping and exterior work may be extended by the Town as may reasonably be required. The Town shall be kept informed of all construction schedules, any changes thereto, and of any delay in construction, which might occur. Provided the Purchaser starts and completes construction within the said time periods as contemplated above, the Town shall sign and deliver a full and final release of the option set out in Clause 1b. below.

1b.       If the Purchaser does not start and complete construction of an industrial building or buildings in accordance with the provision of Clause 1a. above, within the periods therein set out, the Town shall have the option of repurchasing the said Property from the Purchaser at 90% of the original purchase price, without interest, less the actual costs of the Town which were incurred in the original sale of the Property and which will be incurred in purchasing the property, which costs may include real estate commissions, Land Transfer Tax, registration costs, legal fees and such other costs as are determined by the Town. The said option may be exercised by the Town on sixty (60) days' notice in writing at any time within five (5) years of the time of the Purchaser's default; provided that the Purchaser may at any time after three (3) years from the time of default give notice in writing to the Town requiring the Town to exercise the option to repurchase the Land as aforesaid. If, after receiving such notice from the Purchaser, the Town does not exercise its right to repurchase the said Property by giving notice in writing of such intention within ninety (90) days of the receipt of the said notice from the Purchaser, then the Town's right to repurchase the said Property under the provisions of this paragraph shall terminate and the Town shall sign and deliver to the Purchaser a full and final release of said option. Save as to the requirement as to the time of construction, all other covenants made on behalf of the Purchaser herein shall in any event continue in full force and effect.

1c.       Subject to the last sentence of this Clause 1c. the Purchaser covenants that it will not sell the said Property or any part thereof to any person, firm or corporation without first offering in writing to sell such Property, the Purchaser covenants that it will not sell the said lands or any part thereof to any person, firm or corporation without first offering in writing to sell such lands to the Town at the original purchase price less actual costs of the Town which were incurred in the original sale of the Property and which will be incurred in purchasing the property, which costs may include real estate commissions, Land Transfer Tax, registration costs, legal fees and such other costs as are determined by the Town; provided however that the Purchaser may sell or transfer the said Property to a subsidiary or affiliate corporation as defined in the Business Corporation Act, R.S.O., 1990, c B. 16, Section 1(2), provided such a subsidiary confirms its acceptance of the within building covenants and expressly undertakes in writing to comply therewith by execution of such documents in confirmation therefore as the Town may require. The Town shall have ninety (90) days from the receipt of an offer made by the Purchaser under the provisions of this Clause 1c. to accept an offer to sell made by the Purchaser under the provisions of this Clause 1c. the Town's right to repurchase the Property so offered shall terminate. The right to purchase such Property contained in this Clause 1c. will expire upon the purchaser fulfilling all of the building requirements as set out in Clause 1a. hereof.

1d.       In the event that the Purchaser at any time determines that it is unable to start and/or complete construction as herein provided, the Purchaser may request the Town to extend the time within which such construction is to be started or completed as the case may be. The Town may grant such extension on such terms and conditions as may be agreed upon. In any event, if any extension of time is granted the Purchaser shall be required to pay to the Town by way of liquidated damages:

(i)        An amount equal to the amount of municipal taxes and business taxes which the Purchaser would have been required to pay had a building or buildings been constructed as above required, and

(ii)       An amount equal to any increase in value of the Property. For the purposes of this clause, the term "an amount equal to any increase in the value of the Property" shall mean the difference between the amount paid by the Purchaser and the amount by which would be paid for the property based on the price established by the Town for industrial property as at the time of the request for extension.

1e.       In the event the Purchaser is not in default under the provisions of this Clause 1e., the Purchaser may offer to sell such property to the Town at the original purchase price less the actual costs of the Town which were incurred in the original sale of the Property and which will be incurred in the purchasing of Property, which costs may include real estate commissions, Land Transfer Tax, registration costs, legal fees and such other costs as are determined by the Town. The Town shall have 30 days from the receipt of an offer made by the Purchaser under the provisions of this Clause 1e. to accept such offer which acceptance shall be in writing. If the Town does not accept an offer to sell made by the Purchaser under the provisions of this Clause 1e. the remaining provisions of Clause 1e. shall contained in full force and effect.