Deal struck on transit corridor
Land swap eyed between city, car dealership
By: Bartley Kives | Winnipeg Free Press - 11/06/2009 1:00 AM
Winnipeg plans to buy land from one Pembina Highway auto dealership and hand it to another as part of a $5.75-million plan to remove the biggest obstacle in the path of the southwest rapid-transit corridor.
Since November, city hall has been in talks to acquire portions of 11 private properties between The Forks and Jubilee Avenue to make way for the 3.6-kilometre, $138-million first phase of a bus corridor to be constructed over the next three years.
While most of the land in question amounts to narrow edges or tiny corners of private properties, three of the parcels facing expropriation are significant: part of a parking lot behind Corydon Avenue's Masonic Memorial Temple, a former Warsaw Avenue frat house that serves as office space for Canada One Vacations, and a large segment of Pembina Chrysler's parking lot.
City council has set aside $12.7 million to acquire the properties in question, ideally through negotiations as opposed to expropriation. But the acquisition of the Pembina Chrysler parking lot proved difficult because the dealership's franchise may be revoked if it cedes too much land to the city.
After months of negotiations, city real-estate managers negotiated a novel solution: The city will buy Pembina Highway land now serving as the home of used-car dealership Autotown and hand the property to Pembina Chrysler as compensation for the loss of part of its parking lot.
On Wednesday morning, city council's executive policy committee approved the purchase of the Autotown land at 222 Pembina for $5.75 million, a sum that will cover both the cost of the property and compensation for loss of business while the used-car dealership moves to a new location.
"The price we're paying is based on the value of the land as well as the costs associated with the business disruption," city real-estate division manager Ray Klassen said. "All parties are in agreement with the proposal... (which) provides everyone with the property they need to resolve the acquisition of the land involved with the southwest bus corridor."
The city's purchase of the Autotown property will proceed after city council approves the deal on June 24. The 10-year-old dealership and garage, which has spent four years at the Pembina location, has an opportunity to expand its business at a new location, according to a real-estate division report.
Autotown co-owner Chris Dyck declined to comment on the deal before council makes its final decision. His business employs 22 people, he said.
Pembina Chrysler owner Bernie Clement, whose business supports 70 families, said he too is looking forward to the formal resolution of the deal.
The city remains in negotiations with the Masonic Memorial Temple and Canada One Travel, Klassen said.
Construction on the southwest rapid-transit corridor is slated to begin in earnest in July.
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