City Departments
Industrial - Process to Purchase City Owned Ind. Land
City-developed industrial land is available on a serviced and rough-graded basis. The purchasing procedure is a very simple one, taking between 3 to 6 weeks, and is outlined below. The Economic Development Division is the coordinating department for all industrial land sales.
- A deposit of 5% of the purchase price is required for an Offer to Purchase to be presented to City Council, the final decision-maker.
- The Offer to Purchase is prepared by the City's Solicitor at the City's expense. Upon receipt of a 5% deposit the Agreement is prepared.
- City Council approval of a land sale is done through a Resolution and the passing of a by-law, which requires a majority Council vote. Normally, Staff presents Council with a signed Offer and accompanying report. Closing date after Council acceptance is normally 60 days or less.
PERFORMANCE CLAUSES
Purchasers of City-developed industrial land may be required to fulfill certain conditions within a certain time period after taking title to the land. Some of the standard conditions are shown below.
| Construction Start and Completion Date | i) | Construction start is required within one year of the purchase date. Construction is to finish within one year of the construction start date. |
| Minimum Building Coverage | ii) | The minimum building coverage requirement is 20% of the total land area. |
| Penalty | iii) | If the purchaser fails to comply with the conditions above, the City has the option of repurchasing the land at 90% of the original purchase price. |
a) 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
b) An amount equal to any increase in value of the Property. For the purposes of this clause, the term "an amount equal to any incrase in value of the Property" shall mean the difference between the amount paid by the Purchaser and the amount which would be apid for the Property based on the price established by the City for industrial property as at the time of the request for the extension.
| Right of First Refusal | iv) | The Purchaser covenants that he will not sell the lands without first offering it to the City at the original purchase price. |
REAL ESTATE COMMISSION
In order to qualify for commissions, the Economic Development Division requires the real estate broker or agent to register the client with the office of the Economic Development Division.
To register a client, the Economic Development Division must receive a signed "Client Registration Form" as provided by the Economic Development Division.
The Client Registration Form (CRF) is paramount. The most recent CRF for a specific land sale will be the one used by the Economic Development Division for allocating commissions payable.
All Client Registration Forms received will have a termination period of 60 days unless otherwise agreed upon by the Economic Development Division.
Provided that an agaent or broker has properly registered a client with the Economic Development Division, and the agent/broker is actively involved in the Purchase and Sale transaction, then the City of Cambridge agrees to pay a commission fee based on 5% of the total sale price of the land, upon successful completion and closing of the transaction.
When an agent or broker is not direclty involved with the negotiations of the sale and refers an industrial client to the Economic Development Division, then this will constitute a referral and the City of Cambridge will pay a 1% referral fee in the event of a successful completion and closing of a purchase and sale transaction.
Related Documents
| DOCUMENT | DESCRIPTION | DATE POSTED | |
|---|---|---|---|
| Industrial Parks - General Information | |||
| Client Registration Form | To register a client, the Economic Development Division must receive a Client Registration Form as provided by the Economic Development Division or have the client personally introduced by the Realtor. | 2007-04-04 | PDF 62Kb |