The town has put a price tag on what they’ll pay to take over the Georgian Triangle Humane Society’s Tenth Line facility once the animal shelter moves into its new digs.
During the July 24 committee of the whole meeting, councillors will be considering a motion to purchase the building at 549 Tenth Street for $800,000 once the new GTHS building in Collingwood's east end is complete.
The town intends to use the building to help address staff accommodation pressures.
“The sale of the building by GTHS to the town would be mutually beneficial, enabling the GTHS to invest the funds into a new facility and enable the town to account for the acquired space as an important component of staff accommodations planning,” wrote Amanda Pegg, executive director of customer and corporate services in her report to councillors.
While GTHS built and still owns the shelter building, it's on land leased from the town. Part of the sale deal will mean an early end to the lease.
In 2010, council, town staff, and the GTHS negotiated and entered into a land lease agreement to enable the construction of a GTHS owned-and-operated building on Tenth Line to operate as an animal shelter. The current lease expires on Dec. 31, 2060.
In May 2022, the GTHS announced it had purchased a property at 135 Sandford Fleming Drive where it plans to build a 19,200-square-foot facility. The GTHS is currently running a capital campaign to raise the $14 million needed to build the facility, which will be renamed as the Georgian Triangle Humane Society’s Regional Centre for Pets and People.
The town was interested in purchasing the existing building because it is adjacent to the town’s public works yard.
On Aug. 18, 2022 following a closed session meeting of council, council gave approval to staff to negotiate the purchase of the Tenth Line site.
Under the new agreement to be considered by councillors on Monday, the early termination date for the existing lease agreement would become Dec. 31, 2026, with a one-time optional extension of no more than 180 days.
Under the agreement, the town will pay the GTHS $800,000 excluding any applicable taxes for the value of the building and for the early termination of the lease.
The amount will be paid out in four payments: 25 per cent when construction on the new facility starts, 25 per cent when construction is 50 per cent complete, 25 per cent when construction is 75 per cent complete and 25 per cent when construction is complete and GTHS has vacated the Tenth Line building.
“The final agreement includes protections and remedies for both parties similar to a typical real estate transaction should unforeseen circumstances arise,” noted Pegg in her report.
According to current estimates for construction of the new GTHS site, Pegg notes in the report that the payments would break down to $200,000 in 2024, $400,000 in 2025 and $200,000 in 2026, subject to some variability.
Pegg also notes that current estimates for renovations needed to the Tenth Line site to make it suitable for town use are expected to come in at about $600,000 depending on design.
The GTHS lease agreement will be dealt with during the July 24 committee of the whole meeting, which starts immediately following the 2 p.m. council meeting. Any members of the public may attend in person in council chambers at Collingwood town hall, or virtually by Zoom webinar. The meeting will also be livestreamed on the town’s YouTube channel here.
