29 August 2010

Developer, CPR Yet to Ink Land Deal

The Canadian Pacific Railway station at Brandon, Manitoba.

Brandon Manitoba - Bogged down in bureaucracy, a Winnipeg developer's hopes to renovate the historic Canadian Pacific Railway station on Pacific Avenue has been all but dashed.
 
"Right now there's a 25 percent chance the deal may still go through," Jon Hooker of Nonico Investments told the Sun. "I'm not holding out a lot of hope... I'm not sure the economics of the whole thing make sense."
 
In October 2008, Hooker made a purchase offer on the two-acre property and the 14,000-square-foot, two-storey, heritage building. At the time, he planned to gut the interior, replace the windows, install a new air circulation system, while reclaiming the building's original marble floors and its original tin ceiling.
 
Snow and rain has since further deteriorated the condition of the roof and Hooker says the property will have to be stripped to the frame and undergo a complete mold remediation before any renovations take place.
 
The cause for the two-year delay seems to be hung up with the Heritage and Monuments Board of Canada, an advisory body to the environment minister on the maintenance of its Heritage Railway Stations that approves transfer of ownership requests.
 
As mandated by the board, CPR had to subdivide the property and register it with the land titles office.
 
Steve McMillan, senior planner with the City of Brandon's planning department confirmed the subdivision was approved on 19 Jul 2010, leaving the owner one year to register the property with the land titles office.
 
According to Hooker, CPR preemptively listed the property before these steps were taken.
 
CPR spokesperson Kevin Hyrsak could not comment on what, or why, the sale has been delayed, however he did confirm that the company would like to see the deal progress before the building deteriorates further.
 
"It's definitely in our interest to keep (negotiations) going, but it has to be an amicable deal between both parties," Hyrsak said. "We're still in the phase of negotiating a contract with the potential buyer."
 
Hyrsak couldn't confirm an estimated timeline for the negotiations to wrap up, but Hooker says for him, if a deal isn't made by mid-September, he will cut his losses.
 
Between lawyer fees, the deposit to purchase the property, and his time, Hooker says he's out $30,000.
 
"I absolutely don't want the building if I don't have a new roof on it before winter," he said. "I had roofers lined up for 1 Jun 2010, and the year before that... if we're not working on the roof by say, 15 Sep 2010, that's it for me."
 
A spokesperson from the Historic Monuments Board could not be reached for comment before press time.
 
Brandon Station
 
The Canadian Pacific Railway station at 1001 Pacific Ave. was designated a heritage railway station by the Historic Monuments Board in 1993.
 
The 14,000-square-foot building, constructed in 1911, is one of 18 railway stations in Manitoba to have received this designation.
 
As outlined by the Heritage Railway Stations Protection Act, railway companies have a legal responsibility to protect the heritage character of designated stations in their care.
 
Provisions for emergency repairs to the building are outlined in the act, while large penalties for companies that proceed with work, sale, or disposal without consultation and approval by the board.
 
When a transfer of ownership is requested, the railway company and the potential purchaser must jointly conform to the following requirements:
 
·  File the application for authorization with the Minister of the Environment (railway company's responsibility);
 
·  Pledge to respect the heritage character of the station after its acquisition (potential purchaser's responsibility);
 
·  Explain the future use of the station once it is transferred or sold;
 
·  Submit a feasibility study or plans that demonstrate the planned transformations to the site following its transfer or sale, while ensuring that the principles of conservation are met in advance.
 
·  Consult experts to develop the project and contact the Heritage Conservation Services.
 
Colleen Cosgrove.