Friday, 2 May 2014

Blandford Square Mall saga may end soon

Land expropriated in 2005 to create property parcel for Toyota 
By Mark Schadenberg
The vindication has finally arrived against a vindictive property owner.
The City of Woodstock, Blandford-Blenheim Township, the County of Oxford and the Province of Ontario were deemed to be correct in their actions, procedures and timelines to expropriate land from the owner of the former Blandford Square Mall.
In the waning months of 2004 and early moments of 2005, a land assembly was quiet taking place to accumulate enough property for Toyota to build its mega-manufacturing facility in Woodstock. It was an ideal location naturally as it was along the 401 and less than 25 minutes from the car company's Cambridge Canada headquarters.
Whether you were someone who owned a house, or a hobby farm, or a derelict mall, you were offered a calculated market value to sell your land. I'm not going to comment on dollar figures and whether they were high enough as some folks were required to move away from their 'dream countryside home'. You had zero choice – no opportunity to say you were going to chain yourself to your front porch and stay. It was billed as what was best for the local economy today and tomorrow.
Toyota acquired its acreage, but the mall owners felt they were disregarded in the process and further disappointed with the total compensation structure. The legal process, thereby began.
Read the link below by accountable accomplished S-R reporter Heather Rivers, which discussed the hopeful conclusion to this 9-year wrangling. I say 'hopeful' as there is still an appeal period of 90 days, according to the Rivers writings.
If you have followed the story since its inception, you would be confident that the local administration would eventually win. In the 2011 Sentinel writings (link) below, then-and-now Oxford warden Don McKay, who represents East-Zorra Tavistock as mayor, said as much.

"It'll be a relief when it's over, but it doesn't feel like something hanging over our heads," McKay said, back in 2011. "It could be tomorrow or it could be five years before it's over."

Naturally, it's obvious to state that the mall turf was integral for Toyota as its 35 hectares were at the important corner of Highway 2 (Dundas Street) and County Road 4 (Innerkip Road). The total Toyota tundra is about 400 hectares or about 1,000 acres.
The S-R reports that the Blandford mall owners (Joe Chetti represented the Blandford Square Developments company, who at the time were sometimes proposing a possible mall expansion.) were demanding $16.5 million, but were offered less than one-quarter of that amount.
I'm not sure how all the facts line up in this parade of claims made by the mall owner, but the County has often replied (I believe) that the mall was in arrears for municipal taxes.
Consumers know that the Blandford Mall was a lame duck as its tenants were simultaneously flying to Norwich Avenue in Woodstock and the new box mall – Wal-Mart, Reitmans, Body Graphics and The Source (Radio Shack). It was the law of the wild – economics – as only the strong survive.
Good Sentinel-Review reporting discovered that the mall was sold in 2002 for about $1.35 million (Land registry report), so a quick math calculation would indicate the Chetti brigade was well compensated.
The only favourable point maybe for the Blandford Square Mall's position would have been an attempt by any appraiser to calculate how much 'market value' would be attached for the 35 (most pivotal) hectares. Is the sky the limit?
A 2007 court ruling – as noted below in a link – described one court's definition of 'land value' as follows:
          ()()()()()()()()
Sections 13 and 14 of the  Expropriations Act  provide that the appropriate expropriation price is based upon the amount that a willing buyer would pay to a willing seller in the open market, but without taking account of the impact of the development proposed for the lands on that value.
- The appellants say that the expropriation price is less than the fair market value of the lands and therefore contravenes ss. 106(1) and (2)(c) of the  Municipal Act. These sections read as follows:
106. (1) Despite any Act, a municipality shall not assist directly or indirectly any manufacturing business or other industrial or commercial enterprise through the granting of bonuses for that purpose.
          ()()()()()()()()
Expropriation for the 'highest and best use' of commercially-zoned land has occurred previously in Woodstock. I remember when the Commerce Way Park project was developed by the City between Parkinson Road and the 401 in the City's southeast corner. I vividly recall two farmers names too – Virtue and Bakker. Both families were compensated and Woodstock took ownership and that land now is the home to Sysco, Canada Stampings, Miller Zell, AGCO Corporation, Ancra, Day & Ross, Canada Post, Scholastic Books, a Leon's furniture warehouse and . . .
My conclusion is this: One land owner spent a lot of money on lawyers and court proceedings when they should have been pleased to pocket the fair amount they had received.
The top administration official for Oxford is happy at the news, as was reported in the S-R:

"We are very pleased," said Oxford CAO Peter Crockett. "The decision without question confirms the county acted in the public interest to achieve significant economic benefit to both the county and the province."


S-R Link of May 2:
S-R Story of August, 2011
S-R Story of September, 2008
Interesting Case Law proceeding:
2006 Story (Not from Sentinel-Review):


Related Woodstock Industrial Link:


Mark Schadenberg, Sales Representative
Senior Real Estate Specialist (SRES designation)
Royal LePage Triland Realty
757 Dundas St, Woodstock
www.wesellwoodstock.com
(519) 537-1553, cell or text
Email: mschadenberg@rogers.com
Twitter: markroyallepage
Facebook: Mark Schadenberg, Royal LePage Triland

Discussion . . . Direction . . . Determination . . . Destination

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