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Developer's claim asks Bradford for almost $5M for land, damages

Town expropriated about 3.5 hectares from Line 6 property to make way for roundabout and realignment as part of new arterial road
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The newly realigned Line 6 cuts through 3039 Line 6 as part of the south west arterial road in Bradford on Aug. 13.

While construction has finished on the new roundabout and realignment on Line 6 at Sideroad 10, the cost to Bradford could still climb.

In a statement of claim filed with the Ontario Land Tribunal (OLT) by Borden Ladner Gervais LLP on Aug. 2, Mod-Aire Homes Limited is asking the town to pay $4 million for the almost 3.5 hectares it expropriated from the roughly 40-hectare site at 3039 Line 6 on Aug. 29, 2017, as part of the south-west arterial road (SWAR) project, plus another $970,000 in damages.

Altogether, that total of $4.97 million would be an increase of $2.38 million, or about 92 per cent from the original $2.59-million valuation, proposed by the town.

Michael Orsi, president of Mod-Aire Homes, explained to Village Media that the developer determined the $4-million valuation based on their findings of fair market value for the potential of development, and still have future plans to develop the remaining roughly 36-hectare southeast portion of property into a residential subdivision.

That’s despite the property currently being outside the town’s urban settlement boundary and zoned agricultural, which would prevent its development — an issue Orsi expects to be resolved as part of the town’s ongoing growth management plan.

The developer was previously unsuccessful in convincing the town to include the property as part of the urban boundary during the town’s official plan review in 2016.

The recent statement of claim was filed in response to the town’s notice of arbitration filed with the OLT on July 16, in an effort to resolve the years-long expropriation issue.

Town chief administrative officer Geoff McKnight explained there was no particular significance to the timing, other than the town feeling “all reasonable efforts” had been made to negotiate a settlement.

“After several years of effort we have not been able to agree on compensation for the land expropriated from Bearsfield,” he said via email. “In an effort to conclude the matter, the town has triggered the OLT arbitration process in accordance with the Expropriations Act.”

Council approved the expropriation on June 6, 2017, and enacted a bylaw to that effect a little more than a month later on July 11. At the time, the property was owned by Bearsfield Developments Inc., who had purchased the property in 1999 with the goal of residential development, and who later amalgamated into Mod-Aire Homes on March 1, 2023, according to the claim.

Mod-Aire claims the lands are “well suited for future residential development,” and near “shovel ready,” being located on two major arterial roads, across the road from an existing residential subdivision, having no environmental features which would restrict residential development, and having access to nearby municipal services including water, sanitary sewers and storm sewers.

“Overall, the lands were a very attractive option for future residential development,” the claim says, emphasizing the aims of both the County of Simcoe and the provincial government to increase housing supply, the increased value of development and future access to the proposed Bradford Bypass.

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A diagram shows the previous property line for 3039 Line 6 in red as well as the expropriated portions in blue, and was included in the statement of claim filed with the Ontario Land Tribunal on Aug. 2, 2024. | Supplied image

As a result of the expropriation, Mod-Aire notes the property is no longer square, but comprised of an irregularly shaped area of about 36 hectares, as well as an even more irregularly shaped property of about one hectare “orphaned” on the northwest portion between the new alignment of Line 6 and the remaining right of way from the old road which still provides access to existing residences.

Mod-Aire alleges many of the “devastating impacts” to the property could have been avoided had the town considered the findings presented at a hearing of necessity requested by Bearsfield and held on March 6, 2017.

At that time, Mod-Aire claims consultants, including a traffic engineer and transportation engineer, presented on behalf of Bearsfield, and suggested shifting the proposed roundabout north to reduce the amount of land required while maintaining functionality.

An inquiry officer report was later issued on March 17 in which the officer agreed that the town’s proposed location for the roundabout “had not been established and was not reasonably defensible,” but the town moved ahead with their plans anyways, according to the recent claim.

“By doing so, the town knowingly and deliberately caused significant impacts to the lands in the circumstance where other less intrusive options may have been available,” the claim says.

As a result of the impacts to the remaining property, Mod-Aire is asking for $350,000 in damages, and another $520,000 for the orphaned piece which has “limited desirability on the market,” and “adds no value” to the remaining property.

Mod-Aire is also asking for $50,000 to compensate for the cost of work preparing to develop the property which had to be redone as a result of expropriation as well as another $50,000 to compensate the developer for the time and resources invested in dealing with the issue by both Orsi and Jim Craig, vice-president.

“The town’s lack of co-operation significantly contributed to the time incurred by the claimant on this matter,” the claim says.

While McKnight declined to comment on the specifics of the claim, he said the town “remains committed to resolving this matter through a negotiated settlement or the OLT process.”

A hearing date has not yet been set, according to OLT records.