Council sealed the deal Tuesday on agreements to purchase two downtown Galt properties city staff feel are ideally located next to other city-owned properties and have wide-reaching potential to serve the community.
The deal, worth $2.6 million plus related maintenance and operating costs, adds the law office at 19 Cambridge St. and the one-storey retail space at 8 Water St. to the city’s real-estate portfolio.
Plans for both buildings are undefined at this point, although past discussions about 8 Water St. have considered demolishing the riverside building for a “placemaking” parkette.
It is located beside the Old Post Office Idea Exchange.
The city wanted to purchase the building housing Pavey Law at 19 Cambridge St. because of its potential to assemble a larger property by combining it with 17 Cambridge St., which is already owned by the city.
Both properties are directly adjacent to city hall.
Pavey Law LLP has been on the site of the owner-occupied building for more than 30 years. The property is .499 acres and the building is 4,779 square feet plus 1,682 square feet of basement space. Its purchase price was $1,875,000 plus applicable taxes.
If the city maintains the property for the next five years, it will cost $211,000 for capital maintenance, repairs, and replacement costs.
Staff expects it will cost $38,192 per year to operate the building if council decides to utilize it for community purposes.
The other option is to lease the turn-key law office to a third party and generate a funding surplus of approximately $47,790 per year.
If council decides to combine it with 17 Cambridge St., and potentially some city hall property, it could "accommodate any future plans for growth, development and new amenities” in Galt’s core.
“I think it’s very wise we have been purchasing properties next door to city hall, said Coun. Jan Liggett. “It just adds to what we can do.
“And now we’ve got some time to figure out how this building’s going to look and how it’s going to serve the community in the future,” she added.
Coun. Mike Devine called the purchase “a very, very wise move on behalf of the city.”
The one-storey property at 8 Water St. sits directly beside the the Old Post Office Idea Exchange and comes with a $640,000 purchase price.
It is occupied by three businesses with leases set to expire as late as 2024.
Because of its proximity to the river and the Idea Exchange, staff considered it a “rare and unexpected opportunity” with strong potential to add to the city’s placemaking objectives in Galt’s core.
The purchase means $19,208 has to be added to the 2022 operating budget to fund the maintenance and operations of the structure.
The entire property, including a courtyard, is approximately 2,325 square feet and includes the commercial building of approximately 1,030 square feet fronting Water Street South. A building shell at the back of the property, next to the river flood wall, is approximately 435 square feet.
The structure is not on the heritage register however certain aspects of the building façade may have some heritage interest, noted staff, and, as Coun. Pam Wolf pointed out, could throw a hitch into any plans to demolish if for a parkette.
Once all options are on the table for the property, staff said the 1910 building’s heritage value would be considered first. If parts of the building can’t be demolished because of those considerations, there are still opportunities for placemaking at the site.
The Grand River Conservation Authority also has access rights over the property for the purposes of installing, maintaining, and operating a flood-protective wall.
“I’m astounded we’re getting these properties at the value that we’re getting them,” said Coun. Jan Liggett, adding she’s already thinking about how this could tie in with the library and its programming.
Paul Kan, manager of realty services for the city said staff will work with tenants in finding new locations once their leases expire. The outside date for the last lease to expire is October 2024.
“There are all kinds of great opportunities for that building,” Coun. Mike Devine said.
“This is a key property right along the river, right beside the Idea Exchange in a very historic part of downtown Galt,” added Mayor Kathryn McGarry.
