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In view of the fact that there is no available funding source, Council can approve an
additional appropriation in the amount of $1.65M plus incidental administrative and other
costs to close the proposed transaction. The additional appropriation can be adjusted
downwards to reflect available money in the General Unspecified Purposes Account and the
Riel Community Land Dedication Reserve Account and to reflect any waiver of development
fees.

Ladco clearly favours either a cash payment or deferred payment together with interest.
Perhaps it may be possible to negotiate a payment schedule, which of course, would require
the payment of interest on the unpaid balances.

B) Land Exchange

There are available real property assets which could be offered in exchange in payment of all
or part of the price payable. These assets include residential, industrial and agricultural
lands.

There appears to be an opportunity to deal with each of the 2 partners in this Joint Venture
(i.e. Ladco and the Province) separately. There are several city-owned residential subdivision
sites in the Riel Community which would, in the Department�s opinion, lend themselves to
exchange with Ladco. These sites are located at the west end of Sterling Avenue and on Rue
du Monastere.

There are also several sites in the Riel Community which lend themselves to exchange with
the Province. For instance, the Province has advised that it would consider a land exchange
involving City-owned properties lying to the south of Bishop Grandin Boulevard and west of
Waverley Street and, if necessary, can include certain inner City properties that would be
useful in implementing a bi-lateral housing initiative. This requires further consultation with
the Province.

Ladco has advised that it may be interested in these lands provided that there is no undue
delay in conveyance of those assets and further provided that the City is prepared to
recognize the present worth of those assets relative to their most likely date of
sale/development.

The developer is concerned with the likely duration and the difficulty inherent in any process
to �swap� lands.

The Department has been withholding the 2 residential subdivision sites from the market in
order for possible use in a land exchange. However, the Department does not support
holding these sites for an indefinite period of time. Should this alternative be desirable, then
the Department suggests that the Ladco be offered a first opportunity to purchase these City owned sites within a specified period of time and at a price which is acceptable to the City,
failing which, the City would proceed to market the properties.

Should either of these sites be acceptable to Ladco, then, the Department will submit a
further report to the Standing Policy Committee on Property and Development
recommending the transfer of title at which time, the Committee will be advised as to the
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