| Page 9 initial position on compensation was in the order of $85,000 per acre (i.e. net present value of foregone cash flow), compared to the City�s initial strictly market value based position in the $10,000 to $20,000 per acre range for unserviced land requiring rezoning and available for imminent development. Following consultation with the Legal Services Division, and with the Land Development Branch, the Real Estate Division determined there is merit in the developer�s approach and then determined a method for calculating the net present value of the forgone cash flow due to not developing the tree stand. There has been considerable discussion between the developer and the Administration resulting in agreement as to the model to employ in determining price and as to the data to be used. However, there continues to be disagreement on several model input assumptions. The administration�s position is that $65,000 per acre should be the price for any of the land to be purchased; while the developer�s position is at $75,000 per acre, subject to further discussion with its joint venture partner, the Province of Manitoba. However, the developer also professes that it is expert in this matter, provides its arguments and asks that this report indicate that the developer still demands $75,000 per acre. Community Considerations: The Save Our Seine River Inc. (SOS) is a long-term stewardship advocacy group for the protection and preservation of the Seine River. They have taken an aggressive stand on preservation of Bois des Esprits. SOS appears to want to preserve the entire 81.4 acres of tree stand land, which would include the aforesaid Categories Two and Three (13.7 and 2.7 acres, respectively). This would represent approximately 27% of the gross area of the subdivision. However, an additional 10.392-acre active recreational site (shown on Misc. Plan No. 11303/3) would form part of the dedication requirement, thus, approximately 30% of the gross area of the subdivision would be acquired for public use if the entire tree stand were preserved. The issue is to determine how much land the City can afford to purchase. At a proposed price of $65,000 per acre, the 24.5-acre Category One land (32 acres minus 7.5 of which are to be dedicated) would cost in the neighbourhood of $1.6M, subject to legal land survey, plus finance charges and closing costs. Should Categories Two and Three be added (2.7 plus 13.7 acres), the cost would increase by an additional $1.1M, approximately. The Administration considers that the S.O.S. and/or its affiliate organizations should be encouraged to consider other alternatives for the acquisition of either some or all of the remaining tree stand lands. The Department has met with representatives of the S.O.S and on May 31, 2002, with representatives of the Evergreen Foundation relative to the matter of encouraging them to undertake a fundraising campaign for completion before December 31, 2002. These groups advised that they have a strong interest in pursuing this project. Province of Manitoba Position: Bois des Esprits is located within an area owned by Grandin Park Development Ltd, a partnership between the Province of Manitoba (38%) and Ladco Company Ltd. (62%). The City and SOS, both, have approached the Province on several occasions in an effort to obtain a |