Aurora council turns down offer to purchase Highland Gate
$98-million price tag of no interest to Town of Aurora

YorkRegion.com
Dec. 8, 2015
Teresa Latchford

Aurora council has turned down a developer's offer to buy the sprawling Highland Gate land for $98 million.

Highland Gate Developments Inc. first made the public offer to the town last Friday and council was given until Jan. 22 to decide if it wanted the property, which is slated for the development of 184 single-family homes and a 10-storey condominium building, confirmed HGDI spokesperson Cheryl Shindruk.

“Members of the Highland Gate Rate Payers Association, and members of the public repeatedly asked during the three public meetings the Town held this year into the proposed development that the Town buy the land for a park,” she said. “The Town now has the opportunity to do this.”

Council didn't take the month or so to decide and rejected the offer during a council meeting Tuesday night.

Aurora council began its discussion behind closed doors during a special council meeting but after emerging and beginning the regularly scheduled council meeting, Councillor Michael Thompson requested the matter be discussed and voted on in public.

Supported by his fellow councillors, the subject was added to the agenda.

Councillor Tom Marakas started by offering his support in rejecting the sale offer.

"I think the offer was an insult to this town," he added. "I'm in favour of rejecting the offer."

While councillors Jeff Thom and Sandra Humfryes stated they weren't interested in purchasing the property for the price listed, they do hope conversations continue between the developer, residents and town to find a solution before the application ends up at the feet of the Ontario Municipal Board.

"I thought we were doing well with consultation and making some progress," Humfryes said. "I'm confused about where this offer came from and why it's in front of us."

However, Mayor Geoff Dawe wasn't convinced being quick to reject the offer was the way to go.

"I'm not saying I'm in favour of buying the property but it could delay the OMB process long enough to deal with some of the encroachment issues we have been dealing with," he explained.

The purchase offer was rejected in a five to three vote with councillors Harold Kim, Paul Pirri and Mayor Dawe voting not to reject the offer.

Councillor Wendy Gaertner was absent.

The $98 million price tag was calculated by multiplying the developable acreage by the current estimated fair market value, which is $1.5 million per acre. On the former 101-acre golf course, 65.4 acres are developable, according to a statement released by the developer.

If the town had accepted the offer, it would have ended the proposed development of the property and cancelled the appeal to the Ontario Municipal Board filed by the developer and could have meant a 20-year loan that would add another $3.3 million per year just to cover the interest, Dawe added.

Since it has not been accepted, however, HGDI will proceed with the appeal to the OMB.