MINTO – Town council has approved the sale of a 3.6-acre lot in the Palmerston Industrial Park to an area well drilling company.
The lot had previously been sold to Golden Canadian Homes but was repurchased by the town in December.
The Orangeville-based developer purchased the lot in July of 2021, for $126,000, with plans to construct an industrial mall.
“They were unable to meet our building covenants so we took it back,” said director of building and planning services Terry Kuipers at the Feb. 28 council meeting.
A staff report explains Well Initiatives Limited (WIL) had previously expressed interest in developing in the Palmerston Industrial Park, which resulted in staff notifying WIL of the opportunity.
WIL is a subsidiary of R.J. Burnside Associates Limited.
The company provides water well drilling and maintenance services, specializing in municipal water supply, and has worked with the Town of Minto for 20 years, the report notes.
The report says the company currently employs 10 people and is looking to expand to 14 and offered the asking price of $60,000 per acre ($216,000) for the lot at 345 Minto Road.
Although town development covenants require 15 per cent lot coverage for buildings in the industrial park, “recognizing the need for outdoor storage to operate this business successfully we have agreed to a 12% lot coverage or 18,000 square feet,” the report states.
As the company only requires a building of 12,000 square feet, they plan on leasing the additional 6,000 square feet.
So essentially, we’re bringing two businesses into the park, as opposed to just one,” Kuipers pointed out.
The company aims to complete the building and move in by the end of 2023.
The development is expected to generate over $92,000 in development charges for the town.
Council received the report and authorized the mayor and clerk to sign the agreement of purchase and sale.