The City of Cambridge has negotiated a conditional agreement of purchase and sale of 27 Dickson St and 20 Ainslie St N for $2 million that needs approval from city council.
The purchase will transfer ownership of the Dickson Street parking lot and laneway behind the soon to be opened The Mule restaurant and Sugar Daddies Bakery.
Add in taxes and ancillary costs and the deal will be for roughly $2.1 million. The capital project land acquisition would need to be increased by $1 million with the city recommending the additional funding be pulled from the Core Area Transformation Fund.
The city currently leases 27 Dickson St from Ganahl Canada Ltd. and Tom Watson for approximately $53,100 annually but the lease agreement is set to expire on June 30.
The city has the options of renewing the lease for two additional terms of five years each.
It doesn’t lease the laneway.
The city already owns 7 Dickson St, which is the other property that makes up the lot.
A report headed to city council on April 25 says the city and land owners have worked for years on the purchase and sale of the property but were unable to come to an agreement.
Negotiations resumed on June 21, 2021.
“Purchasing the properties is a strategic land acquisition that secures the lands necessary for the city to continue providing convenient parking to visitors to downtown Cambridge in support of local businesses.,” the report says.
It will also provide the opportunity to “make a larger and more viable land parcel for future development opportunities.”
Parking in the downtown has been an issue for many businesses, and with new events and venues on the horizon, some are wondering how the core will be able to handle the additional vehicles.
The purchase also helps the city secure the land as part of the Dickson Street Streetscaping Project, which includes the parking lot.
The funds needed for the purchase isn't the only cost the city will take on.
With the parking lot occasionally experiencing flooding, $295,000 is needed to fund capital works for an interim flood mitigation solution.
The work would be performed in 2024 as part of capital budget, with the money coming from the Core Area Transformation Reserve Fund, and would be funded as either a separate capital project or within the Dickson Street Streetscaping Project.
The agreement has been signed by the property owner and is irrevocable until May 10, 2023, with the city needing to sign back by that date in order to secure the properties.
