The Municipality of Chatham-Kent has reached an agreement with two farms to buy land for a roundabout at Queen's Line and Merlin Road west of Chatham.
The municipality is paying $48,000 an acre for the required land, which according to Farm Credit Canada (FCC) is more than double the local average price per acre of $20,400.
FCC reported local farm land values range between $13,500 and $29,800.
Betty Grace Vince has agreed to sell approximately 0.89 acres of 5657 Queen Line for $42,336 and Pat Gleeson Farms Ltd. has agreed to sell approximately 0.82 acres of 23115 Merlin Road for $39,360.
Chatham-Kent's General Manager of Infrastructure and Engineering Services Ed Soldo told CK News Today the price of the land takes into account various factors, including an appraisal obtained by the municipality and additional compensation for negative impacts to the owners’ farming operations caused by the alteration and reduction of the size of their fields.
"In negotiations for property acquisitions, it is sometimes necessary to consider impacts to existing business operations when determining an appropriate compensation amount," said Soldo. "The Municipality always tries to work with our citizens to find mutually acceptable solutions to land acquisitions like this. We are happy that we were able to land on a purchase price which was acceptable to the owners and which will allow this important project to proceed.
The municipality will also be responsible for reimbursing the property owners for any damage to their existing tiling system caused by the roundabout construction.
The agreements will be up for discussion at Monday night's council meeting.
A council report said the lands will be transferred to the municipality sooner because they are not being expropriated.
Acting Director of Engineering Mark McFadden writes in his report that the deal is expected to be closed by the end of August 2023 at the latest, allowing construction of the roundabout to proceed soon after.
The negotiations took about seven months and the municipality is also on the hook for legal costs incurred by the property owners.
The properties in question are currently used for cash crop farming by the owners.
Chatham-Kent council gave the new $2.1 million roundabout the go ahead in March of 2022 after safety concerns surfaced, including drivers passing on the right-hand side of a left-turning vehicle, one of the most frequent occurrences reported to council following a traffic study.
