"INVITATION TO OFFER TO PURCHASE"
INVITATION TO PURCHASE PRIME REAL ESTATE Parkland County, ALBERTA (adjacent to the City of Edmonton, Alberta, Canada) PRESENTED BY: COURTALI INVESTMENTS LTD. #1280, 10123 – 99 Street Edmonton, Alberta T5J 3H1 T: (780) 421-9349 F: (780) 421-8549 2 TERMS OF REFERENCE Invitation to Purchase Courtali Investments Ltd. “Courtali” has entered into an Agreement to purchase the property described below. The property is located in the County of Parkland, approximately 20 minutes west from the City of Edmonton, Alberta, Canada, with one parcel located within the Town of Stony Plain, next to the City of Spruce Grove. Within the Town of Stony Plain: 4-27-053-06-NW (159.01 Acres) Within Parkland County: 4-27-053-07-SW (79.5 Acre Parcel) 4-27-053-07-SE (80 Acre Parcel) 4-27-053-07-N ½ of SE (79.53 Acre Parcel & 80 Acre Parcel) Total Acres (478.04 + or -) (the “Property”) Courtali is pleased to offer an opportunity to purchase and/or partnering of the Property to qualified Purchasers. This is a unique opportunity, firstly as to the size and secondly, as to being located between two of the fastest growing urban centres (Stony Plain and Spruce Grove) situated in the Greater Edmonton region which is considered to be one of the best real estate markets in North America. If you are interested in presenting an offer, please complete the attached Registration Form. The information provided therein will be held by our offices on a confidential basis. Limiting Conditions Any and all information provided in this invitation is believed (but not warranted) to be accurate and is subject to independent verification by the recipients to their own satisfaction. It is provided solely for informational purposes to aid a prospective Purchaser in determining whether or not it will proceed with further investigations of the Property and not to be construed as the basis of an offer to sell. The Owner and its agents make no representations or warranties with regard to the Property including without limitations, its size, condition, environmental condition, developability of the Property, zoning or utility services. Courtali Investment Ltd. reserves the right to withdraw or amend the terms of this Invitation without prior notice. 3 Location of Subject Property in the Greater Edmonton Region 4 PROPERTY DESCRIPTION The Property Within the Town of Stony Plain: Approximately 160 Acres Within the County of Parkland: Approximately 320 Acres Total Acres (478.04 + or -) General The land is slightly rolling and generally falls Description towards the northeast. There is a small creek that bisects the two western quarters of the property, which joins a larger creek (Atim Creek) that traverses the third easterly quarter section. Most of the land is open and is used for farming. The easterly portion of the land is heavily treed and bounds Atim Creek. Site Improvements Houses and ancillary buildings are located on two of quarter sections. There is a transmission tower on the northwest corner of the southwestern quarter section of the land. Address Municipally described as 53109 Range Road 280, Stony Plain, Alberta Legal Descriptions As set out in Terms of Reference. Site Area 478.04 Acres, more or less Location The Subject Property is located 20 minutes from the west boundary of the City of Edmonton, Alberta between the expanding municipalities of the City of Spruce Grove and the Town of Stony Plain. 5 Zoning Since the land is located in two municipalities (Stony Plain and Parkland County (See Attachment 2) there are two distinct zoning bylaws in consideration. The 159.01 acres that are situated in Stony Plain are zoned for future Business Industrial as indicated in the Town’s Municipal Development Plan (2006). This zoning is consistent with the adjacent lands to the south, east and west which are all located in Stony Plain. The 320 acres that are situated in Parkland County are primarily zoned for large residential lots. The 5th Meridian Area Structure Plan (2001) has been approved into bylaw and encompassed these lands. The ASP states that the residential lots are to be a minimum of one-half acre in size and are to be fully serviced. The parcel presents a unique opportunity to participate in the local services (schools, hospitals and amenities) while remaining in the Parkland County taxation regime. Further under the new area structure plan in combination with the full local services, maximum densities should be available. This cross over of services and estate lot property zoning in the heart of a large and growing urban centre should trigger a favourable market response to the high end product. Infrastructure The 159.01 acres in Stony Plain will be serviced Servicing with sanitary, water, stormwater, roads, and shallow utilities. The sanitary sewer for this land would flow by gravity to the north property line, where it would then connect to the Capital Region’s wastewater collection system. The pressurized water system would connect to the south and to the east of this property and loop through the site. Stormwater would be dealt with through on-site stormwater management facilities then drain to the creek which bisects this quarter section. Major road connections will come from Golf Course Road on the west and a future arterial road to the north. Shallow utilities (gas, power, communications) will be brought to site by the appropriate Franchise Utility company. 6 The 320 acres in Parkland County will also need to be fully serviced. Sanitary sewer will connect to the Capital Region’s wastewater collection line which crosses these lands. Stormwater will be controlled onsite and discharged at the predevelopment flow rate into Atim Creek (which bisects the easterly portion of this land). City water servicing, according to the ASP, is to come from Stony Plain to the south. Major road access will be gained from Golf Course Road on the west and a future arterial road on the southern boundary of the quarter sections. Shallow utilities (gas, power, communications) will be brought to site by the appropriate Franchise Utility company. For further information, please refer to the Municipal Development Plan available on the Parkland County website: www.parklandcounty.com Property Total 2006 Levy: $3,651.94 Tax Levy Parkland County Parkland County (see Attachment 2) is situated on the west outskirts of the City of Edmonton, Alberta, Canada and extends approximately 80 kilometres (50 miles) to the Pembina River. The southern boundary of the County is marked by the North Saskatchewan River, while the northern boundary separates Parkland County from Lac Ste. Anne and Sturgeon Counties. Parkland County surrounds the City of Spruce Grove and the Town of Stony Plain, but is a completely separate municipality. Sharing boundaries with the City of Edmonton, the County is only minutes from major amenities such as the Edmonton International Airport, West Edmonton Mall and the downtown core. Parkland County has an estimated population of over 30,000 and has a mix of agricultural, residential, industrial, commercial and recreational opportunities. 7 More information about the County of Parkland is available at: www.parklandcounty.com Stony Plain The Town of Stony Plain is located 17 kilometres (10 ½ miles) west of Edmonton on Highway 16A. Stony Plain has a population of approximately 9,589 and services a surrounding population of almost 60,000. More information about the Town of Stony Plain, including a Business Development package, is available at the following website: www.stonyplain.com Spruce Grove The City of Spruce Grove is a suburban satellite community located approximately 11 kilometres (7 miles) west of Edmonton. Spruce Grove offers all of the amenities of a progressive urban centre and is one of Western Canada’s fastest growing communities. Spruce Grove’s population based on the 2005 municipal assessment was 18,405. The City of Spruce Grove is currently experiencing strong commercial and residential development activity, including several large retail developments and residential subdivisions. More information is available about the City of Spruce Grove at the following website: www.sprucegrove.org Greater Edmonton and Greater Edmonton is an excellent location for Area Highlights companies considering investment in Alberta. It is a world hub for the oil, gas and petrochemical industries and is one of the world’s most cost- competitive business environments (KPMG 2006). Edmonton has an annual GDP of more than $42.5+ billion and experienced unprecedented growth during 2006. “We need to tell Canadians that Greater Edmonton is now an economic powerhouse, offering exceptional investment opportunities, 8 economic diversity and compelling cost- competitiveness.”, says, Allan Scott, Past - President and CEO of Edmonton Economic Development Corporation. The Edmonton Real Estate Board announced in April, 2007 that the average price of a single family dwelling in the Edmonton area increased over 6% in March. Single family homes have increased 16.5% during the first quarter of 2007 to continue a trend that started in 2006. The average selling price for the 1,263 single family dwellings sold in March, 2007 was just under $400,000. “The average price for a single family home continues to increase in a very active market,” said Carolyn Pratt, President of the EREB. April 2007 residential sales were 20% higher than the previous April. For additional information regarding doing business in Alberta and announcements regarding the Greater Edmonton region, please refer to the following websites: http://www.ereb.com/marketactivity/March2007.ht ml http://www.strathconacounty.com/pdfs/stats/EED C_EconomicUpdate2007.pdf http://www.edmonton.ca/infraplan/Economic%20I nformation/SocioEconomic%20Outlook/Edmonto n%20Outlook.pdf http://www.edmonton.com/eedc/ede_news.asp?p age=111&toolid=1091 http://www.edmonton.com/categorydocuments/Q uarterly%20Reports_11/Q4_final.pdf Alberta’s Industrial The Province of Alberta is the home of Alberta’s Heartland Industrial Heartland (AIH) which consists of 300 square kilometres (186 square miles) along both banks of the North Saskatchewan River, north and east of Edmonton, the Provincial capital. Within AIH, bitumen upgraders worth $22 billion 9 are either in the ground or on the drawing board, along with a number of other heavy industrial expansions. It should be noted that Alberta contains more than 1.7 trillion barrels of bitumen. Alberta’s conventional oil reserves are estimated about 4.5 billion barrels of oil. There are currently 6 upgrading projects, with 2 more possible. Construction is under way for the BA Energy upgrader and Shell's Scotford expansion. Pre-construction preparations have started for three new upgraders: North West, Synenco Northern Lights and Petro-Canada Fort Hills. Total E&P Canada, a subsidiary of France's Total, has purchased land within AIH but has yet to announce where its upgrader will be located. North American Oil Sands has announced that it will build within in AIH and Suncor, which currently handles its bitumen upgrading near Fort McMurray (located in northern Alberta) has optioned AIH acreage suitable for a major plant. Factoring in the oil sands located in Fort McMurray, Canada's proven oil reserves are reported to be nearly 180 billion barrels, second only to Saudi Arabia, and are among the largest in the world. For additional information regarding doing business in Alberta and announcements regarding the AIH, please refer to the following websites: http://www.strathconacounty.com/pdfs/stats/EED C_EconomicUpdate2007.pdf http://www.strathconacounty.com/pdfs/news/Total UpgraderAnnouncement.pdf www.strathconacounty.com http://www.dobmagazine.nickles.com/printer.asp? article=magazine%2F070415%2FMAG2007%5F AF0001%2Ehtml http://www.alberta-canada.com 10 Present Ownership Courtali Investments Ltd. has entered into a Purchase Agreement to purchase the Property from private owners. Courtali Investments Ltd. identified and acquired the Property, recognizing that it is one of the best opportunities in a dynamic Edmonton market. Expressions of Interest Expressions of interest may be directed to your Contact or to Courtali Investments Ltd. at: COURTALI INVESTMENTS LTD. 1280, 10123 – 99 Street Edmonton, AB T5J 3H1 Attention: Garry G. Wetsch, Q.C. Phone: (780) 421-9349 Fax: (780) 421-8549 Email: firstname.lastname@example.org 11 ATTACHMENTS The Attachments shall consist of: Maps Attachment 1 - Province of Alberta Attachment 2 - Parkland County (Detailed On-line Map Available – See www.parklandcounty.com/Assets/Planning/ Subdivision+Maps/County+Ownership+Map.pdf Comparables Attachment 3A - Realtor Report for Spruce Grove/Stony Plain Area Attachment 3B - Comparables – General Information Attachment 3A/3B - Comparables Map Attachment 3C - Comparables – General Information Attachment 3C - Comparables Map Attachment 4 - City of Edmonton Land Comparables Process to Provide Offer to Purchase 12 ATTACHMENTS Attachment 1 – Province of Alberta 13 Attachment 2 - Parkland County 14 Attachment 3A - Realtor Report for Spruce Grove/Stony Plain Area* 2007 Land Sales Activity 80 Acres + Spruce Grove Stony Plain Area # QTR TWP RGE MER ACRES PER ACRE #1 SE 2 53 27 W4 145 ACRES +- $ 80,000 #2 SW1 53 27 W4 75 ACRES+- $ 65,000 #3 NW32 52 27 W4 140 ACRES+- $120,000 #4 NE29 52 27 W4 151 ACRES+- $ 37,500 #5 SW32 52 27 W4 130 ACRES+- $ 40,000 #6 SW29 52 27 W4 140 ACRES+- $ 37,500 #7 SE6 53 27 W4 152 ACRES+- $ 90,000 #8 SW1 53 1 W5 150 ACRES+- $ 60,000 #9 N1/2 NW1 53 26 W4 80 ACRES+- $ 65,000 #10 S1/2 NW1 53 26 W4 80 ACRES+- $ 65,000 Statistics compiled by; Bob Morrison Broker/Owner Royal LePage Westgate Real Estate Spruce Grove, Alberta Attachment 3B - Comparables – General Information # LOCATION ACRES PER ACRE #11** South of Stony Plain 160+/- Acres $90,000 (Purchase Price) #12** South of Stony Plain 160+/- Acres $95,000 (Purchase Price) #13** West of Stony Plain $125,000 (Asking Price) **Property Location not plotted on map. Although this information was obtained from sources believed to be reliable, its accuracy is subject to error and should not be relied upon without independent verification. *See Comparables Map 3A/3B – Page 14 15 Attachment 3A/3B – Comparables Map ( Indicates Subject Property) 10 9 8 7 1 2 3 5 4 6 16 Attachment 3C - Comparables – General Information (continued) # LOCATION ACRES SOLD FOR #1* North of Spruce Grove 2.16 Acres $259,900 #2* North of Spruce Grove 1.16 Acres $265,000 #3* North of Spruce Grove 1.98 Acres $235,000 #4* North of Spruce Grove 2.01 Acres $245,000 *This information was obtained from the MSL service and is believed to be reliable; however, its accuracy is subject to error and should not be relied upon without independent verification. See Comparables Map 3C - Page 16. 17 Attachment 3C – Comparables Map ( Indicates Subject Property) 18 Attachment 4 - City of Edmonton Land Comparables SOLD FOR # LOCATION LEGAL ACRES (PER ACRE) #1 156 St. & 137 Ave. Pt. 2/2/0227666; 112.34 $249,243 3/2/0423269 #2 34 St. & 27 Ave. N½ SW-5-52-23-W4 80 $115,000 #3 34 St. & 23 Ave. NW-31-51-23-W4 145.29 $200,000 #4 3404 – 141 St. W½ SE-14-51-25-W4 80 $125,000 #5 103 170 St. N½ SW-27-51-25-W4 80.5 $175,000 #6 12820 – 170 St. Pt. SE-21-52-25-W4 129.89 $125,000 #7 199 St. & Lessard 3/7620329 80.06 $165,000 Road** #8 50 St. & 167 Ave.** 1/7722209 242.04 $135,000 #9 17130 Ellerslie Pt. SE-28-51-25-W4 155.88 $200,000 Road** #10 156 St. & NE-22-51-25-W4 160 $200,000 Ellerslie Road #11 1461 – 66 St. Pt. NW-23-51-24-W4 80 $150,000 #12 192 St. & 137 Ave. Pt. NW-20-53-25-W4 95.4 $125,786 #13 170 St. South of S½ Ellerslie Rd. NE-21-51-25-W4 80 $230,000 *This information was obtained from “The Network”, an independent research company, and is believed to be reliable; however, its accuracy is subject to error and should not be relied upon without independent verification. **Pending Sales 19 PROCESS TO PROVIDE OFFER TO PURCHASE COURTALI LANDS Stony Plain, Alberta i) Supplementary Information Package: All parties who are interested in receiving a Supplementary Information Package shall complete and sign the enclosed Registration Form by November 5, 2007 and forward it via fax or email to: Attention: B. Jensen Phone: (780) 421-9349 Fax: (780) 421-8549 Email: email@example.com ii) Inquiries: Any inquiries with regard to the process or material relating to this Offer should be directed in writing to the following: COURTALI INVESTMENTS LTD. 1280, 10123 – 99 Street Edmonton, AB T5J 3H1 Attention: Garry G. Wetsch, Q.C. A supporting team of experts and advisors are available to answer any inquiries. iii) Offer to Purchase: All Offers to Purchase shall be on the form provided with the Supplementary Information Package and shall be irrevocable and open for acceptance until the Deadline Date. Courtali reserves the right to undertake such investigations as to the structure and financial capability of the prospective Purchaser as the beneficial Owner in its sole discretion deems necessary, and the submission of an Offer to Purchase by a prospective Purchase shall constitute consent to such investigation. Offers to Purchase will be evaluated on the basis of financial capabilities of the prospective Purchaser, terms and conditions of the offer, closing and condition dates, and other considerations determined at the discretion of Courtali. 20 iv) Deadline for Offer to Purchase: Offer to Purchase must be received at the offices of Courtali, which are located at Suite 1280, 10123 – 99 Street, Edmonton, AB T5J 3H1, by 12:00 noon on November 15, 2007. POINTS TO BE AWARE OF: 1. Condition of Property The Property will be sold in “as is” condition and Courtali will be making no representations or warranties (in the Purchase Agreement or otherwise) about the Property. 2. Third Party Broker/Real Estate Commissions: Courtali is represented by Garry G. Wetsch, Q.C. and his team of professionals. In the event that a prospective Purchaser elects to obtain representation by a real estate agent, any compensation or commissions due to the Purchaser’s agent are to be paid solely by the successful Purchaser.