Transformation of the northeast corner of the former downtown hospital lands is set to begin.
The town has reached a deal to sell a two-hectare parcel of the former Oakville Trafalgar hospital lands to a developer interested in building 35 homes on the land.
Based on a 2017 town-approved master plan for the site, the developer will build 19 detached houses along the Macdonald Road and Allan Street frontages, plus an interior road and 16 townhouses toward the middle of the property.
Town council voted in favour of the sale at its meeting on Nov. 15.
"It’s been a long time coming to see the area around the community centre start to fill in," said Ward 3 councillor Janet Haslett-Theall.
The deal calls for the developer to complete the construction of the first house within five years and the entire development within ten years.
Town planning director Gabe Charles told councillors that an architectural controls process would allow town staff to work with the developer to ensure the character of the neighbourhood is maintained.
The deal includes a repurchase agreement that will allow the town to buy back the lands at a reduced price if the developer fails to meet development conditions, files for bankruptcy, sells the lands or applies for amendments that are opposed by the town, according to the public staff report presented to council.
Councillors also received details of the deal in a confidential report and private session.
The undisclosed sale price for the property will be put into the general capital reserve to replace the cost of demolishing the old hospital, building the community centre and retrofitting the parking garage on the site.
Last fall, the town opened the Oakville Trafalgar Community Centre, home to a gymnasium, walking track, pools and community rooms.
The town attempted to sell the subdivision land in 2018 but failed to find a buyer. It subsequently dropped demands that a developer use geothermal energy for the new houses and complete construction within five years.
The overall site master plan for the former hospital lands calls for a residential area in the north, the community centre and park in the middle and a senior-oriented housing district in the south, including a civic square in front of the old high school and passive park space along Allan Street.