The deal for three businesses at the Bloomfield Business Park just south of Chatham has fallen through.
A report by Chatham-Kent Director of Economic Development Services Stuart McFadden stated the owners couldn't get clients in place at the complex on Seventh Line West and Prosperity Way before the one-year timeline expired.
The companies bought the lots in 2022 and the municipal purchase agreements stated construction must start within one year of sale, which was agreed to.
"Due to high interest rates and changing markets, the purchasers have failed to secure clients for their proposed warehousing facilities and have been unable to begin construction without secured leases in place," said McFadden. "Administration is not recommending that further extensions to the 12-month period of commencement of construction be granted and that the purchase funds be refunded and the lands returned to the Municipality."
Staff are recommending that the municipality buy back the lots (eight acres) at the original price of $712,000 instead of providing further extensions on the agreement.
The municipality said the properties will be marketed for economic development.
A numbered company 100249108 Ontario Inc had 2.5 acres, ER Steel Inc. had 2.5 acres, Raco Asset Management Corp. had three acres.
ER Steel is a British Columbia company that is a global supplier of fabricated steelwork and is led by a Chatham-Kent native.
Raco Asset Management wanted to move its metal fabrication company in Guelph to Bloomfield Business Park.
The plan was to join the two companies into one entity that would create 90 full-time design/engineers, project management, logistics, and sales jobs and invest approximately $17 million into the municipality.
The issue goes before Council Monday night.