Instructions to Bidders:

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1 Instructions to Bidders: LAND FOR SALE BY SEALED TENDER 2017 SALE OF BRAZEAU COUNTY S FORMER SHOP 5.01 Acres - Lots 5 to 9 inclusive & S½ of Lot 10, Block Industrial Road, Drayton Valley, Alberta Sealed bids marked "2017 SALE OF BRAZEAU COUNTY S FORMER SHOP will be received at the offices of Brazeau County (the County), Public Works and Infrastructure Department (PWI), Twp. Rd. 494, Drayton Valley, Alberta, T7A 1R1 up to 2:00 p.m. local time, November 23 rd, Offers will be opened publicly at 2:05 p.m. local time on November 23 rd, 2017, at the County Office. Offers received after the Tender Closing Time will be returned to the Bidder unopened. Bid documents will be available and can be downloaded from Brazeau County`s webpage and Alberta Purchasing Connection (APC) from 5:00 PM on October 31 st, The bids must remain valid for at least sixty (60) days. By submitting a bid prospective bidders agree to the following terms: The property is being sold as-is. There are no representations of warranties, express or implied, as to the fitness of the land for any particular purpose. Brazeau County reserves the right to accept or reject any or all tenders in whole or in part. Bidders are encouraged to inspect the property prior to placing a bid. Brazeau County (or its designate) holds the right to have undisturbed access to the monitoring wells, located onsite for groundwater monitoring after the sale of the property is concluded. A $3,000 deposit is required via certified check only which must be payable to Brazeau County. No offer will be accepted without a Bid Deposit in the form and amount indicated. Brazeau County will only accept bids higher than $1.7 million Canadian dollars. Initial each page of the tender form, failing to do so may render the bid incomplete. The complete Ground Water Monitoring report dated (June 12 th, 2017) is available on APC and County website. The highest tender bid will not necessarily be accepted. Bidders may be required to provide supplementary information after the closing date to support their tender. Interviews may be conducted with potential Bidder, either in person or by telephone. In addition to the $3,000 deposit, the balance owing and any applicable GST owing must be paid within 90 days of the date of the Purchase Agreement. All adjustments for property taxes shall be on the first day of the month following the date of the Purchase Agreement. There will be no exceptions as to the conditions of this tender. A compulsory site visit will be held at Brazeau County s shop (property being sold) located at 5524 Industrial Road, Drayton Valley, Alberta, at 10:00 a.m. November 20 th, Each tender must be submitted in a sealed envelope plainly marked, 2017 SALE OF BRAZEAU COUNTY S FORMER SHOP, addressed as follows: Zimran Khokhar Project Manager Brazeau County Box Twp Rd 494 Drayton Valley, Alberta T7A 1R1 zkhokhar@brazeau.ab.ca

2 LAND FOR SALE BY SEALED TENDER 2017 SALE OF BRAZEAU COUNTY S FORMER SHOP 5.01 Acres - Lots 5 to 9 inclusive & S½ of Lot 10, Block Industrial Road, Drayton Valley, Alberta Tender Form Index Offer of Purchase Land Tender Form... 3 Brazeau County's Former Shop: Location Map... 4 Brazeau County s Former Shop: Property Details... 5 Brazeau County s Former Shop: Property Photos... 6 Brazeau County s Former Shop: Building Details... 7 Brazeau County s Former Shop: Interior Building Photos... 8 Brazeau County s Former Shop: Cold Storage Photos Brazeau County s Former Shop: Building Details Brazeau County s Former Shop: Property Rating Brazeau County s Former Shop: Title Data Brazeau County s Former Shop: Lot Size Plan APPENDIX A: Ground Water Monitoring Report Summary... 15

3 LAND FOR SALE BY SEALED TENDER 2017 SALE OF BRAZEAU COUNTY S FORMER SHOP 5.01 Acres - Lots 5 to 9 inclusive & S½ of Lot 10, Block Industrial Road, Drayton Valley, Alberta Offer of Purchase Land Tender Form: This offer is to purchase 5.01 acre parcel of land located at 5524 Industrial Road, Drayton Valley, Alberta including lots 5 to 9 inclusive & S½ of lot 10 block 33. The offer being made below is subject to the procedures, terms and conditions outlined in this document. The undersigned bidder hereby offers and agrees, if this bid is accepted, to establish suitable industrial use of the property, obtain all required permits and to purchase the land within 90 days of the date of Purchase Agreement. The bidder also agrees to provide Brazeau County access to the County s designated groundwater monitoring well sites located on the property. Bid Amount: Bid Deposit: $3,000 Name: Address: Company Name: Cell: City: PC: Fax: Telephone: Signature Date The Bidders will be required to enter into a Purchase of Land Agreement within 90 days of notification of award of tender. (Initials).

4 MAP:

5 : Owner: Brazeau County Property Location: Property Address: Type of Property: Outbuildings: Land Use: Land Size: Building Size: Lot 5: (3 bay garage) Lot 6: (vacant lot) Lot 7: (vacant lot) Lot 8: (office & service shop) Lot 9: (office & service shop) South ½ of Lot 10: (office & service shop) Total site area: Front office: Former welding shop: Rear 2-bay concrete block shop bays: 4-bay maintenance shop: Single bay storage garage: Total building area: Drayton Valley, Alberta Industrial Road, Industrial office and service shop, complete with 5-ton bridge crane plus compressor Slant wall Quonset & 3-car garage C-2, Commercial District 0.89-acres (more or less) 0.90-acres (more or less) 0.90-acres (more or less) 0.91-acres (more or less) 0.92-acres (more or less) 0.49-acres (more or less) 5.01-acres (more or less) 1,980 sq.ft. 1,560 sq.ft. 2,000 sq.ft. 4,350 sq.ft. 480 sq.ft. 10,370 sq.ft. Age of facilities: Year of construction 1970, 1976 & 1980: Effective age 1975

6 Front view of subject office and service shop Rear view of subject office & service shop

7 Property: Type: Design: Style: Year Built: 1970 Multi tenant: Single Storey: Yes Industrial Office & Service Shop Additions: Single tenant: Two Storey: 8-bay service shop with crane Actual Age: 46-years Owner-user: Yes Mezzanine: Total Building Area: Effective Age: 40-years Industrial Bus: Yes Other: 10,370 sq.ft. Main front office: 40 x 49.5 = 1,980 sq.ft. 2 nd floor office area: N/A Former welding shop area: 39 x 40 = 1,560 sq.ft. Shop mezzanine: N/A 2-bay concrete addition: 40 x 50 = 2,000 sq.ft. Storage garage addition: 16 x 30 = 480 sq.ft. 4-bay steel fame service shop: 50 x 87 = 4,350 sq.ft. Other: N/A Building footprint: 9,890 sq.ft. Total Additional Storage Area: 480 sq.ft. BUILDING FEATURES, FINISH AND EQUIPMENT: Grade Beam: Re-enforced poured concrete grade beam on concrete piles. Main Floor: Appears to be typical 4 poured concrete slab over vapor barrier on compacted granular fill for front office and 6 poured concrete slab over vapor barrier on compacted granular fill for service shop area. Construction: Part insulated wood frame for front office section and steel frame welding shop area, concrete block construction for rear two bay addition, and steel frame construction for four bay shop addition. Floor Joists: None Roof Construction: Pre-engineered wood roof trusses supported by wood frame perimeter walls, insulated, plywood sheathing, and torched on roofing. Steel roof trusses, insulated and finished metal cladding over shop area plus standing seam metal cladding on steel frame shop area. Electrical: 3 phase 400 Amp main (commercial service) Plumbing: Copper & plastic plumbing lines. Fixtures: New 3-pce washroom in front office area (shower). Heating: Two new forced air furnaces for front office complete with air conditioning, make up air unit, etc. Overhead heat injector in service shop area. Front Office Area: Interior office area has been gutted and flooring has been stripped. New insulation and painted drywall, most partitions removed. Ceilings: Suspended acoustical tile in front office and exposed purlins in service shop. Millwork: None Windows: Upgraded PVC prefinished window units in front office area and aluminum frame front office entrance doors. Type of Flooring: Exposed concrete throughout. Former office flooring removed and space gutted available for new finishing. Mezzanine: None Overhead Doors: 5 Bay doors (3-16 x 14 and 2 18 x 14 ) in maintenance shop area, 2-15 x 14 in service shop, 2-14 x 16 doors in welding shop, & 1 10 x 10 in storage garage. Equipment: 5-ton overhead bridge crane Renovations & Upgrades: Roof repairs completed in 2015 along with new plumbing and electrical in front office. Former front office area has been gutted, new insulation and drywall added, new T-bar ceilings, new bathroom, new plumbing and heating, roofing upgraded, new windows, etc. Subject office and service shop has been well maintained throughout, and is in fair to average condition for age of construction however being developed in stages, the building has an irregular floor plan and varying ceiling height.

8 BRAZEAU COUNTY'S FORMER SHOP: Interior Building Photos Original office and service shop Interior view of front office area Interior view of front office area Interior view of office washroom Interior view of new heating system for office area Interior view of original service shop-welding shop Interior view of original service shop-welding shop Industrial Road, Drayton Valley, Alberta - pg. 8

9 BRAZEAU COUNTY'S FORMER SHOP: Interior Building Photos Interior view of rear two bay shop addition Interior view of rear two bay shop addition Interior view of 4-bay service shop addition Interior view of 4-bay service shop addition Interior view of 5-ton overhead bridge crane Interior view of main electrical service Industrial Road, Drayton Valley, Alberta - pg. 9

10 BRAZEAU COUNTY'S FORMER SHOP: Cold Storage Photos Front view of slant wall cold storage Quonset Rear view of slant wall cold storage Quonset Industrial Road, Drayton Valley, Alberta - pg. 10

11 BRAZEAU COUNTY'S FORMER SHOP: Building Details Year Built: Property: 1978 N/A Additions: Actual Age: 38-years Effective Age: Main front office: Building footprint: 35-years Type: Design: Yes Style: Slant wall Quonset Multi tenant: Single Storey: Single tenant: Two Storey: Cold storage loader garage Mezzanine: Total Building Area: Owner-user: Industrial Bus: Yes Yes N/A 40 x 72 2,880 sq.ft. Other: Mezzanine storage: Total Additional Storage Area: 2,880 sq.ft. N/A N/A BUILDING FEATURES, FINISH AND EQUIPMENT: Grade Beam: Re-enforced poured concrete grade beam on concrete piles. Front Office Area: None Main Floor: Compacted gravel base Ceilings: Open metal cladding Construction: Steel frame and metal cladding. Millwork: None Floor Joists: None Windows: None in bay rear door only. Roof Construction: Pre-engineered steel roof trusses finished with metal cladding. Type of Flooring: None Electrical: 100 Amp electrical service for plugs and lights Mezzanine: None Plumbing: None Overhead Doors: 1 14 x 20 overhead metal clad bay door in front and on rear bay door of 10 x 10. Fixtures: None Equipment: None Heating: None Renovations & Upgrades: Large bay door replaced prior to Slant wall Quonset building utilized for cold storage or loader garage. Building is wired and has lighting and plugs but no heat. Quonset has been well maintained but in need of some minor repairs to metal cladding. Interior view of slant wall Quonset Interior view of slant wall Quonset Industrial Road, Drayton Valley, Alberta - pg. 11

12 GOOD AVERAGE FAIR POOR COMMENTS: Quality of Construction: Former County office and service shop has been developed in stages from 1970 to 1980 including a mix of concrete block and steel frame construction. Shop bays have varying ceiling height and 4-bay shop addition is suitable for servicing larger equipment and heavy trucks. Condition of Improvements: Overall condition of the building varies as the front office has been gutted and new insulation and drywall has been added, new plumbing and heating but no partitions or flooring. Shop bays are in fair condition and require painting and general clean up. Insulation Adequacy: Assumed to be as per building code when developed. Plumbing Fixtures: Only one upgraded 3-pce washroom. Electrical: 3-phase 400-amp main commercial service Energy Efficiency: Unknown Economic Building Life: Concrete block and steel frame metal clad building construction has a typical life expectancy of at least 50- years if maintained on a regular basis. Based on observed condition, effective age of the subject building is estimated to be 40-years. Roof repairs have been completed; and office plumbing, heating, and electrical upgrades have extended life expectancy of the building yielding an expected remaining economic life of 20-years. Compatibility to Neighborhood: There is a mix of the industrial office and service shops along with some manufacturing facilities situated in Drayton Valley and the subject office and service shop with 5-ton overhead crane is compatible with surrounding land uses. Building Appeal: Overall street appeal of the subject property is average however the location on Industrial Road backing onto Hwy #22 is excellent.

13 As at the date of Title search March 8 th, 2015, the subject property was registered in the name of Brazeau County of P. O. Box 77, 7401 Township Road 494, Drayton Valley, Alberta T7A 1R1. Encumbrances registered on title were as follows: 1. None Typically, pipeline easements and utility rights-of-way impact land development and placement of buildings on land, as no improvements can be constructed over pipelines or utility lines. There are no registered utility lines and easements noted on the subject land parcels and there has been adverse impact for placement of the buildings on the subject land. There are no registrations or restrictions noted on title that would adversely impact market value of the subject property nor negatively impact Highest and Best Use of the subject land.

14 Lot acres, Lot acres, Lot acres, Lot acres, Lot acres, and south half of Lot 10 is 0.49-acres providing a total site area of 5.01-acres (more or less) or 218,236 sq.ft. See following site plan for further details.

15 ADDENDUM FOR GROUNDWATER MONITORING REPORT CLIENT Brazeau County APPROVER LOCATION LSD W5M OPERATING AREA Drayton Valley PROJECT 3164 DATE June 12, 2017 R E P O R T S U M M A R Y Brazeau County retained Earthmaster Environmental Strategies Inc. (Earthmaster) to complete a Groundwater Assessment at the LSD W5M maintenance yard. The report 1 provides a summary of the results and conclusions of the 2016 field activities. Earthmaster conducted one round of groundwater sampling for existing monitoring wells where historical chloride concentrations exceeded 500 mg/l. Laboratory test results for groundwater samples collected from the monitoring wells showed sulphate, sodium, chloride and TDS concentrations that did not comply with the Alberta Tier 1 remediation guideline values. The chloride concentration values are consistent (static) with the concentrations obtained for groundwater samples collected from these wells in November 2015 with the exception of sample P14-1 which showed an increase in chloride concentration. A total of six surface water samples were collected from the run-off culvert, the adjacent creek, the storm water channel, and the ditch channel. Laboratory test results for the surface water ditch sample showed chloride and TDS concentrations that did not comply with the Surface Water Quality Guidelines for Use in Alberta. All other surface water samples complied with remediation guideline values. Shallow groundwater flow was interpreted to be to the southwest which is consistent with historical results. R E C O M M E N D A T I O N S Groundwater chloride results were consistent with historical data and showed a mostly level trending analysis. Additional soils and groundwater analysis is required for complete delineation of the contamination plume. In April 2016, AEP indicated in an to Brazeau County that monitoring every two years was acceptable except where chloride levels exceeded 500 mg/l, for which annual monitoring would be required. Annual monitoring is still required for surface water discharge to the creek. 1 Earthmaster Environmental Strategies Inc., 2016 Annual Groundwater Monitoring LSD W5M (Industrial Road Maintenance Yard). Unpublished report prepared for Brazeau County. June 2017.