DEPUTY MINISTER OF TRANSPORT
OTTAWA, CANADA.
September 10th, 1959
File: 26-10-7
Dear Sir:
Re: Gap Filler Stations - Tobermory Site, Ontario
Your File: S10-136-80/5 (CCE/Prop)
Reference is made to your letter of August 7th concerning your requirements for Gap Filler Site at Tobermory, Ontario.
The parcel of land required adjoined an active gravel pit and the owners of the pit, Messrs Angus S and Ernest H Ralph, are reluctant to sell the land as it was just recently acquired for gravel deposit purposes.
An inspection of the pit discloses that there is approximately 3 feet of overburden and the gravel deposit is at least 25 feet in depth appearing to be of good quality. The gravel has been tested and found suitable by the Department of Highways, also, considerable quantity was sold recently from this pit for Highway construction.
Inquiries disclose there is ample supply of gravel in this area and that these lands have recently sold for between $100.00 and $150.00 per acre. Since the Ralph pit is active and the area required for your site is in a direct line for excavation in the near future, the owners are reluctant to sell this area except on a cubic yardage basis, as follows:
| Site | 100' x 200' x 21' depth | 15,250 cu yds |
| Right-of-way | 20' x 290' x 21' depth | 4,700 cu yds |
| 19,950 cu yds |
Average price of gravel at pit: .07¢ per cu yd
Value of gravel: approximately 20,000 cu yds @ .07¢ = $1,400.00
The Ralphs are prepared to accept $1,000.00 for this parcel on the understanding that the right-of-way be located along the lot line, as shown on the attached sketch. Due to the high asking price an option was not taken as it would tend to establish land value out of line with existing values in this area.
The adjoining owners' property appeared to be just as suitable to your Consulting Engineer and an option was obtained from Clarence O and Mary G Spears for a similar parcel, for $200.00. This parcel is shown outlined in green on the attached sketch.
This settlement is considered very reasonable and is recommended for acceptance. Will you please let us know if this alternative site is suitable for your requirements and if so, whether you concur in the option obtained.
Yours truly,
J R Baldwin,
Deputy Minister
The Deputy Minister
Department of National Defence
Ottawa, Ontario