June 22, 1998
To:Budget Committee
From:Chief Administrative Officer and Commissioner of Corporate Services
Subject:Proceeds from the sale of properties
Purpose:
To respond to requests from the Budget Committee for information about the proceeds from sale of City owned
property.
Source of Funds:
Not applicable.
Recommendation:
It is recommended that this report be referred to the Corporate Services Committee for information.
Council Reference/Background/History:
At its meeting of May 26, 1998, the Budget Committee had before it a report from the Commissioner of Corporate
Services, "Expediting the Sale of Property and Reduction of Leased Space", dated May 11, 1998. Among other things
the Committee requested:
- the Commissioner of Corporate Services to report to the next Budget Committee on:
(i)the saleability of the subject properties and the process to be implemented with regard to the disposition of
City-owned land; and
(ii)those properties where the proceeds from the sale of the properties are required to go back to a specific reserve or to
be allocated for a specific purpose as a result of previous Council policies;
- the Chief Administrative Officer to report to the next meeting of the Budget Committee:
(i)on those properties which the Budget Committee can count on being sold this year and the expected closing dates;
and
(ii)as to whether there are any reserves or liens on these properties.
This report provides information on the above requests.
Comments:
(1)Saleability of the surplus properties and the process for considering disposition
The City's surplus properties contain a wide range of property types in varying conditions. The list, which has been
updated for this report, in Appendix A includes:
53 houses in the Spadina Corridor;
19 small remnant parcels in the Spadina Corridor of interest only to abutting property owners from whom the parcels
were severed;
19 houses in the Scarborough Corridor;
49 parcels of vacant land; and
2 industrial, 1 industrial office space, 1 playground, 3 commercial, and 2 office properties.
The saleability of a property depends on the market demand for the type of property, its location, and its potential, and
will be reduced by conditions such as contamination, existing leases or oversupply of the property type. Real estate staff
of the various former municipalities develop appropriate strategies for the sale of each property, taking into
consideration recent sales in the area for the property type.
Properties that have already been declared surplus are being reviewed by Councillors and staff and some properties,
such as the former Mimico Incinerator site, may be reconsidered for other uses.
The processes for considering whether a property should be declared surplus by City Council are set out in the report to
the Corporate Services Committee from the Commissioner of Corporate Services dated May 11, 1998 "Acquisition and
Disposal of Real Property" . The process includes review by the new senior staff Property Management Committee. The
May 11, 1998 reports "Surplus Property within the "Spadina Corridor" and "Scarborough Transportation Corridor"and
"Sale of "Property Houses" (houses in the former City of Toronto originally acquired for parks purposes but operated by
Cityhome) establish special processes for the sale of these groups of residential properties, including those that are
currently tenanted.
(2)Properties where the proceeds from the sale are required to go back to a specific reserve or allocated for a specific
purpose as a result of previous Council decisions and policies
The list in Appendix A includes lists of properties sold this year, sales in progress and surplus properties that may be
sold this year, along with any specific allocation for a specific purpose or reserve fund of a former municipality. Sales
completed to date this year and sales in progress are primarily a result of sales approved by former municipalities and
allocations are to the reserve funds of the former municipalities.
The allocations for the properties sold this year and for sales in progress were for the following types of special reserves:
(a) parks purposes;
(b) social housing;
(c) environmental remediation for former Harbour Commission properties; and
(d) the general land reserve accounts of the former municipalities.
It should be noted that City Council, at its meeting of April 29 and 30, 1998, adopted Clause 12 of Report 6 of the
Strategic Policies and Priorities Committee, which contained the report of the Chief Financial Officer and Treasurer. The
report established new reserve funds into which the funds of the previous municipalities have been collapsed. These
include the Discretionary Land Acquisition Reserve Fund, Other Discretionary Reserve Funds (including social housing
and environmental remediation) and a Non Discretionary Parkland Acquisition Reserve Fund.
For the purpose of this report, the allocations to reserve accounts are grouped in the chart below. The charts reflect the
situation as of June 15, 1998, so that City Council approvals for the sale of a property at the June 3 and 4 meeting are
included in the list of sales in process. With respect to the Spadina Corridor houses, the charts do not show the share of
revenues allocated to the Province, which is one third of the total revenue.
Allocation to Reserves: Properties Sold in 1998 to Date and Properties with Sales in Process
|
Completed in 1998
To Date
(Appendix A) |
Sales in Progress
(Appendix B) |
Total |
Allocated to
reserves:
-Parks Purposes
-Social Housing
-Environmental
Remediation (THC)
-General Land
Reserves
Sub-Total |
$5,115,634
$84,269
$120,474
$1,447,725
$6,768,102 |
$3,154,343
$735,000
$2,226,170
$2,455,309
$8,550,822 |
$8,269,977
$819,269
$2,346,644
$3,903,934
$15,318,924 |
Unallocated
Total |
$2,248,000
$9,016,102 |
$5,870,265
$14,441,087 |
$8,118,265
$23,457,189 |
Therefore, the total revenues from completed sales and sales in progress that are forecast to be received in 1998 by the
City are $23,457,189. The net unallocated proceeds available for other purposes at this time are $8,118,265.
In addition, there will be revenue from the sale of additional properties already declared surplus. The former City
Councils and City Council have approved the future allocations of revenues for some properties yet to be sold. As
appraisals have not been done on these properties, no revenue amounts can be listed at this time.
Approved Allocation of Revenue from Future Sales
PropertyWardAllocation
Everett Cr1Parks Dedication Fund
116 Combe8Parkland Development
180 Duncan Mill11Land Acquisition
Centennial Rd16Land Development
6520 Lawrence16Land Development
80 Turnberry21Expropriation of 11R Hounslow Heath
30 St. Lawrence 25Social Housing
877 Woodbine26Social Housing - landbanking
(3)Properties that the Budget Committee can count on being sold this year
Appendix A sets out the list of properties already sold this year or sold with closing dates established for this year.
Closing dates will be established for additional properties on the list, and there will be additional sales and closings if
additional properties are declared surplus, including:
- Revenue from the sale of the property houses, as set out in the report, "Sale of Property Houses", which recommends
that a number of houses be declared surplus and sold; and
- Revenue from the sale of additional properties that will be declared surplus this year, provided there is sufficient time
for the sale and closing. It is anticipated that a report will be submitted to the Corporate Services Committee for its
July meeting to recommend a list of properties to be declared surplus by City Council at its meeting in July.
It should be noted that the October 1 meeting is the latest date for Council approval of most types of sales so that the
closing can occur in 1998. As unforseen issues can arise, the completion of a sale cannot be guaranteed to occur by a
specific date.
Conclusions:
Detailed information about sales completed in 1998, sales in process, and surplus property that will potentially be sold
is included in the Appendix of this report, and information is provided on these lists about allocation of funds where this
has been previously approved. The planned hiring of the Project Director, Real Estate Disposal, will augment existing
staff resources to expedite disposal of property.
Contact Name:
Cathie Macdonald, Interim Lead, Facilities & Real Estate, phone 392-0449, fax 392-0029 (bc98100.wpd)
____________________________________________________________
Chief Administrative OfficerCommissioner, Corporate Services
APPENDICES
PROPERTY LISTS
Appendix A - Report of Properties Sold in 1998 as of June 15
Appendix B - Report of 1998 Sales in Progress
Appendix C - Report of Properties Declared Surplus by Former Municipalities and
the new City of Toronto: Work in Progress
Please note Spadina Corridor, Spadina Corridor Rear Lot Remnants and Scarborough Corridor Properties:
2/3 of revenue generated to the City, 1/3 of revenue generated to the Province - until $30 million is reached. After $30
million, the split is 50/50. Agreement was reached with the Province to charge against the ORC portion the costs of the
sale (ie. Appraisals, surveys, etc.)
Attached is an abbreviations list for Property Types and Property Status to be used with the Appendices.