To: Corporate Services Committee

From: Commissioner of Corporate Services

Subject: EXPROPRIATION OF PROPERTY INTERESTS

SHEPPARD SUBWAY

NATIONAL GYM CLOTHING LIMITED

WILLOWDALE PLAZA, 4783 YONGE STREET

NORTH YORK CENTRE - WARD 10

Purpose:

To authorize the acquisition of property interests for the construction and operation of the Sheppard Subway.

Funding Sources, Financial Implications and Impact Statement:

Financing has previously been approved by Council and is available in Capital Account No. TC-392.

Recommendations:

It is recommended that:

(1) authority be granted to enter into an agreement with National Gym Clothing Limited pursuant to Section 30 of the Expropriations Act on terms and conditions detailed herein; and

(2) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

The previous Metropolitan Council, by its adoption of Clause No. 2 of Report No. 21 of the Financial Priorities Committee on September 25th and 26th, 1996 (as amended) approved the completion of the Sheppard Subway Project.

Metropolitan Council authorized the initiation of expropriation procedures for property interests required for the construction and operation of the Sheppard Subway at Yonge Station by its adoption of Clause No. 1 of Report No. 9 of The Corporate Administration Committee at its meeting May 8th, 1996.

Comments and/or Discussion and/or Justification:

As part of the construction of the Sheppard Subway, the City requires numerous property interests from Willowdale Plaza. The construction of the southeast WYE tunnel will necessitate the removal of 100 parking spaces from the plaza parking lot and the construction hording for the WYE construction will be approximately eight feet from the main entrance to the National Sports (National Gym Clothing Limited) store entrance. As a result of negotiations with National Gym, the TTC, and the City of Toronto, an agreement has been reached whereby the main entrance will be relocated south of the existing entrance, signage will be relocated, and additional parking will be provided at the rear of the store on lands leased from Seneca College.

The TTC and National Gym estimate the cost of these works in the amount of $157,500.00. An agreement has been reached whereby National Gym will be advanced $157,500.00 to undertake the remedial works to a maximum amount of $157,500.00 and will repay any excess advance which has been made by the City.

National Gym has agreed not to seek additional costs as part of its compensation from the City in relation to the costs of the remedial works and has agreed to accept the payment as an udnertaking in accordance with Section 11 of the Expropriations Act which allows the City to undertake mitigation measures to reduce injurious affection.

The terms and conditions of the agreement have been reviewed by the TTC and are considered fair and reasonable.

Conclusions:

The terms and conditions of the Section 30 agreement as detailed herein are fair and reasonable.

Contact Name:

Mr. Douglas F. Warning

Acting Director of Real Estate (392-8165)

COMMISSIONER OF CORPORATE SERVICES

RKJ/vp