March 3, 1998

To: Corporate Services Committee

From: Commissioner of Corporate Services

Subject: Sale of portion of Fennimore Park

File No. 93-044-40 LA29 (North York Humber - Ward 6)

Purpose:

To declare the lands surplus to the needs of the City and that the appropriate notice be given that the City intends to sell the property.

Financial Implications and Impact Statement:

Recommendations:

It is recommended that:

(1) Council declare that the subject lands are surplus to the needs of the City and the appropriate notice be given that the City intends to sell this property;

(3) Proceeds from the sale be credited to account No. 007-435-000-8340; and

(4) The appropriate City Officials be authorized to do all things necessary to finalize this matter.

The owner of 325 Eddystone Avenue (the adjoining industrial property), in July 1993, requested to purchase or lease 18,062 square feet of the adjoining parkland. In order to accommodate extra truck loading and turning, existing parking needed to be relocated, resulting in the request for land.

On October 6, 1993 by Resolution No 93-36 Council recommended a 30 year lease at a rent of $12,400 per annum along with fencing and buffering; all of which was conditional upon approval of a minor variance. On October 20, 1993, by Resolution No. 93-37 Council approved a $30,000 up front payment, an annual rental of $10,416, no rental payments for the first three years and a maximum leased area of .32 acres (13,939 square feet).

On May 12, 1995 the Ontario Municipal Board found in favor of the City, concerning the minor variance to the Official Plan as required to implement the proposed lease. Approval was conditional upon (i) site plan approval, (ii) a 1.0 metre high chain link fence along the perimeter at the expense of the company.

The owner approached staff with a view to purchase a substantially reduced area, from 13,939 square feet to 2,230 square feet. Parks and Recreation staff indicated a preference to selling the reduced area rather than leasing the larger area.

Comments:

Based on recent sale transactions for industrial land in this area, the valuation of this land is $10,000.00. However, given the strategic importance of this parcel to the purchaser he has offered to pay $30,000.00. A portion of the purchase price, approximately $2,800.00, will be use to fence the site.

We are of the opinion that the purchase price is fair and above the market value of the land.

Rudi Pestl, Telephone: 395-6846, Fax: 395-6703 (cs98026.wpd)

Margaret Rodrigues

Commissioner, Corporate Services