April 9, 1998

  To:Corporate Services Committee

 From:Commissioner of Corporate Services

 Subject:Acquisition of CN Lands East of Main (Trent and Luttrell Avenues)

(East Toronto - Ward 26)

Purpose:

 The purpose of this report is to obtain City Council approval to amend a former City of Toronto Council approval respecting the acquisition of two CNR-owned parcels of land shown as Parts 4 and 6 on Plan 64R-14771 for future highway use.

Financial Implications:

Funds for payment of the nominal consideration of $2.00 and legal fees and other associated closing costs are provided in Works and Emergency Services Account FOAPAL 296001-39273-75010-296601-A101.

 Recommendations:

 It is recommended that:

 (1)approval be given to accept conveyance from Canadian National Railway Company (ACN@) of Part 6 on Reference Plan 64R-14771 and shown on the attached sketch, for nominal consideration of $2.00 free of encumbrances other than utility poles, and pay all reasonable legal fees incurred by CN in completing such conveyance;

 (2)the conveyance of Part 4 on Reference Plan 64R-14771 from CN to the City be made one of the conditions of any future severance of CN=s adjacent lands;

 (3)the Commissioner, Works and Emergency Services, furnish the required legal descriptions;

 (4)the lands be placed under the jurisdiction of the Commissioner, Corporate Services until required for public highway purposes; and

 (5)the appropriate civic officials take the necessary actions to implement the above recommendations.

  Background:

 The former City of Toronto Council adopted on June 5 and 6, 1995, Clause 9, City Services Committee Report No. 8 and on May 21, 1996, Clause 26, Executive Committee Report No. 15, thereby authorizing the acquisition of two parcels of land at the southern end of Trent Avenue and Luttrell Avenue identified as Part 1 on Reference Plan 64R-14766 and Parts 4 and 6 on Reference Plan 64R-14771 and shown on the attached sketch. The requirement to convey these lands to the City was imposed as a condition of severance approval by the Committee of Adjustment and were to be acquired by the City free and clear of encumbrances for the nominal consideration of $2.00.

 Comments:

 CN owns a large parcel of land in the area of Trent Avenue and Luttrell Avenue and obtained a consent of the Committee of Adjustment to sever such land. As a condition of giving its consent, the Committee of Adjustment required the conveyance of Parts 4 and 6, Reference Plan 64R-14771 and Part 1, Reference Plan 64R-14766 to the City for nominal consideration free of encumbrances.

 Shortly before the severance expired, the City was advised of the existence of a lease affecting the northern portion of Part 1 between CN and Danforth Shoppers World Limited (AShoppers World@). CN was unable to secure a surrender of this lease and, as a result, title could not be given to the City free of encumbrances and the severance permission expired.

 It is now proposed by Shoppers World to redevelop the shopping centre adjoining Part 1 and to acquire Part 1 from CN for parking purposes as part of the redevelopment. Shoppers World=s proposal requires an amendment to the prior City/CN arrangement which would entail the conveyance from CN to the City of a smaller Luttrell parcel, comprised of Part 6, on 60 days notice from the City. Part 4 would be conveyed to the City as one of the conditions of severance of CN=s adjacent lands, subject to existing utility poles and a right-of-way in favour of CN until the parcel is dedicated as a public highway. The solicitor for CN has confirmed that CN will convey Part 6 on 60 days notice and that Part 4 will be transferred to the City as one of the conditions of severance of CN=s adjacent lands and that an application for severance will be submitted following approval of this report. Works and Emergency Services has advised that there are no immediate plans to extend Luttrell or Trent Avenues. In any case, Luttrell Avenue could not otherwise be extended without acquisition of the lands lying immediately to the north of Part 1 and which are owned by Shoppers World=s landlord. With the proposed redevelopment of the shopping centre, it is unlikely that these lands would come to the City except through expropriation.

 A Phase 1 environmental audit has been undertaken by Shaheen & Peaker Limited, an outside consultant retained by the City. The audit concludes that it is unlikely that the property has been environmentally impacted by its current usage or by the current activities on the adjacent properties. While noting that the historic commercial/industrial usage of the adjacent properties may have environmentally impacted the property, the consultant takes the view that the potential contamination does not pose a risk to the future use of the properties as roadways and parking lots.

 Parts 4 and 6 are occupied by the Variety Club, a charitable organization and used for parking purposes. Their lease expired in May, 1997 and Variety Club=s solicitor has advised that his client has either a monthly tenancy or a tenancy terminable at will. Property Services staff have received a request from Variety Club to continue to lease Part 6 and Part 4 (if acquired by the City) for parking purposes. This request is currently being processed and, accordingly, the conveyance of Part 6 subject to the occupation of the Variety Club is acceptable.

  Conclusion:

 The acquisition of Parts 4 and 6 on Reference Plan 64R-14771as set out in the body of this report is acceptable.

 Contact Name:

 Ting Ng, Telephone - 392-1857, Fax - 392-1880, E-mail - tng@city.toronto.on.ca (cs98048.wpd)

 Margaret Rodrigues

Commissioner, Corporate Services