May 8, 1998

 To:Corporate Services Committee

 From:Commissioner of Corporate Services

 Subject:Proposed Acquisition of Land for Park Purposes from the Sisters of St. Joseph

A Block of land (2.84 acres) adjacent to Clairlea Playfield

south of Fairfax Crescent, west of Warden Avenue

(Ward 13 - Scarborough Bluffs)

 Purpose:

 Negotiations with the Owners of the property have culminated in a tentative agreement of purchase and sale. This report summarizes staff=s negotiation efforts and recommendations.

 Funding:

 The land acquisition to be charged to Capital Account #67034-00000-00000-481 and funded from the Parks (5%) Reserve Fund #70490.

 Recommendations:

 It is recommended that:

 (1)the City purchase the 2.84 acre parcel of land, Block 56 on Plan 66M-2320 for park purposes, at the negotiated price of $1,550,000.00; and

 (2)the appropriate City Officials be authorized to execute the relevant documents.

 Background:

 The Sisters of St. Joseph owned about 48 acres of lands north and south of St. Clair Avenue East on the west side of Warden Avenue. They also own the adjacent Providence Centre Hospital land (see figure 1 attached).

 The lands were proposed to be developed in three (3) phases. One condition of approving the draft plan was the conveyance of parkland to the City.

 The south parcel, phase I, consisting of 24.6 acres, was draft approved for development of 203 low density residential units (95 singles, 84 semi=s and 24 townhouses). The owner conveyed Block 141, Plan 66M-2312 to the City for parkland. The area exceeded the parkland requirement for Phase 1. The excess parkland credit together with a strip of land, Block 58, Plan 66M-2320, has been acknowledged as being sufficient to satisfy the parkland dedication for the Phases II & III, except for Block 57. The owners agreed that prior to issuance of any building permits for Block 57, a further parkland contribution is required in the form of additional land or cash-in-lieu.

 As part of the draft plan approval, the owners also agreed to set aside Block 56, Plan 66M-2320 for park use with the understanding that the City would acquire it through a combination of parkland dedication required from Block 57 and a purchase and sale agreement. In the event that Council does not approve the acquisition of Block 56, the owner is free to seek further approvals for alternative development pursuant to the Planning Act.

 Subject to Council=s approval, a tentative agreement has been reached with the Sisters of St. Joseph to acquire the 2.84 acres of land at a selling price of $1,550,000.00. The sale price includes the park dedication required for Block 57, which is proposed for 32 townhouses. Should there be an increase in the development density of Block 57, an additional cash-in-lieu park dedication will be assessed accordingly.

 Comments:

The Sisters of St. Joseph sold the south parcel comprising 24.6 acres to a developer at a selling price of $9,827,000.00 or approximately $400,000.00 per acre subject to Official Plan Amendment and Rezoning approval to permit a total of 203 low density residential units. The transaction closed in July 1997. The Sisters also entered into two further agreements of purchase and sale with the same developer for the two blocks of lands within the north parcel. One agreement was made on September 25, 1997 for $2,981,000 or $495,000.00 per acre for 6.03 acres (55 single family lots). The other was made on October 3, 1997 at a selling price of $1,332,936.00 or $499,500.00 per acre for 2.669 acres (32 townhouses). Both agreements were subject to Official Plan Amendment and Rezoning approval by April 15, 1998.

 The proposed acquisition of Block 56, is adjacent to the 6.03 acres of land proposed for 55 single family lots. The recommended purchase price of $1,550,000.00 reflects a per acre value of $536,332.17 which has taken into account the subject=s smaller size and the lower servicing cost. If the Block is not used for park, it has a development potential of about 28 single family lots.

 Conclusions:

 The acquisition of Block 56 for parkland will fulfill the community expectation for additional green space and better utilization of Clairlea Park. It will also allow for the development of a full size soccer field, therefore meeting local and larger community demands.

 Contact Name:

 R. Mayr, AACI, Director of Real Estate, Telephone (416) 396-4930, Fax (416) 396-4241

mayr@city.scarborough.on.ca (cs98063.wpd)

 Margaret Rodrigues

Commissioner, Corporate Services