April 30, 1998
To:Corporate Services Committee
From:Commissioner of Corporate Services
Subject:114 Combe Avenue - Sale of Surplus Property
(North York Spadina - Ward 8)
Purpose:
To consider a request made by a Mr. and Mrs. Messinger, the tenants of a surplus City owned improved residential
property, that they be allowed to purchase the property by direct sale.
Financial Implications:
Revenue of $225,000 would be generated from this sale.
Recommendations:
It is recommended that:
1.Council exercise its discretion regarding the request made by Mr. and Mrs. Messinger, that they be allowed to purchase
the subject property by direct sale;
2.in the event Council approves the direct sale:
i.the sale price of the property to be based on the appraised value of $225,000;
ii.the Commissioner of Corporate Services be authorized to complete a transaction without further submission to Council
if the sale is equal to the appraised value and is on a cash basis with normal closing requirements; and
3.the proceeds of the sale be credited to the 1998 Capital Program Parks and Recreation "Facility Improvement - Clanton
Park Project", subject to Capital Budget approval.
Background:
The subject property is located on the north side of Combe Avenue and is the second parcel west of Wilmington Avenue.
The dimensions are 63.31 feet (frontage) by 115 feet (7,280 square feet). It is briefly legally described as being, Part of Lot
188, Registered Plan 1899. It was acquired on June 6, 1991 for $250,000 as an addition to Irving W. Chapley Park and was
at the time listed for sale with the National Group Limited asking $259,000 having been reduced from $279,000. To
recommend the offer to sell to Council (North York) at $250,000, staff reviewed two comparable sales in the subject area,
which it was determined supported the offer.
Because of changes to the park development plan, the property was not utilized and was subsequently declared surplus by
North York Council per Resolution No. 97-08, on April 2, 1997. By that resolution, Council also approved the
recommendation that the revenue from the sale of the property should be allocated to the Parks and Recreation "Facility
Improvement - Clanton Park Project". This item appears in the City of Toronto, 1998 Capital Program, Parks and
Recreation in the Partially Funded Projects category.
The property has been tenanted since purchase, the latest occupancy being Mr. and Mrs. Messinger since December 1,
1996. Their rent is $1,100 per month which is considered appropriate.
Comments:
Recently, when informed of the Corporate intention to sell the property, and even before, Mr. and Mrs. Messinger made
known their desire to acquire it. While having only been there a short time, they claim to have established themselves in the
neighbourhood, are very comfortable in those surroundings and have treated the property as one would if they were an
owner to the extent, according to Mr. Messinger, of having invested some $10,000 in maintenance and improvements.
The advantage of a direct sale would be a saving of staff time and advertising costs or commission costs if marketed
through a broker. This should be weighed against the possibility of a higher price if the property were offered for sale in the
open market.
An appraisal of the property has been prepared by Johnston Donald Associates Limited, dated September 9, 1997, giving a
value opinion of $215,000. The report was felt to be reasonable as of the effective date. However, given the passage of time
and the current active market, an update of the appraisal (by Johnson Donald Associates Limited) was requested which
gives a value of $225,000 as of April 3, 1998.
Conclusion:
A decision by Council to sell direct would be consistent with practices in the former Municipality of Metropolitan Toronto
and the Province of Ontario, who on occasion, sold surplus residential properties directly to their tenant(s) based on the
appraised value.
Contact Name:Vic Codato416 395-6732Fax:416 395-6703
Vicky Papas416 395-6843Fax:416 395-6703 (cs98052.wpd)
Commissioner, Corporate Services
