May 28, 1998

 To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:Borough Drive (closed) between Progress Avenue and Town Centre Court Declaration as Surplus (Ward 15 - Scarborough City Centre)

Purpose:

To declare the closed road allowance (Borough Drive) between Progress Avenue and Town Centre Court as surplus property. To establish a price for the property and to secure authority to offer the property for sale to the abutting owners.

Funding Sources, Financial Implications and Impact Statement:

Proceeds from the sale of this property in the amount of $460,000.00 will be credited to Account Number 71290 Land Development Reserve Account.

Recommendations:

It is recommended that:

(1)the closed Borough Drive road allowance, between Progress Avenue and Town Centre Court, be declared surplus;

(2)the property be offered for sale to the abutting owners in accordance with Section 315 of the Municipal Act. R.S.O. 1990, at a unit price of $287,500.00 per acre, and the owners be given twenty-one days from receipt of the City=s offer to accept same;

(3)should either of the abutting owners decline the offer to purchase the portion of the road allowance abutting their property or not respond to the offer in the specified time frame the lands be offered to any other interested parties at the same unit rate; and

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

Council Reference/Background/History:

In early 1997, the owners of the Scarborough Town Centre shopping centre, OMERS Realty, approached the City of Scarborough to discuss aspirations to expand the mall and develop some of the surrounding vacant lands. An application to amend the Official Plan and Zoning By-Law to permit a full range of City Centre Commercial and Office Uses ensued.

At the meeting held on September 2, 1997, Scarborough Council adopted a Planning and Building Committee report recommending inter alia that staff initiate road closing procedures for the north-east portion of Borough Drive between Progress Avenue and Town Centre Court. The intent was to accommodate the future mall expansion.

 The road closing was advertised in accordance with the provincial statutes and the requisite by-law presented to Council for adoption at the meeting of June 3, 1998. The advertisement also indicated it was intended that the road allowance would be disposed of after closing.

Comments and/or Discussion and/or Justification:

A canvass of utilities, City departments and ABC=s advising of the proposed road closing, identified a need to retain easement rights over the entire length and width of the road allowance. In addition, appropriate rights to protect the aerial RT structures and Transit Road which goes under the closed Borough Drive will be required.

The road closing by-law has been approved and it is now appropriate to declare the closed road as surplus property. Statutes require that Council intending to dispose of a closed road allowance, offer half to all abutting owners, at a price established by Council. Should any of the abutting owners decline to purchase at that price, the property may be sold to any other interested parties at the same or higher price.

The road allowance has been closed. Public Notice of intent to dispose of the property has been given through advertisements in the Scarborough Mirror. The next step is to offer the lands for sale to the abutting owners at a price set by Council in accordance with the provisions of the Municipal Act.

Staff appraised the property, subject to retaining easement rights for existing services and facilities at $440,000.00-$528,000.00 reflecting a unit value of $275,000.00-$330,000.00 per acre.

In preliminary discussions concerning the proposed road closing with the two abutting property owners, the Y M C A indicated no interest in acquiring any portion of the closed road allowance. OMERS Realty expressed interest in acquiring the entire area as it would permit greater flexibility in reconfiguring their parking area.

Further negotiations with OMERS Realty have culminated in an agreement in principle whereby OMERS Realty is prepared to purchase the entire area of the closed road at a price of $460,000.00, or if the Y M C A exercises its rights to purchase, to purchase the remaining lands at a proportionate price.

Conclusions:

Offering the lands to each of the abutting owners at the unit rate established by Council will fulfill the requirements of the Municipal Act. The property value agreed to by OMERS Realty is within the market value range estimated and is an appropriate value basis for offering the property to the abutting owners.

Contact Name:

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

mayr@city.scarborough.on.ca (cs98088.wpd)

(Copies of Maps attached to the foregoing report, are on file in the office of the City Clerk.)