September 9, 1998

To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:Sale of Surplus Spadina Project Property at 34 Gloucester Grove

(Ward 28 - York Eglinton)

Purpose:

To authorize the disposal of the property municipally known as 34 Gloucester Grove.

Funding Sources, Financial Implications and Impact Statement:

Revenue of $195,000.00 less closing costs and the usual adjustments, subject to the revenue sharing agreement with the Province pursuant to the former Metropolitan Corporate Administration Committee Report No. 25, Clause No. 1, approved on December 4, 1996.

Recommendations:

It is recommended, subject to Provincial concurrence that:

(1)the Commissioner of Corporate Services be authorized to accept the highest offer in the amount of $195,000.00 as detailed herein;

(2)Council, pursuant to Clause No. 14, of Report No. 27 of the former Metropolitan Management Committee adopted on September 28, 1994, waive the minimum required deposit of 10 per cent. of the purchase price;

(3)authority be granted to direct a portion of the sale proceeds on closing to fund the outstanding balance of Costing Unit No. CP300J56176;

(4)the City Solicitor be authorized and directed to take the appropriate action, in conjunction with Province of Ontario Officials and/or agents, to complete the transaction on behalf of the Corporation and he be further authorized to amend the closing date to such earlier or later date as he considers reasonable; and

(5)the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

The Province of Ontario is the owner of 34 Gloucester Grove, subject to a ninety-nine year lease in favour of the City of Toronto. By its adoption of Clause No. 1 of Report No. 3 of The Corporate Administration Committee on February 12 and 13, 1997, Metropolitan Council declared the property surplus pursuant to By-Law No. 56-95 and authorized its disposal. The procedures with respect to By-Law No. 56-95 have been complied with, a utility canvass has been completed and an easement requirement in favour of the City of Toronto for subway/sewer purposes has been identified and will be reserved.

Comments and/or Discussion and/or Justification:

Pursuant to the February 12 and 13, 1997 authority, the property was listed with Prudential Sadie Moranis Realty on August 10, 1998 at an asking price of $179,900.00. As a result, the following offers were received:

PurchaserDepositPurchase Price/Terms

Darko Joksimovic and$9,762.50 $195,000.00 (non-conditional)

Susan Mainella(money order)

Bill Iuele$12,000.00$193,504.00 (non-conditional)

(bank draft)

The highest offer is being recommended for acceptance:

Property Address:34 Gloucester Grove, City of Toronto

Legal Description:Plan 2339, Part of Lots, 21, 22, 23 and 24, City of Toronto; designated as Part 20 on Expropriation Plan 7777

Approximate Lot Size:6.86 metres (22.5 feet) fronting onto Everden Road

30.48 metres (100 feet) depth

Location:Northwest corner of Gloucester Grove and Everden Road, south of Eglinton Avenue West

Improvements:Detached, brick bungalow

Occupancy Status:Vacant

Easement:Title to the property will be conveyed subject to an easement in favour of the City of Toronto substantially as shown on Plan 64R-7314. Located within the boundaries of the property is a major in-tunnel trunk storm sewer and the easement rights that were granted in favour of the City of Toronto provide for the repair, replacement or any other works required in order to provide for the continual maintenance of this substantial public utility.

Recommended Sale Price:$195,000.00

Deposit:$9,762.50

Purchaser:Darko Joksimovic and Susan Mainella

Closing Date:October 30, 1998

Terms:Cash on closing, subject to the usual adjustments.

Listing Broker:Prudential Sadie Moranis Realty

Selling Broker:Prudential Sadie Moranis Realty

Commission:Four (4) per cent, plus G.S.T., payable on closing of the transaction.

By the adoption of Clause No. 5, Report No. 9 of the Corporate Services Committee, Council at the meeting held on July 8, 9, and 10, 1998 directed that comparable sales data be provided in future reports of property sales. Appendix "A" identifies three comparable properties located in the vicinity that have recently sold. While comparable sales information can be included as part of the staff report, this property was listed for sale on the TREB multiple listing service and the forces of the market place have determined the true market value.

Conclusion:

Completion of this transaction detailed above is considered fair and reasonable and reflective of market value.

Contact Name:

Mr. R. Mayr, AACI, Director, Real Estate Services, (416)396-4930, Fax No.: (416)396-4241, E-Mail Address: mayr@city.scarborough.on.ca

Commissioner of Corporate Services

Mde/vp

Appendix "A"

34 Gloucester Grove - Comparable Sales

The following three addresses represent recent comparable sales of properties that are quite similar to the residence which forms the subject matter of this report. These three properties consist of 5 room houses with 2 bedrooms.

AddressSale PriceDate of Sale

355 Winnett Avenue$182,100.00April 13, 1998

152 Gloucester Grove$178,000.00June 2, 1998

487 Winnett Avenue$188,000.00June 11, 1998