October 5, 1998

To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:Sale of Surplus Spadina Project Property at 549 Arlington Avenue (Ward 28 - York Eglinton)

Purpose:

To authorize the disposal of the property municipally known as 549 Arlington Avenue.

Funding Sources, Financial Implications and Impact Statement:

Revenue of $166,500.00, 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 $166,500.00 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. CP300J56106;

(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 549 Arlington Avenue, 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 no requirements have been identified.

Comments and/or Discussion and/or Justification:

Pursuant to the February 12 and 13, 1997 authority, the property was listed with Wakefield Realty Corporation on August 25, 1998 at an asking price of $154,900.00 and offered through the Multiple Listing Service of the Toronto Real Estate Board. The following offers were received:

PurchaserDepositPurchase Price/Terms

Mike Ramalho$8,325.00 (certified cheque)$166,500.00/non-conditional

Sherrie Vito and Nicola Vito$8,005.00 (bank draft)$160,100.00/non-conditional

Shahriar Mehjoo and Nahid Shagiei$7,505.00 (bank draft)$150,100.00/non-conditional

Linda Campoli$6,745.00 (bank draft)$134,900.00/non-conditional

The highest offer is recommended for acceptance:

Property Address:549 Arlington Avenue

Legal Description:Part of Lot 63, Plan 1527, designated as Parts 18 and 11 on Plan 64R-15549

Approximate Lot Size:7.59 metres (24.93 feet) fronting onto Arlington Avenue

35.95 metres (117.97 feet) depth

Easement:Subject to an easement in favour of the City of Toronto for subway/sewer and other related municipal purposes identified within Part 11 on Plan 64R-15549

Location:East side of Arlington Avenue, west of Strathearn Road, south of Eglinton Avenue West

Improvements:Detached, 2 bedroom, brick bungalow

Occupancy Status:Vacant

Recommended Sale Price:$166,500.00

Deposit:$8,325.00

Purchaser:Mike Ramalho

Closing Date:November 25, 1998

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

Listing Broker:Wakefield Realty Corporation

Selling Broker:Homelife Regional Realty Ltd.

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

Margaret Rodrigues

Commissioner of Corporate Services

Appendix "A"

549Arlington Avenue - 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 brick bungalows with 2 bedrooms.

Approximate

AddressLot SizeSale PriceDate of Sale

565 Arlington Ave.28 x 94$161,000.00July 29, 1998

569 Arlington Ave.33 x 100$166,800.00July 29, 1998

355 Winnett Ave.30 x 128$182,100.00May 28, 1998