Surplus Property Declaration
North-East Corner Ashtonbee Road and
Thermos Road, Ward 14 - Scarborough Wexford
The Corporate Services Committee recommends the adoption of the following report (March 3,
1998) from the Commissioner of Corporate Services:
Purpose:
(a) Approval of a potential public/private partnership to market a remnant parcel of municipally owned
land.
(b) Declaration of City property as surplus.
Funding:
Not required.
Recommendations:
It is recommended that:
(1) Council declare the property, legally described as Part of Lot 9 Plan 4087, shown in heavy outline
on the attached sketch, surplus and that the City intends to sell the lands;
(2) public notice of the proposed sale be given by publication of this report in the Council agenda;
(3) staff negotiate an agreement with the abutting owner, with a view to the joint marketing of the
property shown on the attached sketch and report back to Council on the agreement, including the
proposed minimum sale price;
(4) if satisfactory arrangements cannot be made for the joint marketing of the property, that the City
invite offers to purchase its property; and
(5) appropriate City officials be authorized and directed to take the necessary action to give effect
thereto.
Background:
In the 1950's, the then Township of Scarborough subdivided a large parcel of land to create an industrial
subdivision in the Birchmount Road/Eglinton Avenue area. A rail spur line was later installed. A curve
in the spur line created a small, roughly triangularly shaped parcel of land at the corner of Thermos
Road and Ashtonbee Road. The size and shape of this remnant property made it difficult to develop,
and the Township retained it.
In 1994, the spur line was declared surplus by C.P. Rail, in accordance with a Canadian Transport
Board order. As part of an agreement to purchase another part of the rail spur where it abutted Massey
Creek, the City of Scarborough acquired the portion of the rail spur adjacent to the remnant industrial
site, for the nominal sum of $2.00. Although still roughly triangular, the City property now has an area
of .247 ha (.61 acres).
The zoning of the property is MG - General Industrial, with Performance Standards permitting a
maximum gross floor area of 75 percent of the lot area. The Official Plan designates the property for
Industrial Uses.
The former City of Scarborough Real Estate Disposal Procedure By-law requires the City, when
proposing to dispose of a parcel of land:
(a) to publicly declare the property to be surplus;
(b) to provide notice to the public of the proposed sale in a manner determined by Council;
(c) to obtain at least one written appraisal of the fair market value before entering into an agreement of
Purchase and Sale; and
(d) if the recommended method of disposal is by Public Auction or Public Tender, the conditions of sale
and the reserve amount, if applicable, are to be set out in the by-law declaring the property surplus.
Comments:
Although significantly disadvantaged by its shape, the property is of sufficient size to support a small
industrial or quasi-industrial building, and the property could be sold on its own, although the estimated
value would be much less than a similar sized rectangular property.
Staff approached Informco, the abutting owner to the north, to determine if they were interested in
purchasing the property. Although Informco did not wish to proceed with a purchase, subsequent
discussions resulted in a proposal to jointly market a portion of their property, together with the City's
lands. To accomplish this, Informco will require a severance of their property. The combined property
will be rectangular, have an area of approximately .81 hectares, and will have frontage both on
Ashtonbee Road and Thermos Road. The sale price will be divided between the parties based upon the
area of their respective holdings, as will the costs of the sale, including any real estate commission.
In order to proceed with the joint marketing of these public/private lands, Council must first declare the
land to be surplus. Staff can then negotiate a tentative agreement with Informco to market the combined
property and report back to Council seeking approval of the terms of the agreement with Informco, and
the appraised value of the City's surplus lands.
Conclusions:
By working co-operatively with the abutting owner, the City will increase the value of its surplus
property.
Contact Name:
R. Mayr, AACI, Director of Real Estate, Telephone No. (416) 396-4930, Fax No. (416) 396-4241,
mayr@city.scarborough.on.ca, (cs98023.wpd)
(A copy of the sketch referred to in the foregoing report is on file in the office of the City Clerk.)