Acquisition of Former Landfill Site Owned by
Ministry of Transportation - Ward 16
Scarborough Highland Creek
The Corporate Services Committee recommends the adoption of the following report
(February 23, 1998) from the Commissioner of Corporate Services:
The Corporate Services Committee reports, for the information of Council, having requested the
Commissioner of Corporate Services to submit a report to Council for its meeting scheduled to be held
on April 15, 1998, on whether it is likely that a school or park will ever be built at this location.
The Corporate Services Committee submits he following report (February 23, 1998) from the
Commissioner of Corporate Services:
Purpose:
To approve the 1998 Operating Budget of the multi-tenant industrial complex at 705 Progress Avenue
owned jointly by the City and the Board of Education.
Funding:
Not applicable.
The net income derived from the operation of this project is deposited into Account No. 58130
Non-Departmental (705 Progress Avenue Project).
Recommendation:
It is recommended that Council approve the Operating Budget for 705 Progress Avenue subject to
approval by the Toronto School Board, Scarborough District.
Background:
In response to changing development trends in the City Centre area of Scarborough in the early 1990's
the then City and Board of Education purchased the property at 705 Progress Avenue for a future park
and school, each acquiring a 50 percent interest.
705 Progress consists of 151,000 square feet of leasable industrial space on a site of approximately 4.86
ha. (12 acres). The six buildings are generally divided into units of 1000 sq.ft. or multiples thereof.
Approximately eleven thousand square feet of office space is concentrated at the front of the most
easterly building.
The day-to-day operation and management of the property was contracted to Sun Life of Canada under
the direction of the City's Director of Real Estate. The management contract with Sun Life expires on
December 31, 1998. A condition of the management contract requires Sun Life to prepare an annual
operating budget which is presented for approval.
Comments:
At the time of writing, about 36,000 sq.ft. are vacant. Twelve leases come due for renewal during 1998.
Lease rates range from $3.50 to $3.75 per annum per square foot for the industrial space and $4.00 to
$5.00 for the office, on a triple net basis Operating costs for 1998 are estimated at $4.89 per square foot
for the industrial space and $7.69 for the office space.
Conclusions:
Approval of this budget will permit the property manager to continue with the operation and ongoing
maintenance of this project.
The projected net revenue for 1998 is $217,049.00 half of which will accrue to the Board of Education.
Contact Name:
R. Mayr, AACI, Telephone (416) 396-4930, Fax (416) 396-424, mayr@city.scarborough.on.ca
(cs98028.wpd)
(A copy of the Budget Worksheet attached to the foregoing report is on file in the office of the City
Clerk.)