Sale of Surplus Property - 114 Combe Avenue
(North York Spadina - Ward 8)
The Corporate Services Committee recommends:
(1)that Council approve the request to purchase the subject property; and
(2)the adoption of Recommendations Nos. (2) and (3) embodied in the following report (April 30, 1998) from the
Commissioner of Corporate Services.
Purpose:
To consider a request made by a Mr. and Mrs. Messinger, the tenants of a surplus City-owned improved residential property, that
they be allowed to purchase the property by direct sale.
Financial Implications:
Revenue of $225,000.00 would be generated from this sale.
Recommendations:
It is recommended that:
(1)Council exercise its discretion regarding the request made by Mr. and Mrs. Messinger, that they be allowed to purchase the
subject property by direct sale;
(2)in the event Council approves the direct sale:
(i)the sale price of the property to be based on the appraised value of $225,000.00;
(ii)the Commissioner of Corporate Services be authorized to complete a transaction without further submission to Council if the
sale is equal to the appraised value and is on a cash basis with normal closing requirements; and
(3)the proceeds of the sale be credited to the 1998 Capital Program Parks and Recreation "Facility Improvement - Clanton
Park Project", subject to Capital Budget approval.
Background:
The subject property is located on the north side of Combe Avenue and is the second parcel west of Wilmington Avenue. The
dimensions are 63.31 feet (frontage) by 115 feet (7,280 square feet). It is briefly legally described as being, Part of Lot 188,
Registered Plan 1899. It was acquired on June 6, 1991, for $250,000.00 as an addition to Irving W. Chapley Park and was at the
time listed for sale with the National Group Limited asking $259,000.00 having been reduced from $279,000.00. To recommend
the offer to sell to Council (North York) at $250,000.00, staff reviewed two comparable sales in the subject area, which it was
determined supported the offer.
Because of changes to the park development plan, the property was not utilized and was subsequently declared surplus by North
York Council per Resolution No. 97-08, on April 2, 1997. By that resolution, Council also approved the recommendation that the
revenue from the sale of the property should be allocated to the Parks and Recreation "Facility Improvement - Clanton Park
Project". This item appears in the City of Toronto, 1998 Capital Program, Parks and Recreation in the Partially Funded Projects
category.
The property has been tenanted since purchase, the latest occupancy being Mr. and Mrs. Messinger since December 1, 1996.
Their rent is $1,100 per month which is considered appropriate.
Comments:
Recently, when informed of the Corporate intention to sell the property, and even before, Mr. and Mrs. Messinger made known
their desire to acquire it. While having only been there a short time, they claim to have established themselves in the neighbourhood,
are very comfortable in those surroundings and have treated the property as one would if they were an owner to the extent,
according to Mr. Messinger, of having invested some $10,000.00 in maintenance and improvements.
The advantage of a direct sale would be a saving of staff time and advertising costs or commission costs if marketed through a
broker. This should be weighed against the possibility of a higher price if the property were offered for sale in the open market.
An appraisal of the property has been prepared by Johnston Donald Associates Limited, dated September 9, 1997, giving a value
opinion of $215,000.00. The report was felt to be reasonable as of the effective date. However, given the passage of time and the
current active market, an update of the appraisal (by Johnson Donald Associates Limited) was requested which gives a value of
$225,000.00 as of April 3, 1998.
Conclusion:
A decision by Council to sell direct would be consistent with practices in the former Municipality of Metropolitan Toronto and the
Province of Ontario, who on occasion, sold surplus residential properties directly to their tenant(s) based on the appraised value.
Contact Name:
Vic Codato416 395-6732Fax:416 395-6703
Vicky Papas416 395-6843Fax:416 395-6703 (cs98052.wpd)