Wychwood Carhouse Demolition

The Corporate Services Committee recommends the adoption of Recommendations Nos. (1), (2), (3), (4) and (6) embodied in the following report (May 22, 1998) from the Commissioner of Corporate Services; and reports having concurred with Recommendation No. (5):

Purpose:

To provide recommendations in response to the proposal from the TTC that title of the property at 76 Wychwood Avenue be transferred to the City of Toronto and that future proceeds be allocated to the TTC.

Financial Implications:

The costs for the City include approximately $110,000.00 for the provision of adequate security for the property for a period of two years, and in addition payment of land transfer tax calculated on the basis of market value on the date of the transfer. This report recommends that such costs be deducted from the future sale proceeds.

Recommendations:

It is recommended that:

(1)the transfer of title of 76 Wychwood from the TTC to the City be approved;

(2)the City=s costs as a result of the transfer be deducted from the revenue from the future sale of the property;

(3)the allocation of the revenues from the sale of the property be determined by City Council as part of the multi year capital budget planning process;

(4)the Commissioner of Corporate Services obtain an appraisal of the property on the date of the transfer;

(5)this report be forwarded the Budget Committee for its meeting of May 26, and that the Committee forward its recommendations on this matter to City Council; and

(6)the appropriate city officials be authorized to take the necessary action to give effect to the foregoing.

Background:

The disposition of the TTC site at 76 Wychwood Avenue has been the subject of reports to the Toronto Transit Commission, Toronto Community Council and City Council. The TTC had planned to sell a number of properties to obtain revenue to acquire a property in the former East York for a bus garage. In considering the TTC=s proposal to demolish the buildings at 76 Wychwood prior to the sale of the property, the Toronto Community Council at its meeting of April 2, 1998, recommended that:

(1) the report of the Acting Manager of the Toronto Historical Board, March 18, 1998, entitled AInclusion on the City of Toronto Inventory of Heritage Properties - 76 Wychwood Avenue (St. Clair Carhouse)@ be adopted (The report recommended the property be included in the inventory.);

(2)the Commissioner of Urban Planning and Development Services be requested to report to the Toronto Community Council on dedicating 25% - 30% of the land for heritage and/or parkland purposes, and how the remainder of the site can be developed in an appropriate manner; and

(3)the Toronto Transit Commission be requested not to seek a demolition permit for this site until the planning process has been completed.

The TTC, at its meeting of April 8, adopted a report AWychwood Carhouse Demolition@, which recommended Athat the ommission receive this report for information noting that it is staff= intention to demolish Wychwood Carhouse in two months time if the City of Toronto is not prepared to accept title for the building and property in exchange for a credit to TTC equal to fair market value.@

City Council considered the matter at its meeting on April 16 and 17, and;

(1)requested the Toronto Transit Commission not to seek a demolition permit for Wychwood Carhouse until the planning process has been completed; and

(2)requested the Commissioner of Corporate Services, in consultation with Chief General Manager of the Toronto Transit Commission, to submit a report to the next meeting of the Toronto Community Council, for subsequent report thereon to the Corporate Services Committee, on the implementation of the transfer of title of this site from the Toronto Transit Commission to the City of Toronto.

The Toronto Transit Commission, at its meeting on Wednesday, May 20, 1998 considered a further report AWychwood Carhouse Demolition@. After hearing deputations from Councillors Bossons and Adams, the Commission decided to receive the report and approved the following recommendations to be forwarded to the Corporate Services Committee for its meeting on May 25, with the suggestion that the Committee consider a Quit Claim Deed in the City=s favour to be executed by the Toronto Transit Commission:

(1)that staff pause in their efforts to obtain a Demolition Permit and Demolition Contractor until the next Commission meeting on June 17, 1998; and

(2)that this report (Wychwood Carhouse Demolition) be forwarded to the next City Corporate Services Committee meeting for consideration with a recommendation that the City of Toronto accept title for the subject building and property, effective immediately, on the understanding that the fair market value compensation for the property to the Toronto Transit Commission can be determined at a later date.

Comments:

Acquisition for municipal purposes:

The City may only acquire property for municipal purposes. The Bathurst Ct. Clair Part II Official Plan of the former City of Toronto states that the north west portion of Bathurst St. Clair is deficient in parkland and that Council will, among other things, seek to ensure that if the TTC St. Clair Carhouse property is redeveloped, that a park will be created on a portion of the site. It also states that Council shall consider, in the event of the disposal of lands by various government boards, agencies and commissions, the appropriateness of developing such lands for park and public recreation purposes. The acquisition will allow the City to better meet its planning objectives, including achieving park space and also provides for a more comprehensive planning process than can occur when the City responds to a development application from a private land owner.

Costs to ensure the property is safe:

The buildings on this site have not been used by the TTC since 1978 as an operating carhouse. Until 1995 the facility was used for storage purposes. The TTC is currently paying $400.00 a day for 24 hour security, and obtained an estimate of $460,000.00 for repairs, plus $20,000.00 for boarding and fencing the site. Substantial work to the roof structure is included, as well as improvements to the electrical and mechanical services and the fire protection system.

City Buildings= staff inspected the premises in March 1998. They estimate that the cost to protect public safety is in the range of $25,000.00, which includes fencing and securing all openings, as well as limited repairs to the roof. Buildings and TTC staff have reviewed the differences in proposed approaches to the levels of repairs to the roof and resulting costs differences. In addition, funds of up to $65,000.00 are estimated to be required for improvements to the fire protection system, based on the TTC=s consultant=s report. In addition to the repairs, site inspections will be required, estimated to cost up to approximately $60 a day, for regular inspections at key times by a security company. Buildings staff support this approach to protecting the public for the two year period anticipated for a decision by City Council with respect to the future disposition of the buildings.

Financial benefits to TTC of transferring title:

A conveyance of the property to the City will relieve the TTC of ongoing costs including:

(a)a grant in lieu of realty taxes paid to the City of approximately $186,000.00 per year (to be reduced to $123,000.00 under Current Value Assessment) of which 60 percent is allocated to the Province for School Board purposes;

(b)security costs at the rate of $400.00 per day or $146,000.00 per year; and

(c)demolition costs, estimated as $220,000.00.

If the property is conveyed to the City, the pro-rated savings to the TTC for the balance of 1998 would be $61,500.00, assuming $123,000.00 is required for the grant in lieu of taxes, and $220,000.00 for not demolishing the building. For 1999 the savings would be in the order of $123,000.00, for the grant in lieu of taxes.

Financial implications for the City of transferring the title:

If the property is transferred, the City would be subject to the following costs:

(a)the immediate payment of an estimated $90,000.00 to secure the building and repair the sprinkler system;

(b)security costs at an estimated rate of up to $60 per day or $22,000.00 a year; and

(c)land transfer tax to be determined following an appraisal of the property on the date of the transfer.

Thus the total cost for two years is in the order of $134,000.00, excluding land transfer tax. The City should be reimbursed from the proceeds of the future sale. The City would also lose the portion of the grant in lieu of taxes that it would have received, estimated as $49,200.00 a year, 40 percent of $123,000.00.

Allocation of revenues from the future sale:

It is anticipated that the sale of the property will take place in about two years time, once a rezoning has been completed. City Council, at its meeting of April 16, 1998 requested the Commissioner of Urban Planning and Development Services to report to the Toronto Community Council on dedicating 25 percent - 30 percent of the land for heritage and/or parkland purposes, and how the remainder of the area can be developed in an appropriate manner. It is anticipated that housing will be included. As the land is now zoned for transportation uses, a rezoning will be required and can take up to two years. The results of this process will establish the value of the property at that time. The current value of the property would be less because the zoning permits transportation uses only, and because of the existing buildings.

The question of the proceeds of the sale flowing to the TTC should be decided by Council as part of the overall capital budget planning process. In September, the Budget Committee will be establishing a multi year capital budget plan and the allocation of the revenues should be considered in this context.

If the transfer does not take place:

The TTC has already made an application to the City to demolish the carhouse. If the TTC continues to pursue the demolition permit, City Council can decide to give notice of intention to designate the building under the Ontario Heritage Act. This notice, once published and served pursuant to the Act, will void any demolition permit which has been issued and render the building subject to the protections given to designated properties under the Act. The City of Toronto Act also applies to the property, requiring that City Council decide on an application for demolition and give notice of its decision within 90 days of the receipt of the application, or be deemed to consent to the application. Where Council refuses a demolition application, a demolition permit can not be issued until 180 days from the date of Council=s refusal. In addition, the owner must have obtained a building permit for a new building. Thus, if Council decides to designate the property, and as the TTC is unlikely to proceed to obtain a building permit, it is likely that the property would be sold with the carhouse remaining, and the future owner could proceed with the demolition permit process, as well as the rezoning process.

Conclusion:

The overall benefits of the proposal to transfer the Wychwood Carhouse property from the TTC to the City are to eliminate the requirement of the TTC to pay a grant in lieu of taxes for the property, to allow the City to achieve greater public benefits and control of the planning of the block than would be possible through a normal rezoning process with a developer, and to enhance potential revenue as a result of residential zoning. The question of the allocation of the future revenue should be determined as part of the multi year capital budget planning process. If the transfer does not proceed, the TTC will have to decide whether to proceed with the demolition permit application prior to the sale of the property, and if it does, City Council will have to decide whether to designate the property.

Contact Name:

Cathie Macdonald: Interim Lead Facilities and Real Estate,

Telephone 392-0449, Fax 392-0029, E-mail - cmacdona@city.toronto.on.ca, (cs98076.wpd)

The Corporate Services Committee reports, for the information of Council, having also had before it a communication (May 21, 1998) from the General Secretary, Toronto Transit Commission, advising that the Toronto Transit Commission on May 20, 1998, approved and forwarded the following to the Corporate Services Committee for consideration at its meeting on May 25, 1998:

"(1)that staff pause in their efforts to obtain a Demolition Permit and Demolition Contractor until the next Commission meeting on June 17, 1998; and

 (2)that this report be forwarded to the Corporate Services Committee for consideration at its meeting on Monday , at which time, the TTC suggest the Committee consider the possible acceptance of a Quit Claim Deed in the City's favour to be executed by the Toronto Transit Commission."

(A copy of the location map attached to the aforementioned report ((May 22, 1998) from the Commissioner of Corporate Services is on file in the office of the City Clerk.)