Expropriation of Property Interests,

Sheppard Subway Project - Yonge Station

Marisa Construction Limited, 4711 Yonge Street

(Ward - North York Centre)

 The Corporate Services Committee recommends the adoption of the following report (July 14, 1998) from the Commissioner of Corporate Services:

 Purpose:

 To seek approval of the expropriation under the Expropriations Act of property interests required for the construction and operation of the Sheppard Subway in the vicinity of Yonge Station.

 Funding Sources, Financial Implications and Impact Statement:

 Financing has previously been approved by Council and is available in Capital Account Number TC-392 Sheppard Subway Project.

 Recommendations:

 It is recommended that:

(1)City Council, as approving authority, approve the expropriation of those permanent and temporary property interests detailed herein and payment of $200 in costs to the owner, Marisa Construction Limited, as recommended by the Inquiry Officer for the reasons stated herein;

 (2)authority be granted to take all steps necessary to comply with the Expropriations Act including, but not limited to, the preparation and registration of a plan of expropriation and service of Notices of Expropriation, Notices of Election as to the Date for Compensation, Notices of Possession and offers of compensation;

 (3)authority be granted to the Commissioner of Corporate Services to sign the Notices of Expropriation, Notices of Possession and offers of compensation on behalf of the City;

 (4)in the event that construction methods are proposed by the successful contractor for this project which will make the expropriation of the property interest shown as Part 3 on the draft Plan of Survey, dated March 12, 1998, and identified as No. 94-21-413-36 only necessary for a shortened time period or totally unnecessary the Commissioner of Corporate Services be authorized to amend or abandon that Part on the expropriation plan to conform to the actual requirement;

 (5)leave be granted for the introduction of the necessary Bill in Council to give effect thereto;

and

 (6)the appropriate City officials be authorized and directed to take the necessary action to give effect hereto.

 Council Reference/Background/History:

 By the approval of Clause No. 2 of Report No. 9 of The Management Committee (as amended) on March 8 and 9, 1994, and subject to a further report regarding funding, Metropolitan Council approved construction of the Sheppard Subway to Don Mills Road. By the approval of Clause No. 2 of Report No. 14 of The Management Committee (as amended) on April 20, 1994 Metropolitan Council authorized the debenture funding to commence the project. Finally, Metropolitan Council, by its adoption of Clause No. 2 of Report No. 21 of The Financial Priorities Committee on September 25 and 26, 1996, as amended, approved the completion of the Sheppard Subway Project.

 Metropolitan Council, at its meeting on May 8, 1996, by the adoption of Clause No. 1 of Report No. 9 of The Corporate Administration Committee, authorized the service of Notices of Application for Approval to Expropriate all interests in land required for the construction of the Sheppard Subway in the vicinity of the Yonge Station including the property at 4711 Yonge Street, owned by Marisa Construction Limited ("Marisa").

 Discussions were held with Marisa, their property management company, Menkes Property Management Inc., and the main tenant of the building, Procter & Gamble Inc., in an attempt to negotiate a voluntary acquisition of the required interests. These discussions resulted in permission being given in September 1997 for TTC contractors to complete an advance construction contract on the property to provide a temporary secondary vehicular access at the rear of the property for the duration of the construction in order to minimize and mitigate traffic impacts on the building tenants while the Yonge Street frontage of the property is affected by the construction. However, the parties were not able to conclude a purchase agreement in a timely fashion, making it necessary to proceed with the expropriation in order to ensure that TTC could have possession of the property for the commencement of construction.

 In response to the service of the Notice of Application to Expropriate Land, Marisa requested an Inquiry as allowed by the Expropriations Act. That Inquiry was held on July 8, 1998 before Mr. David Vine to determine whether the proposed expropriation by the City of Toronto was fair, sound and reasonably necessary. His report has now been received and is attached as Appendix "A" to this report. He has concluded that the proposed expropriation is in fact, fair, sound and reasonably necessary, as required by the Expropriations Act and has recommended that Council approve the expropriation of the property interests shown as Parts 1, 2 and 3 on a draft Plan of Survey prepared by J.D. Barnes Limited, dated March 12, 1998 and identified as No. 94-21-413-36 ( the "Draft Plan"). He has further recommended that consideration be given by TTC to finding a satisfactory engineering solution which would not require the demolition of the pedestrian tunnel so as to avoid the need to expropriate same. As allowed in the Expropriations Act, he has recommended that the owner be paid $200 to cover its costs of the hearing.

 Comments and/or Discussion and/or Justification:

 As part of the construction of the Sheppard Subway - Yonge Station and related facilities, three property interests are required from Marisa Construction Limited, the owners of a multi-storey commercial building at 4711 Yonge Street, located just south of the intersection of Yonge Street and Sheppard Avenue. As a result of the alignment of this intersection, coupled with the location of the existing Yonge subway tunnel and Sheppard station, there is very little flexibility in locating the new subway tunnels and station for the Sheppard line and construction must proceed by the "cut and cover" method.

 In order to connect the existing Yonge Subway to the new Sheppard Subway, a new tunnel structure will join the existing Yonge Subway line immediately in front of 4711 Yonge Street. Because the only practical and cost effective method to construct these facilities at this location is the "cut and cover" method, this will require the construction of a caisson wall across a portion of the 4711 Yonge Street frontage to minimize the possibility of damage to the building. Although the majority of the work will be done within the existing road allowance, it is necessary to obtain a strip of property for the duration of the construction (a period of 39 months) along the frontage of 4711 Yonge Street as work space and to allow for a temporary sidewalk around the work area (shown as Part 1 on the Draft Plan).

The construction of the new structure itself will require a small, subsurface, permanent taking from the property (Part 2 on the Draft Plan) and may also require temporary closure, demolition, and reconstruction of the underground pedestrian tunnel from 4711 Yonge Street to the south concourse of the existing Sheppard Station on the Yonge Subway line (Part 3 on the Draft Plan). It has been left open to the contractor by TTC to specify how the new structure will be constructed at this location and it is possible that it can be done without affecting the pedestrian tunnel . However, in order to provide maximum flexibility to the contractor and minimize potential construction costs, it is necessary to provide for the maximum time frame in the event the pedestrian tunnel is demolished and reconstructed ( a total of 33 months).

 The contract for the Yonge Station is expected to be awarded by the Commission on July 15. This makes it necessary to have the property interests finalized as quickly as possible. Therefore, it is necessary to proceed with the expropriation of Parts 1, 2 and 3 as detailed above. As recommended by the Inquiry Officer, in assessing the contract submissions, TTC will be considering the feasibility of constructing the new structure without affecting the existing pedestrian tunnel. In the event, the successful contractor can do so, Part 3 on the expropriation plan can be amended or abandoned to reflect the actual construction requirements.

 Conclusions:

 In my opinion, Council, having considered the attached report of the Inquiry Officer, should approve the expropriation of the temporary interests described as Parts 1 and 3 on the Draft Plan for terms of 39 and 33 months respectively and Part 2 on the Draft Plan permanently, as fair, sound and reasonably necessary for the reasons identified in the Inquiry Officer's report and herein, and authorize all necessary steps to proceed in accordance with the Expropriations Act, including payment of the $200 to Marisa Construction Limited as recommended by the Inquiry Officer. In the event TTC determines that it is possible to construct the new structure without affecting the existing pedestrian tunnel, the Commissioner of Corporate Services should be authorized to amend or abandon Part 3, as may be required to correspond to the actual construction requirements.

 Contact Name:

Robert Johnston(905) 501-9099

Johnston, Donald

 Patricia Simpson392-8057

Senior Solicitor

 (A copy of the map and Appendix 'A' attached to the foregoing report was forwarded to all Members of Council with the July 20, 1998, agenda of the Corporate Services Committee, and a copy thereof is also on file in the office of the City Clerk.)