197, 197R and 201 Yonge Street and 170 Victoria Street

Declaration as Surplus - (Ward 24 - Downtown)

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

 Purpose:

 To secure City Council authority to declare the City's holdings at 197, 197R and 201 Yonge Street and 170 Victoria Street surplus to municipal requirements and to proceed to offer for sale on the open market.

 Financial Implications:

 Revenue will be generated from the eventual sale of these lands.

 Recommendations:

 It is recommended that:

(1)the City-owned properties known municipally as 197, 197R and 201 Yonge Street and 170 Victoria Street, described as being part of Park Lot 8, Concession 1, From the Bay and parts of Lots 6 and 7, Plan 22-A and designated as PARTS 1, 2, 3, 4, 6, 7 and 8 on Reference Plan 66R-15815, be declared surplus;

 (2)notice to the public of the lands declared surplus be given;

 (3)authorization be given to market the site through a real estate broker, at a listing price to be determined with the broker, and to report back to the City Council on the details of the sale;

 (4)the sale of the site be subject to the purchaser entering into:

 (a)an Easement Agreement for the preservation of the accessibility ramp to 205 Yonge Street; and

 (b)a Heritage Easement Agreement for the preservation of the historical significance of the building at 197 Yonge Street; and

 (5)the appropriate Civic Officials be authorized to take the necessary action to give effect to the foregoing.

 Background:

 Theatre Block:

 In October of 1982, City Council designated an area bounded by Yonge, Queen, Victoria and Shuter Streets as a redevelopment area under the Planning Act. This area is known as the "Theatre Block" and contains three major and historical theatre and concert hall facilities (the Elgin and Winter Garden theatres located on Yonge Street and Massey Hall on Shuter Street) and three historical bank structures (173, 197 and 205 Yonge Street). The Revitalization Concept for the Theatre Block, approved in August of 1987, focussed on creating enlivened central public space that would serve as a focal point for the Theatre Block and would also integrate the historical buildings. In its commitment towards this revitalization concept, City Council in October of 1988 adopted a Part II Official Plan for the Theatre Block. The City proceeded to acquire key properties (Nos. 197, 197R, 201 and 205 Yonge Street and 170 Victoria Street) as they became available.

 Partial funding for the revitalization concept was to be secured from the sale of surplus density from the City's lands to the owners of the development site proposed at the northeast corner of Queen and Yonge Streets. The development did not proceed and the sale of density was never completed. Due to the lack of funding, redevelopment within the Theatre Block did not proceed as anticipated.

Description of the City's Holdings:

 The City is the owner of lands known municipally as 197, 197R, 201 and 205 Yonge Street and described as PARTS 1, 2, 3, 4, 5, 6, 7 and 8 on Reference Plan 66R-15815. Although this report deals with declaring only 197, 197A, and 201 Yonge Street surplus to the City's requirements, the brief description and history set out below include the entire site and Appendix "A" sets out the area of each of the PARTS. It is noted that the Yonge Street frontage is zoned CR T6.0 C4.5 R6.0 H.46.0 and the Victoria Street frontage is zoned CR T7.8 C4.5 R7.8 H61.0.

 197 and 197R Yonge Street:

 In May 1987, the City acquired 197 Yonge Street and 197R Yonge Street from the Canadian Imperial Bank of Commerce for the sum of $2,695,000.00. The City subsequently entered into an agreement with the Ontario Heritage Foundation, the owner 189 Yonge Street and 156 Victoria Street, the Elgin Winter Garden Theatre, for an exchange of lands. The City conveyed to the Ontario Heritage Foundation lands to facilitate the backstage addition to the Elgin Winter Garden Theatre and in exchange, the City acquired additional lands fronting on Victoria Street. Existing rights-of way were extinguished and easements were granted to the Ontario Heritage Foundation and the owner of 193 Yonge Street to facilitate ongoing operations at both locations.

 In 1990, 197 Yonge Street was designated by by-law to be of architectural value and interest. Attempts, including a proposal call, have been made to lease the building, however, renovation costs, leasehold improvement costs, accessibility and costs to preserve its historical significance proved to be to high to attract a lessee, so that the building has remained vacant. The site has been the source of numerous complaints due to debris, vagrants and illegal street vending at the front of the building and debris and illegal parking at the rear. The City has installed barriers to prevent the vagrancy and illegal street vending.

 201 Yonge Street:

 In September 1983, Cadillac Fairview conveyed 201 Yonge Street and 170 Victoria Street to the City in exchange for the right to preserve certain density at the Bay/Dundas Street West corner. The Colonial Tavern, located at 201 Yonge Street, was demolished. Certain interim park improvements (known as Jazz Place Park) were undertaken in 1996 which included a low stage, a seating wall and a crushed stone path leading to the parking area at the rear. A plaque placed in the ground commemorates the Colonial Tavern and the history of jazz in Toronto.

 Certain of the City lands at 170 Victoria Street (now merged with 201 Yonge Street) are subject to easements in favour of the owners of 193 Yonge Street and 189 Yonge Street for loading and unloading to the rear of their buildings as shown hatched on the attached sketch. In addition, the City granted the Corporation of Massey Hall and Roy Thompson Hall a 12 foot temporary right-of-way over the northerly limit of 170 Victoria Street, as shown cross-hatched on the attached sketch, that continues to be in use.

 205 Yonge Street:

 205 Yonge Street, while not a subject of this report for disposal, was acquired from the Toronto Dominion Bank in 1989 for a purchase price of $3,200,000.00. As a condition of sale, the City entered into a 99 year lease with the Toronto Dominion Bank for the exclusive and continuous occupancy of two automated teller machines (ATMs) at a rental rate of $1.00 per annum. The ATMs are located at the southwest corner of the building and are accessed from the south side of the building. Also located at this corner is a disability access ramp to 205 Yonge Street. This former Bank of Toronto building is designated under the Ontario Heritage Act. Extensive renovations were undertaken in 1992 to accommodate the offices of Heritage Toronto.

 Comments:

 As part of Property Services 1997 Asset Management Strategy, a comprehensive review of the City's assets was undertaken and 197, 197R and 201 Yonge Street and 170 Victoria Street, together with a number of other properties, were identified as properties that were potentially surplus to the City's requirements but requiring further review.

 In November, 1997 a poll was undertaken of various former City of Toronto divisions, boards and agencies and the former Metropolitan Toronto, to determine if there existed any municipal interest in retaining the properties. At that time, staff in Parks and Recreation, Urban Planning and Economic Development expressed certain concerns respecting the interim park, historical preservation and access issues, and a public art competition. Discussions have been on-going and at a recent meeting of staff of the involved departments and the Ward Councillor it was agreed the issues have been resolved. City Council's recent approval of the Yonge/Dundas Redevelopment will provide the downtown area with permanent public open space. Easement and Heritage Easement Agreements with a purchaser will preserve the accessibility to 205 Yonge Street and historical elements of the building at 197 Yonge Street. The commemorative plaque will be removed and placed either in the sidewalk or elsewhere in the vicinity and an alternative site will be sought for the public art competition mural.

 The achievement of new retail or other commercial uses on this site is in the interest of achieving the City's Yonge Street revitalization goals. A great deal of public interest has been expressed in the entire site, particularly in 197 Yonge Street, and with the growth in the commercial real estate market, it is an opportune time to market these properties.

 In order to proceed with the sale of these properties, the City must comply with the procedures governing disposal of property. The provisions of the Planning and Municipal Statute Law Amendment Act, 1994 (Bill 163) respecting the sale of real property by the City, its boards, agencies and commissions took effect on January 1, 1995. This legislation required that before the selling of any property , City Council must declare the property to be surplus by by-law or resolution passed at a meeting open to the public; give notice to the public of the proposed sale; and obtain at least one appraisal of the market value of the property, unless exempted by regulations passed under the legislation. An appraisal of the market value of the City's holdings at 197, 197R, 201 Yonge Street and 170 Victoria Street has been undertaken by an independent fee appraiser.

 Conclusion:

 These lands are not required for municipal purposes. The sale of these lands will further Council's goal of the revitalization of Yonge Street and the provide the City with significant revenue.

  Contact Name:

 Carla Inglis, 392-7212, Fax: 392-1880, cinglis@city.toronto.on.ca, (cs98038.wpd)

 (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.)