June 2, 1999

To:Administration Committee

From:Commissioner of Corporate Services

Subject:Sale of Surplus Spadina Project Property at 42 Gloucester Grove

(Ward 28 - York Eglinton)

Purpose:

To authorize the disposal of the property municipally known as 42 Gloucester Grove.

Funding Sources, Financial Implications and Impact Statement:

Revenue of $281,100.00, less closing costs and the usual adjustments, subject to the revenue sharing agreement with the Province pursuant to the former Metropolitan Corporate Administration Committee Report No. 25, Clause No. 1, approved on December 4, 1996.

Recommendations:

It is recommended that:

(1)the Commissioner of Corporate Services or the Executive Director of Facilities and Real Estate be authorized to accept the highest offer in the amount of $281,100.00 as detailed herein;

(2)Council, pursuant to Clause No. 14, of Report No. 22 of the former Metropolitan Management Committee adopted on September 28, 1994, waive the minimum required deposit of 10 per cent. of the purchase price;

(3)authority be granted to direct a portion of the sale proceeds on closing to fund the outstanding balance of Costing Unit No. CA700CA2524;

(4)the City Solicitor be authorized and directed to take the appropriate action, in conjunction with Province of Ontario Officials and/or agents, to complete the transaction on behalf of the City and he be further authorized to amend the closing date to such earlier or later date as he considers reasonable; and

(5)the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

The Province of Ontario is the owner of 42 Gloucester Grove, subject to a ninety-nine year lease in favour of the City of Toronto. By its adoption of Clause No. 1 of Report No. 3 of The Corporate Administration Committee on February 12 and 13, 1997, Metropolitan Council declared the property surplus pursuant to By-Law No. 56-95 and authorized its disposal. The procedures with respect to By-Law No. 56-95 have been complied with, a utility canvass has been completed and the only requirement is set out below.

By its adoption of Clause No. 4 of Report No.9 of the Corporate Services Committee of July 8, 9 and 10, 1998, Toronto Council authorized that properties listed in Schedule "A", including the subject property, be offered to such tenants at market value determined as of the date of expression of their interest and that such sale be subject to an option to repurchase at that purchase price (unadjusted) for a period of two years. Accordingly, the tenant was provided with our July 2, 1997 appraisal estimating the fair market value of this property at $225,000.00 together with an Agreement of Purchase and Sale. The tenant, Anne Marie Kopp, subsequently advised that she was not prepared to proceed with the purchase of the property but instead would prefer the financial incentive to vacate. Subsequently, Ms. Kopp vacated her rented premises (December 31, 1998) and was thereafter credited $3,688.44 as a financial incentive.

Comments and/or Discussion and/or Justification:

Pursuant to the February 12 and 13, 1997 authority, the property was listed with Forest Hill Real Estate Inc. on April 29, 1999 at an asking price of $239,900.00. As a result, the following offers were received:

The highest offer is recommended for acceptance:

By the adoption of Clause No. 5 of Report No. 9 of The Corporate Services Committee, Council at the meeting held on July 8, 9 and 10, 1998 directed that comparable sales data be provided in future reports of property sales. Appendix "A", identifies three comparable properties located in the vicinity that have recently sold. While complarable sales information can be included as part of the staff report, this property was listed for sale on the TREB multiple listing service and the forces of the market place have determined the true market value.

Conclusion:

Completion of this transaction detailed above is considered fair and reasonable and reflective of market value.

Contact Name:

Michelle DeVey, Valuator-Negotiator, Real Estate Services, (416)392-8160, Fax No.: (416)392-4828, E-Mail Address: michelle_devey@metrodesk.metrotor.on.ca (ac99090.wpd)

Margaret Rodrigues

Commissioner of Corporate Services

Appendix "A"

42 Gloucester Grove - Comparable Sales

The following three addresses represent comparable sales of properties that are quite similar to the residence which forms the subject matter of this report. These three properties consist of detached, 3 bedroom dwellings.

Approximate

Address	Lot Size	Sale Price	Date of Sale
111 Everden Road	31' x 110'	$267,850.00	May 11, 1999
36 Gloucester Grove	27.5' x 100'	$293,700.00	April 13, 1999
11 Watford Avenue	27.5' x 101'	$255,000.00	February 11. 1999