May 31, 1999

To:Administration Committee

From:Commissioner of Corporate Services

Subject:Declaring Property at south-end of Chemical Court Surplus and Authorizing its Sale to an Abutting Owner

(Ward 16 - Scarborough Highland Creek)

Purpose:

To declare a strip of municipally owned land surplus and authorize its sale to the abutting owner.

Financial Implications:

None.

Recommendations:

It is recommended that:

(1)Corporate Services Committee and City Council declare the lands described as Parts 2, 3, 4 and 5, 64R-15477 as surplus and provide notice of its intent to dispose of the lands in accordance with By-law 551-1998 (disposal of real property);

(2)the lands be conveyed to Witco Canada Inc. for the nominal sum of $1.00, subject to reserving easement rights over the entire property being sold to permit access for the operation, maintenance and/or replacement of the storm and sanitary sewers;

(3) the City Solicitor be authorized to complete this transaction according to the terms and conditions of the Agreement of Purchase and Sale; and

(4) the appropriate City officials be authorized and directed to take necessary action to give effect thereto

Background:

By the adoption of Item 17, Report 22 of the Administrative and Finance Committee, on October 4, 1994, the Council of the former City of Scarborough agreed to convey Parts 2, 3, 4, and 5, 64R-15477 to Surpass Chemical, now Witco Canada Inc., for the nominal sum of $1.00 to accommodate the construction of additional railway spur lines to a proposed plant expansion. The conveyance was conditional upon Surpass extending the existing storm sewer approximately 50 metres and relocating an existing headwall. The sewer extension was to have been constructed prior to the conveyance.

The City property is approximately 57 feet x 700 feet (0.937 ac.) and is located between the Witco property at the end of Chemical Court and the CNR tracks and extends westerly from Chemical Court. The lands are encumbered with storm and sanitary sewers. Easement rights are required to facilitate maintenance of the existing services. In addition, Witco has an easement over Part 3 for a rail spur line.

Although the then Scarborough Council approved the conveyance in October 1994, a formal agreement between the parties was not executed until July 1995. The work was completed by Witco prior to November 30, 1995, however, the conveyance was never completed.

Between the time that Council authorized the conveyance and the formal agreement was executed, and now the provisions of the Municipal Act relative to the disposal of surplus property have changed, and we are required to meet the standards of the amended legislation.

Given the original intent to convey the lands in exchange for capital improvements thereon which have been completed, it is recommended that Council declare the lands as surplus and provide public notice of its intent to convey the lands to Witco Canada Inc.

Conclusion:

Declaring the lands surplus and providing notice of intent to dispose of the lands will meet the requirements of the Municipal Act and will honour the 1995 agreement between the former City of Scarborough and Witco Canada Inc. (formerly Surpass Chemicals Ltd.).

Contact Name:

Mr. Roland Mayr, Director of Real Estate, Telephone No. (416) 392-1166; Fax No.: (416) 392-1880; E-mail Address: roly_mayr@metrodesk.metrotor.on.ca., (ac99091.wpd)

Margaret Rodrigues

Commissioner of Corporate Services