August 20, 1999
To:Administration Committee
From:Acting Commissioner of Corporate Services
Subject:Sale of 80 Turnberry Avenue
(Ward 21 - Davenport)
Purpose:
To authorize the sale of the property known municipally as 80 Turnberry Avenue.
Financial Implications:
Revenue of $2,607,000.00 less real estate commission (3%), and the usual adjustments on closing is anticipated.
Recommendations:
It is recommended that:
the Acting Commissioner of Corporate Services or the Executive Director of Facilities and Real Estate be authorized to
accept the Offer to Purchase in the amount of $2,607,000.00 as submitted by 1298396 Ontario Limited;
the Chief Financial Officer in consultation with the Acting Commissioner of Corporate Services be authorized to direct a
portion of the sale proceeds on closing to fund the expropriation of 11 Hounslow Heath Road;
the City Solicitor be authorized and directed to take appropriate action to complete the transaction and be further
authorized to amend the closing date to such earlier or late date considered reasonable; and
the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.
Background:
80 Turnberry Avenue is a vacant site of approximately 3.78 acres in the St. Clair West/Weston Road area. The site was
acquired by the former City of Toronto in April 1994 for non-payment of taxes.
Details of the property are set out below:
Property Address:80 Turnberry Avenue
Legal Description:Part of Township Lot 35, Concession 3 from the Bay, City of Toronto,
being Parts 1-4 inclusive, Plan 64R-16034
Lot Size:83.82 metres (257 feet) frontage on the north side of Turnberry
Avenue, 224.33 metres (736 feet) depth
Zoning:I3D5
Improvements:None
The property was offered for sale through JDF Realty Ltd. in November 1998. Eight (8) offers were received. Two of those
offers were substantially higher than the remaining proposals. A series of amendments to the two highest offers led to the
Corporate Services Committee directing staff to provide each of the eight prospective purchasers one final opportunity to
submit a final offer. Of the eight original offerors, three responded to the City's invitation to resubmit an offer. All
contained the same condition that the purchasers be permitted to conduct a site investigation during a 45 day due diligence
period.
At the meeting held on March 2, 3 and 4, 1999, Council accepted the highest offer to purchase from 1298396 Ontario
Limited in the amount of $2,707,000.00. After having undertaken additional soil testing and during the due diligence
period the purchaser exercised its right to terminate the agreement advising that the results of their site investigation
revealed the cost of site clean-up exceeded their expectations. They did agree to provide staff with a copy of their
consultants environmental report and the estimated costs of site remediation.
It was determined by staff that, in order to expedite the process, the original eight offerors should once again be permitted
to bid on the property. However, as full environmental information was now available, the Agreement of Purchase and Sale
was amended to reflect a fully unconditional sale. With the permission of the consultants and the owner of the
environmental report staff advised the original eight offerors of the availability of the property and of the further
environmental report which was made available for review prior to the submission of offers. An information package
including an "offer to purchase" form was sent to each with a further invitation to bid on the property. Three offers were
received by the deadline date August 19, 1999 and are summarized on the following page.
The highest offer from 1298396 Ontario Limited is recommended for acceptance. The offer is summarized as follows:
Purchaser:1298396 Ontario Limited
Amount of Offer:$2,607,000.00
Deposit:$500,000.00
Intended Use:Residential redevelopment
Acceptance Date Deadline:October 28, 1999
Closing Date:45 days from acceptance date
Conditions:None
Commission:Three (3) percent plus G.S.T. payable on closing of the transaction.
Conclusions:
Completion of this transaction as detailed herein is considered fair and reflective of market value.
Contact Name:
Roland Mayr, Facilities & Real Estate (416)392-1166, Fax No.: (416)392-1880. (ac99132)
Brenda Glover
Acting Commissioner of Corporate Services
80 TURNBERRY AVENUE
| Summary of Offers Received February 23, 1999 |
| Offer |
Purchaser |
Offering
Price |
Deposit |
Closing |
Conditions |
|
1. |
1298396Ontario
Limited |
$2,607,000.00 |
$500,000.00 |
45 days after
acceptance |
None |
|
2 |
Green Banner
Developments
Ltd. |
$2,050,000.00 |
$205,000.00 |
30 days after
acceptance |
None |
|
3 |
John Paul Cruz
In Trust |
$1,200,000.00 |
$120,000.00 |
Oct. 29, 1999 |
Agreement
subject to
approval by
Purchasers
Solicitor 10
business days
after acceptance
by City |
