August 18, 1999

To:Administration Committee

From:Acting Commissioner of Corporate Services

Subject:Declaration as Surplus

795 Middlefield Road - Central Laundry Facility

(Ward 18 - Scarborough Malvern)

Purpose:

To secure authority to declare the property surplus to municipal requirements.

Financial Implications:

Revenue will be generated from the eventual sale.

Recommendations:

It is recommended that:

(1) the property known municipally as 795 Middlefield Road be declared surplus to the City's requirements and all steps necessary to comply with the requirements of By-law 551-1998 be taken; and

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

Background:

On May 25, 1984, Metropolitan Toronto Council approved a laundry agreement between Stork Diaper Services Alberta Ltd. (now K-Bro Linen Systems Inc.) and Metro to provide laundry services to the Homes for the Aged. Pursuant to the joint venture agreement, Central Laundry was designed and built as a single purpose facility at 795 Middlefield Road.

On July 29, 1998, in response to the notice of termination served by K-Bro and by adoption of Clause No. 16 of Report No. 7 of the Community and Neighbourhood Services Committee, City Council directed the Homes for the Aged to develop and issue a Request for Proposal with respect to the future ownership of the Central Laundry and the future provision of laundry services to the Homes for the Aged and other City of Toronto operations served by the Central Laundry. The RFP was issued on January 29, 1999. The submissions were evaluated and reported to City Council.

City Council, at its meeting held on July 6, 7 & 8, 1999, adopted as amended Clause No. 4 of Policy and Finance Committee Report No. 1. Among other recommendations, Council directed staff to enter into negotiations for the sale of the Central Laundry facility to Lakeshore Laundry and Linen Concept Ltd. and to report back to City Council on the outcome of the negotiations, and, if negotiations for the sale are not successful, staff continue discussions with respect to a continued joint venture or profit-sharing arrangement.

Comments:

City staff are continuing negotiations with Lakeshore Laundry and Linen Concept Ltd., the recommended proponent and the Homes' interim launderer currently operating out of the Middlefield Road location. It is anticipated that an Agreement of Purchase and Sale will culminate as a result of these negotiations and the Commissioner of Community and Neighbourhood Services will be in a position to report back to Council at its meeting scheduled for October 26, 27 & 28, 1999. Due to the urgency of this matter, a formal review and circulation process to ascertain whether or not the property is required for other municipal purposes was not undertaken. However, the Property Management Committee has reviewed this matter and concurs with the recommendations of this report.

In order to proceed with the sale of the Central Laundry facility at 795 Middlefield Road, the City must comply with the procedures governing disposal of property. Section 193(4) of the Municipal Act requires that, before the selling of any property, 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.

Conclusion:

The Central Laundry facility at 795 Middlefield Road should be declared surplus to the City's requirements in order to proceed with the proposed sale of the property.

Contact Name:

Luba Tymkewycz; 392-7207; Fax No.: 392-1880; ltymkewy@toronto.ca (ac99122)

Brenda Glover

Acting Commissioner of Corporate Services