December 18, 1998
To:Corporate Services Committee
From:Commissioner of Corporate Services
Subject:Sale of City Surplus land known as 176 Danforth Road, Part of Lot 7, Plan 1496 (Ward 13 - Scarborough Bluffs)
Purpose:
To inform City Council of an offer to purchase the above city surplus land and recommend that the offer be accepted.
Financial Implications:
The City will realize $65,000.00 from the sale, less broker's commission of $2,600.00 plus GST and any expenses
incurred by the City incidental to the closing of the transaction.
Recommendations:
It is recommended that:
(1)the City accept, from Demetre Grammaticos, in trust, an offer to purchase, the surplus land at 176 Danforth Road,
described as part of Lot 7, Plan 1496 and referred to as Part 1 on Plan 64R-15703, at a price of $65,000.00;
(2)the City Solicitor be authorized to complete this transaction according to the terms and conditions of the Agreement of
Purchase and Sale; and
(3)the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.
Background:
The City owns a parcel of vacant land measuring 50' X 91' located on the north-west side of Danforth Road just east of
Warden Avenue. The then Township of Scarborough acquired the property via a tax certificate in 1940. The property is
shown as Part 1 on Plan 64R-15703. The property comprises an area of 4550 square feet and is zoned Single Family
Residential.
With the approval of Item 22, Report 16 of the Administrative Committee, the former City of Scarborough Council on
September 30, 1997 declared the City-owned land surplus and directed the public be notified of the intent to dispose of the
property by publication of the said report in the Council agenda.
The property was offered for sale by public tender subject to a reserve bid of $75,000.00 in November 1997. No bids were
received. A "for sale" sign was put on the site thereafter and very few inquiries were received.
The property was then listed on the Toronto Real Estate Board's Multiple Listing Service with Esbin Realty in September
1998 at an asking price of $79,900.00. There were few enquiries and the asking price was reduced to $75,000.00 on
October 16, 1998. An offer from Demetre Grammaticos in trust, in the amount of $65,000.00 was received on November
17, 1998 and is recommended for acceptance.
Comments:
The terms of the offer from Demetre Grammaticos, in trust, are summarized as follows:
Purchase Price:$65,000.00
Payment Method:Deposit of $10,000.00 (certified cheque)submitted with offer and balance to be paid on closing date.
Irrevocable Date:February 26, 1999
Closing Date:March 15, 1999
Conditions:That upon acceptance of the Offer, Purchaser, at his own expense, will have the right to apply for a severance
and a variance from the existing by-law to create a second lot. It is noted the closing of the transaction is not conditional
on the Purchaser being successful with the application.
Conclusion:
An appraisal in October 1998 estimated the market value of the property in the range of $60,000.00 to $75,000.00.
Considering the property has been exposed on the market for a year and that the offer price is within the market value
range, its acceptance is recommended.
Contact Name:
Neubert Li, Phone (416) 396-7422, Fax (416) 396-4241, email address: li@city.scarborough.on.ca, (cs99003.wpd )
Margaret Rodrigues
Commissioner of Corporate Services
