January 22, 1999

To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:Sale of Surplus Spadina Project Property at 139 Everden Road

Ward 28 - York-Eglinton

Purpose:

To authorize the disposal of the property municipally known as 139 Everden Road.

Financial Implications:

Revenue of $175,000.00, 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)subject to the Province agreeing that for purposes of the revenue sharing agreement between the City and the Province, the market value of the property at 139 Everden Road is $210,000.00;

(2)the Commissioner of Corporate Services be authorized to accept an offer in the amount of $175,000.00 as detailed herein;

(3)Council, pursuant to Clause No. 14, of Report No. 27 of the former Metropolitan Management Committee adopted on September 28, 1994, waive the minimum required deposit of 10 per cent of the purchase price;

(4)authority be granted to direct a portion of the sale proceeds on closing to fund the outstanding balance of Costing Unit No. CP300J56155;

(5)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 Corporation and he be further authorized to amend the closing date to such earlier or later date as he considers reasonable; and

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

Council Reference/Background:

The Province of Ontario is the owner of 139 Everden Road, 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 no easement requirement has been identified.

By its adoption of Clause No. 4 of Report No. 9 of The Corporate Services Committee on July 8, 9, and 10, 1998, Toronto Council authorized that properties listed in Schedule "A", including the subject, be sold to sitting tenants at market value determined as at the date of expression of their interest and further 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 February 26, 1997 appraisal estimating the fair market value of this property at $180,000.00 together with an agreement of purchase and sale.

Comments:

The tenant, Judith Everson, rejected the City's appraised value, and requested the matter of market value be referred to arbitration in conformance with Council's directive to have a third party arbitrator attempt to bring the parties together. (Clause 4, Report 9, Corporate Services Committee adopted as amended by Council at the meeting held on July 8, 9, and 10, 1998). An arbitration hearing was held on December 11, 1998 at which time both parties presented oral and written submissions in support of their respective estimates of market value. In a written decision, the arbitrator, Ms. Patricia Dunn stated that $175,000.00 most accurately represents fair market value as at the valuation date.

Subsequent to the arbitrator's decision, Ms. Everson submitted the following offer:

Property Address:139 Everden Road

Legal Description:Lot 26, Registered Plan 2339, City of Toronto (formerly City of York).

Lot Size:7.62 metres (25 feet) fronting onto Everden Road

40.2 metres (132 feet) depth

Location:East side of Everden Road, north of Gloucester Grove

Improvements:Detached, brick bungalow

Right-of-Way:Subject to a mutual right-of-way.

Occupancy Status:Tenanted

Date Interest Expressed:February 26, 1997

Amount of Offer:$175,000.00

Deposit:$8,750.00 (certified cheque)

Purchaser:Judith Everson

Closing Date:March 31, 1999

Terms:Cash on closing, subject to the usual adjustments and registration of an option to purchase.

The third party arbitrator having received written and oral submissions relative to the value of the property has rendered a written decision in which she expresses that $175,000.00 most accurately represents fair market value as at the valuation date. It is therefore recommended that Ms. Everson's offer be accepted.

This is a proposed sale to an existing tenant and is based on market value as at February 26, 1997. Council directed that comparable sales data be provided for property sales in the Spadina corridor. Appendix "A" identifies three comparable sales located in the vicinity of the subject.

The revenue sharing agreement with the Province as regards the Spadina corridor properties (former Metropolitan Corporate Administration Committee, Report 25, Clause No. 1, approved December4, 1996) stipulates that the properties are to be sold at current market value and the revenues are to be shared on that basis. An appraisal report with an effective date of October 7, 1998 estimates the value of the property at $210,000.00 which is the basis upon which the revenues are to be shared. The provincial share of the net proceeds from this sale will therefore be approximately $70,000.00, less administrative costs and normal adjustments.

Conclusion:

The sale of this property at $175,000.00 is considered fair and reasonable, reflecting market value as at February 26, 1997 in accordance with Council directives.

Contact Name:

S. Badin, Valuator-Negotiator, Real Estate Services, (416) 392-8142, Fax No. (416) 392-4828 E-Mail Address: sheryl_badin@metrodesk.metrotor.on.ca (cs99023.wpd)

Margaret Rodrigues

Commissioner of Corporate Services

SAB/vp

Appendix "A"

139 Everden Road - Comparable Sales

The following three addresses represent recent comparable sales of properties that are similar to the residence which forms the subject matter of this report. These three properties consist of brick bungalows located in the vicinity of the subject property.

Approximate

AddressLot SizeSale PriceDate of Sale

112 Everden Road25 x 133$211,000.00August 18, 1997

218 Ava Road35 x 110$213,000.00July 7, 1997

479 Winnett Avenue25 x 133$193,000.00January 29, 1997