February 5, 1999

To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:27 Gloucester Grove

(Ward 28 - York Eglinton)

Purpose:

To authorize the disposal of the property municipally known as 27 Gloucester Grove.

Funding Sources, Financial Implications and Impact Statement:

Revenue of $233,000.00, 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, subject to Provincial concurrence that:

(1)the Commissioner of Corporate Services be authorized to accept this offer in the amount of $233,000.00 as detailed herein;

(2)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;

(3)authority be granted to direct a portion of the sale proceeds on closing to fund the outstanding balance of Costing Unit No. CP300J56174;

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

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

Council Reference/Background/History:

The Province of Ontario is the owner of 27 Gloucester Grove, 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 the only requirement is set out below.

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 27, 1997 appraisal estimating the fair market value of this property at $233,000.00 together with an agreement of purchase and sale.

Comments and/or Discussion and/or Justification:

The tenant, Maria Vertolli, 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 November 24, 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 $233,000.00 most accurately represents fair market value as at the valuation date.

Property Address:27 Gloucester Grove

Legal Description:Part of Lots 106, 107, 108 and 109, Plan 2339, City of Toronto

Approximate Lot Size:7.92 metres (26 feet) fronting onto Gloucester Grove

30.48 metres (100 feet) depth

Easement:Subject to an easement in favour of the City of Toronto for subway purposes registered on Part 12 Reference Plan 64R-7314

Location:South side of Gloucester Grove, south of Eglinton Avenue West, west of Strathearn Road

Improvements:Detached, 3 bedroom, 2 storey dwelling

Occupancy Status:Tenanted

Date Interest Expressed:February 27, 1997

Recommended Sale Price:$233,000.00

Deposit:$11,650.00

Purchaser:Maria Vertolli

Closing Date:March 31, 1999

Terms:Cash on closing, subject to the usual adjustments.

It is noted this is a sale to the existing tenant and is based on a market value appraisal as of the date the tenant expressed written interest. By the adoption of Clause No. 5, Report No. 9 of the Corporate Services Committee, Council at the meeting held on July 29, 30 and 31, 1998 directed that comparable sales data be provided in future reports of property sales. Appendix "A" identifies three comparable properties located in the vicinity that sold at the time of the effective date of the appraisal.

Conclusion:

Completion of this transaction detailed above is considered fair and reasonable and reflective of market value as of February 27, 1997.

Contact Name:

MichelleDeVey, Valutor-Negotiator, Real Estate Services, (416)392-8160, Fax No.: (416)392-4828, E-Mail Address: michelle_devey@metrodesk.metrotor.on.ca (cs99012.wpd)

Margaret Rodrigues

Commissioner of Corporate Services

Mde/vp

Appendix "A"

27 Gloucester Grove - Comparable Sales

The following three addresses represent comparable sales of properties that are quite similar to the residence which forms the subject matter of this report. These three properties consist of detached, 3 bedroom, 2 storey dwellings.

Approximate

AddressLot SizeSale PriceDate of Sale

38 Gloucester Grove 27.5' x 100'$255,000.00August 5, 1997

117 Everden Road25' x 132'$268,000.00October 9, 1997

612 Rushton Road 32' x 128'$239,000.00January 10, 1997