March 8, 1999

To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:Sale of Surplus Spadina Project Property at 134 Everden Road

(Ward 28 - York Eglinton)

Purpose:

To authorize the disposal of the property municipally known as 134 Everden Road.

Funding Sources, Financial Implications and Impact Statement:

Revenue in the minimum amount of $228,000.00, 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 will be realized from the sale of this property is the recommendations in this report are approved.

Recommendations:

It is recommended, subject to Provincial concurrence that:

(1)the Commissioner of Corporate Services or the Executive Director of Facilities and Real Estate be authorized to accept this offer in the amount of $228,000.00 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. CP300J56153;

(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 Corporation 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 134 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 the easement requirement detailed herein 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 property, be sold to tenants at market value determined as of the date of expression of their interest and that such sale be subject to an option to repurchase at that purchase price (unadjusted) for a period of two years. Although a new appraisal was secured with an effective date of June 23, 1997 in the amount of $245,000.00, the property was offered to the tenant for the sum of $240,000.00 which was the amount of a lower appraisal previously received on this property. In addition, the property had been offered to the tenant at this amount last year and it was considered appropriate to continue to offer the property for the amount of $240,000.00.

Comments and/or Discussion and/or Justification:

The tenant, Ms. Eleanor Lavender, rejected the City's offer, 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 No. 4, Report No. 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. It is noted the City's value was based upon the most recent appraisal in the amount of $245,000.00. It is further noted that, at the arbitration, Mrs. Lavender presented evidence in support of her claim that the date of her expression of interest should be February 12, 1997 not June 23, 1997. In a written decision, the arbitrator, Ms. Patricia Dunn concluded that $245,000.00 more accurately represents fair market value as of June 23, 1997. Ms. Dunn further concluded that if the parties were to agree on a Valuation Date of February, 1997, the fair market value would have been $10,000.00 to $12,000.00 less.

As part of the arbitration process, Ms. Lavender, provided information to staff to substantiate the fact that her interest in the property was initiated early in 1997. Although, the information did not constitute a written expression of interest, staff are satisfied that the effective date of the appraised value can be February 12, 1997, and based upon the offer made to Ms. Lavender in the amount of $240,000.00 and the arbitrator's recommended reduction of $10,000 to $12,000.00 an offer to purchase from Ms. Lavender in the amount of $228,000.00 has been received.

A summary of the property and the terms and conditions in Ms. Lavender's offer to purchase are as follows:

Property Address:134 Everden Road

Legal Description:Lot 19, Registered Plan 2339, City of Toronto (formerly City of York)

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

40.54 metres (133 feet) depth

Location:West side of Everden Road, south of Eglinton Avenue

Improvements:Detached, 2-storey, brick dwelling

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

Easement:Title to the property will be conveyed subject to a sewer easement in favour of the City of Toronto registered as Part 4, Reference Plan 64R-7314 as set out in Instrument Nos. CA493046 and CA510705.

Occupancy Status:Tenanted

Date Interest Expressed:February 12, 1997

Amount of Offer:$228,000.00

Deposit:$11,400.00

Purchaser:Eleanor Lavender

Closing Date:June 25, 1999

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

This is a proposed sale to an existing tenant and is based on market value as at February 12, 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 No. 25, Clause No. 1, approved December 4, 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 $290,000.00 which is the basis upon which the revenues would be shared with the Province. The provincial share of the net proceeds would be approximately $96,999.67 less administrative costs and normal adjustments.

Conclusion:

The sale of this property at $228,000.00 is considered fair and reasonable and reflective of market value as at February 12, 1997.

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 (cs99022.wpd)

Margaret Rodrigues

Commissioner of Corporate Services

SAB/vp

Appendix "A"

134 Everden Road - Comparable Sales

The following three addresses represent comparable sales of properties that are similar to the residence which forms the subject matter of this report. These three properties consist of 2-storey brick dwellings located in the vicinity of the subject property.

Approximate

AddressLot SizeSale PriceDate of Sale

38 Gloucester Grove27.5 x 100$255,000.00August 15, 1997

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

527 Rushton Road25 x 120$217,500.00May 28, 1997