March 10, 1999
To:Corporate Services Committee
From:Commissioner of Corporate Services
Subject:Sale of Surplus City-owned Property
180 Duncan Mill Road,
City of Toronto's Interest 94.2% in the former Metropolitan
Toronto Condominium Plan No. 988 (MTCP No. 988), now City of Toronto
/(Ward 11 - Don Parkway)
Purpose:
To authorize the disposal of the property municipally known as 180 Duncan Mill Road.
Funding of Sources, Financial Implications and Impact Statement:
Revenue of $2,425,000.00 to be allocated as follows:
City of Toronto :94.2%:$2,284,350.00
Ontario Association for Community Living : 5.8%: $140,650.00
less commission, GST, closing costs, and the usual adjustments is anticipated.
Recommendations:
It is recommended that:
(1)the Commissioner of Corporate Services, or the Executive Director of Facilities and Real Estate, be authorized to
accept the Offer to Purchase as submitted, in the amount of $2,425,000.00 by Invar Consolidated Limited as detailed
herein;
(2)5.8 percent of the sale proceeds, less 5 percent commission, GST and the usual adjustments be paid to Ontario
Association for Community Living (OACL).
(3)the City Solicitor be authorized and directed to take the appropriate action to complete the transaction on behalf of the
City and be further authorized to amend the closing date to such earlier or later date as he considers reasonable; and
(4)the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.
Council Reference/Background/History:
In February 1996, a 94.2 percent condominium interest in 180 Duncan Mill Road was offered for sale by public tender
pursuant to the Municipal Tax Sales Act. The reserve bid, comprised of tax arrears, interest and penalty was $3,745,000.00.
No bids were received and the ownership of the 94.2 percent condominium interest in 180 Duncan Mill Road, was vested
in the City of North York on March 4, 1996, registered as Instrument No. D490872.
Located west of Don Mills Road, south of Highway #401, the entire property is legally described as, Lots 88, 89 and 90,
Registered Plan 7607. The 94.2 percent interest is described as being all units and common elements comprising the
property included in the former Metropolitan Toronto Condominium Plan (MTCP) 988, (now City of Toronto), being the
common elements and General Index and property parcel registered for MTCP 988 save and except Units 10-17, Level 6
and Units 31, 32 and 33, Level A, MTCP 988 in the City of North York in the former Municipality of Metropolitan
Toronto (now City of Toronto). The other 5.8 percent condominium interest in the property is owned by the Ontario
Association for Community Living and is described as MTCP 988, Level 6, Units 10-17 and Units 31, 32 and 33, Level A.
The site area of the entire property is 2.339 acres with a frontage of 340.16 feet on the north side of Duncan Mill Road by
irregular depth. It is Zoned M2 (Industrial Inside Storage Zone) and is designated as O1 Office Industrial in the Official
Plan.
The property is improved with a seven storey, 109-unit office building, comprising a gross floor area of approximately
130,536 square feet. It is approximately 23 years old and was converted to condominium offices in 1991. There is an
18,256 square foot, two-storey annex which is linked to the main building via the main lobby. There are two multi-level
parking garages underneath the 7-storey building containing 153 spaces. To the east, there is surface and an underground
parking structure consisting of 210 spaces.
The subject property has been held under interim management since acquired by the City. The buildings were vacant at the
time of the tax sale and are still vacant.
City Council, at its meeting of April 16, 1998, declared the City's interest in 180 Duncan Mill Road surplus to the needs of
the City and directed the Commissioner of Corporate Services to give notice to the Public of the impending sale. Notice
was given by newspaper ad appearing in the Toronto Star on May 27, 1998. CB Richard Ellis, (CB), a well known real
estate broker, was selected to market the property. OACL was approached concerning the joint marketing of their
condominium interest in this property. OACL agreed and has been very co-operative with the City and with CB throughout
the process. In their proposal to the City, CB recommended a non-priced, modified request for offers process to achieve the
highest price for the City.
Comments and/or Discussion and/or Justification:
Pursuant to the April 16, 1998 authority, the property was marketed for sale by CB with a closing date of December 16,
1998 at 3:00 p.m. Seven offers were received by the submission deadline. The highest offer was for $3,124,632.00 by LOM
Precious Metals Inc. but no deposit was submitted, and therefore did not meet the submission requirements. A Summary
Chart, of the original seven offers, is attached hereto as Schedule "A".
The next highest offer was made by All-Borough Millennium at $2,600,000.00. It was a conditional offer. The applicant
was provided with an opportunity to remove the conditions within 30 days in order that staff could present a firm offer to
Corporate Services Committee. The applicant utilized most of this period of time and then requested a further extension.
This request was refused and the 30 day time frame was re-affirmed. They advised they did not wish to pursue the purchase
and ultimately withdrew their offer.
The next three highest offers were by:
- Invar Consolidated Limited: $2,100,000.00
- YPL Investments Limited: $1,950,000.00
- Amexon Property Management: $1,800,000.
In consultation with the broker, it was decided that, as these offers were all conditional and relatively close, another round
of offers should be requested. This was done with the closing date of January 28, 1999 by 4:00 p.m. Two offers were
received, and they are outlined below. Both offers were still conditional.
- Invar Consolidated Limited:$2,200,000.00
- Amexon Property Management:$2,100,000.00
As the price range was still close and both offers were still conditional, an absolute, final opportunity to submit revised
offers was provided with both offerors being allowed time to review the building condition requirement. Both parties were
advised they could improve their offers by increasing their offer amount or eliminating the conditions or a combination of
both. The date for the last submission was February 22, 1999 at 4:00 p.m. As a result of the last round, Amexon Property
Management did not improve their offer. However, an increased, unconditional, firm offer was received from Invar
Consolidated Limited and is summarized below. This offer is recommended for acceptance.
Offer Received From:Invar Consolidated Limited
Amount of Offer:$2,425,000.00 (for 100 percent interest)
Deposit:$100,000.00
Acceptance Date:After Council Approval - April 13, 14, and 15, 1999
Closing Date:60 days after Council approval, or sooner
Commission:Five (5) percent, plus GST, payable on closing of the transaction.
Real Estate Broker:CB Richard Ellis
Conclusion:
Completion of this transaction detailed above is considered fair and reasonable and reflective of market value.
Contact Name:
Vicky Papas, Real Estate Clerk, Real Estate Division (416) 392-1830, Fax No.: (416) 392-1880, E-Mail Address:
vpapas@toronto.ca
Margaret Rodrigues
Commissioner of Corporate Services
/vp
