March 2, 1999

To:Corporate Services Committee

From:City Clerk

Subject:Property Acquisition Request from L.A.C.A.C.

W. J. Morrish Store, North-west Corner of Meadowvale Road and Kingston Road

Ward 16 - Scarborough Highland Creek

Recommendation:

The Scarborough Community Council, at its meeting held on February 17, 1999, referred the request by the Scarborough Local Architectural Conservation Advisory Committee (L.A.C.A.C.) to the Corporate Services Committee for its consideration; and requested that the Commissioner of Corporate Services be directed to submit a further report thereon to the Committee.

Background:

The Scarborough Community Council had before it a report (January 14, 1999) from the Commissioner of Corporate Services, advising that the Local Architectural Conservation Advisory Committee has requested that the City consider the acquisition and preservation of the W. J. Morrish Store because of its historic significance, concluding that no further action should be taken at this time due to the considerable difference of opinion as to the value of this property between the owner and Real Estate Division staff, and recommending that this report be received for information.

The following persons appeared before the Community Council in connection with the foregoing matter:

-Mr. Richard Schofield, Chairman, Scarborough L.A.C.A.C.; and

-Mr. William A. Dempsey, Honorary Secretary, Centennial Community and Recreation Association.

The Community Council also received a communication in support of the potential acquisition from Mr. Clancy Delbarre, President, Highland Creek Community Association, a copy of which is appended hereto.

City Clerk.

Margaret O'Neil

Copy to:M. Rodrigues, Commissioner of Corporate Services

Encls.

January 14, 1999

To:Scarborough Community Council

From:Commissioner of Corporate Services

Subject:Property Acquisition Request from Local Architectural Conservation

Advisory Committee - W.J. Morrish Store - northwest corner

Meadowvale Road and Kingston Road

(Ward 16 - Scarborough Highland Creek)

Purpose:

The Local Architectural Conservation Advisory Committee has requested the City consider the acquisition and preservation of the W.J. Morrish store because of its historic significance.

Financial Implications:

Not required at this time.

Recommendations:

It is recommended that this report be received for the information of Scarborough Community Council.

Background:

At the November 10, 1998 meeting of the Local Architectural Conservation Advisory Committee, (LACAC), the Committee directed the President of LACAC to "seek Council's support in asking staff to develop an acquisition strategy in order to preserve this historic site." A copy of the President's letter is attached.

The W.J. Morrish store is located at the northwest corner of Meadowvale Road and Kingston Road in the eastern part of the former City of Scarborough. The main portion of the building was constructed about 1891, with an addition built about 1906. The building contains a hand-operated elevator of historic significance. The building is designated under the Ontario Heritage Act.

The building was operated as a retail store until approximately ten years ago, but has been vacant since. Although the building is structurally sound, considerable renovations and remodelling are required to make it suitable for any use today. In addition, the building needs to be connected to storm and sanitary sewers, which have been made available since the building was vacated. The building is not heated during the winter, and its condition is deteriorating. Vandalism is also a constant concern.

The property owner has listed the property for sale on several occasions over the last few years, and has had discussions with a number of prospective purchasers. Some of these have indicated a desire to renovate the structure and possibly convert it to another purpose. Uses as a residence, bed and breakfast, restaurant, or retail store have been suggested.

Recognizing the historic importance of this building, in 1996 the former City of Scarborough Council directed staff to discuss the acquisition of the property with the owner. For more than two years, staff discussed a variety of options with the owner in an attempt to acquire the building. No agreement was reached.

Comments:

Although the owner willingly entered into discussions with Real Estate staff, no agreement was possible because of the considerable difference of opinion as to the value of the property. A staff report to Scarborough Council in 1996 indicated a $200,000.00 variance in our respective value estimates.

Staff also explored a number of alternatives to an outright purchase, including a land exchange for several building lots in the same neighbourhood as the store, the acquisition of the building only for a nominal sum, with the City providing a tax receipt and being responsible for relocation and a combination of one or more building lots plus cash. No agreement was reached, because of the owner's expectations regarding the property's value.

Staff have remained in regular contact with the owner, in order to renew negotiations should the situation change. As recently as early December of 1998 the owner acknowledged that he was continuing in his efforts to market the property for $550,000.00, the same amount as he was seeking previously, when negotiations with the City of Scarborough broke down.

Given this background, the City's options appear to be limited to the following:

1.To continue to monitor the situation, and continue to encourage the owner and/or prospective purchasers to convert the property to another use. Unfortunately, as time passes further damage may occur because of vandalism, and the continued deterioration of the structure due to the elements.

2.The City may agree to pay the owner's purchase price either in cash or as part of a land exchange.

3.The City may expropriate the property. While this action would obtain the property for the City, it would also require the City to pay the owner's reasonable legal, appraisal and other costs to determine the compensation payable. This may include the costs of a hearing before the Ontario Municipal Board, if necessary. Such costs vary widely, but $50,000.00 to $100,000.00 would not be out of the question.

While it would be desirable for this historic building to be under the control of the City, purchasing it for significantly more than what is considered market value would set a poor precedent for other negotiations. It is therefore considered appropriate for staff to continue to monitor the situation closely and co-operate with the owner should a proposal to convert the building to another use be forthcoming.

Conclusion:

While staff should maintain contact with the owner to ensure that the owner is aware of the City's continuing interest in this property, no further action should be taken at this time.

Contact Name:

Warren Poole, Telephone No. (416) 396-4930, Fax No. (416) 396-4241,

poole@city.scarborough.on.ca, (scc99009.wpd )

Margaret Rodrigues

Commissioner of Corporate Services