March 22, 1999

To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:Ontario Hydro Corridor Lands South of Highway 401

(Ward 14 - Scarborough Wexford and Ward 15 - Scarborough City Centre)

Purpose:

To respond to Council's directive to report on the potential cost of the acquisition of priority 1, 2 and 3 lands as identified in "Stormwater Management, Naturalization and Open Space Opportunities Report" prepared by XCG Consultants Ltd.

Financial Implications:

No financial implications at this time.

Recommendations:

It is recommended that Corporate Services Committee provide direction to staff on this matter.

Background:

In August, 1998 the City in collaboration with the Toronto and Region Conservation Authority retained XCG Consultants Ltd. (XCG) to investigate opportunities for stormwater management, naturalization and open space planning purposes in the Ontario Hydro surplus corridor lands in the West Highland Creek and Massey Creek watersheds and to prioritize critical land parcels for acquisition. The study is divided into two areas, north and south of Highway 401.

The south study area extends north-westerly from Kennedy Road across Birchmount Road and Warden Avenue to Highway 401 and is further divided into two sections. The first being part of the Dorset Park Community, between Kennedy and Birchmount Roads and the second being part of the Maryvale Community, west of Warden Avenue and extending north to Highway 401.

City Council at its meeting held on February 2, 3 and 4, 1999, amended and adopted Clause 12, Report 1 of the Scarborough Community Council and thereby directed staff report to Corporate Services Committee for subsequent submission to the Budget Committee and Council on:

a)the negotiation of the purchase of priority 2 and 3 lands identified in the XCG Consultants report, between west of Warden and south of Highway 401 provided that the purchase be subject to funds being available from the former Scarborough Parks Reserve; and

b)the potential cost of acquisition of priority 1, 2 and 3 lands.

Norstar Development Corporation had an agreement of purchase and sale with Ontario Hydro whereby they are to acquire all of the hydro corridor in the Maryvale Community (approximately six acres) and approximately twelve of approximately eighteen acres of the corridor in the Dorset Park Community.

At the meeting held on March 2, 3 and 4, 1999 City Council approved the acquisition of priority 1 lands (11.83 acres) from Norstar Development Corporation, within the Dorset Park Community and lying between Birchmount and Kennedy Roads at a purchase price of $6,000,000.00.

Of the remaining 6.34 acres of priority 1 lands between Birchmount and Kennedy, Hydro has agreed to sell approximately 0.34 acres to Birchmount Kennels which operates an animal clinic and kennel on the adjoining property. The kennel owners have been long term tenants at this location. Further study is required to determine the impact development of this tract may have on the balance of the priority 1 lands in this area. Purchase of this tract may also prove difficult because of the adjoining commercial use and may require a complete buy out and/or relocation of the kennel operation. The City, by virtue of an existing lease agreement between Ontario Hydro and the former City of Scarborough, controls approximately 4.75 acres which continue to be used for stormwater storage. The remaining lands which front Kennedy Road and extend northerly adjacent to the leased stormwater ponds (1.25" acres) are the subject of ongoing negotiation with Hydro.

The priority 2 and 3 lands south of Highway 401 and west of Warden Avenue are the subject of an OMB hearing initiated by Norstar Development Corporation. The OMB hearing which also included the lands between Kennedy and Birchmount Roads was adjourned on March 3, 1999, for a period of six months to allow Norstar to complete the sale of the 11.83 acres of priority 1 lands between Kennedy and Birchmount to the City.

Comments:

Norstar Development Corporation has no interest in selling the lands between Warden Avenue and Highway 401 and wishes to complete the OMB hearing as soon as possible, in order to proceed with development.

Prior to the City negotiating the purchase of the corridor lands between Birchmount and Kennedy it had been the objective of the Economic Development Culture and Tourism Department to consolidate the parkland contribution from the entire Norstar Development development in both the Dorset and Maryvale communities in the Maryvale Community. The original development would have generated a one acre park, large enough to accommodate a play structure and some landscape elements for the local neighbourhood and would have fulfilled the Department's objective and community wishes. The remaining development as proposed will generate a parkland contribution of 0.3 acres which is considered by Parks staff too small to be of benefit to the community. Staff of Economic Development, Culture and Tourism have discussed the acquisition of additional parkland with the developer, who has advised that while he does not wish to sell the entire 6 acres, he would be willing to sell 2 or 3 lots to enhance the size of the park. However nothing has been resolved to date.

Parks staff have advised the Maryvale Community currently exceeds the former Scarborough official plan guidelines for parkland, however, the area of the community bordered by Warden, Ellesmere and Highway 401 lacks a park.

Potential Cost of Acquisition

As noted earlier, the acquisition cost of 11.83 acres of priority 1 lands in the Dorset Community is $6,000,000.00. The acquisition cost of all or a portion of the priority 2 and 3 lands in the Maryvale Community would probably result in similar per acre costs.

Conclusion:

Not applicable.

Contact Name:

Roly Mayr, Facilites and Real Estate, 396-4930, Fax 396-4241, rmayr@city.scarborough.on.ca

Frank Kershaw/Michael Schreiner, Economic Development, Culture and Tourism (cs99054.wpd)

Margaret Rodrigues

Commissioner of Corporate Services