April 6, 1999
To:Corporate Services Committee
From:Commissioner of Corporate Services
Subject:Sale of Surplus Spadina Project Property at
205 Ava Road (Ward 28 - York Eglinton)
Purpose:
To recommend a process for the sale of 205 Ava Road.
Funding Sources, Financial Implications and Impact Statement:
Revenue in the minimum amount of $330,000.00, less closing costs and the usual adjustments, subject to the revenue
sharing agreement with the Province pursuant to Clause No. 1 of Report No. 25 of the former Metropolitan Corporate
Administration Committee, approved on December 4, 1996, will be realized from the sale of this property if the
recommendations in this report are approved.
Recommendations:
It is recommended that:
(1)the offer to purchase the property at 205 Ava Road submitted by Ms. Francine-Deena Cooper in the amount of
$300,000.00, not be accepted;
(2)authority be granted for either of the Commissioner of Corporate Services or the Executive Director of Facilities and
Real Estate to sign back and submit a counter-offer to Ms. Cooper at a sale price of $330,000.00, which counter-offer shall
be irrevocable by the City until May 21, 1999 but otherwise on the same terms and conditions as the offer made by Ms.
Cooper save and except that the condition related to obtaining financing shall be struck out;
(3)if Ms. Cooper accepts the City's counter-offer, then it is further recommended that:
(a)the requirement embodied in Clause No. 14 of Report No. 27 of the former Metropolitan Management Committee
adopted on September 28, 1994 regarding the minimum required deposit of 10 per cent of the purchase price, be waived;
(b)authority be granted to direct a portion of the sale proceeds on closing to fund the outstanding balance of Costing Unit
No. OCA700CA2470;
(c)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 and he be further authorized to amend the closing date to such earlier or
later date as he considers reasonable;
(4)in the event Ms. Cooper does not accept the City's counter-offer, the property be listed for sale through the T.R.E.B.
Multiple Listing Service subject to the existing tenancy; 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 205 Ava 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 no
easement is required.
By its adoption of Clause No. 24 of Report No. 23 of the Corporate Services Committee on October 8 and 9, 1997,
Metropolitan Council authorized the sale of this property to the then existing tenant (since July 30, 1996), Francine-Deena
Cooper, for $290,000.00, conditional for 7 banking days for the arrangement of satisfactory mortgage financing. While
several extensions to this 7 day period were granted, on November 6, 1997, Ms. Cooper's solicitor advised that she
considered the agreement to be at an end as she could not obtain satisfactory first mortgage financing to complete the
transaction. On December 29, 1997, Ms. Cooper executed a full Release and her deposit monies were returned. The
Release included within its scope any option or entitlement she may theretofore have had or at the date thereof may have
had as a tenant to purchase the property from the Metropolitan Corporation.
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 the properties listed in Schedule "A" to the Clause be sold to sitting tenants at market value
determined as at the date of their earlier expression of interest (i.e. in consideration of perceived delays in reaching
agreement on the value of the various properties). In light of the fact that agreement had already been reached with Ms.
Cooper in 1997, and it was she who subsequently chose not to proceed with the purchase of the property, this property was
not considered for inclusion in Schedule A. On August 10, 1998, Ms. Cooper once again indicated that she was interested
in pursuing the purchase of the property. Accordingly, in accordance with Council directive to offer properties to tenants on
the basis of market value applicable at the time of current negotiations, the tenant was provided with the August 10, 1998
appraisal estimating the fair market value of this property at $345,000.00, together with the approved form of Offer
document.
Comments and/or Discussion and/or Justification:
The tenant, Ms. Francine-Deena Cooper, rejected the City's appraised value, and requested that 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 of Report No. 9 of the 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 February 9, 1999, and in a written decision, the
arbitrator, Ms. Patricia Dunn stated that $330,000.00 would be the reasonable market value of the property.
Subsequent to the arbitrator's decision, Ms. Cooper submitted an offer to purchase in the amount of $300,000.00. A
summary of the property and the terms and conditions in Ms. Cooper's offer to purchase are as follows:
Property Address:205 Ava Road
Legal Description:Part of Lots 951 and 952, Registered Plan 1870, City of Toronto (formerly City of York), designated
as Part 3 on Reference Plan No. 64R-15564
Lot Size:13.11 metres (43 feet) fronting onto Ava Road
26.36 metres (86.5 feet) depth
Location:South side of Ava Road, east of Everden Road
Improvements:Detached, brick 2-storey dwelling
Occupancy Status:Tenanted
Date Interest Expressed:August 10, 1998
Amount of Offer:$300,000.00, conditional for 3 banking days for the arrangement of satisfactory mortgage financing
Deposit:$15,000.00 (bank draft)
Purchaser:Francine-Deena Cooper
Closing Date:June 25, 1999
Terms:Cash on closing, subject to the usual adjustments and registration of an option to purchase.
This offer does not conform with the Council directive of July 29, 30 and 31, 1998 to offer the property to the tenants on
the basis of market value applicable at the time of current negotiation. It is therefore recommended that Ms. Cooper's offer
not be accepted and that the City submit a signed back counter-offer in the amount of $330,000.00, but otherwise on the
same terms and conditions as the offer made by Ms. Cooper except for the financing condition which would not form part
of the City's counter-offer; which counter-offer shall be irrevocable until May 21, 1999. In the event that Ms. Cooper does
not accept this counter-offer within the time frame specified, the property should then be listed for sale subject to the
existing tenancy.
This is a proposed sale to an existing tenant and is based on market value as at August 10, 1998. 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.
Conclusion:
The sale of this property at $330,000.00 is considered fair and reasonable, reflecting market value as at August 10, 1998 in
accordance with Council directives.
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 (cs99058. wpd)
Margaret Rodrigues
Commissioner of Corporate Services
SAB/vp
Appendix "A"
205 Ava Road - Comparable Sales
The following three addresses represent recent comparable sales of properties that are similar to the residence which forms
the subject matter of this report. These three properties consist of brick 2-storey dwellings located in the vicinity of the
subject property. The subject property backs on to a park/ravine.
ApproximateBacks on to
AddressLot SizePark/RavineSale PriceDate of Sale
171 Strathearn Road30 x 136No$342,100.00June 4, 1998
183 Glen Cedar30 x 105No$335,018.00August 14, 1998
623 Rushton Road30 x 179.78Yes$376,000.00July 30, 1998
