June 23, 1999.

To: Etobicoke Community Council

From: John W. Thomas, P.Eng., MBA, Director, Transportation Services - District 2

Subject: Monarch Development Limited

Application For Encroachment Agreements

10 and 12 Humber Boulevard

Kingsway - Humber

Purpose:

To authorize two Major Encroachment Agreements for landscaping proposed in the Humber Boulevard and Bloor Street West rights-of-way at 10 & 12 Humber Boulevard (Attachment No. 1), and to authorize a one-time payment equal to 5 years' annual rental fees in lieu of annual rental fees.

Financial Implications:

The Etobicoke Road Allowance Encroachment Policy requires that the applicant pay a $700.00administrative fee for each of the Major Encroachment Agreements. Five hundred dollars of each fee is refundable, should Council decline to approve the application. Additionally, the Policy requires an annual rental fee of $10.00 per square metre of public land area occupied for as long as the encroachment remains. The annual rental fee for 10 Humber Boulevard is $461.50, and for 12HumberBoulevard the annual rental fee is $1,716.20. The combined annual rental fees would amount to $10,889.00(i.e.,($461.50+$1,1716.20)X 5) for a 5 year period.

Recommendations:

It is recommended that:

1)Etobicoke Community Council approve the applications for Major Encroachment Agreements;

2)the City Solicitor be instructed to prepare the Agreements; and

3)the applicant be required to submit a one-time $10,889.00 payment-in-lieu of annual rental fees, and a one-time $1,400.00 application fee that represents the City's administrative costs.

History:

During the site plan approval process to permit construction of two residential condominium buildings at 10 and12 Humber Boulevard, the applicant submitted a landscape plan that was approved by the Staff Advisory Committee on Development Control. As a condition of site plan approval, Monarch Construction Limited is required to install 46.15 square metres of vegetation on the public right-of-way at the north-west corner of Bloor Street West and Humber Boulevard, adjacent 10HumberBoulevard. This is necessary to screen a two metre high fence at a highly visible entrance to Etobicoke, and is illustrated in the approved plan (Attachment No. 2).

The applicant also proposes to install 171.62 square metres of landscaping on the Humber Boulevard right-of-way adjacent 12 Humber Boulevard. This encroachment, which includes vegetation, a low masonry wall and paving stones, is also described in the approved landscape plan (Attachment No.3), but was not required by the Site Plan Agreement.

Discussion:

The encroachments are subject to the terms of the Etobicoke Road Allowance Encroachment Policy. The property owner is required to maintain the encroachments in good repair, and to insure the City of Toronto against liability claims. As required by the Policy, all abutting property owners located within sixty (60) metres of the site have been notified of the application and given an opportunity to appear in deputation.

After completion of this development, ownership of the property will be transferred from the builder to the condominium corporations, who then become responsible for the payment of annual rental fees. When payment of annual rental fees goes into default with non-condominium properties, fees can be added to the tax roll. Given that condominium corporations do not pay property taxes, collection of the rental fees via the tax roll would require annual distribution of the charges among all individual unit owners' tax accounts. This is a labour intensive procedure that significantly diminishes the net value of the revenue, and will not be popular among the condominium owners. Assuming equal distribution of rental fees per unit, each of the 57 unit owners at 10HumberBoulevard, for example, would be invoiced only $8.10 per year (e.g.,$461.50peryear/57 units). Also the City's choice of method for distribution; i.e.,equal distribution among unit owners vs. distribution based on unit size may be questioned. This introduces a potential for legal action against the City.

Threatening removal of the encroachments to enforce rental fee payment, in the case of 10 Humber Boulevard, would be contrary to the City's objectives, since we required that the applicant install the landscaping as a condition to approval.

Conclusions:

These properties are located in The Kingsway area, and draws significant attention from outside Etobicoke. It is in proximity to such historical landmarks as The Old Mill, and the Humber River Valley. The proposed landscape encroachments improve the appearance of the boulevard area and at no cost to the City of Toronto. Requiring a one-time payment-in-lieu of annual rental fees alleviates rental fee collection difficulties, streamlines the administration of the Encroachment Agreements, and maximizes the net value of the revenue received.

Contact Name:

Douglas Robertson, Supervisor, Right-of-Way Management - District 2.

(416)394-8360; Fax 394-8942.

John W. Thomas, P.Eng., MBA

Director, Transportation Services - District 2

Attachments

cc: C-252(a)