October 5, 1999

    To:Policy and Finance Committee

From:City Clerk

Subject:Redevelopment of Car Park 63 Located at 111 and 117 Richmond Street East

 The Administration Committee on October 5, 1999, referred the report (September 28, 1999) from the President, Toronto Parking Authority, entitled "Redevelopment of Car Park 63 Located at 111 and 117 Richmond Street East", to the Policy and Finance Committee for consideration.

Background:

The Administration Committee on October 5, 1999, had before it a report (September 28, 1999) from the President, Toronto Parking Authority, recommending that:

(1)City Council approve an agreement of purchase and sale with Intracorp Developments (French Quarter II) Ltd. for the sale of 111 and 117 Richmond Street East (Municipal Carpark No. 63) and the acquisition of strata title to a portion of the proposed development containing a 12 space at-grade parking facility built to the Parking Authority's specifications. The total value of the transaction is $440,000, which includes a cash payment of $300,000 and the construction and conveyance of the parking spaces which is valued at approximately $140,000;

(2)upon acquisition, that the lands to be acquired be designated for municipal parking purposes to be operated by the Toronto Parking Authority; and

(3)the appropriate City officials be authorized and directed to take whatever action necessary to give effect to the foregoing.

City Clerk

P. A. Morris/in

Item No. 8

 c:Chief Financial Officer and Treasurer

President, Toronto Parking Authority

(Report dated September 28, 1999, from the President,

Toronto Parking Authority, entitled "Redevelopment of Car Park 63

Located at 111 and 117 Richmond Street East

(Ward 24 - Downtown)

Purpose:

To obtain Council authority for a joint venture with Intracorp Developments (French Quarter II) Ltd., involving the sale of the City-owned lands located on the south west corner of Richmond Street East and Jarvis Street and the acquisition of 12 public parking spaces located at grade, within the proposed development to be built on the site.

Funding Sources, Financial Implications and Impact Statement:

No funding is required for this project. Intracorp Developments (French Quarter II) Ltd., will purchase the City-owned lands presently operated by the Authority as a surface parking lot together with associated air rights, and construct and convey to the City 12 public parking spaces at-grade within the proposed development.

Recommendations:

It is recommended that:

(1)City Council approve an agreement of purchase and sale with Intracorp Developments (French Quarter II) Ltd. for the sale of 111 and 117 Richmond Street East (Municipal Carpark No. 63) and the acquisition of strata title to a portion of the proposed development containing a 12 space at-grade parking facility built to the Parking Authority's specifications. The total value of the transaction is $440,000, which includes a cash payment of $300,000 and the construction and conveyance of the parking spaces which is valued at approximately $140,000;

(2)upon acquisition, that the lands to be acquired be designated for municipal parking purposes to be operated by the Toronto Parking Authority; and

(3)the appropriate City officials be authorized and directed to take whatever action necessary to give effect to the foregoing.

Background History:

The Toronto Parking Authority has recently concluded negotiations with Intracorp Developments (French Quarter II) Ltd. to purchase 111 and 117 Richmond St. East (Municipal Carpark No. 63) which is located at the south west corner of Richmond Street and Jarvis Street. Presently the Parking Authority operates an irregular wedge shaped piece of property which is divided into two separate parcels, comprising 17 parking spaces in total, of which one portion having 5 spaces is partially located on the road allowance.

On lands directly to the west of the above discussed parcels, until recently the Parking Authority operated, under a management agreement with the owner, the Richmond Group, an additional 20 parking spaces. The owner of these lands and Intracorp recently approached the Parking Authority with a proposal whereby the Carpark 63 lands excluding the road allowance portion would be purchased by Intracorp so that both properties could be developed as a 75 unit, 11 storey residential condominium project with street related retail on the ground floor. If this project proceeds, the 17 existing public parking spaces would be eliminated and be replaced with 12 public parking spaces located at-grade within the proposed development, to be operated by the Toronto Parking Authority. Title to the portion of the development containing the public parking spaces would be conveyed to the City.

City Council has approved a report from the Acting Commissioner of Corporate Services declaring as surplus the real property owned by the City of Toronto, municipally known as 111 and 117 Richmond Street East.

Comments and/or Discussion and/or Justification:

The following is a summary of the issues related to the recommended transaction:

Site Location and Particulars:

Both 111 and 117 Richmond Street East are operated as one surface car park separated by a public laneway. These sites are located on the south west corner of Richmond Street East and Jarvis Street (see attached plan).

The new facility would be an enclosed deck at grade and would be constructed to meet Parking Authority standards. The entrance would be located further from the intersection of Richmond Street and Jarvis Street making it easier and safer to enter and exit the facility than at present although the site lines will be somewhat restricted. The site for the proposed development is very restrictive in size and no more than 12 public parking spaces can be accommodated.

Parking Supply and Demand Analysis:

The existing 17 space car park completely fills on a large majority of the days. A number of privately owned surface lots have been or are slated for redevelopment in this neighborhood. It is likely that there is or will be a parking shortfall. Although this transaction will result in a further reduction in available parking spaces, the proceeds from the sale of this property can be used to assist in acquiring another site on which additional parking spaces will be accommodated.

Financial Analysis:

A financial analysis of the proposed parking facility was undertaken. This facility will show a small loss annually. However, the developer is paying $300,000 to the Authority which more than offsets the net profit reduction. In addition, the excess proceeds can be used to acquire other properties in the area where we believe that a future parking shortfall will be identified.

Appraisal:

The Parking Authority retained the Morassutti Group, Real Estate and Financial Advisory Services, to appraise the property. The value of the proposed transaction is within the range of appraised value for the property.

Conclusions:

By pursuing this transaction, the Toronto Parking Authority will retain a more permanent presence in the area through the retention of 12 public parking spaces in an improved facility. From a financial perspective, this transaction will yield a positive financial return and when the specific future parking shortfall is determined, the proceeds from the land sale can be utilized to purchase an additional property.

Contact Names:

Maurice J. Anderson

President

Telephone:(416)393-7276

Facsimile:(416)393-7352

Lorne Persiko

Director, Real Estate and Development

Telephone:(416)393-7294

Facsimile:(416)393-7352

(A copy of the site plan attached to the foregoing report was forwarded to all Members of Council with the October 5, 1999, agenda of the Administration Committee and a copy thereof is also on file in the office of the City Clerk.)