June 2, 1999

To:Scarborough Community Council

From:Commissioner of Corporate Services

Subject:Sale of Surplus land at 3001 McCowan Road,

South of McNicoll Avenue, Former City of Scarborough

(Ward 18 - Scarborough Malvern)

Purpose:

To authorize the disposal of the City surplus property known as 3001 McCowan Road.

Funding:

Revenue in the amount of $150,100.00, less broker's commission of 4 per cent, plus GST and any expenses incurred by the City incidental to the closing of the transaction will be received.

Recommendations:

It is recommended that:

(1)the Commissioner of Corporate Services or the Executive Director of Facilities and Real Estate be authorized to accept the offer from Stephen Young in the amount of $150,100.00 to purchase the vacant land located at 3001 McCowan Road, described as Part of Lot 22, Concession 4, City of Toronto (Formerly City of Scarborough), designated as Part 2 on Plan 64R-11539;

(2)the City Solicitor be authorized to complete this transaction according to the terms and conditions of the Agreement of Purchase and Sale; and

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

History:

The subject property was acquired through a negotiated acquisition as part of a larger parcel for storm water management purposes and is no longer required for that purpose. The former City of Scarborough Council declared 3001 McCowan Road measuring approximately 132 feet by 135 feet as surplus and directed staff to dispose of same (Report No. 8, Clause 8 of the Administrative Committee adopted by Council on May 5, 1996).

Originally, attempts to dispose of the property were unsuccessful, partly because of the zoning designation "Agricultural Uses" and partly because of the lack of municipal services; sanitary sewers are available some 800 feet to the south at the intersection of McCowan Road and Big Red Avenue. The Official Plan designation of the property is "Community Facilities", limited to uses such as churches, outdoor sport facilities, garden centre, veterinarian clinic without outside kennels and a waste management information centre.

Comments:

The property was listed on the Toronto Real Estate Board's Multiple Listing Services with Re/Max Goldenway Realty Inc. in February 1999 at an asking price of $149,000.00. The information package provided to all prospective purchasers indicated that offers would be received by the listing broker until April 26, 1999. Purchasers were also advised to exercise due diligence in satisfying themselves as to the condition of the property including zoning, and other issues prior to submitting an offer. Three (3) offers to purchase were submitted and are summarized as follows:

Prospective Purchaser

Stephen Yeung

Sudhir Sadana

Surinderpal Singh

Price

Offered

$150,100.00

$115,000.00

$89,500.00

Deposit

$15,010.00

$10,000.00

$8,950.00

Condition

Balance to be paid on closing

Balance to be paid on closing

Balance to be paid on closing.

Staff has reviewed the above offers and recommend the highest offer be accepted as summarized below:

Property Address:3001 McCowan Road

Legal Description:Part of Lot 22, Concession 4, referred to as Part 2 on Plan 64R-11539, City of Toronto (formerly City of Scarborough)

Approximate Lot Size:40.234 metres (132 feet) fronting onto McCowan Road

41.148 metres (135 feet) depth

Location:East side of McCowan Road, south of McNicoll Avenue,

Improvements:None

Occupancy Status:Vacant

Recommended Sale Price:$150,100.00

Deposit:$15,010.00 (held by the listing agent in trust pending completion of the transaction)

Purchaser:Stephen Young

Irrevocable Date:July 23, 1999

Closing Date:August 23, 1999

Terms:Cash on closing, subject to the usual adjustments

Listing Broker:Re/Max Goldenway Realty Inc.

Selling Broker:Tradeworld Realty Inc.

Commission:Four (4) per cent, plus G.S.T., payable on closing of the transaction.

It is noted that at the request of the local councillor (Councillor Balkissoon) and with the concurrence of the Commissioner of Corporate Services and CAO this report on the sale of 3001 McCowan Road is being directed to Scarborough Community Council.

Conclusion:

Completion of this transaction as detailed above is considered fair and reasonable and reflective of market value.

Contact Name:

Neubert Li, Real Estate Administrator, (416) 396-7422, Fax No. (416) 396-4241, E-mail Address: li@city.scarborough.on.ca (scc99071.wpd)

Margaret Rodrigues

Commissioner of Corporate Services