January 12, 1999
To:Strategic Policies and Priorities Committee
From:Commissioner of Corporate Services
Subject:Yonge/Dundas Redevelopment Project-Settlement of Expropriation Claims
259 Victoria Street, Toronto
Owner: Salvation Army, Governing Council of Canada
(Ward 24-Downtown)
Purpose:
To authorize the settlement of all claims for compensation with the owner of 259 Victoria
Street resulting from the expropriation of this property as part of the Yonge/Dundas
Redevelopment Project.
Funding Sources, Financial Implications and Impact Statement:
Financing has previously been approved by Council and the $2,000,000.00 settlement
payment is available in Capital Account No. 216692.
Recommendations:
It is recommended that:
- a final settlement be approved with the Salvation Army, Governing Council of Canada, for
total compensation in the amount of $2,000,000.00 for its interest in the property located at
259 Victoria Street, in return for a full and final release; and
2.the appropriate City officials be authorized and directed to take the necessary actions to
give effect thereto.
Council Reference/Background/History:
259 Victoria Street is located on the east side of Victoria Street, south of Dundas Street East.
The property comprises 6,402 square feet and is improved with a two-storey, above grade,
commercial building containing a gross floor area of 8,148 square feet. The owner of the
property is the Salvation Army, Governing Council of Canada, which uses the building as a
mission, hostel, chapel, and administrative offices.
Subsequent to the favourable decision of the Ontario Municipal Board sitting as a joint board
under the Consolidated Hearings Act, an Expropriation Plan was registered on July 28, 1998
to expropriate 259 Victoria Street. An agreement was reached with the Salvation Army
whereby Notices of Expropriation and Notices of Possession and an Offer of Compensation
were not required to be served by the City.
At its meeting held on July 8, 9, and 10, 1998, Council approved, as amended, Clause 26 of
Report No. 10 of the Strategic Policies and Priorities Committee, and thereby authorized the
expropriation of the properties required for the Yonge/Dundas Redevelopment Project and
directing that final financial settlements with land owners be approved by the Strategic
Policies and Priorities Committee and Council.
Comments and/or Discussion and/or Justification:
Agreement has now been reached with the Salvation Army for an all inclusive amount of
$2,000,000.00 of which $1,296,000.00 is allocated to the market value of the land and
$704,000.00 is allocated in respect of other entitlements including legal costs, appraisal costs,
architectural fees, special difficulties in relocation, disturbance damages and interest.
The amount of $1,296,000.00 is, in the opinion of the City's real estate appraiser, consistent
with the market value of the property.
The Salvation Army's preferred alternative would have been to relocate the mission and
hostel within the community served by the existing facility. After searching and investigating
numerous properties within the vicinity, it was determined by the Salvation Army that a
replacement property could not be acquired at this time which would provide all of the
functional requirements of the existing facility. The sum of $704,000.00 for costs other than
land, including special difficulties in relocation, has been reviewed by the City's experts and
is considered fair and reasonable.
Although the settlement exceeds the budget estimate, City staff negotiations with the
successful proponent to acquire this block have resulted in offers greater than the proponent's
original offer and will exceed the $2,000,000.00 settlement amount. This increase in value is
as a result of the positive effect that the Yonge/Dundas Redevelopment Project has had on
property values in the vicinity.
Conclusion:
The settlement with the Salvation Army, owner of 259 Victoria Street, is considered to be fair
and reasonable and should be approved.
Contact Name and Telephone Number:
Doug Wong, Telephone: 392-1858, Fax: 392-1880, dwong@toronto.ca
(spp99010.wpd)
Margaret Rodrigues
Commissioner of Corporate Services
