Sale of Surplus Spadina Property at 38 Heathdale Road

Ward 28, York-Eglinton

Acting Commissioner of Corporate Services

(November 16, 1999)

Purpose:

To authorize the disposal of the property municipally known as 38 Heathdale Road.

Financial Implications:

Revenue of $526,050.00 less closing costs and the usual adjustments, subject to the revenue sharing agreement with the Province pursuant to the former Metropolitan Corporate Administration Committee Report No. 25, Clause No. 1, approved on December 4, 1996.

Recommendations:

It is recommended that:

1. the Acting Commissioner of Corporate Services or the Executive Director of Facilities and Real Estate be authorized to accept the highest offer in the amount of $526,050.00 as detailed herein;

2. Council, pursuant to Clause No. 14, Report No. 36 of the former Metropolitan Management Committee adopted on September 28, 1994, waive the minimum required deposit of 10 percent. of the purchase price;

3. authority be granted to direct a portion of the sale proceeds on closing to fund the outstanding balance of Costing Unit No. CP300J56187;

4. the City Solicitor be authorized and directed to take the appropriate action, in conjunction with the Province of Ontario Officials and/or agents, to complete this transaction on behalf of the City of Toronto and be further authorized to amend the closing date to such earlier or later date as considered reasonable; and

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

Background:

The Province of Ontario is the owner of 38 Heathdale 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 processes with respect to By-law No. 56-95 have been complied with, a utility canvass has been completed and no requirements have been identified.

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 properties listed in Schedule "A", including the subject property, be sold to Schedule "A" tenants at market value determined as of the date of expression of their interest and that such sale be subject to an option to purchase at that purchase price (unadjusted). Accordingly, the tenant Ellen MacDonald was advised as to the estimated fair market value at $410,000.00 effective February 12, 1997. Ms. MacDonald subsequently advised that she was not prepared to proceed with the purchase of this property but instead would prefer the financial incentive to vacate. Subsequently, Mrs. MacDonald vacated her rented premises on September 20, 1999 and was thereafter credited $6,775.47 as a financial incentive.

Comments:

Pursuant to the February 12 and 13, 1997 and July 8, 9 and 10, 1998 authorities, the property was listed with Prudential Sadie Moranis Realty on September 24, 1999 at an asking price of $525,000.00. As a result the following offers were received:

Purchaser: Purchase Price: Deposit: Terms:

Donald James Rooke $526,000.00 $27,000.00 no conditions

(bank draft)

Rory Jay Hacker and

Ioulia Roudina $525,000.00 $26,250.00 no conditions

(certified cheque)

Paul Weinberg $490,000.00 $24,000.00 no conditions

(bank draft)

The highest offer is recommended for acceptance:

Property Address: 38 Heathdale Road

Legal Description: Part of Parcel 1-2, Section MX-6, being Lot 174, Plan M-367, designated as Lot 14, Plan MX-75, City of Toronto (formerly City of York)

Approximate Lot Size: 15.24 metres (50 feet) fronting onto Heathdale Road, 32 metres (130 feet) depth

Location: North side of Heathdale Road, east of Glencedar Drive

Improvements: Detached, two-storey brick dwelling

Occupancy Status: Vacant

Recommended Sale Price: $526,050.00

Deposit: $27,000.00 (bank draft)

Purchaser: Donald James Rooke

Closing Date: March 30, 2000

Terms: Cash on closing, less the usual adjustments

Listing Broker: Prudential Sadie Moranis Realty

Selling Broker: Bosley Real Estate

Commission: Four (4) percent, plus GST, payable on closing of the transaction

By the adoption of Clause No. 5 of Report No. 9 of the Corporate Services Committee, Council at the meeting held on July 8, 9 and 10, 1998 directed that comparable sales data must be provided in future reports of property sales. Appendix "A" identifies three comparable properties located in the vicinity that have recently sold. While comparable sales information can be included as part of the staff report, this property was listed for sale on the TREB multiple listing service and the forces of the market place have determined the true market value.

Conclusion:

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

Contact Name:

Sheryl A. Badin, Telephone No.: 392-8142,Fax No.: 392-1880,

E-mail adress: Sheryl_Badin@metrodesk.metrotor.on.ca

APPENDIX "A"

38 Heathdale Road - Comparable Sales Data

The following three addresses represent comparables sales of properties that are quite similar to the residence which forms the subject matter of this report. These properties 2-storey brick dwellings.

Address: Lot Size: Sale Price: Date of Sale Ravine

50 Heathdale Road 50 x 135 $600,000.00 April 1999 Yes

11 Heathdale Road 50 x 100 $665,000.00 October 1999 No

37 Heathdale Road 50 x 120 $531,000.00 May 1999 No