Sale of City Surplus Land Known as

176 Danforth Avenue, Part of Lot 7, Plan 1496

(Scarborough Bluffs - Ward 13)

The Corporate Services Committee recommends the adoption of the following report (December18, 1998) from the Commissioner of Corporate Services:

Purpose:

To inform City Council of an offer to purchase the above City surplus land and recommend that the offer be accepted.

Financial Implications:

The City will realize $65,000.00 from the sale, less broker's commission of $2,600.00 plus GST and any expenses incurred by the City incidental to the closing of the transaction.

Recommendations:

It is recommended that:

(1)the City accept from Demetre Grammaticos, in trust, an offer to purchase the surplus land at 176 Danforth Road, described as part of Lot 7, Plan 1496 and referred to as Part 1 on Plan 64R-15703, at a price of $65,000.00;

(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 the necessary action to give effect thereto.

Background:

The City owns a parcel of vacant land measuring 50' X 91' located on the north-west side of Danforth Road just east of Warden Avenue. The then Township of Scarborough acquired the property via a tax certificate in 1940. The property is shown as Part 1 on Plan 64R-15703. The property comprises an area of 4550 square feet and is zoned Single Family Residential.

With the approval of Item 22, Report 16 of the Administrative Committee, the former City of Scarborough Council on September 30, 1997, declared the City-owned land surplus and directed the public be notified of the intent to dispose of the property by publication of the said report in the Council agenda.

The property was offered for sale by public tender subject to a reserve bid of $75,000.00 in November 1997. No bids were received. A "for sale" sign was put on the site thereafter and very few inquiries were received.

The property was then listed on the Toronto Real Estate Board's Multiple Listing Service with Esbin Realty in September 1998 at an asking price of $79,900.00. There were few enquiries and the asking price was reduced to $75,000.00 on October 16, 1998. An offer from Demetre Grammaticos in trust, in the amount of $65,000.00 was received on November 17, 1998 and is recommended for acceptance.

Comments:

The terms of the offer from Demetre Grammaticos, in trust, are summarized as follows:

Purchase Price:$65,000.00.

Payment Method:Deposit of $10,000.00 (certified cheque)submitted with offer and balance to be paid on closing date.

Irrevocable Date:February 26, 1999.

Closing Date:March 15, 1999.

Conditions:That upon acceptance of the Offer, Purchaser, at his own expense, will have the right to apply for a severance and a variance from the existing by-law to create a second lot. It is noted the closing of the transaction is not conditional on the Purchaser being successful with the application.

Conclusion:

An appraisal in October 1998 estimated the market value of the property in the range of $60,000.00 to $75,000.00. Considering the property has been exposed on the market for a year and that the offer price is within the market value range, its acceptance is recommended.

Contact Name:

Neubert Li, Phone (416) 396-7422, Fax (416) 396-4241, e-mail address: li@city.scarborough.on.ca.

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(A copy of the map attached to the foregoing report was forwarded to all Members of Council with the January 18, 1999, agenda of the Corporate Services Committee, and a copy thereof is also on file in the office of the City Clerk.)