Sale of Surplus Spadina Project Property at

22 Gloucester Grove (Ward 28 - York Eglinton)

The Corporate Services Committee recommends the adoption of the following report (March12, 1999) from the Commissioner of Corporate Services:

Purpose:

To authorize the disposal of the property municipally known as 22 Gloucester Grove.

Funding Sources, Financial Implications and Impact Statement:

Revenue of $195,000.00, less closing costs and the usual adjustments, subject to the revenue sharing agreement with the Province pursuant to Clause No. 1 of Report No. 25 of the former Metropolitan Corporate Administration Committee, approved on December 4, 1996.

Recommendations:

It is recommended, subject to Provincial concurrence, that:

(1)the Commissioner of Corporate Services or the Executive Director of Facilities and Real Estate be authorized to accept the highest offer in the amount of $195,000.00 as detailed herein;

(2)Council, pursuant to Clause No. 14 of Report No. 22 of the former Metropolitan Management Committee adopted on September 28, 1994, waive the minimum required deposit of 10 per cent. 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. CP300J56169;

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

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

Council Reference/Background/History:

The Province of Ontario is the owner of 22 Gloucester Grove, 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 procedures 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 offered to such tenants at market value determined as of the date of expression of their interest and that such sale be subject to an option to repurchase at that purchase price (unadjusted) for a period of two years. Accordingly, the tenant was provided with our March 3, 1997 appraisal estimating the fair market value of this property at $180,000.00 together with an Agreement of Purchase and Sale. The tenant, Sandor Kerekes, subsequently advised that he was not prepared to proceed with the purchase of the property but instead would prefer the financial incentive to vacate. Subsequently, Mr. Kerekes vacated his rented premises (October 31, 1998) and was thereafter credited $2,800.86 as a financial incentive.

Comments and/or Discussion and/or Justification:

Pursuant to the February 12 and 13, 1997 and July 8, 9 and 10, 1998 authorities, the property was listed with Forest Hill Real Estate Ltd. on February 12, 1999 at an asking price of $179,900.00. As a result, the following offers were received:

The highest offer is recommended for acceptance:

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

Contact Name:

Michelle DeVey, Valuator-Negotiator, Real Estate Services, (416)392-8160, Fax No.:(416)392-4828, E-Mail Address: michelle_devey@metrodesk.metrotor.on.ca.

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Appendix "A"

22 Gloucester Grove - Comparable Sales

The following three addresses represent comparable sales of properties that are quite similar to the residence which forms the subject matter of this report. These three properties consist of detached, two bedroom bungalows.

(A copy of the map attached to the foregoing report was forwarded to all Members of Council with the March 25, 1999, agenda of the Corporate Services Committee, and a copy thereof is also on file in the office of the City Clerk.)