Sale of Spadina Property -
153 Everden Road
(Ward 28 - York Eglinton)
The Corporate Services Committee recommends the adoption of the following report
(April29, 1999) from the Commissioner of Corporate Services:
Purpose:
To recommend a process for the sale of 153 Everden Road.
Funding Sources, Financial Implications and Impact Statement:
Revenue in the minimum amount of $200,000.00, 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, will be realized from the sale of this property if the
recommendations in this report are approved.
Recommendations:
It is recommended that:
(1)the offer to purchase the property at 153 Everden Road submitted by Mr. Frank Dyer in
the amount of $193,000.00, not be accepted;
(2)the Commissioner of Corporate Services or the Executive Director of Facilities and Real
Estate be authorized to sign back and submit a counter-offer to Mr. Dyer at a purchase price of
$200,000.00, which counter-offer shall be irrevocable by the City until June 21, 1999, but
otherwise on the same terms and conditions as the offer made by Mr. Dyer including the 2year
option in favour of the City;
(3)if Mr. Dyer accepts the City's counter-offer, then it is further recommended that:
(a)the requirement embodied in Clause No. 14 of Report No. 27 of the former Metropolitan
Management Committee adopted on September 28, 1994, regarding the minimum required
deposit of 10 per cent of the purchase price be waived;
(b)authority be granted to direct a portion of the sale proceeds on closing to fund the
outstanding balance of Costing Unit No. OCA700CA2510;
(c)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 and he be further
authorized to amend the closing date to such earlier or later date as he considers reasonable;
(4)in the event Mr. Dyer does not accept the City's counter-offer the property be listed for
sale through the T.R.E.B. Multiple Listing Service subject to the existing tenancy; 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 153 Everden 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
procedures with respect to By-law No. 56-95 have been complied with, a utility canvass has
been completed and no easement is required.
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" be sold to
sitting tenants at market value determined as at the date of expression of their interest and
further, 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 May 20, 1997
appraisal estimating the fair market value of this property at $215,000.00, together with an
agreement of purchase and sale.
Comments and/or Discussion and/or Justification:
The tenant, Mr. Frank Dyer, rejected the City's appraised value, and requested the matter of
market value be referred to arbitration in conformance with Council's directive to have a third
party arbitrator attempt to bring the parties together. (Clause No. 4 of Report No. 9 of the
Corporate Services Committee adopted as amended by Council at the meeting held on July 8,
9 and 10, 1998). An arbitration hearing was held on January 5, 1999 at which time both
parties presented oral and written submissions in support of their respective estimates of
market value. It is noted that the City's value was based upon the most recent appraisal in the
amount of $215,000.00. In a written decision, the arbitrator, Ms. Patricia Dunn, concluded that
$200,000.00 to $210,000.00 more accurately represents fair market value of the property as of
May 20, 1997.
Subsequent to the arbitrator's decision, Mr. Dyer submitted an offer to purchase in the amount
of $193,000.00. A summary of the property and the terms and conditions in Mr. Dyer's offer
to purchase are as follows:
Property Address:153 Everden Road.
Legal Description:North 25 feet of Lot 67, Registered Plan 1103, City of Toronto
(formerly City of York).
Lot Size:7.62 metres (25 feet) fronting onto Everden Road,
40.23 metres (132 feet) depth.
Location:East side of Everden Road, south of Eglinton Avenue West.
Easement:Subject to an easement in favour of the City of Toronto for subway purposes
registered on Part 15, Reference Plan 64R-7314.
Improvements:Detached, brick 1.5-storey dwelling.
Occupancy Status:Tenanted.
Date Interest Expressed:May 20, 1997.
Amount of Offer:$193,000.00.
Deposit:$9,600.00 (certified cheque).
Purchaser:Frank George Dyer.
Closing Date:July 28, 1999.
Terms:Cash on closing, subject to the usual adjustments and registration of an option to
purchase.
This offer does not conform with the Council directive of July 29, 30 and 31, 1998, to offer
the property to the tenants on the basis of market value applicable at the date they expressed
written interest in purchasing, in this instance, May 20, 1997. It is therefore recommended that
Mr. Dyer's offer not be accepted and that the City submit a signed back counter-offer
increasing the purchase price to $200,000.00, but otherwise on the same terms and conditions
as the offer made by Mr. Dyer, which counter-offer shall be irrevocable until June 21, 1999. In
the event that Mr. Dyer does not accept this counter-offer within the time frame specified, the
property should then be listed for sale subject to the existing tenancy.
This is a proposed sale to an existing tenant and is based on market value as at May 20, 1997.
Council directed that comparable sales data be provided for property sales in the Spadina
corridor. Appendix "A" identifies three comparable sales located in the vicinity of the subject.
The Agreement with the Province of Ontario authorized by Clause No. 1 of Report No. 25 of
the former Metropolitan Corporate Administration Committee as adopted by Council on
December 4, 1996 provides that the Provinces share of the sale proceeds is to be based upon
current market value. An appraisal report with an effective date of October 7, 1998 estimates
the value of the property at $245,000.00.
Conclusion:
The sale of this property at $200,000.00 is considered fair and reasonable, reflecting market
value as at May 20, 1997 in accordance with Council directives.
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"
153 Everden Road - Comparable Sales
The following three addresses represent recent comparable sales of properties that are similar
to the residence which forms the subject matter of this report. These three properties consist of
brick 1.5 or 2-storey dwellings located in the vicinity of the subject property.
Approximate
AddressLot SizeSale PriceDate of Sale
123 Everden Road25 x 132'$252,000.00July 15, 1998
527 Rushton Road25' x 120'$217,500.00May 28, 1997
482 Atlas Avenue33' x 61'$178,000.00June 28, 1997
(A copy of the map attached to the foregoing report was forwarded to all Members of Council
with the May20, 1999, agenda of the Corporate Services Committee and a copy thereof is also
on file in the office of the City Clerk.)