Sale of Surplus Spadina Project Property

at 42 Gloucester Grove

(Ward 28 - York Eglinton)

The Administration Committee recommends the adoption of the following report (June2, 1999) from the Commissioner of Corporate Services:

Purpose:

To authorize the disposal of the property municipally known as 42 Gloucester Grove.

Funding Sources, Financial Implications and Impact Statement:

Revenue of $281,100.00, 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 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 $281,100.00 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. CA700CA2524;

(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 42 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 TheCorporate 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 the only requirement is set out below.

By its adoption of Clause No. 4 of Report No. 9 of The Corporate Services Committee of July8, 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 July 2, 1997 appraisal estimating the fair market value of this property at $225,000.00 together with an Agreement of Purchase and Sale. The tenant, Anne Marie Kopp, subsequently advised that she was not prepared to proceed with the purchase of the property but instead would prefer the financial incentive to vacate. Subsequently, Ms.Kopp vacated her rented premises (December 31, 1998) and was thereafter credited $3,688.44 as a financial incentive.

Comments and/or Discussion and/or Justification:

Pursuant to the February 12 and 13, 1997 authority, the property was listed with Forest Hill Real Estate Inc. on April 29, 1999 at an asking price of $239,900.00. As a result, the following offers were received:

PurchaserPurchase PriceDepositTerms

Godfrey Higgins and$281,100.00$14,500.00No Conditions

Clara Gavino(bank draft)

Edward D. Nagel and$276,500.00$20,000.00No Conditions

Hyla H.B. Levy

Michael, Zavie and$252,252.00$12,612.60No Conditions

Gail Yablonsky

Jennifer Glickman$250,393.00$13,000.00No Conditions

and Robert Glickman

The highest offer is recommended for acceptance:

Property Address:42 Gloucester Grove.

Legal Description:The easterly 32 feet of Lot 18, Registered Plan 2339, City of Toronto, designated as Part 24 on Expropriation Plan 7777, together with and subject to the rights-of-way and encroachments thereon as set out in Instrument No. YORK 537600.

Approximate Lot Size:9.45 metres (32 feet) fronting onto Gloucester Grove,

33.53 metres (110 feet) depth.

Easement:N/A.

Location:North side of Gloucester Grove, north of Ava Road, south of Eglinton Avenue West.

Improvements:Detached, 3 bedroom, brick and stone bungalow.

Occupancy Status:Vacant.

Recommended Sale Price:$281,100.00.

Deposit:$14,500.00 (bank draft).

Purchaser:Clara Gavino and Godfrey Higgins.

Closing Date:August 16, 1999.

Terms:Cash on closing, subject to the usual adjustments.

Listing Broker:Forest Hill Real Estate Inc.

Selling Broker:Sutton Group - Royal Realty Inc.

Commission:Four (4) per cent plus G.S.T., 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 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"

42 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, three bedroom dwellings.

Approximate

AddressLot SizeSale Price Date of Sale

111 Everden Road31' x 110'$267,850.00May 11, 1999

36 Gloucester Grove27.5' x 100'$293,700.00April 13, 1999

11 Watford Avenue27.5' x 101'$255,000.00February 11, 1999

(A copy of the maps attached to the foregoing report was forwarded to all Members of Council with the June 15, 1999, agenda of the Administration Committee and a copy thereof is also on file in the office of the City Clerk.)