Property Acquisition Request from LACAC

W.J. Morrish Store

Ward 16 (Scarborough-Highland Creek)

The Policy and Finance Committee recommends the adoption of the recommendations of the Policy and Finance Committee embodied in the confidential communication (July 20, 1999) from the City Clerk, respecting the property Acquisition request from L.A.C.A.C. regarding the W. J. Morrish Store, which was forwarded to Members of Council under confidential cover.

The Policy and Finance Committee submits the following communication (July 15, 1999) from the City Clerk:

City Council, at its meeting held on July 6, 7 and 8, 1999, had before it Clause No. 2 of Report No. 7 of The Corporate Services Committee, headed "Property Acquisition Request from L.A.C.A.C., W. J. Morrish Store, North-West Corner of Meadowvale Road and Kingston Road (Ward 16 - Scarborough Highland Creek)".

Council directed that the aforementioned Clause be struck out and referred to the Policy and Finance Committee for further consideration, and further that:

(1)the Chief Financial Officer and Treasurer submit a report to the Policy and Finance Committee, for consideration therewith, on the funding options for this acquisition; and

(2)the Scarborough Local Architectural Conservation Advisory Committee present a business plan to the Policy and Finance Committee for its consideration when it deals with this matter.

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(Clause embodied in Report No. 7 of the

Corporate Services Committee, headed

"Property Acquisition Request from L.A.C.A.C.

W. J. Morrish Store, North-West Corner of

Meadowvale Road and Kingston Road

(Ward 16 - Scarborough Highland Creek)"

which was before the Council of the City of

Toronto at its meeting held on July 6, 7 and 8, 1999)

(City Council on July 6, 7 and 8, 1999, struck out and referred this Clause to the Policy and Finance Committee for further consideration, and further that:

(1)the Chief Financial Officer and Treasurer submit a report to the Policy and Finance Committee, for consideration therewith, on the funding options for this acquisition; and

(2)the Scarborough Local Architectural Conservation Advisory Committee present a business plan to the Policy and Finance Committee for its consideration when it deals with this matter.)

(City Council on June 9, 10 and 11, 1999, deferred consideration of this Clause to the next regular meeting of City Council to be held on July 6, 1999.)

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(Clause No. 5 of Report No. 6 of The Corporate Services Committee)

The Corporate Services Committee recommends the adoption of the Recommendations of the Corporate Services Committee embodied in the confidential communication (May 21, 1999) from the City Clerk which was forwarded to Members of Council under confidential cover, such communication to remain confidential in accordance with the Municipal Act.

The Corporate Services Committee reports, for the information of Council, having requested the Budget Committee to submit a report directly to Council respecting the foregoing matter.

The Corporate Services Committee submits the following communication (March 2, 1999) from the City Clerk:

Recommendation:

The Scarborough Community Council, at its meeting held on February 17, 1999, referred the request by the Scarborough Local Architectural Conservation Advisory Committee (L.A.C.A.C.) to the Corporate Services Committee for its consideration; and requested that the Commissioner of Corporate Services be directed to submit a further report thereon to the Committee.

Background:

The Scarborough Community Council had before it a report (January 14, 1999) from the Commissioner of Corporate Services, advising that the Local Architectural Conservation Advisory Committee has requested that the City consider the acquisition and preservation of the W. J. Morrish Store because of its historic significance, concluding that no further action should be taken at this time due to the considerable difference of opinion as to the value of this property between the owner and Real Estate Division staff, and recommending that this report be received for information.

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The following persons appeared before the Scarborough Community Council in connection with the foregoing matter:

-Mr. Richard Schofield, Chairman, Scarborough L.A.C.A.C.; and

-Mr. William A. Dempsey, Honorary Secretary, Centennial Community and Recreation Association.

The Scarborough Community Council also received a communication in support of the potential acquisition from Mr. Clancy Delbarre, President, Highland Creek Community Association, a copy of which is appended hereto.

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(Report dated January 14, 1999, addressed to

the Scarborough Community Council from

the Commissioner of Corporate Services.)

Purpose:

The Local Architectural Conservation Advisory Committee has requested the City consider the acquisition and preservation of the W.J. Morrish store because of its historic significance.

Financial Implications:

Not required at this time.

Recommendations:

It is recommended that this report be received for the information of Scarborough Community Council.

Background:

At the November 10, 1998 meeting of the Local Architectural Conservation Advisory Committee, (LACAC), the Committee directed the President of LACAC to "seek Council's support in asking staff to develop an acquisition strategy in order to preserve this historic site." A copy of the President's letter is attached.

The W.J. Morrish store is located at the northwest corner of Meadowvale Road and Kingston Road in the eastern part of the former City of Scarborough. The main portion of the building was constructed about 1891, with an addition built about 1906. The building contains a hand-operated elevator of historic significance. The building is designated under the Ontario Heritage Act.

The building was operated as a retail store until approximately ten years ago, but has been vacant since. Although the building is structurally sound, considerable renovations and remodelling are required to make it suitable for any use today. In addition, the building needs to be connected to storm and sanitary sewers, which have been made available since the building was vacated. The building is not heated during the winter, and its condition is deteriorating. Vandalism is also a constant concern.

The property owner has listed the property for sale on several occasions over the last few years, and has had discussions with a number of prospective purchasers. Some of these have indicated a desire to renovate the structure and possibly convert it to another purpose. Uses as a residence, bed and breakfast, restaurant, or retail store have been suggested.

Recognizing the historic importance of this building, in 1996 the former City of Scarborough Council directed staff to discuss the acquisition of the property with the owner. For more than two years, staff discussed a variety of options with the owner in an attempt to acquire the building. No agreement was reached.

Comments:

Although the owner willingly entered into discussions with Real Estate staff, no agreement was possible because of the considerable difference of opinion as to the value of the property. A staff report to Scarborough Council in 1996 indicated a $200,000.00 variance in our respective value estimates.

Staff also explored a number of alternatives to an outright purchase, including a land exchange for several building lots in the same neighbourhood as the store, the acquisition of the building only for a nominal sum, with the City providing a tax receipt and being responsible for relocation and a combination of one or more building lots plus cash. No agreement was reached, because of the owner's expectations regarding the property's value.

Staff have remained in regular contact with the owner, in order to renew negotiations should the situation change. As recently as early December of 1998 the owner acknowledged that he was continuing in his efforts to market the property for $550,000.00, the same amount as he was seeking previously, when negotiations with the City of Scarborough broke down.

Given this background, the City's options appear to be limited to the following:

(1)To continue to monitor the situation, and continue to encourage the owner and/or prospective purchasers to convert the property to another use. Unfortunately, as time passes further damage may occur because of vandalism, and the continued deterioration of the structure due to the elements.

(2)The City may agree to pay the owner's purchase price either in cash or as part of a land exchange.

(3)The City may expropriate the property. While this action would obtain the property for the City, it would also require the City to pay the owner's reasonable legal, appraisal and other costs to determine the compensation payable. This may include the costs of a hearing before the Ontario Municipal Board, if necessary. Such costs vary widely, but $50,000.00 to $100,000.00 would not be out of the question.

While it would be desirable for this historic building to be under the control of the City, purchasing it for significantly more than what is considered market value would set a poor precedent for other negotiations. It is therefore considered appropriate for staff to continue to monitor the situation closely and co-operate with the owner should a proposal to convert the building to another use be forthcoming.

Conclusion:

While staff should maintain contact with the owner to ensure that the owner is aware of the City's continuing interest in this property, no further action should be taken at this time.

Contact Name:

Warren Poole, Telephone No. (416) 396-4930, Fax No. (416) 396-4241, poole@city.scarborough.on.ca.

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The Corporate Services Committee reports, for the information of Council, having also had before it:

(1)a confidential report (April 29, 1999) from the Commissioner of Corporate Services respecting the possible acquisition of the W. J. Morrish Store; and

(2)a communication (May 14, 1999) from Mr. Rick Schofield, Chairman, Scarborough Local Architectural Conservation Advisory Committee (L.A.C.A.C.) advising that the Scarborough Historical Society has offered to assume staffing and ongoing operating costs of the W. J. Morrish Store as an Archives for the Scarborough region, if the building is acquired by the City and brought up to minimum property standards; that currently the Society shares facilities with the Toronto District School Board's Archives facilities and while this arrangement is quite satisfactory at present, the Society is looking for more long-term facilities; that the Society is prepared to actively seek partnerships with the School Board, local community associations and the public and private sector which will make this building completely self-sustaining with no annual staffing or operating costs for the City of Toronto; that a similar arrangement currently exists between the City and the Ontario Historical Society (John McKenzie House) in North York and between the City and the Scarborough Arts Council (Harrison Estate) in Scarborough; that fund raising to repair the structure needs to begin as soon as various grant opportunities are available as we approach the new Millennium; and that unless a decision concerning this historic building is made in the very near future, many of these grant opportunities will disappear and funding will go elsewhere.

(City Council on June 9, 10 and 11, 1999, had before it, during consideration of the foregoing Clause, the following confidential communications, such communications to remain confidential in accordance with the Municipal Act:

(i)(May 21, 1999) from the City Clerk, forwarding the recommendations of the Corporate Services Committee from its meeting held on May 20, 1999; and

(ii)(May 26, 1999) from the City Clerk, forwarding the recommendations of the Budget Committee from its meeting held on May 25, 1999.)

(City Council on July 6, 7 and 8, 1999, again had before it, during consideration of the foregoing Clause, the following confidential communications, such communications to remain confidential in accordance with the provisions of the Municipal Act:

(a)(May 21, 1999) from the City Clerk forwarding:

(i)a communication (March 2, 1999) from the City Clerk,

(ii)a report (April 29, 1999) from the Commissioner of Corporate Services; and

(iii)a communication (May 14, 1999) from Mr. Rick Schofield, Chairman, Scarborough LACAC; and

(b)(May 26, 1999) from the City Clerk forwarding the recommendations of the Budget Committee from its meeting held on May 25, 1999.)

The Policy and Finance Committee also submits the following report (July 6, 1999) from the Chief Financial Officer and Treasurer:

Purpose:

To identify a funding source for the proposed acquisition of the W. J. Morrish Store in Ward 16, Scarborough Highland Creek.

Financial Implications:

Uncommitted funds are available in the following Scarborough accounts which were previously earmarked for capital related expenditures. These include; (i) civic centre expansion reserve fund, and (ii) parkland acquisition reserve fund. The balances in these funds may be subject to additional commitments to be identified in a further report to Council addressing the Scarborough Hydro Corridor lands, as well as 2000 and future year capital projects identified in this report. Acquisition of the W. J. Morrish Store would require additional capital funding for refurbishment, as well, there would be on-going operating costs yet to be identified.

Recommendations:

It is recommended that:

(1)should the Budget Committee recommendation to use the Scarborough reserve funds be adopted, the Scarborough Community Council be requested to prioritize the W. J. Morrish Store project alongside the Hydro Corridor projects and with the 2000 and future year capital projects identified in the body of this report; and

(2)the Commissioner Economic Development, Culture and Tourism in consultation with the L.A.C.A.C. be requested to develop a business case outlining the estimated capital refurbishment costs and operating budget impact.

Council Reference/Background/History:

The Scarborough Community Council, at its meeting held on February 17, 1999, had before it a report from the Commissioner of Corporate Services (January 14, 1999) advising that the Local Architectural Conservation Advisory Committee (L.A.C.A.C.) has requested that the City consider the acquisition and preservation of the W. J. Morrish Store because of its historic significance.

City Council, on June 9, 10 and 11, 1999 considered the following confidential communications concerning the possible acquisition of the W. J. Morrish Store;

(a)a report dated April 29, 1999 from the Commissioner of Corporate Services;

(b)recommendations of the Corporate Services Committee from its meeting of May 20, 1999, and;

(c)recommendations of the Budget Committee from its meeting of May 29, 1999.

Corporate Services Committee recommended using the city's Land Acquisition Reserve Fund to finance the acquisition. Budget Committee requested that the Chief Financial Officer and Treasurer report back on potential funding sources from Scarborough related reserve funds for the acquisition of the W. J. Morrish Store.

Discussion:

Acquisition of the W. J. Morrish Store would require additional capital funding for refurbishment, as well, there would be on-going operating costs. Funding for the potential acquisition of the Morrish Store has been identified in the following Scarborough reserve funds, which were previously earmarked for capital purposes. The capital levy reserve fund is presently over-committed by $1.2 million. The balances within these funds are shown below, net of previous commitments made by Council:

Any funds with uncommitted balances in the above table exclude commitments for the following capital projects scheduled for 2000; (i) Heron Park Phase 2 ($3.3 M), (ii) Thompson Park Fieldhouse ($1.0 M), and (iii) Clairlea Park Extension ($1.6 M).

Also not included are the following capital projects scheduled for 2001 and beyond; (i) Scarborough Village Recreation Centre ($2.3 M), (ii) Centennial Recreation Centre Phase 3 ($4.1 M), (iii) Thompson Park Development ($0.6 M), (iv) L'Amoreaux Greenhouse ($1.4 M) and (v) Birchmount Stadium ($5.4 M).

It should also be noted that the Scarborough reserve fund balances shown above may be subject to additional commitments that have yet to be authorized concerning the Scarborough Hydro Corridor lands. The issue of the Hydro Corridor lands will be the subject of a further report to the Policy and Finance Committee at its meeting of July 20, 1999.

Conclusion:

This report identifies funding sources for the potential acquisition of the W. J. Morrish Store. Uncommitted funds are available in two Scarborough reserve funds identified in this report. The balances in these accounts may be the subject to further commitments to be addressed in an upcoming report that deals with the Scarborough Hydro Corridor lands. Also not included, are potential commitments from 2000 and beyond capital projects. The W. J. Morrish Store project needs to be prioritized alongside the Hydro Corridor projects and 2000 and the future year projects.

Contact Name:

Paul Chenery397-4204