Sale of City-Owned Former Railway

Spur Lands - 21 Richardson Street (Downtown)

The Toronto Community Council recommends the adoption of the following report (June 30, 1999) from the Chief Administrative Officer and Acting Commissioner of Corporate Services:

Purpose:

To provide the Toronto Community Council with information on an Offer to Purchase received from Gemess Investments Limited for the sale of part of the City-owned property municipally known as 21 Richardson Street, adjacent to the northerly limit of 162 Queens Quay East and to recommend that the Offer be accepted.

Financial Implications:

Revenue in the amount of approximately $28,800.00, will be realized from the sale of this property.

Recommendations:

It is recommended that:

(1)the Offer to Purchase from Gemess Investments Limited to purchase part of the City-owned property municipally known as 21 Richardson Street adjacent to the northerly limit of 162 Queens Quay, in the amount of approximately $28,800.00, including a deposit of $2,880.00, be accepted;

(2)the City Solicitor be authorized and directed to complete this transaction according to the terms and conditions of the Offer to Purchase and pay any expenses incurred by the City incidental to the closing transaction;

(3)the City Surveyor furnish the necessary legal description; and

(4)the appropriate City Officials be authorized and directed to take the necessary action to give effect hereto.

Background:

In June 1995, the former City of Toronto acquired from the Toronto Harbour Commissioners four parcels of land comprising a former railway spur line known as Nos. 21 Richardson Street, 12 and 13 Bonnycastle Street and 11R Small Street (see attached Appendix 'A'). The former City of Toronto Board of Management, at its meeting of January 30, 1997, approved negotiations with the owners of lands abutting the subject railway spur lands. Negotiation resulted in three owners submitting Offers to Purchase Agreements for three different parts of the railway spur lands known as 13 Bonnycastle Street. At that time, no offers were submitted for the railway spur lands known as 21 Richardson Street. The remainder railway spur lands comprising 11R Small Street and 12 Bonnycastle Street were conveyed to the Toronto Economic Development Corporation, the abutting land owner.

The former City of Toronto Council, at its meeting on October 6, 1997 approved the sale of 13 Bonnycastle Street to the three abutting owners.

Comments:

The former rail spur land under discussion comprises a strip of land approximately 157 feet long with a perpendicular width of 18 feet for a total area of 2,880 square feet. It is currently zoned I2 D3 N1.5, a mixed industrial commercial zoning. The abutting property to the south is municipally known as 162 Queens Quay East and the property abutting to the north is municipally known as 215 Lake Shore Blvd. East.

The owner of 162 Queens Quay East, Gemess Investments Ltd., recently submitted an Offer to Purchase Agreement to acquire a portion of the City owned railway spur lands known as 21 Richardson Street. The owner has requested the total depth and length of the spur lands that abuts the northerly limit of his property at 162 Queens Quay East be conveyed to him instead of only one half of the former rail spur line abutting his property. The abutting owner to the north of the spur line has expressed no objection to the City of Toronto selling the total width of the railway spur under question to the owner of 162 Queens Quay East.

Recommended Offer:

I am prepared to recommend the following Offer To Purchase.

(1) Purchaser:Gemess Investments Ltd.

(2) Contact:Leneo E. Sdao

(3) Purchase price:$28,800.00

(4) Deposit:$2,880.00 (10%)

(5) Solicitor:Leneo E. Sdao

McCarthy Tetrault

Suite 4700, Toronto Dominion Bank Tower

Toronto-Dominion Centre,

Toronto, Ontario

M5K 1E6

(6) GST No.101975969R

(7) Acceptance Date:August 6, 1999

(8) Closing Date:15 Days following expiry of the Due Diligence period

The Offer Price of $28,800.00 is subject to area adjustment as stated in the Offer To Purchase Agreement "that the Purchaser will at its own expense prior to the expiration of the Due Diligence Period, prepare and deposit on title, a reference plan of the property being acquired. The Purchase Price shall be adjusted according to the actual square footage of the property as revealed by the Plan based on the rate of $10.00 per square foot of site area."

The Purchaser has requested that the standard 60 day Due Diligence period be lowered to 45 days, during which time the purchaser may conduct an environmental assessment on the property. As a condition to the Offer, the Purchaser has requested that if the purchaser's investigations disclose the existence of any sub-surface installations, Hazardous Substances or soil conditions which are not acceptable to the Purchaser (notwithstanding that they meet the Standard) and the cost of removal or remediation of same exceeds $10,000.00 in the aggregate, then the Purchaser may terminate this Agreement upon written notice at any time during the Due Diligence Period.

The offered price based on a rate of $10.00 per square foot of site area is considered indicative of current market value.

Conclusion:

I am of the opinion that the Offer to Purchase received from Gemess Investments Ltd. in the amount of $28,800.00 subject to area adjustment to be confirmed by survey, is acceptable.

Contact Name:

Peter Aziz

392-1856

Fax: 392-1880

paziz@toronto.ca