Declaration as Surplus

118A-120 Pearl Street - Toronto District Heating

Corporation (TDHC) - (Ward 24 - Downtown)

The Administration Committee recommends the adoption of the following report (August 20, 1999) from the Acting Commissioner of Corporate Services:

Purpose:

To secure authority to declare the property surplus to municipal requirements.

Financial Implications:

The proposed conveyance of 118A-120 Pearl Street to TDHC, at a value of $2,000,000.00, is part of the City's contribution to TDHC and is to be matched by OMERS with a cash contribution to TDHC in the same amount.

Recommendations:

It is recommended that:

(1)the property known municipally as 118A-120 Pearl Street be declared surplus to the City's requirements for the proposed conveyance of the property to TDHC and all steps necessary to comply with the requirements of By-law No. 551-1998 be taken; and

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

Background:

By virtue of Section 5 of the City of Toronto Act, 1977, the City was authorized to construct an integrated steam system on the Pearl Street property in which title was held by Toronto Hydro. It was then leased to TDHC.

The Pearl Street steam plant, known municipally as 120 Pearl Street, is located on the east side of Simcoe Street and extends from the north side of Pearl Street to Adelaide Street West. Through an exchange of lands, respecting the closing, conveyancing and re-alignment of the lane east of 120 Pearl Street, Toronto Hydro received title to a strip of land known municipally as 118A Pearl Street.

Pursuant to the City of Toronto Act, 1997, Section 9(4), 118A-120 Pearl Street along with other lands relating to the distribution and supply of electrical power were vested in the City under the management and control of Toronto Hydro.

Following the adoption by City Council at its meeting held on June 9, 10 & 11, 1999 of By-law No. 374-1999, authorized by Section 145(1) of the Electricity Act, 1998, all of the assets of Toronto Hydro and the City held or used by either of them for the purpose of generating, transmitting, distributing or retailing electricity were transferred to Toronto Hydro-Electric Systems Limited or Toronto Hydro Energy Services Inc., as applicable, with the subject property and thirteen other properties being specifically excluded from such transfer. With the adoption of Clause No. 1 of Report No. 10 of The Strategic Policies and Priorities Committee by City Council, at its meeting held on June 9, 10 and 11, 1999, the City retained and took over control and management of these fourteen excluded properties.

City Council, at its meeting held on July 27, 28, 29 and 30, 1999, adopted Clause No. 10 of Report No. 4 of The Policy and Finance Committee respecting the incorporation of the TDHC under the Ontario Business Corporations Act. Among other recommendations, Council recommended that the City contribute to TDHC the Pearl Street property, formerly owned by Toronto Hydro and retained by the City, for continued use as a steam production plant for TDHC at a value of $2,000,000.00 and to be matched by OMERS with a cash contribution to TDHC in the same amount.

Comments:

In order to comply with the time-lines of the business arrangements respecting TDHC, no formal disposal circulation to the City's Agencies, Boards, Commissions or Departments was undertaken. However, the Property Management Committee, at its meeting held on August 16, 1999, recommended that a report declaring the property surplus to municipal requirements be prepared.

In order to proceed with the proposed conveyance of the Pearl Street property to TDHC, the City must comply with the procedures governing disposal of property. Section 193(4) of the Municipal Act requires that, before the selling of any property, Council must declare the property to be surplus by by-law or resolution passed at a meeting open to the public, give notice to the public of the proposed sale and obtain at least one appraisal of the market value of the property, unless exempted by regulations passed under the legislation.

Conclusion:

118A-120 Pearl Street should be declared surplus to the City's requirements in order to proceed with the proposed conveyance of the property to TDHC.

Contact Name:

Luba Tymkewycz; 392-7207; Fax No.: 392-1880; ltymkewy@toronto.ca