Conveyance of 118A and 120 Pearl Street -

Toronto District Heating Corporation (TDHC)

(Ward 24 - Downtown)

The Administration Committee recommends the adoption of the following report (October 4, 1999) from the Acting Commissioner of Corporate Services:

Purpose:

To implement the conveyance of 118A and 120 Pearl Street to TDHC.

Funding of Sources, Financial Implications and Impact Statement:

The conveyance of the Pearl Street property 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)authority be granted for the City to proceed to implement the conveyance of 118A and 120 Pearl Street to TDHC in connection with the TDHC incorporation under the Ontario Business Corporations Act;

(2)authority be granted for the City to enter into an agreement of purchase and sale in a form satisfactory to the City Solicitor; and

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

Background:

By its adoption of Clause No. 10 of Report No. 4 of The Policy and Finance Committee at its meeting held on July 27, 28, 29 and 30, 1999, City Council approved the incorporation of the TDHC under the Ontario Business Corporations Act. Among other matters, Council agreed that the City would 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.

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 an least one appraisal of the market value of the property, unless exempted by regulations passed under the legislation. The aforementioned procedures must be undertaken prior to Council binding the City to the transaction. This report is being submitted to fulfil the technical statutory requirements.

Comments:

By its adoption of Clause No. 16 of Report No. 5 of The Administration Committee, City Council, at its meeting held on September 28 and 29, 1999, declared surplus to the City's requirements for the conveyance to TDHC the property known municipally as 118A and 120 Pearl Street. As required, an appraisal of the market value of the property has been completed. Notice by publication in a daily newspaper of the proposed conveyance will be given prior to City Council's meeting scheduled for October 26, 27 and 28, 1999. Should comments be received pursuant to the notice, staff will report the results directly to Council at its meeting of October 26, 1999.

Conclusion:

In order to proceed with to the conveyance of 118A and 120 Pearl Street to TDHC, authorization should be granted at this time to implement the transaction.

Contact Name:

Luba Tymkewycz, 392-7207, Fax: 392-1880, E-mail: ltymkewy@toronto.ca

(A copy of the map attached to the foregoing report was forwarded to all Members of Council with the October 5, 1999, agenda of the Administration Committee and a copy thereof is also on file in the office of the City Clerk.)