STAFF REPORT

January 26, 2000

To: Administration Committee

From: Acting Comissioner of Corporate Services

Subject: Declaration as Surplus and Sale of Rail Corridor Lands to GO Transit as part of the Purchase of Union Station by the City of Toronto from Toronto Terminals Railway Company Limited.

(Trinity Niagara, Downtown , Don River)

Purpose:

To secure authority to declare portions of the rail corridor being acquired by the City of Toronto as part of it's purchase of Union Station surplus to municipal requirements in order that the rail corridor can then be transferred to GO Transit.

Financial Implications and Impact Statement:

Revenue generated from the transfer of the rail corridor lands to GO Transit will be used to finance the acquisition of Union Station by the City. Financial implications of the purchase of Union Station have been reported previously.

Recommendations:

It is recommended that:

(1) portions of the lands comprising the rail corridor between the Don River and Strachan Avenue as illustrated on the attached maps be declared surplus to the City's requirements, all steps necessary to comply with By-law 551- 1998 be taken and the lands transferred to GO Transit ; and

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

Background:

At its meeting held July 27, 28 and 29, 1999 Council authorized the execution of an Agreement of Purchase and Sale for the acquisition of the real estate assets of Toronto Terminals Railway Company Limited ("TTR"). That agreement was executed on November 3, 1999. The City's main objective in doing so has been to bring the Station itself into City ownership. In a report dated January 6, 2000 the Chief Administrative Officer reported that the other TTR assets would be transferred to GO Transit and the funds utilized to finance the City's purchase of the Station. The transaction closes on March 15, 2000.

Comments:

As part of the Union Station transaction, portions of the rail corridor lands being acquired by the City will be transferred to GO Transit for its purposes. The City has no use for an operating rail corridor. Section 193 (4) of the Municipal Act requires that, before selling 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.

In the usual course, once the disposal procedures have been completed and negotiations completed, a further report would be made to Council. In this instance, because of the nature of this sale, being to another public agency for a public purpose, it is proposed to complete the transaction with GO Transit without a further report to Council, unless the Commissioner of Corporate Services determines that, as a result of the public notification process, further instructions are required in order to complete the transaction.

Conclusions:

Under the circumstances, City Council should declare those portions of the rail corridor identified on the attached maps surplus to the City's requirements, direct City staff to take all steps necessary to comply with the City's disposal procedures and, if no further instruction or direction is considered necessary as a result thereof, complete the transfer of the lands to GO Transit.

Contact:

Doug Stewart

Director of Real Estate Services

Telephone: 392-7202

Fax: 392-1880

Brenda Glover

Acting Commissioner of Corporate Services

List of Attachments:

Maps of Portions of Railway Corridor to be Declared Surplus and Sold to GO Transit