Expropriation of Property Interests,

Sheppard Subway Project,

Don Mills Station

 The Corporate Services Committee recommends the adoption of the following report (April 15, 1998) from the Commissioner of Corporate Services:

 Purpose:

 To seek approval of the expropriation under the Expropriations Act of property interests required for the construction and operation of the Sheppard Subway in the vicinity of Don Mills Station.

 Funding Sources, Financial Implications and Impact Statement:

 Financing has previously been approved by Council and is available in Capital Account Number TC-392 Sheppard Subway Project.

 Recommendations:

 It is recommended that:

(1)City Council, as approving authority, approve the expropriation of certain leasehold interests detailed herein;

 (2)authority be granted to take all steps necessary to comply with the Expropriations Act including, but not limited to the preparation and registration of a plan of expropriation and service of Notices of Expropriation, Notices of Election as to the Date for Compensation and Notices of Possession;

 (3)authority be granted to the Commissioner of Corporate Services to sign the Notices of Expropriation and Notices of Possession on behalf of the City;

 (4)leave be granted for the introduction of the necessary Bill in Council to give effect thereto;

and

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

 Council Reference/Background/History:

 By the approval of Clause No. 2 of Report No. 9 of The Management Committee (as amended) on March 8 and 9, 1994, and subject to a further report regarding funding, Metropolitan Council approved construction of the Sheppard Subway to Don Mills Road. By the approval of Clause No. 2 of Report No. 14 of The Management Committee (as amended) on April 20, 1994, Metropolitan Council authorized the debenture funding to commence the project. Finally, Metropolitan Council, by its adoption of Clause No. 2 of Report No. 21 of The Financial Priorities Committee on September 25 and 26, 1996, as amended, approved the completion of the Sheppard Subway Project.

 Metropolitan Council, at its meeting on April 23, 1997, by the adoption of Clause No. 4 of Report No. 11 of The Corporate Administration Committee, authorized the Application for Approval to Expropriate all interests in land required for the construction of the Sheppard Subway in the vicinity of the Don Mills Station. At its meeting held December 10 and 18, 1997, Metropolitan Council, by its adoption of Clause No. 2 of Report No. 25 of The Corporate Administration Committee authorized a settlement with C.F. Realty Inc., and Cambridge Shopping Centres Limited, the owners of Fairview Mall, whereby the property interests required from these owners for the subway at this location, more specifically described as Parts 1 through 70 on Reference Plan 66R-17849, a copy of which is on file with the City Clerk (Athe required lands@) would be acquired voluntarily without the need to proceed to an expropriation.

 Comments and/or Discussion and/or Justification:

 As part of the construction of the Sheppard Subway - Don Mills Station and related facilities property interests are required from Fairview Mall (AFairview@), a two level regional shopping centre located at the northeast corner of Sheppard Avenue East and Don Mills Road. Fairview contains 262 commercial retail units (CRUs) and is anchored by four major tenants, including Sears Canada Inc. (ASears@), Hudson Bay Company (AThe Bay@), Loblaws and a Cineplex Odeon Theatre. It has been determined that, in addition to the owners of Fairview, by virtue of their leases Sears and The Bay have an interest in the required lands. Satisfactory arrangements have been made with The Bay and Sears to allow the construction to proceed.

 While it is unlikely that the CRU tenants have an interest in the required lands that would be compensable at law, because of the complicated title situation for the Fairview property, it was considered advisable to provide notice and expropriate their leasehold interest, if any, in the required lands pursuant to the Expropriations Act and the April 23, 1997, Metro Council authority noted above. Accordingly, Notices of Application for Approval to Expropriate were served on all the CRU tenants. No requests for a Hearing of Necessity have been received and the time period prescribed for doing so has now elapsed. As the required lands are necessary for the Sheppard Subway Project, it is appropriate for Council to approve the expropriation and authorize City staff to take the necessary actions prescribed in the Expropriations Act to give effect thereto.

 Conclusions:

 In my opinion, there having been no requests for a Hearing of Necessity relating to the proposed expropriation of certain leasehold interests (if any) in the lands described as Parts 1 through 70 on Reference Plan 66R-17849, it is fair and reasonable for Council to approve same.

 Contact Name:

 Doug Warning - 392-8165.

 (A copy of the sketch attached to the foregoing report was forwarded to all Members of Council with the April 27, 1998, agenda of the Corporate Services Committee, and a copy thereof is also on file in the office of the City Clerk.)