Property Acquisition for Parkland - Canada Lands Company

- Scarborough Bluffs (Ward 13)

 The Strategic Policies and Priorities Committee recommends the adoption of the recommendations in the following transmittal letter (May 27, 1998) from the Budget Committee:

 Recommendations:

 The Budget Committee on May 26, 1998, recommended to the Strategic Policies and Priorities Committee, and Council:

 (1)the adoption of the report (February 12, 1998) from the Commissioner of Corporate Services; and

 (2)that the land acquisition be financed from Parkland Acquisition Reserve Funds.

 The Budget Committee reports having requested that Commissioner of Corporate Services provide a report to the next Council meeting on June 3, 1998 as to whether the Canada Lands Company has carried out any soil testing on these lands, and if soil tests have been done, that such reports be provided.

 Background:

 The Budget Committee on May 26, 1998, had before it a letter of transmittal (May 11, 1998) from the City Clerk advising that on May 6, 1998, the Scarborough Community Council concurred with the recommendations of the Corporate Services Committee.

 (Letter of Transmittal dated May 11, 1998, addressed to the

Budget Committee from the

City Clerk)

 Recommendations:

The Scarborough Community Council, on May 6, 1998, directed that the Budget Committee be advised that Scarborough Community Council concurs in the recommendation of the Corporate Services Committee that the following report be adopted:

 (February 12, 1998) from the Commissioner of Corporate Services, recommending that:

 (1)the City purchase the lands shown on the attached sketch being Part Lot 28, Concession B, City of Scarborough, at the price of $332,375.00, based upon an area of 1.076 hectares, with the final price to be adjusted upon completion of a survey plan, and the purchase to be conditional upon the soil conditions being found satisfactory;

 (2)the City enter into a license agreement with Praxair Limited, permitting the existing pipeline crossing the property to remain for a period of ten years; and

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

 Background:

 The Scarborough Community Council had before it a communication (April 6, 1998) from the City Clerk, advising that the Budget Committee, on April 3, 1998, referred to the Scarborough Community Council, the letter of transmittal (March 30, 1998) from the Corporate Services Committee, wherein the Committee recommended the adoption of the foregoing report (February 12, 1998) from the Commissioner of Corporate Services.

 (Letter of Transmittal dated April 6, 1998, addressed to the

Scarborough Community Council

from Budget Committee)

 Recommendation:

 The Budget Committee on April 3, 1998 referred the letter of transmittal (March 30, 1998) from the Corporate Services Committee, regarding the acquisition of property for parkland adjacent to Natal Park, to the Scarborough Community Council.

 Background:

 The Budget Committee on April 3, 1998, had before it a letter of transmittal (March 30, 1998) from the Corporate Services Committee wherein the Committee on March 30, 1998, recommended to the Budget Committee the adoption of the report (February 12, 1998) from the Commissioner of Corporate Services.

 (Letter of Transmittal dated March 30, 1998 addressed to the

Budget Committee from the

Corporate Services Committee)

 Recommendation:

 The Corporate Services Committee on March 30, 1998, recommended to the Budget Committee the adoption of the report (February 12, 1998) from the Commissioner of Corporate Services.

 Background:

 The Corporate Services Committee on March 30, 1998, had before it a report (February 12, 1998) from the Commissioner of Corporate Services responding to a former City of Scarborough Council directive to purchase additional parkland adjacent to Natal Park; advising that this report summarizes the negotiations undertaken and the resulting agreement with Canada Lands Corporation; that the land acquisition is charged to Capital Account No. 67031-00000-00000-481 and funded from the Parks Reserved Fund No. 70490; and recommending that:

 (1)the City purchase the lands shown on the attached sketch being Part Lot 28, Concession B, City of Scarborough, at the price of $332,375.00, based upon an area of 1.076 ha, with the final price to be adjusted upon completion of a survey plan, and the purchase to be conditional upon the soil conditions being found satisfactory;

 (2)the City enter into a license agreement with Praxair Limited, permitting the existing pipeline crossing the property to remain for a period of ten years; and

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

 (Report dated February 12, 1998, addressed to the

Corporate Services Committee from the

Commissioner of Corporate Services)

 Purpose:

 In response to a former City of Scarborough Council directive to purchase additional parkland adjacent to Natal Park this report summarizes the negotiations undertaken and the resulting agreement with Canada Lands Corporation.

 Funding:

 The land acquisition to be charged to Capital Account #67031-00000-00000-481 and funded from the Parks (5 per cent) Reserved Fund #70490.

 Recommendations:

 It is recommended that:

 (1)The City purchase the lands shown on the attached sketch being Part Lot 28, Concession B, City of Scarborough at the price of $332,375.00, based upon an area of 1.076 ha, with the final price to be adjusted upon completion of a survey plan, and the purchase to be conditional upon the soil conditions being found satisfactory;

 (2)The City enter into a license agreement with Praxair Limited, permitting the existing pipeline crossing the property to remain for a period of ten years;

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

 Background:

 In 1991, City of Scarborough Council authorized negotiations with C.N. Rail to purchase approximately 1.21 ha (3 acres) of land on the south side of the C.N. line between Midland Avenue and Kennedy Road, immediately adjacent to Natal Park. The negotiations were stalled for a number of years as the land was being conveyed by C.N. Rail to the Canada Lands Company. The property is a 70m X 200m (1.076 ha, 2.659 acre) parcel which was part of a much larger holding expropriated by C.N. in the 1920's for track expansion and a rail yard. The plans for a yard were later abandoned and the surplus was transferred to the Canada Lands Company in the early 1990's. C.L.C. has since been marketing its surplus properties in the area. The subject is the last parcel in the immediate vicinity.

 Natal Park is a 2.99 ha (7.4 acre) local park south of St. Clair Avenue, between Kennedy Road and Midland Avenue. The subject property was identified as an appropriate addition to Natal Park in 1991, during development of the park.

 The Official Plan designation of the property is Neighbourhood Park. In anticipation of a conveyance to the City it was redesignated in 1997, as part of Official Plan and rezoning applications involving other lands owned by C.L.C. The current zoning is Single and Two Family Residential.

 Comments:

 The property is subject to a license agreement between C.L.C. and Praxair which permits two pipelines owned by Praxair Limited to cross the property. The pipelines, which carry hydrogen and nitrogen, extend approximately 4 kilometres from a glass manufacturing operation on Warden Avenue to the Praxair facility on Brimley Road. They are located close to the southern limit of the property, and then cross the property and proceed under the C.N. line. For most of their length the pipelines are located within various municipal road allowances. They have been permitted to remain there by an agreement with the municipality since their construction in the early 1960's. Praxair has agreed to add the subject property to the existing agreement.

A tentative agreement has been reached with Canada Lands Company with respect to the purchase of the property at a price of $332,375.00, which is equivalent to $308,882.00 per ha ($125,000.00 per acre).

 Canada Lands Company is insisting that the City indemnify it with respect to the discovery of any contamination in the future. Under Ontario law, previous owners can be made to pay damages if found to have contaminated the property. C.L.C. indicates that the obtaining an indemnification from purchasers is an essential part of their mandate to dispose of surplus property formerly owned by C.N., and that they have been successful in receiving indemnifications from other purchasers. Had the property been used for rail purposes, staff would not recommend that such an indemnification be given. However, there is no indication that tracks were ever installed on any part of the property, nor that it has ever been used for any purpose other than agriculture. Nevertheless, to protect the City=s interests, staff have insisted that the purchase is to be conditional upon the City satisfying itself as to the condition of the soils on the property, to ensure that no contamination is present. The estimated cost of the soil testing is $25,000.00.

 Conclusion:

 Purchase of this property will extend Natal Park to its logical boundary at the railway, and will provide needed parkland in an area which is deficient.. The purchase price is indicative of the market value of the property.

 Contact Name:

 R. Mayr, AACI, Director of Real Estate, Telephone No. (416) 396-4930, Fax No. (416) 396-4241, mayr@city.scarborough.on.ca, (cs98025.wpd)