Partial Property Acquisition from

Canada Lands Company

(Ward 16 - Scarborough Highland Creek)

 The Corporate Services Committee recommends the adoption of the following report (June 11, 1998) from the Commissioner of Corporate Services:

 Purpose:

 Property acquisition to accommodate development of the Port Union Village Common.

 Funding:

 Cost of the acquisition in the amount of $151,150.00 plus closing costs to be charged to Capital Account No. 67035 and funded by a transfer from Parks five percent Reserve Account Fund No. 70490.

 Recommendations:

 It is recommended that:

 (1)City Council approve the acquisition of the 1.11 ha parcel shown as Part 1 on the attached sketch (Part of Lot 35, Range 1, Township of Pickering) from Canada Lands Company at a price of $151,150.00;

 (2)the City Solicitor be authorized to complete this transaction and pay any costs incidental to the closing for land transfer tax or otherwise; and

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

 Background:

 On March 7, 1995, the Ontario Municipal Board approved the Port Union Village Secondary Plan for lands located south of Lawrence Avenue on both sides of Port Union Road in the former City of Scarborough. Identified in the Secondary Plan is a significant public land component referred to as the Village Common. The Village Common is intended to straddle Port Union Road from Lawrence Avenue south to the C.N.R. tracks. Also identified in the Secondary Plan is an Open Space connection between the Village Common and the Rouge Hill GO Station, located a short distance to the east.

 An important component of the Village Common was secured in October of 1997 with the acquisition of the "Laskey Hotel" property, on the east side of Port Union Road, just north of the C.N.R. tracks.

 In March of 1998, City Council authorized tax sale procedures for the former Johns Manville property, part of which is also located within the Village Common area.

 Scarborough Community Council authorized negotiations with the owners of the other properties required for the Village Common in March of 1998.

 Canada Lands Company owns a 1.11 ha (2.75 acre) parcel which extends from Port Union Road east to the GO station. It forms an irregularly shaped, long narrow strip, and was until recently the site of several disused railway spur lines, and the original Port Union Station. This property would be

ideal for the Open Space connection between the Go Station and the Village Common.

 Comments:

 A tentative agreement subject to Council approval, has been negotiated with the Canada Lands Company to purchase the property for $151,250.00. This is equivalent to $135,900.00 per ha ($55,000.00 per acre) for the 1.11 ha (2.75 acre) property. Given the shape and location of the property, the purchase price is considered to be below market value.

 This portion of the former City of Scarborough was annexed from Pickering in 1974, and the Pickering Township Zoning by-law remains in effect. Under the by-law, the property is zoned RWY - Railway, which permits only the operation of rail facilities. The Official Plan designates part of the property for Open Space Uses, and a smaller portion for Village Common Uses.

 The Vendor has provided a Phase I and Phase II Environmental Assessment, which indicates only a very small area of stained soil. Laboratory analysis indicates the staining is the result of a Petroleum product, likely the result of a leak from a rail tank car parked on the siding a number of years ago. While C.L.C.'s consultants have estimated the cost of removing the soil to be $3,750, Environmental Services staff have indicated the removal could await the development of the connection between the Village Common and the GO Station. Remediation undertaken at that time would have lower costs since equipment necessary would already be on site.

 Were the City to decline to purchase this property, significant portions of it would likely be sold for development in conjunction with ongoing development immediately to the north.

 It is noted we have confirmed with Parks staff the requirement to acquire these lands and a summary of the real estate acquisition program is set out below:

  Conclusion:

 The Village Common concept was the product of a lengthy planning process for this community.

Acquisition of these lands would be another important step in the ongoing process of creating the Village Common.

 Contact Name:

 R. Mayr, AACI, Director of Real Estate, Telephone (416) 396-4930, Fax Number (416) 396-4930

mayr@city.scarborough.on.ca (cs98084.wpd)

 (A copy the location map attached to the foregoing report was forwarded to all Members of Council with the June 22, 1998, agenda of the Corporate Services Committee, and a copy thereof is also on file in the office of the City Clerk.)