Sale of Surplus Spadina Project Property at

50 Heathdale Road - (Ward 28 - York-Eglinton)

The Corporate Services Committee recommends the adoption of the following report (January29, 1999) from the Commissioner of Corporate Services:

Purpose:

To authorize the disposal of the property municipally known as 50 Heathdale Road.

Funding Sources, Financial Implications and Impact Statement:

Revenue of $600,000.00, less closing costs and the usual adjustments, subject to the revenue sharing agreement with the Province pursuant to Clause No. 1 of Report No. 25 of the former Metropolitan Corporate Administration Committee, approved on December 4, 1996.

Recommendations:

It is recommended, subject to Provincial concurrence, that:

(1)the Commissioner of Corporate Services be authorized to accept the highest offer in the amount of $600,000.00 as detailed herein;

(2)Council, pursuant to Clause No. 14 of Report No. 27 of the former Metropolitan Management Committee adopted on September 28, 1994, waive the minimum required deposit of 10 per cent. of the purchase price;

(3)authority be granted to direct a portion of the sale proceeds on closing to fund the outstanding balance of Costing Unit No. CP300J56193;

(4)the City Solicitor be authorized and directed to take the appropriate action, in conjunction with Province of Ontario Officials and/or agents, to complete the transaction on behalf of the Corporation and he be further authorized to amend the closing date to such earlier or later date as he considers reasonable; and

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

Council Reference/Background/History:

The Province of Ontario is the owner of 50 Heathdale Road, subject to a ninety-nine year lease in favour of the City of Toronto. By its adoption of Clause No. 1 of Report No. 3 of The Corporate Administration Committee on February 12 and 13, 1997, Metropolitan Council declared the property surplus pursuant to By-law No. 56-95 and authorized its disposal. The procedures with respect to By-law No. 56-95 have been complied with, a utility canvass has been completed and no easement requirement has been identified.

By its adoption of Clause No. 4 of Report No. 9 of The Corporate Services Committee on July 8, 9, and 10, 1998, Toronto Council authorized that properties listed in Schedule "A", including the subject property, be sold to former owners at market value determined as of the date of expression of their interest and that such sale be subject to an option to repurchase at that purchase price (unadjusted) for a period of two years. Accordingly, the former owner was provided with our February 12, 1997 appraisal estimating the fair market value of this property at $440,000.00 together with an agreement of purchase and sale. The former owner, Jerome Cooper, subsequently advised that he was not prepared to proceed with the purchase of this property.

Comments and/or Discussion and/or Justification:

Pursuant to the February 12 and 13, 1997 and July 8, 9 and 10, 1998 authorities, the property was listed with HomeLife City Hill Realty on December 9, 1998 at an asking price of $495,000.00. As a result, the following offers were received:

PurchaserDepositPurchase Price/Terms

Dean McDermott and$40,000.00$600,000.00 (no conditions)

Mary Joe Eustace(certified cheque)

Bruce Harbinson and$50,000.00$593,777.00 (no conditions)

Gill Cameron(certified cheque)

Connie McCandless$28,631.35$572,627.02 (no conditions)

and Kevin Quinn(bank draft)

Allan I. Consky$28,000.00$556,875.00 (no conditions)

(bank draft)

Howard Eric Esakov$27,750.00$555,000.00 (no conditions)

(certified cheque)

Jason Alan Lester and$27,750.00$552,000,00 (no conditions)

Bonnie Ellen Lester(bank draft)

Gayla Glow$25,925.00$518,500.00 (no conditions)

(bank draft)

Paul Cohen & Shelley Adler$26,000.00$515,001.00 (no conditions)

(bank draft)

Gary Bomza$25,600.00$512,000.00 (no conditions)

(bank draft)

Gordon D. Wiseman,$25,000.00$495,100.00 (no conditions)

Dr. Saul M. Wiseman and($12,500.00 (bank draft)

Elaine Wisemanand $12,500.00 (certified cheque)

Harvey Minuk$20,000.00$405,000.00 (no conditions)

(certified cheque)

The highest offer is recommended for acceptance:

Property Address:50 Heathdale Road.

Legal Description:Part of Parcel 1-2, Section MX-6, being Lot 168, Plan M-367, designated as Lot 2, on Plan MX-75, City of Toronto (formerly City of York).

Lot Size:15.24 metres (50 feet) fronting onto Heathdale Road,

41.1 metres (135 feet) depth.

Location:North side of Heathdale Road at Glencedar Drive.

Improvements:Detached, two-storey, stucco dwelling.

Occupancy Status:Vacant.

Recommended Sale Price:$600,000.00 (no conditions).

Deposit:$40,000.00 (certified cheque).

Purchaser:Dean McDermott and Mary Joe Eustace.

Closing Date:April 15, 1999.

Terms:Cash on closing, subject to the usual adjustments.

Listing Broker:HomeLife/City Hill Realty Inc.

Selling Broker:Forest Hill Real Estate Inc.

Commission:Four (4) per cent. plus G.S.T., payable on closing of the transaction.

By the adoption of Clause No. 5 of Report No. 9 of The Corporate Services Committee, Council at the meeting held on July 8, 9, and 10, 1998 directed that comparable sales data be provided in future reports of property sales. Appendix "A" identifies three comparable properties located in the vicinity that have recently sold. While comparable sales information can be included as part of the staff report, this property was listed for sale on the TREB multiple listing service and the forces of the market place have determined the true market value.

Conclusion:

Completion of this transaction detailed above is considered fair and reasonable and reflective of market value.

Contact Name:

S. Badin, Valuator-Negotiator, Real Estate Services, (416) 392-8142, Fax No. (416) 392-4828 E-Mail Address: sheryl_badin@metrodesk.metrotor.on.ca.

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Appendix "A"

50 Heathdale Road - Comparable Sales

The following three addresses represent recent comparable sales of properties that are similar to the residence which forms the subject matter of this report.

Approximate

AddressLot SizeSale PriceDate of Sale

12 Heathdale Road50 x 135$631,500.00December 16, 1998

36 Heathdale Road50 x 130$708,000.00August 18, 1998

6 Glen Cedar Road60 x 108$560,000.00October 7, 1998

________

The following persons appeared before the Corporate Services Committee respecting the Sale of Surplus Spadina Project Properties:

-Mr. Gilbert Zamonsky, and gave an overhead presentation in regard thereto;

-Ms. Judy Eversen;

-Ms. Eleanor Lavender, and submitted a brief in regard thereto;

-Ms. Maria Vertolli;

-Mr. Gabriel Heti, and submitted appraisal figures respecting 132 Everden Road; and

-Councillor Howard Moscoe - North York Spadina.

(A copy of the map attached to the foregoing report was forwarded to all Members of Council with the February 15, 1999, agenda of the Corporate Services Committee and a copy thereof is also on file in the office of the City Clerk.)