Sale of Surplus City-Owned Property,

80 Turnberry Avenue,

(Ward 21 - Davenport)

The Corporate Services Committee reports having instructed the Commissioner of Corporate Services to provide one further opportunity to allow prospective purchasers to submit a final offer by February 23, 1999, respecting the property located at 80 Turnberry Avenue; and submit a further report thereon directly to Council for its meeting scheduled to be held on March 2, 1999.

The Corporate Services Committee reports, for the information of Council, having requested the Commissioner of Corporate Services to submit a report to the Corporate Services Committee:

(a)providing an updated policy on the process the City will use in future on proposed sale of Surplus City-owned property; and

(b)on the advisability of the City initiating a rezoning process on surplus City-owned property prior to offering the property for sale, where appropriate.

The Corporate Services Committee submits the following report (February 1, 1999) from the Commissioner of Corporate Services:

Purpose:

To authorize the disposal of the property municipally known as 80 Turnberry Avenue.

Funding Sources, Financial Implications and Impact Statement:

Revenue of $2,550,000.00, less closing costs and the usual adjustments is anticipated.

Recommendations:

It is recommended that:

(1)the Commissioner of Corporate Services be authorized to accept the Offer to Purchase, as submitted, in the amount of $2,550,000.00 as detailed herein;

(2)the Commissioner of Finance in consultation with the Commissioner of Corporate Services be authorized to direct a portion of the sale proceeds on closing to fund the expropriation of 11RHounslow Heath Road;

(3)the City Solicitor be authorized and directed to take the appropriate action to complete the transaction on behalf of the City and be further authorized to amend the closing date to such earlier or later date as he considers reasonable; and

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

Council Reference/Background/History:

80 Turnberry Avenue is a vacant site of approximately 3.78 acres with an industrial zoning designation. Extending northerly from the north limit of Turnberry Avenue, the property is situated immediately west of residential properties fronting onto the west side of Old Weston Road. A Notice of Vesting/Statutory Declaration was registered April 22, 1994, thereby vesting title to this property in the name of the Corporation of the City of Toronto.

The subject property has been vacant since March 1995. A three storey building once located on the site sustained extensive fire damage and has since been demolished.

Details of the property are set out below:

Property Address:80 Turnberry Avenue.

Legal Description:Part of Township Lot 35, Concession 3 from The Bay,

City of Toronto, being Parts 1-4 inclusive, Plan 64R-16034.

Approximate Lot Size:83.82 metres (257 feet) fronting on the north side of Turnberry Avenue; 224.33 metres (736 feet) depth; approximately 3.78 acres.

Location:North side of Turnberry Avenue, west of Old Weston Road, north of St. Clair Avenue West.

Improvements:None.

Zoning:I3 D5.

City Council, at its meeting of September 18 and 19, 1995 [ECR22(5)] declared 80 Turnberry Avenue surplus to the needs of the City and directed the Acting Commissioner of City Property to give notice to the Public of the impending sale. Notice was posted and the property marketed. Two offers were received by the submission deadline, the highest offer being in the amount of $350,000.00, and City Council decided that all tenders received for the sale of 80 Turnberry Avenue be refused and that the site be considered for other possible future uses. The property was then withheld from sale pending the outcome of the Yards Rationalization Study. The outcome dictated that 80 Turnberry Avenue was not required for Works Yard expansion purposes. A staff appraisal dated August 19, 1998 estimated the market value of the subject property to be in the range of $1,875,000.00 to $2,225,000.00.

A recommendation is contained in this report to allow the Commissioner of Corporate Services to direct a portion of the proceeds of this sale to fund the expropriation of 11R Hounslow Heath Road as noted in Clause No. 21 of Report No. 7 of The Corporate Services Committee adopted by Council at its meeting on June 3, 4, and 5, 1998. The Commissioner of Corporate Services will provide the Commissioner of Finance with the appropriate amount to set aside for this purpose.

Comments and/or Discussion and/or Justification:

Pursuant to the September 18 and 19, 1995 authority, the property was listed for sale with JDF Realty Ltd. on November 3, 1998 on an exclusive "Proposal Call" basis. Eight (8) offers were received by the submission deadline. The two highest offers which were substantially in excess of the balance of the offers were in the amount of $2,507,000.00 and $2,000,000.00 respectively. The highest offer contained conditions while the second highest offer was unconditional. Subsequent to the submission deadline, the purchaser with the highest offer submitted a letter withdrawing the conditions. Staff then invited the purchaser with the second highest offer to reconsider their offer. This purchaser submitted a revised unconditional offer in the amount of $2,550,000.00. The net result of all offers is detailed in Appendix "A" attached.

The highest offer summarized below is recommended for acceptance:

Offer Received From:Green Banner Developments Limited.

Amount of Offer:$2,550,000.00.

Deposit:$255,000.00 (certified cheque).

Intended Use:Residential Dwellings.

Acceptance Date:March 9, 1999.

Closing Date:45th day following expiry of "Due Diligence" Period.

Solicitor:Fogler Rubinoff.

Commission:Three (3) per cent. plus G.S.T., payable on closing of the transaction.

Listing Broker:JDF Realty Ltd.

Selling Broker:Canada Group Realty Corporation.

Conclusion:

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

Contact Name:

Michelle DeVey, Valuator-Negotiator, Real Estate Services, (416)392-8160, Fax No.: (416) 392-4828, E-Mail Address: michelle_devey@metrodesk.metrotor.on.ca.

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The Corporate Services Committee reports, for the information of Council, having also had before it the following communication and confidential report:

(i)(February11, 1999) from Ms. Barbara Grossman, Barrister and Solicitor, Fraser Milner, requesting an opportunity to appear before the Corporate Services Committee regarding the sale of the property located at 80 Turnberry Avenue, Toronto, Ontario; and

(ii)(February 15, 1999) from the Commissioner of Corporate Services, providing a supplementary report to the report dated February 1, 1999, respecting the Sale of Surplus City-owned Property located at 80 Turnberry Avenue; and attaching a communication (February 12, 1999) from Ms. Barbara Grossman, Barrister and Solicitor, Fraser Milner.

(A copy of the map attached to the report dated February 1, 1999, from the Commissioner of Corporate Services; and the confidential communication attached to the report dated February 15, 1999, from the Commissioner of Corporate Services, 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.)