Derelict Building - North-east Corner of

Brimley Road and Sheppard Avenue East

Ward 18 - Scarborough Malvern

The Scarborough Community Council recommends that City Council direct the Director of Municipal Licencing and Standards:

(1)to take all necessary steps to commence proceedings under all applicable laws up to the point of requesting authority for the City to demolish the building at the north-east corner of Brimley Road and Sheppard Avenue East; and

(2)to report quarterly, or as necessary, to the Scarborough Community Council on the status of the actions taken to date.

Recorded Vote:

Upon the question of the adoption of the foregoing recommendation:

Yeas:Councillors Ashton, Balkissoon, Berardinetti, Duguid, Kelly, Mahood, Moeser, Tzekas

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Nays:Councillor Altobello -1

The Scarborough Community Council submits, for the information of City Council, the following report (December 23, 1998) from the Director and Deputy Chief Building Officer:

Purpose:

To report on the condition of the derelict building at the above noted location, as directed by Scarborough Community Council.

Recommendation:

That Scarborough Community Council receive this report for their information.

Background:

On February 22, 1995, Pacific Empire Developments Inc. (the original owners) filed an application for building permit to construct a four storey reinforced concrete building, with two levels of underground parking containing retail, office and restaurant uses, and having a gross floor area of 11,445 square metres.

A foundation permit was issued on June 1, 1995 to allow construction to begin. On August 8, 1995, a superstructure permit was issued. Inspections were conducted on the project by all City disciplines, along with professional design consultants until construction ceased at the end of January, 1996 in the stage as it remains to date; namely, 3 storeys of exposed reinforced concrete floor slabs and columns and partial erection of structural steel columns, beam and joists that would form the roof. In addition, some plumbing and mechanical work was completed in the underground parking levels.

The site is surrounded by a combination of 8 foot high fencing and hoarding. Sometime after this, the project went into receivership and was assumed by the mortgagor, Bank of China.

During the winters of 1996 and 1997, the Building Division ordered Bank of China to provide frost protection of the buildings foundations, as well as site safety measures which were completed within our required time frame. To date, they are maintaining the requested frost protection through installation of six electrical heat furnaces located in the lower parking level as designed by a professional engineer.

In early 1997, Bank of China, at our request, retained a professional engineer design consultant to assess the structural stability and condition of the partially-built structure. A report was submitted to the Building Division with recommendations for repairs and/or remedial action. At the end of March, 1997, Bank of China complied with all the recommendations as outlined in that report.

In the summer of 1997, Bank of China was asked to assess the condition and security of the hoarding/fencing erected around the site and make the necessary replacement and repairs as required. Following this assessment, Bank of China hired a contractor to do the corrective work. From the time the work on the project ceased, our Division has periodically inspected the site in co-operation with Bank of China officials to ensure that safety measures were maintained.

On September 16, 1997, the previous Scarborough Council approved an application to amend the official plan and zoning by-law to add hotel uses. This was initiated by an interested purchaser of the site. Unfortunately, in September 1998 we learned from Bank of China that the purchase transaction was not finalized as indicated in the attached letter of September 22, 1998. However, Bank of China is currently negotiating with a potential purchaser as further explained in the attached letter of December 16, 1998.

Conclusion:

The last consultant engineering assessment and report done in 1997 revealed that the building as it stands was structurally sound. In addition, our recent inspection on December 17, 1998, found the building has no serious structural items of concern, the two lower underground parking levels free of standing water, the six electrical heating furnaces located in the lower parking level that provide heat to protect the foundation from freezing operational, and the site hoarding/fencing secure and tight.

Attached for your information is a letter that outlines what any new owner would have to undergo to activate the existing permit and proceed with construction.

Any new building design would require new applications to be filed for building permit and Site Plan Control.

Contact name:

Joe Debono, Manager

Inspections East District

Team 2

Tel: (416) 396-7316

Fax:(416) 396-4266

E-mail:debono@city.scarborough.on.ca

The Scarborough Community Council submits, for the information of City Council, the following report (February 4, 1999) from the City Solicitor:

Purpose:

To report as requested by Scarborough Community Council at its meeting held on January 20, 1999, with respect to actions which can be taken to facilitate the completion or demolition of the derelict building located at the northeast corner of Brimley Road and Sheppard Avenue East. The City Solicitor was also requested to investigate and report on the ownership of the property.

Funding Sources, Financial Implications and Impact Statement:

There may be substantial future costs depending on the course of action decided by City Council.

Recommendations:

For information.

Council Reference/Background/History:

At its meeting held on January 20, 1999, Scarborough Community Council considered the report of the Director and Deputy Chief Building Official dated December 23, 1998 with respect to the derelict building located on the subject property.

Staff of Planning, Building, Municipal Standards, Economic Development and Legal Divisions met to try to determine an affirmative action plan.

Pursuant to Community Council's direction, extensive searches are underway in the Land Titles Office and the Court offices to ascertain the legal status of the property. At the time of the writing of this report, the results of the searches have not been received but if the information is available, Community Council will be briefed at the meeting.

The Deputy Chief Building Official advises that the building permit for the structure will be revoked on February 5, 1999 pursuant to S.8(10)(c) of the Building Code Act which provides that a building permit may be revoked where the construction of the building is substantially suspended or discontinued for a period of more than one year. This decision is subject to appeal within 20 days to a judge of the Ontario Court.

The East District Manager of Municipal Standards advises that on revocation of the building permit, expiration of the appeal period and subject to ascertaining all parties with an interest in the property, a Notice to Comply to demolish the building will be issued pursuant to By-law 20483 of the former City of Scarborough.

If the building has not been demolished within 6 weeks of the Notice, an Order to Comply will issue. As there are rights of appeal, it may be at least a year before any action can be taken by the City.

At that time, Municipal Standards would be in a position to report to Council requesting authority to demolish the building. In view of the magnitude of the structure, the demolition would likely be subject to public tender. The cost is estimated to be at least $300,000.00+. The City can recover its expenses in a like manner as municipal taxes. The problem is that the outstanding mortgages, liens plus the recovery of the demolition costs may exceed the value of the land, thereby hampering its sale to a bone fide purchaser.

If the legal status of the property is contentious, the City will become involved in legal actions which could be lengthy and costly and which will also hamper any potential sale and completion of the building.

Staff are aware of two recent situations involving derelict buildings. In Ajax, a tax sale was initiated with respect to Verona Mall. Before the matter was finalized, the property was sold and the Town and the new owner are currently cooperating to develop the property.

An office building near the intersection of Don Mills Road and Eglinton Avenue East remained incomplete for a substantial period of time, was partially demolished and converted into a place of worship a few years ago. Staff are currently trying to determine what actions were taken by the former City of North York to deal with this situation and will be in a position to report further at the Community Council meeting.

With respect to the possible completion of the building, the Economic Development Division advises that they are prepared to assist the owner and any potential purchaser of the property to develop and complete the site in an appropriate manner. The property is privately owned and, therefore, it is difficult, if not impossible, for the City to take action to complete the building.

Conclusions:

Although the derelict building is unsightly, it is structurally sound. Action can be taken to have the building demolished, however, if the City is to proceed with such action, substantial costs will be involved. The accompanying legal proceedings are likely to be complicated and lengthy. Staff are working to obtain more information to assist Community Council and this information should be available for the meeting on February 17, 1999.

Contact Name:

Anna Kinastowski, Director

Planning and Administrative Tribunal Law

(416) 392-0080

(416) 392-0005 (fax)

akinasto@toronto.ca