Sale of Surplus Spadina Project Property

at 300 Spadina Road (Ward 23 - Midtown)

The Corporate Services Committee recommends the adoption of the following report (April1,1999) from the Commissioner of Corporate Services:

Purpose:

To authorize the disposal of the property municipally known as 300 Spadina Road.

Funding Sources, Financial Implications and Impact Statement:

Revenue in the minimum amount of $480,000.00, 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 will be realized from the sale of this property if the recommendations in this report are approved.

Recommendations:

It is recommended that:

(1)the Commissioner of Corporate Services or the Executive Director of Facilities and Real Estate be authorized to accept this offer in the amount of $480,000.00 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. CP300J56197;

(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 300 Spadina 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 requirements have 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 tenants 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. A new appraisal was secured with an effective date of February 28, 1997 in the amount of $510,000.00, and the property was offered to the tenant for this sum.

Comments and/or Discussion and/or Justification:

The tenants, Mr. David Cobden and Mrs. Lorraine Cobden rejected the City's appraised value, and requested the matter of market value be referred to arbitration in conformance with Council's directive to have a third party arbitrator attempt to bring the parties together. (Clause No. 4 of Report No. 9 of The Corporate Services Committee adopted as amended by Council at the meeting held on July 8, 9, and 10, 1998). An arbitration hearing was held on January 27, 1999 at which time both parties presented oral and written submissions in support of their respective estimates of market value. It is noted the City's value was based upon the most recent appraisal in the amount of $510,000.00. In a written decision, Ms. Patricia Dunn concluded that $480,000.00 to $490,000.00 more accurately represents fair market value as of February 28, 1997.

A summary of the property and the terms and conditions in Mr. and Mrs. Cobden's offer to purchase are as follows:

Property Address:300 Spadina Road.

Legal Description:Lot 65, Registered Plan 930, City of Toronto.

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

54.25 metres (178 feet) depth.

Location:West side of Spadina Road, south of St. Clair Avenue West.

Improvements:Detached, 2.5-storey, brick dwelling.

Occupancy Status:Tenanted.

Date Interest Expressed:February 28, 1997.

Amount of Offer:$480,000.00.

Deposit:$24,000.00 (bank draft).

Purchaser:David Cobden and Lorraine Cobden.

Closing Date:June 30, 1999.

Terms:Cash on closing, subject to the usual adjustments and registration of an Option to Purchase.

This is a proposed sale to an existing tenant and is based on market value as at February 28, 1997, Council directed that comparable sales data be provided for property sales in the Spadina corridor. Appendix "A" identifies three comparable sales located in the vicinity of the subject property.

The Agreement with the Province of Ontario authorized by Clause No. 1 of Report No. 25 of the former Metropolitan Corporate Administration Committee as adopted by Council on December 4, 1996 provides that the Provinces share of the sale proceeds is to be based upon current market value. An appraisal report with an effective date of October 19, 1998 estimates the value of the property at $570,000.00.

Conclusion:

The sale of this property at $480,000.00 is considered fair and reasonable and reflective of market value as at February 28, 1997.

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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Appendix "A"

300 Spadina Road - Comparable Sales

The following three addresses represent comparable sales of properties that are similar to the residence which forms the subject matter of this report. These three properties consist of detached, 2.5 storey brick dwellings located in the vicinity of the subject property.

(A copy of the map attached to the foregoing report was forwarded to all Members of Council with the April19, 1999, agenda of the Corporate Services Committee, and a copy thereof is also on file in the office of the City Clerk.)