Item - 2008.GM12.7
Tracking Status
- City Council adopted this item on March 3, 2008 with amendments.
- This item will be considered by Government Management Committee on February 14, 2008. It will be considered by City Council on March 3, 2008, subject to the actions of the Government Management Committee.
GM12.7 - Sale of City-owned Leased Property at 192A Bloor Street West to McDonald’s Restaurants of Canada Limited
- Decision Type:
- ACTION
- Status:
- Amended
- Ward:
- 20 - Trinity-Spadina
City Council Decision
City Council on March 3, 4 and 5, 2008, adopted the following motions:
1. The Offer to Purchase from McDonald’s of that portion of the City-owned land located at 192A Bloor Street West being Part of Lot 1 on Registered Plan 289, the said portion being shown as Parts 1, 2 and 5 on Sketch No. PS-2007-278 (the “Property”) be accepted, and that each of the Chief Corporate Officer and the Director of Real Estate Services be authorized severally to accept the Offer on behalf of the City.
2. The surplus declaration with respect to that portion of Lot 1 on Registered Plan 289 depicted as Parts 3 and 4 on Sketch PS-2007-278 be rescinded.
3. The City enter into an encroachment agreement with McDonald’s to allow the existing structure and appurtenances to remain within that portion of the land to be retained by the City shown as Part 3 on Sketch PS-2007-278 for the life of the existing building.
4. The City Solicitor be authorized to complete the transaction(s) on behalf of the City, including making payment of any necessary expenses and amending and/or waiving the closing and other dates to such earlier or later date(s) and on such terms and conditions as she may from time to time consider reasonable.
5. Authority be granted to direct a portion of the proceeds of closing to fund the outstanding expenses related to the property and the completion of the sale transaction.
6. The confidential information in Attachment 1 to the report (March 3, 2008) from the Chief Corporate Officer (GM12.7c) and to the reports dated January 3, 2008 (GM12.7), and February 13, 2008 (GM12.7a), remain confidential permanently.
Confidential Attachment 1 to the report (January 3, 2008) from the Chief Corporate Officer (GM12.7), remains confidential in its entirety, in accordance with the provisions of the City of Toronto Act, 2006, as it contains information related to the security of the property of the municipality or local board.
Confidential Attachment 1 to the report (February 13, 2008) from the Chief Corporate Officer (GM12.7a), remains confidential in its entirety, in accordance with the provisions of the City of Toronto Act, 2006, as it contains information related to the security of the property of the municipality or local board.
The confidential communication (February 28, 2008) from the Government Management Committee (GM12.7b), remains confidential in its entirety, in accordance with the provisions of the City of Toronto Act, 2006, as it contains information related to the security of the property of the municipality.
Confidential Attachment 1 to the report (March 3, 2008) from the Chief Corporate Officer (GM12.7c), remains confidential in its entirety, in accordance with the provisions of the City of Toronto Act, 2006, as it contains information related to the security of the property of the municipality.
City Council Decision Advice and Other Information
City Council recessed its public session and met as Committee of the Whole in two closed sessions on March 5, 2008 and considered confidential information on this Item as it relates to the security of the property of the municipality or local board.
Confidential Attachment - The security of the property of the municipality or local board
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-10499.pdf
Attachment 2 - Appendix A - Terms and Conditions
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-10500.pdf
Attachment 3 - Appendix B - Site Map & Sketch
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-10501.pdf
Background Information (City Council)
(March 3, 2008) Supplementary report from the Chief Corporate Officer on the Sale of City-owned Leased Property at 192A Bloor Street West to McDonald’s Restaurants of Canada Limited (GM12.7c)
https://www.toronto.ca/legdocs/mmis/2008/cc/bgrd/backgroundfile-49420.pdf
Appendix 1 to the Supplementary Report - Terms of Lease Back of Stratified Portion of the Property
https://www.toronto.ca/legdocs/mmis/2008/cc/bgrd/backgroundfile-49422.pdf
Confidential Attachment 1 to GM12.7c
Declared Interests (City Council)
Councillor Shelley Carroll - in that her father is a retired Vice President of Real Estate for MacDonald’s and may have been involved in the discussion regarding this property.
Deputy Mayor Joe Pantalone - in that he has a property interest in the vicinity.
7a - Supplementary Report on the Sale of City-Owned Leased Property at 192A Bloor Street West to McDonald's Restaurants of Canada Limited
Confidential Attachment - The security of the property of the municipality or local board
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-11190.pdf
GM12.7 - Sale of City-owned Leased Property at 192A Bloor Street West to McDonald’s Restaurants of Canada Limited
- Consideration Type:
- ACTION
- Ward:
- 20 - Trinity-Spadina
Confidential Attachment - The security of the property of the municipality or local board
Origin
Recommendations
The Chief Corporate Officer recommends that:
1. The Offer to Purchase from McDonald’s of that portion of the City-owned land located at 192A Bloor Street West being Part of Lot 1 on Registered Plan 289, the said portion being shown as Parts 1, 2 and 5 on Sketch No. PS-2007-278 attached (the “Property”) be accepted substantially on the terms and conditions outlined in Appendix “A” to this report, and that each of the Chief Corporate Officer and the Director of Real Estate Services be authorized severally to accept the Offer on behalf of the City.
2. The surplus declaration with respect to that portion of Lot 1 on Registered Plan 289 depicted as Parts 3 and 4 on Sketch PS-2007-278 be rescinded.
3. The City enter into an encroachment agreement with McDonald’s to allow the existing structure and appurtenances to remain within that portion of the land to be retained by the City shown as Part 3 on Sketch PS-2007-278 for the life of the existing building.
4. The City Solicitor be authorized to complete the transaction(s) on behalf of the City, including making payment of any necessary expenses and amending the closing and other dates to such earlier or later date(s) and on such terms and conditions as she may from time to time consider reasonable.
5. Authority be granted to direct a portion of the proceeds of closing to fund the outstanding expenses related to the property and the completion of the sale transaction.
6. Council authorize the public release of the confidential information in Attachment 1, if Council accepts the Offer and the transaction is completed to the satisfaction of the City Solicitor.
Summary
Having completed negotiations with McDonald’s, we are seeking authority to enter into an agreement of purchase and sale with McDonald’s substantially on the terms and conditions outlined in the attached Appendix "A".
The terms for completing the transaction, as set out herein, are considered to be fair, reasonable and reflective of market value.
Financial Impact
If Council accepts the Offer to Purchase from McDonald’s, revenue in the amount of $3,380,000.00 plus GST, if applicable, less closing costs and the usual adjustments, is anticipated from this sale.
If Council chooses not to accept the Offer to Purchase from McDonald’s, staff shall resume negotiations with McDonald’s with respect to a new rental rate, which may be higher or lower than the $195,000.00 per annum estimated by staff and applicable to the lease renewal term commencing January 1, 2005 for 33 years.
The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.
Background Information
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-10499.pdf
Attachment 2 - Appendix A - Terms and Conditions
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-10500.pdf
Attachment 3 - Appendix B - Site Map & Sketch
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-10501.pdf
7a - Supplementary Report on the Sale of City-Owned Leased Property at 192A Bloor Street West to McDonald's Restaurants of Canada Limited
Confidential Attachment - The security of the property of the municipality or local board
Origin
Recommendations
The Chief Corporate Officer recommends that:
1. Recommendations 1 to 5 contained in the report dated January 3, 2008 from the Chief Corporate Officer (Item GM12.7) with respect to the sale of a City-owned surplus property municipally known as 192A Bloor Street West, currently leased to McDonald’s Restaurants of Canada Limited, be adopted with amendments as described in Recommendations 2 and 3 below.
2. If McDonald’s makes an application(s) to redevelop the Property, either on its own site or in conjunction with adjacent properties, McDonald’s shall share equally with the City the enhanced value based on a formula as detailed in the Offer to Purchase as amended.
3. The irrevocable date in the Offer to Purchase be extended to March 11, 2008 and the closing date be extended to April 2, 2008.
4. The confidential information in Attachment 1 to this report and to the report dated January 3, 2008, remain confidential.
Summary
Financial Impact
The financial impact is the same as described in Item GM12.7, irrespective of whether or not this report is adopted.
The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.
Background Information
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-11190.pdf