Mayor Katz defends deal that saw city expropriate land and then sell it at loss

Mayor Sam Katz is defending a deal made by the city involving an Osborne Village car wash.

A scathing real estate audit of city practices released last week concluded taxpayers may have been soaked by a transaction involving the Mid-Town Car Wash.

The city expropriated the property for $3.36 million to make room for the rapid transit corridor.

Less than 20 per cent of the land was actually used and the city sold the car wash for a $1.8 million loss.

Katz told CTV Morning Live the deal was a creative one where the city actually recouped $1.5 million. He said otherwise the property likely would have been turned into park space with no value.

In the report, city staff maintain the property was resold to the highest bidder.