Re: Burano
From the Star... so it's ORC land?
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Cadillac of dealers closing
Mar 02, 2007 04:30 AM
Tony Wong
business reporter
Bay Street brokers looking to spend bonus money on an upscale Cadillac would most likely have ended up at Addison On Bay, one of Toronto's most historic car dealerships.
But in a few weeks, they'll have to look elsewhere.
The dealership is closing its doors this month.
The site north of the intersection of Bay and College and across from Toronto Police Services headquarters has been a dealership since 1925.
But Toronto's real estate boom has made it increasingly difficult for businesses that need large showrooms to operate on prime land in the city.
"This decision was a difficult one and one that was ultimately based on economic factors, including the increasing cost of maintaining a central downtown location," Clarke Addison, president of the dealership, wrote in a letter to customers.
Addison said the business would be closed on or before March 16.
"Watching the business grow and prosper has been the trip of a lifetime."
In 1999, the Addison showroom at 832 Bay St. was designated a historic property by the City of Toronto.
The building originally housed the Toronto dealership of Col. Sam McLaughlin, once president of General Motors of Canada.
The handsome structure is constructed of steel with brick cladding and limestone trim.
An elegant interior showcases plaster columns and ceiling beams, and mouldings in the first-floor new car showroom.
Since 1955, Addison has been the tenant, renting the property from the Ontario government.
But in a controversial deal in 2000, Addison Properties Ltd. bought the site in addition to another piece of land on the east side of the street from the Ontario Realty Corp.
The site was sold without tender for what some media reports pegged at one-third its market value.
An Ontario government spokesperson said at the time that Addison was given the exclusive right to buy the properties without a competitive bidding process because the dealership was a long-term tenant.
Since then, the value of the site has further skyrocketed with the increasing popularity of condominium development.
The site is particularly attractive for development because of its proximity to the luxury shops of Bloor Street to the north, the Bay Street financial district to the south, Queen's Park to the west and Yonge Street to the east.
The former used car lot across the street has already been developed as an upscale condominium and retail project.
It is unclear what plans Addison has for the existing heritage site.
Addison management did not return calls yesterday.
Clarke Addison said in his letter to customers that the majority of staff would be relocated to other Addison businesses in the GTA.
The company has new- and used-car dealerships in Mississauga and Toronto selling various General Motors brands such as Buick, Pontiac, GMC and Cadillac.