Toronto Discovery at Concord Park Place | ?m | 28s | Concord Adex | BDP Quadrangle

[cruzin4u]

how does a company that was only in business for 6 months owe millions in backpayments?

Spot Coffee made a big mistake by signing a 10 year lease. They were paying $10,000 a month in rent. Their pricing for their sandwiches was very high ($12 for a turkey bacon wrap for example), so many people didn't bother eating at Spot - esp. considering McDonalds and IKEA is next door. Spot thought that they would be successful at this location because they were successful downtown, however the demographic is completely different (a part from the demographic, the parking is an issue as it's paid street parking). Spot never paid rent to Concord for those 6 months, so they immediately owed $60,000+. Concord then went after them for the 10 year lease. So 10 years equated to around 1.5 million in lost retail revenue for Concord. So $60,000 + $1.5 million and legal costs = Spot Coffee owes a lot of money.

I guess the only way out of this is for Spot to find someone to take over the lease, which I think will prove to be very difficult.

taal: I just took these right now, but I can take some during the day (perhaps drum118 has some images in his vast collection) - there are retail units on both sides of the buildings.

But you can clearly see the issue here. In this picture there are 3 retail units, excluding BMO (which happens to do somewhat well - but then again, they are a bank with deep pockets that can afford the lease rates). Even if you were to open up a store here, signage woulud definitely be an issue. Another issue, how do I get people to those retail units? They are fronting a Piazza.

In the second picture, you can see the main road, but again - you need to get the drivers attention and then when you do, they need to cough up money for side parking. Concord did offer underground parking for Spot Coffee, however it's more of an inconvenience for people to buzz the concierge to get to the parking + take an elevator up to get to the retail unit.

Spot was fronting the street, much like BMO is, and they couldn't even make a profit. The retail units are sitting empty and I feel it'll be that way for quite a while.

 

[taal]

eek yea, maybe when the development hits critical mass things will change.

 

[drum118]

I though I took some shots after Spot open, but Flickr search said no.

Here is what Spot had and that the whole front and inside retail space in this shot.

What I saw during the construction of the unit, it was not cheap and was true when I saw it finished and open.

BMO Unit before construction of it

Until there is more development in the area, going to be hard to make ago for a business with a high turn over due to failure. 6 months to 5 years is the standard failure rate time frame with most under 2 years.

I believe there is a high class place coming to Tango and lets see how long it survives.

As I have said in the past, retail is not a given at the bottom of every development and it take up to 5 years before someone moves in, if not more.

 

[In4matt]

Another quick question about this area. I was wondering if anyone knows if there is or are plans to build a pedestrian bridge over the rail corridor or an underground path to connect to Leslie station?

 

[interchange42]

No plans that I am aware of. When Canadian Tire was planning to move their HQs here, that building would have had a connection under the tracks to Leslie station. At some point some other firm will redevelop that spot, and one would assume that a direct connection to the subway would be a boon to whichever company's employees — and the neighbourhood at large.

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[datamouse]

There's an approved zoning by law for an office building in the vacant land there that was to connect with Leslie but Canadian Tire decided against moving their offices at the time.

 

[MafaldaBoy]

15 September 2013:

 

[drum118]

Spot Coffee is being replace by a medical centre to open this fall. Other than BMO, still empty considering Emerald City has lease most of their units with only 2 to go.

 

[cruzin4u]

Spot Coffee is being replace by a medical centre to open this fall. Other than BMO, still empty considering Emerald City has lease most of their units with only 2 to go.

The dental office is scheduled to open soon (or already is). Also, UMEKEN USA opened up a few months back - their first location in Canada I believe. A medical centre is not very enticing - I guess no one can afford the ridiculous rental costs of the units.

 

[interchange42]

Earlier in October:

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[moon2n]

well, overrall for these buildings, what's your ranking (0 - 10 points)?

 

[Edward Skira]

 

[DowntownCoder]

Spot Coffee made a big mistake by signing a 10 year lease. They were paying $10,000 a month in rent. Their pricing for their sandwiches was very high ($12 for a turkey bacon wrap for example), so many people didn't bother eating at Spot - esp. considering McDonalds and IKEA is next door. Spot thought that they would be successful at this location because they were successful downtown, however the demographic is completely different (a part from the demographic, the parking is an issue as it's paid street parking). Spot never paid rent to Concord for those 6 months, so they immediately owed $60,000+. Concord then went after them for the 10 year lease. So 10 years equated to around 1.5 million in lost retail revenue for Concord. So $60,000 + $1.5 million and legal costs = Spot Coffee owes a lot of money.

I guess the only way out of this is for Spot to find someone to take over the lease, which I think will prove to be very difficult.

Very belated followup:

[O]n January 29, 2015, [...] SPoT Coffee, commenced legal action against Concord Adex Investments Limited ("Concord Adex"), and filed a claim against Concord Adex seeking damages for negligent misrepresentations in a case relating to a lease it entered into with Concord Adex on October 29, 2010. [...]

SPoT Coffee is pleased to announce today that, after 7 years culminating in a 5-day final trial that took place in the first week of March of this year, the Honourable Justice S. Vella of the Ontario Superior Court of Justice found in favour of SPoT Park Place and awarded damages for SPoT Park Place's operating losses of $269,296 and damages for the costs of building the SPoT Park Place café of $757,755.34, as well as interest on the damages to run from January 29, 2015, the date the claim was filed by SPoT Park Place, until such time Concord Adex makes full payment of the damages to SPoT Park Place.

This is the sort of thing that usually gets settled well in advance of a trial, so I sense there was a lot of intransigence, bad blood, or both here.