Yonge and Bloor condo nears critical deadline
Jackson Proskow, Global News; With files from Megan O'Toole, National Post Published: Friday, April 17, 2009
The city's most-watched condo project remains an empty lot, and is quickly approaching its do-or-die date.
Developer Bazis International is on the second extension of its "condition date" to start building a planned 80-storey condo tower called One Bloor, a massively popular project that, upon its launch in late 2007, had buyers camped outside the sales office for a week.
But the bulldozed lot still sits empty, and on June 15, Bazis enters a 31-day period during which it can serve notice to buyers that it is cancelling construction. At that point, deposits would be refunded.
Mark Cosman, a commercial real estate lawyer, signed up to buy a one-bedroom unit at One Bloor before the sales office even opened. "Bloor and Yonge, it couldn't be any better," he said. "Centre ice in the city of Toronto."
But with the fate of the project in doubt, Mr. Cosman-- like many buyers -- has become increasingly concerned about his investment.
"Now, if I could get out, from a legal perspective, I would," he said.
The holdup in construction is linked to the failure of U. S. investment bank Lehman Brothers, which was helping finance the project. With Lehman in the midst of bankruptcy proceedings, the money that would have helped finance the condo is also tied up in court.
If Bazis does not give cancellation notice during the 31-day period, the purchase agreements become binding. Yet if the construction launch still lags, it becomes a much more difficult process for buyers to recover their deposits.
All deposits up to $40,000 are guaranteed by provincial regulator Tarion.
Royal LePage realtor Anna Cass recalled being lined up outside the sales office for eight days back in November, 2007, during the height of the hysteria surrounding One Bloor. Prices soared, and almost all of the units were sold. The value of the location has not changed, Ms. Cass said, but lately she has been fielding calls from concerned buyers seeking clarity on the project's status.
"They're excited about the project, they're nervous about the project, but they're still hopeful," she said. "They want it to happen."
Bazis International did not return calls requesting comment, but in a recent letter to purchasers, the developer said its extension of the condition date would "ensure that both our and your investment in the One Bloor project remain a success."
The letter also advises buyers to maintain sufficient funds in their bank accounts "in the event that a further deposit is due and payable in accordance with the terms of the purchase agreement."
