Suite deal in Regent Park
BY SUE-ANN LEVY, TORONTO SUN
FIRST POSTED: SUNDAY, MARCH 25, 2012 12:00 AM EDT
TORONTO - It was late April of 2009 when NDP councillor Pam McConnell joined a cast of prominent politicians and social housing providers to kick off the second phase of the $1-B Regent Park revitalization.
Flanked by then-mayor David Miller, Daniels Corp. president Mitch Cohen, MPP George Smitherman and former Toronto Community Housing Corp. (TCHC) CEO Derek Ballantyne, the 30-year politician was all smiles as Canada’s largest landlord announced that the first market condo in the rebuilt section of Regent Park —293-unit One Cole St. -- would go on sale within a matter of weeks.
No doubt they had reason to be ecstatic. The 15-year transformation of the city’s oldest social housing project -- the 50-year-old highly isolated Regent Park neighbourhood -- into a mixed-use community with its own bank and grocery store, 3,000 units in spanking new upscale market condos and a target of 2,783 affordable housing units had reached its first major milestone.
It didn’t hurt that nearly $200-million in public money had already been pledged for the revitalization – which was to include a new aquatic centre, a park and arts centre.
McConnell popped up again at the April 2010 official opening of four affordable buildings for low-income Regent Park residents (two of them located outside of the neighbourhood) effusively declaring that she was the local councillor, the vice-chairman of the city’s affordable housing committee and a new resident of the revitalized community.
“These new homes contribute greatly to improving Toronto’s economic and social well-being,” she said.
What she didn’t suggest at the time is that the development would also greatly improve the economic well-being of those who bought into it.
Nor did she mention that she, or any of the other condo buyers, would not actually be rubbing shoulders with the poor.
In this new ‘mixed-use’ socialist Utopia, the upwardly mobile would be living in gleaming high-rises in the middle of the action while the poor would be in separate quarters, some located at least 1.5 km away from the Regent Park footprint.
Never at any time while lobbying for the project in council or in any other public forum did the 30-year councillor declare she might have a pecuniary interest in the development either.
On May 26, 2010, McConnell and her husband James, closed on Unit 808 in One Cole St – a 1,200-square-foot two-bedroom condo with a full wrap-around balcony facing southwest.
She paid $418,464 for the Queen Pam unit – one of the largest and arguably best situated in the building.
McConnell, who has repeatedly claimed she doesn’t drive because of vision problems, made sure she got one of the closest parking spots to the elevators too.
But she wasn’t the only person charged with overseeing this massive revitalization who would snatch up the first and in many cases, the best, units in the adjoining One Cole and 25 Cole twin condo buildings.
Documents obtained by the Toronto Sun reveal that three members of the board of the Dundas & Parliament Development Corp. (D&PDC) – the 50-50 joint venture between TCHC and Daniels created to manage Phase 1 of the revitalization – bought units as did Derek Ballantyne, the now departed CEO of TCHC.
Ballantyne and Gordon Chu, who left the TCHC under a cloud in 2010, purchased similar units – both facing north and both 550-sq.-ft with balconies – for just over $200,000.
Ballantyne’s partner, Toronto Star editorial writer Kerry Gillespie, is named on the deed as a joint tenant while Chu’s wife, Cynthia, is a joint tenant on his purchase.
Daniels president Cohen, a board member of D&PDC owns two prime units in 25 Cole, both with southwest exposure and balconies.
He purchased his units through Lewis Properties, a company on which he serves as president and his wife Janice Lewis, as vice-president.
Daniels v-p Niall Haggart, who sits on the board of Daniels Eastside Corp. which presided over the commercial interests in Regent Park, also picked up a prime southeast-facing unit in 25 Cole St. through his company, Me-Three Investments.
Daniels v-p Martin Blake, the point person on Regent Park and another member of the D&PDC board, rents out his 900-sq.-foot penthouse unit facing southwest in 25 Cole St. for $1,950 a month.
In a recent interview, Blake said he sees the “tremendous value that’s coming” with Regent Park.
“Obviously I’m excited about being a part of something like that,” he said.
He bristled when asked about the other purchases by Daniels officials, saying the names of those who buy are strictly confidential.
Not so.
A review of the MPAC assessment rolls not only confirms the purchasers but shows Daniels Northtowne Corp. and the D&PDC own another 14 units in the twin 25-One Cole buildings and the third market condo at 260 Sackville St. (called One Park West).
Licensed private investigator, Bert O’Mara, who produced the report on the purchases, said the public servants who purchased the units appeared on paper to have a “laissez-faire attitude” about what they’d bought as there was no attempt to cover their tracks.
Ballantyne did not respond to my repeated requests for an interview. Chu could not be tracked down at any of the addresses provided on his tax or Land Registry documents.
Haggart and Cohen referred me back to Blake, who sent an e-mail late last week indicating that the twin Cole buildings went to market in May of 2009, in the midst of the “worst economic meltdown” since the Great Depression.
He added that senior execs from Daniels “expressed confidence” in the revitalization by purchasing suites “at full market value.” A legal source, who did not want to be named, said city officials were given advice not to buy into the development – that any purchase was fraught with potential problems which could come back to haunt them.
Coun. Mike Del Grande said he’s concerned about any possible conflict of interest on the part of any councillor or TCHC officials.
“It certainly needs to be further investigated,” he said.
But McConnell – refusing to acknowledge the optics of her ongoing influential role advocating for the development -- was quite taken aback when asked whether she ever declared a conflict of interest at council while Regent Park was being discussed.
“I don’t have a conflict,” she said earlier this past week. “I don’t know what you’re talking about … this is very typical of you.”
She claimed she didn’t purchase in an affordable housing development – that she bought into a “housing condominium” like any other housing condominium.
McConnell also threatened to sue me for daring to ask about a potential conflict of interest.
A review of real estate sales information for the two buildings show more than 10% of the units flipped in the first year after the twin condo buildings were sold out and occupied.
In fact, Blake is proud to say all four buildings erected to date have sold out 100%.
Currently many of the condos in the development are going for resale at up to 20% higher than the original purchase price. Some have sold in the past few months above list.
Blake admitted that their new units are being sold at higher price points.
“There has been an increase in the value to the community from the work that has gone on Phase 1 and 2,“ he said. “People are looking at the park and aquatic centre and saying it is a great place to call home.”
Sue-ann.levy@sunmedia.ca
Tomorrow: The new Regent Park: The new Utopia for the poor or a haven for the upwardly mobile? Where exactly have all the poor people gone?
