And the Post:
Business partners trade allegations over condo deal
Nicole Girardin And Garry Marr, National Post, with files from Ian Munroe
Published: Saturday, March 10, 2007
David Mirvish, the theatre impresario, has held his tongue for years as his flamboyant business partner, condo developer Harry Stinson, talked to the press about the troubles in the 51-storey hotel, The Suites at One King West, that Mr. Stinson developed with Mr. Mirvish's money.
But yesterday Mr. Mirvish finally had had enough, and summoned the media to his office next to the celebrated Princess of Wales Theatre, where he aired his deep-felt disappointment.
"I found [Mr. Stinson] would do things without ever telling me and I would say, 'Harry, we never discussed this' and he would say, 'OK, I won't do it again' and then two weeks later he just would do it again," said Mr. Mirvish.
Mr. Mirvish was in New York scouting the next Broadway show, when he learned that Mr. Stinson was seeking protection under the Companies Creditors' Arrangement Act. Mr. Stinson, 53, claims that Mr. Mirvish didn't live up to his obligations by finishing the building at One King West to "acceptable standards."
"We've made this thing work," Mr. Stinson countered last night. "For David to say he was suckered is, to put it mildly, saddening."
Mr. Mirvish says Mr. Stinson owes him $11.8-million; Mr. Stinson claims that debt should be closer to $2-million to $3-million.
Mr. Mirvish said his business partner was constantly going behind his back to make decisions on the 572-unit condo project.
"My concern is the court of public opinion, which will make up its mind long before we get to court," Mr. Mirvish said.
"I was very much enamoured by Harry's enthusiasm, ideas, ambitions and plans when I first met him. He came to me wanting to build a structure that would enhance the downtown."
The problems, said Mr. Mirvish, were that his partner didn't seem to have concrete plan.
He detailed occasions where Mr. Stinson would construct something in the middle of the night to avoid confrontation and make impulsive purchases such as the time he bought $400,000 worth of granite and shoved it all in a warehouse.
"We need someone to run this building no w," said Mr. Mirvish, who still owns 35 units in the tower.
Mr. Mirvish's lawyer, Jeffrey Carhart, of Miller Thomson, said the court hearing on Feb. 27 caught him by surprise.
"You do not go to court without giving notice to your largest secured creditor," Mr. Carhart said. "Because I wanted to get to court so quickly [on Feb. 27] I didn't even gown. I went in my suit, walked into the courtroom and submitted to the court the proceedings should be brought to an end."
The proceedings have been adjourned without any decision.
Meanwhile, a few blocks east, Mr. Stinson yesterday held his traditional perch at his huge, chest-high desk in the corner of The Suites at One King West, where he normally works until 2 or 3 a.m. He looked more tired than usual, and while his ex-friend is the one in the theatre business, yesterday Mr. Stinson provided the theatrics.
"It reminds me of the Monty Python piece where they're going in the village with the cart," Mr. Stinson said re-enacting the scene from Monty Python and the Holy Grail. "Get in the cart. I'm not dead yet! No, you're nearly dead -- get in the cart!"
Mr. Stinson's bad day got worse when Unite Here, a union for hotel workers, announced yesterday that staff at One King West voted 42-0 in an Ontario Labour Relations Board vote to join the union.
On another front, the venerable Ontario Club has pulled out of a deal to move into One King Street West.
Stephen Lautens, 47, past president of the Ontario Club, said on the club's behalf yesterday that the club received letters from Mr. Mirvish's lawyers in January saying that Mr. Mirvish held the mortgage to One King Street West, and that the Ontario Club was not welcome. However, the Ontario Club, having nowhere else to go, decided to carry on with the deal.
The day before the March 1 move, upon hearing of Mr. Stinson's filing for protection, they decided to stop.
"We decided to postpone moving in until the dust settles," Mr. Lautens explained. "You know the saying, when two elephants fight, it's mostly the grass that suffers? We're the grass."
Yesterday Mr. Stinson tried to put the blame on Mr. Mirvish.
"The key issue really is the instability of the building," Mr. Stinson said. He walked to the second floor and pointed out two holes in the floor by the entryway covered by overturned plywood baskets, where brass pillars, he said, ought to be.
The Grand Banking Hall on the second floor with its luxurious oversized sofas and smaller formal dining tables, which promises in promotional material still posted outside of Mr. Stinson's office, to be a "home away from home" for members of the now defunct Dominion Club, was deserted yesterday.
Meanwhile, Mr. Stinson had one bit of good news: Tina Walker, director of USA Go to It, the company registering exhibitors for the Annex Learning Expo coming to Toronto, said from Los Angeles that, as far as she knows, Mr. Stinson is still registered as a keynote speaker at the $129-per-ticket event, and will attend the event on March 24- 25 at the Metro Toronto Convention Centre.
ngirardin@canwest.com
AoD
I have a soft spot for Harry. Anybody who holds a their chin-up to Donald Trump is ok my books. Donald Trump is a dick btw.