neuhaus
Senior Member
From the developer:
The developer is not planning on cancelling the project and going forward with the rest of the approval process -- I'm very surprised that it has taken so long for this relatively small condo building to not even have the zoning by-law amended and it's a rather decent and non-offensive looking building. Other condo projects nearby that were launched around the same time are well under construction and those buildings are much larger and not as nice looking. The developer is giving a bonus of $7,500 worth of upgrades for those who decide to stick with their purchase, which is really considerate of them -- other developers would hope purchasers would cancel their purchase so that they could resell them for a lot more. Those increases of costs are understandable and the appreciation in property values have far exceeded the amount the developer is requesting, so for those who bought as an investment would be foolish to walk away, however you have your deposit tied up for even longer but gaining on the values especially given all the development in the area including the redevelopment of Bayview Village across the street.
Those dates are not completion nor occupancy dates (the member that originally posted this news deleted their post and had the impression that it was the occupancy date), but the Tarion Outside Occupancy Dates, which is the date the purchaser has the right to cancel their purchase & sales agreement if the developer fails to complete at that time -- the Outside Occupancy Date is typically two years after the anticipated occupancy date, so most likely the revised occupancy date would be sometime in 2022.
Phantom has built the Jade Waterfront Condos in Etobicoke, and Jade Condos which is on the next street to the north of this development which is actually a very well-built condo. Phantom is currently working on 8 Cumberland with Great Gulf.
Due to the circumstances noted below, Phantom advises that unfortunately, it is unable to meet the Outside Occupancy Date of May 14, 2021 as stipulated in Schedule “F” of the Tarion Statement of Critical Dates – Delayed Occupancy Warranty, of the Agreement of Purchase and Sale.
Rather than exercising Phantom’s right to cancel the project in its entirety in accordance with paragraph 6(d) – Early Termination, of the Tarion Statement of Critical Dates by April 6, 2017, Phantom continued to diligently work with the City of Toronto in an effort to secure the necessary approvals in order to proceed with the project.
As a result of the issues Phantom has experienced in moving this project through the approval process, an appeal of the Official Plan amendment, Zoning By-law amendment and Site Plan applications were all filed with the Ontario Municipal Board (OMB).
The hearing over the amendments to the Official Plan and the Zoning By-law is scheduled to proceed on January 10, 2018. Phantom is confident that the Board will approve the requested amendments. However, Phantom also expects that the Board will require, as a prerequisite to issuing its order, that Phantom and the City execute an agreement pursuant to s.37 of the Planning Act, and finalize the details of certain servicing-related issues that involve upgrades to various off-site infrastructure. While Phantom expects that the Section 37 Agreement may be completed some time in the first or second quarter of 2018, due to ongoing issues with the City’s engineering department and the rotation of staff assigned to this project, Phantom is not confident that it can project the timing for finalizing the functional servicing issues.
Once the OMB delivers its final order approving the Official Plan and the Zoning By-law amendments, Phantom will then be in a position to advance its site plan application. Based on recent experience, it is likely that this process will require between 1-2 years. While Phantom is hopeful that it may be in a position to commence construction at some point prior to obtaining final site plan approval, it is unlikely that it will be in a position to request a discretionary permit to commence excavation until the site planning process is 75% complete. However, given the appeal of the site plan application to the OMB, it is quite possible that such a discretionary permit will not be issued until final site plan approval is granted by the OMB.
As a result of the issues noted above, there have been substantial increases in the costs relating to the development of the project, which, as you may know, in accordance with paragraph 4 of the Agreement of Purchase and Sale will be passed on to Purchaser(s) by way of an adjustment/charge to the Purchaser(s) on the final statement of adjustments. Aside from the increased development charges which are estimated at approximately $5,000 per unit, it is also expected that further sanitary and sewage required upgrades are estimated at approximately $17,000 per unit. Phantom is sensitive to the fact that these increased costs could adversely affect the Purchaser(s)’ decision to proceed with the purchase of the Unit.
Therefore, pursuant to the Tarion Statement of Critical Dates – Delayed Occupancy Warranty, Phantom would like to offer the following options to you:
Phantom and the undersigned Purchaser(s) mutually agree to extend the Critical Dates set out in the Tarion Statement of Critical Dates – Delayed Occupancy Warranty. The Outside Occupancy Date shall be May 14, 2024. The Purchaser(s) acknowledge that the setting of the Outside Occupancy Date may change other Critical Dates, as set out in the Statement of Critical Dates provided by the Vendor at the time the Agreement of Purchase and Sale for the unit was signed (in accordance with the terms of the Tarion Warranty Corporation Addendum that forms part of the Agreement of Purchase and Sale). Phantom and the undersigned Purchaser(s) will immediately execute an Amended Statement of Critical Dates. Phantom will also provide the Purchaser(s) with a bonus credit in the amount of $7,500.00, to be used exclusively towards upgrades to be chosen from the Vendor’s selections. Phantom and the undersigned Purchaser(s) will execute an Amendment to the Agreement of Purchase and Sale in this regard.
OR
Phantom and the undersigned Purchaser(s) mutually agree to the termination of the Agreement of Purchase and Sale. Phantom shall refund all monies paid by the Purchaser(s), including deposit(s) and monies for upgrades and extras, within 10 days of such termination, with interest, in accordance with the Condominium Act, together with a bonus additional payment in the amount of $16,500.00. Phantom and the undersigned Purchaser(s) will immediately execute a mutual written agreement pursuant to the terms of paragraph 10 of the Tarion Statement of Critical Dates – Delayed Occupancy Warranty.
Rather than exercising Phantom’s right to cancel the project in its entirety in accordance with paragraph 6(d) – Early Termination, of the Tarion Statement of Critical Dates by April 6, 2017, Phantom continued to diligently work with the City of Toronto in an effort to secure the necessary approvals in order to proceed with the project.
As a result of the issues Phantom has experienced in moving this project through the approval process, an appeal of the Official Plan amendment, Zoning By-law amendment and Site Plan applications were all filed with the Ontario Municipal Board (OMB).
The hearing over the amendments to the Official Plan and the Zoning By-law is scheduled to proceed on January 10, 2018. Phantom is confident that the Board will approve the requested amendments. However, Phantom also expects that the Board will require, as a prerequisite to issuing its order, that Phantom and the City execute an agreement pursuant to s.37 of the Planning Act, and finalize the details of certain servicing-related issues that involve upgrades to various off-site infrastructure. While Phantom expects that the Section 37 Agreement may be completed some time in the first or second quarter of 2018, due to ongoing issues with the City’s engineering department and the rotation of staff assigned to this project, Phantom is not confident that it can project the timing for finalizing the functional servicing issues.
Once the OMB delivers its final order approving the Official Plan and the Zoning By-law amendments, Phantom will then be in a position to advance its site plan application. Based on recent experience, it is likely that this process will require between 1-2 years. While Phantom is hopeful that it may be in a position to commence construction at some point prior to obtaining final site plan approval, it is unlikely that it will be in a position to request a discretionary permit to commence excavation until the site planning process is 75% complete. However, given the appeal of the site plan application to the OMB, it is quite possible that such a discretionary permit will not be issued until final site plan approval is granted by the OMB.
As a result of the issues noted above, there have been substantial increases in the costs relating to the development of the project, which, as you may know, in accordance with paragraph 4 of the Agreement of Purchase and Sale will be passed on to Purchaser(s) by way of an adjustment/charge to the Purchaser(s) on the final statement of adjustments. Aside from the increased development charges which are estimated at approximately $5,000 per unit, it is also expected that further sanitary and sewage required upgrades are estimated at approximately $17,000 per unit. Phantom is sensitive to the fact that these increased costs could adversely affect the Purchaser(s)’ decision to proceed with the purchase of the Unit.
Therefore, pursuant to the Tarion Statement of Critical Dates – Delayed Occupancy Warranty, Phantom would like to offer the following options to you:
Phantom and the undersigned Purchaser(s) mutually agree to extend the Critical Dates set out in the Tarion Statement of Critical Dates – Delayed Occupancy Warranty. The Outside Occupancy Date shall be May 14, 2024. The Purchaser(s) acknowledge that the setting of the Outside Occupancy Date may change other Critical Dates, as set out in the Statement of Critical Dates provided by the Vendor at the time the Agreement of Purchase and Sale for the unit was signed (in accordance with the terms of the Tarion Warranty Corporation Addendum that forms part of the Agreement of Purchase and Sale). Phantom and the undersigned Purchaser(s) will immediately execute an Amended Statement of Critical Dates. Phantom will also provide the Purchaser(s) with a bonus credit in the amount of $7,500.00, to be used exclusively towards upgrades to be chosen from the Vendor’s selections. Phantom and the undersigned Purchaser(s) will execute an Amendment to the Agreement of Purchase and Sale in this regard.
OR
Phantom and the undersigned Purchaser(s) mutually agree to the termination of the Agreement of Purchase and Sale. Phantom shall refund all monies paid by the Purchaser(s), including deposit(s) and monies for upgrades and extras, within 10 days of such termination, with interest, in accordance with the Condominium Act, together with a bonus additional payment in the amount of $16,500.00. Phantom and the undersigned Purchaser(s) will immediately execute a mutual written agreement pursuant to the terms of paragraph 10 of the Tarion Statement of Critical Dates – Delayed Occupancy Warranty.
The developer is not planning on cancelling the project and going forward with the rest of the approval process -- I'm very surprised that it has taken so long for this relatively small condo building to not even have the zoning by-law amended and it's a rather decent and non-offensive looking building. Other condo projects nearby that were launched around the same time are well under construction and those buildings are much larger and not as nice looking. The developer is giving a bonus of $7,500 worth of upgrades for those who decide to stick with their purchase, which is really considerate of them -- other developers would hope purchasers would cancel their purchase so that they could resell them for a lot more. Those increases of costs are understandable and the appreciation in property values have far exceeded the amount the developer is requesting, so for those who bought as an investment would be foolish to walk away, however you have your deposit tied up for even longer but gaining on the values especially given all the development in the area including the redevelopment of Bayview Village across the street.
Those dates are not completion nor occupancy dates (the member that originally posted this news deleted their post and had the impression that it was the occupancy date), but the Tarion Outside Occupancy Dates, which is the date the purchaser has the right to cancel their purchase & sales agreement if the developer fails to complete at that time -- the Outside Occupancy Date is typically two years after the anticipated occupancy date, so most likely the revised occupancy date would be sometime in 2022.
Phantom has built the Jade Waterfront Condos in Etobicoke, and Jade Condos which is on the next street to the north of this development which is actually a very well-built condo. Phantom is currently working on 8 Cumberland with Great Gulf.
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