Just as I suggested in previous posts…it looks like the whole plan behind the “calling in” of the loan is an attempt by the land lenders to pick up the prime piece of real estate and build a 1Bloor of their own. At least that’s what Michael Gold believes. The latest press release came just before a 10am court hearing which the Toronto Star reported here.

If in fact the group behind the land loan does have plans to build another tower I think they should take a step back and look at the whole picture.  We have a building that people already believe in and bought into. Unlike other condo’s in the city, it’s not an issue of sales but rather one of securing financing. Do these lenders/developers really think the same people would line up again for their version of 1 Bloor? 

Another press release I read from Vicki Griffiths of Vicbar Marketing Limited stated: “As further proof of Bazis’ commitment, Mr. Gold points out that on July 13, 2009 the company paid the City more than $1 million cash to acquire the Hayden Street lane at the southern border of the site. This lane is required in order to complete the project. “You don’t spend $1 million on something like that if you are not committed,” Mr. Gold says.

That would have happened last Monday, just days before the final deadline for them to cancel the project! Another interesting tidbit that came out of the release was Mr. Golds mention of a Sofitel five-star world-hotel being used in the tower! It was rumored before that they would be used and now it looks like this was in fact true.  The Star article left off with a delay in the court hearing as lawyers for Bazis were called into a meeting room…

I’ve been updating this story as it evolves.  Check out my latest updates by clicking here!!
As soon as I get any other info…you’ll be able to read it here!!

Another day another update…well several by the newspapers accounts!
The Toronto Star ran a front page article revealing new twists and turns in the story of 1Bloor. If you haven’t already read it, check it out here. (wow!)

Where to begin…well for starters, the problems listed in the Star article are not related to the ones mentioned in the past. Thus adding a whole new level of complexity to the matter.  Originally everyone was waiting on Bazis to secure financing for the construction of the tower.  Now there’s also the threat of the land financing being pulled!  From the sounds of it, a  Toronto group that took over the lending commitments to Bazis will be filling actions that could put the project into receivership.  They lent Bazis the money and they want to be paid back…I get that, but to do a more modest project sounds like more of a tactic to obtain the land and build their own project as Bazis sorts through their current situation. To borrow from the article: “Now, the group wants to be paid out, or to be allowed to buy the property with an eye to building a more modest project.” (side note: nothing modest should be put on the most on one of the most recognizable corners in the City, be it a tower or any other use.)

If anything good did come out of this ordeal, it’s that Michael Gold responded to The Star, something we haven’t seen much of in the past.  In regards to the latest situation he had this to say:

“Bazis International Inc. is vigorously opposing the receivership proceedings and fully intends to honour all agreements and to complete the development as planned on schedule,” Gold said in a written response to a request for an interview. (Quote can be found in Toronto Star article by Kevin Donovan)

That’s probably the biggest statement thus far as to their plans to finish the project.  It echoes previous reports that project is a go; but as to when, how, and at what opportunity cost is still unknown. As a realtor it’s frustrating to hear so little from the developer. A few buyers/readers that emailed me said they don’t mind waiting for the project to be complete as long as they know it will in fact happen. Talks of receivership can tie up the project for a substantial amount of time or worse, cancel it all together! With 3 other Bazis projects in different stages of development, the silence is hurting consumer confidence towards those sites as well. I’m sure we’ll be hearing more in the coming days and hopefully with all the attention from the media more statements will be given from Bazis as well. 

I’ve been updating this story as it evolves.  Check out my latest updates by clicking here!!
Thanks to all the readers that have been calling and emailing me with comments on the project.  If Sunday isn’t too busy, I might do a post with some of the questions readers have asked. It should be an interesting week ahead of us to say the least!!