Archive for the ‘Economics’ Category
[URBAN NOTE] “Troubled Trump Tower in Toronto likely will go to owner of $301-million construction loan”
The Financial Post carries Alastair Sharp’s Reuters report noting that debt-laden Trump Tower here in Toronto has not received any bids, and that the bank that is its main debt holder is likely to take the building.
The court-run sale of a downtown Toronto high-rise bearing the name of U.S. President Donald Trump received no initial bids and ownership will likely fall to its main debt holder, a letter from the receiver showed.
The court process only indirectly involves Trump, whose sprawling business empire licenses its brand and manages the Toronto property on behalf of the developer, Talon International Inc. But the Trump International Hotel & Tower’s new owner will need to navigate an unresolved dispute over whether they can get out of that arrangement.
No qualified bids apart from a stalking horse offer of $298 million were received for the luxury hotel and condo property by an initial deadline, the receiver, FTI Consulting, said in a letter dated Feb. 21 and seen by Reuters on Monday.
“As a result, the Receiver has determined that the Stalking Horse Bidder is the Successful Bidder,” the letter said.
With no rival bidders emerging, the hotel’s ownership will likely fall to JCF Capital ULC, which on Sept. 29 bought the $301 million owed on the tower’s construction loan, before quickly moving to initiate the sale process.
Torontoist features John Parker’s criticism of city council for not properly budgeting expenses in the coming fiscal year.
“What’s a million?” a comment famously attributed to Canadian wartime minister C.D. Howe, is one of those lines so rich in its obvious contempt for the sensibilities of the average taxpayer that it is almost a shame that there is no record that he actually said it.
But we now know that the spirit of that remark lives on in today’s Toronto City Hall. Over the years, $1 million has increased to $2 million. And we now know that this is the premium Toronto City Council submitted for future taxpayers to pay, just so that they could bring down the curtain on a 15-hour day of kicking the same tired old issues around the floor of council on 2017 budget decision day, to the point where someone, in effect, said, “It’s late, we’re all tired, and we want to go home.”
It’s not as if the 2017 budget process hadn’t already gone through a long and detailed series of analytical steps and decision points long before midnight on February 15. There is a budget committee that meets regularly throughout the year. City staff had released their preliminary 2017 numbers before the end of 2016. Community information sessions had been held. Special budget committee meetings had taken place. Recommendations and proposals had been submitted, discussed, and voted on at the Executive Committee. The bulk of about $10.5 billion dollars of tax that supported operating spending in the original proposal had emerged from the process pretty much unscathed. Proposed spending lined up neatly with projected revenues, in accordance with the law that imposes at least that degree of fiscal discipline on every municipal government in the province of Ontario.
As the midnight hour approached, there was just one problem. After taking into account all the recommendations from staff in all departments, and after all the town halls, and after all the committee meetings, and deputations, and proposals, and votes, Toronto City Council decided that the budget they were about to adopt just didn’t provide for the City’s roads to be clean enough. Two million dollars in street sweeping, to be exact, had to be added to the plan. So it was added.
blogTO’s Derek Flack looks at old malls in Yorkville, like Cumberland Terrace and the Village Arcade, that are set to come down as redevelopment beckons. Plenty of nice photos are included.
Yorkville is in the midst of a paradigm shift, the scale of which hasn’t been witnessed since it transformed from a hippie hub in the 1960s to a high end shopping destination in the decade that followed.
The Yorkville that’s slipping away today can be traced back to the 1970s. While historic elements dating much further back can been seen in the converted Victorian houses that still house retail on Cumberland St., many of the neighbourhood’s larger buildings date back to this decade.
Of these, the most significant is surely Cumberland Terrace, a multi-level mall that runs adjacent to the street from which it takes its name. Opened in 1974, when you pay a visit these days, it’s like stepping into a time machine.
Picture the Galleria Mall, but nicer. There are payphones and brown tile everywhere, an eclectic mix of vendors you’d never find in a newer mall, and wayfinding signage that dates back to the first days of operation here.