[LINK] "Yonge and Bloor condo nears critical deadline"

[rfmcdonald]

The news from the National Post about the travails faced by Bazis International, builders of a planned 80-story condo locaTED SQUARELY IN THE HEARTOF Toronto at the intersection of Yonge and Bloor streets, isn't necessarily encouraging.

Developer Bazis International is on the second extension of its "condition date" to start building a planned 80-storey condo tower called One Bloor, a massively popular project that, upon its launch in late 2007, had buyers camped outside the sales office for a week.

But the bulldozed lot still sits empty, and on June 15, Bazis enters a 31-day period during which it can serve notice to buyers that it is cancelling construction. At that point, deposits would be refunded.

Mark Cosman, a commercial real estate lawyer, signed up to buy a one-bedroom unit at One Bloor before the sales office even opened. "Bloor and Yonge, it couldn't be any better," he said. "Centre ice in the city of Toronto."

But with the fate of the project in doubt, Mr. Cosman-- like many buyers -- has become increasingly concerned about his investment.

"Now, if I could get out, from a legal perspective, I would," he said.

The holdup in construction is linked to the failure of U. S. investment bank Lehman Brothers, which was helping finance the project. With Lehman in the midst of bankruptcy proceedings, the money that would have helped finance the condo is also tied up in court.

If Bazis does not give cancellation notice during the 31-day period, the purchase agreements become binding. Yet if the construction launch still lags, it becomes a much more difficult process for buyers to recover their deposits.

Maybe we could build a park there after all.