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rfmcdonaldKevin Donovan's article in the Friday Toronto Star makes for interesting if unsurprising reading.
A bank in Kazakhstan that a Canadian representative of Bazis cited as an available lender, BTA, is currently under investigation by Kazakhstan authorities for massive fraud. The firm has recently restated its commitment to the project but, well, that's open to question. The general meltdown in finances makes it unlikely that anyone else would buy up the land for another development soon, too.
Andrew Barton's suggestion that the site should be converted into a public space, a park or something looks more appealing than ever.
The gleaming 80-storey condominium tower that was to lead the revitalization of the Yonge-Bloor intersection in Toronto is teetering on the edge of extinction.
On Monday, the Toronto lender that advanced a $46 million loan is going to ask a court to put the Kazakhstan-backed project into receivership and sell off the now-vacant land its international developer boasts is the "best address in the world."
The lender, a consortium of Toronto businessmen, alleges in court documents that Kazakh developer Bazis International has defaulted on its land loan and the Kazakh bank backing the tower portion of the project is involved in a "massive financial scandal involving fake loans, racketeering and money laundering activities."
"The (land) loan has been in an almost constant state of default since December of 2008," said Toronto consortium leader Gary Berman, in a court affidavit supporting his group's bid to appoint receiver Ernst &Young.
[. . .]
Yesterday, the presentation suite at the southeast corner of Yonge and Bloor St. was locked tight. A sign noting its hours indicated it should have been open. The sign encouraged interested buyers – condo unit prices start at $500,000 to "over $8 million" – to book an appointment. The Star left a message, but did not get a call back.
A bank in Kazakhstan that a Canadian representative of Bazis cited as an available lender, BTA, is currently under investigation by Kazakhstan authorities for massive fraud. The firm has recently restated its commitment to the project but, well, that's open to question. The general meltdown in finances makes it unlikely that anyone else would buy up the land for another development soon, too.
Andrew Barton's suggestion that the site should be converted into a public space, a park or something looks more appealing than ever.
