Quote:
Originally Posted by trueviking
Centre Venture did not lose money selling it to Fortress.
The City told CV to purchase the property to alleviate significant crime issues it was having. We can definitely debate the logic of that move but it was not a choice CV had. It was not intended to be a profitable solution, but something for the greater good of downtown to attract investment in the area. The Fortress transaction, like all CV deals, came with a development agreement, deadlines and penalties to cover any costs if they failed. There was always a high level of skepticism but there were few options and they offered a high reward if they could make it work. A framework was put in place to protect against losing money.
The agreement with this developer comes with a similar agreement. CV is doing its best to make the most of a difficult situation. Maybe they should have told the city they wouldn’t buy it, but at the time the city saw that as an important step for downtown.
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"Another project milestone Mathieson is able to report is completion of the removal of hazardous materials from the former St. Regis Hotel on Portage Avenue.
CentreVenture was obligated to take back the property from Ontario company Fortress Real Developments of Richmond failed to follow through on a plan to build a parkade and commercial complex on the site.
St. Regis Hotel site is up for grabs once more
At one point CentreVenture hoped to sell the building as it stood, for redevelopment, but is now marketing the property as a clean site and demolition of the old hotel will begin soon.
As a partial reflection of uncertainty of the value of the downtown property, CentreVenture has written down a loss totalling $1.535 million off its books for the St. Regis."
You are a volunteer at Centre Venture and you do not have a clue. Angela admitted to a huge loss. And that did not include interest, property taxes and utilities.