In the last Estonian Centre updates our community learned that the parking lot at 9 Madison Ave had been acquired from Create TO (formerly Build Toronto). Although the announcement did not specify the new ownership structure behind the acquisition, a minor variance application to unite 9 Madison with 11 Madison has been submitted to the City. For those who are interested in urban development, the pertinent documents can be accessed through the
City's Development Applications portal.
The cover letter included in the package has interesting information outlining the reasons the two sites are being united. From the third paragraph:
"
At its meeting on November 29, 30 and December 1, 2011, City Council declared the property at 9 Madison Avenue surplus, except for a below grade strata to protect for the subway tunnel and an above-grade easement to protect this infrastructure; the property was then turned over to Build Toronto (now CreateTO) for disposition. The Estonian Credit Union, Estonian Foundation of Canada and Tartu College subsequently entered into an agreement of purchase and sale with Build Toronto to acquire and redevelop the property. The property at 11 Madison Avenue was purchased by the Estonian Credit Union, with the intent of assembling the two properties." (See the Cover Letter)The purpose behind Estonian Credit Union (ECU) purchasing 11 Madison Ave back in February 2014 seems to have evolved over time, at least in comparison to how the purchase was originally characterized in
ECU's 2014 press release.
Readers of the
Estonian Centre's Due Diligence Report discovered that the Estonian Credit Union and the Estonian Foundation of Canada (EFC) joined Tartu College in June 2014 to start negotiating with Build Toronto to purchase 9 Madison. (See Page 22) Considering that 3 major organizations expressed interest to purchase 9 Madison Ave with an idea of hopefully joining the property with 11 Madison as early as 2014, verifies that there was long term planning behind the acquisitions. In 2014, that news could have come as bit of a surprise to Estonian House shareholders. Remember the "3 Orgs" were conducting negotiations in regard to 9 Madison during a time when the EHL board of directors were starting to investigate development opportunities for 958 Broadview with multiple parties; including Tribute and Alterra. Some may have wondered if the interests of ECU and EFC, as EHL shareholders with certain influence, could have had their attention divided with the redevelopment efforts on Broadview and the interests of the remaining EHL shareholders.
Hearing dates regarding the minor application for 9 Madison are to be announced.
Allan Meiusi, EWR Contributor
