Royal Connaught Hotel | ? | 36 fl, 33 fl, 24 fl & 13 fl | U/C [Archive] - Page 12

highwater

Dec 23, 2009, 10:36 PM

With bonus goodness of rejecting the rest of the social housing too!

How do you figure? That's the one bit of bad news in this story. I'd love to know why the other proposals were rejected, but I'm sure the fact that the entire RFP process was tainted by the decision to put the Connaught at the top of the list didn't help matters any.

Thank you to the Province of Ontario for doing what our crooked city councilors couldn't do.

This sorry decision was almost exclusively the fault of staff. The Connaught should never have been placed at the top of the list to begin with given the developers' history, and then Council was given unforgivably bad advice on the consequences of breaking up the list before the vote.

This was a not a political decision. It was made by bureaucrats.

Yep. Provincial bureaucrats saved us from the incompetence of our local bureaucrats. Thank you provincial bureaucrats! :D

markbarbera

Dec 23, 2009, 10:54 PM

New City of Hamilton logo - Hurry up and do nothing: The land of missed opportunities

matt602

Dec 23, 2009, 11:56 PM

Most likely, a couple years from now the same group jumping for joy over this deal's collapse will be moaning about the architectual loss when the still-vacant building physically collapses... cutting off nose to spite the face...

I really don't think the building is in any immediate threat of collapse.

http://i89.photobucket.com/albums/k201/sugarton/UE/Connaught-April09/connaught-april09-7.jpg

The entire building from the second floor up to the roof is this. Stripped down to concrete and steel beams. The original 1930's construction is what you're seeing there. This is what makes up the skeleton of the building. I'd guarantee it could last another 20 years, at least, in it's current state. The only part I'd say is at risk of collapse is the ballroom ceiling. It is suffering from severe water damage currently and won't last another 2-3 years without intervention. This building is about as prime a candidate for restoration as they come, save from the decay on the first two floors.

emge

Dec 24, 2009, 12:21 AM

All I wanted for Christmas.. check.

bigguy1231

Dec 24, 2009, 1:16 AM

New City of Hamilton logo - Hurry up and do nothing: The land of missed opportunities

Nothing new about that logo, it could have applied for the last 30 years.

SteelTown

Dec 24, 2009, 3:06 PM

Connaught project funding denied
MPP 'hopeful' for next round

December 24, 2009
Emma Reilly
The Hamilton Spectator
http://www.thespec.com/News/Local/article/696106

A proposal to turn the Royal Connaught into mixed-income housing has been shut out of the latest round of government funding.

The city was hoping to receive $12.9 million from a federal-provincial housing program to redevelop the vacant hotel into apartments, including 100 affordable housing units. The project had already been turned down for funding in the first year of the two-year stimulus program.

Now, the city has learned the Connaught, along with five other applications for affordable housing projects, was denied again.

"We're obviously disappointed," said Mayor Fred Eisenberger.

Council voted in September to name the Connaught project as its top choice of six local projects seeking funding from the stimulus program. If approved, the six projects would have brought 313 affordable units to the city.

Tony Battaglia, spokesperson for the group that owns the Connaught, was unaware of the news when contacted yesterday.

"I just don't know what it means, so I'm really not in a position to say anything," he said. "But it's very unfortunate, especially if there's no money being allocated to Hamilton."

There's still another chance to get funding. The city can resubmit applications to the province in February to see whether they'll receive a slice of the final round of stimulus cash. The six housing projects approved in September, including the Connaught, will have to be reapproved by council and resubmitted to the province.

Brent Whitty, Manager of Rental Housing for the Ministry of Municipal Affairs and Housing, said council will also have to reconfirm whether the Connaught project is still their top priority.

"It's definitely not the end of the game ... but they will need to commit that they are still interested and update their information."

Whitty said the Hamilton projects were not rejected, but projects in other cities that were at risk if funding wasn't approved now were given higher priority.

Sixteen projects with 1,200 units across Ontario received funding this round and will get $141 million in federal-provincial cash in April.

Sophia Aggelonitis, MPP for Hamilton Mountain, said she's "hopeful" about the city's chances of getting funding in the next round because its proposals are "fantastic projects."

The Spectator was unable to reach area cabinet minister and Ancaster-Flamborough-Dundas-Westdale MPP Ted McMeekin.

The Connaught project caused an uproar this summer among people wary of seeing the landmark used for affordable housing.

Dave Kuruc, owner of Mixed Media art shop on James Street North, said affordable housing "wasn't the right fit for the building."

"If you can develop that property and do it properly, I think you could easily shift the fortunes of King Street East and Gore Park."

Downtown Councillor Bob Bratina said with the success of the Pan Am Games bid and public opposition to the proposal, he hopes the Connaught will be reborn as a hotel.

"I don't think it's bad news for the downtown," he said about being shut out of funding. "Most people agree that they would prefer to see the Connaught revert to a hotel."

Though Eisenberger said he thinks it would be "spectacular" if the Connaught became a hotel again, he argues the Pan Am Games aren't enough to keep a downtown hotel afloat.

"That need is a two-week need, not a long-term need. There needs to be a greater critical mass happening to sustain it."

markbarbera

Dec 26, 2009, 10:07 PM

Today's editorial in The Spec:

Square one for Connaught

December 26, 2009
Howard Elliott
The Hamilton Spectator

What now? That's the question the owners of the former Connaught Hotel must be asking themselves now that the provincial government has said no to helping finance a conversion to a mixed-use facility that would have included rental housing and retail. And it's a question we hope the critics who yelled loud and long about the value of the project are asking themselves.

For the record, we supported the conversion. Our rationale was that some productive use is better than leaving it to rot, which it has been doing for most of the past decade. Had it been approved, the Connaught would have housed 100 subsidized units built for working families, seniors and people with disabilities, who would have paid 20 per cent under market rent. Another 108 units would have rented for market value, and there would have been retail services such as a grocery on the ground floor.

There was much legitimate disagreement with that position, and there was also the usual amount of unfortunate stereotyping from people arguing "affordable housing" and those who use it would be a negative as opposed to positive influence on the core and redevelopment. This in spite of the fact that, at about $660 per month, the rent for most people on social assistance (for example, those receiving shelter allowance of $549 monthly) would have been too high.

But in the end, what matters is that the province said 'no' to this idea, along with the other five affordable housing proposals submitted for consideration. So, now what?

Some argue that the Pan Am Games offer new opportunity for a hotel. But many, including the current owners, point out that's a two-week window. Is there enough demand to support a new and expensive downtown hotel, aside from the Games?

And what of Hamilton's affordable housing needs? Although progress has been made, our city still has among the highest rates of poverty in Ontario, and there is a demonstrated pressing need for more affordable housing stock (which the Connaught was not) and significant improvements to the condition and supply of existing stock. Other cities with less pressing poverty issues received support for affordable housing, yet Hamilton got nothing. So, local MPPs and Queen's Park, what now?

FairHamilton

Dec 28, 2009, 5:05 PM

I've corrected the facts for Howard.

December 26, 2009
Howard Elliott
The Hamilton Spectator

What now? That's the question the owners of the former Connaught Hotel must be asking themselves now that the provincial government has said no to helping finance a conversion to a mixed-use facility that would have included rental housing and retail. And it's a question we hope the critics who yelled loud and long about the value of the project are asking themselves.

For the record, we supported the conversion. Our rationale was that some productive use is better than leaving it to rot, which it has been doing for most of the past decade. Had it been approved, the Connaught would have housed 100 subsidized units built for working families, seniors and people with disabilities, who would have paid 20 per cent under market rent. Another 108 proposed units would have rented for market value, and there would have been proposed retail services such as a grocery on the ground floor.

There was much legitimate disagreement with that position, and there was also the usual amount of unfortunate stereotyping from people arguing "affordable housing" and those who use it would be a negative as opposed to positive influence on the core and redevelopment. This in spite of the fact that, at about $660 per month, the rent for most people on social assistance (for example, those receiving shelter allowance of $549 monthly) would have been too high.

But in the end, what matters is that the province said 'no' to this idea, along with the other five affordable housing proposals submitted for consideration. So, now what?

Some argue that the Pan Am Games offer new opportunity for a hotel. But many, including the current owners, point out that's a two-week window. Is there enough demand to support a new and expensive downtown hotel, aside from the Games?

And what of Hamilton's affordable housing needs? Although progress has been made, our city still has among the highest rates of poverty in Ontario, and there is a demonstrated pressing need for more affordable housing stock (which the Connaught was not) and significant improvements to the condition and supply of existing stock. Other cities with less pressing poverty issues received support for affordable housing, yet Hamilton got nothing. So, local MPPs and Queen's Park, what now?

highwater

Dec 28, 2009, 7:26 PM

:previous: Exactly.

That's what pissed me off about this ridiculous editorial. He's criticizing people for criticizing a project that exists only in his imagination. The chances of this becoming a successful, mixed-income development with street-level retail, are virtually nil under the current ownership. It's completely disingenuous to criticize people for pointing this out, but it's all the proponents have got.

highwater

Dec 28, 2009, 7:32 PM

Zaz

Dec 28, 2009, 7:42 PM

So... what now? What are we proposing instead?

SteelTown

Dec 28, 2009, 9:06 PM

There's no other proposal at this time.

Difficult to get financing and investment to renovate the building into a hotel. Look no further than to Harry Stinson's proposals (Connaught and Hamilton Grand).

This building will likely sit idle until the economy improves or the government takes some kind of action.

markbarbera

Dec 29, 2009, 3:14 AM

And the only things that have been 'proposed' for the ground floor to date are, surprise surprise, social services! The idea that there would be retail, let alone a grocery store, is transparent spin on the part of the developers, yet he dumps on people for being smart enough not to buy it. Either he's a gullible fool, or he thinks his readers are idiots.
This commentary betrays your obvious dislike for the current building owners, and is not based on fact. I am no fan of them either, but there is absolutely no need to perpetuate false misconceptions and mistruths. The constant referral to social services is, to paraphrase, a transparant spin to detract from the proposal's merits.

So... what now? What are we proposing instead?
Well, the critics have been busy rubbing their hands in glee over their perceived victory in the apparent death of this proposal, but no alternative lies in wait. For over a decade, bankers have been saying no to the dream of reviving the Connaught as a luxury hotel, and absolutely nothing has happened or is about to happen to reverse that position. Connaught needs to be reinvented into another purpose, but a reinvention is an even harder sell for financiers, particularly in the midst of a recession in a city that had not even recovered from the previous recession. Unless the project is approved in the next round of MMAH funding, we'll be looking at at least another decade of a derelect Connaught building.

FairHamilton

Dec 29, 2009, 2:37 PM

So... what now? What are we proposing instead?

To be fair there hasn't been time to announce anything else as the MMAH announcement was in the few days before the holidays.

But, if the developer was serious about the "proposed" 108 market-rate units then I can see no reason they shouldn't be developed without the 100 below market-rate units. The two developments should be viewed as separate and the gov't funding for the 100 units should have no impact 108 market-rate units. But somehow the 108 units are tied to the 100 happening first (that in itself is fishy). Why do the 100 units need to happen first, for the 108 to happen? Why not the other way around?

If there's a market for the rental units they should proceed, period.

Same goes for the "proposed" retail space/grocery store, as 200 less residents living in the 100 subsidized units should not be enough of a change to 'kill' the retail plan. Though, I strongly doubt either of the "proposed" will go forward.

As for not being able to find financing/capital this is a B.S. excuse, as financing in Canada is readily available. After a restriction with the financial meltdown in the US and elsewhere, the markets relaxed fairly quickly in Canada. Just look at the recent housing gains on 5% down, and 35 year amortizations. Capital for housing (buildings) is so liquid the BoC Governor and Finance Minister are publicly appealing for people to take it easy.

Finally, lets remember this development group came up with $500K for back taxes in a matter of a day, or two, to remove that objection from City Council. $500K in cash shows they are either very liquid, or have easy access to capital.

realcity

Dec 29, 2009, 4:57 PM

The owners could develop it into something viable. We lack hotel rooms. We were told that for years. But the owners will have to put some of their own money into the project. Then it could get financing. like when you and I buy a house. But they don't want to. And why not? You can go for years not paying property tax and wait for the right time when a gov handout subsidy comes along.

realcity

Dec 29, 2009, 4:59 PM

Retail will never happen. Unless its a Big Bear and a Money Mart. They 108 market value units will never happen. All it would've been is a housing project with social services on the ground floor. and another place for people to hang around outside and bum smokes.

Just like the Lister.... Do you really think "Phase Two" is going to happen?

realcity

Dec 29, 2009, 5:06 PM

Retail space is sitting empty in Core Building, Terraces on King, Effort Square and Hamilton Plaza Hotel and much of Jackson Sq. So who are these retailers just dying to get in?

Plus the last downtown grocery store closed years ago at York and Hess. If there was a viable need for a downtown grocery store then why isn't there one now? I do think there is a strong business case for a downtown grocery store, but I understand business and to me *if I was Loblaws* and saw an under serviced market I would build a store. But there isn't so there isn't a store.

highwater

Dec 29, 2009, 5:24 PM

This commentary betrays your obvious dislike for the current building owners, and is not based on fact. I am no fan of them either, but there is absolutely no need to perpetuate false misconceptions and mistruths. The constant referral to social services is, to paraphrase, a transparant spin to detract from the proposal's merits.

Yeah, I guess I just 'dislike' people who don't pay their taxes until they're forced by public embarrassment because they want more public money. I guess I also don't like people who get public subsidies on the promise of turning their property into a hotel, then turn around a few years later and ask for still more public money to turn it into something else entirely.

And no, the reference to social services is not 'transparent spin', but is based on the fact that the developers were in talks with the city to place social services on the ground floor of the Connaught, all the while that they're claiming it's going to be retail.

I do not know any of the developers personally. My 'dislike' of them is based solely on their public actions. With the exception of their social services discussions with the city, I haven't said anything about this consortium that hasn't been widely reported in the Spec.

SteelTown

Dec 29, 2009, 6:47 PM

markbarbera

Dec 29, 2009, 7:17 PM

As for not being able to find financing/capital this is a B.S. excuse, as financing in Canada is readily available. After a restriction with the financial meltdown in the US and elsewhere, the markets relaxed fairly quickly in Canada. Just look at the recent housing gains on 5% down, and 35 year amortizations. Capital for housing (buildings) is so liquid the BoC Governor and Finance Minister are publicly appealing for people to take it easy.

Financing is readily available in Canada as a whole, no doubt, but that is not the problem. Those with the financing have no interest in investing in downtown Hamilton, and this is the real difficulty that needs to be overcome. And this is an issue the owners of Connaught are facing, along with others who would like to develop downtown. Doesn't matter how much capital is available in Canada, investment downtown will not occur so long as the level of risk assigned by financiers remains high. That is why downtown proposals sputter and fail consistently, regardless of the developer proposing them, and why so many rely on public dollars to get them going.

So, as Zaz asked, what now?

SteelTown

Dec 29, 2009, 7:26 PM

LIUNA couldn't even get a loan to renovate the Lister Block even with having the City as a main tenant and $7 million from the province. They had to get the City to co-sign the loan agreement. I believe the Bank is BMO.

FairHamilton

Dec 29, 2009, 8:50 PM

I'd be interested to know if there has been any downtown Hamilton projects that was funding by any banks from Canada.

It would be odd to me that a company would entertain a thought of building a grocery store next to giant iconic abandon building.

I'm sure these guys got financing; http://thespec.com/article/600175
How about this investment; http://thespec.com/article/659010

And financing comes from areas other than banks. My personal mortgage isn't with a bank.

And how about all the smaller ones in our city, from much smaller operators. As close friend of mine was able to get financing for the purchase of a 6 unit apartment building at King & Stephen, a very troubled area. The difference between him and the 'bigwigs' is that he put his own money in the game to get financing. The original developer on this one; http://thespec.com/article/647770 financed to the tune of $5.8M. No wonder it failed, there was little of their money in the game and it was highly leveraged. I'm going to guess that Jamil Kara will be putting in a good chunk of his own money and the project will succeed.

A grocery store is their proposal not mine, and it's their adandoned building. They can develop the 108 market rate units anytime and then there is a livable building. Remember $500K appeared in a day, or two, to pay back taxes, so they should have some of their own money to invest, yet their proposal was 100% government financing.

FairHamilton

Dec 29, 2009, 8:52 PM

SteelTown

Dec 29, 2009, 9:04 PM

^ Check the Lister Block thread.

SteelTown

Dec 29, 2009, 9:07 PM

I'm sure these guys got financing; http://thespec.com/article/600175
How about this investment; http://thespec.com/article/659010

That's totally their own money, they are investors. Dave Blanchard has been around for years (over 20 years) and owns tons of property and collects rent.

FairHamilton

Dec 29, 2009, 9:18 PM

That's totally their own money, they are investors. Dave Blanchard has been around for years (over 20 years) and owns tons of property and collects rent.

You do understand that investors still get financing, right.

It cost $30 million then but Blanchard and associates in Office Mortgage Investments will pay $14 million, plus invest more than $700,000 in equipment. That includes upgrades to electrical, heating and cooling systems.

Individuals put money into these companies, which in turn use the money to finance buildings. That's just like how a bank operates. Very simplistically speaking, they take money from savers and loan (invest it) to borrowers.

FairHamilton

Dec 29, 2009, 9:18 PM

^ Check the Lister Block thread.

Your statement, therefore you should be able to back it up. I'm not searching other threads to validate other's statements.

SteelTown

Dec 29, 2009, 9:33 PM

http://lmgtfy.com/?q=Lister+Block+Bank+of+Montreal

Hopefully investors have their own money to begin to even invest.

FairHamilton

Dec 30, 2009, 12:29 AM

http://lmgtfy.com/?q=Lister+Block+Bank+of+Montreal

Hopefully investors have their own money to begin to even invest.

Is that how you would reference sources in a school paper?

The city didn't co-sign a loan, what they did was 'Assign the Agreement to Purchase' to BMO as it was for a $21M construction loan without security.

That would happen anywhere (including Toronto) with the structure of the deal, as no bank or financier anywhere would loan $21M on a construction loan without security.

Again, the problem with failed projects in Hamilton has traditionally been that developers haven't been willing to put enough of their own money into the project, making the high leverage project difficult (in some cases impossible) to finance.

markbarbera

Dec 30, 2009, 4:22 AM

Again, the problem with failed projects in Hamilton has traditionally been that developers haven't been willing to put enough of their own money into the project, making the high leverage project difficult (in some cases impossible) to finance.

Actually, the problem is that developers in downtown Hamilton have traditionally been expected to put a higher percentage of their own money into projects than would be expected in other comparable markets because of the higher perceived risk level for downtown developments.

markbarbera

Dec 30, 2009, 4:45 AM

I'm sure these guys got financing; http://thespec.com/article/600175
How about this investment; http://thespec.com/article/659010

Apples to oranges

CIBC building cost $14mil purchase plus $700K in upgrade costs
Hamilton Hotel's purchase price and reno costs a whopping $1 million total

Connaught purchase price was $4.5mil and reno costs to return the heritage building to a 200-room hotel (in a market where demand for hotel rooms is very low) has been estimated at $65 million.

emge

Dec 30, 2009, 5:53 AM

I'm sure these guys got financing; http://thespec.com/article/600175.

I know it's a bit off-topic, but this is the scale and type of thing that makes me so hopeful about Hamilton.

This project is on the bigger side, but these are realistic, doable numbers for a lot of people... and we have so many buildings that can be redone by a few people getting together and saying "we're gonna make it better and then we can make our money back with a bit to spare"

It won't be the 11% return you can get on being a regular landlord and it won't be as flashy as an arts renovation like this... many buildings just need quality market-rent apartments (and retail space that probably won't be filled immediately!)

But there are many, many possibilities for this type of thing on different scales... and many buildings where this can happen when normal people at normal jobs and normal salaries go it alone or get together -- and then plan well, and wait for the right building.

SteelTown

Dec 30, 2009, 6:44 AM

Is that how you would reference sources in a school paper?

Certainly not since school papers don't include a keyboard, mouse, desktop, monitor, an internet connection and a few seconds effort to google it. Plus there's an entire thread dedicated to the Lister Block, which I try and contriube as much as possible with updated information.

This is my biggest internet pet peeve of mine.

FairHamilton

Dec 30, 2009, 1:49 PM

Certainly not since school papers don't include a keyboard, mouse, desktop, monitor, an internet connection and a few seconds effort to google it. Plus there's an entire thread dedicated to the Lister Block, which I try and contriube as much as possible with updated information.

This is my biggest internet pet peeve of mine.

My biggest pet peeve, people making inaccurate statements (i.e. co-signing loan) in one place without being able to provide reference. If one can make the statement they can certainly back it up.

So I guess we are even.

FairHamilton

Dec 30, 2009, 1:56 PM

Actually, the problem is that developers in downtown Hamilton have traditionally been expected to put a higher percentage of their own money into projects than would be expected in other comparable markets because of the higher perceived risk level for downtown developments.

So be it, but it appears to me and many others they want to put in nothing, and expect the city/province to fully fund. Come on.

This is a mug's game, so I'm leaving this thread and going to concentrate on the smaller ones that make good sense and are, or will be completed. Read my signature, and no large projects will happen until that issue gets attention and is solved.

Emge, small and mid-sized developments like the Hotel Hamilton, Mixed Media, Printing Press Lofts, etc are where it's at in Hamilton. A friend who already owns a 6 unit apartment building, is getting ready to put an offer in on a 4 storey place downtown. For those who are looking for a cool bookstore in the lower city (downtown), stay tuned. He also mentioned something about Jazz performance on the 2nd floor, but that's a longer term vision than the bookstore.

SteelTown

Jan 24, 2010, 6:55 PM

http://www.hamilton.ca/NR/rdonlyres/8D2A0DF7-5D3A-4EB8-BA01-BF3C88FA05AA/0/Jan19PED10003ProcedureforApplicantsinLitigation.pdf

Staff now has to flag any proposals and get council's approval before providing funding.

Therefore any funding for Connaught's mixed income proposal is dead....

"One of the Directors of the Grand Connaught Development Group Inc. is in litigation with the City on a real estate matter. It is senior staffs’ opinion that due to the nature of the litigation the relationship between the City and the bidder has been impaired. Therefore the recommendation of senior staff is that the financial incentive programs should not be extended to the project at 112 King Street East. On November 20, 2009 staff met with Mr. Tony Battaglia and advised him of senior staffs’ opinion. Mr. Battaglia advised that failure to provide a City loan under the Hamilton Downtown Property Investment Program would seriously jeopardize the proposed project.

At the Economic Development and Planning Committee on November 17, 2009 staff were instructed to inquire of the owner of 112 King Street East if they would consider the development of a hotel in view of the awarding of the Pan Am Games. At the meeting on November 20 Mr. Battaglia advised that a hotel would not be built on the site because the funding for same could not be secured."

matt602

Jan 24, 2010, 10:48 PM

The usual bullshit again. "Not giving us money? Alright. We'll just sit on it some more until we have to knock it over".

This time we need to play it smart and not call their bluff, instead making sure that we shove property standards up their ass every year that they let the building rot to make sure there is no way demolition by neglect can happen. They will be forced to sell or develop on their dime.

Battaglia has had 5 years to get this building going. The Century is having the final stabs thrust into it now and so many different people have pointed to the Royal Connaught as "next in line". It's high time for this city to stop making excuses for these land speculators.

Also as I type this, the Royal Connaught is wide open to trespassers. As it has always been for the past few years. It has been open in the same spot for at least a week, and it's as easy to walk into as walking into Jackson Square would be.

SteelTown

Jan 25, 2010, 2:16 PM

I can foresee the first two floors collapsing and rotting but the rest of the building should probably stand for another couple of decades.

For me I can imagine the Connaught be "the next Lister Block" situation. Years of neglect and heartaches. But it’ll take the city and the province to finally get it repaired and renovated. Hopefully the 2015 Pan Am Games will do the trick.

LikeHamilton

Jan 25, 2010, 4:22 PM

Also as I type this, the Royal Connaught is wide open to trespassers. As it has always been for the past few years. It has been open in the same spot for at least a week, and it's as easy to walk into as walking into Jackson Square would be.

This is interesting. Have you told anyone at the fire department about this? They are the only city department that is active on vacant buildings. They have a list of all the vacant buildings in the city and check them regularly and on complaints. The regularity of a buildings inspection depends on its size, history of violations, how well it was secured in the first place, etc. But a building can be secure at the time of inspection but insecure tomorrow. The inspections timing can be as long as every 3 months to, as in the Connaught at one time, twice a day.

They are the one who forced Battaglia to fix the standpipe fire fighting system in the building, remove most of the loose combustible from the building and secure it. They even have a plan drawn up to fight a fire in the building with details in what doors to go to, where to set up equipment and detailed drawings of the building.

They will act quickly on complaints but they are handicapped on what they can order by the laws they are governed under. They have a tough time ordering windows closed and roofs sealed up if they are out of reach of trespassers. They cannot do property standards!

They are the one who forced Darko to clean out all of the illegal storage out of the old Federal Building and board the place up. They have a perfect track record in taking people to court for violations and winning.

These are the people who cover the downtown core.

Hamilton Emergency Services – Fire
Fire Prevention Division
West District
Station 29
189 King St. E., Dundas
Hours 8:30 a.m. to 4:30 p.m.
905-546-2424 ext.1380
905-628-1151 fax

matt602

Jan 25, 2010, 9:00 PM

Thanks for the information, I'll contact them.

thistleclub

Jan 26, 2010, 11:52 AM

For me I can imagine the Connaught be "the next Lister Block" situation. Years of neglect and heartaches. But it’ll take the city and the province to finally get it repaired and renovated. Hopefully the 2015 Pan Am Games will do the trick.

It's not quite the same league as the Games, but we're also just under five years from Sir John A. Macdonald's 200th birthday. Would be nice to provide his statue with a pleasant view, rather than a panorama of stalled or stagnant places like the Connaught, Treble Hall, the Crazy Horse, Liaison College and the old Spectator frontage. Then again, maybe the PanAm infrastructure and rapid transit work will offer sufficient distraction for the ambitious souls in council chambers.

thistleclub

Jan 26, 2010, 1:55 PM

Sticker on front door of Connaught:

X

CONDEMNED
TO
OBLIVION.

A TRESPASS PROJECT

matt602

Jan 26, 2010, 10:34 PM

Haha. I thought the guy that handed those out stopped doing it since I hadn't seen one forever.

Cool to see them again.

markbarbera

Feb 1, 2010, 4:44 PM

There are rumblings that a new proposal for The Connaught is forthcoming, possibly involving a change in ownership.

realcity

Feb 1, 2010, 6:13 PM

I haven't seen one of those in forever either. I was worried he was trapped in a basement of one of the buildings he urban explores.

realcity

Feb 1, 2010, 6:14 PM

There are rumblings that a new proposal for The Connaught is forthcoming, possibly involving a change in ownership.

Thank fricken God. I hope it's true. It better be an out of town ownership. And it better be for a hotel.

markbarbera

Feb 1, 2010, 7:02 PM

Locals. If I heard right an announcement will be made this week.

SteelTown

Feb 1, 2010, 7:55 PM

Hope all goes well with good financing already in hand.

SteelTown

Feb 2, 2010, 12:03 AM

Concord Hospitality Enterprises involved?

markbarbera

Feb 2, 2010, 3:11 AM

Not to my knowledge. I don't have a great amount of detail to share, but from what I understand a local developer will be making a proposal for condiminium redevelopment. I don't know if they are partnering with, are contracted by, or will be purchasing the site from the COnnaught's current owners. I was told that there will be an announcement of some sort in the days to come.

SteelTown

Feb 2, 2010, 6:08 PM

I wouldn't mind seeing the Connaught turned into condos. Would be great if it was mixed used with condos and hotel space.

Either way just get it done before the Grand Ole Lady further deteriorates.

matt602

Feb 2, 2010, 6:29 PM

I'm definitely holding my comments until this is more realized. I've been disappointed far too often with this building.

realcity

Feb 2, 2010, 7:13 PM

I'm just as concerned with the historical importance of the interior, maybe even more then the exterior. The ballrooms, the lobby, the annex interior mall, the marble, light fixtures, front desk etc.

I'm not sure condos would preserve that. Buildings are/were designed for a specific function, institutional, government, residential, hospitality, theatre, etc. And they are designed for that original function (form follows function). When the original use changes the form usually has to as well.

I'm not a fan of adaptive reuse, for the most part. Most adaptive reuses destroy the historical architectural importance. Only saving a facade is not saving a building. If you want to preserve a building's heritage the exterior, interior and fixtures should all be preserved... and if possible the original use. Imagine if Dundurn Castle was turned into a banquet hall.

Or the lobby of City Hall was turned into a food court.... oops too late for that one.

SteelTown

Feb 2, 2010, 7:20 PM

Yea true. It would be a grand lobby for a condominium building.

The ballroom could be turned into a fitness centre or the owners could start a convention/banquet service. Obviously with permanent residence they can get retail back on the main floor.

realcity

Feb 2, 2010, 9:57 PM

Ya I want to try to sleep when there is a wedding reception two floors down.

SteelTown

Feb 2, 2010, 10:01 PM

The Connaught was well known for crazy New Year Eve parties, in fact CHCH used to broadcast live from there, and that didn't distrub others.

realcity

Feb 2, 2010, 10:26 PM

Those parties were at the Convention Center. "The Super Party" it was called.

So I guess you're okay living two floors over a banquet hall then?

SteelTown

Feb 2, 2010, 10:29 PM

Actually yea I'm hearing impaired so ha! hehe

Dunno why you get so serious when it's not even a proposal just a discussion.

realcity

Feb 2, 2010, 10:43 PM

It was called "The Super Party" tho and they were at the Convention Center, not the Connaught. If you're talking about the CHCH one.

I'm sure the Connaught held New Years Parties too, but the hotel guests probably all were attending the party, or assumed that if they stayed over nite in a hotel on New Years that there would be partying. And that's one night out of the year. Not every Sat nite in the Summer/Fall.

What I'm saying from the beginning is I'm concerned about the interior of the hotel being adaptively reused for condos. (if that is indeed the plan). The ballrooms couldn't be used as ballrooms. A fitness center is a good idea and possibly meeting/common rooms that condos have is another use. So long as they stay. But a business plan might see more units = more money if we demo the ballrooms.

Which is why I'm against adaptive re-use of historical buildings.

Why so serious?
Maybe I'm just losing too much faith in this City ever 'turning the corner' that we've been hearing about for 10 years. Heck of a long turn.

Try the city has been turning the same corner for so long it's now a circle.

SteelTown

Feb 2, 2010, 10:57 PM

Nah your our pessimistic forumer (I don't mean it in a bad way). Need someone like you to balance things out.

But seriously I bet the ballroom would likely be turned into a fitness centre.

realcity

Feb 3, 2010, 1:05 AM

A fitness center is a great idea. A common room is great too. They are quite large. I think two of them. And the finest looking ballrooms in the city... they were anyway. Much better then anything Michealangelos or Carmens could pull together with their lattice wood back drops and fake flowers.

They were beautiful if I can remember. Lots of classical embellishments, wall sconces and tapestry, giant crown mouldings and gold leaf.

hey i wasnt always the pessimist . we go way back dude. I joined when ? 2003. After 7 years of this forum and defending Hamilton, I find it difficult to keep positive. Seven years later and not much has happened since 2003 that leads me to believe things are improving.

heck, even the Connaught was a functioning hotel in 2003.

realcity

Feb 3, 2010, 1:10 AM

and you've had that same avatar forever :)

SteelTown

Feb 3, 2010, 3:17 AM

I'm just saying your like our version of Simon Cowell, harsh but reasonable and brings a balance.

For me I'm an optimistic kind of person.

Eventually we usually end up getting what we wish for. Failed the Commonwealth Games bid not once, not twice but three times but we got the Pan Am Games. Now we're talking about a 2030 Commonwealth Games after the 2015 Pan Am Games. I joined this forum back when Hamilton was bidding for the 2010 Commonwealth Games.

Tons of Lister Block proposals since the late 80's but ultimately it's finally getting renovated. Same will happen for the Royal Connaught. Back in 2003 you'd be an airhead for suggesting LRT or even BRT for Hamilton but now look at us. I can remember bitching about all the crackheads along James St North in 2004. I'm sure one day perhaps within this decade we will finally get an NHL team. Progress just tends to take longer than usual.

Zaz

Feb 3, 2010, 10:47 AM

Need someone like you to balance things out.

I bet Glenn Beck would agree with this approach :)
Having opposing views on every issue does not necessarily enrich all discourse. The assumption that truth always lies in the middle is false a lot of the time :) But I digress...

highwater

Feb 3, 2010, 3:10 PM

I bet Glenn Beck would agree with this approach :)
Having opposing views on every issue does not necessarily enrich all discourse. The assumption that truth always lies in the middle is false a lot of the time :) But I digress...

Normally I would agree with you, but Realcity's posts are almost invariably informative, especially re architecture, if a little on the pessimistic side. I think the 'balance' that Steeltown refers to is more a balance of tone. You won't see any uncritical boosterism from Realcity. And then there's his politics...

MattJelly

Mar 26, 2010, 11:41 PM

PETITION TO GIVE THE ROYAL CONNAUGHT A HERITAGE DESIGNATION

I'm forwarding an online petition intended to urge Hamilton City Council to give Downtown Hamilton's Royal Connaught a heritage designation under the Ontario Heritage Act.

The Royal Connaught is currently not designated as a heritage building. Let's urge council to prioritize and fast-track the heritage designation currently being considered by heritage staff. This building is an important part of the architectural fabric of downtown Hamilton, and the owners need to understand their responsibilities to maintain and protect this building in hopes that it can be eventually be restored and revitalized.

This building is an important part of our Downtown- and we need to make it abundantly clear to Hamilton City Council that we will never accept this building being subtracted from the skyline and added to the landfill.

Please sign the petition here, and pass it along far and wide:

http://www.ipetitions.com/petition/theroyalconnaught (http://www.ipetitions.com/petition/theroyalconnaught)

When we collect enough signatures, we'll be presenting this petition to Hamilton City Council. It's time to give the Royal Connaught the Heritage Designation it so obviously deserves.

Join our facebook fanpage: http://www.facebook.com/pages/Hamilton-ON/The-Royal-Connaught/306876282400?ref=nf

Thanks for your time.

Matt Jelly
www.bylawcrawl.ca

urban_planner

Apr 20, 2010, 11:27 PM

There was a guy in a cherry picker doing something on the back on the building today. Looked like something with brick in the section where a part of the building that was already knocked down was attached to the remaining structure.

highwater

May 25, 2010, 2:58 AM

http://www.facebook.com/home.php#!/photo.php?pid=12552573&id=523800553

SteelTown

May 25, 2010, 3:16 AM

Hopefully a judge will select good new owners.

SteelTown

May 25, 2010, 1:21 PM

Don't think the link is working.

Basically it's a cut out from the newspaper stating the Grand Connaught Development Inc group has gone bankrupt since May 17th. There's a meeting in early June to meet with the creditors.

I remember the last time the Connaught when bankrupt there was three or four bids which the judge could select from. He selected the only local bidder the Grand Connaught group.

markbarbera

May 25, 2010, 2:01 PM

Here's a working link (http://hamilton.yourclassifieds.ca/ads/view/6508902) to the classified ad, which reads as follows:

THE BANKRUPTCY AND INSOLVENCY ACT NOTICE OF BANKRUPTCY
This ad appeared in : The Hamilton Spectator

THE BANKRUPTCY AND INSOLVENCY ACT NOTICE OF BANKRUPTCY AND FIRST MEETING OF CREDITORS IN THE MATTER OF THE BANKRUPTCY OF GRAND CONNAUGHT DEVELOPMENT GROUP INC. OF THE CITY OF HAMILTON, IN THE PROVINCE OF ONTARIO Notice is hereby given that Grand Connaught Development Group Inc. (the "Company") was adjudged bankrupt pursuant to a Bankruptcy Order issued on the 17th day of May, 2010. KPMG Inc. was duly appointed Trustee of the Estate of the Company; and that the first meeting of Creditors will be held on the 7th day of June, 2010 at the hour of 10:00 am at the offices of KPMG located at 21 King St. West, Suite 510, Hamilton, Ontario. Dated at Hamilton, Ontario this 17th day of May 2010 . KPMG INC. Trustee in Bankruptcy 21 King Street West, Suite 510 Box 976 Hamilton, Ontario L8N 3R1 (905) 523-8200

I know there's always the 'silver lining' aspect to this story, but there is no pleasure in watching a group of well-intended businessmen lose millions on a dream to revive the Connaught. I fear this latest bankruptcy filing on this building, particularly in its present condition, puts its physical existence at risk.

SteelTown

May 25, 2010, 3:27 PM

So I guess it's just a matter of time before Harry Stinson puts in an offer with the bankrupty court.

highwater

May 25, 2010, 4:20 PM

I know there's always the 'silver lining' aspect to this story, but there is no pleasure in watching a group of well-intended businessmen lose millions on a dream to revive the Connaught. I fear this latest bankruptcy filing on this building, particularly in its present condition, puts its physical existence at risk.

Ok, but those "well-intended businessmen" are responsible for its present condition. It wouldn't have been nearly as costly to rehabilitate it when they first bought it, but they gutted it and left it to rot and have put its physical existence very much at risk, as you say.

markbarbera

May 25, 2010, 5:12 PM

I don't know if that's an entirely fair description of their efforts with the property. The gutting of the building was preliminary work for their original intention of restoring it as a hotel. Unfortunaltely financing collapsed early on and repeated attempts to attract new financing to complete the restoration of the hotel failed. Unfortunately last year's attempt to repurpose as residential also failed, and the building continues to sit empty with the interior gutted.

Bankruptcy proceedings will delay property turnover likelyfor the rest of the year, and the vacant building will endure another winter in its present condition. Seeing as investors have avoided the building like the plague for five years now, I don't see any reason to hold out hope for a rush of interest in the auction (as an aside, I would hardly expect Harry Stinson to be in a position to move in on the property given he is pretty heavily leveraged on two other projects that haven't even broken ground).

I suppose we can hope for some investor swooping in on the auction with hopes of getting a bargain price, but that tends to attract people not adequately positioned to finance and deliver on a restoration. Heck, that's how the current owners came upon the building, and look where that has led. I for one wouldn't want to see history repeat itself.

highwater

May 25, 2010, 5:53 PM

The gutting of the building was preliminary work for their original intention of restoring it as a hotel.condition.

I have heard from a number of knowledgeable sources that the gutting was entirely unnecessary.

Seeing as investors have avoided the building like the plague for five years now, I don't see any reason to hold out hope for a rush of interest in the auction

The consortium hasn't exactly been open to investors, either refusing to entertain offers seriously, or asking a ridiculously inflated price given the damage they had done to the building. I agree that interest may be low now given the further deterioration of the building. So sad. It didn't need to be this way.

SteelTown

May 26, 2010, 11:10 AM

Connaught project gets bankruptcy order

May 26, 2010
Meredith Macleod
The Hamilton Spectator
http://www.thespec.com/News/Local/article/775782

Two partners in the development company behind a six-year odyssey to revive the Royal Connaught have pulled the plug.

A bankruptcy order was issued May 17 against Grand Connaught Development Group, which bought the bankrupt hotel for $4.5 million in 2004.

A creditors meeting has been scheduled for June 7.

Developers Ted Valeri and Rudi Spallacci are the only listed executives in a numbered company cited on the bankruptcy order. Valeri has been part of Grand Connaught since it bought the hotel. Spallacci joined the consortium sometime since.

The numbered company bought a second mortgage on the property in January.

Calls to both Valeri and Spallacci were not returned yesterday.

Consortium partner Tony Battaglia, who holds another mortgage on the King Street property, said he could not comment on the matter because it's a legal proceeding.

"I'm extremely disappointed that it's reached this stage," he said.

Bankruptcy documents obtained by The Spectator yesterday did not list creditors, debts or assets. The assigned bankruptcy trustee, Kevin Treacy at KPMG in Hamilton, said he has yet to see financial documents.

"We haven't accessed any books or records," he said. "We're trying to get those now.

It's unclear what the bankruptcy means for the development of the site or whether it will mean a sale of the building. There were no proposals on the table after a bid to turn the landmark into affordable housing fell apart earlier this year.

Another consortium partner, hotelier Oscar Kichi, said he was surprised by the bankruptcy move.

"We couldn't do anything," he said. Kichi declined to say how much he has invested in the development, but said he has "lost quite a bit of money."

Kichi is hopeful the 94-year-old structure, considered by many to be the linchpin of the downtown, will come up for sale. He thinks it would be a perfect spot for a potential shared campus between Mohawk and McMaster.

"There would be no place better than down there. The market for hotels in Hamilton is not great."

Downtown Councillor Bob Bratina thinks the bankruptcy move is an internal matter between the partners. "The people involved could be sorting out who owes what.... It's like a cash call. Who's in and who's out?"

Bratina said he's hopeful the receivership will trigger a sale to a buyer willing to invest in the building.

Citizen advocate Matt Jelly, who has persistently pressured the Connaught's owners to take better care of the property, thinks the bankruptcy is a positive step.

"I see the owners as an impediment to the Connaught's future ... I think they've probably exhausted their creativity or willingness to do something about the Connaught."

Ron Marini, director of the city's downtown renewal division, said the bankruptcy could be a "long and protracted matter" and the city will keep a close eye on it.

THE ROYAL CONNAUGHT SAGA

November 2004: Royal Connaught goes bankrupt.

January 2005: Consortium of investors called Grand Connaught Development Group buys the property for $4.5 million. They immediately announce $40-million plans to restore the building to a high-end hotel, condos and offices.

September 2006: It's announced the Connaught will become a luxury Marriott Renaissance brand, with an adjacent condo tower. The price tag is about $65 million.

April 2007: Consortium vehemently denies rumours the project is failing, but admits landing financing is tough.

February 2008: Developer Harry Stinson offers $9.5 million for the building and promises to restore the hotel and build a condo tower next door.

June 2008: Stinson fails to line up the necessary financing and the consortium says it is moving forward on its own plans.

September 2009: City backs Grand Connaught bid to turn the former hotel into affordable housing, triggering a public outcry.

December 2009: The province denies funding for the project.

March 2010: The Connaught project is left off the city's new submission for provincial affordable housing funding.

SteelTown

May 28, 2010, 10:20 AM

Connaught group nearly $4.6m in red
Liabilities around $13m are three times what they paid for hotel

May 28, 2010
Meredith Macleod
The Hamilton Spectator
http://www.thespec.com/News/Local/article/777386

The ownership group of the Royal Connaught is close to $4.6 million in the red, according to bankruptcy documents.

The statement of affairs for Grand Connaught Development Group Inc. dated May 25 shows assets of $8,223,788 against liabilities of $12,817,189.

Those liabilities are close to triple what the group paid for the iconic hotel five years ago.

The only asset listed is the building and property at 112 King St. E.

According to corporate documents, Grand Connaught is a partnership of developer and former airport president Tony Battaglia, Hamilton hotelier Oscar Kichi and Oklahoma businessman Mehran Koranki.

Though local developers Ted Valeri and Rudi Spallacci clearly have a huge stake in the property, they are not listed as directors of Grand Connaught.

The bankruptcy documents show the secured creditors are a numbered company controlled by Valeri and Spallacci, which holds a mortgage of $3,975,000; Battaglia's Westpark Development Inc., which holds a mortgage of $3,145,833; and investment company executive Mario Frankovich, who is owed $562,250.

There are 24 unsecured creditors listed, owed a total of $5,134,106. Topping that list are Westpark Development Inc. at $1,679,055, T. Valeri Construction at $1,268,993, the Mancinelli Family Trust at $1,078,868, Koranki at $577,883 and Kichi at $380,827.

The documents show the ownership group owes no taxes to the city or federal or provincial governments. Other creditors include Horizon Utilities and local accounting and law firms.

A creditors meeting has been scheduled for June 7.

The documents list no cash, fixtures, furniture or equipment as assets.

A bankruptcy order was issued May 17 against Grand Connaught, which was awarded the-then bankrupt hotel for $4.5 million in 2005.

The bid beat four others.

The recent bankruptcy was triggered by Valeri and Spallacci's numbered company, which bought out a mortgage held by Cash Banas in February.

Banas, believed to own a business in Hamilton and to be an associate of Battaglia's, was sold a $3-million mortgage by Grand Connaught in June 2006.

Valeri could not be reached and Spallacci declined to comment, through a lawyer, yesterday.

Battaglia, president of Grand Connaught, also declined to speak, and efforts to reach Banas have been unsuccessful.

matt602

May 28, 2010, 9:06 PM

Not surprising that none of those jerks will say anything about it.

thistleclub

May 28, 2010, 10:53 PM

The recent bankruptcy was triggered by Valeri and Spallacci's numbered company, which bought out a mortgage held by Cash Banas

Fittingly, Cash flow problems.

LikeHamilton

Jun 18, 2010, 3:45 AM

There are now "For Sale" signs on the building.

Millstone

Jun 18, 2010, 4:37 AM

There are now "For Sale" signs on the building.

And the cycle begins again. This is sure to be followed by another 10 years of rot until some other wiz-bang speculator comes up with a brilliant plan and no cash.

bluevue

Jun 18, 2010, 10:45 AM

Harry....get the other stuff done first, and then go for this please.

markbarbera

Jun 18, 2010, 2:59 PM

Is there a reason why this thread still shows this project as a renovation? From all intents and purposes, the bankruptcy and for sale signs would indicate the status should really be changed to "abandoned".

Sad thing is, it could have been well on its way to renovation and occupation. Instead it sits abandoned.

JoeyColeman

Jun 18, 2010, 7:15 PM

http://thespec.com/News/BreakingNews/article/791839

LikeHamilton

Jun 18, 2010, 7:19 PM

Connaught up for sale

Paul Morse the Spec

The Royal Connaught is up for sale for $12 million.

A consortium trying to develop the defunct downtown hotel has entered bankruptcy proceedings. A mortgage-holding numbered company, who is a secured creditor, has put the building up for sale, said bankruptcy trustree Kevin Treachy.

bluevue

Jun 19, 2010, 2:03 AM

Harry. Please do you the others first as you wanted, and then eye this up in a year and bring the old lady back and a major retail anchor to support (say a main floor fortinos with easy acesss for all downtown supported via king and main streets. Come on! my 2 cents.

SteelTown

Jun 19, 2010, 1:20 PM

For sale: Royal Connaught
Troubled downtown landmark back on the market for $12 million

June 19, 2010
Paul Morse
The Hamilton Spectator
http://www.thespec.com/News/Local/article/792208

The empty and boarded-up Royal Connaught Hotel is back up for sale, and this time the asking price is $12 million.

A bankruptcy order was issued May 17 against the Grand Connaught Development Group, which bought the bankrupt downtown hotel at the corner of John and King streets for $4.5 million in 2005.

"It's under a power of sale proceeding, and the second mortgage, which is a numbered company, is running the sale process," said bankruptcy trustee Kevin Treacy of KPMG in Hamilton.

"They are also commissioning formal appraisals. They are in the works now and we are waiting for them to come through."

Bankruptcy documents show creditors are owed more than $12.9 million -- about $7.7 million to secured creditors and $5.2 million to unsecured creditors.

The documents list property assets as more than $8.2 million, leaving the development group close to $4.7 million in the red.

Corporate documents show the numbered Ontario company that holds a second mortgage on the Connaught worth nearly $4 million is controlled by local developers Ted Valeri and Rudi Spallacci.

"I can't comment on any of this stuff," Spallacci said yesterday.

"Under normal circumstances I wouldn't have a problem, but ... I can't comment."

"Let's hope somebody's looking around," said Ron Marini, the city's director of downtown community renewal.

"In downtown, there has to be an economic sense for everything and nothing happens without an economic sense."

The city's downtown incentives are important and necessary to make these types of projects go forward, he said.

"I guess the economic sense wasn't there, that's all I can say. It's a tough row to hoe."

The ownership consortium includes developer and former airport president Tony Battaglia, hotelier Oscar Kichi and Oklahoma businessman Mehran Koranki.

When the development group bought the building in 2005, it announced a $40-million plan to restore it into a high-end hotel with condos and offices.

Two years later, the consortium admitted financing the project was difficult.

In early 2008, developer Harry Stinson offered $9.5 million for the building and promised to restore the hotel and build an adjoining condo tower. But he was unable to find financing for it.