80 King William | ? |5 floors | Renovation

[Millstone]

3 lockboxes on the front door to my building.

[Gregski]

Does anyone know if construction has come to a halt at this site again? I tried looking for listings on MLS but they're no longer there as well. What's going on here? Looks like a big mess from the get-go.

[matt602]

It seems like it. I haven't seen anything going on in about a month.

[DC83]

from raisethehammer.org

...
Heard some bad news the other day, Trinity Landing is done, the bank wants their money and the City has lost its million in the project. Hope it's not true though
http://www.raisethehammer.org/index.asp?id=760

Anyone able to back this rumour up?

[raisethehammer]

not officially, but based on activity on site I would say so.

[Millstone]

The building kinda sucks from the MLSes that I've seen.

[raisethehammer]

they screwed up the outside. It was a nice warehouse with tons of potential.
I kind of hope the project is dead so they don't ruin the building anymore.
Maybe someone else can salvage it.

[SteelTown]

Hamilton Downtown Residential Loan Program – 80 King William Street

City Council at its meeting held June 11, 2003 approved a loan under the Hamilton Downtown Residential Loan Program (H.D.R.L.P.) for 80 King William Street, the former Spectator building, in the amount of $1,200,000.00 for the conversion of the property into fifty (50) condominium units.

The loan under the H.D.R.L.P. starts to flow at 60% project completion. To date there have been six (6) advances in the total amount of $1,101,207.00. Note that an administration fee of $20,000.00 was deducted from the total advances therefore the owner has received a total of $1,081,207.00.

The terms and conditions of the HDRLP dictate that the City’s loan is registered as a second mortgage on title of the property and, that a minimum equity requirement of the owner is 25%. The equity is calculated on the total amount of the first and second mortgages in comparison to the appraised value of the property upon its redevelopment. These requirements were met.

The bank that holds the first mortgage on 80 King William Street has sought a Court Appointed Receiver as a result of a default of the debtor which it is entitled to do. The Receiver was appointed by the Courts on November 12, 2008. The Receiver is now responsible for the entire project and has been directed to prepare a marketing and analysis plan and report back to the Courts. A $200,000.00 borrowing charge was also approved by the Courts, a portion of which will fund the cost of cladding the property as a measure of protection against the elements. The City of Hamilton as a creditor will work with the Receiver with respect to protecting the City’s interest in the project. Council will be updated on a regular basis on the progress of the aforementioned initiative.

[Dundasguy]

I think this is a positive. The court will order a sale of the project at a POS significant discount and will in all likelyhood be completed.

Unfortunately, as the second mortgage holder, we will be subsidizing that discount.

[adam]

That's okay, the downtown has been milked dry with subsidizing suburban sprawl for long enough. Time to give a bit back, eh?

[FairHamilton]

Originally Posted by Dundasguy

Unfortunately, as the second mortgage holder, we will be subsidizing that discount.

At least if it gets completed the city will realize increased tax revenue from the property, and downtown will have approx. 75 - 85 new non-public housing residents (residents is my guesstimate of 50 units with 1.5 to 1.7 occupants/unit)

[Gregski]

Does anyone know who the trustee is or will be?

[Lukey]

Gregski, do they still have some of your dollars?

[Gregski]

Ya they do... Not a lot compared to what they owe the city and the banks but it's just a principle. You know what I mean.....

[Dundasguy]

Was your deposit held in a trust account with the lawyer or did you place the deposit directly with the builder?

[Gregski]

I made the mistake of making a portion of my deposit made out to the builder. I was naive at that time I guess. The other portion went to a trust account.

When I backed out of the deal (with Trinity Landing) part of the agreement was that I would get that deposit returned to me. I got the one from trust account returned but fighting to get the other one as well. I know, my mistake and little chance of getting it back.

[Dundasguy]

That's unfortunate. I have seen this before when people have purchased renovated lofts, apartments, etc. There is no deposit protection requirement when the housing is not deemed "new"

Good luck.

[SteelTown]

City: $1.2m loan safe, buyers eyeing condo project

December 06, 2008
Eric McGuinness
The Hamilton Spectator
http://www.thespec.com/News/Local/article/477810

More than a million Hamilton tax dollars are at risk in the financial collapse of a downtown condo conversion project, but city officials are confident the money is safe.

Senior business development consultant Gord Moodie said yesterday that "three, good, well-heeled purchasers" are in line to take over Trinity Landing, a 50-unit redevelopment of the former Spectator printing plant at King William and Catharine streets.

City council approved a $1.2-million downtown residential loan in 2003. Construction began in 2004, stalled early in 2007, resumed late in the year, then came to a halt again early last summer.

Real estate agent Marvin Caplan, who handled sales for the developer, an Ontario numbered company represented by Harsuk (Harry) Ganatra of Ancaster, said more than two dozen would-be residents put deposits on the loft-style apartments, then obtained refunds when deadlines were missed.

He said two are still seeking repayment of cash they put toward upgrades.

The city began advancing its loan in stages when the project was 60 per cent complete. By the time construction stopped, it had handed more than $1,081,207, secured by a second mortgage. The Canadian arm of Mumbai-based ICICI Bank, which holds the first mortgage, went to court to have a receiver appointed Nov. 12.

City staff, in a report to councillors this week, said the court had directed the receiver to prepare a marketing plan and authorized it to borrow $200,000 to put cladding over exposed insulation panels on the top floor.

Moodie said in a telephone interview: "The mortgages total roughly $5 million and we had an appraisal in November at $8 million. We're looking for a new purchaser to assume both mortgages and post a bond to guarantee completion. I'm confident that will transpire."

The city has loaned about $10 million to create hundreds of housing units and hotel suites in the core. Trinity Landing is the only project forced into receivership.

"This is our first hiccup," Moodie said.

Caplan, who said he had at one point sold 27 of the 38 units in the original three-storey building and two of 12 in a penthouse addition, is still bullish.

"It's going to be a good-news story eventually," he predicted. "It's a wonderful project. The fourth floor is going to be spectacular, with private rooftop terraces for all but two units. I'm very anxious to be rehired to sell them again."

Caplan hopes it will be renamed something like Condos At The Old Spectator.

Downtown Councillor Bob Bratina said: "We're confident that the project will eventually be finished and the units sold. My vision is that it becomes a downtown student residence."

[Mack297]

Hmmm ... typical Spec misprint or ..."Caplan, who said he had at one point sold 27 of the 38 units in the original three-storey building and two of 12 in a penthouse addition, is still bullish."

Mack

[Millstone]

Originally Posted by Mack297

Hmmm ... typical Spec misprint or ..."Caplan, who said he had at one point sold 27 of the 38 units in the original three-storey building and two of 12 in a penthouse addition, is still bullish."

Mack

It's probably unlikely it's a tongue-in-cheek reference to 'bullshit', but rather just the regular definition.

Although the former would be cool.