Potential purchase of The Connolly didn't go through, condo project still in limbo
Spergel Inc., the receiver of the project, says in a letter they will continue marketing efforts
The Connolly, the 30-storey residential condo tower planned for the site of the partially-demolished James Street Baptist Church, almost had a new owner in the fall.
The Ontario Superior Court of Justice appointed Spergel Inc., an insolvency firm, in June to be the receiver of the project headed by Stanton Renaissance, a company owned by Louie Santaguida.
In a Dec. 20 letter to condo unit purchasers, Spergel says there was "a conditional agreement of purchase and sale," but it "will not be completed."
Neither Santaguida nor Spergel were immediately available for comment Wednesday.
Spergel said in the letter that it will resume marketing the property for sale. Senior principal Deborah Hornbostel reassured unit buyers that their deposits are held in trust by a law firm.
Once the land is sold, Spergel will determine "whether or not the purchaser of the lands will require an assignment of the existing prebuild agreements."
"We appreciate the difficulty that this uncertainty may cause you," the letter says, "and we will keep you updated with further information as it arises."
This project was the subject of controversy when Santaguida said he would tear down two-thirds of the church built in 1878. Parts of the building have been demolished since 2014, but no development has occurred. Now the area is fenced off to visitors.
Bad history
The Connolly wasn't the first of Santaguida's projects to have problems. Some of his other business ventures have shown a history of bankruptcy.
On the Go Mimico Etobicoke went into receivership in April this year. The condo project was first marketed for sale six years ago, but was only 15 per cent finished in April.
Buyers of The Connolly were already starting to worry when the project was announced it will go into receivership.
Charles Azulay had put down $20,000 for a unit.
He told CBC News in July he had wanted to preserve parts of the church because he knew it very well.
"At this point now, some things have changed," he said. Instead, "I'm going to buy my dad's cottage from him. I always think that everything happens for a reason."