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DS-16-89
2199957 Ontario Inc.
40 St. Regis Crescent
Toronto, Ontario, M3J
Bowood Properties (2006) Inc.
6A-179 The Donway West, Suite
#141
lYS
Toronto, ON M3C 2E8
May 3, 2016
City of Oshawa
SO Centre Street South
Oshawa, ON LlH 327
Attention:
Mr. Paul Ralph,
Commissioner of Development Services
Reference:
Delegation Request to appear before the Development Services Committee
Meeting, May 9, 2016
Regarding DS-15-161-68-72 King Street East {former Genosha Hotel)
On April 29, 2016, your office issued a further extension, to May 31, 2016, of the Council-Approved
condition relating to the Bowood acquisition of ownership related to the property located at 68-72 King
Street East.
OELGATION REQUEST
On behalf of Bowood Properties (2006) Inc. and 2199957 Ontario Inc., we request an opportunity to
address the next meeting of the Development Services Committee on May 9, 2016 to make
representation that Bowood has taken ownership in the corporate entity that owns 68-72 King Street
East and fulfills the Council-approved condition. The delegation will include Richard Senechal, Tony
Maiorano, and the undersigned, Tracy Christie.
We seek Committee and Council approval that:
1) The condition related to the Bowood ownership as presented is sufficient to meet the
requirements as approved by Council as set forth in DS-15-1615.3(2); and
2) The condition related to the scheduled occupancy date is adjusted from March 31, 2017 to 1
August, 2017 as set forth in DS-15-1615.3(2).
At the April 4, 2016 meeting of the Development Services Committee ("DSC"), the Councillors did not
approve an assignment of the DS-15-161 agreement to a party other than Bowood without a detailed
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review and strongly urged the primary parties to get their act together or risk losing the civic assistance
package from the City and the Region that expires April 30, 2016.
Collectively and individually, Councillors and City Staff gave clear advice necessary to the owners and
developers of 70 King Street East in order to meet the conditions specified in DS-15-161 and to address
the concerns regarding the delay in development.
There were three (3) main areas of concern to the DSC and the Development Services staff.
A. Bowood Ownership of the property
B. Management Capability of the ownership team to complete the Project
C. Financial Capacity of the ownership team to complete the Project
The primary parties, Bowood Properties {2006) Inc. ("Bowood") and 2199957 Ontario Inc.
("2199957") have clearly heard both the Committee members and the Development Services Staff
in each of these areas.
The most time-sensitive issue is that of the Bowood ownership of the property in order to retain the
City and Region incentives currently in place.
A. Bowood Ownership of the Property
Bowood has taken ownership in the corporate entity related to the property at 70 King Street East ("70KSE"). Excerpt from DS-15-161 5.3(2)
That Bowood Properties (2006) Inc. enter into an agreement with the City setting out
performance criteria related to the approval of the Central Business District Renaissance a
Community improvement Plan including but not limited to:
•
Bowood, or a corporate entity to which title is given related to Bowood, acquires ownership
of the property by December 31, 2015 {later extended twice to April 30, 2016].
1) Bowood has acquired ownership in the property at 70 King Street East effective April 22, 2016
through share ownership rn 2199957 Ontario Inc. Supporting documentation is available for
review by City Staff.
2) Bowood will continue to provide construction management leadership.
3) All property taxes are paid to date.
B. Management Capability of the Ownership Team to complete the Project
The ownership team for 70 King Street has combines the Bowood's construction leadership 2199957's ownership which provided the knowledge and the capital necessary that together provided the results in 2015 that the Council is seeking to finish the restoration of the former Genosha Hotel. 2
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Christie and Bowood executed quick, quality construction results and even more extensive exterior
stone restoration that had first been anticipated. Bowood has had the confidence of the City Staff
and of Council in the proven construction leadership. The quality and speed of the exterior
renovations including the stone restoration of the historic fa~ade, the exterior historic window
treatments meeting, and the 3 new roofs gives strong physical evidence of the Management
capability to complete.
Senechal and 2199957 have demonstrated commitment with new capital funding necessary to
provide for extensive site remediation, site preparation, and exterior restorations.
Together, the 2199957 partnership team has the capacity and capability to complete the project.
C. Financial Capacity of the Ownership Team to complete the Project
The owner, 2199957, has already committed significant funding into the restoration of 70KSE for both hard and soft costs. The equity committed brings the cost to complete within the acceptable thresholds for construction financing. It is expected that new full construction financing will now be in place by end of May. D. Projected Occupancy Date
The Management Team at 70KSE has completed a review of the project. Given the extended time
necessary to rebuild the two elevator shafts, it is necessary to adjust the Council-approved condition
relating to the scheduled occupancy date from March 30, 2017 to August 1, 2017. The current
condition is shown below:
Excerpt from DS-15-161 5 .3(2}
The subject development, including interior ond exterior improvements, must be complete and
the building available for occupancy by March 30, 2017 and no incentives will be provided or paid
until the project is completed to the satisfaction of the City;
In summary, we seek Committee and Council approval that:
3) The condition related to the Bowood ownership as presented is sufficient to meet the
requirements as approved by Council as set forth in DS-15-161 5.3(2); and
4) The condition related to the scheduled occupancy date is adjusted to 1 August, 2017 as set forth
in DS-15-1615.3(2).
Respectfully submitted,
Bowood Properties (2006) Inc.
2199957 Ontario Inc.
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