MFD 'audit' of Joe Ieradi's Westmount financials
Here are a couple files that should interest MFD readers following the Mondo Condo fiasco...
April 20th Toronto Staff Report
This first report shows residential permit applicants that were filed before a December 31, 2004 deadline. After this deadline the associated costs increase from approx. $900-1500/unit.
From the report we see that both Westmount (2737 Keele) and Independence Way (2701 Keele) filed their applications last minute. A curious fact, since they've been planning this for some time, years actually.
The issuance of a permit would then take up to 6 months. Looking at the speedy Independence work and the turtle pace of Westmount, we can deduce whose permit stood a good chance of being approved. The guidelines can be found in the linked file above.
This file gives us even better information...
JUNE 17 TORONTO STAFF REPORT
Now we're into financials! The file gives us the Construction Value of the building projects in Toronto
quote:
2737 Keele St Interior Alterations to Apartment Building $2 000 000
2701 Keele St New Apartment Building $26 892 058
So our friend Joe Ieradi has told the City of Toronto that with only $2M, he can turn the pile of rubble on Keele St. into well... whatever stupid condo/retail image pops into your head. It's a nice round number too... imagine that... 247 units calculated perfectly for the brilliant renovators.
In contrast the guys next door are shelling almost 27M out for their construction. Maybe they should have just kept the old Canadian Tire building up, threw in walls, a tunnel, pool and done a little stuccoing to save on costs.
This brings up the obvious question of why Joe was given (our own RV is like a computer with these figures!)...
- a mortgage of $19,000,000 from the Vancouver-based company BCMP Mortgage Investments
- Plus a $3,800,000 mortgage from Royal Host REIT
- Plus another $2,000,000 mortgage from Royal REIT
- Plus a $4,300,000 mortgage from CCWIPP's Propco 16
There's just a little bit 'extra' cash coming in isn't there?? Ya think??
The hotel sold for $11M in 1998. Falling apart in 2005. Add $2M for construction and a few bucks for the furnishings. Doesn't quite reach the mortgage values.
Did Joe quote different figures to CCWIPP, Royal Host and the BC mortgage company? Did they get swindled by this super-businessman?
Or did $2M represent the cost of the Westmount scam, the closing costs of the hotel (which Royal Host claims due in their own financials), the emptying of the hotel, the removal of things like asbestos and finally the demolition of the ugliest building and garage in Toronto. Could that make more sense??
Whatever the plan was... where are all those extra millions going??