Ur­ban­corp site on Bayview sold af­ter bank­ruptcy

North York Post - - News -

The de­vel­op­ment site on the north­east cor­ner of Bayview Av­enue and Post Road has been sold af­ter the previous owner, Ur­ban­corp, an­nounced it would file for bank­ruptcy pro­tec­tion last year.

The prop­erty has now been sold to Claude Bit­ton, a lo­cal land­lord and real es­tate in­vestor, ac­cord­ing to On­tario Su­pe­rior Court of Jus­tice doc­u­ments dated Sept. 15, 2016. Pro­ceeds from the sale will be used to re­pay home­buy­ers and out­stand­ing debts.

In Jan­uary 2016, the de­vel­oper Ur­ban­corp was granted ap­provals at the On­tario Mu­nic­i­pal Board (OMB) to build 37 town­houses on the site at 2425 and 2427 Bayview Ave. Three months later, Ur­ban­corp’s CEO Alan Saskin an­nounced the com­pany would file for fi­nan­cial re­struc­tur­ing un­der the Bank­ruptcy and In­sol­vency Act in Canada.

The court or­dered that KSV Kof­man Inc., a fi­nan­cial re­struc­tur­ing firm han­dling the Ur­ban­corp case, pro­vide home­buy­ers who in­vested in the site with in­di­vid­ual claims based on the amount of their de­posit.

The de­posits made by home­buy­ers on the prop­erty amounted to ap­prox­i­mately $5.6 mil­lion.

KSV was also in­structed to re­pay the first mort­gage obli­ga­tions of ap­prox­i­mately $10.4 mil­lion ow­ing on the prop­erty, to Atrium Mort­gage In­vest­ment Cor­po­ra­tion and Terra Firm Cap­i­tal Cor­po­ra­tion, on be­half of Ur­ban­corp.

The va­cant lot has been the cause of con­tro­versy dat­ing back to 2006 when de­vel­oper Hush Homes got ap­proval from the OMB to build 20 town­houses on the site. The com­pany later filed for bank­ruptcy, and the site was pur­chased by Ur­ban­corp.

Claude Bit­ton did not re­spond to re­quests for com­ment by press time.

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