Some major condo projects in Mimico are on hold after developer Vandyk Properties went into receivership.
The receivership of developer Vandyk Properties earlier in January will cause major delays of the Mimico GO station and a number of condo complexes in the area.
Metrolinx was notified last November of a receivership application against Vandyk Properties for their lands adjacent to Mimico GO Station, according to reports.
It means developments at 23 Buckingham Street, 39 Newcastle Street and 327 Royal York Road, that was meant to create more than 2,000 new housing units will also be placed on hold.
Vandyk Properties was hailed as the saviour of Mimico with many projects on the go before filing for receivership.
Upon notification of the receivership filing, Metrolinx took immediate steps to protect public lands and all associated infrastructure and exercised their right to terminate the agreement with Vandyk.
While this termination will end the current arrangement with Vandyk and their obligation to deliver transit facilities on behalf of Metrolinx, it gives Metrolinx flexibility to re-negotiate an agreement with the future owners the adjacent property.
Metrolinx will continue to explore options to deliver new and improved transit infrastructure benefits at Mimico GO Station with a third party through the transit-oriented communities’ program
The developer had major projects underway on Royal York Road, at the Mimico GO Station and Newcastle Street.
2495065 Ontario Inc., a real estate holding company which is part of the larger Vandyk Group and owns development property located in the Mimico neighbourhood, was placed into receivership on January 8 on application by Otéra Capital Inc., owed approximately $73 million.
That same day various other members of the Vandyk Group, which own lands in Mississauga, Brampton and Etobicoke intended for residential development projects, were placed in receivership on application by KingSett Mortgage Corporation and Dorr Capital Corporation, owed approximately $183 million.
The companies have defaulted on numerous mortgages for the properties they are developing, including by allegedly diverting millions in funds, failing to pay property taxes and failing to pay principal and interest when due.
Vandyk was playing a huge role in the redevelopment of the Mimico Go Station area, with a new pedestrian-cyclist bridge to run across Royal York Road.
Mimico is one of Toronto’s priority “Regeneration Areas,”and the reinvestment and intensification will open up new residential and employment opportunities in the community. Vandyk Properties has invested in the Mimico Triangle as majority owners.
Grand Central Mimico is a master-planned, transit-tailored community comprising over 2 million square feet of mixed-use development. Anchoring the community is a ground breaking partnership with Metrolinx, securing the build towards a brand new Mimico GO Station.
More than 2,000 housing units are now on hold with Vandyk in receivership.
The development spans four city blocks and would have created over 1.85 million square feet of new condos. It would have been designed as a high-energy district characterized by connectivity, open public space, winding parks, and modern lifestyle amenities.
The proposed development on the site spans two blocks with a total of six towers with heights of 22, 30, 34, 35, 36 and 36 storeys. Phase 1 applies to 315-327 Royal York Road and includes two towers and a new main entrance and amenities for Mimico GO station.
Phases 2 and 3 apply to 27-39 Newcastle Street and includes two towers in Phase 2 and two towers in Phase 3, as well as a new secondary entrance and parking for Mimico GO station .
A total of 2,078 dwelling units are proposed with a unit mix of 135 studio units, 781 one bedroom units, 718 two-bedroom units and 210 three-bedroom units.
Also in jeopardy is a new pedestrian-cyclist bridge promised by Vandyk to run across Royal York Road, connected to the Mimico-Judson Greenway.