Close the door on the Residences at Five Points.
The 20-storey project in downtown Barrie will not go ahead after residential condominium sales failed to reach 85 per cent and construction financing could not be arranged by May 1.
BarrieToday has obtained an email sent to buyers.
“Although the project got off to a good start, COVID-19 has proven to be a hurdle that the project cannot overcome,” Advance Tech Developments president Joseph Santos wrote in the email. “The project’s financial partner was unable to continue its involvement in the project and the state of emergency with on-again, off-again lockdowns and restrictions have hampered our ability to achieve meaningful additional pre-sales.”
There were to be 208 residential condominium units with associated parking and ground-floor commercial uses. Community benefits required for this development include nine residential units to be provided at affordable rental rates for 20 years, an approximately 1,000-square-foot public square, and furnishings of $10,000 facing the Five Points.
In his email, dated April 28, Santos said the agreement of purchase and sale for the project contains early termination conditions. The agreement is conditional on, for example, the developer entering into binding agreements of purchase and sale for 85 per cent of the condominium units by May 1, 2021.
The deal is also conditional upon the developer obtaining and accepting financing for construction of the project on terms satisfactory to it, again by May 1, 2021.
“It is with much regret that we must inform you that, despite our reasonable commercial efforts, as of the date of this letter (April 28), we have not satisfied the aforementioned conditions, nor do we anticipate that the conditions will be satisfied prior to the May 1, 2021 condition date,” Santos wrote in the email.
“Accordingly, pursuant to… the agreement of purchase and sale, this letter shall constitute our written notice to you that the agreement of purchase and sale shall terminate May 1, 2021.”
Buyers are being told that in accordance with the Condominium Act of 1998, their deposits remain in a trust account with the developer’s lawyers and will be fully refunded. There will also be no interest paid on the deposits.
Santos could not be reached for comment Wednesday by BarrieToday.
The property, part of which has been vacant since a large fire in December 2007, is at the intersection of Dunlop Street West and Bayfield Street. Its address is 2-14 Dunlop St. W., 43 and 45 Maple Ave. and 30-42 Bayfield St.
Coun. Keenan Aylwin, who represents the downtown, said this property still has a future.
“People are flocking to Barrie and I have no doubt that this particular site will see some movement and development in the years to come,” he said. “Residential development in downtown Barrie is critical to creating a vibrant and safe community.
“I’m hopeful that the large number of projects that are going ahead, including the theatre block development, the development on the former Barrie Central lands and the lakeshore development, among others, will contribute to that vibrant community that we are creating,” Aylwin said.
