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+--- Thread: The Shannondale (née Electrohome, 152 Shanley St) | 8 fl | U/C (/showthread.php?tid=1557)
Electrohome Factory - Spokes - 11-23-2018
Thread to discuss the electrohome factory that's barely standing. (we'll migrate old posts over)
RE: Electrohome Factory - Spokes - 11-23-2018
Kitchener will try to force sale of Electrohome site in January
Quote:The city will make a second bid in January to sell the contaminated Electrohome site.
The building at 152 Shanley St. sits in the middle of a residential neighbourhood, but it has been vacant for decades. A notorious eyesore, the 1887 building is in poor shape and contaminated. For the last several years, its owner, a numbered company, has not paid property taxes or even carried out basic snow clearing and grass cutting.
The city tried to force a tax sale of the building last year but received only a single bid of $200,000 — well short of the minimum bid of $1.1 million, the asking price.
So the city is trying again, this time slashing the price tag by 60 per cent to about $450,000 and signalling to prospective buyers that Kitchener is open to innovative redevelopment ideas.
The city held a brainstorming session with the neighbourhood in April in an attempt to find some agreement on what area residents would be willing to see on the site. They generally supported the idea of a new residential building of no more than six storeys, and council approved that vision at a meeting this week.
RE: Electrohome Factory - Spokes - 11-23-2018
Renderings of what could happen with the site if redeveloped:
RE: Electrohome Factory - panamaniac - 11-23-2018
Given the remediation costs, the City should have taken the $200,000 and run. Will the sale be conditional on timely redevelopment, I wonder?
RE: Electrohome Factory - Spokes - 11-23-2018
I was surprised the bid was so much lower than the asking price. But then again I have no idea what the cleanup could cost other than a lot.
RE: Electrohome Factory - tomh009 - 11-23-2018
(11-23-2018, 11:14 AM)panamaniac Wrote: Given the remediation costs, the City should have taken the $200,000 and run. Will the sale be conditional on timely redevelopment, I wonder?
I don't believe they were allowed to accept a bid below the minimum. Unless I remember incorrectly ...
RE: Electrohome Factory - robdrimmie - 11-23-2018
I know Christie bears no legal obligation for the site, but I really wish they would contribute to the remediation in some fashion.
RE: Electrohome Factory - plam - 11-23-2018
(11-23-2018, 12:37 PM)robdrimmie Wrote: I know Christie bears no legal obligation for the site, but I really wish they would contribute to the remediation in some fashion.
Remind my why Christie has any attachment to the site?
RE: Electrohome Factory - Spokes - 11-23-2018
As in Christie Digital?
RE: Electrohome Factory - tomh009 - 11-23-2018
(11-23-2018, 01:33 PM)plam Wrote:(11-23-2018, 12:37 PM)robdrimmie Wrote: I know Christie bears no legal obligation for the site, but I really wish they would contribute to the remediation in some fashion.
Remind my why Christie has any attachment to the site?
Christie acquired Electrohome's projection business back in 1999. I don't think they ever operated at this site, though.
RE: Electrohome Factory - robdrimmie - 11-23-2018
(11-23-2018, 01:33 PM)plam Wrote:(11-23-2018, 12:37 PM)robdrimmie Wrote: I know Christie bears no legal obligation for the site, but I really wish they would contribute to the remediation in some fashion.
Remind my why Christie has any attachment to the site?
They acquired Electrohome's digital projector business in the late 90s. It's a very loose connection.
RE: Electrohome Factory - KevinL - 11-23-2018
They're not a legal successor to Electrohome in any way, though. Entirely different entity in this respect.
RE: Electrohome Factory - timc - 11-23-2018
(11-23-2018, 11:14 AM)panamaniac Wrote: Given the remediation costs, the City should have taken the $200,000 and run. Will the sale be conditional on timely redevelopment, I wonder?
I don't think the City was legally allowed to sell the property for less than the tax owing. They have now written off interest on the taxes, so the new selling price is the principal amount.
RE: Electrohome Factory - ijmorlan - 11-23-2018
(11-23-2018, 02:11 PM)timc Wrote:(11-23-2018, 11:14 AM)panamaniac Wrote: Given the remediation costs, the City should have taken the $200,000 and run. Will the sale be conditional on timely redevelopment, I wonder?
I don't think the City was legally allowed to sell the property for less than the tax owing. They have now written off interest on the taxes, so the new selling price is the principal amount.
Which makes no sense at all. A property cannot be sold for more than its worth to a bidder. So conceivably you could end up with an unsellable property, and indeed we might have such already.
I wonder what would happen if one were to expropriate a property with outstanding taxes. Could that work? Presumably the settlement would be set off against the taxes, so no actual payment would go to the former owner. Not a real estate lawyer, no idea how it actually works, just musing.
RE: Electrohome Factory - tomh009 - 11-23-2018
(11-23-2018, 02:15 PM)ijmorlan Wrote:(11-23-2018, 02:11 PM)timc Wrote: I don't think the City was legally allowed to sell the property for less than the tax owing. They have now written off interest on the taxes, so the new selling price is the principal amount.
Which makes no sense at all. A property cannot be sold for more than its worth to a bidder. So conceivably you could end up with an unsellable property, and indeed we might have such already.
Quite right. But it's how the rules work, and the city did not have a choice in the matter.