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7.18.2009

Yonge-Bloor development on the brink



The gleaming 80-storey condominium tower that was to lead the revitalization of the Yonge-Bloor intersection in Toronto is teetering on the edge of extinction.

On Monday, the Toronto lender that advanced a $46 million loan is going to ask a court to put the Kazakhstan-backed project into receivership and sell off the now-vacant land its international developer boasts is the "best address in the world."

The lender, a consortium of Toronto businessmen, alleges in court documents that Kazakh developer Bazis International has defaulted on its land loan and the Kazakh bank backing the tower portion of the project is involved in a "massive financial scandal involving fake loans, racketeering and money laundering activities."  Full Story at thestar.com 

I suspected something was up with this development, which is just a couple of blocks from where I live. The old buildings have been demolished and there is just a flat vacant lot on the corner now. We've been wondering why there was no digging at the site.

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