The city has dismissed speculation that it is buying a North York hotel to house refugees.
Toronto had looked into buying the 199-room Toronto Plaza Hotel, at Hwys. 400 and 401, to determine if that was a cheaper way to shelter refugees than building something new.
The city decided against spending millions on the purchase because the hotel and its seven acres of land is on a flood plain with limited development potential.
“Earlier this year, the city’s real estate division conducted due diligence to determine if there was a business case to purchase the land,” said a city release.
“As it was a large site, it would have been for broader city needs, not solely shelter, support and housing. It has now been determined that this wouldn’t be possible and the purchase is not being pursued.”
Virk Hospitality, which owns the hotel, declined comment.
The Toronto Plaza is currently used to house refugees and homeless families at the city’s expense. The CBC reported that the hotel has a market value of $35 million and the city has spent more that $4 million to shelter people at the location.
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