Sunday, October 20, 2024
Monday, August 12, 2024
Toronto: Real estate insolvencies in Canada set to surpass levels of global financial crisis
Residential
property developers are facing rising insolvencies as they struggle
with higher borrowing and construction costs – and industry experts warn
the trend is likely to worsen as interest expenses remain elevated.
The
number of insolvent real estate companies and projects has been rapidly
climbing over the past year and is now on track to surpass levels of
the global financial crisis, according to data from the federal Office
of the Superintendent of Bankruptcy.
“This
has been a long time coming,” said Colin Doran, head of development
advisory for commercial real estate firm Altus Group, who has been
providing advice on distressed real estate projects for 15 years.
“There
are no doubt more real estate projects in distress but it’s hard to
tell how many can be worked out before ending up in an insolvency
position. We expect there will continue to be more unsophisticated
developers in trouble,” he said.
From
January to May this year, there was an average of 20 real estate,
rental or leasing insolvencies in Canada every month. Companies either
sought bankruptcy protection or filed creditor proposals to make it
easier for them to manage their debts under the Bankruptcy and
Insolvency Act.
At
this pace, Canada is on track to reach about 240 real estate
insolvencies this year, which would be 57-per-cent higher than 2023 and
13-per-cent higher than 2009, when a wide swath of businesses ran into
problems owing to the financial crisis and global recession.
And
that does not include the number of developers and projects that have
been forced into receivership for not paying bills. The Office of the
Superintendent of Bankruptcy does not include receiverships with its
publicly available bankruptcy statistics. However, insolvency experts
say they are seeing more projects go into receivership.
So
far this year, the real estate sector accounts for 55 per cent of the
receiverships recorded by Insolvency Insider Canada, a website that
tracks the largest insolvencies in the country. That compares to 30 per cent last year and 33 per cent in 2022.
Sam
Mizrahi’s luxury downtown Toronto condo tower The One has been one of
the highest profile projects to default on its loans, with lenders owed
$1.6-billion. And dozens of other developers have faced similar pressure
from their lenders or have filed for bankruptcy protection.
“For
the first time in a really long time in Canada, we are seeing some
stress in the system,” said Syl Apps, who co-heads the Canadian
operations of Hines Interests LP, a Houston-headquartered real estate
firm that owns and manages about 850 properties in 30 countries.
So
far, that stress is being felt amongst the relatively smaller
developers or those that do not have the financial strength to weather
interest costs that have soared since 2022.
Take
Maplequest Ventures, a small developer that had plans to build housing
on two parcels of land in Brampton, Ont. Maplequest took out a
$24-million loan from KingSett Mortgage Corp. in 2017 to develop one of
its Brampton sites into 147 townhouse units, 288 mid-rise apartment
units and 1,599 high-rise apartment units, according to court filings.
The
loan soon had an interest rate that was tied to a major bank’s prime
lending rate, which moves in tandem with the central bank’s benchmark
rate. By 2021, the KingSett loan had an interest rate that was the
bank’s prime lending rate plus 5.8 per cent.
The
loan eventually became much more expensive as the Bank of Canada raised
interest rates from 0.25 per cent to 5 per cent over 2022 and 2023.
During that time, the prime lending rate jumped from 2.45 per cent to
7.2 per cent.
This
year, Maplequest defaulted on its loan to KingSett Mortgage Corp., as
well as another loan with First Source Mortgage Corp., court filings
show. The lenders lost confidence in the developer, triggering them to
apply for a court-appointed receiver to oversee the project.
The court filings did not explain the reasons for Maplequest’s default. The
developer’s CEO and its lawyer did not respond to a request for
comment. KingSett did not immediately respond to a request for comment.
Some
of the current problems in residential development can be traced back
to 2017 when home prices were rising quickly in Toronto and demand
exploded for new condos.
That
year, there were nearly 31,000 preconstruction condo sales in the
Toronto region, according to industry research firm Urbanation Inc. That
was a record level and led to a surge in demand for construction
workers and building materials – which started driving prices up.
The
cost of construction rose 10 per cent from 2017 to 2018 in the Toronto
region and 8 per cent across the country’s major cities, according to Statistics Canada’s residential building construction price index.
Developers
quickly expanded, including less experienced builders who were able to
sell out preconstruction projects as waves of mom-and-pop investors
flooded the market.
At
that point, investors were able to easily make a profit on the condo’s
price appreciation and the majority of them could cover their mortgage
costs by renting their units out.
But
the torrid pace of launches and sales helped mask problems that
developers were starting to face. By 2021, low interest rates were
fuelling the pandemic real estate boom and preconstruction sales soared
to near record highs of 30,550 units in the Toronto region. By then, the
cost of building was 34-per-cent more expensive across the major cities
compared to 2017, according to Statscan data.
Then
the pandemic slowed down development. Construction was hindered because
workers had to socially distance on site. Developers delayed the start
of construction – and they also delayed project launches.
This
all added to the costs. Developers had to carry their mortgages for
longer. Building materials were in short supply. And when the Bank of
Canada raised interest rates, developers had to pay much more for their
loans. Now that mortgages are more expensive, some preconstruction condo
buyers are not able to qualify for the loan needed to close on their
purchase, which is contributing to the malaise in the sector.
Today,
the cost of residential construction is 81-per-cent higher across
Canada’s major cities compared to 2017 and more than double – up 107 per
cent – in the Toronto region, according to Statscan data.
The higher borrowing costs are pushing a growing number of developers over the edge and lenders are no longer patient.
“A
lot of lenders did that to the best of their ability. They entered into
forbearance agreements, accepted some missed payments and basically
worked with the borrowers,” said Jeffrey Berger, managing director with
restructuring and insolvency firm TDB Restructuring Ltd., whose company
is working on between 10 to 15 insolvent real estate projects.
“Two
or three years passed, and then it became clear that this was the new
normal and things were changing and these loans had to be dealt with in
some manner,” he said.
That
is what occurred with two plots of land on King David Inc.’s luxury
condo development site in Markham, Ont. Part of the project is under
construction, according to court documents. King David planned to
continue developing on the other two plots and in December, 2021, it
borrowed $54-million from First Source Financial Management Inc. The
loan had an interest rate of the greater of 8.85 per cent or prime plus
6.4 per cent.
At
the time, prime was 2.45 per cent. But by the time the loan was due in
April, 2023, prime was 6.7 per cent. King David did not repay First
Source by the deadline, according to court documents.
The
lender cut King David some slack and agreed to a forbearance agreement,
which gave the developer more time to repay the loan. The new deadline
was July 8, 2023, the court documents said.
When
the company failed to repay the loan by the new deadline, First Source
provided a second forbearance agreement that extended the loan repayment
deadline to Oct. 8, 2023. Then, when First Source learned that King
David would not meet that deadline either, it provided a third
forbearance agreement with a deadline of Dec. 8, 2023, that required the
borrower to make a monthly interest payment in November.
King
David failed to make that interest payment, according to court
documents, and First Source decided to take action. In early December,
it asked the Ontario Superior Court to appoint a receiver to take over
the undeveloped land.
“The
lender is concerned by the borrower’s failure to advance the project.
The property remains vacant,” First Source chief executive David Mandel
said in an affidavit filed with the court. “Despite having been granted
forbearance since April, 2023, the borrower has been unable to refinance
the loan or bring the loan back into good standing.”
A
lawyer for King David said the company is not insolvent or in
receivership and that only this specific block of land, known as phase 2
and 3 lands, is in receivership. Asked what led King David to default
on payments, the developer’s lawyer, Avi Bourassa, a partner with Ross
Nasseri LLP, declined to comment.
First Source did not respond to a request for comment.
The Bank of Canada
started cutting its benchmark interest rate this summer, but borrowing
remains expensive and there is little demand for preconstruction condos.
Developers
used to be able to pass on their higher costs to buyers but prices have
jumped so much that buyers will not buy the new condo units.
For
those who have already bought investment properties, the purchase price
is now at a point that an overwhelming share of new condo owners are
burning cash because the rent they can charge is not enough to cover
their mortgage payments and other expenses. For example, in the Toronto
region, the asking price of a preconstruction condo has nearly doubled
from 2017 through this year to around $1,345 per square foot, according
to data from Altus. That puts the price of a 550-square foot condo at
$740,000.
“There
is less room for error. In the past, a developer could be good at sales
and make their way to completion. Now they have to be good at all
aspects, including planning and execution,” said Altus’ Mr. Doran.
“If
developers were already struggling with lower margins impacted by
planning delays, construction delays, cost escalation, then the impact
of the rising interest rates were a double whammy to their proforma and
project profitability,” he said.
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Tuesday, April 23, 2024
$22 Million Dollar Toronto Airport Gold Heist
It took precisely one year, but I can finally tell you exactly how they did the baffling $22-million Toronto airport gold heist, who is accused of pulling it off, what happened to the loot, and the three stupid mistakes that ruined a flawless score. Let me tell you about it.
The Mob Reporter here with new details and exclusive revelations on the biggest ever gold heist in Canada, a job that ranks sixth on the list of all-time biggest gold robberies, and was a daring, big-ticket score of a lifetime that seemed destined to be another unsolved mystery.
And it might well have been, if it weren’t for two — no, three — seemingly small but significant slips that doomed it all, leading to a wave of arrests in Canada for the stolen gold case and more in the United States for a related plot — international gun-running.
I’ve got both ends covered.
Let’s break how they did the gold job, the accused, the investigation, and the simple mistakes the bandits made that led police to arrests for the gold heist and for gun running in Canada and in the United States.
The five arrested in Canada are: Parmpal Sidhu, 54, of Brampton, an Air Canada employee. He is charged with theft over $5,000 and conspiracy to commit an indictable offence; Amit Jalota, 40, from Oakville, charged with possession of property obtained by crime, theft over $5,000, and conspiracy to commit an indictable offence; Ammad Chaudhary, 43, from Georgetown, charged with accessory after the fact; Ali Raza, a 37-year-old jewelry store owner from Toronto, charged with possession of property obtained by crime; and Prasath Paramalingam, 35, from Brampton, charged with accessory after the fact.
The alleged driver, Durante King-Mclean, 25, from Brampton, is wanted in Canada but in custody of the United States.
Police are also searching for three more men, considered fugitives:
– Simran Preet Panesar, 31, from Brampton, who was an Air Canada employee at the time of the theft but resigned after the heist. He is wanted for theft over $5,000 and conspiracy to commit an indictable offence;
– Archit Grover, 36, from Brampton, who is considered a fugitive in Canada and the United States. In Canada he is wanted for theft over $5,000 and conspiracy to commit an indictable offence. In the U.S. he is accused of helping King-Mclean after his roadside arrest and hindering the investigation.
– Arsalan Chaudhary, 42, from Mississauga, wanted for theft over $5,000, possession of property obtained by crime and conspiracy to commit and indictable offence.
Two people were arrested and charged in the United States: The alleged driver, Durante King-Mclean, and Jalisa Edwards, 25, from Ft. Lauderdale, Florida. Paramalingam and Grover are wanted in the United States in the gun case.
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Sunday, April 21, 2024
Friday, April 19, 2024
Monday, April 15, 2024
Is this Canada or India? Exploring Brampton, Ontario
On the latest episode of Ratio'd, Harrison Faulkner goes to Brampton, Ontario to see Canada's mass immigration crisis first hand. Brampton is one of Canada's most infamous ethnic enclaves and has become a symbol of the federal government's years-long commitment to mass immigration. 2021 census data showed that Brampton was over 80% non-white and that the majority of Brampton residents are of Indian origin. Tune into the latest episode of Ratio'd, to see the side of Brampton that you never hear about it in the legacy media.
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Saturday, April 13, 2024
Toronto Police raid tents in downtown encampment seizing drugs and gun
Two men were arrested in a drug bust when cops raided tents in a downtown homeless encampment Friday evening.
Toronto Police say officers executed a search warrant on “a number of tents” in Clarence Square Park at Spadina Ave. and Front St. W. just before 8:30 p.m.
“Two people were located and arrested,” Const. Laura Brabant said in a statement released Saturday.
She said “a quantity of drugs” – including cocaine, meth and fentanyl – and “a metal replica firearm” were located inside of one of the tents police searched.
Pablo Jose Bermudez Garcia, 57, of Toronto, is charged with four counts of drug possession for the purpose of trafficking, two counts of possession of proceeds obtained by crime under $5,000, and one count each of possession of a weapon for a dangerous purpose and possession of a prohibited weapon.
Garcia was previously accused of a violent 2014 armed robbery of a convenience store where the female clerk was badly beaten after attempts to subdue to her with a noxious substance failed.
It’s unclear what happened with those charges.
The second accused, Gregoriou Fera, 33, of Toronto, is charged with one count of assault and two counts of possession of drugs for purpose of trafficking.
Clarence Square Park, which has doubled as a drug injection and ingestion site, had a large shipping container installed just last week that will serve as an Information and Help Centre according to the city.
Anyone with information regarding this investigation is asked to call police at 416-808-5200 or Crime Stoppers anonymously at 1-800-222-TIPS (8477).
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Friday, April 12, 2024
Toronto cop stabbed suspect was shot by police out front of a Tim Hortons near College St. and Lansdowne Ave.
A Toronto cop was badly injured in a stabbing out front of a downtown Tim Hortons on Friday afternoon – and the chaotic aftermath was captured on video that was posted on social media.
Toronto Police say the wounded officer and the suspected stabber, who was shot in the melee at College St. and Lansdowne Ave., were both rushed to hospital via an emergency run shortly after 1:30 p.m.
Sources told the Toronto Sun the injured officer – a rookie who has only been on the job a few months at 14 Division – was stabbed in the leg.
The cop, identified as Const. Manraj Mahal, was initially in and out of consciousness but the Toronto Police Association released a statement saying the officer’s injuries were not life-threatening.
Sources say the officer responded to a call at a home for a suicidal person. When that person was not at the home, the officer went to a nearby Tim Hortons and located the man.
In the process of trying to make an arrest under the Mental Health Act, the officer was stabbed – allegedly by the person he was trying to arrest.
Ontario’s Special Investigations Unit is investigating the police-involved shooting and confirmed two officers were responding to a call for a “person in crisis” when they approached the man outside of the Tim Hortons.
“There was some type of struggle with two officers that were own scene,” SIU spokesperson Kristy Denette said at the scene. “And during the struggle a man produced a knife and stabbed an officer.”
She said it’s believed the injured officer then opened fire after two attempted by a second cop to deploy a conducted energy weapon were “ineffective.”
It was not immediately known how many rounds were fired.
The suspect, whose name has not been released, reportedly had no vital signs when he was rushed to hospital, but his condition was later upgraded to stable.
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Video of the aftermath posted on Instagram by @toronteffect showed both the suspect and the cop lying down on the pavement, which was soaked with blood, in front of the coffee shop while other officers came to their aid.
The suspect can be heard saying, “I have been shot,” as an officer handcuffs him.
A bloody knife can also be seen on the ground nearby.
Toronto Mayor Olivia Chow wished the injured officer “a quick recovery” in a brief message posted on X.
“Violence is never acceptable,” she wrote.
In 2022, another Toronto Police officer – Const. Andrew Hong, 48 – was shot to death at a Tim Hortons in Mississauga by Sean Petrie, a 40-year-old man who was later killed by police during a shootout in a Hamilton cemetery.
And Friday afternoon’s stabbing of a cop follows two other attacks on Toronto Police officers earlier this week.
One officer was taken to hospital with non-life-threatening injuries after being assaulted in the area of Duncan St.-Queen St. W. while walking to a downtown police station around 11 p.m. on Monday night.
A witness intervened and Fabian Quiones Penaloza, 31, of no fixed address, was arrested on Tuesday and charged with assaulting a peace officer.
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And also on Monday night, a group of males was allegedly attempting to steal a vehicle near Yonge St. and Finch Ave. W. and responding officers located suspects nearby.
Cops said one suspect was arrested at the scene and one was arrested after a brief foot chase while the others fled the area.
During the arrests, police said an officer suffered a serious non-life-threatening injury.
Police said Oluwafemi Oladekoye, 19, of Woodbridge, was charged on Tuesday with attempted theft exceeding $5,000, have face masked/disguised, and aggravated assault of a peace officer.
Haydon Courtney, 19, of Toronto, was charged with attempt theft exceeding $5,000, and have face masked/disguised.
Toronto Police Association President Jon Reid admitted he was “angry and frustrated” as he spoke to reporters outside of St. Michael’s Hospital where Const. Mahal was being treated Friday afternoon.
“I’ve had enough with what’s going on in this city,” Reid said. “This is the third officer we’ve had injured now in three days.”
“We need the public and we need the leaders to come out and support the work that our men and woman are doing today. The violence has to stop. We need our justice system to pay attention. Things have to change here,” he added.
Reid said the stabbed officer, who is in his early 20s, is “well-liked by his colleagues.”
“I can tell just by speaking to the officer. He’s very passionate about this job,” he said. “And all things considered he’s in very good spirits.”
Deputy Chief Lauren Pogue, who spoke at the scene where her fellow officer was stabbed, said there have actually been four Toronto cops injured in incidents over the last two weeks.
She said such violence “really underscores the inherent risks our officers confront daily while serving the community.”
“I want to take a moment to acknowledge the bravery and dedication of our officers who put themselves in harm’s way to keep others in the community safe,” Pogue said. “Their commitment to duty and the public safety is commendable.”
Chief Myron Demkiw posted a message Friday on X saying he was “relieved to report that the (stabbed) officer is in stable condition.”
Meanwhile, the trial of Umar Zameer, accused of first-degree murder in the July 2, 2021, killing of Toronto Police Det.-Const. Jeffrey Northup in a parking garage at City Hall, continued this week.
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Razaali Awan Bahadur 45, of Toronto was arrested and charged with public incitement of hatred at Toronto protest
A 45-year-old Toronto man has been charged with public incitement of hatred and fail to comply with his probation order.
Police said the accused was attending a demonstration marking the six-month anniversary of the Hamas attack on Israel at Nathan Phillips Square on April 7 when he allegedly made anti-Semitic statements towards children and demonstrators.
On Thursday, Razaali Awan Bahadur was arrested and charged.
Anyone with information is asked to contact police at 416-808-3500, Crime Stoppers anonymously at 416-222-TIPS (8477), or at 222tips.com.
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Afonso Corpuz, 67, faces second-degree murder rap stabbing death of Jolly An near Bathurst and Wilson, Toronto
A 67-year-old Toronto man sought in the stabbing death of another man last weekend has been arrested.
On April 6 at around 6:20 a.m., Toronto Police were called to the Bathurst St. and Wilson Ave. area where two men had been in an “altercation” in front of a commercial plaza.
Cops said one of the men was stabbed with a “sharp-edged weapon” and, despite life-saving measures, the man died at the scene.
He was identified as Jolly An, 51, of Toronto.
On Tuesday, police said they were searching for suspect Alfonso Corpuz, describing him as “armed and dangerous,” and released his image.
Corpuz was arrested on Thursday, police announced Friday, and charged with second-degree murder. He was to appear in bail court on Friday.
Anyone with information is asked to contact police at 416-808-7400 or Crime Stoppers.
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Black male 16, wounded in late-night North York shooting
A 16-year-old boy is expected to survive after being shot in North York just before 11 p.m. on Thursday.
Toronto Police were called to the Sheppard Ave. W. and Jane St. area and found the victim with a gunshot wound.
The teen was taken to hospital in non-life-threatening condition.
Four male suspects are being sought and are described as Black, 5-foot-10, 145-165 pounds, with one wearing shorts, and another male wearing a white vest.
Anyone with information is being asked to call police at 416-808-2222 or Crime Stoppers.
https://toronto.ctvnews.ca/police-investigating-after-16-year-old-boy-shot-in-north-york-1.6844390
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Thursday, April 11, 2024
Wednesday, April 10, 2024
Two black men wanted for machete attack near Jane and Sheppard in North York
Two unidentified black men are sought for an assault last month in North York that involved a machete.
Toronto Police say the attack occurred near Jane St. and Sheppard Ave. W. around 12:30 a.m. on March 7.
“It is reported that two men were involved in an altercation with the victim,” Const. Sinderela Chung said Wednesday. “One of the men used a machete to assault the victim.”
She said the victim suffered injuries that were not considered life-threatening.
Investigators have released images of two suspects hoping the public can help identify them.
One man is described as 30 to 50 years old, about 5-foot-6, with dark-brown hair in a ponytail. He was wearing blue sweatpants and a hooded sweater with black and red running shoes.
The second man is described as about 5-foot-1 with tattoos on both arms and short black hair. He was wearing a red sweatshirt with grey pants and white running shoes.
Anyone with information regarding either suspect’s identity or whereabouts can call police at 416-808-4300 or Crime Stoppers anonymously at 1-800-222-TIPS (8477).
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Saturday, April 6, 2024
Kevonte Murry 19, and Jahziah Griffiths 19, accused of robbing victim of phone in Scarborough
Two 19-year-old men are facing multiple charges following a cellphone robbery in Scarborough, including alleged assaults while resisting arrest.
Toronto Police say, on Friday at approximately 6:30 p.m., the victim met with a potential buyer of a cellphone that was listed for sale on Facebook Marketplace.
Police allege that they agreed to meet in the Midland Ave. and Danforth Rd. area.
Two men arrived in a gray, 2017 Honda Civic, cops say. One of the men exited the vehicle, approached the victim and asked to see the phone.
According to police, the man took the phone and returned to the vehicle. The victim confronted the man in an attempt to get the phone back, but the man pointed a handgun at the victim.
Both men fled the area in the vehicle with the victim’s cellphone, cops say.
Kevonte Murry, 19, of Toronto, has been charged with robbery with an offensive weapon, several firearm offences, disguise with intent, possession of property obtained by crime under $5,000, possession of property obtained by crime over $5,000, assault with intent to resist arrest, assault with a weapon, unlawfully possess automobile master key, and failing to comply with a release order.
Jahziah Griffiths, 19, of Brampton, has been charged with robbery with an offensive weapon, disguise with intent, possession of property obtained by crime under $5,000, possession of property obtained by crime over $5,000, unlawfully possess automobile master key, assault with intent to resist arrest, drug possession for the purpose of trafficking, drug possession, and possessing proceeds obtained by crime under $5,000.
Investigators believe there may be more victims.
Anyone with information is asked to contact police at 416-808-4100, Crime Stoppers anonymously at 416-222-TIPS (8477), or online at 222tips.com.
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Durville Williams, 43 accused of assault at TTC subway station and theft
A Toronto man is accused of an assault at a TTC subway station and a theft in separate incidents.
Toronto Police say on March 29, the man approached another man at Kipling subway station.
Police allege the man assaulted the victim and then fled the area. The victim was taken to hospital with non-life threatening injuries.
On Saturday, police say officers responded to a call just before 2 p.m. for a theft in the St Clair Ave. W. and Runnymede Rd. area.
Cops allege a man entered a store and selected and concealed property. He made no attempt to pay.
Durville Williams, 43, was arrested and charged with assault, theft under $5,000, and failing to comply with a probation order.
Anyone with information is asked to contact police at 416-808-2200, Crime Stoppers anonymously at 416-222-TIPS (8477), or online at 222tips.com.
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Andre Bollers, 36, and Amanda Rutherford, 33, both of Toronto, and Manal Kakish, 20, of no fixed address, were charged with seven firearm offences, drug possession
A man and two women are facing gun and drug charges following a search of a residence near Moss Park.
Toronto Police say, on Friday at approximately 8:35 p.m., investigators executed a search warrant at a residential unit in the Sherbourne St. and Dundas St. E. area.
Police allege that a firearm along with two over-capacity magazines and a quantity of drugs were located inside the unit. Three people were arrested.
Andre Bollers, 36, and Amanda Rutherford, 33, both of Toronto, and Manal Kakish, 20, of no fixed address, were charged with seven firearm offences, drug possession for the purpose of trafficking, and possession of proceeds of crime under $5,000.
Bollers is also facing nine counts of possession of a firearm or ammunition contrary to a prohibition order.
Anyone with information is asked to contact police at 416-808-5100, Crime Stoppers anonymously at 416-222-TIPS (8477), or online at 222tips.com.
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Homicide investigating 'violent' death of man Jolly An 51, in North York
Homicide investigators were called in after a man was killed in a “violent” incident on a North York street Saturday morning.
Toronto Police say officers responded to the area of Bathurst St. and Wilson Ave. shortly after 6 a.m. and found a gravely injured man on a roadway.
“This was a violent altercation,” Homicide Det.-Sgt. Brandon Price told reporters at the scene on Saturday, explaining it’s believed two males were involved in the encounter.
He said life-saving measures were performed but the victim was pronounced dead at the scene.
Price said it appears the victim suffered “sharp force injuries.”
“We are in the early stages of this investigation,” he said. “This appears to be an altercation that erupts – it’s unknown if it is targeted, but it does seem to be isolated.”
Police later identified the victim as Jolly An, 51, of Toronto.
Investigators are gathering and reviewing video from nearby security cameras, he said, urging any witnesses who were in the area to come forward.
Anyone with information regarding the city’s 19th murder of the year can call the Homicide unit at 416-808-7400 or Crime Stoppers anonymously at 1-800-222-TIPS (8377).
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Friday, April 5, 2024
Harun Ahmed Hussein and 2 others are wanted by Toronto Police for Scarborough jewellery store heist
Two men face charges and a third is sought for a jewelry store heist in Scarborough last month.
Toronto Police say, on March 8 at approximately 1 p.m., officers responded to a robbery call in the Sheppard Ave. E. and Neilson Rd. area.
Police allege that a group of four male suspects entered a mall wearing masks to disguise their identity, with one suspect carrying a large sledgehammer.
Cops say the suspects approached a jewelry store and forced open the door. One suspect entered the store and removed a quantity of jewelry. The suspects then fled the mall.
Following an investigation, police were able to identify three suspects.
On Thursday, five search warrants were used by police to locate two suspects, and they were taken into custody.
Cops also allege that, during the search, officers recovered a loaded handgun and other potential evidence related to the investigation.
Daniel Offe, 22, of Toronto, was charged with robbery with offensive weapon, disguise with intent, possession of property obtained by crime over, and multiple firearms offences.
Abdulahi Ali, 21, of Toronto, is accused of robbery with offensive weapon, disguise with intent, possession property obtained by crime over, and failing to comply with a release order.
Investigators say Harun Ahmed Hussein, 19, of Toronto, is wanted for robbery with offensive weapon, disguise with intent, and possession of property obtained by crime over.
Police released an image of Hussein. He is described as 5-foot-6 with a thin build.
Anyone with information is asked to contact police at 416-808-7350, Crime Stoppers anonymously at 416-222-TIPS (8477), or online at 222tips.com.
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Rise in crime prompts North York neighbourhood to hire private security
Vehicle thefts and attempted home invasions are so bad, and police response times so slow, that a group of 100 homeowners in North York hired a private security firm to patrol their neighbourhood seven days a week.
“We can’t rely on police to attend car thefts or home invasions in a timely manner,” Rommy Metyas, one of the driving forces behind the neighbourhood initiative, said in a statement.
“While stolen cars are one thing, the attempts to invade homes while families are sleeping have put us in a perpetual state of fear.”
Stephanie Smyth, a spokesperson for the neighbourhood group, said she hopes police and the city recognize the gravity of the situation and will take swift and significant action.
Smyth is calling for increased police patrols in areas vulnerable to vehicle theft, tougher bail conditions for those involved in organized auto theft rings, stiffer sentences for those convicted of auto theft and more aggressive border patrols.
“Residents shouldn’t have to subsidize policing in a city the size of Toronto,” Smyth said in a statement.
At a North Toronto church meeting on Thursday night with over 50 concerned residents, senior police officials from 32 Division cited low risk and high reward as they explained auto thefts committed by organized crime groups have increased by 62% in recent years.
Supt. Donald Belanger told the crowd that “the more eyes the better” on criminal activity, especially in their area, which he called the “epicentre” of car thefts in the GTA.
Belanger agreed with one resident who said there is not much that can be done until the ‘head of the snake’ of organized crime is cut off.
He also said recent successful efforts to fight auto theft starts with tougher legislation and stricter border inspections.
Event co-organizer Karen Stintz, a former city councillor for the area and now a Conservative nominee for MP of Eglinton-Lawrence in the next federal election, said “crime wasn’t like this five or 10 years ago” and she understands “residents are trying to take back control.”
She added: “I don’t feel police are supported enough” and “residents are picking up security costs and is that reasonable or sustainable?”
Belanger said police “are throwing everything we have at this issue, including plainclothes police officers and uniform officers patrolling the streets of 32 division at all hours.”
But he added: “The police service is not built with surge capacities.”
Stintz said while grateful to police for meeting with the community, “it became clear during the discussion that all levels of government can do more to protect communities.”
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Thursday, April 4, 2024
Anger over bills for Toronto vacant-home tax as city scrambles to fix flawed system
Homeowners’ frustration and anger at Toronto’s flawed vacant-home tax system boiled over into city offices Thursday as people lined up, massive bills in hand, desperate to get them cancelled.
In mid-afternoon at city hall, about 20 people, many seniors, expressed shock, fear and confusion, saying they never saw a white piece of paper in their property tax bill demanding they declare every year that their homes are occupied to avoid big charges for keeping a vacant home.
“It’s nuts,” said a man clutching a city demand for more than $9,000, waiting to speak to people at a special inquiry desk set up by city staffers who were urging people to not pay if their home was occupied, despite the tax bill demanding an initial payment by May 15.
City councillors reported similar scenes of angst at civic centres in former suburbs across Toronto. Coun. Paula Fletcher (Toronto-Danforth) said she got reports of people in tears at the East York hub, adding: “When you get a bill from the city for $3,000, $4,000, $10,000, that makes you quake in your boots. Something’s wrong and not being able to fix it quickly is so unsettling, especially for seniors.”
Fletcher also said city communication materials emphasizing homeowners declare their occupancy via the vacant home tax web portal, with less emphasis on the mail-in option, “shows that, once again, we’ve forgotten all those people in this city who don’t have computer access or simply don’t know how to use it.”
Those who queued at city offices got guidance but not instant relief. One of many quirks in the system is that people who missed the May 15 deadline to declare occupancy for 2023 can do so now — in a complaint to get the bill cancelled — but only through the online portal or by mail, not by simply telling the city staff who greeted the residents. The city says complaints registered by some of the 125,000 homeowners who received bills after failing to declare occupancy will trigger notices — now being expedited — telling people they are off the hook.
The city imposed the tax in 2022 to discourage property speculators from keeping homes empty during Toronto’s tight housing market. Council voted in October to triple the rate in 2024 to 3 per cent of a home’s assessed value. Residents were first told to declare occupancy last year, via a yellow piece of paper in their property tax bill.
This spring it became apparent that many residents did not realize they needed to register again this year. Others declared their homes were occupied before the city deadline but told the Star they still received a hefty tax bill.
Mayor Olivia Chow, speaking after a housing announcement, apologized to residents, appealed for calm and said nobody who occupied their home for more than half of last year will have to pay the vacant home tax.
“We’re cleaning up this mess, I apologize,” Chow told reporters. “By the time I arrived, the system was already set. I’m seeing the impact of it. It is not acceptable the way we rolled out this system … (it) wasn’t meant to harass regular homeowners,” she said.
Chow said she is working with city staff to fix the immediate problems and ensure the system is fully revamped for next year.
Everyone who got a mailed tax bill is being charged a $21.24 late fee. There is no option in the city portal to appeal that surcharge.
Steve Conforti, the city’s chief financial officer, told the Star that his staff are working on a way in which people who declared occupancy before the May 15 deadline, but still got tax bills, can get the late fee waived by attesting to the city that they made the declaration.
There are no plans at the moment, however, to waive late fees for homeowners who did not realize they needed to declare occupancy again. City staff said that would require a decision of city council, who last month directed staff to take steps including revamping the flawed system for 2025.
The deadline to appeal payment for the 2022 tax year is April 15. The deadline to appeal payment for the 2023 tax year is Dec. 31.
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Unidentified woman wanted in North York stabbing probe
An unidentified woman is sought as part of an investigation into a stabbing in North York.
Toronto Police say officers responded to a stabbing call in the area of Finch Ave. W. and Yonge St. around 8 a.m. on Monday.
Four perpetrators entered a building and went to the victim’s business, police said in a statement released Thursday. There was an interaction inside the business between the four perpetrators and the victim.
The perpetrators fled the area, at which point police said the victim gave chase and caught up with one of them.
Cops said the victim was then slashed with a sharp object in the upper arm.
Investigators have released an image of a s suspect who is described as a woman, 19 to 21 years old, 5-foot-5, with a slim build and black hair.
Anyone with information is asked to contact police at 416-808-3200, Crime Stoppers anonymously at 416-222-TIPS (8477), or at 222tips.com.
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Wednesday, April 3, 2024
Jeffrey Lovell, 42, is charged after unprovoked attack on stranger at TTC station
A 42-year-old man has been charged after an unprovoked attack on a TTC subway platform last month.
Toronto Police allege the assault occurred at the Islington Station, at Islington Ave. and Bloor St. W., shortly after noon on March 6.
While waiting for a train on the eastbound subway platform, a man “suddenly” punched an adult male in the face “without provocation,” Const. Laurie McCann said Wednesday.
She said the victim and assailant were not known to one another.
“The victim attended a local hospital with non-life-threatening injuries,” McCann said.
Investigators identified a suspect and released security camera images of the man.
On Wednesday night, police said Jeffrey Lovell, of Toronto, was arrested and charged with assault.
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Influx of asylum seekers surprises Canada and cities bear the cost
Canadian cities are being overwhelmed by a record surge of newcomers seeking asylum, straining their budgets and pushing temporary shelters beyond their limits.
In Peel, a suburban region in greater Toronto, the shelter system is running at 300% of capacity, with asylum-seekers occupying more than 70% of the beds and many more camping on the streets, according to Patrick Brown, the mayor of Brampton.
“It’s an ugly situation. If Canada’s going to allow more asylum claimants into our country, we need to make sure that they’re not left abandoned, and frankly, what we’ve seen is too much of that,” said Brown, whose city of almost 700,000 people is not far from Toronto Pearson, the country’s busiest airport.
Brampton’s stress is a microcosm of Canada’s struggle to cope with rapid increases in the number of immigrants seeking refuge. Shelter systems in Montreal, Ottawa and Vancouver are also over capacity — exacerbating a shortage of available places for the homeless population.
opening envelope
A rise in asylum claimants has become a major political issue across many countries, including the U.S., where cities such as New York and Chicago are grappling with how to manage the waves of migrants who’ve traveled across the southern border. Although Canada’s geography means it sees a fraction as many irregular border crossings as the U.S., there’s been an increase in the numbers arriving by air — particularly from Mexico.
The influx has prompted Prime Minister Justin Trudeau’s government to make policy shifts. Last year, Trudeau and U.S. President Joe Biden agreed to end a pact that had resulted in asylum-seekers crossing into Canada from the U.S. at a location known as Roxham Road. Then, in February, Trudeau’s government reimposed visa rules for many Mexican citizens.
And last month, Canada said it plans to reduce the size of its temporary resident population, a group that includes asylum claimants and foreigners on temporary work permits.
Mexico is by far the largest source country for those seeking asylum in Canada, followed by Haiti, Turkey, India and Colombia. In Brampton, about 80% came from five African countries, including Kenya and Nigeria, Brown said.
The numbers have risen because of the overlapping conflicts and crises in other nations, the resumption of international travel after the pandemic and Canada’s broadening of the legal basis for asylum claims.
Trudeau’s government — under pressure from Quebec Premier Francois Legault and Toronto Mayor Olivia Chow — offered about $360 million in January to provinces and cities to help deal with “extraordinary interim housing pressures” from asylum claimants. It says it’s transferred about $750 million to other levels of government since 2017 to help with asylum-related housing costs.
Still, Brown’s contention is that the national government hasn’t done enough. Last year, his region had a shortfall of more than $20 million to care for them and the mayor projects that to triple this year.
“If we’re going to be a country that offers safe harbour to those fleeing adversity, they can’t be left out in the frigid cold in that process,” Brown said.
Student Population
The rapid growth in asylum seekers in Canada is happening in tandem with record population gains, driven by foreign workers and international students. But frustration over housing shortages has forced Trudeau’s government to scale back on its immigration ambitions in recent months — among other things, it’s capping the number of foreign-study permits.
Brampton is also a focal point of colleges trying to cash in on the demand from those international students, many of whom see higher education as a pathway to settling in Canada. The number of international students in the country has tripled to around 1 million in less than a decade.
Many of the new arrivals faced soaring rents and lack of part-time jobs, and some, according to Brown, are “living in unfortunate conditions — sometimes in encampments, sometimes 25 students in a basement apartment.” Some asylum seekers in Brampton also live in a “large encampment outside the shelter system itself,” Brown said. Prior to the surge that started around mid-2023, asylum claimants took up just 2% of local shelter beds, he said.
“It’s put a significant cost barrier on cities. Cities have never funded this before,” Brown said. Under Ontario law, local governments can’t run budget deficits to pay for such unexpected costs. “So if you have people living on the sidewalk, that means you either have to take it from your public transit fund, your police fund, your paramedic fund, it’s just a negative cycle. We’re hoping it doesn’t get to that.”
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Durville Williams 42, of Toronto wanted in Kipling Station assault probe
Police are asking for the public’s help in locating a 42-year-old Toronto man identified as a suspect in an alleged assault last week at Kipling Station.
They responded to an assault call on Friday at about 9:50 a.m. in the Kipling Ave.-Dundas St. W. area of Etobicoke.
The victim was getting on a TTC bus, police said, when a man approached from behind and allegedly assaulted them. The victim fell to the ground and the man allegedly continued to assault them before fleeing from the scene.
There was no information on what kind of injuries the victim suffered.
Police said that Durville Williams, 42, of Toronto, is wanted for assault and failing to comply with a probation order. He is 6-foot and 220 pounds with a heavy build, short black afro and a black beard. He was wearing a black shirt, green jacket, dark pants, brown boots and a black tuque.
Anyone with information is asked to contact the police at 416-808-2200 or Crime Stoppers anonymously at 416-222-TIPS (8477) or 222tips.com.
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Tuesday, April 2, 2024
TTC streetcar shows many of Toronto’s problems in one tragic video
Toronto is struggling to deal with homelessness amid a housing crisis, drug addiction and the mental health struggles that come with that, and general affordability for anything from gas to groceries.
Shared widely on social media, a video — first posted on the account of Prosperity_Train — shows all of those things rolled into one troubling video.
A person on the TTC turned their camera on fellow passengers. Among the regular riders going about their day was one person sprawled across several seats sleeping, while another slept on the floor.
The person filming walked along the streetcar to where two security staffers stood by a woman who was hunched over, though it was unclear what she is doing.
“The level of homelessness is crazy,” the account captioned the video.
Another X user, Justice_Queen, reshared with the comment: “Housing crisis, mental health crisis and drug crisis all in one video.”
The footage is believed to be either the 509, which travels along the lakefront, based on the announcement of Rees St. being the next stop.
Most of the comments described the scene as “sad” while others couldn’t believe it was in Toronto.
“My God, what a horror show. And we thought this was just in American cities or Skid Row,” one person remarked.
Another wrote, “If Toronto can’t come up with better solutions for the inter-connected drug, mental health and homelessness crisis, people like me will avoid taking transit.”
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Monday, April 1, 2024
Toronto pre-construction condo buyers forced to off-load units for as much as $150,000 less than they paid
A growing number of pre-construction condo buyers in the GTA are struggling to close deals as appraisals fall short — leading to a sell-off that's seeing unit prices up to $150,000 lower than the original purchase price.
Industry insiders say the sell-off could put entire buildings at risk of seeing unit valuations drop, which would lead to a loss in equity for all buyers in new buildings and could eventually cause a delay of units coming to market.
"Very few assignment sales that I see are making any money," said Toronto-based realtor Grace Chan. "You see investors who bought up eight units and can't close on any of them and have to off-load them at a loss."
The rising number of below-contract value sales is not currently delaying projects, said Daniel Foch, a Toronto-based realtor and director of economic research with RARE Real Estate, but in a worst-case scenario the lower prices could result in significant delays for new units coming to market.
"My fear is if this happens at scale — so hundreds and hundreds of units — the builder then has these units just sitting in inventory," he said. "The builder doesn't want to sell the unit at a loss, because it's not fair to the existing unit holders. But they also need to close."
In a market downturn, buying pre-construction can cause severe financial distress. If someone purchased a condo unit in 2020 at $750,000 but now the valuation of the unit has dropped to $600,000, Chan said, the purchaser can have a distressed assignment sale.
In the GTA, a growing number of people are seeking to sell their properties through assignment sales — a legal transaction in which the original pre-construction buyer transfers the rights and obligations of the purchase agreement to another buyer — and have listed their asking price below their purchase price. In Mississauga, an assignment sale was offered at a $10,000 discount, another at King and Bathurst streets was offered at $20,000 below purchase price, one on Sheppard Avenue West was offered at $60,000 less, and a unit on Willowdale Avenue went for around $150,000 below purchase price.
"There are still buildings that are nice and desirable that do close," she said.
"The issue lies more so with the overinflated studio apartment," she said, as smaller downtown condos, while in a good location, are overvalued for their size.
A race to the bottom is forming, said Foch, where buyers are assigning below contract value, which results in the value of the building falling.
"When this happens it shakes the confidence of other buyers in the valuation of the project and creates a negative feedback loop," he said.
Buyers also don't have incentive to close, he said, because if their shortfall is $200,000, "they might as well walk away from the deposit if it's the same cost."
When a purchaser chooses to walk away from the transaction, the builder must resell the unit — if the builder chooses not to sue the purchaser. "As long as builders keep the 20 per cent deposit, they're usually OK to close it themselves or leave it in inventory. To do that, they need a bit more financing, which is annoying for them, but eventually they just sell it."
Depending on the builder, some allow for assignment sales while others don't, said Leah Zlatkin, LowestRates.ca expert and licensed mortgage broker, as they want to know the building is maintaining its value and to prevent any liabilities.
In the last few months, Zlatkin's brokerage has seen up to 15 properties appraised at a much lower price than anticipated. The discrepancy meant that clients had to make "extra-large" down payments or ask for financial help from family, and some weren't able to close.
In that case, the purchaser can lose the deposit and may also be responsible for paying the builder the amount lost on resale, she said. There is also the possibility that the builder proceeds with legal action against the purchaser.
Toronto-area buyers are walking away from deposits on new homes — some losing as much as $300,000
Developers are hitting the brakes. Pandemic buyers are panicked as appraisals come up short. Is this the end of Toronto’s condo mania?
Investors now own more than 50% of Toronto’s new condos — and experts say they’re driving up housing prices for everyone
"There can be very negative consequences," she said. "For some people being out $80,000 or $100,000 is a substantial sum."
While there has been an uptick in assignment sales, said Tim Syrianos, principal broker and owner of Re/Max Ultimate Realty, there "isn't a widespread problem."
"The percentage of units unable to close hasn't given me concern," he said. "They won't be coming to the market at a drastically discounted price."
Zlatkin feels this period is a "blip" in the radar, and once home valuations begin to increase — which is expected once the Bank of Canada begins cutting interest rates — the market will stabilize. Rate cuts, when they come, will offer some relief for buyers and builders who need to close on their units, she said.
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Saturday, March 30, 2024
Dimitri Smith, 32, of Toronto, was stabbed to death in North York on Friday, Dean Joel Constance, 46, of Toronto, is charged
A 46-year-old man is accused of stabbing a 32-year-old man to death in North York on Friday morning.
Toronto Police say officers responded to a call for a person with a knife outside of 3101 Weston Rd. – a highrise at Sheppard Ave. W. – just before 7 a.m.
“It is alleged that there was an altercation between two men out front of a residential building,” Cons. Laura Brabant said in a statement released Saturday. “One man was stabbed with a sharp edged weapon during the altercation.”
She said the gravely injured man was rushed to hospital where he was pronounced dead a short time later.
Toronto Police at the scene of a fatal stabbing at 3101 Weston Rd. in Toronto on Friday, March 29, 2024.
Man dead in 'targeted' incident, another in custody after stabbing: Toronto Police
The victim has now been identified as Dimitri Smith, 32, of Toronto.
Dimitri Smith, 32, of Toronto, was stabbed to death outside of a building in North York on Friday, March 29, 2024.
A suspect, also a Toronto resident, was arrested at the scene.
Dean Joel Constance, 46, of Toronto, is charged with first-degree murder.
Toronto Police at the scene of a fatal stabbing at 3101 Weston Rd. in Toronto on Friday, March 29, 2024.
Police have said investigators believe the two men knew each other.
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Dan Hakizimana, 19, left, and Fadel Naim, 19, are wanted for second-degree murder in Toronto
A 19-year-old and a 17-year-old from Montreal have been charged with second-degree murder in the slaying of 18-year-old Issaih Junger last month, while two suspects remain at large.
Toronto Police responded to the deadly shooting in the Landsdowne Ave.-Bloor St. W. area on Feb. 6 at 1:28 a.m.
The victim, from Mississauga, was found suffering from trauma. Life-saving measures were performed, and the young man was taken to hospital where he was pronounced dead.
Issaïh Jünger, 18, of Missisauga, was shot to death near Lansdowne Ave. and Bloor St. W. on Tuesday, Feb. 6, 2024.
Man, 18, gunned down in city's west end
Issaih Junger, 18, was remember by a friend’s dad as “very nice and kind, very typical young guy. No problem, no nothing.
On Friday afternoon, police said Hassan Farhat and the 17-year-old, who can’t be named per the Youth Criminal Justice Act, were arrested.
Meanwhile, Dan Hakizimana, 19, and Fadel Naim, 19, are wanted for second-degree murder.
Hakizimana is described as male, 5-foot-7 with a thin build, brown eyes and having braided black hair. Naim is described as male, 5-foot-7 with an average build, blue eyes and curly brown hair.
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