1st loan bylaw 

Khan and the board started working on getting the money to pay for the garage repairs.

The financing
On 11 May 2007, the board held a meeting where a resolution was passed to present to the owners a loan from Maxium Condo Finance Group for $1.5 million at 7.85% interest for a ten-year term and amortized over
ten years.

The board also passed a resolution awarding a $1.7 million contract to repair the garage to Structural Contracting.

The loan doubled
Somehow during the next month—there are no records stating how or why—the amount of structural repairs doubled when the board agreed to conduct renovations on the balconies at the same time as repairing the parking garage.

On 15 June 2007, the board passed a resolution granting the contract to the lowest bidder, Canali Engineering Group Ltd., for $1,207,110 plus contingency costs of $181,066.50.

Bylaw #13
An owners meeting, chaired by Maria Dimakas, a lawyer with Fine and Deo, was held on 30 June 2007 to pass Bylaw #13 allowing the corporation to assume a loan.

The board and Channel proposed a $3,000,000 loan from Morrison Financial Services at a rate of 7.85% for a five-year term and ten-year amortization period.

The owners understood that the garage work had to be done and that they could not afford to pay the required monies by special assessment so they accepted the need for a loan.

The owners were told by Manzoor Khan that:
$1.7 million will be spent on the garage.
$1.3 Million will be spent on the balconies, window caulking and leaks.

He stated that the property will look better and the property values will go up. One general contractor was selected for the garage and another one for the building.

The vote for the bylaw was held with:
   167 in favour
   004 against
   020 spoiled ballots (incorrectly filled out)

Bylaw #13 was adopted by the owners.

On 01 August 2007, Manzoor Khan sent the owners a letter along with the 2008 fiscal year's budget (starting 01 September) and their new fee schedule.

Energy resellers
In July 2007, the board passed a resolution to sign a contract for natural gas with Comsatec Inc. at a fixed price of 30.7 cents/m³. The board authorized Manzoor Khan to sign the contract on behalf of the corporation.

Water bill
By September 2007, the water bill stood at $220,000. The interest on the late payments was costing the condo $1,200 a month. The board decided to pay the current months' bills, pay the interest on the late payments and work down the principal owed.

A warning sign?
In early 2008, the board noticed that there were several invoices, from the previous few months, for plumbing work and other repairs that did not have purchase orders, work requisitions or a superintendent's sign-off.

Was this an indication of what was to come?

top  contents  chapter  previous  next