The city of Toronto has decided to sell a prime piece of land in the high-traffic area of Bloor Street West, just west of Avenue Road, for a bargain price and expects the property to be flipped quickly to allow a 100-metre condo tower on the site.
According to a Toronto Star report, McDonald's plans to resell the land to Kazakhstan-based developer Bazis International Inc., which is building an 80-storey condo building down the street at 1 Bloor and already owns the lot adjacent to McDonald's. As part of the deal, the chain would get a new restaurant in the building.
On March 5, city council voted 28-4 to accept the original offer of $3.38 million made by McDonald's for the building with a cheap 99-year lease.
Just two weeks ago, a blue-ribbon panel that examined the city's books concluded Toronto could do a better job of managing its massive real estate portfolio, and said the city could realize an extra $150 million a year from asset sales.
Some estimates had suggested the site, which is across from the Royal Ontario Museum, could be worth $7 million to $9 million, though its desirability could be limited by the long lease McDonald's holds on the land.
Question: How does this happen? You reckon the boys at Mickie Dee's could shell out the extra $3 million?
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Photo from Toronto Star