Ontario Construction News staff writer
The Town of Ajax has cleared a major legal hurdle in its efforts to take control of properties tied to the stalled Central Park Ajax development, ending a seven-year legal process and opening the door to a future redevelopment of Ajax Plaza.
The Town says the Court of Appeal for Ontario on July 28 denied another mortgage holder’s application for leave to appeal, allowing Ajax to proceed with purchasing the properties from the court-appointed receiver.
The properties include the parking lot that was originally proposed as the primary site for a condominium development, three plaza buildings identified for utility lands and four additional plaza buildings.
The transaction is expected to allow the Town to recover outstanding property taxes, amounts owing under the mortgage and other charges.
Ajax also retained $1.4 million in mortgage proceeds from its original agreement with LeMine Group. The funds will be used to help offset the purchase price of the properties.
The Town said a full accounting of the transaction, including the final purchase price and other financial details, will be presented at a future council meeting once the sale is complete.
Mayor Shaun Collier said the acquisition creates an opportunity for the municipality to take a longer-term approach to the future of the plaza and downtown.
“This is an important step forward for the future of Ajax Plaza and our downtown. After years of uncertainty, the Town is now in a position to take a thoughtful and responsible approach to these lands, with a focus on long-term public benefit and downtown revitalization. This milestone builds on a longstanding commitment shared by the current Council and previous Councils to strengthen our downtown and create lasting value for residents.”
Ajax CAO Shane Baker credited municipal staff with pursuing the matter through the lengthy legal process.
“This outcome reflects the persistence, professionalism and determination of Town staff over many years. Securing these lands is a significant achievement for Ajax and creates an important opportunity to advance redevelopment that will transform the downtown for generations to come.”
The Town says detailed planning for the properties will not take place until the next term of council. That work is expected to include a visioning process and future marketing of the lands, as well as identifying an experienced development partner for the site.
Ajax also plans to engage existing leaseholders and other businesses in the area as the process moves forward.
The municipality said it will launch a dedicated project webpage with a timeline of the project and information about future steps.
The Court of Appeal decision does not necessarily end all potential legal proceedings. The Town said it will provide another update if a leave to appeal to the Supreme Court of Canada is sought.
