Diamondcorp Passes Zoning Bylaw - Triggers Density Bonus Payment

We are pleased to report that Diamondcorp has passed a rezoning bylaw for the site we sold them at St. Clair and Raglan (538 St. Clair Ave. W.), and it triggered a density bonus payment to us.  Because of the downturn in the condo market, they reduced the height of the proposed building from 35 storeys to 30 storeys and have had to put this project on the back burner for the foreseeable future.  The reduced density still exceeds the threshold for a bonus payment in our Agreement, and the payment of that bonus was due upon the passing of the bylaw as opposed to the construction of the tower.

The terms of our Agreement provide for a payment equal to $115 per square foot for each square foot of above-ground Gross Floor Area zoned greater than 205,000 square feet.  The new rezoning bylaw that was passed allows for up to 214,202 square feet above-ground which equals a payment to us in the amount of $1,058,230.  We purchased this property for $4.5MM and sold it for $13.025MM in 2022.  Adding the density bonus to the sale price equals total proceeds of $14,083,230.

We will be making a distribution today equal to 5% of the original capital contributions.  If your address has changed recently or you have any special requests for this distribution, please call or email me as soon as possible.