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Former library sold to Farhi for $2.4 M
London developer Shmuel Farhi has bought the old central library for $2.4 million.
But the city will net only $1 million on the 65-year-old Queens Avenue building because the cost of removing asbestos insulation, estimated at $1.4 million, will be deducted.
"I'm very excited about it because my heart and soul is in the downtown," Farhi said before council ratified the deal at a special meeting last night.
Farhi's bid includes a promise to preserve the building's facade and foyer atrium, which city council designated as historically significant.
"It's a win-win situation for everyone," Controller Gord Hume said. "And it's going to bring even more people to the downtown and take unproductive, empty buildings and make them productive again."
Controller Bud Polhill called the sale a "great deal for Farhi and the city.
"It gets the building into private hands to be developed, it gets tax dollars coming into the city and it gets the cost of carrying the building off the city's shoulders," Polhill said.
The city will unload a property that, instead of costing $200,000 a year in upkeep, will produce an estimated $100,000 in tax revenue.
For months, the success of Farhi's bid has been in doubt after another group of investors, led by developer Bob Siskind, proposed an office development.
On March 11, city council met in special session to decide between the two bids. But with two members unable to attend the meeting, the vote ended in a tie, sending the issue back to board of control.
But Siskind's group withdrew its offer following the sudden death of partner Peter Lockyer on March 28.
Farhi has suggested several development possibilities for the old library building. They include a highrise residential tower, or developing the existing building into high-priced condominiums. Another plan would also see exclusive condominiums built adjacent to the former library.
Farhi declined to discuss his plans or the timing until council's approval. He couldn't be reached for comment last night.
Council also supported a motion by Coun. Judy Bryant to find a way -- using all or some of the proceeds from the sale -- to recognize the contribution of Elsie Perrin Williams.
Williams, heiress to the Perrin Biscuit Company (later bought out by McCormick), left a $1-million trust fund to the city when she died in 1934.
The money and her 27 1/2 -hectare estate were to be used for a park and museum. But city officials went to court to get the legacy changed and instead used the money to build the library and a new wing at Victoria Hospital.
With five major residential towers with about 1,200 units either open or under construction downtown, observers say it's unlikely Farhi will move fast on a residential development, especially a 175-unit highrise.
"It's very unlikely," said Vic Cote, the city's finance boss.
"I think the market needs a breather to absorb those new units before we'll see another residential highrise."
What is certain is that Farhi will use the library's 100-plus parking spaces to lease or redevelop nearby buildings into office or residential space.
Farhi said he has been unable to lease office space or convert space to residential use because of the lack of parking.
If Farhi can find tenants for other buildings, the city gets additional tax income because vacant buildings are taxed at a significantly reduced rate.
It will take months to remove the asbestos.
Asbestos has been linked to a variety of health problems, especially if it is disturbed or cut.
The fibres can cause scarring of the lungs and make it hard to breathe. It is also linked to lung cancer and mesothelioma, a cancer of the chest lining.
Copyright © The London Free Press
London developer Shmuel Farhi has bought the old central library for $2.4 million.
But the city will net only $1 million on the 65-year-old Queens Avenue building because the cost of removing asbestos insulation, estimated at $1.4 million, will be deducted.
"I'm very excited about it because my heart and soul is in the downtown," Farhi said before council ratified the deal at a special meeting last night.
Farhi's bid includes a promise to preserve the building's facade and foyer atrium, which city council designated as historically significant.
"It's a win-win situation for everyone," Controller Gord Hume said. "And it's going to bring even more people to the downtown and take unproductive, empty buildings and make them productive again."
Controller Bud Polhill called the sale a "great deal for Farhi and the city.
"It gets the building into private hands to be developed, it gets tax dollars coming into the city and it gets the cost of carrying the building off the city's shoulders," Polhill said.
The city will unload a property that, instead of costing $200,000 a year in upkeep, will produce an estimated $100,000 in tax revenue.
For months, the success of Farhi's bid has been in doubt after another group of investors, led by developer Bob Siskind, proposed an office development.
On March 11, city council met in special session to decide between the two bids. But with two members unable to attend the meeting, the vote ended in a tie, sending the issue back to board of control.
But Siskind's group withdrew its offer following the sudden death of partner Peter Lockyer on March 28.
Farhi has suggested several development possibilities for the old library building. They include a highrise residential tower, or developing the existing building into high-priced condominiums. Another plan would also see exclusive condominiums built adjacent to the former library.
Farhi declined to discuss his plans or the timing until council's approval. He couldn't be reached for comment last night.
Council also supported a motion by Coun. Judy Bryant to find a way -- using all or some of the proceeds from the sale -- to recognize the contribution of Elsie Perrin Williams.
Williams, heiress to the Perrin Biscuit Company (later bought out by McCormick), left a $1-million trust fund to the city when she died in 1934.
The money and her 27 1/2 -hectare estate were to be used for a park and museum. But city officials went to court to get the legacy changed and instead used the money to build the library and a new wing at Victoria Hospital.
With five major residential towers with about 1,200 units either open or under construction downtown, observers say it's unlikely Farhi will move fast on a residential development, especially a 175-unit highrise.
"It's very unlikely," said Vic Cote, the city's finance boss.
"I think the market needs a breather to absorb those new units before we'll see another residential highrise."
What is certain is that Farhi will use the library's 100-plus parking spaces to lease or redevelop nearby buildings into office or residential space.
Farhi said he has been unable to lease office space or convert space to residential use because of the lack of parking.
If Farhi can find tenants for other buildings, the city gets additional tax income because vacant buildings are taxed at a significantly reduced rate.
It will take months to remove the asbestos.
Asbestos has been linked to a variety of health problems, especially if it is disturbed or cut.
The fibres can cause scarring of the lungs and make it hard to breathe. It is also linked to lung cancer and mesothelioma, a cancer of the chest lining.
Copyright © The London Free Press
