Potential purchase of The Connolly didn't go through, condo project still in limbo

The Connolly, the 30-storey residential condo tower planned for the site of the partially-demolished James Street Baptist Church, almost had a new owner in the fall.

The Ontario Superior Court of Justice appointed Spergel Inc., an insolvency firm, in June to be the receiver of the project headed by Stanton Renaissance, a company owned by Louie Santaguida.

In a Dec. 20 letter to condo unit purchasers, Spergelsays there was "a conditional agreement of purchase and sale," but it "will not be completed."

Neither Santaguidanor Spergelwere immediately available for comment Wednesday.

Spergel said in the letter that itwill resume marketing the property for sale. Senior principal Deborah Hornbostelreassured unit buyers that their deposits are held in trust by a law firm.

Once the land is sold, Spergelwill determine "whether or not the purchaser of the lands will require an assignment of the existing prebuildagreements."

"We appreciate the difficulty that this uncertainty may cause you," the letter says, "and we will keep you updated with further information as it arises."

This project was the subject of controversy when Santaguidasaid he wouldteardown two-thirds of thechurch built in 1878. Parts of the building havebeen demolished since 2014, but no development has occurred. Now the area is fenced off to visitors.

Bad history

The Connolly wasn't the first of Santaguida's projects to have problems. Some of his other business ventures have shown a history of bankruptcy.

On the Go MimicoEtobicokewent into receivership in April this year. The condo project was first marketed for sale six years ago, but was only 15 per cent finished in April.

Buyers of The Connolly were already starting to worrywhen the project was announced it will go into receivership.

Charles Azulay had put down $20,000 for a unit.

He told CBC News in July he had wanted to preserve parts of the church because he knew it very well.

"At this point now, some things have changed," he said. Instead, "I'm going to buy my dad's cottage from him. I always think that everything happens for a reason."