Building History: 2006-2008 (continued)
December 2007 - Building Fund Budget Increased
Licence holders supported Council’s recommendation that PEO acquire a building more appropriate to its needs and image, and ratified a change to By-Law No. 1 that increased fees by $20, effective May 1, 2008. This generates about $1.3 million annually towards the building fund.
Council established a budget of $30 million net of capital value to acquire and fit out the building. (PEO could purchase a larger building, that may cost more than $30 million if the amount is offset by rental income) This budget represented the PEO cost of occupancy at 25 Sheppard plus the $20/member/year increase.
The ongoing contribution to the building fund will permit PEO to invest in maintaining the building as the showcase building for engineering.
August 2008 - Council Authorizes Pursuit of 40 Sheppard Avenue West
The search changed to proactively seek properties in the Yonge Street and Sheppard Avenue area that were within the $30 million budget. Six opportunities emerged, including two condominium arrangements for new office/residential projects. The Building Committee focused on two of these opportunities: a land assembly deal to acquire four properties and build a 50,000sf building and the purchase of 40 Sheppard West.
The CEO/Registrar and the President were authorized to negotiate a purchase and sale agreement with the owners of 40 Sheppard West, since the building was not on the market.
November 2008 – Council Authorizes Purchase, Subject to Due Diligence
After long negotiations, the sell price was established at $22.6 million. This reflected the appraised value of the building. An extensive due diligence was undertaken with respect to the lease obligations, all contracts and the building itself. The purchase price was adjusted to reflect some issues, and various undertakings secured by a vendor take-back mortgage were negotiated.