‘This will financially destroy me’: Hamilton condo buyer says Knitting Mill delays will cost him his home

David Andrec says he is watching in helpless disbelief as his dream of affordable Hamilton condo ownership dies in slow motion at the former Cannon Knitting Mills.

It's an increasingly common condo conundrum for would-be buyers across the Greater Toronto Area disappointed by cancelled projects or refunded deposits.

The Hamilton native bought in early as an enthusiastic supporter" of the long-planned condo project pitched by developer Harry Stinson near Beasley Park. He put down a $60,000 deposit in 2016 for a one-bedroom unit with parking that - at the time - was to cost around $184,000 in total.

More than five years later, Andrec said he has been warned the project is unlikely to be completed before his contract expires - and if he wants to buy in later, the same unit could cost three times as much.

I put down the biggest deposit I could at the time ... I moved to Newfoundland while I waited because I couldn't even afford to rent in Ontario," said Andrec, who argues his contract should be extended to honour his original purchase price. This will financially destroy me. How is this fair?"

It's a particularly bitter pill for Andrec, who said he only started shopping for Hamilton condos after losing a pre-construction unit in Toronto to similar delays.

Stinson said while many original Knitting Mill condo buyers lost patience and took their deposit money elsewhere, Andrec's contract has been extended in the past and it remains valid - for now. We've never pushed anybody out," said Stinson, who is best known locally for school redevelopments as well as an unrealized plan to build Canada's tallest tower downtown.

But the developer also confirmed Andrec's contract stipulates his purchase agreement will be voided, and any deposit returned with interest, if the project is not done in 2024. That completion date is not terribly likely," conceded Stinson, who has yet to receive city planning approval for the latest and tallest - about 30 storeys - of several tower visions for the industrial complex.

He is also fighting untested allegations that he breached provincial securities regulations related to a Buffalo, N.Y., project. Stinson contests the allegations but said finding financing is difficult while the issue looms over his head.

Regardless, Stinson said he will likely have to sell one-bedroom units in the Beasley project at closer to $500,000 or $600,000 in order to make financing work in a Hamilton real estate market that is far different" than that of 2016.

I understand that he (Andrec) is frustrated, but he's also being totally unrealistic," said the developer. It has to be viable. I cannot take a project to a bank, and say ... it loses money significantly, but would like you like to finance it?"

Since 2016, housing prices have exploded across Canada and the pandemic kick-started a wave of inflation, higher labour costs and supply-chain woes that builders say has significantly driven up construction prices.

Refunded deposits and project cancellations have become increasingly common across the GTA and in Hamilton.

It happened to original buyers in the now-infamous Connolly condo tower plan that is supposed to use the facade of the historic former James Street Baptist Church. The partially demolished site has since been sold twice without any construction taking place.

Amid rising costs and delays, the firm behind the high-profile Television City twin condo towers also refunded original buyers and relaunched sales in recent months. The building costs right now 25 per cent more than the original sales," developer Brad Lamb told The Spectator last month.

The outcry from jilted buyers prompted the re-elected provincial Tory government to introduce regulatory changes this year designed to make it easier for the new Home Construction Regulatory Authority to crack down on unjustifiable project cancellations.

Critics like real estate lawyer Bob Aaron suggested the measures don't go far enough - although he is heartened by the regulatory authority's recent decision to revoke the licence of a Burlington developer that demanded buyers pay substantially more for units they agreed to purchase as far back as 2015.

Regardless, Aaron urges would-be condo buyers to consult a lawyer if they feel pushed to withdraw a deposit or are threatened with a project cancellation. Have a lawyer look at your contract," he said. In some cases they may allow the builder to back out, but in others they don't."

He also said it is up to buyers to research the reputation of would-be builders to lessen the likelihood of being caught up in a cancelled project.

Stinson said he has no intention of cancelling his Beasley project, which he still hopes will be done within the next three years. I'm into this for so much I've gotta finish," he said.

Matthew Van Dongen is a transportation and environment reporter at The Spectator. mvandongen@thespec.com