August 18, 2017


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Shindico paid $800K for brokering building purchase

Hey there, time traveller!
This article was published 27/11/2013 (1359 days ago), so information in it may no longer be current.

LOCAL developer Shindico Realty was paid a commission for the police headquarters building, even though the city convinced Canada Post to sell the Graham Avenue complex without putting it on the market.

Members of the executive policy committee were told Wednesday Shindico received a 2.75 per cent commission worth $804,000.

Former CAO Phil Sheegl has been credited for convincing Canada Post to sell the complex to the city.

Mayor Sam Katz defended using a brokerage firm on the project, explaining Shindico ensured the transaction went smoothly.

"To make sure all the I's and T's are dotted and crossed and everything is covered," Katz said when explaining why Shindico was hired, adding Canada Post also employed a brokerage firm for the deal.

As part of the deal Sheegl struck with Canada Post, the city extended transit service to its new mail-processing facility near the Richardson International Airport at an annual cost of $125,000.

Chief financial officer Mike Ruta said Shindico earned the commission when it convinced Canada Post to lower its asking price to $29.25 million because asbestos had to be removed at a cost of $750,000.

Shindico was also brought in to "ensure the deal was handled properly," Ruta said, adding the company carried out due diligence on inspections involving other consultants.

Ruta said during a six-month period, Shindico assembled a consulting team to work with police on the early stages of the project and negotiated some leases for the six-storey commercial tower.

Ruta said Shindico also brought in a second team of engineers and architects, who were paid a combined $174,000 for their work.

-- Aldo Santin

Read more by Aldo Santin.


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