Legal Update – Comprehensive Settlement

Early this month, we informed you that 90 George St. Ltd. declared its intention to sell its interest in the commercial lands. All the evidence and representations since have confirmed the commercial owner’s determination to sell and move on. With this ‘game changing’ circumstance, we have engaged with 90 George St. Ltd. in pursuit of a mutually acceptable comprehensive settlement of the arbitrations and actions that have for too long characterized our business relationship. Meeting frequently this month, the board of directors has maintained laser-like focus on all appropriate means of protecting the corporation’s interests. Last week, our negotiations and settlement discussions concluded with a comprehensive overall settlement of all disputes and litigation between us on the following main points:

 

1.  The Shared Facilities Agreement arbitration and the related arbitration of property taxes are dismissed and withdrawn without costs.
2.  The Reserve Fund Litigation is similarly dismissed without costs.
3.  The 90 George St. Ltd. claim against OCSCC 815 and the Directors is dismissed without costs.
4.  The Shared Facilities Agreement has been amended and restated to include stipulations that provide the Shared Services Committee with duties and authorities that enable good governance of the relationship between the commercial and residential owners.
5.  In consideration of a full and comprehensive release of all claims against one another, 90George St. Ltd. shall pay to OCSCC 815 the sum of $700,000 on closing of the real estate transaction presently being dealt with by 90 George St. Ltd. and in any event not later than October 1, 2015 whichever comes first.

 

In the days ahead, the board of directors will arrange for the corporation’s status certificate to reflect this comprehensive settlement. In the months ahead, the board will determine the allocation of the funds from the settlement to: strengthen the corporation’s balance sheet, including elimination of the operating deficit accumulated since 2009; assist with remediation of the reserve fund; and, to develop strategies that bolster the corporation’s image and reputation in the luxury residential condominium market in Ottawa. Having received the settlement funds and having made the allocation decisions noted above, the board expects that the remaining special assessment for legal services will end coincidentally.

 

On Behalf of your Board of Directors OCSCC No 815