SNC-Lavalin's out.
Backer walks from deal for city's Islington parcel
Apr 25, 2008 04:30 AM
Paul Moloney
city hall bureau
A property deal meant to help finance Islington subway-station upgrades and spur a new city centre for Etobicoke by putting more than 1,000 workers into a new office tower has fallen through.
The city had said a year ago that it expected to receive several million dollars for the site from the Montreal-based engineering firm SNC-Lavalin, which planned to construct a $98 million, 20-storey building there. But the company has since quietly walked away from the project.
"Sure, it was disappointing," said Councillor Peter Milczyn. "Lavalin are precisely the type of business you want."
He said the high-profile engineering firm, which initiated the negotiations, later decided "at a very high corporate level" to continue renting space in this city instead. It's not clear whether Ontario's economic downturn was a factor.
Lavalin spokesperson Gillian MacCormack would not comment on the reasons for the change of heart, saying only that her company is looking at different options for its Toronto office needs.
The withdrawal had no connection to the company's stalled bid to build a high-speed rail link between Union Station and Pearson airport, she said.
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