Ontario regulators wont take action against Torontos Trump Tower

TORONTO — Ontario regulators say after reviewing the sale of hotel units to investors in Toronto’s Trump International Hotel and Tower, it has decided not to pursue action against the developer.The Ontario Securities Commission said Tuesday it made the decision after considering a number of factors, including meeting with prospective purchasers. The regulator did not give any further details on the decision.On Friday, developer Talon International Inc. said it would extend the closing date to Dec. 13 for the sale of hotel condominium units at the downtown Toronto hotel and residence in order to deal with inquiries by the Ontario Securities Commission.With the OSC’s decision, disgruntled investors who are trying to get out of their contracts to buy luxury condos in the project are left scrambling to find financing for their purchases.More than a dozen buyers are suing Talon to get out of the deals, while the developer is suing others who filed notice earlier in the year of their refusal to close.While real estate mogul and TV personality Donald Trump’s company did not develop the property, the Trump Hotel Collection manages the property, which opened this year in Toronto’s business district. A lawyer for the Trump Organization has said the lawsuits are a simple case of buyer’s remorse.The investors said every Canadian bank has refused to offer financing to them, despite assurances from Talon that hotel units could be easily financed as residential condo units.The investors said they’ve learned that Canadian banks are treating the hotel project as a commercial enterprise and are refusing financing as a condo purchase.They also say their investments are running up losses of more than $175 a day per unit because of the current shortfall between maintenance fees and hotel unit revenues.Investors say they’re now faced with either having to come up with substantial amounts of cash to close or resort to secondary financial institutions which will only provide partial financing for the project as a commercial investment at high interest rates.The investors have launched a multimillion-dollar lawsuit against Talon and their directors, as well as a number of Trump organizations and their directors, including Donald Trump Sr.The plaintiffs’ claims allege that investors were persuaded into investing in the Trump Hotel on the basis of alleged negligent or reckless misrepresentations, and that promises and projections offered were allegedly inaccurate and in contravention of securities regulations.None of the allegations have been proven in court.In 2004, when the hotel project was first being planned, the investors say Talon sought permission from the OSC to be exempt from regulatory requirements for commercial investments, and provided a number of promises and conditions to obtain those exemptions.In granting an exemption, the OSC made it a strict condition that Talon and Trump Hotel not market the hotel units as a cash-flow investment.The Canadian Press, with files from Reuters read more

Swappage scheme could generate €129 million for Exchequer says motor industry

first_imgSimilar to scrappage but much more beneficial to the Exchequer, swappage has the potential to deliver an even greater benefit but at no greater risk to tax revenues, the Industry or the state.In their proposal for Budget 2014, SIMI estimates that 17,000 cars would be sold through the scheme and that it would save 11,500 tonnes of CO2 emissions per year.New car salesSince the downturn, car sales have fallen dramatically. According to the SIMI, in 2007, €2 billion in tax was generated from the sale of 186,000 new cars.This has fallen by €1.4 billion and this year, less than €600 million will be collected from just 73,000 new cars.SIMI state that since 2007, 12,800 jobs have been lost in the motor industry, while over the past five years, 150 garages have closed.  New car sales have been down by 57 per cent for 5 years.No costThey also argue that a swappage scheme will not need resources from any other projects and would be self-financing and at no cost to the Exchequer. “It would deliver an immediate and significant increase in tax revenues,” they add.Paul Linders, SIMI President said that the motor industry is facing a “fundamental structural problem, where traditional new car buyers are left out of the market due to the cost to change gap”. He added: THE SOCIETY OF the Irish Motor Industry (SIMI) has said that a swappage scheme would give a much needed boost to the motor industry.They propose that a €2,000 reduction in VRT on the purchase of a new car where the trade-in is a 2008 car or older would create 2,200 jobs and generate €129 million for the Exchequer.Alan Nolan, SIMI Director General said: We need action now and if no incentive is introduced, we’ll see many more dealers go out of businesses and the local employment they provide will be gone.Swappage would cost the state nothing, new jobs would be created, the Exchequer would gain significant extra revenue and we have a chance of returning to more normal levels of business when consumer confidence and normal economic growth levels return.”Read: New ’132′ reg system drives huge increase in August car sales>Read: ’131′ plates don’t seem to be working as new car sales down 11.2% in May>last_img read more