Again at the 2018 AGM, the Board refused to respond to many questions and inquiries of residents regarding various issues, financial in particular. Monthly income statements are provided but why are balance sheets and Reserve Fund statements being concealed?  Unit owners have overpaid far more than $1,000,000 for unapproved reserve fund expenditures in recent years plus thousands of dollars in unneccessary operating expenses. This list is long, yet the Board refuses to disclose these concealed documents. A few of the questions the Board refuses to respond to include the following:

1. The notes to the financial statement presented at the 2018 AGM stated that “during the year ended June 30, 2016 the organization made a motion for a special assessment of $950,000 to be placed into the Reserve”. Why does the Board continue its refusal to provide a copy of the resulting resolution? Why was the word organization used rather than Corporation?

 2. Why does the Board refuse to provide a copy of the unit owners resolution approving the recent major landscaping and signage CAPITAL expenditures or approval of the means of funding as is required by our Bylaws? Why were residents not consulted?

3.  Why has the Board always and continues to adamantly refuse to provide a copy of legally required resolutions approving reserve fund expenditures for the elevators $325,000 plus, parkade surface replacement $750,000 plus, and even the boiler expenditure of $1,000,000 which failed to receive the required support as per our Bylaws and which was rejected by some 80% of residents?

4  Why has the Board refused to provide in addition to a monthly operating statement, a monthly balance sheet and reserve fund statement where residents can at least see where and when the substantial and UNAPPROVED reserve fund expenditures are being made with resident funds?

5. The 2018 AGM was advised of the last resident review of 2015 invoices which revealed numerous most shocking findings. These include amounts owing by the commercial owner to the Corporation in the amount of $11,625.85 which they refuse to pay. This amount includes costs of their own renovations paid for by the Corporation that they refuse to pay. Why does the Board not insist upon immediate payment of $11,625.85 by the commercial owner? Why has no lien been been registered?

6. During this same resident review, a further $13,000 in illicit and illegitimate expenses were paid by the Corporation. Why has the Board refused to respond to questions or provide any reasonable response as to why these expenses were paid by the Corporation?

7. During this same resident review, the Board was presented with an invoice from the commercial owner for the cost of renovating the entrance to their condo unit #1. The Board has refused to respond with evidence as to who in fact paid for this. Why does the Board continue its refusal to respond to this or any other expenditure which is questioned by resident unit owners? With some $35,000 to $40,000 of expenditures at question in just this one resident review, how much more illicit and illegitimate spending of resident money has taken place since this review?

8. At the 2018 AGM, residents requested that a further informational meeting was required relating to the proposed “permanent” roof anchor expenditure of over $100,000. Such an expenditure is capital in nature and requires a special resolution where a private polled vote ensures a confidential vote of unit owners. With no call for the requested general and informational meeting for six months following the 2018 AGM, why did the Board suddenly call for a most inappropriate “out the required general meeting vote” on the matter, refuse to consult with residents and further refuse to conduct a voting procedure that provided no resident with an opportunity to speak to the motion or request a private polled vote?

Spadina Towers is in a very precarious financial position. Illegitimate and illicit use of reserve funds has depleted our reserve fund and resulted in unnecessary cash calls for a number of years. The price of units in the property has been severely impacted to the downside as a result. Who will buy a unit in this building where the Board at their own will and often directed by the commercial owner, repeatedly spends resident funds without resident consultation and refuses to seek the legally required approval of residents as per our Bylaws and the Condominium Property Act? Who would buy with ongoing cash calls constantly lingering over residents to pay for such illicit and inappropriate conduct? Residents must demand a prompt and meaningful response from the Board to each of the above questions. Further, a resident review of invoices (2016-2019) must take place prior to preparation of the 2018-2019 year end audited report so that residents can be assured of a fully accurate and transparent report.

Any responsibly minded resident owner would agree that such a review is urgently required. As a matter of transparency and democracy, no resident Board member can possibly have any reason to disagree or object to such a review unless of course they have something to hide.  A general meeting should be held as soon as possible to hear the response of the Board to the above questions and determine the date of a resident invoice review. A private polled vote with a secret ballot will be requested in response to any motion relating to this matter so that your position will be only known to you! Don’t simply sit silently and wait for the next cash call! Should you agree that a general meeting be held as soon as possible to review the above issues, please send an email message simply stating YES TO A GENERAL MEETING to [email protected] at your earliest convenience. Thankyou!

Following the AGM held on October 6^th, 2019, a written request was made to the Board of Directors regarding the finances of the Corporation and that an informational meeting be held to explain numerous unaddressed issues and questions of residents. Some of the issues included the following:

1. The Board refused to hold a required general meeting to consult with residents and properly obtain a resolution via a private polled vote to spend more than $100,000 for permanent roof anchors clearly not required. The Board has refused to respond as to why they clearly avoided a meeting with residents and refused to permit a private polled vote on this matter.
2.  The Board was questioned as to why the notes to the financial statement presented at the AGM stated that “during the year ended June 30, 2016 the organization made a motion for a special assessment of $950,000 to be placed into the Reserve”. The Board has refused to provide a copy of this supposed resolution and explain why the word organization was now being used to replace the word corporation as defined and required by our Bylaws. 
3. The Board proceeded with a major capital expenditure for landscaping, once again refusing the presentation to residents or any effort seeking their required approval for both the expenditure and how it is to be funded.
4. The Board proceeded with a capital expenditure for front signage again with no consultation with residents or effort to seek their required approval. Further, the Board proceeded in direct contradiction to a signage resolution passed at a previous AGM with the support of residents. Again, the Board has refused to respect this resolution.
5. The Board insisted upon (with no consultation with residents) penalizing residents or their visitors for parking in resident visitor parking for more than four hours. This as a result of parking violations by our resident president and contractors. Again, the Board refuses to ensure enforcement and contractor violations continue every day. The commercial owner and tenants continue to illegally park in commercial visitor parking as well.
6. The AGM was advised of the most recent resident review of invoices and its findings which revealed amounts owing to the Corporation by the commercial owner ($11,625.85) which they have refused to pay. This amount includes costs of their renovations paid by Spadina and their share of common expenses that they have refused to pay. The resident review of a one year period also included a further $13,000 of illegitimate expenditures paid by the property manager. Why did NO RESIDENT BOARD member question this illicit and illegitimate use of resident funds? Who knows how much more will be revealed upon the next resident review? Residents must not permit the commercial owner, management and the Board to refuse resident access to invoice and related documents that they are fully entitled to. At the time of the resident review of invoices, the Board was presented by the commercial owner with an invoice for their new front door entrance for their condo unit 1. The Board has refused to confirm who in fact paid for this door and entrance way.
7. The Board was provided with a resident assessment of the financial position of the Corporation which portrayed a very troubling situation due to careless spending on unnecessary expenditures including the totally unnecessary $100,000 plus on permanent roof anchors where fully safe, certified and compliant temporary anchors would have continued to serve well as they have for more than 40 years. The Board continues to reject any resident request to halt the totally irresponsible spending and rapid depletion of our Reserve Fund. Why are Reserve Fund financial reports not provided monthly instead of once a year?
8. Operating expenses can be reduced dramatically. Yet, the Board refuses to allow residents an opportunity to express their thoughts and comments on this matter at a general meeting.

Before going to another Annual General Meeting, residents should be given an opportunity to become much more informed through mutual consultation with the Board of Directors rather than the usual avoidance and rejection they experience at AGM’s. The Board should no longer be permitted to shy away and avoid a town meeting promised long ago by the Board.  

A general meeting must be held very soon to hear about how and why our money is being spent! A resident review of invoices and other source documents must take place prior to the meeting in order that all residents have an opportunity to receive assurance that no further illicit or illegitimate use of their funds has taken place since the last resident review. Financial mismanagement of the Corporation has dramatically reduced the level of our Reserve Fund which will be totally depleted in the next 2-3 years. This has resulted in a severe negative impact upon property values at Spadina Towers where market values have been reduced by 15 – 30%.  

You will be asked in the near future to support a general meeting to discuss these and other issues that residents may have. This is no time for silence. It’s time to speak up!