What was referred to as a Reserve Fund Budget at the October 5, 2017 Annual General Meeting was in fact NOT a Reserve Fund Budget at all. It was rather some very vague commentary on deferred maintenance items. Obviously, little effort was made in obtaining reasonable cost estimates so in turn, residents have been left with no idea as to what funding may be required. The Board has refused to present a legitimate Reserve Fund budget for unit owner approval in most years since 2010 and has unlawfully used cash calls rather than seeking the required unit owner approval of funding by resolution. No such resolutions exist! Yet, millions of dollars have been spent without them.

As a result, a General Meeting will have to be held at some point in the near future to ensure that residents are presented with a formal Reserve Fund Budget based upon much more information including reasonable cost estimates. Only then, will unit owners be in a position to approve such expenditures via formal resolution and a second formal resolution approving appropriate Reserve Fund contributions within our monthly condominium fees as required by our Bylaws.

This is the proper, responsible and legal procedure when dealing with Reserve Fund expenditures, not simply continuing to leave this required process in the hands of the Board which is unlawful. The Board’s insistence to circumvent the proper approval and funding process by declaring illegal and surprise cash calls can no longer be tolerated. The Board has used cash calls to cover up its mismanagement of unit owner funds for a number of years, avoiding the required approvals of unit owners. CASH CALLS ARE NOT NECESSARY WITH RESPONSIBLE FINANCIAL MANAGEMENT. The legal requirements and procedure are outlined in our Bylaws, Section 10.4 Reserve Funds, Section 10.5 Budgets, and Secion 11.8 Capital Expenditures.

It is well known fact that a number of Spadina Towers condo owners have been severely harmed financially in the sale of their units in recent years due to the required deep discounting of their sale price. The main reason for this as reported by numerous real estate agents, is the poor perception of our building in the marketplace regarding our building’s financial and management practices. No one wants to buy a property when they know they face the uncertainty of when and how much they will be called upon for substantial, unlawfull and surprise cash calls.

It is clear that there has been very little research done by the Board relating to their suggested Reserve Fund expenditures. Some expenditures are not required at all. For example, roof anchors at a suggested cost of $84,000 to $100,000, are not required at all. A simple communication with the appropriate authorities confirms this. Mr. McClocklin clearly mislead his fellow Board members and most residents. What a convenient way for he to avoid contribution to window cleaning for the past three years!

The Reserve Fund expenditures in the fiscal year ending June 30, 2017, were a fine example of unlawful conduct. They clearly involved illegal and unapproved capital expenditures, including totally altered landscaping with no consultation with residents and no approval by special resolution as is legally required. Exactly the same illegal activity took place recently in the case of Boily vs. Carleton Condominiums where the Board members were held personally liable at substantial cost to them. It appears that a similar remedy will unfortunately have to be pursued at Spadina Towers as well.

Other unapproved Reserve Fund expenditures including Capital expenditures have proceeded this past year with many questions left unanswered. Further, it is required that the Commercial owner refund the Corporation for several thousand dollars in common expenses that they have refused to pay. As well, they have used thousands of dollars of resident funds to pay for their own personal renovations. A resident review of invoices for the past five years is urgently required! The Board has been paranoid of this request! Let’s try to address these and other issues responsibly without seeking remedy in the Courts.

I and others bought a residence at Spadina Towers with the understanding that management and the Board of Directors responsibly conducted the affairs of the Corporation with respect and adherence to our Bylaws and the Condominium Property Act. For a number of years, these laws have been widely disregarded by the Board and have cost me and others, thousands of dollars in unnecessary costs. This must come to an end immediately. A recall of the 2017 AGM should be made immediately so that a proper review of the many deficiencies of building affairs can be responsibly addressed and business conducted in a lawful fashion. Until this happens, it will be illegal for the Board to make any attempt to unilaterally approve any Reserve Fund expenditures and the means of funding as well. In other words, NO MORE ILLEGAL CASH CALLS!

Should any Board member or resident be supportive of the unlawful practices of the Board as they relate to the above issues, I would suggest that they be prepared to support their position with direct references to the Bylaws and the Condominium Property Act. The immature and disrespectful conduct including the moaning and groaning by a number of obviously less than competent individuals, clearly demonstrates irresponsible behavior and should be replaced with participation from those residents who are capable of understanding and participating in discussion of the issues.