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Lawsuit threatened by Gateway if TTC backs out of deal

Posted By: Newstalk 1010 · 2/26/2013 6:33:00 AM

The parent company of Gateway Newsstands in the Toronto subway system is threatening to sue the TTC if it revokes a lease extension which has been agreed to but not yet signed-off on.

Lawyers for Tobmar Investments International say this contract has been approved twice so far and the company never expected to be in this position.

The letter stated, "If the commission does not proceed with the contract, then our client will have no choice but to move for injunctive relief for, amongst others, specific performance of its contract with the commission.”

A recent third party review of the lease extension recommended the Gateway leases be put up for public tender and on Monday, the TTC put the Gateway deal on hold. The discussions about putting out a request for proposals will be dealt with by the TTC March 27th.

It's a minor victory for Mayor Rob Ford and his brother, councillor Doug Ford since they had been fighting for multiple bids on the $50-million dollar contract.

On NewsTalk 1010's Live Drive with John Tory,  TTC chair Karen Stintz indicated there won't be a gap in service, "The current leases don't expire until 2014, so, the competitive process would run between now and then and with the view that there would be the least disruption possible, so the consumer can still get what they need as they enter the subway system" Stintz said.

(some files by D. Agar)

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  1. Don Cherry was right posted on 02/26/2013 08:19 AM
    If Stitz had a clue she woudl have run a proper tender in teh first place, and a new, higher, legitimate lease woudl have been in place from teh beginning, and there woudl be no ",issing 3 million". Any award to gateway shoudl come out of Stintz pay. And maybe time to start seeing if there was any conflict of interest.
  2. CoffeeCon posted on 02/26/2013 11:16 AM
    the only reason they would threaten to sue is to protect their ridiculously good deal. the prices in those shops are terrible b/c there's no competition (hello, welcome to canada) and they know it.

    when the lefties on council screw this up and run out of time and have not completed the process, mark my words: they will blame it on Ford.
    1. CoffeeCon posted on 02/26/2013 11:16 AM
      @CoffeeCon also, how to get rid of this reprobate stintz?
  3. Doug posted on 02/26/2013 12:42 PM
    I've never understood why deals aren't signed right then and there when they're reached. If it's because the deal is conditional on the approval of a party that's not at the negotiations (e.g., a ratification vote of an union's membership, or council approval, etc.), then it's not really a deal. Instead, it's an agreement to try to make the terms reached into a deal, but one that's not binding until the conditions are satisfied.
  4. steve posted on 02/26/2013 03:13 PM
    I would not consider accusations of conflict at this point. This is a deal that has been in place for many years so it was not really authored by the current administration. Having said that, Ms. Stintz should have had the foresight and the tenacity to see single source contracts for what they are. Patronage is a common side effect of this and it doesn't start with the Chairperson. Look to staff as well. The previous author cited "lefties". I have to agree as it seems the name can go synonymous with s.s. contracts. Does anybody remember street cars and Thunder Bay imposed by the previous Mayor. What Ms. Stintz should learn is the basic lesson of "Respect for the Taxpayers". That should be the mantra and the guide for all Politicians. Unfortunately, it is not.
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