TORONTO :  CN TOWER

Falling ice closes Gardiner

Police closed the Gardiner Expressway in both directions during this morning's rush hour after baseball-sized chunks of ice began falling from the CN Tower.

The roadway was shut down from Yonge St. to Spadina Ave. at 8 a.m. and will stay closed as long as falling ice poses a danger to traffic, said city transportation spokesperson Gary Welsh.

“Sizable chunks of ice have been falling down in the general area and there was a potential that ice could fall on the Gardiner,” Welsh said.

King St. was also shut down downtown from Yonge St. to Bay St. due to ice falling from office buildings, and all TTC vehicles have been re-routed around the area, police said.

The ice collected on buildings during last Thursday’s snow and ice storm, which knocked out power to thousands of homes in the city.

One massive piece of ice hanging from the CN Tower has police particularly concerned, Welsh said.

“We can’t determine when to reopen the lanes because there’s one sheet of ice that I’ve heard is very big – around 50 metres – and there’s concern that it can come down on the Gardiner,” he said.

No injuries have been reported from the falling ice.

However, all lanes and on-ramps of the Gardiner remain closed in both directions, forcing motorists to find alternate travel routes. Many drivers used Lakeshore Ave., and the increased volume brought traffic there to a virtual standstill between Jarvis and Parliament streets.

It wasn’t immediately clear if the Gardiner would remain closed through the afternoon rush hour, which would create a traffic nightmare for thousands of commuters making their way out of the city.

This morning, officials would only say that the roadway would remain closed until conditions no longer pose a danger to the public.

The area around the CN Tower and Rogers Centre has also been closed to all vehicles and pedestrians, Welsh said.

Environment Canada has issued a wind and wind-chill warning for today, with wind speeds expected to gust up to 90 km/hr and a wind chill of –35C. - TORONTO STAR    March 5, 2007

HISTORY

The operation of Toronto's landmark CN Tower was returned by Trizec Canada Inc. . to the owner, Crown corporation Canada Lands Corp. Trizec ended a long-term lease to manage the world's tallest freestanding structure.   All of the tower's non-executive staff, consisting of 386 full- and part-time workers, have received offers of employment from the Crown corporation. The end of the 40-year lease, signed in 1996, will not result in a loss for the Toronto firm. That is because under the terms of the deal, the sale of the management rights back to Canada Lands will be equal to the value (US$35.5 million) Trizec carries on its books for the contract. The end of the management contract comes after more than a year of unsuccessful attempts by Trizec to find a buyer for the long-term lease that would satisfy the conditions of Canada Lands, which included redevelopment of the land at the base of the tower.        -20 Dec 2003

On the shores of Lake Ontario and soaring 553 metres, the CN Tower may attract a range of bidders for its lease, including entertainment companies, analysts say.

The CN Tower, which stands for Canada's National Tower, was once considered the flagship property of real-estate company TrizecHahn, which holds a 70-year lease.

"It is one of a kind," "It is a destination location for tourists who come to Toronto. For this type of property, it is a very select group that they will be targeting."

Government-owned Canada Lands owns the tower and must approve any change in management of the structure that was built in the 1970s as a communications tower. It is now a huge tourist draw and one of Canada's most recognisable landmarks.

The needle-like structure attracts two million visitors a year and is Toronto's top tourist stop, taking in C$50 million (about HK$249.5 million) in revenues annually from telecommunications fees, restaurants and entertainment.

A TrizecHahn spokesman said the firm expected to put the lease, which expires in Canada's bicentennial year of 2067, on the market this year and has yet to hire a broker. The move is part of a strategy to focus on the lucrative US commercial real-estate market.

TrizecHahn also manages the second-tallest skyscraper in the world - the Sears Tower in Chicago. The Petronas Towers in Malaysia are the world's tallest skyscrapers at 452 metres each, but still shorter than the CN Tower.

Analysts say it is difficult to put a price on the lease because normal valuation criteria do not apply. Foreign investors may be interested because the tower offers the opportunity to diversify portfolios and the Canadian real-estate market is seen as stable.

The successful bidder would have to respect certain conditions, such as keeping all signs in both English and French, said Gordon McIvor, a Canada Lands vice-president. He made clear the tower was not for sale.

Construction of the CN Tower began on February 6, 1973. The idea was to fix fuzzy television and radio reception in Toronto caused by signals bouncing off tall buildings.

The tower, topped with a 102-metre antenna that now serves 16 television and FM radio stations, was completed on April 2, 1975, at a cost of C$63 million - the equivalent of about C$300 million today. The then state-owned Canadian National Railway, which commissioned it, opened the doors on June 26, 1976.

Ownership transferred to Canada Lands in 1995 after Canadian National was privatised.

TrizecHahn won the CN Tower lease in 1997 from a dozen companies after an international search. Another option is for Canada Lands to manage the tower itself, which it did between 1995 and 1997, shortly after the railway went public.

TrizecHahn Corp. is selling Toronto's best known landmark -- the CN Tower -- and expects to have it on the market by the end of the year.

The Toronto-based real estate company, which is converting itself into a U.S. real estate investment trust, is unloading all of its property in Canada and has long been expected to move the CN Tower.

Yesterday, it indicated the sale could come sooner rather than later. "We expect to have the property on the market by year end," said Rick Matthews, senior vice-president.

The building is owned by Canada Lands Co., a federal Crown corporation, but TrizecHahn has a long-term lease on the property with about 70 years to go.

At least one real industry executive wondered whether the time is right to sell TrizecHahn's interest.

"The market for tall buildings is not very good right now, considering what happened at the World Trade Center," said the industry source, who did not want to be identified.

In the wake of the bombings, The New York Times reported that some office workers in TrizecHahn's 110-storey Sears Tower in Chicago were actually considering buying parachutes.

Bud Purves, president and general manager of the CN Tower, said a package is now being put together on the tower.

Mr. Purves maintained the tower has not been severely impacted by the terrorist attacks in New York and Washington and noted that it had 3,100 visitors the day after the bombings.

"It's a unique business and has a 25-year track record of being a great business," said Mr. Purves.

He would not suggest a price but the CN Tower carries a value of US$26-million on TrizecHahn's books. Annual revenue from the tower is about $50-million, with income coming from restaurants, attraction fees and telecommunication fees for sending out broadcast signals.

TrizecHahn has the right to build 300,000 square feet of retail or office space next to the tower.

So who would buy it? Ross Moore, national research director for Colliers International in Boston, said the CN Tower might be more of a fit for an entertainment company than a real estate company.

"Someone like Disney might be interested. But I think there will be a cry from politicians to keep it in Canadian hands," said Mr. Moore.   Gordon McIvor, a vice-president with Canada Lands, said there are a number of factors, such as "its symbolic strength as Canadian icon," in the lease that will keep it Canadian.

While there is nothing specific in the lease forbidding a foreign buyer, Mr. McIvor said it would be reviewed. Canada Lands has to approve any change in the lease holder.

While some real estate executives questioned who might step up and buy the lease, Mr. McIvor said there will be plenty of takers based on the last experience.

"You wouldn't believe how many [companies] were interested," said Mr. McIvor, referring to the awarding of the lease to TrizecHahn in 1997    - REUTERS

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