Moving vans, meetings for business tenants caught in legal dispute with landlord in Ontario town

A business plaza parking lot in Whitby usually devoted to clients was busy with U-Hauls Tuesday as nearly many of the 70 small business owners caught in the middle of a legal dispute scrambled to get their belongings out before they’re locked out for good this weekend.

The tenants who rent office space at the Durham Corporate Centre at 105 Consumers Drive were told May 21 they had ten days to vacate after learning the lease they had signed was not actually with the property owners and that Tim Kennedy, who is listed as president and owner of the Durham Corporate Centre, was in arrears in paying the building owners.

Tara Iaboni, who has run My Montessori Tutoring out of the building for the past two years, said it was “heartbreaking” to be shut out of her workspace with no warning.

“The impact on our students, families, and livelihoods is massive,” she said. “This isn’t just about one business, it’s about our entire local business community being thrown into crisis overnight.”

How far behind Kennedy (who has not responded to enquiries) was in his rent payments was the subject of much speculation among the tenants, which include therapists, health practitioners, accountants and other service providers, but it was long enough for the building owners to contract another property management company – Sterling Karamar Property Management of Toronto (who has also declined to comment on the story) – to deliver the bad news to the tenants.

The tenants organized a protest at the building Sunday to raise awareness but it appears the owner is following through on his demand that the tenants vacate, with May 31 (Saturday) given as the last day.

Wayne Hogan, who has operated a business at the building since 2012, is skeptical there will be a change of heart in the dispute.

“The owners have this far shown no interest in tenants continuing their business there. I can only suspect they wish to empty the building for other purposes.”

“Ruthless business owners should never get a free pass. If they don’t want to be a positive contributor to the community then they should consider themselves unwelcome.”

Whitby Mayor Elizabeth Roy said she was “very concerned” by the news but that there was little the town can do legally in the dispute.

“While the Town of Whitby cannot intervene in this legal matter, we are doing everything possible to support the affected businesses,” Roy said, adding that she talked with business owners this week to “hear directly about their needs.”

A survey has also been distributed to all tenants to see if they need help securing temporary office space, with several dozen responses received.

“We’re also working closely with the Whitby Chamber of Commerce, 1855 Technology Accelerator and commercial property owners in the community to find potential spaces for relocation.”

Hogan said the week has been “chaotic” as he packs up his belongings after 14 years in the same location, adding he’s called movers to “clear everything that’s left” and put it in storage. “All of this is just temporary to keep things running. I’m just exhausted trying to keep up with customers too.”

Roy has arranged a meeting Wednesday evening – calling it a ‘Mayor’s Round Table’ – with the tenants invited to have their say.

The mayor is also asking anyone with available office space to reach out at [email protected] or go to whitby.ca/en/work/economic-development.aspx to talk to the town’s Economic Development team.

The Durham Corporate Centre offers affordable workstations, office space and boardrooms for small businesses and entrepreneurs.