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Owner: ‘Doomed’ Mall Not Worth Repair

Tuesday, July 30, 2013

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Despite having the funds to repair the perpetually leaky roof on the Algo Centre Mall in Canada, the owner said he had chosen not to, because he considered the property a “black hole.”

“Algo Mall was a black hole,” Robert Nazarian testified Thursday (July 25) at a public inquiry into the structure's fatal collapse last summer. “No matter how much money put in…that mall was doomed.”

Nazarian, 68, the owner of the mall in Elliot Lake, Ontario, testified that he had had about $2.6 million from the sale of a property in 2009 but had used the money to buy another property instead of fixing the mall roof.

Elliot Lake Inquiry
Elliot Lake Inquiry

"Algo Mall was a black hole," the mall's owner, Robert Nazarian, told the public inquiry. "No matter how much money put in...that mall was doomed."

Algo Centre Mall, built in 1980, partially collapsed on June 23, 2012, and killed two people. Engineers and investigators have blamed the failure on a corroded structural weld.

The mall, which featured an uncovered rooftop parking garage, had severely corroded steel beams in critical condition following decades of leaks. The 32-year-old structure leaked water from the day it opened until it collapsed. Experts have said that multiple areas of the structure were on the brink of failure when the collapse occurred.

Waterproofing and design issues, as well as other factors, have come to light during the inquiry that began March 4.

'I Would Not Put My Life in It'

Numerous witnesses have testified that the rooftop garage deck lacked sufficient waterproofing. Several said they had recommended more extensive waterproofing to Nazarian over the years, but that he had repeatedly rejected the option as too expensive.

“Simply, I would not put my life in it, no," he testified. "I worked 42 years to gather some fund for my family. I’m not going to put everything in this building and…everything goes down the drain.”

Nazarian’s testimony, which began last Tuesday (July 22), had previously focused on his inability to raise funds needed to fix the mall’s roof, according to local reports, citing the inquiry.

Grant Plan Unsuccessful

For example, he testified about a grant plan hatched by a close friend, Alex Sennett, who set up a contracting company called Empire Roofing and Restoration. The specific type of grant was unclear from a review of the testimony.

“Sennett, who had never done any contracting, then signed six-figure contracts with Nazarian’s company, Eastwood Mall, to do roofing restoration work,” the National Post reported.

Algo Centre Mall collapse
NORR Report / Ontario Provincial Police

The mall in Elliot Lake, Ontario, collapsed in June 2012, killing two people.

Sennett then used the contracts to attempt to get a grant, which he then reportedly would have used to hire an actual contractor.

Nazarian also said that his mortgage with the Royal Bank was being threatened over the mall’s dilapidated condition, according to the report. The bank had been demanding immediate corrective action at a cost of about $3 million, he said.

While Sennett was trying to obtain a grant, Nazarian said, he paid Empire for work that was performed by another contractor, Glen Day, to make Empire look “active.” Empire then gave the money to Day, the report said.

Nazarian said his attorney later advised him to give up on Sennett’s plan. No grant was obtained.

Fire-Code Infractions

Moreover, during his fourth day of testimony Friday (July 26), Nazarian admitted that he failed for years to comply with fire regulations.

Due to the leaking roof, any new fireproofing would have washed away, he said.

“We were trying to cut corner, it was management decision,” he said, according to CTV News.

Buyer's Remorse

Nazarian, who immigrated to Canada from Iran in the early 1980s, bought the Algo Centre Mall in 2005 for $6.2 million.

He testified that he had not been advised of the mall's longstanding leakage problems at the time of purchase and contemplated legal action against the previous owner, Elliot Lake Retirement Living, according to various reports.

He said a local lawyer advised him against suing.

"It was my nightmare from the first day I bought the mall," said Nazarian.

Ontario Provincial Police continue to investigate the collapse to determine if any criminal charges should be brought against those involved, reports say.

   

Tagged categories: Building envelope; Building owners; Enforcement; Engineers; Fatalities; Parking Garages; Waterproofing

Comment from M. Halliwell, (7/30/2013, 11:04 AM)

If Robert Nazarian thought that fixing the mall was too expensive to do, just wait until he sees what the cost will be for his decision... you can be the lawyers for the families of those killed, the RCMP and Crown Prosecutor are all adding his comments to their files. Even if he manages to avoid prison, I'd say the odds are pretty good that the civil litigation will cost him far more than what he saved by not doing the work on the mall.


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