City of Toronto countersuing St. Lawrence Market builders for $8.3M

· Toronto Sun

The St. Lawrence Market’s new north building cost millions of dollars more than it was budgeted for, and it might cost someone millions more yet.

City councillors will hear about duelling litigation stemming from the construction project, which was beset by years of delays and enormous cost overruns, when the city’s general government committee meets Monday.

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The new building, a sleek glassy structure on Front St., was handled by a joint venture between Atlas Corp. and Buttcon Limited, which the city refers to as “BAJV.”

While BAJV is suing for $81.5 million, City Hall is countering with a claim of its own for $8.3 million.

As well, Adamson Associates Architects, which designed the building and served as contract administrator, wants the city to fork over more money. Adamson spent more than three years beyond what was expected on the project because of delays.

The general government committee will accept a report on the matter, which includes confidential legal advice, on Monday. In an email, a City Hall representative reaffirmed the points made in that committee report but said further comments wouldn’t be provided with the matter before the courts.

While City Hall filed a statement of defence and countersuit in November 2025, its lawyers are only now telling the public about it.

‘Faulty logic’

In that document, the city alleges the delays were caused by the “actions (or) inactions of BAJV,” and by other forces beyond the city’s control. After BAJV gave the city its planned schedule for construction in late June 2019, the city alleges, bureaucrats told the builders to fix the “inconsistent and faulty logic connecting some activities, in addition to other deficiencies” in the proposal.

BAJV didn’t stick to the schedule and work fell behind, the city alleges. City Hall then hired “its own scheduling expert” to get construction back on track, and warned of “resulting damages” due to delays, the document alleges.

The city also alleges BAJV “clashed with significant subcontractors,” firing the group responsible for structural steel in August 2022 after it fell nine months behind on its work.

The city claims it is entitled to $1,500 for each day of the project’s delay. It also claims costs related to the missed deadline, notably having to operate St. Lawrence’s weekend farmers market and antique market on the Esplanade for three years longer than expected.

The building was largely complete by Nov. 30, 2024, roughly three years late, according to the report before the committee.

“In the months following this milestone, BAJV and numerous subcontractors commenced legal actions seeking recovery of additional costs,” primarily related to the project’s delays, the report says.

Bisceglia and Associates, the law firm listed on the city’s statement as defending BAJV, did not respond to the Toronto Sun ’s request for comment.

‘Errors, omissions’

Demolition on the previous – and much smaller – north building began in 2016, with construction on the new one starting in 2019, and expected to last two-and-a-half years. Even at that time the project had long been delayed, as City Council first approved the idea of a new building in 2002.

Operations at the building’s hallmark farmers market only began last spring.

In a document included with a 2024 report, the city’s chief financial officer warned the project was blowing past its already bulging budget and would not be done on time.

Issues allegedly included “errors and omissions from the prime architect” as well as trouble tied to COVID, new workplace standards, radio infrastructure and the “evolving” tech needs for the provincial courts being relocated to the market from Old City Hall.

In July 2024, City Council agreed to give Adamson an additional $40,000 to fix those issues, even as it was told spending on the project was expected to exceed its budget by $9.2 million.

That followed multimillion-dollar increases to the budget in 2021, 2019 and 2018. Since the February 2018 council meeting, the project cost grew from $91.5 million to $128 million, per the 2024 report.

A city website says while the St. Lawrence Market complex is a valuable historical site and has been a Toronto landmark “for more than 200 years,” the old north building was underused.

Adamson’s website says the building spans 120,000 sq. ft., and features a five-storey atrium and 250 parking spaces in its underground garage.

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