Apple is reported to have told the developer of a Toronto mall and condo project with which it is involved that the tech giant may pull out of its deal, due to missed deadlines.
Mizrahi Developments has been constructing a “condominium” called The One, an 85-storey skyscraper that is set to include shopping areas and a flagship Apple store, since 2016.
However, The Globe and Mail has reported that Apple may exercise an option in its contract that would enable it to exit without any penalties, this option apparently coming into force if the developer misses certain deadlines.
Mizrahi Developments reportedly told the Cupertino firm in December 2020 that the project would be delayed to October 2021. This delay was supposedly due to the coronavirus crisis, as well as a local plumbers’ strike in 2019. In response to this news, however, Apple said it would terminate its lease.
The tech giant’s lease was for more than 15,000 square feet, with over 9,000 square feet being for retail on the ground floor of the building. As part of the agreement reached with Apple, Mizrahi Developments committed to covering Apple’s design costs, estimated to be $6.24 million Canadian ($4.87 million US).
Mizrahi Developments has denied missing deadlines, claiming that Apple no longer has the option to terminate the lease. The developer, which also said it had to wait for Apple to decide on a design for its storefront glass, is seeking a court order to prevent the iPhone maker from leaving.
