Toronto condo owners sue after 'tunnel' found under building

When owners of a downtown Toronto condo went searching for a foul smell wafting through their building, they inadvertently uncovered something much more mysterious a dark, dirt tunnel burrowed beneath their homes.

The bizarre discovery, made about a decade ago,has set off a chain of events, including a multi-million-dollar lawsuit that continues to play out today.

Residents of Century Lofts on 365 Dundas St. E.moved into the two-storeybuilding in the early 2000safter a developer refurbished the former factory, creating41 condo units. The building has been there since 1940, when it was filled with factory workers manufacturing surgical supplies, then later, lenses for Imperial Optical.

According to the allegations, about fouryears after moving in,theresidents began noticing a foul odour emanating from somewhere in the building. The smell got worse, andthe condo board hired contractors tofind the source of the stench.

Tunnel located behind a wall

Eventually the contractorstraced the smellto the condo's basement a relatively small, unused space accessible only by an exteriordoor at the rear of the building.When they peeled back a section of the basement wall, they found what condo owners describe in court documents as "the tunnel."

CBC News has learned that "the tunnel" isabout twometres highand about 20 metres long.It had been dug through the earth underneath the north-eastern portion of thebuilding.

In their original statement of claim, condo owners said it continued farther north past their building and right underneath Dundas Street. That claim has never been supported.

No one is sure who built the tunnel under their building,or why.

Condo owners want $3 million in damages

The condo owners allege they were not told about thetunnel's existence, nor was it marked on maintenance diagrams. They're now suing the developer Century Lofts Inc. EnbridgeGas,the architect, two engineers and the city forup to $3 million in damages.

The ownersclaim an engineer they hired believes the tunnelhas compromised the structural integrity of their homes. In the meantime, they've spent $100,000 installing lally postssteel columns in the tunnel to help support the structure.

The allegations in the lawsuit have not been proven in court.

Lawyer Paul Dineen, who representsCentury Lofts Inc.,says the tunnel is more like a "dug-out space," and says it was already there when the developer purchased the property. Part of it, he says, was used as a "service corridor" to run hydro, water and electrical lines for the condos.

Dineen told CBC News that citybuilding officials inspected the structure during construction and everything "was clear."

"The city allows people to live there. And has not put out any work orders against the place because they don't conceive there to be a problem," Dineen said.

Thelawsuit hascreated other types of problems for the condo owners, yet none of the owners, their condo board, their lawyer or a real estate agent currently selling a unit in the building would talk on the record when approached by CBC News.

Lawsuit could deter buyers,real estate agent says

Linda Pinizzotto, who hasbeen areal estate agent for 35 years and is now president of the Condo Owners' Association of Ontario, saidthe lawsuit could potentially deter buyersand lower property values.

"There are only 41 units, so the lawsuit costs have to be spread out across all 41 owners," she said.

"They either pay extra for it [the lawsuit] as a special assessment or they take it from a contingency fund if they have one."

Pinizzotto said that"unless someone really, really wants that location or unit, it might deter a buyer."

She also said buyers may have to negotiate with sellers to cover any future legal costs, especially if the lawsuit fails and condo owners are forced to pay the legal bills for the all parties they tried to sue.

The condo owners have now sealed the tunnel entrance with large steel doors. The case is set to go to trial in January 2018.

The city has declined to comment on the situation.