Bank Street evictions spark questions about developer accountability

A boarded-up stretch of Bank Street between Nepean and Lisgar stands empty after developers evicted roughly two dozen tenants in 2023, two years after purchasing the four heritage buildings for $14.5 million.

Wallack's Art Supplies and Framing had occupied the south corner for 50 years. Studio artists above had exhibited at the National Gallery of Canada. Some tenants had lived there for decades. When evictions came—one tenant, John Bergeron, said the sheriff gave him 10 minutes to leave in January—many faced the risk of homelessness.

Now the buildings are listed under power of sale, meaning a lender is seeking bids following a mortgage default. Court filings reviewed by the Ottawa Citizen reveal that the developers who bought the block were defending against creditors even as they actively evicted tenants with plans to demolish and build a nine-storey mixed-use complex with rental above and commercial below.

The development group—associated with Smart Living Properties and longtime Ottawa businessmen Tamer Abaza and Rakan Abu Shaar—has faced lawsuits seeking to recover more than $65 million across numerous private and institutional creditors. The claims contain allegations that are not proven.

The timeline raises questions about whether the City of Ottawa has—or ought to have—the power to assess the financial capacity of developers seeking tenant displacement ahead of major renovations or demolitions. City lawyers and advocates say the current framework leaves vulnerable tenants at risk when developers face financial distress.