Hockey Dorm hits financial hurdle

hoot
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Hockey Dorm hits financial hurdle

Post by hoot »

Just read the that the sale of the city land has not in fact gone through, and yet construction is still going ahead. Apparently the construction company is having trouble raising the cash.

A spokesperson for Citation ventures confirmed the 150 bed dorm will not be finished on time. Apparently, according to the spokesperson many of the trades have still not been paid for work completed, but he assured everyone they will receive the money due.

As for Dan Ashton he refused to comment on the issue.
Except to say, "the offer on the property has failed"
Question remains ,why were permits issued for construction on a property still owned by the City?

Citation ventures advised, the investors are now looking to "revise and ramp up the project" whatever that means.

is this a case of council not exercsing due dillegence in the handling of this matter? Surely the financials of Citation Ventures were checked before the go ahead was given to even start construction on land they didn't even own !. What a mess.
twobits
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Re: Hockey Dorm hits financial hurdle

Post by twobits »

All it takes is written permission from the owner (city) for construction to be permittable. The city has received a 50k non refundable deposit as well. I doubt very much this will collapse. And if it does, there would be many folks quite happy so what is the problem?
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Giants Head
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Re: Hockey Dorm hits financial hurdle

Post by Giants Head »

I bet that the contractors who have done all the work so far would sure like to get paid.
stewie007
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Re: Hockey Dorm hits financial hurdle

Post by stewie007 »

Take this for what it is but I have heard that the permits were not given and that a stop order was issued by the citys inspector. A couple hours later the inspector had a visit from someone in city hall and was told to recind the stop work order....still no permits given. Could just be hearsay. Anyone else heard anything about this?

While on the topic. While the city looks for a couple million to cut, this rammed through deal was given a no development cost and property tax free for 5 years?? As well as the new theater?? So, there is 1.2 million in development costs and who knows how much in taxes. I can understand cutting them a break on one but both development and taxes?? Ridiculous. And the whole 'they wouldn't come here if they didn't cut them the deal' just doesn't hold water. The theater has been in the works for years and was going to happen regardless and where else would the 'hockey school dorms' go?? Summerland?? Three more years of this 'leadership'. Let's hope the voters get it right next time.
hoot
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Re: Hockey Dorm hits financial hurdle

Post by hoot »

And if it does, there would be many folks quite happy so what is the problem?


None at all , I merely posted the story as a matter for discussion .

Of course some may say council may have dropped the ball , in their apparent undue haste to sell the property at half price to a company whose financial backing was shaky at best .

What is it they say ...fools rush in where angels fear to tread?>
ToddT
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Re: Hockey Dorm hits financial hurdle

Post by ToddT »

Kind of interesting to point out, I was at a building department open luncheon today at city hall, and halfway through Ashton popped his head in to say "hi" and that he was sorry he was late because he "had just gotten out of a recorded interview regarding a certain property on Eckhardt Ave. that had some issues..."

Had a nice little smirk on his face too...
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Tero
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Re: Hockey Dorm hits financial hurdle

Post by Tero »

Fishy and backhanded from the start... and I'll bet we haven't seen the end of it yet. Also, according to today's herald, this is the SECOND closing date that's come and gone.

I know there was a 50 k deposit down (a drop in the bucket on the price) but all of the houses I've ever bought, I have not been able to start renovating until the CLOSING HAD HAPPENED!!!

And they cut down the beautiful tree. :-((((( The huge old tree. Can't put that back up if the deal falls through,can you?
Madtaxi
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Re: Hockey Dorm hits financial hurdle

Post by Madtaxi »

Giants Head wrote:I bet that the contractors who have done all the work so far would sure like to get paid.


Not a problem the contractor will just put a lien on the property and the taxpayers of Penticton will take the hit.
Madtaxi
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Re: Hockey Dorm hits financial hurdle

Post by Madtaxi »

I can't believe the people of Penticton voted these people back in. Wake the %$$^% up.
spacecadet
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Re: Hockey Dorm hits financial hurdle

Post by spacecadet »

I had also heard that NO permits had been issued for the property - actually only ONE had been applied for - for the earthmoving portion. Now, that begs the question, who in their right mind allows work of that magnitude to start on their property when the sale has NOT been completed? How about letting work go ahead with all the local subtrades left holding the bag for the work that is done? Who is responsible or held liable if something happened on the worksite? What about the Life and Safety Bylaw? What happened if that crane had come crashing down on Eckhardt Ave? Is that not being enforced? Actually, I heard that it was enforced with Stop Work Orders issued and then a visit from the Mayor had them all removed.

Who had the RIGHT to cut down the willow tree? If the property is still owned by the City, then the Contractor had NO right to cut down the tree, right?

And according to Mr. Miller, of the Penticton Herald, it's now the second floor of City Hall (who are known for being unfriendly) that has been a part of the problem - holding things up? How can that be - when NO permits had even applied for - except to move the earth? Just go ahead and do what you want on the say so of the Mayor? I guess that's how you do business in the REAL world with REAL businesspeople - handshake is good enough - don't need permits - just go ahead - do what you want - we TRUST you!

I think we need to plant the blame on the FIRST floor of City Hall! This deal has been fishy right from the start. And we have businesspeople on Council that should know better, right? They have lawyers that look after all this, right? And the paperwork and documentation of a sale and the financial backing would have all been in place, right?

And now, fellow taxpayers of Penticton, what do you think the value of the land is now? Certainly not $925,000.00 - more like $300,000.00 with the state it's in now? And how many liens do you think are going to be slapped on that property now? And how long is that going to tie things up? Ever dealt with the courts?

If this had been handled in a more "business-like" manner and the cart hadn't been put before the horse, and the City had made sure that their ducks were in a row, maybe, just maybe, we wouldn't be in this pickle.

But, who am I? Not an accountant or a lawyer, or a realtor - just a homeowner, who certainly couldn't have gotten away with this when I bought my house! never mind a deal close to a million dollars!
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Tero
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Re: Hockey Dorm hits financial hurdle

Post by Tero »

I had also heard that NO permits had been issued for the property - actually only ONE had been applied for - for the earthmoving portion. Now, that begs the question, who in their right mind allows work of that magnitude to start on their property when the sale has NOT been completed? How about letting work go ahead with all the local subtrades left holding the bag for the work that is done? Who is responsible or held liable if something happened on the worksite? What about the Life and Safety Bylaw? What happened if that crane had come crashing down on Eckhardt Ave? Is that not being enforced? Actually, I heard that it was enforced with Stop Work Orders issued and then a visit from the Mayor had them all removed.

Who had the RIGHT to cut down the willow tree? If the property is still owned by the City, then the Contractor had NO right to cut down the tree, right?

And according to Mr. Miller, of the Penticton Herald, it's now the second floor of City Hall (who are known for being unfriendly) that has been a part of the problem - holding things up? How can that be - when NO permits had even applied for - except to move the earth? Just go ahead and do what you want on the say so of the Mayor? I guess that's how you do business in the REAL world with REAL businesspeople - handshake is good enough - don't need permits - just go ahead - do what you want - we TRUST you!

I think we need to plant the blame on the FIRST floor of City Hall! This deal has been fishy right from the start. And we have businesspeople on Council that should know better, right? They have lawyers that look after all this, right? And the paperwork and documentation of a sale and the financial backing would have all been in place, right?

And now, fellow taxpayers of Penticton, what do you think the value of the land is now? Certainly not $925,000.00 - more like $300,000.00 with the state it's in now? And how many liens do you think are going to be slapped on that property now? And how long is that going to tie things up? Ever dealt with the courts?

If this had been handled in a more "business-like" manner and the cart hadn't been put before the horse, and the City had made sure that their ducks were in a row, maybe, just maybe, we wouldn't be in this pickle.

But, who am I? Not an accountant or a lawyer, or a realtor - just a homeowner, who certainly couldn't have gotten away with this when I bought my house! never mind a deal close to a million dollars![/quote] [quote="spacecadet"]


:rate10:
could not agree more!!! Great post.
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Sturdyhart
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Re: Hockey Dorm hits financial hurdle

Post by Sturdyhart »

This fiasco needs some kind of proper response from city hall. This thing smelled bad from the beginning! How long are we all going to put up with the crap that this city is doling out to us. Wow!
twobits
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Re: Hockey Dorm hits financial hurdle

Post by twobits »

spacecadet wrote:I had also heard that NO permits had been issued for the property - actually only ONE had been applied for - for the earthmoving portion. Now, that begs the question, who in their right mind allows work of that magnitude to start on their property when the sale has NOT been completed? How about letting work go ahead with all the local subtrades left holding the bag for the work that is done? Who is responsible or held liable if something happened on the worksite? What about the Life and Safety Bylaw? What happened if that crane had come crashing down on Eckhardt Ave? Is that not being enforced? Actually, I heard that it was enforced with Stop Work Orders issued and then a visit from the Mayor had them all removed.

Who had the RIGHT to cut down the willow tree? If the property is still owned by the City, then the Contractor had NO right to cut down the tree, right?

And according to Mr. Miller, of the Penticton Herald, it's now the second floor of City Hall (who are known for being unfriendly) that has been a part of the problem - holding things up? How can that be - when NO permits had even applied for - except to move the earth? Just go ahead and do what you want on the say so of the Mayor? I guess that's how you do business in the REAL world with REAL businesspeople - handshake is good enough - don't need permits - just go ahead - do what you want - we TRUST you!

I think we need to plant the blame on the FIRST floor of City Hall! This deal has been fishy right from the start. And we have businesspeople on Council that should know better, right? They have lawyers that look after all this, right? And the paperwork and documentation of a sale and the financial backing would have all been in place, right?

And now, fellow taxpayers of Penticton, what do you think the value of the land is now? Certainly not $925,000.00 - more like $300,000.00 with the state it's in now? And how many liens do you think are going to be slapped on that property now? And how long is that going to tie things up? Ever dealt with the courts?

If this had been handled in a more "business-like" manner and the cart hadn't been put before the horse, and the City had made sure that their ducks were in a row, maybe, just maybe, we wouldn't be in this pickle.

But, who am I? Not an accountant or a lawyer, or a realtor - just a homeowner, who certainly couldn't have gotten away with this when I bought my house! never mind a deal close to a million dollars!


This post is so full of mistruths, errors, and lack of knowledge that I won't even begin to address them all. It would take two pages. There's been a snag to be sure and it may very well collapse entirely but the city is fully covered from any liability. And to suggest the property value has now degraded to 300k......well that's just plain silly. If anything it would fetch a higher price now with the media exposure.
Do not argue with an idiot. He will drag you down to his level and beat you with experience.

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hoot
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Re: Hockey Dorm hits financial hurdle

Post by hoot »

This post is so full of mistruths, errors, and lack of knowledge that I won't even begin to address them all. It would take two pages


Love to read them.

Fact remains our mayor and council did not exercise due diligence in the handling of this project. They were too eager to (a) give the land away at a loss to the city and (b) too eager to accommodate the developer by granting permission to start construction on land the developer hadn't even paid for, that They failed to run checks on the financial backing of the project and now we have this mess.

Our council acted like a bunch of country rubes with the exception of Litke, who was shouted down by Pierce, Ashton Sentes et al at the council meeting approving the sale of the land..

I suggest A citizen's review committee should be struck to study how this whole matter was handled.
Any elected official found negligent or incompetent in their dealings with this affair should be asked to resign.

PS. The Mayor announced he and council are getting tough on unsightly lots in the city , maybe they should start with the 900 block Eckhardt??
twobits
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Re: Hockey Dorm hits financial hurdle

Post by twobits »

hoot wrote:
This post is so full of mistruths, errors, and lack of knowledge that I won't even begin to address them all. It would take two pages


Love to read them.

Fact remains our mayor and council did not exercise due diligence in the handling of this project. They were too eager to (a) give the land away at a loss to the city andTwo separate appraisals were done. Would three or four have satisfied you? Probably not. (b) too eager to accommodate the developer by granting permission to start construction on land the developer hadn't even paid for earthworks only, all liabilities covered, 50k non refundable deposit, that They failed to run checks on the financial backing of the project and now we have this mess. That's not their job.....just as when you sell a home it is not your job to check the buyers financial backing.

Our council acted like a bunch of country rubes with the exception of Litke, who was shouted down by Pierce, Ashton Sentes et al at the council meeting approving the sale of the land.. Because he was spewing nonsense.....yet again

I suggest A citizen's review committee should be struck to study how this whole matter was handled. By whom....experts like you?[/b] Any elected official found negligent or incompetent in their dealings with this affair should be asked to resign. The dealings in these matters are conducted by unelected staff. [b]Council is only there for direction. Besides, at worst this is a collapsed real estate deal and the city will lose nothing. I think you are trying to make something from nothing just because the re-elected incumbants supported a prison. Mud slinging sour grapes.
Do not argue with an idiot. He will drag you down to his level and beat you with experience.

The problem with the gene pool is that there is no lifeguard.

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