The Hillview Park Condominium Corporation is seeking court approval for a more than $17.7 million loan from a development company to finish the rebuild project by 2020.
The plan moving forward and a copy of the Letter of Intent between the Corporation and Calmac Developments Ltd. was sent to property owners on Monday.
It states, if a judge approves the 25-year loan in court next month, substantial completion on the 214-unit Abasand complex should be done by March of next year.
Hillview resident Judit Kovacs tells Mix News this would be downright devastating for the owners.
“It’s going to basically put us in a bracket that’s no longer sustainable for most owners. By now, about 50 per cent of the owners are bankrupt.”
This is another fee owners would be asked to pay. According to emails sent to Mix News, back in 2018, the board approved a special assessment for $3.7 million. The owners were asked to contribute anywhere between $16,500 to $19,500.
The loan will cover more than $6.3 million in outsanding invoices owed to Calmac, along with the cost to finish the remediation work which is pegged at over $10.6 million.
According to the letter, during the completion of the project, the Condominium Corporation will make interest-only payments to Calmac, starting out at roughly $42,000 and will rise by $5,500 a month ending at about $97,000 per month at substantial completion.
“In order to ensure the Condominium Corporation can make these payments, we need owners to cooperate by paying their condo fees,” the letter reads.
Calmac will also be given a first ranking mortgage on units if the Condo Corp. has to foreclose on any properties that are in arrears. The development company will also recieve the money currently being held in trust accounts, if and when it’s released to the Board.
“To me, that is the biggest fear that this is going to end up basically with the developer scooping up all the properties and whoever is left in the end basically being a puppet of a corporation,” added Kovacs.
The notice says since the Corporation has entered into the Letter of Intent, staffing levels have increased to over 30 people on site with more than 60 expected in the next few weeks.
“The Board truly believes this plan in the only way in which the project can be completed. Without it, our home will not be rebuilt,” the letter adds.
Kovacs says the courts will decide on the loan on July 3.
The condo board couldn’t be reached for comment.
-With Files from Jaryn Vecchio