Minister backs deal
Cheveldayoff among supporters of Lake Placid plan
By
David Hutton, with files from by James Wood, The StarPhoenix, The StarPhoenix June 11, 2010 3:11 AM
The $5.2-million deal between city hall and the Lake Placid group for Saskatoon's most treasured piece of riverfront land is drawing support from a high-ranking government minister and some of the city's heaviest business hitters as the final council decision draws near.
City council has to decide Monday whether to enter into the sale agreement with Lake Placid Developments, in partnership with Victory Majors Investment Corp., for $5.8-million below the appraised market value of the land.
The developer plans to build a $200-million megaproject that includes a hotel, offices and street-level retail, a 700-stall underground parkade, a public plaza and a large condo tower overlooking the river.
The terms of the deal, released Thursday, say the developer has until a new deadline of Nov. 1 to come up with financing to bring the property back to grade level, estimated at between $50 million and $60 million.
An initial $250,000 deposit for the land has to be paid by Wednesday, if council OKs the deal Monday.
No work can proceed until the $50 million to $60 million is obtained to excavate, build the foundation and the underground parkade.
The remaining $5 million for the land does not have to be paid until that financing is secured and the deal is closed, the agreement says.
If financing isn't secured, the deposit is handed back to the developer.
A deal approved by city council to sell the land will allow the company to complete financing commitments, said Victory Majors' Karim Nasser.
"We need the land before anybody will say yes, 100 per cent," Nasser said. "Once the land title is in our hands, it should only take a couple of weeks."
Coun. Gord Wyant said the Nov. 1 deadline, which was negotiated between the city and the developer, is too lenient given the delays the project has already seen. The argument that the land sale is needed to get financing doesn't hold weight given that banks often approve financing on a conditional basis, he said.
"If (Lake Placid CEO Michael Lobsinger) can't get financing documents to us in a reasonable time, we have to seriously think about where we're going," Wyant said.
Lobsinger and several business groups circulated a letter soliciting support, a call that was met with dozens of letters to city hall, including one from Enterprise Minister Ken Cheveldayoff, who urged council to move forward on the sale, a rare move for a cabinet minister.
Cheveldayoff said Thursday it's entirely appropriate for him to throw the Saskatchewan Party government's weight behind Lake Placid Developments.
The Saskatchewan Party has railed against governments "picking winners and losers" among businesses, but Cheveldayoff said this is not a case of government picking sides.
"The decision was to go ahead with Lake Placid or to go back to the drawing board. It wasn't one company versus another company or anything like that," said the Saskatoon Silver Springs MLA.
"I want to see that development move forward and the discussion was whether to go back to opening it up to bids or to move forward with Lake Placid. I've had a chance to work on the project and I feel it's a very good one and I was just expressing support for it. And I think as minister of enterprise there's a role for me to do that."
Almost all of the 100 letters sent to council support the sale. Others urging council to pass the deal include a number of finance and real estate executives; the Royal Canadian Legion Branch 63, which has been promised a memorial on its former site; sports entrepreneur Al Anderson; former Mitchell's CEO Stu Irvine; United Cabs manager Scott Suppes; North Saskatoon Business Association director Keith Moen and North Ridge Development Corp.'s Wally Mah.
"I ask you, for what reason would you deny this application? We do not want to remain mired in the status quo of unrealized potential," wrote Mah.
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