Richmond Updates

[officedweller]

Originally Posted by kja384

Duck Island, Home Of Richmond Night Market, Subject Of $90M Foreclosure

https://storeys.com/richmond-duck-island-jingon-foreclosure/

That's too bad. Juicy bit in the story:

"Lanyard is the lead lender on the Loan and carried out an underwriting process in relation to the Loan," they said in an August filing. "One of the critical criteria for Lanyard to approve and advance the loan was the fact that [the properties] are zoned as 'Light Industrial.' This is a preferred zoning classification that Lanyard considered very advantageous given the market demand for this land use type at the time of underwriting and the relative ease in serving such use type for development. Furthermore, Lanyard has a prohibition against advancing loans secured by 'hospitality' type property, including property zoned for hotels and casinos."

Despite this, the applying lenders say Jingon International, "at some point unknown to the Applicants" and without their consent, submitted a rezoning application to the City to rezone the lands to a different zoning district, which they say was then granted second and third readings on May 21.

The lenders say they did not know about the application until May 16 and asked the court for an injunction until November 30 that restricts the developer from progressing towards final adoption. It's unclear how the conflict will be resolved, but any sale of the properties will require approval by the Supreme Court.

https://storeys.com/richmond-duck-island-jingon-foreclosure/

[gaviscon]

Originally Posted by officedweller

That's too bad. Juicy bit in the story:


https://storeys.com/richmond-duck-island-jingon-foreclosure/

Wait so in plain English, the Lanyard, a creditor, gave a loan to Jingon. Jingon didn't meet the loan agreement so Lanyard initiated a foreclosure.
Jingon had until Nov 13 to halt the foreclosure by paying off their outstanding debt, but failed to do so.
So the Supreme court has allowed the sale of Duck Island to another developer, but Jingon's rezoning app is also awaiting final adoption by Richmond City

Do I have that right?

What's likely to happen?

[Spr0ckets]

Assuming they win the case, they'd still owe Lanyards the loan they're being sued for int he first place, and for which this development was ostensibly trying to get sold to pay off.

So assuming this still remains true, they'd still have to get financing from somewhere (I'm assuming they don't have a hidden stache of cash under some sofa somewhere they're waiting to pop out, otherwise Lanyards would have claimed it), and with an outstanding loan, I'm not exactly sure anyone (else) will be willing to get into bed with them to enable them to proceed with the development by offering them fresh financing.

I get the sense that a Supreme court win here for them (Jingon) will only simply be delaying the inevitable.

The development will likely still get sold off down the road and Lanyards will get their money one way or another.
I have to think that in the highly unlikely situation where they win the case, ....and then somehow get some financing to proceed with the development and get it built, Lanyards would still have a legitimate claim to any revenue or capital they might get from the finished project - by sales or otherwise - to pay off their own loan before Jingon can reap any rewards.

[gaviscon]

Originally Posted by Spr0ckets

Assuming they win the case, they'd still owe Lanyards the loan they're being sued for int he first place, and for which this development was ostensibly trying to get sold to pay off.

So assuming this still remains true, they'd still have to get financing from somewhere (I'm assuming they don't have a hidden stache of cash under some sofa somewhere they're waiting to pop out, otherwise Lanyards would have claimed it), and with an outstanding loan, I'm not exactly sure anyone (else) will be willing to get into bed with them to enable them to proceed with the development by offering them fresh financing.

I get the sense that a Supreme court win here for them (Jingon) will only simply be delaying the inevitable.

The development will likely still get sold off down the road and Lanyards will get their money one way or another.
I have to think that in the highly unlikely situation where they win the case, ....and then somehow get some financing to proceed with the development and get it built, Lanyards would still have a legitimate claim to any revenue or capital they might get from the finished project - by sales or otherwise - to pay off their own loan before Jingon can reap any rewards.

So I guess the best situation for us commoners and development enthusiasts is that Lanyards reaches an agreement with Jingon to proceed with the development but also claim a huge stake in the development..

I hope that happens cause I don't want to see this ugly patch of land stay as is

[officedweller]

But Lanyard only provided the original loan on the condition it was developed as light industrial space. Jingon breached the loan agreement by applying for the rezoning. Lanyard thinks that's too risky and wouldn't back it. Probably better overall if the rezoning goes ahead and the site is sold off to a 3rd party to pay off Lanyard's loan. The purchaser would get financing elsewhere for the rezoned uses.

[Spr0ckets]

Originally Posted by officedweller

But Lanyard only provided the original loan on the condition it was developed as light industrial space. Jingon breached the loan agreement by applying for the rezoning. Lanyard thinks that's too risky and wouldn't back it. Probably better overall if the rezoning goes ahead and the site is sold off to a 3rd party to pay off Lanyard's loan. The purchaser would get financing elsewhere for the rezoned uses.

This is what I would bet would happen and would be the most amenable outcome. But obviously mainly for Lanyard than for Jingon.

I can't blame Lanyard for not wanting to back a casino-related development (let's be honest, that's what this all boiled down to), because as you said, the risk involved is not for everyone. Furthermore, they've already been screwed over by Jingon by the breach in the loan agreement, so why would they believe they'll be true to their word in a new agreement to proceed with the redevelopment and then get their payment back through the revenue then.
It's better from their perspective to have the whole thing sold off and they get their money back now, than bank on a bet (no pun intended) that everything will all work out after a redevelopment goes through - even with loan interest payments.

I still can't see how Jingon get any financing anywhere after this even if they win the Supreme court case, and they would probably be forced to sell up eventually anyway.

The city doesn't care either way what gets built there as it will likely be something that will bring in employment, and employment and sales tax revenue so they'll probably see their way to rezoning it for the eventual buyer.

[whatnext]

And to think just in may they were trumpeting their plans and hooking up with a Dubai based entity.

This isn't Jingon International Development Group's first trip tp the controversy rodeo either.... SAF

Money and lawsuits: The early backers of a Canadian bank
Kathy Tomlinson
Nathan VanderKlippe International correspondent
Vancouver and Tianjin, china
Published December 19, 2016

One of the initial players hoping to open a new Canadian bank was a wealthy, politically connected Chinese citizen who was plagued for years by unproven accusations of fraud in his home country. A long-standing case against him was wrapping up just as the proponents of Wealth One Bank of Canada signalled to Ottawa that they wanted to start operating here.

Xu Chang'an's involvement in the bank proposal was obscured in the application for regulatory approval in 2013. The notice said Mr. Xu's wife, Gui Fang Zhu, who lives in Vancouver, would be one of "five significant shareholders." Records examined by The Globe and Mail show that Mr. Xu is the source of the couple's wealth.

Wealth One was approved as a new Canadian bank earlier this year. The company now says "neither Mr. Xu nor Ms. Zhu were ever shareholders," which suggests the couple withdrew their interest. The bank did not answer questions about when or why that happened. "At the time, there was interest in this individual [Ms. Zhu] participating in the bank, but she is not an investor," chief executive officer Charles Lambert said...

....In British Columbia, meanwhile, The Globe discovered another connection between Mr. Xu and the new Canadian bank. Until last year, he was in business with Wealth One director and co-founder Morris Chen. At the time the bank was seeking federal approval, Mr. Xu and Mr. Chen were applying to build a mega-hotel complex near Vancouver. Court records show that partnership fell apart when Mr. Xu got tired of waiting for government approvals.

In China, Mr. Xu served for many years as a member of the Tianjin City Chinese People's Political Consultative Conference, a think tank that advises Beijing. Although it has little formal power in the country's Communist Party, the CPPCC is an important forum for influence trading, and membership is coveted as a sign of status.

"He is a very powerful person," said Wang Qing, the founder and president of Tianyi Trade and Investment Ltd....

.... In 2011, as his case was winding through the legal process, Mr. Wang aired his grievances in public, asking an employee to help him publish and spread a post on local social media about his dispute with Mr. Xu over the shopping mall tower deal.

That same year, Mr. Xu moved $33.5-million of his company's money into the development partnership in Canada, The Globe discovered. Mr. Xu and Mr. Chen, now a Wealth One director, wanted to build a 4.4-million-square-foot hotel, retail and entertainment complex in an area of suburban Richmond, B.C., called Duck Island. In 2012, it was reported to be the largest-ever hotel deal to hit the Vancouver area. It hinged on approvals from all levels of government.

According to Elections BC, the company formed to carry out the project, Jingon International Development Group, donated $8,330 to the B.C. Liberals when it was trying to get land rezoned for the project. Mr. Xu's wife also contributed a total of $35,000 to the party, in 2013 and 2014....

https://www.theglobeandmail.com/news/nat...kers-of-a-canadian-bank/article33359955/

[gaviscon]

Originally Posted by Spr0ckets

This is what I would bet would happen and would be the most amenable outcome. But obviously mainly for Lanyard than for Jingon.

I can't blame Lanyard for not wanting to back a casino-related development (let's be honest, that's what this all boiled down to), because as you said, the risk involved is not for everyone. Furthermore, they've already been screwed over by Jingon by the breach in the loan agreement, so why would they believe they'll be true to their word in a new agreement to proceed with the redevelopment and then get their payment back through the revenue then.
It's better from their perspective to have the whole thing sold off and they get their money back now, than bank on a bet (no pun intended) that everything will all work out after a redevelopment goes through - even with loan interest payments.

I still can't see how Jingon get any financing anywhere after this even if they win the Supreme court case, and they would probably be forced to sell up eventually anyway.

The city doesn't care either way what gets built there as it will likely be something that will bring in employment, and employment and sales tax revenue so they'll probably see their way to rezoning it for the eventual buyer.

So wait, the rezoning is allowed to go ahead without a developer?

I'm a dumb STEM major who knows nothing about how this works

[Spr0ckets]

Originally Posted by gaviscon

So wait, the rezoning is allowed to go ahead without a developer?

I'm a dumb STEM major who knows nothing about how this works

The developer is obviously still attached as they're the ones applying for the rezoning.

I'm saying that the city doesn't care about the ongoings at the court nor the outcome of the trial as that aspect doesn't affect the application.
And as such, whatever the ruling, it won't affect their decision to rezone or not rezone (particularly based on anything the trial might reveal).
This assumes that Jingon wins the case and blocks a sale and decides to proceed with the rezoning application.

Obviously a court loss for Jingon would precipitate a sale to any new interested parties who can then choose to continue with the rezoning application at the city or scratch it altogether and start afresh with a new proposal.

In the meantime, I'm guessing the application is on hold until the court settles this case.

[officedweller]

Originally Posted by gaviscon

So wait, the rezoning is allowed to go ahead without a developer?

My guess is that - if a receiver / trustee is appointed - the receiver / trustee in bankruptcy would continue with the rezoning application because it is in progress and would add value to the property and the eventual potential sale price, even if it requires an expenditure of funds.

[whatnext]

Further to the 2016 article I posted above, readers might recall Wealth One bank has been in the news more recently:

Freeland imposes extraordinary measures to force out founding investors of Wealth One Bank with alleged ties to China
Robert Fife Ottawa Bureau Chief
Steven Chase Senior parliamentary reporter
Ottawa
Published September 2, 2023

Finance Minister Chrystia Freeland has instructed three of the founding investors of Wealth One Bank of Canada to divest their shares, and has also ordered the financial institution to comply with extraordinary national-security conditions intended to firewall its operations against the trio, who have faced federal scrutiny over alleged links to the Chinese government.

The three men, Toronto insurance executive Shenglin Xian, Vancouver property developer Morris Chen and Toronto grocery tycoon Yuangsheng Ou Yang, were told in April to sell their shares in the bank. Wealth One has also been ordered to sever all ties with the three, and to put in place stringent security measures to guard against money laundering and unauthorized sharing of sensitive information...

... The government’s warnings to the three shareholders stretch back at least as far as November, when Ms. Freeland sent a letter telling them they could be susceptible to Chinese government pressure. She also raised concerns that the bank might have engaged in money laundering. Shortly after receiving the letter, the three men resigned as directors of the bank, but did not divest their shares in Wealth One...

....Former finance and national-security figures said they were unaware of any other instances of ministerial power being used to oust a Canadian bank’s founders and force it to adopt security measures. “I have never heard of anything like this before, certainly not in my lifetime,” former deputy minister of finance Scott Clark said. “When the minister goes to that length there is something very concerning about that bank.”

Former CSIS director Richard Fadden, who also served as national-security adviser to Prime Minister Justin Trudeau and his predecessor Stephen Harper, said it is clear that extraordinary measures were put in place to “match an extraordinary set of circumstances.”...

https://www.theglobeandmail.com/politics/article-freeland-wealth-one-bank-shareholders/

[domusile]

Originally Posted by officedweller

My guess is that - if a receiver / trustee is appointed - the receiver / trustee in bankruptcy would continue with the rezoning application because it is in progress and would add value to the property and the eventual potential sale price, even if it requires an expenditure of funds.

Or it might not, if it deems the most valuable use for the lands to be industrial

[officedweller]

Originally Posted by domusile

Or it might not, if it deems the most valuable use for the lands to be industrial

True enough.

[gaviscon]

Google Maps shows Viewstar II is U/C?
Can someone confirm? I moved out to Calgary so can't check or update

[jollyburger]

Originally Posted by gaviscon

Google Maps shows Viewstar II is U/C?
Can someone confirm? I moved out to Calgary so can't check or update

There were doing some piling 7 months ago but two months ago the site seems dead.

• Video Link

[gaviscon]

Thanks. I'm guessing the office portion will not go ahead as planned...

[teriyaki]

Imagine if the office turns into a Hotel project instead. It'd be an absolute smashing location right next to the station. Vancouver region desperately needs more hotel capacity, they would have no issues filling the rooms I'd reckon.

[Lexus]

Originally Posted by jollyburger

There were doing some piling 7 months ago but two months ago the site seems dead.

• Video Link

From today:

Untitled by Lexus LX, on Flickr

And this is across the Street, I think Concord Pinnacle

Untitled by Lexus LX, on Flickr

Luxe Office Tower

I didn't realize that it's a strata office tower.
https://luxelansdowne.com/office/

Untitled by Lexus LX, on Flickr

Untitled by Lexus LX, on Flickr

[Vin]

Riding by the new Capstan Station, I feel that it will be opened to the public anytime soon. That neighbourhood already feels very urban now, and is still rapidly changing.

[Zepfancouver]

Originally Posted by Vin

Riding by the new Capstan Station, I feel that it will be opened to the public anytime soon. That neighbourhood already feels very urban now, and is still rapidly changing.

Working an office space at the International Trade Centre last week, only able to start work after office hours.
Started capturing the moment I got in, it was getting dark fast.
Nov 25, 2024 - 4:39pm


https://makeagif.com/i/YgBh0i