Quote:
Originally Posted by Joe
Saint John investors upset over condo delays
Last Updated: Wednesday, September 30, 2009 | 10:21 AM AT Comments3Recommend7CBC News
A developer's illustration shows the future Harbourfront Residences at Three Sisters in Saint John, N.B. (Courtesy of Harbourfront Residences)Delays at a luxury condominium complex overlooking Saint John harbour have some investors frustrated and trying to pull their money out of the project.
Saint John council approved the 125-suite Harbourfront Residences at Three Sisters complex a year ago but ground has still not been broken on the project.
The luxury condo complex was heavily advertised last year but construction has been delayed three times and the finish date has been pushed back a year to 2011.
Cathy and Ian Cooper have almost $40,000 tied up in the condo project and they say at least five others want out of the project that they were once so excited to invest in.
"That was a wonderful, exciting time for us," Cathy Cooper said.
"But it went from that to frustration and now regretting getting involved in this project at all."
Ian Cooper said their faith has been shaken in the project and its timeline is not compatible with their moving plans.
"If it's ready by January or February, good. But they haven't even started yet," Cooper said.
"They haven't even put a shovel in the ground! It's crazy."
Developer calling meeting
John Rocca, the project's developer, said in an email to CBC News that the setbacks have been spurred on by unexpected site problems and he has hit last-minute permit snags.
Rocca said all projects of this size face unexpected delays and he said most investors are satisfied.
The developer has called a meeting with investors next month to update them on the project's delays.
Mary Dobson has invested $27,000 in a condo and she was expecting to sell her house and move into the luxury suite next spring.
Dobson said she's not happy with Rocca's handling of the development project.
"He should have all his ducks in order before he started to sell this project," Dobson said.
"There's a lot of money on the line. He has a lot of people's money."
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I normally try to avoid commenting on our projects unless there is something serious.
This story was done when I was out of the Country. CBC e-mailed me for a comment on the reason for the delay.I left canada on September 15h and returned October 8th.
Before leaving we advised the condo owners that the start of construction would be delayed until next spring and gave them the supporting information as to the cause of the delay.
The delay is attributable to Council in 2008 not realizing that it needed to vote on 2 motions included in the City manager's report that we all assumed they had voted on when they moved the motion to approve the rezoning.This oversight was discovered by the City Solicitor's office three business days before the purchase date of the land and too late to put the item on the agenda for that Monday's Council meeting.
The need to wait two more weeks to get the motions approved closed the window of opportunity to start and complete the excavation of the undergroung parking before winter freeze up.
We invited buyers to either a 'one on one' meeting or a group meeting after my return to answer any other questions or concerns they had.Most buyers preferred a 'one on one' meeting.Only 8 buyers asked for a meeting and we have met with 7 of them already [including those that were on CBC] .They are as disappointed as we are with the delays but the overwheling majority of them understand that the delays are for reasons beyond our control.
There is a point I would like to clarify about the article itself. Mary Dobson's last comment: "....He has a lot of people's money", has led some people to speculate that delays may be financially good for us.Nothing could be further from the truth.
Delays cost us a lot of money as we need to pay interest on the millions we have invested so far in the project.
We don't have access to the Purchasers' money to help reduce our interest costs.
The Purchasers' money is help in trust by the Law firm of Gilbert McGloan Gillis at the bank of Montreal in an interest bearing account earning interest for the Purchasers not us.
The deposits are only released to us at the closing date.And The closing date is scheduled for 60 days after the buyers are given occupation of their condos.