Developer tries to save apartment project
Sale of unfinished building delayed
By STEVE PROCTOR Business Editor
Tue. Nov 6 - 6:32 AM
The head of a Dartmouth development company says he will finish construction of a stalled South Street apartment complex if he can reach a deal with the trade unions whose members were working on the building.
The unfinished 10-storey building at 5620 South St. was supposed to be auctioned off Monday as part of a foreclosure, but just as the sale was set to begin in the Law Courts Building lobby, a sheriff announced the sale would be delayed until Nov. 16. About 50 people, including bankers and high-profile developers, had gathered in anticipation of the auction.
Construction of the building was halted two weeks ago after Banc Properties of Dartmouth initiated foreclosure through the courts to recover $3.64 million it was owed on a second mortgage. Since that time, 20 companies, including construction firms and building material suppliers, have placed liens against the property totalling almost $4 million.
Besim Halef, head of Banc Properties, said Monday he has offered to pay the workers 25 cent on the dollar of the money they’re owed. If they accept that, he said, he will take over the $10.5-million first mortgage and finish the building himself. About $4 million worth of further work is required.
Steve Tsimiklis Holdings Ltd. and its principal, Steve Tsimiklis, were developing the $15-million building when the company ran into financial problems
Liens against properties normally disappear in a foreclosure sale.
Halifax developer Jim Spatz, chairman of Southwest Properties, was on hand for the auction Monday. He said he has been negotiating with Mr. Halef for the past week and will use the delay to continue those discussions.
He said the large crowd does not necessarily mean there was going to be a lot of bidding. He remembers a decade ago when the half-completed spa project in Blandford went up for auction and the courthouse in Bridgewater was packed with people. As it turned out, Mr. Spatz was the lone bidder.
Mr. Halef said if he can’t formalize a deal with the trades, the auction will go forward on Nov. 16.
(
sproctor@herald.ca)