Here is an excerpt from a interesting article in today's Business In Vancouver which sheds light on a few things:
Jameson House Feud Nears Resolution
By Glen Korstrom
Two Vancouver developers are poised to reach a settlement after being locked in a court battle stemming from the troubled Jameson House project at West 838 Hastings Street.
Argo Ventures Inc. is seeking up to $8 million in damages from Bosa Properties Inc. for what it claims is negligent misrepresentation and conspiracy.
The Jameson House saga started in November 2008, when global economic turmoil pushed Jameson Developments Corp., which owned the mixed-use development site, into court protection under the Companies’ Creditors Arrangement Act (CCAA).
Bosa said that providing discounts was necessary to ensure that all the building’s pre-sale buyers were committed to closing their purchases
Bosa took over the development and completed the project in June.
Argo, which pumped $8 million in financing into Jameson Developments, agreed to terms under the CCAA whereby it would receive proceeds from the project if revenue exceeded $179 million. Argo and Bosa would then split all excess revenue up to $195 million. At that point, Argo would have recouped its $8 million.
The project’s eight floors of strata office space remain vacant largely because of a dispute about how much the floors are worth.
Argo CEO Jason Hong is upset that Bosa CEO Colin Bosa attempted to give pre-sale buyers substantial discounts when, according to Hong, no discounts were needed.
Hong told Business in Vancouver that the discounts would have reduced the project’s revenue to below $179 million and consumed his entire investment.
“They gave $24.5 million of discounts on pre-sales and wiped out our claim,” Hong said. “We have an issue with that. They shouldn’t do wanton discounts.”
But Bosa counters that the discounts were needed to keep buyers happy and to secure an agreement whereby they anted up larger deposits, averaging about 25% of the sale price.... a resolution to their dispute will likely be reached this week.
Details of the settlement have yet to be released. •
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