Motels

Penticton, BC motels go into receivership despite developer wishes – Okanagan

The future of three motels near Skaha Lake in Penticton is uncertain as the Vancouver company that currently owns them no longer has time to repay a heavy outstanding debt.

The Sunny Beach, Waterfront and Beachside motels are located in the 3000 block of Parkview Street and will be foreclosed on January 8, 2022 if outstanding mortgage payments totaling approximately $ 5.5 million are not repaid.

According to a British Columbia Supreme Court ruling by Justice Karen Horsman, the Prospera Credit Union granted mortgages for motels to Portliving, a Vancouver-based development company and its subsidiaries in 2018 and 2019, but in fall 2020, the loans were in default.


Click to play video:







City of Penticton drops lawsuit over controversial shelter, proposes new location


City of Penticton drops lawsuit over controversial shelter, proposes new location

In letters dated November 10, 2020 and January 5, Prospera requested that default payments be made and for other information. They did not get an answer.

The story continues under the ad

Then, on March 10, Prospera demanded repayment of the loans that did not take place and the foreclosure process was initiated. It was in July when Prospera obtained a foreclosure order that would allow him to repossess the property if debts are not paid by next month.

The Bowra Group was appointed receiver on November 29 to oversee operations over concerns from Prospera that hotels were poorly managed, which could affect their value – a move Portliving opposed.

Read more:

Mixed reaction to multi-million dollar renovation plan for Skaha Lake Park in Penticton, BC

He hopes to secure funding that will allow them to develop the site into condominium residences and argued that the receivership of properties could scare off potential lenders. His own appraisals had also valued the properties at three times the $ 5 million owed. They also disputed the $ 200,000 cost of the receiver.

Nonetheless, Horsman said implementing a receiver was a smart move.


Click to play video:







Scathing report released after city of Penticton sold house of vulnerable woman to pay $ 10,000 tax bill


Scathing Report Released After City of Penticton Sells Home of Vulnerable Woman to Pay $ 10,000 Tax Bill – December 8, 2021

“I am not convinced by the evidence that the reputational impacts of the appointment of a receiver would significantly affect the respondents’ ability to refinance themselves, beyond the depreciation resulting from the foreclosure proceedings themselves,” said writes Horsman.

The story continues under the ad

“Any entity considering loaning the Respondents more than $ 5 million should be aware that the Nisi Orders have been granted and that the repayment period will expire in early January.”

She said that it is evident from these circumstances that the respondents are facing financial difficulties.

“The evidence does not establish that the appointment of a receiver at this stage would have a significant additional moderating effect on the respondents’ efforts to refinance,” wrote Horsman.

© 2021 Global News, a division of Corus Entertainment Inc.


Source link