Have you been wondering about the status of the Mission Hill development on Summit Drive and West Victoria Street? Here is an article published by the Kamloops Daily News. It was written by Cam Fortems on March 11th, 2011.
Kamloops developer Mike Rink has a July deadline to come up with millions in new financing to complete Mission Hill or the project will fall into the lender’s hands.
But that lender, Harbour Mortgage, may loan the money itself — keeping Rink out of bankruptcy and in control of his debt-ridden real estate empire.
The information is contained in court documents as part of a Companies Creditors Arrangement Act process. Rink’s New Future Group of companies was granted protection from creditors last year in a bid to restructure more than $100 million worth of debt.
An independent analysis found only two projects, Westbeach in the Shuswap and another resort project in Nelson, have prospects for making a profit. The others, including Mission Hill, will not be able to pay back all creditors even if they are completed.
Rink, as well as his lawyer, Chris Ramsay, could not be reached for comment Friday.
David McMillan, a city lawyer acting for contractors on another Rink project, said a creditors meeting is scheduled for March 16. A vote on the plan is structured so major lenders have weight. “This says to lien claimants we’re holding out the remote possibility of you getting paid versus certainty you won’t get paid — you pick.”
If the plan proceeds, Rink will get more financing to complete at least Mission Hill’s first building, now about 75 per cent complete. Liens will be cancelled and promissory notes that expire in three years will be issued. If there is money from real estate sales after all lenders are paid, promissory notes will then be honoured. “This allows the principals to carry on without the stigma of bankruptcy,” said McMillan. “If these proposals are passed it will allow people like Mike Rink to stave off bankruptcy.”
One of those contractors, Barb Gorrill, owner of Falcann Septic, said she doesn’t know if the company will ever receive the $7,000 owed to it. Rink owes more than $2.5 million alone to small contractors, who are unsecured and will be paid last, if at all. “We’ve done work for Mike before,” she said. “We knew going in the risk. (But) we’ve always gotten paid.” Gorrill said the loss hurts the small business but she said Rink, like any developer, had to take on risk. “Without guys willing to take risk, how would these developments ever get done?”
If financing is in place the Mission Hill building should be back under construction this summer. “It all depends if your view of the world is optimistic or not,” McMillan said of prospects that lenders and contractors will be paid. “For people who put time and labour and materials into it, they’re powerless to affect the outcome.”