An empty site in Port Coquitlam that’s key to the redevelopment of the downtown core will change hands following a court-ordered sale.
And many trades that worked on the Quarry Rock Developments project at 2245 McAllister Ave. say they’re out thousands of dollars as a result.
This week, Northstar Development told the Tri-City News it would be holding a ground-breaking on Jan. 13, 2025, to launch its property plans.
The sale of 2245 McAllister Ave. to Northstar, as approved by the B.C. Supreme Court last month, will close on Jan. 22, 2025, for $11.6 million.
Last year, under Quarry Rock, the development got approvals from city council to add a floor to The Met, allowing the builder to increase to six storeys with 80 residential units on five levels, and commercial below.
Four commercial spaces were to be owned by the city to control tenancy, Mayor Brad West said on Dec. 11, noting the municipality did not lose money when Quarry Rock, a Burnaby company, went into receivership.
Other Quarry projects that went into receivership or foreclosure include:
- Richmond Hamilton Townhouses (23400–23500 Gates Ave., Richmond)
- The Willoughby (20335 70A Ave., Langley)
- The Graham (7010 204 Age. and 20443 70 Ave., Langley)
- The Gordon (7007–7033 204 St., Langley)
Karen Grommada, Port Coquitlam’s deputy CAO, said in a Dec. 12 email that the municipality looks “forward to Northstar completing the project.”
Currently, Northstar has a sales centre on Shaughnessy Street to market Porthaven, at Leigh Square by city hall; in that mixed-use development, the city also has an interest with the commercial units facing the plaza.
Quarry troubles
According to letters obtained by the Tri-City News, Quarry Rock alerted its general contractor, VC Management, and trades about its financial position last December — six months after it got the city OK to add the floor.
The company cited high inflation and interest rates in the sector.
“The McAllister Avenue project (The Met) is currently facing these same financial challenges,” it wrote Dec. 11, 2023, “having been significantly impacted by the combination of financial and housing market slowdowns and municipal delays, as well as materials and labour cost increases.”
It also noted a possible sale to a new owner in the spring of 2024 “with trades paid up upon closing” and a project restart at the end of 2024.
But by Feb. 12, Quarry was telling its trades about its lender, Canadian Western Bank, attempting to have a receiver designated by the courts.
The next month, another letter from Quarry, via acquisitions director Matthew K. Weber, informed trades that its proposed sale with Mosaic Seniors Care Society “will not be proceeding” after Mosaic didn’t pay the deposit, but it stated it was working with BC Builds through BC Housing.
Still, the BC Frontier Housing Society, a nonprofit group that had expressed interest in The Met, didn’t complete its offer to purchase.
By April, the bank had filed a notice and statement of the receiver under the Bankruptcy and Insolvency Act against Quarry Rock Developments.
In turn, the receiver hired Colliers to list the property, which its agents did for $18.5 million — more than the BC Assessment value of $15 million and the appraised price of $16.8 million.
According to court documents, four bids came in to buy 2245 McAllister Ave.:
- West Urban Development
- $8 million
- 1296709
- $8 million
- Northstar Acquisitions
- $9 million
- 1485991 BC Ltd.
- $13.2 million
The third offer was revised to $11.6 million following negotiations.
Mayor West told the Tri-City News he’s pleased a developer with PoCo roots (a partner grew up locally) and that’s now active in the city won the sale.
At this time, though, he is unsure if Northstar will retain the form and style for The Met as proposed by Quarry Rock Developments three years ago.
Out of pocket
As of Oct. 31, 2023, Quarry Rock’s assets were valued at $29.6 million, with $23 million owing to 57 creditors as of April 2, 2024. They include:
Secured creditors
- Canadian Western Bank (owed $12.7 million)
- VC Management (owed $5.5 million)
- Vancouver Ready Mix Inc. (owed $852,993)
- Coquitlam Concrete (owed $850,264)
- Capital Steel Inc. (owed $768,232)
Unsecured creditors
- Kaiser Landen Projects (owed $233,951)
- VC Management (owed $176,076)
- Atelier Pacific Architecture Inc. (owed $93,949)
- McNeill, Lalonde and Associates (owed $63,000)
- Blueridge Engineering (owed $23,993)
The City of Port Coquitlam is also listed as an unsecured credit, but with an “unknown” amount outstanding.
In the vesting order, released on Nov. 21, 2024, between Canadian Western Bank and Quarry Rock, the sale to Northstar was approved and debts cleared.
The trades that worked on The Met have since been forced to place liens against the property.
One tradesperson, who spoke on anonymity for fear of retribution, told the Tri-City News they only found out about the court action through online research; their sub-trade is also out for the completed underground work.
Quarry “just kind of screwed us over,” he said, "but we are just one of many.”
However, the tradesperson, who works for a family-owned business, acknowledged that the developer’s financial troubles “are a sign of the times."
"There are a lot of bankruptcies happening right now.”
Still, he questioned the city’s involvement as it has a stake in the project.
Mayor West contended the municipality is also disappointed as The Met was a priority in the downtown redevelopment and he denied allegations that the city was tying up the planning process.
A request for comment from VC Management was not returned.
The buildings at 2245 McAllister Ave. came down following a fire in October 2016.
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