Two Coquitlam couples say they’ve lost their life savings after a developer went bankrupt late last year.
The business partners, who identified themselves as “Lily” and “Victor,” and their spouses, bought a one-storey commercial building at 2239 McAllister Ave. — directly west of Me-n-Ed’s Pizza in downtown Port Coquitlam — in 2003 as a retirement investment.
The building across from Port Coquitlam City Hall had five units in it, which they acquired together over the years.
“Business was good. It was solid,” Victor said. “There was lots of foot traffic, everyday.”
But, in 2016, a fire broke out at Martha’s Bakery, in one of the units, and destroyed their structure. The couples say they spent more than $400,000 to remediate their 6,000 sq. ft. site.
They wanted to rebuild, they said, but when city officials pressed them to construct higher as part of the municipality’s downtown revitalization plan, they talked to an architect and with developers, including Quarry Rock Development, a Burnaby-based company that was working with the City of Port Coquitlam to develop the adjacent property, at 2245 McAllister Ave., a city-owned parcel, for a mixed-use mid-rise called The Met.
By 2017, the two couples said they were in negotiation with Quarry Rock for a rebuild plan that required them to transfer their land as equity for Quarry Rock to secure bank loans.
Lily said the original plan, in 2018–19, was to construct a mixed mid-rise so the couples could get their commercial space back as soon as possible.
But, in an interview with the Tri-City News on Jan. 16 at 2239 McAllister Ave., the couples claimed the process got tied up with bureaucracy; the COVID-19 pandemic broke out; labour and material costs, as well as inflation, skyrocketed; and, last fall, Quarry Rock went belly up — leaving them, and many tradespeople including the general contractor, out of pocket.
On Jan. 22, 2025, as part of the B.C. Supreme Court bankruptcy proceedings, the sale of 2245 McAllister Ave. for $11.6 million will close, with the slate of creditors cleared for the new property owner: Northstar Development, which this week broke ground next to Leigh Square for its Porthaven building, of which the city is taking up the commercial space facing Leigh.
The couples are not listed on the vesting order and haven’t placed a lien on the property.
Now, they’re are seeking resolution and to be made whole.
As well, they are pointing the finger at city hall for delaying their project and prioritizing the downtown revitalization rather than their permits.
Last month, the Tri-City News also heard complaints from tradespeople who had worked on the 2245 McAllister Ave. site and also alleged processing hold-ups by the city and lack of communication.
“It’s not fair,” a spouse said. “The city took advantage of us.”
The couples said they recently reached out to Mayor Brad West, who advised them to hire legal counsel, but “we don’t have money for a lawyer now,” the spouse continued. “We are a small business that has been ruined. Our retirement savings are gone.”
In response, Karen Grommada, Port Coquitlam’s deputy CAO, told the Tri-City News the municipality sold 2245 McAllister Ave. to Quarry Rock and “is not aware of the details of the agreement that the former owners of the McAllister property had with the developer.”
And Northstar president Gord Wylie said his company knows about the “unfortunate circumstances surrounding the previous developer’s partnerships; however, any questions about this site prior to the court-ordered sale would be best directed to the receiver.”
“Northstar Development’s primary focus remains on serving the best interests of the Port Coquitlam community. With multiple projects in PoCo, including our recent acquisition of 2245 McAllister Ave., we remain deeply invested in the city’s future and look forward to contributing to the next chapter for the community.”
A request for comment was not returned by Quarry Rock.
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