Brampton UPtowns at Heart Lake | ?m | 4s | VANDYK

jbaa1 said:
Great! I’m happy at least that we have the safety net of getting our deposits back fully.

So to get this straight, if we choose not to proceed with the amendment… we will get our deposits back in full. We don’t have to fight, hire a lawyer, go through a whole circus? Simply receive a cheque in the amount of the deposit we paid, made out to our names?
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Thats what i would think as the deposits is moved over to KSV lawyers Osler..it indicated that info in this motion being confirmed now.
 
Deanfeb said:
Thats what i would think as the deposits is moved over to KSV lawyers Osler..it indicated that info in this motion being confirmed now.
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I hope so.

Some lawyers have told me likely we would have to fight for the deposit. Tarion insurance would be the saving grace. Class action lawsuit to fight for any outstanding amounts.
 
If the Heart Lake Project cannot be completed within the last occupancy date and buyers choose not to continue with their pre-sale contracts, the document indicates that the deposits made by homebuyers under the Pre-Sale Agreements of Purchase and Sale (APS) are covered by a Trisura surety policy. This means that any counterparties to disclaimed Pre-Sale APSs will receive a refund of their deposits.

In summary, buyers who do not wish to continue with their pre-sale contracts will have their deposits refunded through the Trisura surety policy.
 
The Heart Lake Project is a residential development in Brampton, Ontario, consisting of 200 stacked townhomes, of which 109 have been pre-sold.

Construction has not yet begun.



Sales Process:



A sales process was initiated by the Receiver, resulting in two bids. However, the offers were deemed unsatisfactory as they were insufficient to repay KingSett’s loans or other subordinated debts.



Engagement of Elm:



Elm was engaged to evaluate the feasibility of completing the Heart Lake Project. Following their assessment, Elm was selected as the construction manager and development manager.



Heart Lake CM Contract:

On October 7, 2024, the Receiver and Elm executed a CCDC 5A Construction Management Contract. Elm will manage the pre-construction, construction, and post-construction phases.

The estimated hard costs to complete the project are $63 million, with a target completion date of 26 months. Elm will be paid a fixed fee of $1.5 million plus reimbursement for actual expenses.

Heart Lake Construction Facility:

KingSett has committed to providing a construction financing facility of $120,325,000 at an interest rate of prime plus 5% per annum.

The loan matures 24 months after the first advance, with possible extensions.

Third Amended and Restated Receivership Order:

The Receiver seeks court approval for the Heart Lake CM Contract and the Heart Lake Construction Facility.

The Receiver also seeks authorization to borrow up to $120,325,000 to fund the project and grant a charge to secure the borrowed amounts.

These steps are aimed at facilitating the completion of the Heart Lake Project to maximize benefits for stakeholders, including secured lenders and pre-sale homebuyers.

The document provided does not contain information beyond October 10, 2024. For the latest updates on this case, you would need to check recent court filings or contact the legal representatives involved. The lawyers for the applicants are from Osler, Hoskin & Harcourt LLP, and their contact details are provided in the document:
 
15. The Ancillary Relief Order is a condition precedent to securing any further advances underthe Uptowns Construction Facility. The total loan amount provided for under the UptownsCommitment Letter is insufficient to cover the anticipated cost of completing the Uptowns Project,for which it is estimated that an additional $120,550,000 in financing will be required. It is unlikelythat a lender would be willing to provide the Uptowns Project with any further constructionfinancing at this time as such construction financing will generally not be available unless adeveloper has pre-sold 60-75% of units at “market” price, which requirement is not satisfied bythe current Pre-Sale APSs. In addition, the Uptowns Commitment Letter provides that KingSett isonly required to fund up to $6 million before the Receiver obtains an Order from the Court....
KSV will need minimum of 225 purchasers to agree with new prices before this project go forward or KINGSETT will not give loans..
 
Deanfeb said:
15. The Ancillary Relief Order is a condition precedent to securing any further advances underthe Uptowns Construction Facility. The total loan amount provided for under the UptownsCommitment Letter is insufficient to cover the anticipated cost of completing the Uptowns Project,for which it is estimated that an additional $120,550,000 in financing will be required. It is unlikelythat a lender would be willing to provide the Uptowns Project with any further constructionfinancing at this time as such construction financing will generally not be available unless adeveloper has pre-sold 60-75% of units at “market” price, which requirement is not satisfied bythe current Pre-Sale APSs. In addition, the Uptowns Commitment Letter provides that KingSett isonly required to fund up to $6 million before the Receiver obtains an Order from the Court....
KSV will need minimum of 225 purchasers to agree with new prices before this project go forward or KINGSETT will not give loans..
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I don't think they will get 225 purchasers to move forward. Who is willing to wait almost 10 years for a very small stacked town, that will most likely not be their "forever home"???
 
UptownGirl said:
I hope they return the deposits back quickly, but I have a feeling it might be a long drawn out process.....(I really hope I'm wrong)
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Terminations of Pre-Sale APSs and Deposits
Pursuant to the motion filed by the Receiver on October 7, 2024, the Receiver is also seeking the ability to
terminate and disclaim any Pre-Sale APSs for which an APS Amendment has not been executed prior to
the earlier of:
(i) the date that is thirty (30) days after a draft APS Amendment is sent to the Home Buyer,
or such later date as determined by the Receiver in its sole discretion; and
(ii) a Home Buyer advising the Receiver that it is not prepared to execute the APS
Amendment.

In the event that a Pre-Sale APS is terminated on the basis of such authority, the Receiver understands
that the Home Buyer will be entitled to a full refund of the deposit paid in connection with the Pre-Sale APS.
The Receiver understands that the Home Buyers’ deposits are insured by Tarion Warranty Corporation and
excess condominium deposit insurance provided to the Company by Trisura Guarantee Insurance
Company.

That highligted piece i do not like.. as per previous docs it said all deposits moved from SRLAW practice to KSV.. Hope we donot have to go thru TARION for our deposits
we need to email her askng this.
 
Just because KSV is representing KIngsett Mortgage they don't have to be unfair to APS holders, including Ostling Lawyers

1.APS holders are given 13% less than the current market for hanging on to this project without any recourse from 2017 for seven years.

2. Whereas KIngssett is securing more than 11.45% from the day of default for all these 8 years and until completion.

Ostling Lawyers are requested to submit this fact to the Honorable Justice, for compassionate consideration for APS holders
 
Singham said:
Just because KSV is representing KIngsett Mortgage they don't have to be unfair to APS holders, including Ostling Lawyers

1.APS holders are given 13% less than the current market for hanging on to this project without any recourse from 2017 for seven years.

2. Whereas KIngssett is securing more than 11.45% from the day of default for all these 8 years and until completion.

Ostling Lawyers are requested to submit this fact to the Honorable Justice, for compassionate consideration for APS holders
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Good point, who knows what today’s price points they will be using to give 13% less lol..for those people who sticking around! Looks like pricing is being by KSV/ELM, i emailed Meg for questions i have..
 
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