May 10, 2022
0876242 B.C. Ltd., Gateway Development Limited Partnership, the owners of a mixed commercial and industrial strata development located at 3333 Bridgeway Street, Vancouver, British Columbia, were placed in receivership on May 10, on application by Institutional Mortgage Capital Canada Inc., as general partner of IMC Limited Partnership, owed approximately $35.4 million. The development property was scheduled to complete in Spring 2020. Completion was delayed for over two years due to cost overruns, construction delays, and disputes between the companies and the general contractor, Prism Construction Ltd. ("Prism"). On March 15, 2022, Stuart Howard Architects Inc. issued a Certificate of Substantial Performance on the project and Certificate of Payment of $214,125 to be paid to Prism. That amount remains unpaid. The companies and Prism continued to have disputes despite the Certificate of Substantial Performance being issued due to, among other things, disagreement in the amount owing to Prism for work completed, various unapproved change orders, and Prism’s refusal to release occupancy documents required by the architect to request an occupancy inspection from the City of Vancouver. Prism issued a Notice of Suspension to stop work on the project on April 14, and various certificates of pending litigation have been filed on the property. The Bowra Group was appointed Receiver. Counsel is Bridgehouse Law for the companies, Lawson Lundell for Institutional Mortgage Capital Canada Inc., Jenkins Marzban Logan for Prism and DLA Piper for the Receiver.
By Dina Milivojevic