October 6, 2020
Konnect Brookside Villas Limited Partnership and Konnect Brookside Holdings Ltd., developers involved in the development and construction of a three-phase 69 unit townhome project on leased property located within the self-governed lands of the Westbank First Nation, were placed in receivership on October 6 on application by Canadian Western Bank ("CWB"), owed approximately $9.3 million. CWB had provided the companies with a construction mortgage facility for financing Phase 1 of the project, consisting of 23 townhomes. However, the construction project — which began in 2018 — has been plagued by a host of problems, including being behind schedule, cost overruns, builders' liens being registered against the property, and a dispute between the developer and its general contractor. Although the companies are unable to meet the requirements and payments of the loan, CWB is still willing to fund the completion of Phase 1 of the project. Grant Thornton was appointed receiver. Counsel is Owen Bird Law for the applicant and Fasken for the receiver.