Niagara Falls hotel site placed into receivership

Stanley JV Inc., Valour Stanley Holdings Inc., Stanley Development Limited Partnership and Stanley Development GP Inc. were placed into receivership on September 1, 2026, after failing to repay secured lender Darko Vranich Holdings Inc. by an August 31 Court-imposed deadline. The proceedings centre on properties at 6663, 6683 and 6671 Stanley Avenue and 5640 and 5582 Dunn Street in Niagara Falls. Stanley JV is the registered owner and Stanley Development LP is identified as the beneficial owner. The site contains the approximately 60-room Rodeway Inn, with restaurants and other hotel amenities, but the financing documents contemplated a much larger redevelopment consisting of two 30-storey residential towers with 583 suites and a third 30-storey tower containing a 300-unit hotel and retail space.

Vranich agreed in February 2023 to lend the borrowers $15 million to refinance existing mortgages, with the loan advanced on March 29, 2023. The facility initially matured on April 29, 2024, but the borrowers failed to repay it. A May 23, 2024 extension pushed maturity to October 29, 2024 and required additional payments and security, obligations that Vranich says were also breached. A second extension dated December 13, 2024 moved the final maturity date to October 29, 2025.

The defaults had already triggered one receivership process. On August 22, 2025, Vranich obtained an order appointing msi Spergel Inc. as receiver if the borrowers failed to satisfy specified conditions. The borrowers cured those defaults and the appointment never became effective. They subsequently failed to repay the loan at its October 29, 2025 maturity, leaving $20,805,571.96 owing as of that date, with interest and charges continuing to accrue. Vranich delivered a demand the following month and commenced the current enforcement proceeding.

Property tax arrears were also mounting. According to Vranich, past-due taxes owing to the City of Niagara Falls rose from $370,473.97 on January 17, 2025 to $486,203.44 on June 13 and $641,873.05 by December 9. The lender argued that the continuing accrual was eroding its security.

Albert Gelman is the receiver. Counsel includes WeirFoulds for Darko Vranich Holdings, Blaney McMurtry for the receiver, and Vitulli Law Group and Ronald Allan of Ronald Allan Professional Corporation for the Stanley respondents.