Lake Placid Developments CEO Michael Lobsinger told Saskatoon's city council last night that his company will soon have financing in place and still wants to move forward with the development of their upscale megaproject at River Landing. But, the company still does not have the cash in hand to move forward, council has been told.
"We remain enthusiastic and committed to entire River Landing project," Lobsinger said.
The company's bid to save the project sets up a compelling story for next week, since a decision is expected on how to proceed on the piece of land is expected at the city's executive meeting Monday, Nov. 23, where Lobsinger will also speak.
There, administration will give council several options for the site. Lobsinger said that he hopes to have a cheque for council by that time to give them certainty the company can build. While the company could have made the $4.5 million payment on October 30, they did not want to proceed until $200 million in credit is available to move forward.
New U.S. banking rules prevented Lake Placid from getting the money to Canada. It has now cleared the scrutiny of U.S. financing agencies, including the Homeland Security office, the Treasury Department, and the U.S. embassy, Lobsinger said.
The hurdles were put in place when new rules governing the movement of money came into effect in the United States, he said. Lake Placid is now back in the game to build the private-sector anchor of the long-awaited development project in the city's south downtown -- a $250-million-plus condo-hotel-office megaproject that would serve as the anchor to what many have called a city-defining place.
Lobsinger, who arrived early and sat in the front row for most of the long meeting before speaking around 10 p.m., told council the funding for the project will be in the company's hands "some time this week."
He filed the transfer approval with the City of Saskatoon's administration, he said.
"That's a major step forward in our pursuit of this," he said.
If the money isn't spent in Saskatoon, it will be spent elsewhere on property development in western Canada because that's the only constraints his financers have given him, he said. He admitted that the waiting game has been frustrating for city councillors and administration.
Councillor Tiffany Paulsen said that the missed deadlines have "lessened the credibility of the project," but it would be difficult to ignore someone willing to invest $200 million.
Lobsinger's address to council Monday night is the latest in an exceptional series of events with the site that have largely been caused by the company's inability to secure financing to move forward with construction due to the international market collapse. A missed deadline in January to pay the remaining $4.5 million it owed for the land caused the company to begin paying interest.
Another deadline was missed in August. At that time, council granted an extension to October 30, but the company missed the deadline. In August, council and the mayor said if payment by wasn't made it was the end of the line, causing many to speculate that the project was dead at the end of October.
Lake Placid spent $7 million planning the development, Lobsinger said. They have had to return deposits to all those who put them down on condominium units, which sold "exceptionally." He said he feels they could sell the 202 units out in two to three months.
Lake Placid Developments CEO Michael Lobsinger told Saskatoon's city council last night that his company will soon have financing in place and still wants to move forward with the development of their upscale megaproject at River Landing. But, the company still does not have the cash in hand to move forward, council has been told.
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