A Court of Queen’s Bench has cleared the way for resumption of work on a condominium complex in Red Deer.
Work on the project, which is located at 5301 Michener Ave., halted in May after Medican Construction, out of Medicine Hat, entered protection under the Companies Creditors Arrangement Act (CCAA) and court-appointed monitor RMS Richter took over operation of the company.
Under CCAA protection Medican and RMS Richter were given 60 days to come up with a plan that would return the ailing company to financial health.
The court ruled last week on a motion brought forth by Medican and its creditors that authorizes the company to enter into a new agreement with TEV Ventures Inc. that will allow construction of the condominium complex to resume in Red Deer.
“It’s been a bumpy ride,” said Ty Schneider, RMS Richter hired Medicine Hat business owner. “But we are finally starting to see some smooth road ahead.”
He added he hoped to have a deal in place that would allow the Michener Hill development to proceed a month ago, but negotiations proved difficult.
“Whenever there are so many players involved it’s not easy to get a quick deal,” said Schneider.
A deal, however, was eventually struck with TEV Ventures Inc. that met the court’s requirements that all stakeholders be treated equitably and that assets retain their value.
Last week, Justice K.M. Horner ruled that the motion presented by Medican allowed a project to go ahead that was satisfactory to all the creditors involved.
Under the terms of the agreement, a number of financial obligations will be discharged. Paragon Capital Corporation will be paid all monies owed, as will other creditors.
The deal also allows for all trades and suppliers to be paid money owned to them.
“What this agreement does is allow us to make good on our debts and get this project moving forward,” said Schneider. “It’s a good development and it would have been a shame to see it fall by the wayside.”
The condominium complex is in the beginning stages of construction. Currently, the concrete has been laid.
“The project manager is ready to proceed,” said Lindsay Perry, communication coordinator for Medican General Contractors. “He hopes to resume construction immediately.”
Schneider added the Michener Hill development is unique in that it consists of 248 condominiums built next to an Extendicare assisted living facility. The complex is designed to meet the needs of younger and older adults at different times in their lives.
“The parents can live on one side and their kids can live on the condo side, or if a spouse gets sick, the spouse can move over to the other side and they can visit all day long,” said Perry.
Janice Howard, Medican’s local sales consultant said that several buyers have bought units in Sierras Michener Hill with the expectation that their spouses will live in the Extendicare building.
Restricted to occupants aged 40 or older, the Medican condominium will contain suites ranging from 775 to 1,805 square feet.
The first phase will include a fitness centre, billiards room, library, hot tub and sauna.
Extendicare Canada plans a grand opening of its assisted living facility, which was constructed by Medican, on Sept. 27.