Judge signs off on sale of Capital Pointe site

The sale of the former Capital Pointe site to a successful bidder can proceed with the court’s blessing.

In a handwritten order issued Wednesday, Justice Bev Klatt confirmed the “judicial sale of the property” to Royalty Developments Ltd., a day after hearing arguments from parties behind three different offers. Also in attendance at Regina Court of Queen’s Bench on Tuesday were lawyers for two other would-be purchasers: previous bidder JYR Investment Management Inc./magnetic Capital Group and relative newcomer to the table Smith Street Lands Ltd.

The judge indicated a more detailed decision is to come.

It was previously reported that Royalty’s offer on the site at the corner of Albert Street and Victoria Avenue was accepted by the selling agent as part of a claim of mortgage action filed by a creditor.

Grant Richards, representing KEB Hana Bank — which holds the highest-ranked mortgage on the property — asked that Royalty’s current, accepted offer be confirmed by the court.

Richards had argued Tuesday that Jyr/magnetic was already turned down and that Smith Street Lands came late to the table. He said allowing their applications now, given an accepted offer already exists, would “render the judicial process a shambles.”

Each of the other two counsel argued their clients would like the opportunity to revisit the matter. Jyr/magnetic lawyer Dave Brundige contended it was different from a regular real estate deal since it was court-sanctioned, so the best offer should be approved.

On behalf of Smith Street Lands, lawyer Karolee Zawislak argued much the same, stating her client’s offer might have come later than the others, but was still within the time limit.

The buyer of the property will have to deal in some fashion with approximately $2.3 million owing on the property. Much of that amount comes from the City of Regina’s cost of filling in the site’s excavation pit this fall after the project, which was supposed to see a hotel and a condo never moved beyond the excavation stage for several years.

The City of Regina had asked to be added as a party to the court matter when it was heard Tuesday.