Fortress says receivership won’t halt Union Waterfront project
The company behind the controversial Union Waterfront condominium development in Port Dalhousie maintains it’s still going ahead with its plans despite the project going into receivership.
Fortress Real Developments said in an email Tuesday that a court order appointing a receiver to the St. Catharines project has no impact on it.
“Fortress’ focus at this time will be working alongside the receiver to guide the project through the approvals process,” the company said.
“All parties strongly believe in the proposed project and are committed to seeing it through to a successful conclusion.”
A Superior Court of Justice order in Hamilton Friday appointed msi Spergel Inc. as receiver for Union Waterfront Inc. to manage the interests of mortgagee FirstOntario Credit Union.
The order empowers the receiver to take possession of, manage and operate the Union Waterfront project.
Fortress representatives declined to do a phone interview, citing a corporate media policy in which questions must be emailed.
“A successful conclusion to the Union Waterfront project will be a massive boon to Port Dalhousie, its residents and the integrity of the heritage properties on the site,” the company said in an email.
“The team behind this project hopes to continue to have the support of all local stakeholders going forward.”
Mayor Walter Sendzik said the city was notified that a receiver is in place and is awaiting the outcome of the receivership process. He said the city is not listed as a creditor and there is no risk to the corporation.
“It’s unfortunate and it’s frustrating as a community to be in a position where we have to wait yet again to see what the outcome will be for a project that has been long overdue,” Sendzik said, adding it’s ultimately private property and a business matter between many parties involved in the project.
The silver lining, he said, is that
the Rankin condo project at the Royal Canadian Legion building in Port Dalhousie was recently approved by council.
“That does give developers more confidence that with the right project in the community, as a city we can get things moving.”
The high-profile property in the heart of Port Dalhousie’s core has been the source of multiple controversial development proposals by various owners over the past 14 years.
The 0.6 hectares of land is bordered by Lock Street, Lakeport Road and Hogan’s Alley.
Fortress originally became involved as a financer on a previous proposal called Port Place — a 17-storey tower with a maximum 80 apartments, a hotel and theatre. It acquired the site in January 2015 and went back to the drawing board.
The current proposal is a 14storey, mixed use, terraced building with 220 apartment units that was the subject of a well-attended public meeting in December.
City staff have not yet made a recommendation to city council on whether the application should be approved.
Jim Riddell, director of planning and building services, said the proposal is under review and city staff are continuing to have meetings about it this week.
The matter is also in front of the Local Planning Appeal Tribunal, formerly the Ontario Municipal Board.
Fortress filed an appeal with the Ontario Municipal Board on Dec. 11 because the municipality hadn’t made a decision about its application after 180 days. The company said at the time the move was done out of an abundance of caution because the province was about to get rid of the OMB to form the LPAT, but would grandfather in any appeals received beforehand.
No one from the receiver company Spergel was available for comment Tuesday.
Port Dalhousie councillors are hoping the receivership news could result in a different project on the site.
Coun. Carlos Garcia said if the receiver decides to sell the property, his hope is that it’s purchased by someone local who will build a project that “fits in” and is “compatible.”
The city’s newly-adopted secondary plan for Port Dalhousie calls for three storeys at Lock Street stepping back to up to six storeys, which Garcia said would fit in better.
“My hope is this is positive in the end,” he said. “And that we end up with a project that works, because I always had a major concern that 220 condos and the attending vehicles would be a disaster in terms of traffic and parking.”
Fellow ward councillor Bruce Williamson said he also hopes to see something built that is low to mid-rise and won’t “overwhelm” the waterfront, beach, park and carousel.
“I’m hoping that it’s a fresh opportunity, a reboot to do something that’s appropriate and compatible,” Williamson said.