Judge will decide fate of offers on Capital Pointe

Judge to decide if additional offers will be allowed

With three offers for the former Capital Pointe site now on the table, it will be up to a judge to decide what, if anything, to do with them.

Tuesday had originally been set aside — at least in part — for Royalty Developments Ltd. to request approval from the court for its offer for the site at the corner of Albert Street and Victoria Avenue.

It was previously reported that the offer was accepted by the selling agent as part of a claim of mortgage action filed by a creditor.

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.

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.

As for the non-royalty offers, Richards argued 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 argued this is not a regular real estate deal but rather a court-sanctioned sale and that the best offer should be approved.

“That’s the offer that should have been accepted,” he said of his client’s proposal. “That’s the offer that we would encourage the court to accept at this time.”

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

The buyer that takes on the site will have to deal 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.

The City of Regina has asked that it be added as a party to the court matter. Only Richards opposed it.

Justice Bev Klatt told the parties she anticipates having an answer for them this week.

That’s the offer that should have been accepted. That’s the offer that we would encourage the court to accept at this time.