Is the Landing at Little Lake headed for a crash?
Information sent to an investor dated Sept. 16 said if the northeast Barrie residential and seniors development cannot be refinanced by year’s end, it will need to be cancelled.
And that would be two long-planned buildings — a seven-storey, 137-unit (56 one-bedroom and 81 two-bedroom units) condominium project and a managed seniors retirement home of four storeys and 141 units. The project is also to include an exercise centre, indoor swimming pool, spa (with a nail and hair salon), theatre, pub, library, sitting areas and access to the lake and surrounding nature.
Fabio Testa, 60, from Acton, says he put down a $60,000 deposit five years ago, in 2018, on a condo costing more than $300,000.
“It’s a disappointment, right?” he said of the project’s possible cancellation. “The money’s locked in and it’s made nothing (interest) for you.
“The delay is terrible. I mean, five years later … not even COVID is an excuse anymore. You hear different stories (why).”
Paul Hultslander, senior sales associate with project developer Landing Development Group, a Mississauga-based company, said Wednesday he had no comment on BarrieToday’s information that this project needs new construction financing by the end or 2023 or it will be cancelled.
But in a message obtained by BarrieToday, Hultslander said Mohamed Kader, of Landing Development Group, has to make new financial arrangements to get the project built.
“Mohamed is trying to secure new construction financing as our bank took a pass and has withdrawn approval,” his message says. “I would guess that if he cannot secure something by the end of the year, he will have to cancel the project. Of course, if that occurs, everyone will get their deposits back in full.
“Wish I could have been the bearer of better news but it is what it is.”
Testa wondered aloud that, if Landing Development Group does get financing by year’s end, how long this project will take to build once construction begins.
“I heard there are elderlies (seniors) that are waiting to move in,” he said. “You can’t do this to people. Shouldn’t you get financing first?”
The application, and council approval, for an Official Plan amendment for 10 and 20 Little Lake Dr., from general commercial and residential to residential and environmental protection (EP), dates back to early 2015, as does the rezoning, at 10 Little Lake Dr., from general commercial to residential apartment first density with special provisions and EP, and at 20 Little Lake Dr., from residential first density to residential apartment first density with special provisions and EP.
The development’s site plan, for 10 and 20 Little Lake Dr., was received by the city in May 2019 and approved in June 2021.
The city’s development projects website says the Landing at Little Lake is fully approved.
“They should do something about this, when it comes to builders … it’s the luck of the draw,” Testa said. “You could get a bad apple. Are you going to build the damn thing? It’s five years. It’s crazy.”
A message to future residents in late December 2021 from Landing Development Group said it expected to break ground in the early spring of 2022, sooner if possible, on the project.
But no shovels have visibly moved earth on the Landing at Little Lake, and the property remains fenced and overgrown with vegetation.
And now the clock is ticking on financing, and building, the Landing at Little Lake.
All new homes built in this province come with a warranty provided by the builder, according to the Ontario New Home Warranties Plan Act, which includes deposit protection. Tarion, a not-for-profit consumer protection organization established by the Ontario government, ensures new home buyers receive the coverage they are entitled to under their builder’s warranty.
If a project and the associated purchase agreements are cancelled, and the purchaser’s deposits are not refunded by the vendor, a purchaser may submit a deposit protection claim to Tarion.
