Local businesses hired to help build Squamish Renaissance Retirement Residence are out as much as $2 million dollars, with 11 liens filed against the project's owner so far, according to a land title search.
In 2008 and 2009, about half a dozen local businesses provided services for the Third Avenue site, from general contracting to paving, kitchen furnishing to flooring and glass installation.
As the residence held its grand opening last month with municipal and provincial dignitaries celebrating its achievements, at least 11 businesses were still waiting to be paid, leaving some on the brink of bankruptcy, according to one businessman.
Alpine Pacific Construction Group (APCG) general manager Darren Pelling said more than just the 11 businesses are owed since companies typically hire smaller specialized contractors to help get the job done, leaving them in the lurch as well.
"The amount of money that we've liened for includes monies that we owe to four separate sub-trades that worked under us. So our lien represents five companies."
Pelling wouldn't disclose how much APCG is owed, but said APCG along with Westwood Mechanical and L & A Equipment are waiting for a combined $1.5 million dollars.
Other local businesses - who wished to remain anonymous - said they were waiting to be paid anywhere from $15,000 to $51,000 for their work on the seniors assisted living facility.
Trouble started for trades people and businesses when the developer, New Future Building Group, started falling behind on payments in August 2009.
Alpine Paving's Gene Smith said the developer claimed New Future couldn't pay up immediately, but they were working on ways to get them the outstanding money.
"They said they had gone over budget and now they were in the midst of refinancing with their institution to get more money to pay us."
By September 2009 several contractors and trades walked off the site in protest of the late payments. Renaissance developer Mike Rink came to Squamish and spoke with Pelling to iron out the walk out, said Pelling.
"We were told 'Look we need you to help us get occupancy because the building isn't worth anything unless it's finished and functioning. If we stop now and we don't get it stocked [complete] and there's a for sale sign, then everybody loses because the building is the most valuable when it's finished.'"
Pelling said APCG was promised 20 per cent of the unpaid balance if the organization came back.
"We were told directly 'Once we get occupancy we'll re-finance the building' - because they couldn't re-finance until it was a viable building - 'and we'll get you guys paid out.'"
In what Pelling calls good faith, he agreed to finish the job, but occupancy was issued in October 2009 and monies are still owed.
Another business owner said the same promises were made and broken to he and his wife.
"They gave us a personal guarantee that they'd pay by a certain date. That day came and went they never paid. So we gave them an extra week on that and they still didn't pay. No communications saying that they were sorry or 'Looking into this, we're trying to get you money.' No nothing at all so we just stopped going into the site."
Businesses filed liens, as early as Thursday Oct. 29 on the 75-unit facility even with work left undone.
The last lien filed on the Squamish Renaissance Retirement Residence was Tuesday (April 6) but at least one other business has taken it a step further and put New Future into collections.
Pelling said he was told the building can't be re-financed until the vacancy rate drops, but he's dubious.
"What's going to stop them from changing that benchmark again?" he asked. "I don't know how long it's going to take to get this done, but most of us can't really afford to sit around and wait for this."
Although Pelling said APCG has taken a bit of hit with the outstanding balance - they've laid off six people - he said the company is hanging on, they're just limited in their capability to generate revenue with other projects.
"Profits that we would realize from the project were slated to be re-injected into the Squamish community through APCG initiated projects. These projectshave now been delayed indefinitely which has resulted in the lay-offs."
Another local business owner said she had to put off of company projects like expanding her showroom because her company hasn't been paid a dime for the work they did. In fact, she's had to use her company's profits to pay for the materials she and her subcontractors used for Renaissance.
"We've had to use our own profits from other jobs to pay their bills basically," she said.
Pelling said the main concern was the effect this outstanding balance was having on many local sub trades.
"Our legal system is set-upsuch that it could take thousands of dollars to recover the monies rightfully owed to us," Pelling said.
The cost of litigation could exceed the total amount owed to each company, so local businesses are forced to decide between waiting in good faith and spending money to get what's rightfully theirs.
"Ultimately, trades [and] suppliers have been forced, against their will to be financers of the project, without the benefit of reasonable interest nor secured claims against the title of the property. Very unfair and most definitely an undue hardship for most," Pelling said.
New Future has a few other projects currently underway across British Columbia and Pelling is worried Squamish business owners will be overlooked since Renaissance s complete.
"It's disturbing that this building was built on the backs of others and it's not being addressed."
Smith said although the outstanding sum isn't breaking Alpine Paving's bank, outstanding lump sums add up.
"I wouldn't recommend anybody work for those people unless they get the money up front," he said.
Vice president of operations for Renaissance Hospitality and Healthy Services - a subsidiary of New Future - Martin Gardner said he could not comment on the issue.
"I came into this project right when this building was completed so I have no involvement or comment to be made."
Gardner suggested The Chief contact New Future, however calls to Rink were not returned as of press time.
