Gateway Midtown
One of the first condo projects to be halted because of the economic downturn has been restarted this week.
“This is symbolic,”Ald. John Mar said of work relaunching. “It was the first site to stop work. It’s the first site to restart.”
Crews are now working on the six-level underground parkade and will eventually build to street level, where a floor of commercial space will be leased out. Those portions of the project are expected to cost around $50 million. Half the commercial space is already leased to a well-known national chain.
Calgary Herald, May 29 2009
Brian Stoddard, CEO of Pointe of View, the project’s developer (Pointe of View took over the project in March) goes on to say in the article: “We’re sensing that the market is turning around, so we think the timing is appropriate for us to have a successful project there.”
About Gateway-Midtown
The 650 unit Gateway-Midtown property was originally owned by developer Resiance, but walked away last fall after saying the project was “financially unfeasible.” Spokesman Shael Gelfand had said that it was “primarily due to rising costs for labour and for materials. Its just made it too expensive.” The decision had affected a lot of buyers and investors. More than 500 of the 650 units had been sold. (Source)
However, the excavation for the foundation had already been completed. Sinkholes began developing in late April and led to a section of 4th Street S. W. being shut down for nearly two weeks. Concerns for the shoring on the walls of the site arose.
Why has the project restarted?
My initial thought was that Pointe of View was forced to go forward due to safety concerns. Piecing together various news tidbits from articles regarding the sinkholes:
- It’s left the city trying to balance safety concerns with efforts to encourage continued building. “We’re trying to protect safety and we’re trying to also assist in keeping development going,”Mayor Dave Bronconnier said.
- City staff are in discussions with the owners of two of the sites about at least bringing the project up to ground level.
- Holes in the city’s core are of the biggest concern, because of their depth and their proximity to neighbours and infrastructure, including roads, sidewalks, water and sewer pipes. With the rivers flowing nearby there is a different groundwater concern than in other areas, as well.
- “You can’t leave shoring there like that forever because there’s always a concern that the shoring might fail and the road is going to end up slipping into the site”
But apparently it was not a safety issue. I was told that it was their decision (PoV) to start going forward, though the city certainly prefers they build for site stability. Apparently, they’re going to go right to the west tower after the commercial level is done, so it doesn’t appear they’re stopping at just the main level, which was another one of my thoughts.
This is interesting since another condo project, the Skytower, has also been beleagured in construction purgatory, but its developers have a different viewpoint:
May 9, 2009: Robert Cohen, president of Diamond-Trust Towers Corp., which is building Sky Tower, said there are no plans to resume construction in the near future.
“The economy in Calgary doesn’t justify development right now,” he said from Montreal, adding they plan to leave the site as is. “We’ll make sure it’s nice and safe. We’ll leave it that way for now.”
However, with 500+ out of the 650 units of the Gateway-Midtown apparently already being sold, perhaps they have the required capital to continue in light of reduced building costs.
Have You Purchased A Gate-Midtown (now Encore) Unit?
If you had purchased a Gateway-Midtown condo, I’d like for you to share you story – did you get your deposit back when it was halted? Is your deposit still in trust? Have you received any word on the status of your unit?
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Other Sources:
“Work begins again on stalled condo project” – Calgary Herald, May 29, 2009
Contruction craters a headache for City Hall – Calgary Herald, May 9, 2009
Second sinkhole forces Beltline condo evacuation – Calgary Herald, May 5, 2009
Sinkhole forces downtown road closure – Calgary Herald, April 25, 2009
It’s good to see that this condo project has been restarted even if it will flood the market with condos and cause condo prices to go down.
Better that than end up with a hole in the ground for 10-20 years.
There must have been a lawyer somewhere that said to them “you’ll have to pay more leaving it a hole and paying fines than building it and selling all the condos off at a loss”
Mike
I am wondering how many people who buy the condo units are for their own living in downtown and how many for renting?
Can I say the trafic will be really worse?
Rachel
Rachel if I may expand your question…
I am wondering how many people who buy the condo units are for their own living in downtown, how many for renting AND how much were just purchased as an investment to flip as soon as they were completed?
I (and I am sure a few others) are absolutly furious with the way the deposits are being handled. Although all our contracts state that the original project could be sold, Point Of view has elected to let some people out but not others. When I contact one of the sales managers, asking for the reason, he said “price” They(POV) have now set a precedence and I would love to take them to court to get our money back! They are holding onto these deposites for no reason and based on this article, there is no condos going in anytime soon. when does time start to become a breech of contract?
Please help me get in contact with others who share this same feeling.
Cheers,
Ryan
I’m with you Ryan,
Someone mentioned there’s a group on Facebook, they want to take to court.
If we can find the link on Facebook, maybe we can join them.
Ryan, David,
I’m sorry to hear about your difficulties.
There are some at the Beyond forums that have gotten their deposits back. Perhaps you can PM them for more info.
There’s also a Facebook group called Gateway Midtown Investors Calgary, AB with 38 members. Hopefully someone there can help you get more info too.
Please let me know how you make out.
My wife and I purchased a suite back in 2006 when prices were still quite low. Our original plan was to move in but now 3.5 years later we have 2 kids, that’s not feasible now. POV decided to keep our contract, which surpised us considering the price we paid and the floor we were on. If, as you say, the West tower gets built first, we may try and rent our unit out and see if we can make that work.
I heard that POV had been building a huge condo complex in Sand Diego for the last few years, and it actually took so much time that they had to return deposits to a number of buyers, because the state of California has some kind of time limit on deposits. Does Alberta have a similar provision in place for condo buyers?
Ryan,
Please email me and we can talk about finding others in our position. I am also livid about the complete lack of information concerning our deposits and when we can expect our units. I am also frustrated that some people got their deposits back and I did not, and I was never given the option. In 2006 I looked a buying a Pointe of View condo and was advised against it by many people because of their reputation. I am not at all happy that I am now stuck with a POV condo.
I have hired a lawyer and I am going to seek legal action against POV. A class-action would be a lot more effective and cost efficient though.
Sorry, my email is cbelseck@gmail.com
Hello Christina,
Again, I’m sorry to hear about your situation. I think it’s the non-communication aspect of it that I would find most frustrating.
I’ve emailed Ryan with your contact information, incase he doesn’t see your post.
All the best
I’m also in the same frustrating situation where my deposit is being held and cannot even seem to get anyone to call me back about what is going on. I would love to find a way out of this contract. These delays and such are rediculous.
These guys are a pathetic bunch. Very unprofessional. Either won’t answer the phone if they do your put on hold and they never call back. Appears they could care less about the people who invested in this project and refuse to inform the investors of what the plans are. They appear desperate to keep the money for as long as possible. Perhaps the great city of Calgary can provide the latest building plans submitted for this out of contol project
Anybody heard anything? purchased for long term investment! I have not heard nothing yet!! other than I will be contacted when they get there sales center up?this might be a blessing for some investor , seems like the market is starting to pick up!!but who knows when this project going to be done?
Hello all,
I have bought a condo – Midtown project.
It is a sucks situation because our money stuck.
Alberta New Home Warranty Program helped only some people but not all of buyers.
Moreover all buyers money not under Alberta New Home Warranty Program anymore – SUCKS.
And NOBODY informed buyers about it.
Please wish us the LUCK.
We have formed a group of purchasers. If you are interested in joining, please email me if you are a former purchaser of the Gateway Midtown project still stuck with Pointe of View.
Update on Gateway Midtown
Read entire article:
December 12, 2009 – Calgary Herald
Recently POV started selling units again. How does this work out if there are still buyers/owners from the previous sale that have not gotten their deposits back? Doesn’t this constitute double selling?? (overlapping owner?)
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Mike Fotiou says: Are you certain they’re selling the units that were already sold?
I did not purchase a Midtown condo from POV, but I am in the middle of purchasing one of their units from Airdrie. Needless to say this information is very concerning. The units are to be built in 14 months, but now I’m not so sure this is a good company to invest with. If anyone has feed back or advise please share.
I am very sorry to hear of all the trouble that buyers a encountering. Two of my friends are also purchasing from POV, please let me know if we should advise others to walk away from this sale.
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Mike Fotiou says: Amanda, bear in mind that the Midtown Condo was originally being developed by Resiance, and POV picked it up after the project was abandoned by Resiance.
Mike, Not sure which particular units are being sold.
I have heard nothing but terrible things about POV and in my opinion, I would not invest in this company who doesn’t care to get back to their purchasers. If this is how they treat the ones who already bought, how do you think they will treat you once you buy????
I am looking for a Resident Management Position with Midtown in Calgary. I look forward to hearing from you.
Thank you Mike.
I put down a deposit for 2 units at GATEWAY MIDTOWN almost three years ago.
If anyone knows who the lawyer is or anyone has a group that is suing with class action, email me please!!!!!!!!
ajlapp@ucalgary.ca
Has anyone heard what’s happening with this place??
I think we may need the media to get it back in the lights….it’s just ridiculious!
Last I read, Pointe of View had it for sale. I don’t know if it has sold yet…
January 2011, Calgary Herald:
Dear All,
Sorry to hear of the difficulties that the depositors of this project are facing. It is frustating as no one returns the call. Last week I managed to get hold of Judy Wong Solicitors for Resiance Corporation and was told to speak to Miller and Thompson (MT), solicitors for POV (Point of View) who have said I should contact the builder POV to get an update on construction plans. When asked about the depoist money held in trust, they (MT) said that they will not answer the quesion and I should hire a lawyer to communicate with them.
Does anyone know the recent development in this matter? Has anyone gotten their deposit back? What should we do? Perhaps write to the Mayor?
Regards,
Qasim
I finally just spoke with Ross Pavel who is supposed to be the contact in regards to the project. (He also gave me someone higher up by the name of Brian from Pointe of View to contact….??)He claims they have had a lot of buyers and some offers, and they should know soon on what’s happening. Personally, I think that it will be the same answer they always give us…”I don’t know…we have to wait….” But I have to hope that it may be true. His contact information is 403-837-8100 and his website is http://www.rosspavel.com
He said that they should know something in a week or so….so I encourage anyone who wants information on this to give him a call. I sent emails, but they were never answered…so calling is your bet bet.
When and if there is any information….I will post it.
I was told that there is a possible buyer and they will have till June to decide of they are going to continue to build, or if they are going to scrap it.
Ross Paval, everytime i phone gives a rosy picture that it will be decided “this month”, he has been saying that to me since september 2010…. It’s time for a lawsuit..
Rumor has it deposits will be returned in the next couple weeks. How about looking at a project that is planning to be built? http://www.nextliving.ca in Bridgeland
Update on Gateway
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