Financial troubles at Grandview Heights.

Grand disaster at Grandview Heights

Financial trouble have resulted in bankruptcy for the Kootenay Columbia Seniors Housing Cooperative.

The bankruptcy and receivership proceedings of the Kootenay Columbia Seniors Housing Cooperative (KCSHC) are continuing to make their way through legal channels.

KCSHC originally filed for bankruptcy in November of 2014, and held their first meeting of creditors in December 2014. At the time of filing estimated assets were $3,558,200, while liabilities were $5,053,862 leaving a $1,495,662 deficit. G. Moroso & Associates Inc. was appointed as the trustee.

The original idea for the cooperative and what has become known as Grandview Heights was to build a multi-phase housing and residential care facility development that would be governed by a cooperative group in order to provide fee-simple single family building lots, strata multi-family housing and a residential seniors care facility.

Opinions vary as to what went wrong, but the economic downturn and lack of new investments seem to be contributing factors. Organizers also received feedback that many seniors would rather rent than buy into a condo type of housing development. Meanwhile, too much time passed with interest accruing and no new revenue resulting in the inability to keep up with the mortgages on the property.

The next stage in scheduled proceedings is to appoint G. Moroso & Associates Inc. as the receiver, enabling them to begin selling properties including 14 lots along with some larger undeveloped tracts of land in order to recoup as much money as possible for the creditors. This process could take anywhere from a few months to a few years.

Heritage Credit Union is the first mortgagee and largest creditor with a claim of $1,832,700, followed by a group of about 50 KCSHS member loan holders who advanced funds to help with development costs. Their collective claim adds up to $2,273,000. Other creditors include Total Concept Developments, Martech Electrical, Marwest Industries and Selkirk Paving.

The property on which the existing Grandview Heights homes sit is already paid for and is not included in the claims. The actual homes are not included either, so none of the current residents will be losing their homes as a result of the proceedings.

Based on estimates of the sale price of the properties currently owned by KCSHC the likely outcome is that the Heritage Credit Union claim will be fulfilled, the claim of the member loan holders will only be partially paid out, and the remaining creditors will receive nothing.

Frustration and emotions are in abundance among the member loan holders who are seeing some of their retirement nest eggs disappear. Tensions have resulted in demands for a full accounting and outside audit of the financial reports, personal attacks and civil suits against trustees.

It is going to take a while for the bankruptcy proceedings to be completed, meanwhile KCSHC will continue managing the existing development and maybe someday cooperation will return to the cooperative.

 

Just Posted

Help clean Castlegar during Pitch-in week

Volunteers across the country will be tidying up April 22-29.

Merry Creek Trail to see improvements

Columbia Basin Trust supplies $484,000 for 29 trail projects around the Basin.

Rural dividend grants awarded in Kootenay West

Kootenay West MLA Katrine Conroy made the grant announcements in Trail on Thursday

Castlegar Realtor honoured for achievements

Re/Max recognized Castlegar and Grand Forks realtor Lorene MacGregor

Castlegar gymnasts vault into competition

Selkirk Challengers Gymnastics Club attended the BC Artistic Compulsory Gymnastics Championships.

Parliament Hill 4-20 organizers predict record crowd after legalization

A celebration? Yes, but organizers say concerns remain about the government’s decisions on legalization rollout

$6K raised in one day’s time for family of woman gunned down in Penticton

GoFundMe launched for family of Darlene Knippelberg, to pay for funeral costs and other expenses

Seven tips to travel safely this Easter long weekend

An average of three people are killed, and hundreds more injured, each Easter long weekend in B.C.

GORD TURNER: Accidental treasure hunt for books pays rewards

You never know what treasures you might discover on a book shelf

Parents say Austrian climber missing in Banff National Park ‘lived his dream’

David Lama, Hansjorg Auer and American climber Jess Roskelley have been missing since Wednesday

Six months after legalization, high prices and supply issues boost illicit pot market

It has been six months since Canada became the first industrialized country to legalize recreational cannabis

Seattle’s 4-20 ‘protestival’ enjoys tolerance, some support – and B.C. could do the same

Seattle’s Hempfest a large-scale occasions with vendors, prominent musical acts and thousands of attendees

B.C. mountain biker sent home from hospital twice, despite broken vertebrae

Released in Maple Ridge to go home with three fractured vertebrae

Deck collapses in Langley during celebration, multiple people injured

Emergency responders rushed to the Langley home

Most Read