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Waterfront contractors claim to be owed more than $1.4 million: Documents

THUNDER BAY -- Contractors working on the waterfront hotel and condominium projects claim they are owed nearly $1.5 million, documents show. Manshield Construction registered a $1.45 million lien signed Jan.
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FILE -- This sketch, used during the public consultation phase of the waterfront development project, shows what a completed waterfront hotel could look like at Prince Arthur's Landing. (Photo supplied)

THUNDER BAY -- Contractors working on the waterfront hotel and condominium projects claim they are owed nearly $1.5 million, documents show.

Manshield Construction registered a $1.45 million lien signed Jan. 27 on property set to house an eight-storey, 150-room hotel. The company built the foundations, parkade and part of the superstructure.

It claims work and materials between March 1, 2013 and Dec. 24, 2014 have not been paid for. The lien names 1876030 ONTARIO and T.B. Properties.

Coastal Steel registered a $132,333 lien on the property Feb. 20.

That lien names the same owners plus Manshield Construction. It's contract is for $1.1 million to install structural steel for the hotel.

The money owed is for services and material that have already been supplied between Sept. 2, 2014 and Jan. 29, 2015.

Vector Construction has a $70,820 lien against property for one of the condominiums, which names 2353267 ONTARIO, Aurora Condominiums and Manshield. Also registered Feb. 20 The company has a $300,540 contract to supply masonry including concrete blocks, bricks and other material for the condo's exterior wall.

The lien is for work and material supplied between Aug. 30, 2014 and Jan. 9, 2015.

Developer Gisele McDonald, president of ReSolve Group, said liens like these aren't uncommon in large projects and that she's asking that Manshield remove the lean or she'll get a court to do it.

The money is for payments that haven't been approved by the architects and aren't in the contract.

"I'm not approving any payments that haven't been approved by the architect or supported by the contract that they have in place," McDonald said.

The project is still on schedule and won't be impacted by the liens she said.

Delta Hotels and Resorts said it has full confidence that Delta Thunder Bay will open its doors as planned. It did not want to comment further.

City manager Tim Commisso said the city had been told about the liens by the developer but it's tough to comment because it is a legal matter.

"Unfortunately these types of things happen particularly in large contracts but the city's interests are protected," he said.  "We've been advised the projects are still proceeding for the second (condominium) building as well as the hotel."

Waterfront development committee chairman Iain Angus said the city isn't directly involved, but it is not unusual to see disputes like this with large contracts.

"We've seen it a number of times in our own projects," he said.

"It may be that one party is suggesting that the work of the other wasn't up to what they expected and this is their way of holding back money to force corrections. It'll be resolved fairly quickly I would assume."

"I don't see it slowing (development) down whatsoever."

Angus said a building permit application has been filed. City staff have already reviewed it and provided comment.

According to the development agreement, construction of the hotel and its foundation must be 30 per cent complete within two years of the land transfer, which was in April of 2012.

If not, the city can take back the land and any improvements made to it at no cost to the city. The hotel must be 99 per cent complete within five years of that same date.


 





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