An artist's conception of a major development on Saskatoon's riverfront is shown. The project has won extra time to pay the city millions of dollars owed for the sale of land associated with the project. Calgary-based Lake Placid River Landing Inc., had promised to pay Saskatoon $4.5 million by Aug. 17, 2009. (Lake Placid River Landing Inc.)

A major development on Saskatoon's riverfront has won extra time to pay the city millions of dollars owed for the sale of land associated with the project.

Calgary-based Lake Placid River Landing Inc., had promised to pay Saskatoon $4.5 million by Aug. 17, 2009. The company plans to build a hotel-condominium-office complex on the site.

'I sit in front of you embarrassed, humbled, but an absolute believer that this funding is imminent.' —Michael Lobsinger, River Landing

The company, however, is behind schedule with its plans, particularly in securing financing for the estimated $200 million in construction costs.

"This was going to be funded in May. And then June. And then late June. Then early July," Michael Lobsinger, chief executive of the development company, told members of city council Wednesday as they considered a special motion to give Lake Placid more time to pay its debt. "So I sit in front of you embarrassed, humbled, but an absolute believer that this funding is imminent."

Michael Lobsinger, president and ceo of Lake Placid Developments, told Saskatoon city council he needed more time to confirm financing for a $200 million River Landing project. (CBC)

Lobsinger faced some critical city councillors who expressed concern with the repeated delays.

"People though are starting to lose patience with the many reasons that are being offered as to why the financing isn't in place," Coun. Pat Lorje said.

"The reality is, Lake Placid's lost a lot of credibility," another councillor, Tiffany Paulsen, said. "We've been going through this over and over again. We discussed this on this council agenda. The credibility is waning."

New deadline: Oct. 30

After about one hour of discussion, city council voted 7-4 in favour of extending the developer's payment deadline to Oct. 30, 2009.

In addition, the company must pay the city $214,197 in interest on the unpaid money, by Aug. 31.

Lobsinger said his company was committed to the project and had already spent around $6.5 million in preparation work.

"The minute I get the funds from overseas, I'm closing," Lobsinger added. "I'm not waiting until Oct. 30."

According to information given to the city, Lake Placid had trouble securing financing when credit markets tightened in late 2008.

Now Lake Placid has told the city it has found a lender in a company called Seremia Ltd., which has a bank account in Nicosia, Cyprus.

Saskatoon Mayor Don Atchison said the new deadline is do or die for the developer.

"If at that time Mr. Lobsinger and his company haven't come to the agreement as they so stated, it's finished, it's over," Atchison said.