Thunder Bay waterfront hotel project hit by construction liens

CBC News has obtained documents showing the proposed 150-room Delta Hotel has two liens registered against the property.
The ReSolve Group's original development agreement with the city noted that the hotel had to commence its construction before, or at the same time as, the condo buildings, which are pictured here. The hotel is still a concrete foundation. (Josh Lynn/CBC)
CBC News has obtained documents showing the proposed 150-room Delta Hotel has two liens registered against the property.

Manshield Construction, one of the contractors working on the eight-storey building, has a registered lien for $1,459,009.00. The claim states materials and labour from March 1, 2013 to December 24, 2014 have not been paid for. Manshield built the foundation, parkade and the beginnings of the hotel superstructure.

The second registered lien is from Coastal Steel, for a value of $132,333.40. The full contract is for $1,102,462.00 but Coastal Steel has supplied only the amount specified in the lien to the worksite.

The second lien also names Gisele MacDonald, representing the ReSolve Group Inc, TB Properties LP and Laureate Developments.

A sign posted outside the hotel property states it will open in spring 2016. The development agreement among the city, Laureate Developments, ReSolve Group and four numbered companies states the hotel must be completed by 2017.

One construction milestone in the development agreement is the completion of 30 per cent of the foundation. It includes work on the building's foundation, and substantial completion of the parking garage, and bringing the building to grade level. That work was required to be finished in April, 2014.

If the developer is unable to complete the entire project by 2017, the land and any work completed will be taken over by the city for the price of two dollars.

Condos affected by liens

A lien was also placed on one of two condominium buildings at Prince Arthur's Landing. In documents, Vector Construction said it's owed $70,820.62, and placed a lien on the condo that has not yet been opened to tenants. 
A concrete foundation, with structural steel poking out, is all that is visible of the proposed Delta Hotel development at Thunder Bay's waterfront. (Jeff Walters/CBC)

Documents indicate there were some unpaid services and materials provided between August 30, 2014 and January 9, 2015, including concrete blocks, bricks and other masonry materials used in the exterior walls. The total value of the contract was $300,540.45.

An Ontario numbered company, Aurora Condominums LP and Manshield Construction were all named in the lien.

Developer says projects will proceed

Gisele MacDonald, president of the ReSolve Group, told CBC News that she understands that lien has now been removed through a bonding process.

MacDonald said the lien against the hotel project relates to payments that are not approved by the architect, and not supported by the contract.  She added that a court will be asked to vacate the lien if it is not removed by Manshield.

MacDonald said both the hotel and condo projects will be completed regardless.  She said  "it's not abnormal" for things like this to happen on projects of this scope, adding "we don't anticipate that this will affect... the condos and it's certainly not affecting the hotel."


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