Lake Placid will miss City of Saskatoon’s payment deadline
Media Release
Release: Immediate
Date: Friday October 30, 2009
Contact: Mike Lobsinger, Chief Executive Officer Lake Placid Group of Companies
(Saskatoon, SK, Canada): Michael E. Lobsinger, Chief Executive Officer of the Lake Placid Group of Companies, announced today that Lake Placid is in a situation where delays have arisen around the deadline with the City of Saskatoon. For this, Lake Placid sincerely apologizes.
International finance is a complex and time consuming process. Lake Placid continues to work with its international financier to provide the $200 Million credit facility that is required for the development of Saskatoon River Landing.
All development and legislative approvals were not obtained until May 2009. Pursuant to the lender’s written financial commitment, the financing is still expected to arrive but will not do so in time to meet the October 30 deadline. The City of Saskatoon will be advised that although Lake Placid is not in a position to meet today’s deadline, it may be in that position very shortly.
It is particularly unfortunate that circumstances beyond the control of Lake Placid have resulted in missing this important deadline. Lake Placid has spent two years and over $7 Million planning this premier development which includes payment to the City of Saskatoon of over $700,000. Lake Placid has received significant interest from the local community for the purchase of residential properties, and from commercial tenants and hoteliers. They will be contacted directly.
Lake Placid would like to thank all of the supporters of this project including the City of Saskatoon administration, City Council and the Mayor’s office for their significant support in the progress made to date. In addition, Lake Placid would like to thank the Premier of Saskatchewan and the appropriate Ministers who worked diligently to pass the necessary amendments to the Condominium Properties Act and the Land Titles Act which allow for the development of mixed use projects in Saskatchewan. Without those legislative amendments which were passed in May 2009, this project could not have proceeded.
Lake Placid believes in the future of the great city of Saskatoon and has every intention of developing there in the near future. The company thanks everyone for their patience and understanding in this matter.
There's 10 Comments So Far
October 30th, 2009 at 7:53 pm
River Landing’s Greatest Hits… In hindsight, the casino was actually the only viable alternative that had any real chance of being completed.
……….
Michael Lobsinger made a promise in Saskatoon Wednesday that his Lake Placid Group development company will build “something spectacular for the city” at River Landing … March 13, 2008
http://www.canada.com/saskatoonstarphoenix/story.html?id=5612f7a6-334b-4959-bbe2-5390932331e0&k=16727&p=2
“I won’t let you down. I don’t have to build this. It’s going to be uneconomic to build this… I’m going to lose money building this, but I misjudged the passion of how important this project is to the people of Saskatoon.”
Fingers crossed for financing … October 18, 2008
http://www.canada.com/saskatoonstarphoenix/story.html?id=71a55b38-1f44-4a1a-a5d4-b65463ab7ed7
“I’ll finance it my own way and that’s none of anybody’s business… I’m very optimistic or I wouldn’t have spent $3 million to $4 million already just on plans and getting as far as I have.”
Lake Placid Gets Time … August 20, 2009
http://www.thestarphoenix.com/news/Lake+Placid+gets+time/1911488/story.html
“I sit in front of you embarrassed and humbled… but believe the funding is imminent.”
Lake Placid Development Seemingly a Dead Deal … October 30, 2009
http://www.thestarphoenix.com/news/Lake+Placid+development+River+Landing+seemingly+dead+deal/2165367/story.html
“International finance is a complex and time consuming process… Lake Placid continues to work with an international financier to provide the $200-million credit facility that is required for the development of Saskatoon River Landing (Village).”
October 30th, 2009 at 10:45 pm
Mayor Atchison seems to be the only person surprised that the deadline has passed without payment. I hope somebody advises him that the good times have come and gone, and now is a good time to get into serious belt tightening mode.
October 30th, 2009 at 11:56 pm
More CNH layoffs, more potash workers laid off, and now (no surprize to me) Lake Placid hasn’t come thru. Welcome to the recession Saskatoon! Guess what’s next, shorter 30-25 year amortization and larger downpayments for home mortgages! It will really bite in a few years renewing a mortgage with higher interest and shorter amortization. USA had sub-prime and Canada will have “reverting amortization” to blame.
“governments whine” is the captcha code for this post. LOL
October 31st, 2009 at 12:17 am
Rick, “I hope somebody advises him that the good times have come and gone, and now is a good time to get into serious belt tightening mode.” Weren’t we at this point $200M ago…?
Steven, “USA had sub-prime and Canada will have ‘reverting amortization’ to blame.” And when this happens, will our mortgages not be functioning in a similar fashion? (if different in name only)
More economic woes from StatsCanada; there’s no ‘reading between the lines on this one’ – we’re still in a major recession, with no end in sight.
V-shaped recovery not going to happen here
http://www.financialpost.com/news-sectors/story.html?id=2165351
“Statistics Canada reported the economy unexpectedly shrank 0.1% in August but perhaps even more surprising were sharp downward revisions to figures for earlier in the year.
After adjustments, the statistics-gathering agency said GDP contracted an annualized 7.2% in the first quarter — worse than the 6.1% previously reported. The drop marks a record dating back to 1961 when Ottawa began collecting such data. For the second quarter, the economy shrank 4.1%, as opposed to a 3.4% reading issued in August.
The recession commenced in the fourth quarter of last year, when output fell 3.7%. Economists had been expecting growth in both July and August but have been disappointed twice with figures in July showing the economy was flat.”
October 31st, 2009 at 9:48 pm
Jason,
Yes I realize mortgages will be functioning the same. It’s the politicians that will be spinning a difference between what happened in Canada and the US. Average Joe will be made to think it was shorter amortization as the cause for the housing crash in Canada. Blaming it on sub-prime, will be the feds admitting to the same regulatory mistake in the US. Like, Canada doesn’t have sub-prime lending practises.
Canadians regulation are sound and moving to more conservative regulations is Canadian. 
October 31st, 2009 at 11:00 pm
Steven,
So, they’re going to lower amortization periods, causing a crash, so they can conceal the fact that something else they’ve done actually caused the crash? Frankly, nobody cares how you broke it, only that you broke it.
November 2nd, 2009 at 1:25 am
Steven, “It’s the politicians that will be spinning a difference between what happened in Canada and the US.” Lemming suicide is a frequently-used metaphor in reference to people who go along unquestioningly with popular opinion, with potentially dangerous or fatal consequences.
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