Craigleith development in question with company bankruptcy 0
CRAIGLEITH - The future of a massive residential and commercial project that stretched from Long Point Road into the heart of the hamlet is in question, after the company proposing to develop the site filed for bankruptcy last spring.
In November, Terrasan's properties in Craigleith, including the Craigleith General Store, the former Easter Seals camp, and several empty lots, were transferred to Meridian Credit Union under power of sale.
Terrasan Environmental Solutions filed for bankruptcy last spring; another division, Terrasan Metal Fabricators, also filed for bankruptcy.
In the trustee's preliminary report to creditors, the company cited financial difficulties due to delayed payments from contracts, an unpaid $4-million contract, and a downturn in the United States economy.
The 62-acre parcel is listed for $13.5 million.
Bob Sutter of Meridan Credit Union's head office in St. Catharine's was unable to provide many details, but did acknowledge his company had the property listed under power of sale.
Calls to Terrasan president Louie Santaguida were not returned.
The land includes the former Easter Seals Camp - a summer camp for physically-disabled children - which was sold in 2002 for around $4 million.
The Town of The Blue Mountains approved an official plan amendment for the site in 2010; that approval gave Terrasan the OK to build more than 200 residential units, along with almost 100,000 square feet of commercial space, and a 70,000-square-foot institutional building.
There is no draft plan approval for the site, which would be the next step in the process.
Blue Mountains director of planning David Finbow said the municipality has few concerns, from a short-term perspective, other than ensuring any property taxes are current.
Long-term, however, he acknowledged what Terrasan had proposed would be a significant development for the east end of the municipality.
"Our official plan sets the vision for the Craigleith area... and (this development) was going to anchor Craigleith and create a place that welcomed people to the Blue Mountains," he said. "That vision will now take longer to deliver."