Project may live on: condo corporation

A court order halting the construction of an apartment building doesn’t mean the project can’t go ahead at some point, says the president of the Whitehorse Condominium Corporation No. 95.

A court order halting the construction of an apartment building doesn’t mean the project can’t go ahead at some point, says the president of the Whitehorse Condominium Corporation No. 95.

Helen Booth said Wednesday the order means the developer must go through the process of meeting with Falcon Ridge condominium owners to explain the project, and seek approval from the owners for the apartment building.

The order, she insisted, does not mean the project is dead, though she also acknowledged there are no guarantees it will be approved.

“The condominium owners are pretty reasonable people,” Booth told the Star.

She said the driving force behind the court action was not the project itself, but the fact 37724 Yukon Inc. and company president Brian Little did not go through the process of obtaining consent from the owners, as required by law.

Construction of the apartment building began in July 2012, and the third storey is already on. Available city records estimate the value of construction at $2.65 million.

The existing neighbourhood is made up of 75 single-detached homes, six duplexes and 10 homes 37724 Yukon has not sold yet.

The order to halt construction by Justice Ron Veale of the Yukon Supreme Court was issued Tuesday, following last month’s hearing.

Veale describes his 50-page decision as “a cautionary tale for condo developers, condo corporations and condo owners.”

Veale was also critical of Little’s conduct through the whole affair.

Little and the company’s lawyer declined comment Wednesday.

The Falcon Ridge condominium corporation, as it is commonly referred to, filed a legal action against 37724 Yukon in late November.

It argued the developer failed to obtain approval from individual condominium owners who control the parcel of land in question because it’s attached to their condominium package.

Veale agreed permission was required from each owner under the Yukon Condominium Act, and ordered construction to cease.

Not only does he act require permission from each owner, but also any banks that hold mortgages, the judge pointed out.

His decision also says the company is prohibited from using the land for any buildings or construction without the written consent of the condo owners.

“We are pleased with the judgment, of course,” said the condo president.

“But what we are hoping is 37724 Yukon Inc. comes back and requests an amendment to the declaration. Just follow the process that is laid out in the act.

“It’s a very clear process to deal with these types of situations.”

Booth said the condo owners have valid concerns and questions they want to see addressed.

“We asked them to do this a number of times and they decided to go another route, and that led us to try and get them to the table through this injunction,” she said.

“They need to approach the condo corporation and ask for an amendment, and that will give the owners a chance to have their say, as they are allowed under the act.”

Evidence put before the judge at December’s hearing indicated increased traffic, density and maintenance costs, shadowing on neighbouring properties, and the obstruction of natural views were among the concerns raised by Falcon Ridge residents.

Booth said it’s her understanding the consent of each property owner is required, though the Condominium Act also allows a developer to seek a court order to proceed if he obtains permission from some condo owners but not all.

It would then be up to the court to decide if the objection from the opposing condo owners was valid, she said.

Booth said as she reads the act and Veale’s decision, consent is required from 100 per cent of condo owners and the banks holding the mortgages.

The requirement to receive approval from all owners and encumbrances – the body which holds the mortgage – comes down to the value of the asset, Booth suspects.

If a bank holds a mortgage for $330,000 and somebody is proposing a development which will devalue the property, she said, the bank will want and has a say in the matter.

In his decision, Veale found that Little and 37724 Yukon proceeded with construction knowing they needed approval from the condo owners but did not have it.

He ordered 37724 Yukon to pay the legal costs incurred by the Falcon Ridge condo corporation.

Meanwhile, a $2-million lawsuit was filed early this month against 37724 Yukon for unpaid condo fees and late charges going back to 2005.

As an owner in the condominium development, 37724 Yukon is obligated to pay its fair share of condo fees but has not, the lawsuit maintains.

Booth said Tuesday’s decision does not affect the lawsuit over condo fees, as it is a separate matter.