SkyCity condo buyers suing to get deposits back

Condo buyers are suing SkyCityCentre Winnipeg, claimingit has become "patentlyobvious" the company has breached the sale agreement because itcan no longer meet the move-in dateof October 2019, say court documents filed Monday.

A couple dozen buyerswant their 10 per cent deposit back, said lawyerRichardOlschewski, who's representing buyers in a proposed class action lawsuit.

The long-delayed, $200-million condo building was supposed to be Winnipeg's tallest tower. Instead, the project site remains a surface parking lot atthe corner of Smith Street and Graham Avenue.

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"There's a certain frustration that all buyers seem to share, and there's a patience that's run thin, and a need to do something about their investment," saidOlschewski.

The lawsuit is the latest in a string ofproblems facing the company behind the project, Fortress Real Developments, based in Richmond Hill, Ont.

The RCMP's Integrated Market Enforcement Team raided the company's offices last month as part of an investigation into syndicate mortgage fraud. That happened afterOntario's financial services regulator issued $1.1 million in fines following an investigation into mortgage companies involved in financing SkyCityand other real estate developmentsby the company.

In addition, Fortresschief operating officer Vince Petrozzawas ordered to stop brokering mortgages.

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The representative plaintiff, Sherif Sherif,put down $14,075 as a deposit on a 28th floor condo in October 2015.

"There's been very, very little in terms of communication from the developer in terms of what's happening next," said Olschewski. He found out that co-developer Edenshaw Developments pulled out of the project from a CBC News article, he said.

• Future of Winnipeg's SkyCity condos questioned after RCMP raid

Olschewski said some of the buyers boughtcondos to move into atretirementwhile others simply wanted to be part of an exciting downtown project.

"Most of the purchasers had bought into the dream of SkyCity," said Olschewski.

Buyers he spoke to initially wanted to be patient, thinking there was potential the condo tower would become a reality.

"It's time to just call it what it is, and it's a project that is unlikely to move forward. It's time for the purchasers to get their deposits back," said Olschewski.

"You can imagine there would be this corresponding disappointment to learn that not only is their money tied up but their their plans are not going to materialize."

• Condo buyer doubtful about future of downtown 'beacon of hope' after trustee appointed

The lawyer acting as escrow agent for SkyCity said condo buyers don't need to worry about their deposits.

"I can tell you that any deposit funds that have been paid to this firm are still safely in our trust account," lawyer Doug Forbes, of Winnipeg's Thompson Dorfman Sweatman LLP, said at the end of April.

Fortress Real Developments did not respond to requests for comment.

The proposed class action is not certifiedand the allegations have not been proven in court.