Barrington Street businesses complain of poor Pacific Building upkeep

After 17 months of operating her business with scaffolding outside the doors and windows, the owner of a Halifax yarn storeon Barrington Street has moved out.

The Loop's Mimi Fautley says the scaffolding dissuaded shoppers to visit her store and resulted in a $50,000 loss of revenue.

ThePacific Building, built in 1911 at 1537 Barrington St., has heritage status and was oncethe home of Halifax's first YMCA.

It'snow owned by DongDu International (DDI),an investment group based in Shanghai involved in real estate, high tech and financing and its tenants are not pleased.

"Over the time that DDI has owned this building, it has deteriorated," Fautley said.

She says to her knowledge the only work that's been done is "exploratory" to prepare for the installation of a more permanent awning that will stop pieces of the building from falling on passersby.

'More time than a normal development'

CBC News spoke to the investment company's vice president and North America general manager.

"Since the building has heritage status, it takes more time than a normal development to go through all of the necessary design, planning, and permitting required, which has finally been completed,"said KenCreighton, who isbased in Detroit.

He said he "cannot comment whether the scaffolding hurt the business or not."

"It has taken about three to fourmonths just to manufacture the required steel for the awing we are going to install,"Creightonsaid.

Chives complains of leaks

The owners of Chives Canadian Bistro,tenants inthe same building for 14 years,also say their business is suffering because of scaffolding.

"All problems with the building started since DDI took over ownership,including the condition of the facade and pieces falling off the building," said Darren Lewis, the restaurant's operations manager.

"There are on-going persistent leaks that DDI doesn't want to do anything about."

Chives' owners are consulting lawyers to see ifDDI can be forcedto fix the leaks, Lewis said.

HRM $100K grant

Meanwhile, the Pacific Building has been recommended for a grant of $100,000 and a tax credit of not more than $160,500 as part of Halifax's Barrington Street Heritage Conservation District Financial Incentives Program.

This would help restore and renovate the building, including reinstating the original storefronts with new doors,windows and upper facade.

To get the money, DongDu would have to match the grant amount. To getthe tax credit, the company mustundertake work over $200,000in value.

• Read the full Halifax report recommending the Pacific Building receive a grant and tax credit

The grant money would be released only once the work is complete.There is no word on when DongDu Internationalplans to begin the work.

Attracting Chinese investments

Stephen Dempsey, the company'sspokesperson in Halifax, said it'sexploring options on how to best revitalize the building.

"Obviously there is a fine balance to be achieved between what will work in the local market here in Halifax and what would attract the necessary investments in China," Dempsey said.

• Chinese firm plans big resort at Indian Harbour Lake

DongDu Investmentshas purchased other buildings in need of repair in the past.

A few months after the City of Detroitdeclared bankruptcy in 2013, the company boughtthree iconic downtown buildings in an online auction.It sold two of its three Detroit buildings in 2015.

Detroit buildings in 'much worse shape'

The Detroit real estate agent who sold two of those buildings the 38-storeyart deco DavidStotttower andthe former Detroit Free Press buildingsays the company's promises were broken.

According toRyanSnoek, DongDu Internationalsaid it wasgoing renovate the buildings as apartments. But Snoek said henever saw any work on the buildings while DDI owned them.

"Once they sold the properties, they were in much worse shape than when they purchased it," he said.

He said he estimates the company made a few million dollars on the sale of two buildings.According to DongDu Investment'swebsite, the third building was alsosold in January 2016.

Company 'really no different'

Business reporter JC Reindl at the Detroit Free Press reported on the purchases and sales of DDI's buildings in Detroit.

"A lot of cynics in the city, theytypically say when you have an out-of-state buyer ... that swoops in,they just assume the company's going to hold them for a few years and then try to flip them," Reindl said.

"But DDI right from the beginningsaid they actually plan to redevelop the building."

In the end, those cynics may have been right about the company, the reporter said.

"[DDI's]actions are really no different from some past experiences here in the city, where you have had the out-of-state buyers and they sit for a couple of years and the prices rise and they sell," Reindl said.

In Halifax, Fautley said she hopes DongDu Investmentswon't just sit on the Pacific Building and allow it to deteriorate while buildings around it rise in value.

No one from the company responded to CBC's question aboutwhether DDI would sell the building without making improvements if it no longer made economic sense to keep it.