Investors in scrapped condo development considering legal action

An artist's rendition of the $50M Sage Gardens development in St. Albert. Supplied.

More than a dozen investors who put hundreds of thousands of dollars into a multi-million dollar condo complex in St. Albert are looking into legal action, all while companies hired by the developer are waiting for compensation.

Dianne Stewart, and Sydney Olson are at different stages in their lives – but they have one thing in common, a frustration with Vision Investment Properties.

“We were looking for our dream retirement condo,” Stewart said.

Stewart and her husband put down more than $28,000 for a unit in the ‘Sage Gardens’ development, with VIP.

“I’ve phoned them 12 times, I’ve emailed them, there’s no response whatsoever. Numbers have been disconnected, websites have been closed,” Stewart said.

Olson, 23, put down more than $15,000 for her unit.

“It’s upsetting when you’re this young and you put your life savings into something, and someone just comes along and takes it from you, it’s unfair,” Olson said.

Both buyers are still waiting for their money back after the development was cancelled in July, despite a promise from the developer in the summer to have the money returned in the next three to six months.

It’s the latest on a story CTV News first investigated in August, 2014 – after some buyers said they were waiting for their money back, since the $50 million development had been cancelled.

At the time, officials said the complex – meant to be a 200 unit state-of-the-art and eco-friendly development with space for childcare and retail – had only sold 35 units, which they said made it difficult to secure financing for the construction.

“You get to the point where you have to make the decision to pull the plug,” Thomas Napiontek, then-managing director of the company said in a phone interview from Hong Kong in August, 2014.

“We took a gamble, we took a chance, and unfortunately it didn’t pay off.”

Now, Napiontek says he is no longer involved in the company – and CTV News sought comment from the developer at two locations in Vancouver.

At one, it was found a new tenant had set up shop, and the office had been vacant for months – and staff at the second location would not confirm whether VIP was at that location.

A lawyer representing the company would not comment.

It’s not only buyers left hanging, officials with companies hired by the developer told CTV News they haven’t been fully compensated for their work.

Focus Communications said they were hired to handle PR and marketing for ‘Sage Gardens’, but a spokesperson claims they’re out more than $80,000 – and the company is taking legal action.

The Vancouver architect hired to design the building said they haven’t been paid in full either.

“It’s frustrating because we had to carry the people who worked on this, and you know we had to pay staff and the overhead,” Architect David Wong said.

As for the proposed site of the complex, the City of St. Albert said Vision Investment Properties took out a development permit, but not a building permit for the site.

“You do not necessarily have to move onto a building permit, if an applicant finds they’re not able to, it’s not required that you must move forward,” Carol Bergum with the City of St. Albert said.

According to a land title certificate, Landrex owns the land, not Vision Investment Properties.

Meanwhile, RCMP and Service Alberta officials are investigating.

“They will look and see if there are violations made under the Fair Trade Act, maybe the Condominium Act, and perhaps even the Criminal Code,” Scott Seymour with Service Alberta said.

About 15 investors are considering legal action, and ask other individuals affected by this case to email [e-mail] if they are interested in joining their group.

With files from Veronica Jubinville