Rosewood School site developer faces default

REGINA – The City of Regina is threatening to take over the service work at the northwest school site in Rosewood, and make the developer pay.

Rosewood Park Alliance Church and their partner, SVN, were served a default notice on March 9. The city says the developer has not provided evidence that they will be able to pay for and complete servicing the land before the end of year deadline.

This includes connecting it to existing roadways and utility system.

Now the city is giving the developer until April 29 at 4 p.m. to come up prove they can pay the $3.2 million outlined in the servicing agreement.

“Well you’ve seen in the report that somebody has stepped forward, Westridge Construction, to help the church,” lead developer on the project from SVN Jason Petrunia said.

“We appreciate that council has to hold us accountable, and this is part of that process.”

Westridge Construction has not confirmed their involvement in working with the developer on the Rosewood school site.

The city’s executive director of city planning & development Diana Hawryluk said they have been working closely with the developer since the default notice was delivered.

“Earlier this week they came forward and said they have a development partner that will be able to bring the bond forward that’s been outstanding and they’d be able to complete the works without having any concessions from the city,” she explained.

There are four conditions the church and SVN must meet:

1. Provide a detailed construction schedule and plan on how the details of the servicing agreement will be met.
2. A detailed list of outstanding creditors along with the proposed plan for payment of outstanding accounts and related timelines for payment.
3. A detailed financial plan that completes all work required in the servicing agreement without relying on City of Regina concessions.
4. Provide a proof of a line of credit or certified cheque for just under $3.2 million representing the performance security in the servicing agreement.

City council will be vote on adopting this plan at their April 25 meeting.