Brightenview has offices at the Global Transportation Hub in Regina and had built the $45 million Global Trade & Exhibition Centre (GTEC) that drew controversy.
The Global Transportation Hub (GTH) has dropped its lawsuit against mall developer Brightenview after the company purchased the building and some of the land it was leasing.
A spokesperson for Premier Scott Moe’s office said in an emailed statement this week both parties settled the dispute after Brightenview paid the GTH $675,000 in this transaction. It had previously paid $600,000 toward ownership of the land.
The proceeds of this sale exceeded amounts Brightenview owed to the GTH in outstanding land lease payments, the spokesperson stated, resulting in the GTH dropping its lawsuit.
“The sale agreement and settlement allowed both parties to discontinue any further legal action and the property and building resumed generating property tax revenue for the GTH,” the spokesperson said in the email. “This concluded all outstanding legal matters and agreements between the GTH and Brightenview, hence the action was dropped.”
According to the lawsuit, the company had defaulted on rent payments to the GTH, building up a debt of $2,968,598.
The allegations weren’t tested in court, and won’t be tested now that the GTH has dropped its case because Brightenview purchased the building and land it was leasing.
According to court documents, the GTH stopped its legal pursuit in April 2022.
“The building on the leased property along with 2.5 acres land were sold to Brightenview for fair market value,” the government spokesperson said. “The sale proceeds exceeded the amount owed to the GTH by Brightenview for its outstanding land lease payments.”
Brightenview did not file a statement of defence in the legal matter and a representative for the company did not respond to requests for comment.
GTEC has idly sat at the GTH with few tenants operating.
It was originally pitched as a mega project that would bring international companies and increased trade to Saskatchewan, but abandoned stalls dot the halls.
GTEC came under fire a few years ago after investigative reports by CBC asserted the company misled Chinese nationals into paying large deposits for spots at the mall as a quick path to permanent residency.
The government has since changed its immigration program to exclude investors in GTEC and similar business condos.
While the provincial auditor confirmed land was sold for too much, it found no evidence of fraud or conflict of interest.
According to the GTH’s 2021-22 annual report, GTH debt sits at $43 million but it had an accumulated surplus of $13.2 million by end of year.
The annual report states companies at the GTH have created 900 jobs and have invested $485 million in capital spending.
— with files from Arthur White-Crummy.
Post a Comment