The court gave Alverez & Marsal Canada Inc. the authority to manage the business and take control of the finances of Bear Mountain.

The Supreme Court of ­British Columbia has appointed a receiver to oversee operations of the companies that own and operate Bear Mountain Resort, where partners have been at odds over how the property is being managed and its land is developed.

In a decision on Wednesday, the court gave Alverez & Marsal Canada Inc. the authority to manage the business and take control of the finances of Bear Mountain, which under Ecoasis Developments has hundreds of acres of undeveloped lands as well as two golf courses and tennis facilities on Skirt Mountain in east Langford and the Highlands.

Sanovest Holdings Ltd. and 599315 B.C. Ltd., headed by chief executive Dan Matthews, are equal partners in ­Ecoasis ­Developments LLP, which was formed in 2013 under the ­company name Ecoasis Bear Mountain Developments Ltd.

Sanovest, which holds a $62-million loan on the Bear Mountain lands, asked B.C. Supreme Court to appoint a receiver after Ecoasis Developments LLP failed to pay off the loan in full by May 1.

Sanovest claimed in filings last spring there was a breakdown in trust between the two controlling partners — ­Sanovest director Tian ­Kusumoto and Matthews, chief executive of Ecoasis Bear ­Mountain Developments.

Sanovest asked for a receivership to preserve its assets and ensure fair ­treatment among creditors. Ecoasis and 14 other associated ­companies known as the Developments Partnership were listed as respondents in the petition by Sanovest.

The two partners have been at odds on several issues, including how to market and develop the remaining lands, expense accounts, debts including property taxes and on whether to sign a contract extension with the privately held Bear Mountain Westin Hotel for use of the locker-rooms, pro shop and cart-charging facilities linked to the two 18-hole golf courses.

This week’s ruling gives the receivers powers to take possession and exercise control over the property and any money coming in or being spent.

The resort operations at Bear Mountain, including golf courses, tennis and other recreational facilities, are not under receivership as a result of this week’s order, according to the filing. It said those businesses will continue to be managed by Ecoasis Bear Mountain Developments as “oppression litigation” cases between the owners are before the courts.

The filing also notes the receivership order will not have an impact on the arbitration proceedings between Ecoasis Resort and Golf LLP and Bear Mountain Resort & Spa Ltd., BM Management Holdings Ltd. and BM Resort Assets Ltd.

However, the receiver said Ecoasis Bear Mountain Developments is required to provide access to the property and records and to co-operate with requests.

The receiver will have authority to enter into agreements, engage consultants, appraisers and agents, auditors, accountants and managers, and to lead any pending legal proceedings. Under certain financial thresholds, the receiver will have the power to sell or lease property and can apply for permits and licences required by any government authority.

The ruling states that Alverez & Marsal Canada Inc. will present a report and its recommendations for the property to the court around Oct. 25.

It is expected to include an inventory of assets, undertakings and properties of the companies and a report on the management and business of Ecoasis Bear Mountain Properties, and whether it should continue to manage the business and “if so, on what terms, if any,” said the ruling.

A hearing for the receiver’s counsel to speak to the report, and for any applications resulting from it or any relief, is scheduled for the Supreme Court in Vancouver on Nov. 6. Before Dec. 2, the receiver is expected to deliver a report of a sale and marketing process to be approved by the court.

Sanovest claimed earlier it hasn’t received any audited financial statements since the end of 2018 from the development partnerships and that it will be unable to meet the bills as they come due, including $542,000 for accounting and legal services, a $300,000 default payment to the City of Langford for the Bear Mountain Parkway roadwork and $2 million owing vendors and other creditors.

Property taxes on Bear ­Mountain lands for 2024 were $1.6 million.

This week’s court ruling sets terms for the continuation of services at Bear Mountain, including contracts for goods and services, banking and payroll through the direction of the receiver.

All funds and payments received, including the sale of property, will be deposited into one or more new accounts to be opened by the receiver and held to be paid according to terms of the court order, the ruling said.

** As published in the Times Colonist | September 20, 2024

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OTTAWA - Finance Minister Chrystia Freeland has announced changes to mortgage rules she says are aimed at helping more Canadians to purchase their first home.

"It is going to put the dream of home ownership in reach for more young Canadians," Freeland told reporters Monday, announcing changes she said will come into force in December.

The price cap for insured mortgages will be boosted for the first time since 2012, moving to $1.5 million from $1 million, to allow more people to qualify for a mortgage with less than a 20 per cent down payment.

"That is going to have a real impact for thousands, even millions of Canadians," Freeland said.

The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.

On Aug. 1 eligibility for the 30-year amortization was changed to include first-time buyers purchasing a newly built home. Freeland said this change better reflects the housing market while "giving first-time homebuyers a leg-up."

She pushed back on suggestions that the measures will only further inflate housing prices. She said boosting the price cap for insured mortgages reflects how Canada's gross domestic product has grown over years.

"It needs to keep up with the increase in the size of the Canadian economy," Freeland said. "That's just a recognition of economic reality."

Justice Minister Arif Virani is also releasing drafts for a bill of rights for renters as well as one for homebuyers, both of which the government promised in its budget five months ago.

Virani says the government intends to work with provinces to prevent practices like renovictions, where landowners evict tenants and make minimal renovations and then seek higher rents.

Ottawa also wants to boost transparency by making sales price history available on title searches, and protect potential buyers from blind-bidding.

"What we find is important is ensuring that there's a level playing field when you're trying to rent a place to live, or to actually get to the stage of buying a home," Virani said.

The government is touting the measures it announced Monday as the "boldest mortgage reforms in decades," and it comes after a year of criticism over high housing costs.

The Liberals have been slumping in the polls for months, including among younger adults who say not being able to afford a house is one of their key concerns.

Freeland says she plans to table a Fall Economic Statement but would not say when. Such a move may lead to a confidence vote in the Commons, following the NDP ending a formal agreement to prop up the minority Liberal government in such votes.

She also said the government is "absolutely not" considering a home-equity tax on primary residences above a certain value, when asked about government engagement with a group that promotes such a policy.

This report by The Canadian Press was first published Sept. 16, 2024

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