$100M Cheakamus Crossing loan could be repaid early: Redmond

The head of the development corporation behind Whistler’s new Cheakamus Crossing neighbourhood is predicting that the municipality’s $100 million loan to finance the development’s construction could be fully paid back as early as this fall — a year before it’s due.

Joe Redmond, president of Whistler 2020 Development Corp., said on Tuesday (July 6) that repayment is set to begin now on the loan from the Municipal Finance Authority (MFA), as the first sales of buildings and market lots were finalized last week.

The sale of the new Hostelling International Whistler hostel was recently completed, and the hostel is now fully operational, Redmond said. As well, sales of the first two open market single-family building lots have been finalized.

Sales of the 220 resident-restricted homes at Cheakamus Crossing are expected to begin closing in mid-August, Redmond said. The projection is for all the resident restricted units to be fully sold and occupied by late October.

Despite the expectation that sales of the market lots and townhouses will likely continue for a year or more, Redmond said he’s personally predicting the $100 million loan could be fully repaid by this fall. It’s not due until fall 2011.

Contrary to rumours associated with the continuing opposition to the asphalt plant operating adjacent to the neighbourhood, Redmond said there are “absolutely no” cash flow issues at Whistler 2020 Development Corp.

“We’re bang on our budgets and our projections,” he said.

In fact, a “couple hundred thousand” dollars in savings were just realized after some recent site work came in under budget, he added.

In November 2008 council approved the terms of a maximum $100 million, three-year loan from the MFA to pay for construction of Cheakamus Crossing. In the wake of public outcry over the Alpine Paving asphalt plant, Councillor Ted Milner and others have expressed concerns about possible financial risk to taxpayers if buyers decide not to complete their sales because of the plant.

Redmond said in the year or so since sales of the resident-restricted units began, about 20 to 24 purchasers have said they don’t intend to complete the sale and have walked away from their deposits. But of those, only three have indicated that the asphalt plant had anything to do with their decision, he said.

Most have reported that their circumstances have changed — some have lost their jobs, others decided to leave Whistler, and some have run into financial strain. Redmond said he suspects even those who mentioned the asphalt plant were really backing out for similar financial reasons.

When a buyer signs a release form saying they don’t intend to complete the purchase and forfeit their deposit, the unit is offered to those still on the waitlist to buy in Cheakamus Crossing, Redmond said.

As of Monday (July 5) only one or two units were available for purchase, said Marla Zucht, general manager of the Whistler Housing Authority. Meanwhile, more than 100 families are still on the waitlist to purchase a home at Cheakamus Crossing.

“There’s definitely still strong interest for the product,” Zucht said.

Redmond said the asphalt plant has been operating this year and he hasn’t noticed any smell at Cheakamus Crossing. He acknowledged the decision to move near an asphalt plant is a personal one, but he thinks most people don’t realize the plant “doesn’t really have any influence on the area.”

“They have to make that decision themselves,” he said of buyers. “We can only say we know it’s there and we don’t think it’s a big deal.”

As for sales of the market lots and townhouses, Redmond said marketing efforts are only just beginning. Two of the market lots and one townhouse were sold “a few months ago” — before marketing even began, he said.

Redmond said though it “would be nice” to have all the market product sold in the next year, the development corp.’s business plan for Cheakamus Crossing projects sales of the market lots and townhouses could continue into 2012. He said he’s not concerned about timing or cash flow.

“We’ve budgeted that,” Redmond said.