Bad news for anyone in Wasaga Beach looking forward to a 500 million dollar development at Beach Area’s 1 and 2, and for businesses at Beach Area 1.
Mayor Cal Patterson says that Blue Beach Corporation has declared bankruptcy.
He says the town was issued a petition of bankruptcy and insolvency on Friday from the Ontario Wealth Management Corporation.
Patterson says that group forced Blue Beach into bankruptcy, and there is now a meeting to appoint a receiver on Wednesday.
He says it will be business as usual at Beach Area 1, and adds that beach front bars and stores have been hiring staff, so there doesn’t appear to be any disruption.
Patterson says that Blue Beach didn’t make their mortgage payments, or pay any interest on a number of properties that they owned and mortgaged “to the hilt”.
He says that the town was served the petition because there are outstanding water and electricity bills, which Patterson adds have to be paid before any of the properties change hands.
He says that the receivers intend to sort the whole mess out, and then move forward, but Patterson adds that there are lots of unhappy people out there who have invested money that want to get paid.
Patterson tells us that he believes everything will be business as usual at the stores and businesses at Beach 1, and the only change will be that they will be operating under a receiver instead.
He also says that to his knowledge, all the stores are going to be open as well.
Patterson says now that because there will be people “who know how to run a business” in charge, there is great potential for the Dome.
He says this will be a wonderful summer, and has already been approached by people looking to lease the Dome.
Patterson says that Council will discuss the possibility of buying up properties if the opportunity comes up, but says his only focus right now is making sure everything is open, and running for this summer.
He says that Blue Beach probably owes around 40 million dollars, and the properties they control are probably worth around that amount.
And Patterson says there isn’t any astute business man who will lend money to anyone when there’s no collateral, but if they do, shame on them.
He says that he had an idea several months ago that the project was in trouble when on a number of occasions, the investors could not show the town their business plan.
It was three years ago the would-be developers brought plans to the town for a 4-season hotel including an indoor ski hill.
Since then the plans changed to include an indoor waterpark and two hotels.