Article content continued

New Summit has been buying property in Saskatoon since at least 2010, when it paid the University of Saskatchewan $10 million for the property and 1920s-vintage brick buildings it later developed into The Crossing.

The company bought more properties, including the Nutana Tower and seven acres of undeveloped land in Stonebridge, in 2013. A year later, it spent about $56 million on seven additional buildings, bringing its total to 942 units.

As of Dec. 14, builders’ liens worth $3.41 million were registered against the company’s “Greyson” building at 241 Willis Crescent and $128,654.09 against its “Cielo” complex next door, at 235 Willis Crescent. Both are new builds on vacant land.

The liens on those properties were registered between August and December by companies, most of them local, specializing in foundations, steel, mechanical contracting, flooring and electrical systems.

Robinson and multiple other sources familiar with the company and its developments in the city said there have been several instances of the company pledging to pay its contractors by a certain date and then failing to deliver cheques.

“That’s extremely sad to hear that there’s companies (out) that kind of dollars,” Robinson said of the liens, one of which is worth $930,935.54. “It makes my ($8,421) look like almost nothing … (But) we did the work and we deserve to be paid.”

It remains unclear why New Summit allowed so many builders’ liens to accumulate or why the firm is marketing its Saskatoon properties. If a buyer for the portfolio is found, the sale would likely be the largest real estate deal in the city’s history.

Speaking generally, Robinson said while unpaid bills and builders’ liens have become increasingly common over the last year, likely due to the effects of weak natural resource prices radiating into the broader economy, money owed is still money owed.

“I would hate to think that all of the Saskatchewan businesses that did work on this project in good faith are just going to lose. That would be a terrible, terrible black eye for all of Saskatoon.”

amacpherson@postmedia.com

twitter.com/macphersona