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Owner of Elie property suing McDiarmid Lumber for $6M

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A decision by McDiarmid Lumber to close its distribution centre in Elie last fall has come with a financial price.

The corporate owner of the sprawling property is suing McDiarmid Lumber for rent not paid and is threatening to ask the court for more than $6 million – total rents due, according to the terms of the 10-year lease.

McDiarmid Lumber closed the Elie property in the fall, along with several others as part of an internal restructuring.

The owner of the property, a numbered company based in Winnipeg, recently filed a statement of claim alleging McDiarmid owes it $146,800 in missed rental payments plus another $200,000 in operating costs.

The numbered company states that under terms of the rental agreement – a 10-year deal signed in 2010 – McDiarmid agreed to make monthly payments of about $70,000 on the first day of each month until the end of the agreement.

The numbered company alleges that McDiarmid is default under the lease and the owner is now entitled to all rents due until the agreement expired, more than $6 million, including interest.

The numbered company states that McDiarmid has refused to make any rental payments since it abandoned the 20-acre, 120,000-square-foot facility last fall.

Statements of defence have not yet been filed. The allegations have not been proven in court.

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