Lake Manitoba Narrows cottage lots could go up for auction — again

Hey there, time traveller!
This article was published 17/06/2016 (3730 days ago), so information in it may no longer be current.

Cottage lots at Lake Manitoba Narrows could go up for auction again, and again the owner vows he will stop it.

The Gillis family that sold its land to Narrows West Development Inc., a company owned by developer Chad Olafson, is foreclosing on the company for failure to make payments.

Olafson still owes the previous owner $413,000 on the $1.8 million land purchase made about a decade ago.

“There’s been a default. Proceedings are in place to foreclose,” said Robert Tyler, lawyer for the Gillis family. An auction is scheduled for some time in August.

“Mr. Olafson has not done what he agreed to do. It’s impacted the Gillis family most. So we felt in spite of the fact there had been a good relationship with him, when he failed to meet his obligation, we had no choice,” said Tyler, who is with law firm Aikins, MacAulay & Thorvaldson.

Olafson vows he will make the payment before the properties go to auction.

“There will not be an auction,” said Olafson in an email. “We are working hard to get them their final payment. We anticipate this to be in July, or early August.”

Earlier this year, 61 lots owned by Olafson companies were scheduled to be auctioned in a tax sale for failure to pay $350,000 property taxes. A deal was struck with the RM of Alonsa less than 24 hours before the auction. That deal is a schedule for Narrows West to make repayment to the RM.

There are about 45 properties slated for auction. Many of the properties are not properly developed with municipal approved roads, or transformers for electrical hookup.

This time, the lots are to be sold in bulk, with bidding by developers.

The Gillis family has filed notice it is exercising the power of sale. The next step is to obtain an order from the land titles office allowing the family to sell the land by parcel. That will go forward next week.

Tyler said the family’s order is to first sell by bulk, then sell whatever is left as individual lots.

Some of the lots have been sold but buyer Narrows West has not forwarded title to all buyers. Tyler would not say how many lots are in that position.

The estimated 45 properties in the default to the Gillis family were either listed, or in some cases sold, for about $20,000 each. A bulk sale at that price would return about $900,000.

However, it’s likely any bidders will be looking for a bargain, especially since not all the development work is completed. Property taxes on most lots are under $400 per year.

The time and place for the auction has not yet been set. The Lake Manitoba Narrows is about 200 kilometres northwest of Winnipeg, on Highway 68.

bill.redekop@freepress.mb.ca