People who put down thousands of dollars for a new condo unit in Mississauga nearly eight years ago still don’t know when the project will be complete or if they will ever move in.
The project at 4064, 4070 and 4078 Dixie Rd., north of Burnhamthorpe Road, was to be a 14-storey residential complex consisting of 262 units, including 16 four-storey stacked townhouses.
Now just over 90 per cent complete, construction has stopped and the project is up for sale, court documents show.
For would-be homeowners, the saga started in 2018. More than 200 people put down deposits for a unit in the building, called Highlight of Mississauga, expecting to move into units in 2020.
There were delays, and then, the company, Hazelton Development Corporation, filed for Companies’ Creditors Arrangement Act protection in April 2022, and Grant Thornton Corporate Finance Inc. was appointed monitor of the project.
The Companies’ Creditors Arrangement Act is a Canadian federal law allowing insolvent corporations with debts exceeding $5 million to restructure, avoiding bankruptcy. It provides court-supervised protections, allowing companies to pause creditor actions and develop a plan to repay debt.
Court documents show the developer struggled with construction delays, pandemic-related shutdowns, labour and supply shortages and increasing costs. Initially, occupancy dates were pushed from March 7, 2022, to Sept. 1, 2022.
In July 2022, buyers were invited to re-purchase their units at a higher price or get their deposits back. Most residents chose the refund, but there were delays, and in 2023, some residents protested, demanding their money back.
About 40 people chose to stay on with promises the building would be complete soon, one purchaser and his son told INsauga.com on the condition they remain anonymous.
The purchaser paid a deposit of approximately $100,000 for a unit.
Hazelton Development Corporation generated approximately $111.6 million from the sales of the units, court documents show.
When the family was presented with an option for a refund, they were told the unit, despite price increases, was 20 per cent cheaper than newer units on the market. The family dreamed of home ownership and worried they wouldn’t be able to afford a condo unit in another building.
“The way they looked at it, if they don’t continue with this, they are never going to get back in the market,” the son said.
At first, the family believed the building would be complete in a few months and they would move in soon. The court process was repeatedly pushed forward a few months at a time, and families were left to scramble to make plans. Some people may have given notice at their current rental only to find out the project still wasn’t complete.
A photo in a court document shows the progress on the building.
This is a low-income area, the son said, and while the deposit may not seem like much to some, it was a life savings for others. The son feels officials involved in the court process don’t care about the people who purchased units.
“These are people’s lives and money you are playing with,” the son said.
The family recently learned the court has approved the sale of the building. Bids on the project are due May 15, court documents state. The family is concerned that the building could be turned into rental apartments and they would like to get the deposit back. They have asked a court-appointed official, but haven’t received any clear answers.
“But we don’t have clarity on it,” the son said. “There is not really much we can do, we just have to wait.”
Grant Thornton Corporate Finance Inc. did not respond to requests for comment from INsauga.com on the situation.
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