Buyer finally found for Yellowknife Twist and Shout building
A buyer has finally been found for a Yellowknife building that was put up for sale in an attempt to recoup money loaned by the N.W.T.'s taxpayer-funded business development agency.
The 50th Street building is the former home of Twist and Shout restaurant and bar. In 2015, the Northwest Territories Business Development and Investment Corporation (BDIC) loaned the owners $899,500 to buy the building and set up their business.
In 2017, with the business faltering, the BDIC paid an additional $68,000 to a contractor who had not been paid for renovation work on the property, plus $54,120 to the City of Yellowknife to cover unpaid taxes and utilities.
The BDIC then got a court order to sell the building in an effort to recoup the money it was owed, which amounted to just over a million dollars.
It initially ran newspaper ads calling for offers and setting a minimum price of $900,000. When that did not work, it listed the building with a local realtor at an asking price of $950,000.
Three months later, in March of 2019, there was an offer of $900,000. But the buyer could not get a loan to purchase the building and the deal fell through. In the ensuing months the listing price was dropped to $900,000.
BDIC would hold another mortgage on building
According to court records, the realtor estimated the building could be sold for $850,000.
"That proved overly optimistic as the property was marketed locally and nationally for 376 days and shown to over a dozen prospective purchasers before receiving just one offer," said real estate agent Jim Weller in an affidavit filed in court.
"I understand the plaintiff wants to sell the property as soon as possible due to the high costs of upkeep."
The BDIC is now seeking court approval to accept an offer of $650,000 from a purchaser named Xiachen Shi. The court is scheduled to consider approving the offer at an appearance on Feb. 21.
If the deal goes through, BDIC will not be receiving all of the purchase price in cash.
Under the terms of the deal, Shi put down a $65,000 in December to secure the purchase and will pay another $65,000 when the deal closes. The BDIC will give Shi a mortgage for the remaining $520,000. The terms of the mortgage were not revealed in the court documents.
