Hopefully this is the beginning of the end for this ill-conceived development….

Another lawsuit filed against Rink

By Tim Petruk
October 12, 2010
Kamloops This Week

The embattled builder behind a controversial Kamloops development is facing another challenge.

Mike Rink, head of the Kamloops-based New Future Building Group, has had a civil action filed against him in B.C. Supreme Court in Kamloops, with a group of five sub-contractors and suppliers seeking in excess of $500,000 in connection with a project Rink is developing in the Shuswap.

This latest lawsuit follows a claim filed in B.C. Supreme Court by Denny Segal, a purchaser of a unit in Rink’s Mission Hill development in Kamloops, seeking the return of his $32,000 deposit.

The five companies ‘ Westend Shuswap Concrete and Gravel, Engel Electric, Highland Powerlines Ltd., L. Coster Land Surveying and Rona Revy ‘ say Rink and his wife and business partner Marnie McEachern, failed to pay them for jobs completed at the West Beach Village project, near Lee Creek at the Shuswap, in 2008 and 2009.

According to documents filed at the Kamloops Law Courts last week, Rink and McEachern received more than $13 million in financing for the project.

‘A portion of the said funds were specifically designated by [the lender] for payments of the accounts of the plaintiffs in this action and of other contractors for the supply of labour, materials and services,’ reads a notice of civil claim claim, filed on behalf of the five companies.

‘[Rink and McEachern] misappropriated the said funds by converting them to uses other than payment of the accounts of the plaintiffs and other contractors engaged by the defendants in connection with the West Beach Village project.’

Specifically, the notice of civil claim alleges Rink and McEachern used the money to ‘increase their equity’ in two properties ‘ a home at 263 St. Paul St. West in Kamloops and the Parkside Estate Retirement Residence in Chase.

The document says both properties are legally owned by McEachern.

‘McEachern and Rink . . . directed and/or participated in the . . . misappropriation and misuse of the funds in a manner contrary to their stipulated purpose,’ it reads.

The notice of civil claim alleges New Recreations Ltd. ‘ doing business as Northstar Builders, which Rink and McEachern own and operate ‘ owes $42,240.30 to Westend Shuswap Concrete and Gravel for concrete work at the West Beach Village project.

It also alleges $317,914.47 is owed to Engel Electric for underground electrical work done at the site, while $115,570.88 is still outstanding for Highland Powerlines’ above-ground electrical work.

The document says Northstar owed $57,645.31 is owed to L.Coster Land Surveying for work they did at West Beach Village, while Rona Revy is seeking $15,564.74 for unpaid building material bills.

None of the allegations have been proven in court.

Rink has been under fire in recent months, with work having ground to a halt on his large Mission Hill development in South Kamloops.

Work was stopped on the development early this summer, after Rink and New Future ran into financing issues.

The first phase of Mission Hill ‘ which stands unfinished above the lower part of the Summit Connector ‘ was supposed to be complete by July, but Rink told KTW bank lenders decided to suspend funding until they reviewed the project.

Employees on the project set up pickets in June after they said they hadn’t been paid in weeks.

Residents living on neighbouring streets are also upset with the project, claiming assessed home prices in the area have fallen by as much as $100,000 since the development was approved by the city in 2007.

According to an email obtained by KTW from the local BC Assessment office to an area homeowner, the lower assessed value is a direct result of the Mission Hill development.

The email, dated June 24, 2010, states the properties in the area of Mission hill have a view adjustment built into the land value and, now that the view is lost, an adjustment has been applied to account for the loss of market value.

The email notes those types of homes normally sell as ‘view properties.’

Rink had yet to respond to the notice of civil claim as of KTW press deadline.