-Project could be up and running again in one to two months: developer-

OSOYOOS TIMES-November 19, 2008-

By Karen KnelsenrnOsoyoos Times

Greg Rholand, from the Kingsway Group of Companies, developer of the Indigo project on Cottonwood Drive, has confirmed that plans have been put on hold for completion of the project “ at least temporarily.
Right now we're just having some financial difficulty with the credit meltdown. It's just been difficult to get some of the financing commitments to complete, said Rholand, in a phone interview last week.
He said the project is slated to start back up within a month or two.
We think about 30 to 40 days right now.
He said the project, which promises a total of 171 units in seven storeys of concrete and steel, is slightly over budget, but he's confident some reductions can be made.
Darwin Construction has been hired to work as the construction managers on the project, and Herb Wycherley, one of the principles of Darwin, said they are willing to wait on the Kingsway Group to get their house in order.
They are dedicated to building that project. They truly want to build it, Wycherley said.
To do that, Kingsway is reviewing the entire project to try and figure out where they can make reductions in cost.
Darwin Construction is also working on the Watermark project for rareEarth Project Marketing, and James Askew, president and founder of rareEarth, said that project is still coming along nicely.
Watermark is in an extremely good state right now, he said. The development is on track.
He said over 80 per cent of its 153 one, two and three bedroom units have already been sold, with closing dates in early 2009.
We made most of our sales in 2006, 2007 for the development.
He admits there has been a slow down since then, but he believes some things will always retain their value, and it's the old real estate adage - location, location, location - that he's counting on as a golden goose.
The prime locations will retain their value, he said. This is a prime location in a prime region of B.C. and the real estate values will be a lot more stable there.
Local contractor David Klassen has his doubts about the future of the Indigo development.
Sometimes when they say things like that, there's a bigger story coming, he said, speaking generally about the delay.
But he knows from experience that obtaining financing in today's market is a challenge. One of his own projects still owes him money. He said the developer he was working for in that case is facing similar financing issues as Kingsway Group.
Otherwise though, he said the personal housing market, which is his main source of business, is still doing well.
As for Rholand, from Kingsway, he said he's confident they can achieve whatever they need to in order to make sure the Indigo development gets built.
I think we're going to be in OK shape.rnreporter@osoyoostimes.com