Whistler – The Phoenix temporary housing project all but died this week after local organizers made the “difficult” decision to end the relationship with modular housing supplier SG Blocks because of the company’s difficulties in securing financing.
But a small glimmer of hope remains that the project could be saved if, by the end of the week, another housing supplier that wants to take the project and run with it can be found, said Louise Lundy, former Chamber of Commerce president and director of the Whistler Phoenix Housing Corporation.
“I think it’s a huge long shot,” she said Wednesday (Sept. 3). “We’ve run out of money, time and resources to throw at the project.”
More detailed information on the project is available now than when the original request for proposals went out in April, but a new supplier would need to show it has the financial capacity to pull off the project within short timelines, Lundy said. Plus, a new design would require a new development permit.
However, a couple of suppliers out of the original 22 proposals received for the project have expressed interest in looking at the project again, she said. The Chamber and Phoenix board have set Friday (Sept. 5) as a deadline for proposals to see if there’s any possibility for another supplier to take the project over.
“The plans are there, the leases are signed… There’s a model there for somebody to slot in and make this work,” Lundy said.
Nigel Harrison, manager of marketing and sales for B.C.-based Shelter Industries, contacted Lundy after reading about the project’s difficulties in last week’s Question. He said despite only two days’ notice to put together a proposal, and a challenging project schedule, there’s a “possibility” the prefabricated building manufacturer could help out.
“I think it would be achievable,” Harrison said Wednesday (Sept. 3). “Whether or not it could be up and running by Nov. 1, I’m not sure.”
Shelter Industries was one of the 22 companies that submitted an initial proposal for Phoenix. Harrison said he’s waiting for clarification from Lundy on current criteria for the project, and he said the need for new development permits could delay a new supplier.
Lundy said if Friday comes and no viable options have materialized, the Phoenix project will be “wrapped up” and all the local business operators who have signed up for the project’s 308 beds will receive a full refund of their deposits.
Though a bit of hope remains, she said she’s feeling “hugely disappointed” and “heartbroken” that, despite many obstacles, the project came so close to being realized.
“We’ve all worked so hard on this,” she said. “It’s been a real labour of love; it’s been hugely challenging.”
Brian Good, Whistler Blackcomb’s (WB) general manager of Employee Experience and a member of the Phoenix board, said though he’s also “disappointed,” he stands by the board’s decision to end the relationship with SG Blocks. The company came across as being able to easily achieve the project and Good said he was “taken aback” when its officials came forward with financing problems at the “11th hour.”
Even with WB’s offer to pay the 18 months of rent for its 42 beds up front, close to $500,000, SG Blocks said it wasn’t enough. Lundy said the company was asking more businesses prepay rent and provide unsecured deposits — terms with which the Chamber wasn’t comfortable.
“It just became obvious that they (SG Blocks) weren’t in a situation to make this happen,” Good said.
Big Rockin' Kev Says... 
This is very difficult for us to comprehend that a company such as SG Blocks is having such difficulty with their projects.
Any company with investors and partners such as ConGlobal, Lawrence Group, and Alberici Constructors should be easily able to get funding on such a prime project. To fall short to such small amount of money is a concern to us.
Fortunately their problems is not connected to other ISBU shipping container distributors, building contractors or fabricators. All other's in the industry seem to be quite strong even with the economic challenges in the U.S.
We hope they can make the necessary modifications in their organization to give Dave Cross the success he deserves.
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September 20, 2008 @ 7:54 pm PST