THUNDER BAY — The owner of the site of the former Finnish Labour Temple is citing a lawsuit and other factors for an extended pause in reconstruction on the historic Bay Street property.
Brad McKinnon of BK Realty Investment Management confirmed Tuesday that work on the Finlandia condominium project will not proceed this season, but said he fully intends to complete the development.
The key contributor to the delay, he said, is "a major legal battle" over the cause of the fire that destroyed the original structure in December 2021.
McKinnon said a dispute with a party that was doing some work on the project must be settled before construction can resume, or he at least needs to "have an idea of how it's going to be settled."
In an interview with TBnewswatch, he added later that "It wasn't me that burned this building down ... My company did not burn this building down. It was not an insurance job. It was a tragedy that this happened, but we are dealing with it the best way that we can."
Allegations contained in a statement of claim for damages that his company has filed have yet to be proven in court.
McKinnon said other contributors to the halt in construction include significant increases in the cost of building materials, high interest rates, and a shortage of skilled labour.
"The dynamics on the project, the costs on the project, have changed. The bottom line has changed. Do we still intend to finish it? Absolutely, but just not this year. We're hoping that interest rates ease back late this year or early next year, and that [the lawsuit]...will be resolved by then."
In the meantime, he's asking community members who are anxious to see the redevelopment of the property completed to trust that he will see it through to completion.
"The takeaway message that I really want people to understand is that our intentions are sincere to rebuild what was lost, and that I urge people to be patient and understand the current situation ... The Finlandia will be rebuilt. And it will be a legacy building that will stand for another hundred years."
McKinnon noted that he's relocated from southern Ontario to Thunder Bay because he believes in the future of the city and region, and that he plans to live here over the long term.
"I'm not going anywhere," he said.
Next month, he expects to have workers tidying up the construction site "to make it look less like a junkyard," but he said that underneath the tarpaulins lies $3.5 million worth of expenditures- to-date.
"The work that's been done there is significant. We have underground parking for almost 20 vehicles, 5,000 square feet of storage space, the elevator shaft and the first floor is poured. I mean, the building is ready to frame from the main floor up. I would focus less on what hasn't been done, and really celebrate what has been done in such a short period of time" in comparison with other similar projects.
The Finlandia Co-operative, which plans to lease space in the new building to reopen the iconic Hoito Restaurant, has not yet commented on the construction delay.
A spokesperson said earlier this month that the group was anxiously waiting for an update.
