A subsidiary of the Katz group has launched a lawsuit against an Edmonton Homeless Organization.
A claim was filed by the Ice District Corporation, which is a part of Katz Group Real Estate Inc in Edmonton’s Court of King’s Bench back in November, alleging that it should be held responsible for a conditional $5 million donation that was promised as a portion of Boyle Street Community Services fundraising campaign towards a new location.
Okimaw Peyesew Kamik , the Cree – Nêhiyaw name for the King Thunderbird Centre and the cost of the relocation is at the heart of the legal dispute.
The Katz group is arguing that Boyle Street shouldn’t be owed the $5 million “ Back Stop Gift” as the Boyle Street did not put forth enough fundraising on their own part towards the new building with a projected total cost of $28.5 million with approximately $8.5 million needed to move forward.
The initial agreement which included the back stop gift was put in place in case Boyle Street was unable to meet their own fundraising goal with the amount decreasing if Boyle Street was able to raise $8.5 million on its own.
The Katz group is arguing that Boyle Street was relying on the gift and did not fundraise enough as initially agreed upon which the group claims breached the contract.
The social agency has said that they were declined support from the city, the province for grant funding but a federal grant is still undecided.
Allegations within the civil claim have yet to be proven in court, however both parties have made statements indicating that a mutual resolution is being sought to resolve the matter through a private arbitration process.
Construction of the new facility is expected to be complete in early 2025.
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