The construction site of the urban hotel located on Boulevard Charest Est has not progressed for more than a year and a half. A fence protects what little of the structure has been built so far.
We confirmed to the City of Quebec that the building permit has now expired.
In interview with The Sundeveloper Marie-Jeanne Rivard confides that debt overcame this 11-story project.
In the documents consulted in the Quebec land register, around ten legal hypothecs appear in the file for an amount of more than 5.4 million dollars.
“I lost all chances of doing the project on my own. I am in the process of finding someone who wants to take it back, whether through legal procedures or not,” indicates the one who weighs her words due to the judicialization of the case.
Before being postponed, the opening of this 40-room hotel was initially planned for the end of 2023. (Frédéric Matte/Le Soleil)
Indeed, several of the creditors have indicated their intention to take legal action in order to receive their dues.
His business partner and site manager, Joël Bourque, did not wish to speak.
On September 17, the general contractor behind Construction TRC took advantage of insolvency laws. Since then, all proceedings initiated against him have been suspended, it is stated in the notice to creditors consulted at the Quebec courthouse.
It owes more than 2.2 million to around fifty lenders, who no longer have recourse under the Bankruptcy and Insolvency Law.
The fall of a project
This project in the heart of the Saint-Roch district was initially scheduled to begin in 2020.
However, it was delayed due to the pandemic, investment instability and inflation, says the promoter.
“It burdens finances to have to support land for two years with a construction project, which already has expenses, but which is not going away,” she says.
The two buildings at the corner of rue du Pont and boulevard Charest Est were only demolished in April 2022.
The construction site at the corner of rue du Pont and boulevard Charest Est a year ago. (Yan Doublet/Archives Le Soleil)
As soon as the excavation and formwork work has begun, the site at 707, boulevard Charest Est is put on hold in May 2023, due to lack of funds.
“I couldn’t find investors who would help me continue.”
— Marie-Jeanne Rivard, founder of Boxotel
The site was partially dismantled in November 2023. Nothing has changed since.
Until Montreal
You should know that Marie-Jeanne Rivard is also the main shareholder of Boxotel Montréal, a 20-room hotel which was built in 2016 and which is still in service.
There too things deteriorated. “Boxotel inc. has been officially bankrupt since October 17,” she announces on the line.
To find out if the difficulties experienced in Quebec City have undermined the financial health of the hotel, Ms. Rivard emphasizes that these are two unique cases.
However, the same challenge reared its head.
“It’s the same problem as in Quebec: it’s the accumulated debts and the private loans with interest that mean that the project took so long to complete,” points out the one who “was not able to honor its responsibilities.
Both in Quebec and Montreal, the hotelier is taking steps to find interested parties who would like to continue the project. However, the rest will be done without her, admits the entrepreneur.
The model of the hotel as imagined for the Saint-Roch district in 2022. (Lemay/Michaud/Archives)
