Stadium Plaza: the builders' liens that stayed ahead of the mortgage

Before CMLS Financial Ltd. would fund a $13,260,000 mortgage on Stadium Plaza, a six-storey rental apartment building in the Parkdale area of Edmonton, it required that the builders' liens and certificates of lis pendens registered against the title be discharged. The borrower advanced enough money to discharge them, according to the lender's evidence. Then, in the words of Jeff Burt, CMLS's director of special servicing and loan workouts, "for reasons unknown to CMLS, steps were not taken to have the Priority Liens and CLPs discharged and the funds were returned to 226 Alberta. As a result, the CMLS Mortgage was funded, and the Priority Liens and CLPs were not discharged," per the Affidavit of Jeff Burt, Aug. 12, 2026, paras. 1, 40–41. Mr. Burt is advised by the lender's counsel that the matter has been referred to the Alberta Lawyers Indemnity Association, the indemnity insurer for the province's lawyers, and that counsel has been appointed, per the Affidavit of Jeff Burt, Aug. 12, 2026, para. 42.

The mortgage was registered on January 29, 2025, and the borrower did not repay it when it matured on January 1, 2026. On August 25, 2026, on the application of CMLS Financial Ltd. in its capacity as trustee of Computershare Trust Company of Canada, Justice Harris of the Court of King's Bench of Alberta, sitting at Edmonton, appointed Grant Thornton Limited receiver and manager of the building's owner, 2264356 Alberta Ltd., under s. 243(1) of the BIA, s. 13(2) of the Judicature Act, s. 99(a) of the Business Corporations Act and s. 65(7) of the Personal Property Security Act, in Court File No. 2603-17850, per the Receivership Order, Aug. 25, 2026, para. 2. The lender put its debt at $13,613,618.20 as of August 7, per the Affidavit of Jeff Burt, Aug. 12, 2026, para. 29.

The owner, the building and the loan

2264356 Alberta Ltd. was incorporated in May 2020 and carried the name GH Development & Construction Inc. until July 29, 2024; the lender describes it as a construction and development company. Its directors are Wei Han and Xiu Ling Cai, and its voting shares are split 50/50 between two holding companies, 1839876 Alberta Ltd. and 1733280 Alberta Ltd. All four gave guarantees of its debts to CMLS, per the Affidavit of Jeff Burt, Aug. 12, 2026, paras. 9–10, 17, 21 and Ex. "B".

The building stands at 11228 86 Street NW. The City of Edmonton classes it as multi-residential and records it as built in 2021, per the Affidavit of Jeff Burt, Aug. 12, 2026, Ex. "Q", and the receiver counts 78 units, per the Notice and Statement of the Receiver, Sept. 2, 2026, para. 3. A Peoples Trust Company mortgage of $12,297,225, registered in May 2023, came off the title on February 5, 2025, a week after CMLS's went on, per the Affidavit of Jeff Burt, Aug. 12, 2026, paras. 31–34.

The CMLS mortgage, signed on November 26, 2024, names Computershare Trust Company of Canada as chargee, with CMLS Financial as its servicing agent. It secures $13,260,000, interest only, payable on the first of each month, with the balance due January 1, 2026. Interest is the greater of the Royal Bank of Canada's prime rate plus 1.65% and 7.35% a year, compounded monthly; the mortgage records prime at 5.95% on November 18, 2024, per the Affidavit of Jeff Burt, Aug. 12, 2026, Ex. "E", boxes 7 and 9, Sched. "A", s. 1, and Ex. "P". Collateral security includes a general security agreement over the building's furnishings, equipment, accounts, records and insurance claims, an assignment of rents and leases registered on title, and an assigned interest reserve of $1,007,760, and the mortgage carries a contractual right to appoint or seek a receiver, per the Affidavit of Jeff Burt, Aug. 12, 2026, paras. 15–16, 22–23.

Six liens, and the litigation behind them

The six liens registered ahead of the mortgage date from the first weeks of 2024: Above the Line Construction Ltd. for $2,500,000 on January 10; Urban Kitchen Cabinets Ltd. for $174,982 on January 11; Pro-Western Mechanical Ltd. for $318,384 on January 19; Stone Solutions Inc. for $53,130 on January 20; 307086 Alberta Ltd. for $94,312 on February 3; and Constructive Solutions (Edmonton) Ltd. for $31,907 on February 13. Five of the lienholders registered certificates of lis pendens, per the Affidavit of Jeff Burt, Aug. 12, 2026, paras. 37, 43. CMLS was not a party to any of the lien actions and was not given notice of them, and it says it is "still in the process of uncovering the status of the Lien Actions," per the Application for the Appointment of a Receiver and Manager, Aug. 14, 2026, para. 37.

Above the Line sued GH Development and both directors on February 27, 2024, to validate its lien, claiming $2,454,955.15 for the work and $1,084,352.74 as holdback money held in trust. Its application to validate the lien was adjourned sine die on July 29, 2024, and the lender knows of no decision on the merits. In the Stone Solutions action, Applications Judge Summers granted summary judgment on November 28, 2025, corrected on December 19: the lien was declared valid, judgment was entered for $70,946.81 including $12,500 in costs, and the lands were directed to be sold under the Prompt Payment and Construction Lien Act, per the Affidavit of Jeff Burt, Aug. 12, 2026, para. 44(a), (c).

Above the Line then applied, on March 13, 2026, in that action, for an order directing the sale of the lands to it, conditional upon financing. Its application states that it is owed $3,924,085.44 for its construction work and that it had made an offer of $15,800,000, which "exceeds the current fair market value and represents ATL taking $400,000 less than it is owed in its claim against the Lands." It says the owner did not respond to the offer, and that "The Lands are currently under distress with 2 mortgages, various liens, writs and certificates of lis pendens," per the Affidavit of Jeff Burt, Aug. 12, 2026, Ex. "X", paras. 1, 6–10. That application was adjourned sine die. So was Stone Solutions' application of April 23, 2026, to have BDO appointed receiver over the lands under the same statute, per the Affidavit of Jeff Burt, Aug. 12, 2026, para. 44(c)(v)–(vi).

On May 12, 2026, Applications Judge Birkett granted 307086 Alberta Ltd., which operates as Real Property Painting Consortium, summary judgment against the owner and Above the Line jointly and severally for $94,312.75 plus interest and $1,000 in costs, and again directed the lands be sold under the Act. Paragraphs appointing a receiver of rents and profits, and a trustee with power to manage, sell, mortgage or lease the lands, are struck through on the signed order, per the Affidavit of Jeff Burt, Aug. 12, 2026, para. 44(b) and Ex. "U", paras. 2–7. On June 23, 2026, the same applications judge declared Constructive Solutions' lien valid at $31,907. KDH Drywall (2012) Ltd.'s lien and certificate have been discharged, and the owner paid $385,690.01 into court in respect of KDH's action, money the lender understands the court still holds, per the Affidavit of Jeff Burt, Aug. 12, 2026, paras. 44(d), 45–46.

Registered behind CMLS are a $3,045 construction lien, a $36,666 writ for Hello Fire Protection Corp., a $58,446 writ from the Stone Solutions judgment and a City of Edmonton tax notification; tax arrears stood at $587,412.55 on August 10, 2026. On February 4, 2026, Pham Geomatics Solutions Inc. registered a mortgage for $800,000 and an assignment of rents and leases. "CMLS has no information regarding the Pham Mortgage and was unaware of its registration until recently," per the Affidavit of Jeff Burt, Aug. 12, 2026, paras. 35–36, 38–39.