Garforth misses second Michigan Soo deadline

Developer Philip Garforth has advised officials in the Michigan Soo that he's unable to meet an extended deadline for buying the I-500 track.

Under a revised agreement reached one month ago, Garforth was to deposit $1,985,000 in an escrow account by now, in preparation for closing of the deal this Friday.

Garforth spoke today with Mayor Anthony Bosbous, advising him that the money is not in the account.

The developer said the hold-up is with his own bankers, but he promised the deposit will be made by the end of this week.

Garforth originally agreed to buy the I-500 site for $2.25 million with a deadline of June 15.

But the developer advised City officials days before that deadline that he was unwilling to keep his commitment to buy at least 45 acres because some of the site is wooded wetland with little development potential.

On June 16, City commissioners agreed to allow Garforth to buy just 39.7 acres for a total price of $1,985,000.

But some commissioners cautioned that they would be reluctant to support any further extensions without substantial penalties to the developer if he failed to meet his July 14 deadline for depositing $1,985,000 in the escrow account.

The next meeting of the Sault Ste. Marie City Commission is one week from today, on July 21.

Garforth claimed to have private financing in place in January of this year, when Michigan Soo City Commission agreed to sell him the I-500 property for a multi-million dollar property development including a 300-room hotel and an indoor water park, all centered around a large biodome.

Garforth originally floated a similar development proposal for the Ontario Sault's Gateway property, but City Council voted to terminate that deal, citing "material breaches of contract" by both the developer and the City's Economic Development Corp.