Sault landlord who owes huge fines also being sued by CIBC for $3.2M

A Sault Ste. Marie landlord who has racked up hundreds of thousands of dollars in unpaid fines over fire and building code violations also stands to lose two of his apartment complexes in a pair of lawsuits launched by CIBC. 

According to court documents obtained by SooToday, Jim Brogno — whose numbered company owes the city of Sault Ste. Marie more than $381,000 in unpaid fines and other costs after being found guilty of numerous by-law offences at two multi-unit rental properties — is also being sued by CIBC for non-payment of multiple loans and mortgages totalling $3.24-million.

CIBC is eyeing possession of both properties — listed in court filings as 342-346 John Street and 634 Connaught Avenue — as part of the two lawsuits. The bank is also seeking interest on the defaulted mortgages and legal costs.

None of the allegations have been proven in court and statements of defence have yet to be filed.

The John Street complex — which was previously the site of John Wesley United Church before being converted to apartments — was initially acquired by a numbered company listing Brogno as its principal with the aid of two mortgages supplied by CIBC. 

The first mortgage and two loans secured through the second mortgage on the property went into default last year, according to the bank’s statement of claim. The lender is now seeking more than $1.95 million from Brogno’s numbered company, with post-judgment interest on the monies owing. 

According to a real estate listing, the 21-unit complex known as John Wesley Apartments is currently on the market for nearly $3 million and is being touted as an investment opportunity in a "great central location" close to many amenities.  

The second property, a three-storey west-end apartment complex situated where Connaught Avenue turns into a dead end, has amassed a debt of more than $1.29 million, according to the lawsuit.

The debt stems from defaults on the first mortgage and two loans that were secured through the second mortgage on the property. 

As SooToday previously reported, Brogno's numbered company already faces $180,000 in unpaid fines for seven fire code violations at John Wesley Apartments. Those fines were levied just weeks after the company was slapped with $120,000 in fines for fire code offences at another property, 314 Albert Street East. 

A fine of $850 was also applied to 634 Connaught Avenue late last year after the property owner was found guilty of failing to comply with an order from the city’s chief building official in October 2020. 

None of the aforementioned fines have been paid within the court-imposed 30-day deadline.   

A lawyer representing CIBC declined to comment on the lawsuits. Brogno has not replied to repeated messages left by SooToday seeking comment.