Press Release
May 1, 2001
CALGARY, AB -- The Officers and Directors of Canadian Destination Properties Inc. (CDPI) wish to update its shareholders
on refinements to the Company's business plan, its development and financing progress and CDPI's expectations with
respect to commencement of trading of the Company's common shares on the Canadian Venture Exchange (CDNX).
The amalgamation of Canadian Destination Properties Inc. with Alberta Hotels & Resorts Inc. as the latter's
Qualifying Transaction under the Capital Pool Program was announced June 7, 1999 with closing occurring August
6, 1999 following shareholder approval. The CDNX granted conditional approval of the amalgamation on June 21, 1999
and required that CDPI fulfill three principal conditions before approving the commencement of trading of CDPI's
shares. These conditions were to complete a 50% presale of the initial phase of 64 townhomes, which was achieved
in September 1999, the arrangement of firm commitments for development financing for approximately $10 million
and the execution of a firm construction contract.
In mid July 1999, the District of Invermere approved the Development Agreement for the Company's major project,
Lake Windermere Resort, comprising 128 waterfront townhomes, a 142-room hotel and a 100-room lodge, all on 10.6
acres. Development Permit approval was also received from the District for the 128 townhomes. An approval condition
from the District of Invermere was to have the initial 128 units operate as a hotel with a "mandatory rental
pool", which created buyer resistance and significant project and purchaser financing complications. The marketing
launch was very successful generating over $8 million in purchase offers but purchaser financing proved almost
impossible.
As a solution to the "mandatory rental pool" problem, the potential of fractional ownership to better
meet both the needs of property buyers and the objectives of the municipality was recognized by management. Consequently,
a new planning and approval process was initiated in order to secure approval for fractional ownership with reduced,
yet still mandatory, rental pool time requirements. Fractional ownership was approved in April 2000. This necessitated
replacing the previous development and purchaser financing arrangements, as they were not compatible with the fractional
ownership structure.
A condition of providing a firm financing commitment for the project was for CDPI to obtain District approval for
the removal of their requirement for a mandatory rental program. This process was initiated with the District administration
and Council and progressed through a public hearing where CDPI received strong support from the community. Unexpectedly,
Council declined immediate approval to eliminate the mandatory rental pool last November by a slim majority. Indications
are that the matter could be reconsidered, provided all other elements to commence immediate construction are in
place.
In view of the complications presented by this turn of events, CDPI's management and Board has responded by broadening
the scope of the Company's business to include the offering of undivided fractional interests (UDI's) in its Lake
Windermere Resort (LWR) and Klahanie Destination Resort (KDR) development properties. The Lake Windermere Resort
property is an attractive lakeside site of approximately 17 acres in Invermere BC. Klahanie Destination Resort
is a picturesque 36-acre seashore site located in the heart of the Sea to Sky Corridor, just 45 minutes from Whistler,
opposite Shannon Falls Provincial Park.
The total gross revenue potential of the sale of undivided fractional interests in LWR and KDR amounts to $30,000,000.
The required prospectus has been completed for each property and filed with the appropriate regulatory authorities.
Marketing has been successfully launched for both properties.
By offering undivided fractional interests in its properties, CDPI is positioning itself to accelerate its profitability
and build up the value of its corporate equity and liquidity in anticipation of opportunities to provide development,
financing and management services to its investor clients as its projects mature. CDPI is the parent company to
four real estate acquisition companies and four service companies that specialize in all aspects of property development
including product financing, marketing and sales, property management and development. The Company's ultimate objective
is to be the Professional General Partner of choice for its investor clients. CDPI is presently involved in four
major projects; Lake Windermere Resort in Invermere BC, Klahanie Destination Resort in Squamish B.C., Garibaldi
Village mixed use development project also in Squamish BC and McLellan Ranch of Rocky View at Chestermere Lake
Alberta.
CDPI's management and Board believes the sale of undivided fractional interests in its properties will provide
both a strong foundation from which to grow and an opportunity to provide additional value to the Company's stakeholders.
As of April 20 2001, CDPI has received gross proceeds in the amount of $877,700 from the sale of UDI's in its LWR
and KDR properties, and is very encouraged by the positive response from the market to date.
CDPI will be providing a copy of its updated business plan and recent financial results to the CDNX to facilitate
a review of the conditions to be met by the company before commencement of trading of the Company's shares on the
Exchange.
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy
of this release.
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For further information
Dwight McLellan, President & CEO, Michael Hawitt, VP Corporate Development, Phone: (403) 244-1155, Fax: (403) 244-1274, E-Mail: cdpi@cadvision.com Chairman: Mac D. Campbell, Phone/Fax: (250) 427-0175, E-Mail: maccam@rockies net
SOURCE: Canadian Destination Properties Inc.