SUPREME COURT APPROVES SALE Pinecorp building gets new owner NORTH VANCOUVER’'S long-vacant Pinecorp Research Building has a new owner. Bs TIMOTHY RENSHAW News Reporter Purchase of the building for $4.1 million by Burnaby’s 267 Esplanade Holdings Ltd. was ap- proved in mid-August, Gama Construction Lid. owner Stan Milacek, the majority partner in 267, said the purchase was made because ‘it was the only chance we had to protect all the interests in- volved in the building.” Gama, the Burnaby contracting company in charge of constructing the $10 million Pinecorp building, was left holding the financial bag when assets of the Pinecorp Research and Pinecorp Energy Research Corporations were seized by Revenue Canada Feb. 6. Milacek’s company, the largest creditor of Pinecorp next to Reve- nue Canada, was owed $2.9 mil- lion after Pinecorp’s collapse. A first mortgage on the Pinecorp building of $1.1 million was held by Aquilini Investment Group Inc., which has since been paid out. Appraisal of the building re- quested by Revenue Canada placed its value at $6.9 million. That fig- ure was later disputed by another appraiser who said the potential rental value of the building's labo- ratory space was overestimated. Effective July 20, the Pinecorp building’s sale to Longfellow In- dustries Ltd. for $4.6 million was approved by the Supreme Court of Canada. But Longfellow, 50 per cent owned by Gama. was unable to ar: tange financing for the purchase. Resenue Canada originally tiled writs of S@ millon und $12 million against the (wo Pinecorp corpora tions. With) interest. the total amount sought in Revenue Canada’s seizure was close to $20 million. Pinecorp was formed in 1984 ay a research and development com- pany finaneed by investments amassed through the now defunct federal Scientific Research Tas Credit (SRTC) program. Conceived as an incentive to en- courage investment in Canadian research development, SRTCs provided companies that were hop- ing to raise research funds with tax credits Chey could exchange for cash. Tax credits to investors amounted to 50 cents on every dollar invested. In turn SRTC companies could cash in their cred- its for half of each dollar invested, plus a premium. The program, which has cost Canada close to $3 billion in lost tax revenue, official- ly ended in 1985 after the gov- ernment found much of the research being carried out under the program was not legitimate. In Pinecorp’s case an estimated $36 million in SRTC credits was issued to 200 investors. Net cash tealized by Pinecorp and its 14 af- filiated firms came to $14 million, but the companies were still com- mitted to spend $36 million on research, Pinecorp originally promised to undertake a number of research projects that included turning forest biomass into everything from medicines to doughnut flour, and designing a new vessel propul- sion systern. But no marketable products "NEWS photo Neil Lucent SIX-YEAR-OLD Jack Bernard tucks into an ear of corn during Bavarian Festival celebrations at North Vancouver's Edgemont Village. Held Saturday, the festival featured tankards of beer, plates of pretzels and medieys of oont-pat-pah music. were ever produced by the cor poration, Besides the empty North Van. couver research building, Pinecorp acquired North Vancouser’s Bel Aine Shipyard Ltd.. and made a deal to) purchase the | Harvest Fating House. Bel-Aire went bankrupt in January. A lawsuit by the former Harvest has since been filed against Pinecorp over the alleged default on its promise to purchase. Pans Pigeon, Pinecorp secretary and the man considered to be behind the corporation, has been 3 - Wednesday, September 17, 1986 ~ North Shore News for comment to che the ariginal story chronicling Pineeorp’s activities appeared in the Nov. 33, J9Ks issuc of the Newspaper. Coopers & Lybrand Ltd. were appointed interim: receiver of Pinecorp assets Feb. 14 Milacek said all sub-trades in- volved in) construction of the Pinecurp Research building, along with $300,000 in property taxes, hase now been paid by the building's new owner 267. Milacek estimated his company had lost close to $700,000 in its unavailable News since deal co) build the Pinecorp building, The building’s new owners ate now leasing available office and laboratory space at the 267 West Esplanade location. Milacek said an open house for the public and prospective tenants will be held at the building Sepr. 24 and 28 from 2 to § p.m, “We want to show everyone what we have to offer. fe will be a great asset for the community." Fully leased out, the building will provide employment for around 300, according to Milaeck. NEWS photo Stuart Davis NORTH VANCOUVER'S currently vacant Pinecorp Research Building has recently been bought by a Burnaby company. Built with money raised through Scientific Research Tax Credits, the building has never been oc- cupied. Its new owners will be having an open house Sept. 24 and 25. MIKE PINETTE, Vancouver boy who Expo this Sunday. His mother Barb said Mike’s health has improved to the point where he’ll be able to attend the world’s fair. She added Mike made his first day-trip home from the hospital last Saturday. ‘Every day brings something new,”’ she said. Andy Neuman, principal of Ridgeway Elementary School, where Mike was a grade seven student, said a the 13-year-old North suffered extensive burns in a July house fire, will be visiting trust fund for Mike will be discussed at the next parent committee meeting. He said a fund was considered last July, but postponed until school resumed. ‘*He’s progressing beyond the doctor's expecta- the accident.”’ tions,’’ said Neuman. “*He’s just being the strong person he was before Pinette is listed in fair and stable condition at Van- PUBLIC TO HELP GRIEVING PRYCE FAMILY Father appreciates su THE FATHER of Darlene Pryce says the family ap- preciates the community support shown to them since last Wednesday’s murder- suicide. Pryce’s four young children were killed by her husband Ronald, who then committed suicide at the family’s home at 317 West Fourth Street. The North Shore News received a number of calls from local resi- dents asking whether a fund has been set up to benefit the 23- year-old North Vancouver woman. Darlene has been staying with her father Don Duplissie in Maple Ridge. . “It’s been a very dramatic thing for this family,’* said Duplissie. “It's nice of people to offer, but [ feel it's my job to do it. “If someone wants to do some- thing that's quite all right." Andy Neuman, principal of Ridgeway Elementary School, where one of the victims atrended kindergarten, said the possibility of starting a fund for Darlene will be discussed at the next parent committee meeting. “I’ve heard some comment about a fund — whether it’s neces- sary or desirable will be a topic of discussion,’” he said. Weather: Wednesday and Thurs- day, mainly cloudy with isolated showers. Highs near 16°C. couver Genera! Hospital’s burn unit. He suffered third-degree burns to “pproximately 65 per cent of his body in a fire. The cause has not yet been determined. port A funeral will be held later this week at Hollyburn Funeral Home, which Duplissie stressed would be private. INDEX Auto.... Business Classified Ads.......58 Doug Colfins.... Comics .. Editorial Page Bob Hunter. Lifestyles ..... Mailhox.......... Sports... TV Listings.........56 What's Going On....55