Auction ends with no one bidding for Neechi Commons

It's business as usual at Neechi Commons after no one bid on the property at auction on Wednesday. 

Assiniboine Credit Union put the building and land up for auction to pay off the approximately $3.8 million mortgage.

"The process now is to hire a commercial Realtor, advertise the building more broadly and start to accept offers," credit union executive vice-president Jennifer Mullen-Berube said in a statement.

The North End grocer, restaurant and gallery has not made any principal payments on its loan from the credit union. It also owes $1.73 million to the province.

Despite the debt, Neechi Foods Co-op is optimistic it can find a buyer who will lease the building back to them.

"Three remain interested, but only two had the wherewithal to deal with the short time frame that was put on by the auction process," said Russ Rothney, treasurer of the Neechi Foods Co-op board.

Rothney said the co-op is in serious negotiation with the two interested parties.

"We have some time to do it properly without our backs against the wall."

Neechi Commons received $3.6 million in startup grants in 2013 from both the province and federal governments. 

"We've just engaged four new senior management and we've got a new business action plan that we're just rolling out," said Rothney. "We're convinced that we'll be able to demonstrate to the people we are talking to that we have long-term viability."

Assiniboine Credit Union officials said it's too early to say how long it could take to sell the property or how much it will go for.

"We hope that [grocery] service can continue in some other way in the future. In the meantime, we are actively looking for offers on the building," Mullen-Berube said.