The long-awaited development project has been put on hold indefinitely.
Image Credit: FACEBOOK/Highlands of East Hill
August 07, 2019 - 10:07 AM
VERNON - A recent decision by a developer putting an indefinite hold on an expensive housing project in Vernon, is due to a disagreement over the interpretation of the contract, according to the City of Vernon.
The City of Vernon released a statement today, Aug. 7, stating the Highlands of East Hill Development slated for the site of the former McMechan Water Reservoir is still owned by the City and that the City has a contract to sell the land to the developer, Vernon Reservoir Developments Limited.
"The City and Vernon Reservoir Developments Limited have a disagreement over the interpretation of the contract," the statement says. "As with all other developers, the City has full intention to treat Vernon Reservoir Developments Limited fairly and equitably, within the scope of the City’s legislative authority."
On Aug. 1, the developer made a statement on its website saying it had put a hold on the Highlands of East Hill development and would be refunding 46 pre-sale buyers to the tune of $24-million.
The developer cited that it could no longer rely on the commitments the City had made, especially in regards to permits or city-controlled costs.
The land has been rezoned and the development permit issued, upon conditional of purchase of the land, for phases one to six and phase eight, the City says.
The City is "ready and willing" to complete the sale of the development lands, and has forwarded the necessary paperwork to the developer's lawyer, the statement reads.
Stoni Consolidated Holdings owners' representative Jonathon Campbell told iNFOnews.ca the company was not making any comments to the media.
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