Calling the City's Bluff

In a nutshell, the developer is taking his bat and ball and going home because the City of Vernon's "commitments" can't be relied on, despite the developer stating he has jumped through the city's hoops. 

"...the city would be in a position to make changes

 to previously approved draft agreements

 or impose further project costs

 or even change the project...",

 the Developer said.

The City has demanded a signed unconditional closing of the sale agreement, which hasn't been received according to the City administrator.

And the developer's position is that "the increased risk of these actions directly affects the timing and 'the city would be in a position to make changes to previously approved draft agreements or impose further project costs or even change the project as they had threatened to do on May 27 by raising the issue of the 43rd Avenue entrance'."

The story was featured in today's Morning Star newspaper under "Major housing development shuts down".

If it sounds like I am taking sides with the developer, that is correct.

I do have experience with local government--albeit the District of Coldstream next door to Vernon--during my golf course project development in 2000 and 2001.  So I know that the likelihood of local government "tack-ons" is very high indeed.  In my case I was dealing with not only Coldstream, but the Regional District of North Okanagan.

Double whammy, it could be said.

Government appears to be of the opinion that "little tack-ons" can be demanded as adjuncts to approved development permit plans because government has all the rules and yes, they make the rules.

Permits up the wazoo, all needing inspection at each and every little phase of development.  Often by bureaucrats who attend in pairs, discuss progress with one another on site, and then spring another "qualification" onto the developer...drains are needed on sloping ground, that area over there must be paved, a "buffer" must be installed to prevent noise from reaching a neighbour, etc. etc. etc.

The "tack-ons" seem endless and end up costing the developer so much more money!
Money that is already tight.

So, yes, no matter how the newspaper--and the City clerks--portray the developer's lack of adherence to their new tunes (such as an added new entrance on 43rd Avenue!), I believe Stoni Consolidated Holding called the City's bluff.
And cancelled the development, instructing their agents to return deposits for homes pre-purchased.

Unintended consequences?
Certainly for the City.
Certainly for the people who pre-bought; their plans for new homes have now gone Poof!

Let's hope that the general public realizes it is bureaucratic red tape that invariably derails developments.

But all those bureaucrats are likely circling their wagons right now...so that no blame is placed on them for the City's loss of future tax/development dollars.

Good on 'ya, Stoni!