-Developers will have to pay monies back-
OSOYOOS TIMES-January 28, 2009-
By Paul EverestrnOsoyoos Times
Some of the money collected by the Town of Osoyoos from the developers of the planned Indigo condominium complex on Cottonwood Drive will be going back into the developers' pockets in an effort to get the stalled project back on track.
The Town announced on Jan. 23 it will be returning $1.04 million of the more than $2 million it received from the Kingsway Group of Companies in August when the Vancouver-based firm was given a building permit for the 171-unit development.
The money being returned includes $462,212 that was meant for a number of building, sewage, landscaping, inspection and damage deposit fees as well as $576,656 that was meant for development cost charges (DCCs).
The DCCs help the Town pay for infrastructure upgrades made necessary by the new development.
Mayor Stu Wells said the Town refused a request from the developers for the return of all the money and part of the reason some of the cash is being returned is due to legal obligations as the DCCs are infrastructure related.rnYou can't charge people for things that they're not using, he said. We want the Town to be perceived as being a fair partner as we're looking at developing the town.rnThe other reason part of the money is being given back to the developers is to keep the project viable in the midst of the current economic downturn.
The developers confirmed in November that the project was put on hold because of financial difficulty with the credit meltdown.rnTelephone calls to the developers from the Osoyoos Times for comment went unanswered.
To make up for some of the expenses it has incurred in relation to the project, the Town will be keeping a portion of the developers' building-permit fees.
At the end of August, 2008, the developers paid the Town more than $950,000 in DCCs and more than $621,000 in density bonuses.
At the time those monies were paid to the Town, the estimated construction budget for the project was $110 million.
Wells said, however, that the Town did not return any of the density bonuses or other amenities received from the developers such as the 1,600-square-metre lakeshore park or the $93,750 meant for developing that park.
And, Alain Cunningham, the Town's director of planning and development services, said in an email that a security of $710,113 paid by the developer for the public pier/ private moorage facility (for the development) is not part of the repayment package. The money that was returned was paid by the developers for services the Town will only have to carry out once the project is built.
When the development is completed, Wells said, the money will have to be paid back and the developers will have to renew the building permit for the project.
When the property is developed they'll be right back and will have to do all their fees all over again, he said. Everything will start again.rnAs for whether the Town would take the same approach with any other development, Wells said it would depend on the situation.
If A, they had paid, and B, they were going to stop building and shut it down and go right back down and give up their building permit, I would guess that would be under consideration, he said.
Wells also said he would consider looking at waiving costs such as DCCs or other such charges for developers in the future if it meant the difference between a development coming to Osoyoos or not.
It depends on how hard and how long this economic slowdown is going to last, he said, adding that other communities in B.C. are already looking at getting rid of such charges.
[email protected]
