Developers meant what they said when they announced they were pulling the plug on the Summerland Hills Golf Resort in a letter to Mayor Janice Perrino this week.
On Friday, following a telephone conversation with Perrino and other municipal officials, Bill Baron wrote, We respectfully request the district simply allow the option (to purchase municipal land) to expire on its own terms effective February 28, 2010, or the district may chose action for early termination – your preference.
Baron is a senior partner with California-based Brandenburg Properties, which joined with a local group, Locations West, several years ago to develop the golf resort.
Economic obstacles and an arbitrary deadline for the current option to purchase municipal land were cited as reasons for termination of the project in Wednesday‘s letter signed by Lee Brandenburg and Robin Agur.
It was a tough decision, said Agur, a principal owner of Locations West.
In mid-December, council extended the option to purchase municipal land for 60 days until Feb. 28 and requested the developers to make a presentation to council before that date.
It is not possible for us to replan the project in its entirety in 60 days, Agur told council.
The previous week, the developers had requested an extension of the agreement until December 2011.
They also identified deadlines for specific intermediate steps, such as having a revised neighbourhood master plan ready for public inspection by June 30 of this year.
Late last November, the developers announced their intention to downscale the $880-million project in the wake of the worldwide economic recession and uncertainty over Crown land that accounted for approximately half of the 420-hectare development.
The other half is owned in approximately equal parts by the developers and the municipality.
Perrino did not respond to an invitation to comment on the project‘s cancellation by press time.
I am sorry to hear the golf resort will not proceed, said former mayor David Gregory. It was a great opportunity for our town to have those particular developers interested in doing that project.
As initially presented, the development was estimated to contribute an increase of more than $200 million in combined tax revenues for all levels of government over the 20-year build-out period plus provide an annual payroll of $4.45 million once the project was completed.
The developers left the door open for future collaboration with Summerland on other projects.
We look forward to continuing our efforts in a positive and transparent way, Baron wrote.
