Lantzville Foothills project stalls out

By Niomi Pearson
Nanaimo News Bulletin
Published: September 22, 2010 12:00 PM

The dream of building a 730-house subdivision on five parcels of land in the Lantzville Foothills is dead.

Two of the five parcels have been sold and Sterling Bridge Group, the secondary mortgage holder, has indicated it won’t pursue the acquisition of water on the property.

Lantzville Mayor Colin Haime said he takes that to mean the project has been abandoned. An agreement with Lantzville stipulates the developer is responsible for finding a source of potable water to sustain the housing project.

“Effectively, they are saying at this time they don’t intend to pursue development at the front end of the property,” said Haime. “Without water, it won’t happen.”

Haime said it is disappointing Sterling Bridge, which refused to comment on the matter, can’t develop the property.

“It just came down to the struggle to provide water,” he said.

Sterling Bridge sold two of the parcels to another developer, Lone Tree Properties Ltd., in mid-August.

David Behan, president of Lone Tree Properties, said the company is looking at development opportunities, but no decisions have been made yet. Behan spoke with Lantzville council Monday during a regular council meeting.

“It’s potentially a bright spot,” said Haime, adding council felt that with changes in ownership, residents might be worried parkland was in jeopardy. However, regardless of who owns the property, the dedication of half as parkland will remain in place.

When the vision of developing the Lantzville Foothills property was created in 2004, it was one of the biggest housing developments conceived on Vancouver Island.

Lantzville Foothills Estates Inc. was in financial difficulty last last year.

Romspen, the primary mortgage holder foreclosed the property in December. Sterling Bridge began seeking development opportunities to avoid writing off its investment.

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