By Pete McIntyre

‘Contract disagreement’ halts housing project: City of Vernon

Aug 7, 2019 | 10:00 AM

The City of Vernon says it’s not being hard to deal with when it comes to the proposed Highlands of East Hill development on the former McMechan reservoir site.

The City issued a statement Wednesday in response to numerous media and public inquiries about the status of the proposed development at 901 39th Avenue.

In the statement, the city said it has a contract to sell the 19.6 acre site to Vernon Reservoir Developments Ltd. (VRDL), but the sale was not completed.

“The development lands are currently owned by the City. The City has a contract to sell the lands to Vernon Reservoir Developments Limited. The City and VRDL have a disagreement over the interpretation of the contract,” Brett Bandy, the City’s real estate manager, said.

The developer said it halted the 173 mixed-housing project as it could no longer rely on the committment made by the City. (See the full story here.)

Charger rollout

Phased approach planned for EV chargers at Vernon ALC

Apr 24, 2026

Secondary Dwellings

Coldstream considering more housing on agricultural lands

Apr 24, 2026

Wildfire Risks

Okanagan's Fire Danger Rating already up to Moderate

Apr 23, 2026

The City reached a deal to sell the site to the company in 2017 for $6.4 million.

Bandy went on to say, as with all other developers, the city has full intention to treat VRDL fairly and equitably, within the scope of the City’s legislative authority.

“The development lands have been re-zoned and the development permit (conditional on purchase of the lands) for phases one to six and phase eight of the project has been issued. The City has advised Vernon Reservoir Developments Limited on all applicable processes once the sale has completed, and has discussed with Vernon Reservoir Developments Limited the means to address construction and permit processes in an expeditious manner,” Bandy added.

Bandy concluded the statement by saying the city has advised VRDL that the City is ready and willing to complete the sale of the development lands, and has delivered to the company’s lawyers (in trust), the documents necessary to do so.

by Pete McIntyre

View Comments