Saskatoon settles dispute with Arbutus over Rosewood development
The city has come to an agreement with a Vancouver-based developer that will allow its development of a 244-unit apartment complex in Rosewood to continue.
A news release from the city manager on Friday declared the City of Saskatoon had settled its financial dispute with Arbutus Properties.
In November Arbutus asked City Council to remove a special holding symbol on the property so it could claim $5 million in Canadian Mortgage and Housing Corporation funding it needed for the project.
If this funding for its Rosewood project fell through, Arbutus CEO Jeff Drexel said, it likely would not continue work on its downtown grocery store development.
At the time, the city refused to grant Arbutus special permission because it had not met its commitment to building a lift station and other temporary infrastructure.
Arbutus turned to the city’s development appeals board for help in December, saying it was willing to obtain a letter of credit for over $2 million to pay down money owed to the city and move forward with construction.
The appeals board overturned the decision, bringing the two back to the negotiating table.
City Council will consider the terms of the new agreement at its Jan. 25 public hearing meeting.
-With files from Keenan Sorokan
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