Richard Gleeson
Northern News Services

NNSL (Jun 12/98) - A manager of one of the two engineering firms involved in the Niven Lake subdivision says it's news to him that the city's partners want to cash in their interest in the development.

"The only way that deal can be closed is through a unanimous vote of the partners," said Gary Strong, regional manager for MM Dillon. "That means the city has to want to close the deal."

There are four partners in the 350-lot development: the city, Volker Stevin Contracting, Reid Crowther & Partners and MM Dillon.

Dillon and Reid Crowther share a vote on the committee co-ordinating the development. The city and Volker Stevin have a vote each.

Earlier this week Mayor Dave Lovell said there is a possibility the partners could pull out of the development if the city does not comply with a request to reduce lot prices and assume financing costs of improvements, such as lift stations and water lines.

The city would have to pay the partners $3 million to $4 million if they backed out of the deal, Lovell said.

A clause in the agreement between the partners allows the committee to dissolve the agreement, but all decisions of the committee must be unanimous.

If no unanimity can be achieved, any party has the right to ask a referee appointed under the agreement to settle it. Former MLA David Nickerson, an engineer by profession, is the referee.

If any party disagrees with the referee's decision, it has the right to refer it to binding arbitration.

Strong said the partners recently had the lots appraised and have been collecting input on market changes from real estate agents and brokers.

"I'm sure everyone in town is aware, the price of housing is dropping, and there isn't a lot of buying pressure on the market," said Strong.

"We're trying to do something to develop interest in those lots. We're exploring options."

Reid Crowther's spokesman is out of town until Monday. Volker Stevin's representative was also out of town. His office said he might be back next week.

Lovell could not be reached for a response.