The proposed 221-lot development on the shores of Moose Lake isn't as close to a done deal as it may seem.
Vancouver-based developers Ken Megale and Alain Chevalier, who run MMT Properties Ltd., have initiated a series of discussions in regards to building a large waterfront community just west of town.
Megale presented tentative plans for the subdivision to the Nouvelle last week, which showed 221 lots spaced out over a 90-acre parcel of land on the northwest corner of Moose Lake.
As of July 23, the MD of Bonnyville had yet to receive an official application and area structure plan regarding this proposed development.
Caroline Palmer, Development Coordinator with the MD, says that while municipal officials participated in one discussion with Megale the meeting “did not insinuate any type of approvals.”
“The processes that we go through for any multi-lot subdivision is always in conformance to the Municipal Government Act, to our land use bylaw and to our municipal development plan,” said Palmer.
“The process has not changed for anyone that came in before (Megale), or anyone that will come in after him. Our process is very step driven.”
As far as the MD is concerned this process hasn't even been set in motion, as the first step would involve receiving an official application complete with an area structure plan.
“Until such time as we receive a valid application for rezoning and an area structure plan we have no idea what (their) intent is.”
A quick glance at the initial development plans, which Megale called “95 per cent complete,” show the 221 units spaced out over two parcels of land, which combine to make roughly 90-acres.
Currently the land in question is zoned as agricultural, which means that the construction of a subdivision is not permitted.
In order to move forward with a multi-lot subdivision, MMT Properties would have to apply to get the land rezoned from agricultural to country residential.
From there the developers would then have to hurdle the MD's land use bylaw.
Currently the bylaw states that the minimum lot size for subdivisions built on country residential land is 1.5 acres. The latest area structure place for British Properties shows the 221 units at roughly 0.3 acres in size, which is well below the current minimum allowed in the MD.
“A lot of the zoning that is out there is decades old and doesn't reflect the market place,” said Megale, who feels 1.5-acre lots just don't fit with what the people of this generation are looking for.
“All of our correspondence (around British Properties) we have spoken about rezoning and permitting,” added Megale.
Megale is still confident in British Properties being a perfect fit for the Bonnyville area.
He expects MMT Properties Ltd. to purchase the land sometime in October. From there he has estimated nine to 12 months to secure the proper permitting and another 12 months before the first lots are available.
As far as the MD's process, once they receive the subdivision application and area structure plan they would work with the developer to ensure it meets their guidelines. After that the applications would go before MD Council where they would set up a public hearing.
Only after a public hearing would MD Councillors have the ability to approve or deny the proposed development.
Ken Megale has been involved in his fair share of developments over the past few decades.
Megale is very proud of recent developments such as the Kensington Court Condos in Calgary and the Sunridge Plateau in Whistler.
MMT Properties list numerous projects on their site like John's Walk waterfront community in Nelson B.C, and Mission waterfront in Kelowna, B.C.
Of twenty projects listed on the site three went sour.
The Saltspring Island Village Resort on Saltspring Island in B.C. had a variety of issues arise from the initial proposal in 1998 all the way to 2008.
The project was initially led by developer Brian Hauff. To fund the development Hauff borrowed funds from Multimetro Mortgage Corp, a company that was run by Megale.
Multimetro was part of a group of mortgagors who rounded up investors.
Plans for the resort quickly fell apart as the project was mismanaged and eventually ended in foreclosure in Nov. of 1998.
According to the Vancouver Sun and local newspaper the Gulf Island Driftwood, investors in the project were left on the hook for $11 million dollars when the project folded.
The failure affected Hauff, Multimetro and a dozen other building related companies and contractors according to the Driftwood.
Another deal that went sour was over the sale of the Nanaimo, B.C. Waterfront and Parksville Oceanfront developments of which Multimetro Mortgage Corp. was the first mortgagor.
A group of investors who had put money into the developments launched a class action lawsuit against Dundee Securities Corporation (defendant) and Multimetro Mortage Corp. and Ken Megale (third party) in November of 1999, according to Supreme Court of British Columbia documents.
After two failed attempts at having this matter certified as a class proceeding the lawsuit finally moved forward in March of 2004.
A trial never commenced as the defendant agreed to enter a settlement agreement, which saw all of the class action members receive an all-inclusive sum of $7 million.
Even though these projects didn't go as well as he would have liked Megale is still happy with the work he did while running Multimetro Mortage Corp.
“I am very proud of Multimetro and all of the projects and money that we made for people. It was just remarkable,” said Megale.
“Markets are living things and you have to be prepared for that,” Megale added.
“You can fold up your tent or you can move on and do the deals like I did in Oliver, Nelson and Kelowna. Through all of that we come to British Properties, which incorporates everything Alain and I have learned in our careers.”
