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Burlington Developer challenging proposal to halt projects

Burlington Developer challenging proposal to halt projects

ADI Developments says it will appeal a proposal by HCRA, the government regulator, to halt its construction activity in Burlington.

 The HCRA proposal seeks to revoke the licenses of eight unrelated Adi entities in addition to that of the one entity involved in the matters relevant to the HCRA action.

ADI says it was necessary to renegotiate the price of condo units because the construction costs of the project had shot up by 35 percent and it would not have been possible to complete the project at the original prices. Adi says it was forced to seek additional financing and to cancel purchase agreements in order to secure the new financing to cover a $43 Million shortfall

“The rising costs driven by trade subcontractors, supply chain slowdowns and associated increases in raw materials forced Adi into making a difficult decision for the project to survive,” said Adi, “but the alternatives, including project failure, would have led to a more precarious situation for purchasers. We put their interests at the forefront as we dealt with a difficult industry-wide situation not of our making”.

In its statement of appeal ADI says purchasers who did not proceed with the new price structure got their deposits back with six percent interest and denied the claim by HCRA that purchasers were told they would not get their deposits back until a new purchaser could be found.

Adi says it “consulted with the HCRA with respect to the situation and lawfully cancelled purchase agreements according to their contractual terms and the regulations set out by Tarion giving those purchasers alternative options. At no point did Adi tie the return of deposits to the resale of the units, as HCRA alleged. It shocked Adi that this proposal was the path taken by HCRA in respect of the Lakeshore development without prior notice or discussion and that it included eight other unrelated projects within the Adi group of companies in the regulatory net.”

“We are extremely upset by the process. The proposal published by the HRCA is disappointing, to say the least,” said Tariq Adi, President and CEO of Adi Development Group. “Many builders out there require guidance from HCRA in order to get through this, not to have their licences pulled. We feel we have been unfairly singled out.”

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