The Town of McLennan and MoCon Industries Inc. will review a revamped agreement this week in relation to development of the College Meadows subdivision.

Legal red tape and unexpected delays have bumped back the projected start-up date for construction of a new residential subdivision – College Meadows – in McLennan to the spring of 2009. The news falls on the heels of a meeting between administration, town officials and Will Moses, owner of MoCon Industries Inc., in McLennan council chambers Sept. 8. That meeting was initiated in an effort to give both sides an opportunity to review the first draft of a binding agreement between the town and Moses regarding construction terms and guidelines for the new College Meadows subdivision, consisting of 19 single family housing residences. Moses expressed his dissatisfaction during the initial discussion and subsequent review of the proposed agreement. “I won’t sign a contract such as this one. It’s a one-sided agreement which doesn’t face the realties of residential construction in Alberta,” he explained to council. “Yes, it’s a business venture, but it’s more of a partnership. It’s just a matter of coming up with a contract which satisfies the needs of both sides.” Mayor Don Regier concurred, adding “the town needs to have an agreement in place which both parties fully comprehend.” He suggested that a customized contract be drafted which excluded all of the red tape. A tentative agreement between the town and MoCon Industries Inc. was reached earlier this year in relation to development of the subdivision and initial construction of two homes in 2008 as part of phase one. One of the homes was to be completely built, while the other would serve as a show home - eye candy to market to potential new buyers. Under the plan, the municipality will act as the developer and maintain ownership of the lots until they are sold with Moses acting as the general contractor. Chief administrative officer Tammy Stout says utility servicing approval and the subdivision process by Mackenzie Municipal Services Agency have been factors in the delay of the project. “The subdivision process and surveying work is expected to be completed by the end of September,” she said at the meeting. Moses, meanwhile, indicated that the delays, coupled with the absence of a formal construction agreement and time of year, would make it virtually impossible to start phase one of the subdivision project this fall. “We are rapidly running out of time to start phase one this year this year,” he said. Coun. Robert Bisson expressed his frustration and disappointment with the holdups. “We agreed in principal this past April to start building houses and here we are five months later with virtually nothing to show for our efforts,” Bisson emphasized. Coun. Lawrence McNeil said that while he didn’t necessarily agree with portions of the contract, he wasn’t about to endorse any watered down agreement which was formed based on trust and a simple handshake. “As a municipality, we must take a strong stand by ensuring we get everything, and I mean everything, in writing when it comes to a contract,” he said, citing past experiences – namely the botched construction agreement with Kamloops-based SLR Group Ltd. as a prime example of what can happen when a seemingly squeaky clean agreement slips through the legal cracks. SLR Group, the parent company of NewGen Building Systems Inc., leased the old curling rink from the municipality for a $1 per year fee over two years back in 2006 in exchange for financial backing to build a new curling rink. The company was also hand-picked by the municipality to shoulder the responsibility of developing the proposed subdivision. That plan however imploded this past winter when the company folded its tent and high-tailed it out of town leaving the municipality high and dry. Speculation at the time was that the company’s departure coincided with a lack of progress by Peace River Oil Inc. in developing its proposed multi-billion dollar upgrader facility at Kathleen. Recognizing that time was not on the side of either party this year, Coun. Catherine Dunne made a motion to delay construction of phase one until next spring. Part of the motion also included a hard deadline of Nov. 1, 2008, to have an agreement in place with Moses. The motion was passed unanimously by council.