Major resort development cancelled in Penticton

Higher than expected costs, along with the sub-prime mortgage crisis in the U.S. have resulted in the cancellation of a major resort development in Penticton.  My Second Homes Developments hasannounced they have terminated plans for the Skaha Beach Club and Spa which was to be built on the former water-slide property.  CEO Mel Reeves says their financing for the project was pulled after bids for the first phase came in 16-million dollars over budget.  Reeves says the still plan to develop, and will work with the city the best use for the ten acre parcel of land.  180 of the 211 units in phase one had been pre-sold, and Reeves says they began sending out refund cheques to those buyers this week.

Jon Ferebee - Astral Media Radio News - Penticton