Kelowna

A scheduled meeting between the City of Kelowna and South Pandosy merchants did not take place as scheduled Thursday.

South Pandosy Town Centre merchants called off the meeting after receiving a letter from the city's solicitor earlier in the day setting certain restrictions on what could and could not be discussed.

Merchants have filed suit after the city agreed to use city owned land within the town centre for a supportive housing project to be operated by NOW Canada.

The property in question is a parking lot within the business community that merchants say they helped pay for.

Merchants were not satisfied with a temporary solution which the city says adds additional parking spaces to the area along with a pledge to work towards a long term solution.

In a statement late Thursday, merchants say restrictions placed on the discussion rendered the meeting pointless.

Those conditions, in a letter sent to the group by city solicitor Barry Williamson, did not include an opportunity to debate matters related to past revitalization contributions, the location of the NOW Canada project and the viability of replacement parking.

"Mayor Shepherd's letter of June 18, 2009 on behalf of Council was an offer to work with all Pandosy merchants and land owners on the long-term strategy for parking in the Pandosy Town Centre with the expectation that your clients would withdraw their legal action," says Williamson in his letter.

"To clarify, the City, BC Housing, NOW Canada and our local MLAs are committed to this project, at this location and intend to move forward to see it built as soon as possible, recognizing the funding is already in place."

Williamson concluded the relocation or redesigning of the building was not a topic open to debate.

Tom Smithwick, who is representing the merchants, responded saying his clients were disappointed with the city's position.

"It was their hope that there could be some form of open discussion of all of the issues related to the Tutt Street parking lot," says Smithwick in response.

"Unfortunately, you are putting substantial conditions on the discussion which we feel are inappropriate and do not allow for a possible resolution of the matter. Our clients are very disappointed in this outcome, as they had hoped that open communication may lead towards an appropriate compromise."

Mayor Sharon Shepherd, who proposed the meeting in a letter to merchants June 18, says she too is disappointed in the decision to cancel the meeting.

Shepherd says it appears that while the city wants to look forward towards long-term solutions, merchants are interested in looking back.

"I did say that because when I had one discussion there were so many things brought up about what didn't happen and what should have happened," says Shepherd.

"I said this meeting was to start a new day. It was about a decision having already been made and how do we move forward on this."

While she is disappointed in the cancellation, Shepherd says she still holds out some hope the two sides can come together and find a solution.

"I did have a very good discussion with one of the merchants and I had left the phone call feeling hopeful there could be (another meeting), but, he has to go back and talk to the other representatives involved in this lawsuit."

Construction of the 39-unit supportive housing unit for women and children remains on hold until a solution is reached or the issue winds up before the courts.

NOW Canada Director of Operations, Liz Talbott, says it's costing about $3,000 for every day construction is delayed.