This development on Park Avenue stalled after the developer filed for creditor protection. City staff say there is nothing that can be done, despite the structure being an eyesore. Mark Squibb photo
By Mark Squibb
Mount Pearl city staff say that there’s nothing to be done, at this time, in regard to an abandoned development at 166 Park Avenue, the site of the old Park Avenue Elementary School.
In May 2024, the City gave Karwood Contracting Ltd., approval to construct three apartment buildings consisting of 33 units at the location.
Karwood filed for creditor protection in January this year.
Councillor Bill Antle broached the subject during the November 18 public council meeting. Antle said a resident had called him earlier that day to inquire about the development, which has been seemingly abandoned. Antle called the development an eyesore and asked what the City could do to rectify the matter.
Engineering director Scott Batt said the City had received an update from BDO and the matter was still before the courts and that BDO was unable to disclose any more information at the time. Batt said staff have been following the court case on a weekly basis.
“So, there’s nothing the City can do?” asked Antle.
“No,” said Batt.
Mayor Dave Aker interjected and said that after a certain length of time the structure may become a safety issue rather than just being an eyesore.
“If we don’t get any determination from the court soon, maybe we will have to act, but I guess that will be premature as of tonight,” said Aker.
Council had formerly approved $100,000 in funding for Karwood Contracting for the development at 166 Park Avenue through the federal government’s Housing Accelerator Fund (HAF) program. That was in August 2024.
The Pearl followed up with City staff following the most recent meeting. A staff member said the City does not have a status update to provide on the project at 166 Park Avenue as it stands with the landowners and developers. As for the HAF funding, the staff member explained the City does not issue the funds until issuance of the Occupancy Permit. If the Occupancy Permit is not issued and the project is not completed on time, the money will be reallocated to other projects.