A long running dispute between Northern Development Initiative Trust and Commonwealth Campus Corp. has come to an end.
The two have reached a mediated settlement "to end a legal proceeding regarding lands in the 400 block of George Street," NDIT said in a statement issued late Friday afternoon.
"The development of these lands can now proceed and can be positioned for additional investment in a part of the city's downtown that has been transformed in recent years to include new shops, new restaurants, a renovated Ramada Hotel and the internationally renowned Wood Innovation and Design Centre," NDIT said.
The terms of settlement remain confidential.
"For Northern Development, the settlement resolves an outstanding proceeding, creating more certainty for the organization as it remains in a strong financial position to continue investment in communities throughout central and northern B.C.
"Due to the confidential nature of the agreement, the Trust will not provide further comment on the matter at this time."
In November 2012, NDIT launched a foreclosure proceeding over a loan provided to Commonwealth to pay for land assembly in the the downtown site primarily for the Wood Innovation and Design Centre but also for development of the adjacent area.
NDIT originally listed the amount owed at $1.45 million before interest owed but later raised the total to $1.65 million with interest included. The loan originally totaled $2.9 million but about half was paid back before the proceeding was launched.
Commonwealth Campus responded by fighting the action, alleging it was misled with assurances NDIT would purchase the land or find another buyer.
Commonwealth Campus also alleged then-Prince George MLA Pat Bell urged the company to secure the entire 400 block to prevent speculation that would increase the cost of acquiring the land.
A subsequent court action Commonwealth launched against the BID Group of Companies remains dormant but still before the court.
In that instance, Commonwealth is claiming BID reneged on a promise to buy land adjacent to the WIDC for $4.1 million. BID has replied that the transaction was subject to making the short list of proponents competing for the contract to construct the WIDC, which did not happen.
Commonwealth has been seeking a court order forcing BID to either live up to the agreement and cover the cost of damages caused by the delay, or to allow Commonwealth Campus to keep a $150,000 deposit and have BID pay damages for breach of contract.
