Following the conclusion of a multi-party mediated process, the City of Penticton has agreed to contribute $1.15 million towards its share of a settlement negotiated with the Lakeview Terraces Strata Corporation.
Lakeview Terraces is a condominium complex comprising 50 residential and four commercial units built at 250 Marina Way in 2006. A structural review in 2010 found material, drainage and inspection deficiencies that the strata corporation argued were caused during construction and, with the passing of time, negatively influenced the complex’s condition.
The city was one of several parties involved in the complex’s construction and subsequent settlement negotiations. The city’s press release states it anticipated the likelihood of a settlement being awarded and has been budgeting for it. “The alignment of several unfortunate circumstances created a challenging situation for the residents and unit owners at Lakeview Terraces,” said Peter Weeber, the city’s chief administrative officer. “Having reached this settlement, the city is hopeful that any remaining issues surrounding this property will now proceed to a successful resolution.”
A two-bedroom unit at Lakeview Terraces was recently listed for sale at $422,500. Construction of the Lakeview Terraces complex began in 2004 and was completed in 2006.
The leaky condo crisis in the late 90s brought significant changes to the B.C. Building Code leading to new and more rigorous standards being established 2006, but the Lakeview Terraces complex was constructed using the 1998 building code.
In 2010, legal proceedings started based on findings drawn from a five-year warranty review. It wasn’t until 2017 the first of two mediations was held, according to city hall, and a settlement was reached following a second mediation this year.