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Bayport homebuyers face contract termination in Midland development spat

Phase 2 purchase agreements offered an extension to May by developer; developer blames town, town blames developer, hundreds could lose homes

New homebuyers of the Phase 2 portion of Bayport Village in Midland are left in the middle of a disagreement between the town and developer, which they fear could result in them losing their purchasing agreements, deposits and potentially their homes.

Buyers of Bayport Village homes contacted MidlandToday to share information about the perceived stalemate between developer Kaitlin Corporation and the Town of Midland planning department.

Alexander Riabokris and his wife entered into a purchasing agreement with Kaitlin for their Bayport Village home in late 2020, assured that the remaining work to be completed was similar to the Phase 1 homes already built and lived in by homeowners.

“Phase 2 was just supposed to be a repeat in terms of permits and risk,” stated Riabokris. “My biggest concern is that we don’t know 100 per cent who is right, who is wrong, who is playing which game.”

Phase 2 of Bayport Village, located at 640 Bayport Blvd., is a proposed waterfront-adjacent development along Georgian Bay for 148 freehold townhouse units, 32 freehold/condominium townhouse units, and two 12-storey apartment buildings hosting 291 units.

In letters sent to the approximately 100 affected Bayport purchasers by Devon Daniell of Kaitlin Corporation through Lanarose Midland Ltd., it's noted that initial site plan approvals for Phase 2 were given in August 2019 with acceptance from Midland planning staff in late 2020.

Kaitlin included a detailed comment response matrix and urban design and architectural control guideline, first submitted in October 2020 and updated in December 2021.

Through MHBC Planning Urban Design & Landscape Architecture (MHBC), letters were sent in early January and February of 2022 to the town stating that Kaitlin had “experienced a significant level of frustration” regarding lack of final approval for Phase 2, as corresponded from lawyers Devry Smith Frank LLP.

Daniell sent letters and spoke to affected purchasers of Bayport Village Phase 2, including Riabokris.

“This is what (Kaitlin) communicated to us basically in a casual discussion, was: ‘We thought everything was done, but suddenly this new person comes in and they put in all these new requirements, all these new rules’,” said Riabokris, referring to Midland executive director of planning, building and bylaw​ Adam Farr who joined town staff in 2021.

Riabokris and another potential resident Glenn Wilson sent an email to Midland Mayor Stewart Strathearn explaining the situation and asking for resolution. Both echoed Kaitlin correspondence which pointed out Farr as being “adversarial to the point of being obstructionist”.

Strathearn responded quickly.

“The suggestion that a person in the building department has caused the problem is inaccurate,” began the mayor’s response. “The builder and their planning contractor consistently have not provided, nor do they seem willing to provide the necessary, complete, and fulsome standard planning and engineering information required.

"We are still waiting for several very important documents, studies, and clarifications from your developer's team, without which we cannot proceed to waive the Council approved conditions on the draft site plan.”

Kaitlin offered to have an independent planner brought in at their expense, as well as providing a delegation to town council earlier in the year, with both requests denied.

“A continued lack of a fulsome, timely, and complete response to the conditions necessary for the completion of the Draft Plan for Phase 2, impairs our ability to meet our obligations for the safety and protection of you the homeowners, residents of Midland and the Town,” responded Strathearn.

The mayor added that the town had shown willingness and accommodation to the project in the past. “Most importantly we look forward to you moving into your new home; a home within a development that meets all the applicable development standards and criteria.”

This has left buyers like Riabokris to speculate about the entire situation.

“Is it a new person in a new department? Or is it the builder seeing the market prices and they have the ability right now to cancel our contract legally without any repercussions, and a few months from now fix whatever the permit issues are and restart the project? And, basically, we lose our new homes.”

MidlandToday contacted Midland planning for comment; CAO David Denault responded through email stating the town is not provided with nor controls purchasing agreements between developers and customers.

“The developer decided to pursue changes from the draft plan which was originally approved, which is their choice and is not uncommon,” wrote Denault. “There are a number of substantive changes that have been proposed .

"We continue to work with the developer to resolve the outstanding issues so this project can get all required approvals and move forward. Other agreements and plans considering utilities and engineering form part of that consideration.”

Daniell responded to a request from MidlandToday for comment, reiterating the obstruction further upon town planning and specifically Farr.

"It's not a dollar amount, it's time," said Daniell in regards to the cost required to remedy the situation. "Every single thing he's asking for is going to take months and months; he takes three months to review simple comments."

In addition, Daniell felt confident that Kaitlin would win in a court case against the town but was trying to avoid that outcome "at all costs."

"Bottom line, we're trying to do everything we can to get this; obviously it's in our interest to close these houses and get these folks in, and do our job and build homes."

Due to Phase 2 site plan approval not being granted by March 23 or April 30 for affected purchasers which would result in automatic termination of the agreements, Kaitlin informed Bayport residents that an amendment would be sent out next week allowing for an extension to May 30.

Riabokris wants both Midland and Kaitlin to “stop bickering” and come together for a timely resolution.

“I’m a purchaser. I’m about to lose a big chunk of my dream, my money, my home… my everything,” spoke Riabokris. “Because right now I cannot buy (a similar) home for the price of the agreement two years ago. It’s not just me; a hundred people are in this situation.”


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Derek Howard, Local Journalism Initiative Reporter

About the Author: Derek Howard, Local Journalism Initiative Reporter

Derek Howard covers Midland and Penetanguishene area civic issues under the Local Journalism Initiative, which is funded by the Government of Canada.
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