Plans for six highrise towers at Semiahmoo Shopping Centre have been scrapped, a move that has one Surrey councillor calling for a serious review of how the city’s budget is organized.

Others, like Semiahmoo Residents Association president David Cann, were ecstatic when they heard the news this week.

Bosa Development Corporation’s Richard Weir told the Peace Arch News Monday that the company decided last week not to go ahead with a redevelopment application that it made public last spring.

The plan included 1,160 dwelling units in six towers – ranging from 18 to 36 storeys – on the South Surrey site, which is bordered by 16 Avenue, 152 Street, 18 Avenue and Martin Drive. It also included an eight-storey office building, a number of four-storey commercial -residential buildings, new roadways and underground parking.

Now, the company plans only to upgrade and renovate the mall within the existing building envelope and zoning, Weir said.

Surrey Coun. Bob Bose learned of the new plans from a Peace Arch News reporter Tuesday morning.

“I’m not in any way surprised, given the state of the economy,” Bose said. “I’m really sorry about it. I had high hopes for it. Lots of people’s hopes are being trashed these days.”

Bose has always been in favour of the original proposal. In an interview last summer, he noted a 2004 study and a 2006 council call for increasing the density in that area, and likened it to Newport Village in Port Moody, a development that features a wide variety of commercial and residential buildings.

However, Weir said the decision is more about providing certainty for the retailers who are tenants in the shopping centre.

“Surprisingly, it’s got less to do with the economic climate than it had to do with the impact and uncertainty it was having on the operation of the shopping centre.”

Weir noted it is difficult for tenants to renegotiate leases and conduct other business when the timeline for potential development is not known.

Bosa has a substantial investment in the shopping centre, he said, so that means they also have a substantial investment in the success of their tenants.

Cann, was thrilled with the news.

“Ye gods. Wow!” he said Monday, adding that he had noticed the development application signs had come down, but didn’t know why.

“I feel elated, actually. It’s wonderful news.”

An information meeting on the original proposal was held in May, as well as a public hearing in June, where many residents spoke against the project, concerned about its size and the traffic it would bring to the area. They questioned the proposed loss of the existing shopping centre.

The SRA and the White Rock Ratepayers’ Association joined forces earlier this year to preserve the Semiahmoo Town Centre, with Cann leading the way. At an all-candidates meeting hosted by the SRA prior to the Nov. 15 election, council members said they would be amenable to revisiting the project.

While Cann is happy, he questioned whether a different, but similar-density proposal might return in the future.

Bose said the withdrawal of the original redevelopment plan signifies a much larger problem.

The development industry is shutting down, he said, and that means Surrey will seriously have to re-think its budgeting process.

“The fact that development is in the tank means no revenues for the city for all kinds of stuff,” Bose said.

Bose noted 75 to 80 per cent of all public works, as well as all park acquisition, is paid for with development cost charges. The city has been increasingly dependent on DCCs, he said, so he hopes there will be some serious discussion on council about finding a different approach to the budget.

“I think it’s an incredibly serious situation for the city.”

Mayor Dianne Watts could not be reached by press deadline for comment.