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The Cadillac Fairview Corporation Limited has withdrawn from the working group process regarding Phase 2 of the Don Mills Centre redevelopment, citing prejudicial and scheduling concerns.

In a Nov. 14 letter to city solicitor Abbie L. Moscovich, Cadillac Fairview's legal representative Jeffrey L. Davies acknowledged the company's agreement to participate in a community consultation strategy with city staff and community members.

But, Davies noted, agreement was dependent on "the meetings being conducted on a without prejudice basis and concluding by the end of the year" during which time the Phase 2 appeals to the Ontario Municipal Board would be held in abeyance.

But Davies said city staff's recent decision to extend the working group meetings into January and its intention to report to council "on the substance of the working group discussions, even in the absence of settlement and contrary to the without prejudice nature of the meetings" led to Cadillac Fairview pulling out of the working group process immediately.

"Cadillac Fairview acknowledges that city staff may report to council on whether or not the working group as achieved a consensus and, if so, the specifics of the agreement reached," Davies wrote. "However, if consensus is not achieved, then the without prejudice nature of the meetings means that discussions can not be reported on in substance."

Four working group meeting have been held since September and two more are scheduled for Nov. 21 and Dec. 5.

"From the very start they (Cadillac Fairview) haven't shown they want to participate in a full way," said Ward 34 (Don Valley East) Councillor Denzil Minnan-Wong, whose ward borders the Don Mills Road and Lawrence Avenue intersection where the redevelopment is taking place. "There was no meaningful concession."

Terry West, president of the Don Mills Residents Inc., said a clear objective for the working group, which he is a part of, was not put in place at the onset of the meetings.

"I think the objectives could have been more clearly stated," he said. "Was the purpose of the working group to reach an agreement with Cadillac Fairview or to work with (city) planning staff to tell them how they feel about the Phase 2 proposal? If the latter is the truth, Cadillac Fairview feels why do they bother?"

West said some members of the working group have focused on the Don Mills Centre as a whole, specifically the redevelopment of the mall itself, and not Phase 2, which deals with residential, office and medical uses.

"We are really here to talk about Phase 2," he said. "The meetings would be much more productive if we focused on that."

The working group is made up of about 15 residents including representatives from the Don Mills Residents Inc., Don Mills Foundation for Seniors, Victoria Village Residents Association and Don Mills Friends.

Catherine Kee, Cadillac Fairview spokesperson, said the company is still willing to work toward resolving issues with city staff and community members.

"Despite having to withdraw from the working group process, Cadillac Fairview is committed to continue working with city representatives and responsible community representatives to constructively resolve as many issues as possible," she said.

The Phase 2 application deals with the land along The Donway West portion of the site at Don Mills Road and Lawrence Avenue.

More than 1,300 dwelling units are proposed, of which 1,207 represent new construction while 147 would be created through the conversion of the office building at 75 The Donway West, which also houses medical practices, into a seniors residence.

The proposal also includes a public park and a two-storey recreation centre.

The proposed buildings north of 75 The Donway West are designed with building heights up to 10 storeys while the proposed buildings south of 75 The Donway West, and extending to Don Mills Road, are terraced from six to 14 storeys. The highest buildings proposed are a pair of 32-storey point towers located toward the interior of the site, in the area west of the Don Mills Civitan Arena.

The project will be phased in over seven to 10 years.

The first phase of the redevelopment project focused solely on the redevelopment of the Don Mills Centre, which was torn down last year to make way for an outdoor lifestyle centre set for completion in the fall of 2008.