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Statement Regarding Avalon Settlement Related Issues
August 8, 2005
The following information is provided concerning the matter of settlement affecting some homes in the Avalon community.
Minto first became aware of unusual foundation performance affecting a limited number of homes located in the Avalon community (only those located within a block or two of Innes Road) during mid 2003. These homes were amongst the first 100 or so of the nearly 2,000 homes that we have built in this community and are the only homes affected by this issue.
In order to understand the reasons for the observed foundation concerns, and as a basis for the development of a comprehensive remediation plan, we initiated a program to monitor geo-technical conditions in the Avalon community, which has been underway since late 2003.
We have also been maintaining contact with the affected homeowners through the provision of periodic updates regarding the progress of our review and through direct contact in cases where interim repairs to the affected homes have been appropriate. In this regard, we have provided our commitment to the affected homeowners that we will complete any necessary interim repairs, as may be required to maintain the functionality and aesthetics of their homes, until we are able to develop and implement a permanent solution.
During the spring of this year, we were satisfied that our understanding of the geo-technical conditions in this area was sufficient to prepare permanent remediation plans to address the soils conditions beneath the affected homes, with the objective of ensuring that future movement and performance is consistent with typical new home construction.
We also recognize that many of the affected homes will need repairs to correct settlement related damage that may have already occurred. In this regard, we have advised homeowners of our intention to return the home to its original condition upon purchase and to provide a warranty on the repair work that matches the warranty coverage mandated by the Tarion Warranty Corporation for a new home, insofar as settlement related repairs are concerned.
Finally, we have selected an initial group of homes for the completion of both remedial works and repairs, which are now underway for the homes at 150 through 164 Marshfield Street inclusive. During the course of our work on this initial sample of homes, we expect to confirm our work procedures and productivity level so that a schedule can be developed for the balance of the work on other affected homes. Our current plan is to proceed with the remedial works and repairs for all affected homes as expediently as possible.
All of the remedial and repair work is being conducted under the supervision of our structural and geo-technical consulting engineers and we have also been acquiring Building Permits in order that the repairs are inspected and accepted by City staff. In addition, we have provided briefings to senior staff of the Tarion Warranty Corporation in order to ensure their awareness of the situation and to solicit their comments regarding our activities.
We remain appreciative of the patience, effort and cooperation that we have received from the affected homeowners throughout the resolution of this issue. Most importantly, we are fully committed to the completion of remedial works and repairs as necessary to completely and permanently resolve the settlement related issues associated with these homes.