A Calgary committee supports making condo developers pay bonds up front in case developments get abandoned like the Manchester Station condo project. (CBC)

A Calgary committee has approved a plan that will oblige condo developers to post a bond before construction begins in case projects get abandoned later.

At least 10 developments in the city are inactive, with most of them left as massive holes in the ground. In some cases, the city has been left to pay for securing or cleaning them up.

"In case a site going forward finds itself in a situation, economically or for other reasons, in what we are referring to as suspended activity, we would be able to have the funds needed to fill the hole for example and put it in a safe condition," said Kevin Griffiths, the chief building inspector for the City of Calgary.

The land use, planning & transportation aldermanic committee approved the bond proposal on Wednesday, but the idea still has to be approved by city council.

No specific dollar figures were suggested at the committee meeting, but the remediation bond is likely to be a percentage of the total cost of a project, which could run into the millions of dollars.

Michael Flynn of the Urban Development Institute, which represents Calgary developers, said they support the idea but only if it is temporary.

"Developers do not have bottomless pockets," he said. "It's just an added cost to developers and those costs tend to get passed on to consumers. So at the end of the day, it's the consumer who's going to be paying more for these things."

City trying to recover costs

The City of Calgary has taken two condominium developers to court over their abandoned construction sites.

The city asked a court to appoint receivers for the Manchester Station project off Macleod Trail, as well as the Sky Tower site at 10th Avenue and First Street S.E. in an attempt to recover its costs.

'We are going to continue to work together with the development community through the court system if necessary to ensure we as a city aren't left holding the bag.'—Ald.John Mar

The city has spent more than $500,000 to shore up the Manchester Station site, fill in part of the excavation and seal it off for safety and security.

A court ruling on Friday will put $25,000 for that work back into the city's coffers. But the remainder of the cost will be added onto the tax bill for the property. With the project in foreclosure, and a court-ordered sale, it's unclear if or when the city will recover its full costs.

Griffiths said the current stalled condo developments in Calgary are secure for now.

"It's a constant process of review because they are dynamic and the situations can change almost daily, so it is not something that we can reduce our efforts on, but at this point in time we believe it is safe for our citizens," he said.

Many of the abandoned projects are in Ald. John Mar's ward.

"We are going to continue to work together with the development community through the court system if necessary to ensure we as a city aren't left holding the bag," he said.

The city is in court again this week on the Sky Tower legal action.