The proposed buildings would have been among the tallest on the Island. (Stratford Towers)The developer of a luxury condominium complex along Prince Edward Island's Stratford waterfront says the current economic slowdown has effectively cancelled the project.

Jacob Hiemstra confirmed in a news release Wednesday that that he is halting work on the project. Hiemstra said the ongoing credit crunch has made it difficult for potential buyers to sell their existing homes and purchase condos.

The sales office was shut down earlier this week and the sales staff were let go.

Construction to build the four towers, each eight storeys high, across the harbour from Charlottetown was scheduled to have begun in June.

The development would have cost between $15 million and $20 million, and offered luxury condominiums with a starting price of $274,000.

Hiemstra currently owns the motel and RV park where the project was supposed to be built.

The condominium development shutdown is a major disappointment for the town of Stratford. The project was expected to help anchor other projects along the waterfront such as new shops, parks and a marina.

“There's many things you invest your time and energy in that don’t proceed, and this is one of them,” Stratford Mayor Kevin Jenkins told CBC News.

“We remain committed to the waterfront. It’s a marvellous piece of property and I’m sure there will be another development at some point in time that will come along."

Jenkins said the town will continue to work on moving the sewage lagoon away from the waterfront. However, other plans will have to wait until a new development project begins, he said.

“Well, some of that is certainly contingent on development taking place. The tax revenue that would have been generated from commercial developments down there will be used to pay for public space and certain parts of infrastructure,” he said.

Hiemstra said he hasn't given up on the Stratford waterfront, adding he'd like to see a development project on the prime land he owns. However, he said those plans will have to wait for better economic times.