At least two dozen workers were informed they’d lost their job today as the downtown Skye development site stopped construction.

Developer Thomas Ivanore said the bank backing the project decided to pull its support following a decision by council for the District of Squamish to turn down a rezoning amendment request that would’ve allowed 55 condos instead of the proposed 16 townhomes.

“That was the straw,” said Ivanore.

The rezoning was necessary, he said, since the downturn in the economy has caused buyers to purchase smaller and less expensive units.

“The bank was continuing with us under the commitment that we thought that we had this thing under control, and when we informed the bank that we lost the amendment, then the bank doesn’t have any confidence in us,” he said. “We’re struggling right now to convince the bank that it’s the wrong procedure, but it’s an uphill battle.”

Ivanore said when he first arrived with the proposal before the Olympic announcement, he was greeted warmly by a council who believed the project could improve the neighbourhood, which was struggling with crime and drugs.

“Coun. Lonsdale said at the time we were good enough to come in and get it started in the downtown, but we’re not good enough to support and carry on to finish the job and to keep our employees working,” he said. “It’s about time the people of Squamish start opening they’re eyes, Squamish has a lot of problems. ”

In previous interviews with The Chief, Coun. Doug Race expressed skepticism over Ivanore’s assertion that construction would cease by December if the rezoning didn’t go through.

“Ivanore has linked the second tower to this rezoning of this townhouse area,” said Race. “He told me the types of units that are selling are the types of units that are in this tower. It begs the question why can’t he just proceed with that part and wait for the market?”

In an interview this week, Coun. Bryan Raiser echoed the sentiment.

“This whole loss and lack of construction jobs is a bit of a red herring. He can still build what the original plan was.”

Ivanore said the comments indicate council’s lack of awareness around development.

“He is misunderstanding, he’s missing the boat entirely. It’s not a threat, it’s going to play out, and it’s unfortunately going to play out with lives.”

Drywall contractor Orval Barnes, whose 10 employees are now out of work, said council’s decision makes no sense.

“We’re going into a depression and they’re stopping jobs, it’s insane,” said Barnes. “This is 10 people with families. I should take the guys and their families in their [council members’] office at Christmas and ask them to explain it.”

Raiser said he was “very upset” by the news.

“I’m very upset to hear that there was lay offs. That’s no good. Especially in a time when everybody is looking for work,” he said. “It’s very unfortunate that there are reasons that it can’t go forward as planned.”

Nonetheless, he said, he couldn’t justify approving the amended rezoning.

“I’d be hard pressed to find a reason to support having high density on our estuary. Maybe there is one, but I have yet to hear a good argument for it.”

Ivanore said he will continue to pressure the bank to resume funding, but he’s not very confident.

“Their confidence in the marketplace and their confidence in Squamish part of the problem,” he said. “Squamish, whether council likes it or wants to believe or not, from a developer’s point of view has not a good reputation.”