The group behind the Bloomfield redevelopment in north-end Halifax says they're glad the Nova Scotia government has walked away from plans to be the developer for the property.

"We're thankful the premier has made a decision," Ron Skibbens, a long-time board member of Imagine Bloomfield, told CBC News.

The province announced Thursday its public housing organization will no longer be the developer of Bloomfield.

'Held onto it too long'

Premier Stephen McNeil hinted last week the province was considering pulling out. He said he believed the project would be better handled by a private developer.

"We believe it's in the best interest of taxpayers now to move away from this project. We could still work with the community — and the community's waited long enough," McNeil said outside the legislature on Thursday.

"As much as I would like to blame a whole host of stuff on the previous government related to this file, we held onto it too long."

$1.4M gone

The province has spent $1.4 million on its involvement with the Bloomfield project, according to community services spokesperson Heather Fairbairn.

It will forgo a $764,800 deposit paid to Halifax Regional Municipality for the land and that cost will be absorbed in Housing Nova Scotia‛s budget, she said.

Nova Scotia also spent around $650,000 on other costs, including for development work and concept design by Lydon Lynch Architects firm to the tune of around $225,000, she said.

Long delays

The province had won a bid for the project at almost twice the cost of the private sector — but did little to move the project forward. In January, Imagine Bloomfield cut ties with the province over the delays.

Now, with the province out of the development, the project can return to square one — meaning it could be opened to bidding again.

"It's a bittersweet decision, and it now means the board at Bloomfield now has another year or two of work with a new developer," Skibbens said.

'Not a private developer'

The Bloomfield Centre — a property sandwiched by Robie Street and Agricola Street — is intended to become a community hub and affordable housing complex.

But Housing Nova Scotia was simply not the right fit, Community Services Minister Joanne Bernard said.

"HNS is not a private developer. It is not a developer of a $100-million housing facility. It simply doesn't have the capacity," she said.

The Nova Scotia government has withdrawn from the Imagine Bloomfield redevelopment. (Halifax Regional Municipality)

Won't solve homelessness, minister says

Bernard said Housing Nova Scotia has a wait-list of around 1,500 people in the Halifax Regional Municipality, but could not use the project to address homelessness and affordability issues in the region.

"Bloomfield was not going to be the panacea to address that problem," Bernard said.

"We know people who are struggling with affordability in HRM who are not able to even qualify for a loan for a condo, let alone a market value condo."

Affordable housing top of mind

The Bloomfield Centre is in the middle of a neighbourhood that faces the loss of other affordable housing options.

It's bordered by a local car dealership, Colonial Honda, which plans to bulldoze more than a dozen homes — most of which are rental properties.

"It is kind of positive, in the fact that there has been a lot of concern in that area of the north end about the impact of losing housing — housing that is affordable," Coun. Jennifer Watts said.

"This is at least something we can move forward on."

Province to share information

The province says it will share information from the design and planning stages, and feedback received during public consultations.

It also says it will work with the Halifax Regional Municipality and any future developer to ensure affordable housing options are available at Bloomfield.