It was heralded as the "most radical (housing) development seen in London in the last quarter century."

But eight years after a proponent used those words to describe a plan to build 3,200 homes between Westmount and Lambeth, many of the features that were to make it innovative are gone, city council heard last night.

And just as concerning to council, the development has taken a toll on a revolving fund whose troubles have the city considering eliminating it or reducing its role.

The North Talbot plan was supposed to be London's antidote to decades of housing developments whose roads, houses and lack of commercial mix made it a haven for automobiles, not people.

A joint project of Tribute Homes of Toronto and Speyside East Corp. of London, the new subdivision was supposed to offer the charms of Wortley Village, complete with a village green.

Coun. Susan Eagle supported it then but not yesterday.

"It has not turned out the way it was supposed to," she said.

What was supposed to be a village green has been transformed into an enclosed park with housed backing along its perimeter, Coun. Judy Bryant said.

"It's really quite disturbing. It's not creative, inventive or state-of-the-art," Bryant said.

Also disturbing to councillors is that the project will claim nearly $3 million more from a revolving fund for developers than will be repaid that fund.

The gap between what is claimed of Urban Works Reserve Fund and what is paid into it has grown so much, developers must wait three years to collect.

The gap prompted council last night to substantially boost charges paid back into the fund and led deputy mayor Tom Gosnell to suggest the city should not proceed further with the Speyside subdivision until a deal could be brokered that the city could afford.

But Gosnell's call came a year too late, city staff said, since council previously approved the work that puts such strain on the revolving fund.

Coun. Joni Baechler was among the minority of council last year that voted against the project because of concerns about the revolving fund.

Now it's too late, Baechler said.

Council agreed, voting to extend the time by one year that Speyside has to move to the next phase of its plans.

Most of the site lies south of Southdale Road between Colonel Talbot and Bostwick roads.

The increase in charges passed last night means a builder would pay $6,340 for each single-detached home, an increase of 37 per cent.

The hike would be bigger for commercial builders, with the charge per square metre rising to $66.78 from $40.28.