ST. JOHN | When St. John stopped issuing building permits to the largest under-construction development in town, it cut off revenue from one of its main contributors.

The Gates of St. John has accounted for about one-third of the building permits issued in town in 2008, The Gates developer John Lotton said.

Town Manager Steve Kil confirmed that figure and said it translates into about $245,000 worth of total permit fees the town collected from development within The Gates this year.

The effect on the town depends on the duration of the moratorium on permits. Over the winter, it will have very little impact. But when construction season starts in the spring and summer, the impact would be more significant, Kil said.

The Water and Sanitary Utility Board recently decided that, for now, the town will not allow new commercial or residential buildings in The Gates to tap into the town's water and sanitary systems. Doing so means building permits cannot be issued.

The decision came after board members said Lotton has not made good on all of the improvements he said he would, per an annexation agreement. But Lotton said he hasn't missed any deadlines on any of the projects he agreed to accomplish.

"I have not fallen short on my responsibilities, to this date," he said.

One item at issue is a water treatment plant. Lotton agreed to pay for a plant that processes 1,000 gallons per minute. When the well was drilled and the town realized it could pump more than twice that amount, officials asked Lotton to increase the size of the plant, and St. John would cover part of the cost.

Lotton said he agreed to build the initial plant but never signed anything saying that he would build the larger plant. If the town wants something other than a plant that processes 1,000 gallons per minute, that will have to be negotiated, he said.

Kil said there needs to be a meeting between the town, Lotton and attorneys from both sides to nail down a time frame on when the projects need to be completed.

Kil said he thinks both sides will sit down and take care of things "in short order."

The Gates is bordered by 101st Avenue on the north, Cline Avenue on the east, U.S. 231 on the south and Parrish Avenue on the west.