A developer who had planned on putting up a new hotel on the downtown waterfront in Sydney, N.S., is returning to its original plans after that project fell through.

The company now expects construction will start on a new commercial and residential building later this year.

"The hotel partner just has changing circumstances and competing priorities in the region, so they've decided that this time or at this phase, it's not right for them," said Douglas MacLennan, development manager with Tier To…