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Published: October 27, 2008 1:06 a.m.

Last modified: October 31, 2008 3:30 p.m.

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The ongoing feud over the Waterside Centre got uglier Friday when the developer threatened to sue Mayor Peter Kelly.

On Thursday Premier Rodney MacDonald vowed to overturn council’s rejection of the downtown development. Kelly then said the premier shouldn’t override laws “because one developer didn’t get his way,” among other comments.

The next day Ben McCrea of Armour Group sent Kelly a letter demanding an apology.

“To the best of my knowledge neither I, nor anyone associated with Armour Group has spoken to the premier,” the letter read.

McCrea’s statement said Kelly’s comments implied McCrea, or Armour Group, had asked the premier to intervene on the project’s behalf, and that wasn’t the case.

“Unless you are prepared to immediately issue a full retraction and apology in a form acceptable to me, an action for defamation seeking substantial damages will commence immediately.”

Yesterday Kelly clarified his comments, saying they were directed at the premier rather than Armour Group.

He also apologized. Sort of.

“It was not in any way directed or intended to go at Mr. McCrea — it was totally and wholly at the province in terms of their interference,” said Kelly.

“If (McCrea) took offence to them, then that I apologize for. But they weren’t directed at him, so he shouldn’t take offence at what was not directed at him.”

Yesterday Kelly said he was not worried about a lawsuit succeeding and said he doesn’t “think threats is the way to work your way through.”

The nine-storey development, a glass office building on top of three heritage buildings, was voted down by Halifax regional council last Tuesday.

McCrea applied for demolition permits for the heritage buildings within 24 hours of council’s decision. It will take a year for him to get permission to do it. He’ll have the right to knock down the O’Carroll’s building, which is also a heritage property, in May.

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