The City of Penticton says it is dropping its lawsuit against the province and B.C. Housing after the province announced plans to relocate a shelter the city had previously decided to close.

On Wednesday, the city said it had received B.C. Housing’s application to move the 42-bed Victory Church shelter on 325 Winnipeg Street to 1706 Main Street, a location they say is consistent with its shelter guidelines.

In July, the city filed a petition with the B.C. Supreme Court, challenging the province’s decision to overrule the city and continue operating the shelter. As a result, B.C. Housing has been operating the shelter without a city permit, which expired on March 31.

The petition came after city council unanimously voted in April to sue the province.