A judge has ruled that 91原创 Township doesn't have the authority to collect millions in Community Amenity Contributions (CACs) from a local film studio, but the mayor said he isn't concerned, thanks to new provincial legislation.
The case pitted Lorval Developments and Martini Film Studios, who were planning to build a major sound stage facility, against the Township of 91原创, in a case launched last year.
Lorval balked at paying the Township's proposed CACs, saying it would have cost them between $32 and $39 million. They took the Township to court.
The judge's ruling notes that last fall the Township changed the Williams Neighbourhood Plan, for the area where the studio is to be built. The change removed targeted CAC rates for that area, in what Lorval argued was a "tactical response" to the lawsuit. This meant Lorval would no longer have to pay the CAC fees, but the lawsuit stood.
Lorval and Martini Film Studios argued that there is no basis in provincial legislation for local governments to collect CACs.
The Township argued that CACs don't require a legal basis, as they are voluntary contributions, negotiated with each developer individually.
In a judgment issued on Friday, June 20, Justice Simon Coval ruled in favour of Lorval, finding the payments weren't voluntary at all.
"91原创鈥檚 CAC policy, as amended, is a mandatory amenity payment regime beyond 91原创鈥檚 legal authority," Coval wrote in his ruling. "It is, therefore, invalid and set aside."
Looking at the whole policy showed "there is a clear implication that the specified contributions will generally be required for a rezoning to be approved, such approval of course being within the sole discretion and control of the Township," the judge said.
The case hinges on how cities and towns collect money to build all sorts of civic goods, from roads to libraries to swimming pools.
All municipal governments collect Development Cost Charges (DCCs) from builders of new homes, businesses, and industrial sites. Rules for DCCs are set out in provincial laws, and the funds are spent on new or upgraded roads, sewers, water systems, sidewalks, and other municipal infrastructure that is required as the community grows.
However, CACs are collected to build things not included on the list of allowed DCC projects. In the Township, they are collected to fund community and recreation centres, and an affordable housing program, for example.
鈥淲e鈥檙e pleased but not surprised that the B.C. Supreme Court ruled in our favour, because it confirms that CACs in practice are not voluntary," said Thomas Martini, of Lorval Developments. "This is a landmark decision about fairness and equity."
He said the decision means that future residential, commercial, and industrial construction will be more affordable for everyone.
Although the Township lost the case, Mayor Eric Woodward called the decision a "nothingburger," as CACs will be phased out due to a change in provincial rules.
"All municipalities are switching to Amenity Cost Charges," said Woodward.
As part of a sweeping series of housing reforms introduced starting in 2023, the Ministry of Housing is bringing in the similar Amenity Cost Charges (ACCs) that will standardize the collection of funds for community centres, libraries, and rec centres. Unlike CACs, these fees will have the force of provincial legislation.
Martini also said he was looking forward to the implementation of ACCs, which he said would be a fair and predictable charge based on transparent math.
Woodward said he is planning to recommend council launch an appeal of the judge's ruling.
The mayor also said that the Township could have an interim CAC policy, different from the one just overturned, put in place to bridge the gap until ACCs come into effect.
