The former owners of a chunk of land expropriated by the District of Central Saanich last year for a new municipal hall are suing the district, saying they were “under-compensated” for the property.
The parties were millions of dollars apart last year on what constituted fair value for the 2.2‑acre (0.9 hectare) vacant site at the corner of Wallace Drive and Hovey Road, also called Lot A.
The municipality began expropriation proceedings last spring after efforts to agree on a price failed.
Central Saanich has said it wants the land for a new municipal hall and police and fire stations to replace aging existing buildings on Mount Newton Cross Road. The district said the 60-year-old buildings have serious accessibility and seismic issues.
The Wallace and Hovey land, along with a neighbouring 2.6-acre (about one hectare) property, had been purchased in 2006 by Park Place Seniors Living, which planned to develop a long-term care facility on the site, said Lina Saba, company director of communications.
Both the company and the district had valuations done for the property, but the company’s assessment — $7.2 million — was more than twice the district’s assessment of $3.1 million.
B.C. Assessment pegged the property’s value at $3.130 million because it’s classified as farm use, although it’s not in the Agricultural Land Reserve.
In July, Central Saanich sent a cheque for $4.64 million to Park Place Seniors Living, the company said in its notice of civil claim filed in the Supreme Court of B.C. in Vancouver.
The money came as a “notice of advance payment,” it said.
Ownership was transferred to the municipality the next month “without the plaintiff’s consent or co-operation,” the claim said.
The notice of claim, filed by a numbered company for Park Place, said the company had planned to develop the two lots — Lot A and the neighbouring 2.6-acre property — together, “as the development potential and value of the two properties were enhanced by unified ownership.”
The claim is asking for the full market value of Lot A, saying the municipality’s appraisal was flawed.
It’s also asking to be compensated for the reduced value of the second lot, which was not expropriated, maintaining it isn’t worth as much because of the expropriation.
Park Place is also asking for additional damages, costs, expenses and losses.
The allegations have not been proven in court.
Central Saanich Mayor Ryan Windsor said the municipality had received the notice of claim and “the process is playing out.”
No statement of defence has been filed yet.
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