Beedie appeals decision that would see it pay $40M in rent to Vancouver School Board
Posted April 24, 2023 6:32 am.
Last Updated April 24, 2023 6:33 am.
A major developer will get to move ahead with an appeal of a decision that would have seen it pay $40 million in rent to the Vancouver School Board (VSB).
The B.C. Supreme Court agreed with Beedie Developments that paying the rent would cause “significant hardship” on the company’s business. No part of the rent has been paid yet, as Beedie hasn’t been legally obligated to pay it during the legal process.
The dispute is around the Kingsgate Mall property, which the VSB owns, and how much money the land is worth.
Beedie Developments and Kingsgate Property Ltd. are appealing a 2022 arbitration tribunal decision that valued the Kingsgate Mall property at $116.5 million. That valuation was based on a conditional-use permitted under C-3A Zoning. The lease agreement sets out a formula for the rent based on 8.25 per cent of the property value.
One member of the arbitration tribunal disagreed with the valuation, writing that the market value of the land was actually $20 million.
Beedie told the court that if it was required to pay the $40 million, it would have forced the developer to either divert funds from an ongoing development, force it to sell one its properties, or restructure its existing debt. Instead of paying the amount, Beedie has posted a security while the appeals process plays out.
“The petitioners further submit that if they were to pay VSB the entire amount of the disputed funds now, they are concerned with the prospect of having to enforce a judgment to recover the disputed amounts of back rent and interest against a public school board, if such amounts were paid by the petitioners to the VSB and then an appeal was ultimately successful,” Supreme Court Justice Michael Stephens wrote in the decision.
Those funds would go into the school board’s capital budget, which funds projects like seismic upgrades and school expansions.
Beedie told CityNews it was pleased with the decision but declined to comment further as the matter is still before the courts.
