Adams River development controversy reveals need for legislative amendment
March 2012, Watershed Sentinel, www.watershedsentinel.ca
By Jim Cooperman
In 2008, groups from throughout the province supported the efforts by Shuswap residents and organizations to halt the proposed condo and RV development adjacent to the Adams River, home to a world famous sockeye salmon run. Although they successfully prevented the re-zoning for the proposal, the developer went ahead and installed new infrastructure and began marketing RV lots. Plus, in spite of the regional district’s rejection of the plans for a huge marina, 75 large buoys were installed in the sensitive fresh water estuary that provides critical salmon nursery habitat.
The developer used a loophole in the Land Title Act to market the RV lots by selling 199-year leases of a small metal storage shed that included the right to park a RV or park model on the site. This loophole took advantage of a clause in the Act that allows for the leasing of buildings or portions of buildings for offices and shopping centres. Adding to the problem was the lack of will by the Financial Institutions Commission to enforce the Real Estate Development Marketing Act, which provides the authority to prevent marketing when developments do not have the necessary approvals from local governments. Instead, the Superintendent of Real Estate simply allowed the developer to file numerous disclosure statements, with each new one amending the deficiencies in the previous ones.
In 2011, the development ended up in court by challenging the plan by the regional district to issue an injunction to stop further construction, as its stop-work orders had been ignored. Fortunately, Supreme Court Judge Sigurdson agreed with the regional district’s interpretation of the zoning rules and the developer lost, meaning it could not use the grandfather clause to market the RV lots. In addition, the developer’s attempt to register one of the RV lot sales was rejected by the Land Title office.
The development had been under bankruptcy court protection, as it is in debt to the tune of over $18-million dollars to a mortgage company and there is a list of unpaid contractors who provided materials and labour for the new infrastructure. In late January, Judge Sigurdson placed the development into receivership. On February 13th, the creditor, Mission Creek Mortgage, filed a foreclosure petition that states its intention to sell the property. Thus, efforts will likely begin soon to hopefully purchase the property so that it can be added to Roderick Haig-Brown Park.
While the issues concerning the proposed Adams River development appear to be nearing final resolution, the shed-lease loophole in the Land Title Act remains. Another Shuswap Lake development is now attempting to market RV lots by leasing sheds and apparently there are other developments also utilizing this loophole. Thankfully, the provincial government is now considering an amendment to the Act, so that developers will no longer be able to circumvent the rules and market undesirable developments without complying with existing regulations.
Jim Cooperman is president of the Shuswap Environmental Action Society, the primary organization working to protect the land adjacent to the mouth of the Adams River.