Winemaker Andrew Peller Ltd. (APL) is the latest company to sue the B.C. government over alleged "unreasonable delay" and unnecessary land devaluation during the land expropriation process for the Evergreen Line.
Two lawyers told Business in Vancouver that they also have clients who are suing Victoria for damages they claim to have suffered during the expropriation but declined to reveal names because of client confidentiality.
APL, however, is one of the area's largest landowners and is likely seeking more compensation than others given that the province's alleged actions have likely derailed the company's overall plan for redeveloping its 5.24-acre site.
APL operated an Andrés Wines winery and warehouse on its Port Moody site for 44 years before closing it in 2005 and moving production to Kelowna.
The company then proposed building residential towers up to 26 storeys, townhouses, retail and office space as well as light industry on the Port Moody property.
APL alleges in its March 14 notice of civil claim that Evergreen Line officials first told the company in 2002 that they might require Peller's land.
It was not until 2011 that officials revealed that the $1.4 billion, 11-kilometre SkyTrain extension required:
- a fee simple interest in 495 square feet of space for a hydro vault;
- a 8,224-square-foot temporary statutory right of way; and
- a 16,286-square-foot permanent easement.
"Despite APL's protests, and reasonable alternatives being available, the defendants placed the hydro vault in a location where it will have a more serious adverse impact on future development of the property than if it was located elsewhere," the APL notice of civil claim states.
APL also alleges that Victoria breached the law when it expropriated land because it tried to impose a lease. The company's claim maintains that government can legally expropriate an interest in a property only if it is taking a temporary statutory right of way.
Ministry of Transportation and Infrastructure spokeswoman Kate Trotter told BIV that most property acquisitions are achieved by consensus.
"Property owners are compensated for the market value of the land, based on professional appraisal reports, which ensures owners are treated equitably and taxpayers' interests are protected," she said.
None of APL's allegations have been proved in court. •
Evergreen expropriations disrupting business
Steve Tetu counts himself as lucky, even though he was one of dozens of business owners whose businesses were disrupted by Evergreen Line construction.
Tetu moved his EBI Cruiser Parts into what he considers to be a great new building on Broadway Street in Port Coquitlam. Originally he feared that he wouldn't be able to find a suitable new location.
But he still believes the $180,000 he received from Evergreen Line officials was less than he deserved. Tetu also claims he was paid a pittance for all the time that he spent documenting expenses.
"The worst part where they shafted me was on the hours that I spent doing due diligence on my paperwork," Tetu told Business in Vancouver.
"They said they'd pay me what it was worth, but, in the end, they paid me about $10 per hour."
Tetu's situation is better than some, who were not in long-term leases.
For example, Jiffy Lube franchisee Hong Lee picketed Evergreen Line offices and told media in 2011 that he was offered a mere $50,000 to relocate the oil change business that he had owned for 11 years.
Lee's lease had recently expired, and he was occupying his Clarke Road space month-to-month.
Tetu's lease was with then-Port Moody mayor Joe Trasolini, who had Tetu sign a five-year lease just as the Evergreen Line land accumulation was starting.
"Joe definitely wanted me to sign a lease because he wanted to hit [the government] up for loss of income," Tetu said. "When they bought his property, he could say, 'Not only are you buying my warehouse, but, hey, I just got a new five-year lease signed.'"
Trasolini would not reveal how much compensation he received for his property. He told BIV that he doubts that the compensation was higher because he had a fresh lease with Tetu.
"A new lease really just helps the tenant negotiate and say, 'Look, I had my future assured for one, three or five years. Now, you have to make sure I get relocated with that same assurance,'" said Trasolini, who is now the NDP MLA for Port Moody-Coquitlam.
