Musqueam Band challenged in court over lease increases on its land
The band's land in South Vancouver is in one of the city's most desirable areas
The Musqueam Indian Band and the residents who lease houses on its land in South Vancouver are going back to court, in a long-running dispute over what constitutes a fair lease increase in one of Vancouver's most expensive neighbourhoods.
Leaseholders of 75 single-family homes have filed a claim in Federal Court, saying the Musqueam are asking for an average increase of $80,000, which they say is out of line with what a previous court decision deemed fair.
The leaseholders own the actual houses, and pay between $7,980 and $11,940 per year to lease the land — some on lots of more than 20,000 square feet. The band sent out notices in May, in anticipation of the expiry of the 20-year leases.
"We've commenced the proceeding to have the Federal Court determine what the fair rent is in accordance with the terms of the lease," said lawyer Randall Hordo, who is representing the leaseholders.
"This follows lengthy negotiations with the band, on both sides."
Last increase in 1995
The last time those leases expired was in 1995, when they increased to $10,000 per year. Up until that point, residents had been paying $400 per year since the 1960s.
At the time, the Musqueam Band had wanted to hike the rent to about three times what the residents said was fair, but a Supreme Court of Canada decision narrowly ruled in favour of the homeowners.
The judge discounted the value of the land because it had a lack of services. Ernie Campbell, the Musqueam Chief at the time, said it was unfortunate the court slashed the value of the land because it's on a reserve.
The lawyer for the Musqueam, as well as the Musqueam Band Chief, declined to comment about the current increases.
With files from Dan Burritt