The Vancouver School Board's attempt to raise the lease rate on the Kingsgate Mall, a prime piece of commercial property it owns but cannot redevelop without the cooperation of the current leaseholder, Beedie Development LP, has been unsuccessful after a legal battle.
The Vancouver School Board has lost a legal fight to force a developer to pay almost six times the lease rate on a prime piece of commercial property the board owns but can’t redevelop without the co-operation of the firm.School Board owns the Kingsgate Mall, a two-storey shopping plaza and large parking lot near downtown and built in 1974. It has been considered a prime site for redevelopment at much higher density since 2010.
But the land is subject to a 99-year lease that doesn’t expire until 2071. The current leaseholder, Beedie Development LP, manages commercial and residential properties throughout the region and has the right of first refusal on all future lease renewals or changes. “It’s time to move forward,” Mr. Beedie, the head of the company, said in an interview after the B.C. Supreme Court ruled against the school board’s efforts to raise his payments. “I’m going to be reaching out soon to the board chair. This is such a unique and special site. It will provide significant benefits to the community.” The school board and province have both floated ideas for at least a decade about redeveloping the property, which was the original site of Vancouver’s first school outside the downtown peninsula. Some of those proposals included incorporating some education uses in the new development.The board had been trying to get the company to the higher lease rate based on the estimated value of the land if it were developed to its maximum – $116.5-million, according to the court documents. With the current zoning, though, the court considered the site valued at only $20-million. Under the terms of the original lease, signed in 1972, the rent to be paid on the property is 8.25 per cent of its market value. The school board challenged that in 1999, saying the lease rate should be based on the property’s maximum potential, not just on what zoning would allow at any given tim
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