A B.C. Supreme Court petition demanding payment over the stalled Porteau Cove development deal was stayed in late August when the parties agreed to return to arbitration.
A community of 1,400 units on 471 hectares was supposed to have been built by now near the provincial park, but for the long-running legal dispute between the Squamish Nation and a division of Concord Pacific.
Squamish Cornerstone Developments Ltd. petitioned the court on July 25 against land owner 602297 B.C. Ltd., Porteau Cove Developments Ltd., Porteau Cove GP Co. Ltd. and Porteau Cove Developments LP.
Cornerstone is a partnership of Squamish’s Bethel Lands Corporation, Texas-based Matthews Southwest Development and the Squamish Nation that has its sights set on bringing the project back to life. It sought a judge to declare a May 2009-registered mortgage in default and to set $2.9 million (plus interest) as the amount of money required to redeem the lands. The petition also wanted a judge to set a one-month redemption period, after which the lands be listed for sale.
The parties reached an Aug. 26 consent order that stayed proceedings pending arbitration. Squamish Cornerstone lawyer John McLean told The Squamish Chief that he was “not in a position” to provide an update on the matter. Hein Poulus, lawyer for the 602297 B.C. Ltd., Porteau Cove Developments Ltd. and Porteau Cove Developments LP declined to comment.
Business in Vancouver reported in April on leaked documents that confirmed Concord Pacific bought out the Squamish Nation for a nominal $1 in June 2013 under a buy/sell clause in their contract. The Squamish Nation disputed the validity of that buyout but was unsuccessful.
The latest court filings include a copy of the $1 CIBC money order sent from Concord Pacific law firm Stikeman Elliott to 688368 BC Ltd., a Squamish Nation company now known as Porteau Cove Holding Co. Ltd.
The NDP B.C. government gave the Squamish Nation an option to buy the land in August 2000 from a division of BC Rail. Through 602297 B.C. Ltd., Squamish Nation exercised a $10.1 million option in April 2004 with $505,000 from Concord Pacific division Adex Holdings and nearly $9.6 million as a vendor take-back mortgage from BC Rail Properties.
A Feb. 16, 2004 letter from then-Adex Developments vice-president David Negrin said Adex would be responsible for arranging financing and managing the development process. Profits from the joint venture would be shared 50-50 after repayment of the land purchase price. There would also be job training and business opportunities for Squamish Nation members.
602297 B.C. Ltd. granted Porteau Cove Developments LP – a partnership of Adex and two Squamish Nation numbered companies – the option to buy the land in March 2005.
A July 25 affidavit by Gibby Jacob, former member of chiefs and council and current executive operating officer of intergovernmental relations, natural resources and revenue, said the partnership exercised an option on the property in October 2008.
Various transactions followed in which shares of numbered companies were transferred back and forth. The $2.9 million obligation was secured by a mortgage granted to a Squamish Nation entity. Instead of the land being transferred to the partnership, Adex eventually exercised a buyout clause for a nominal amount to buy the interest of one of the companies holding the property.
In August 2011, Adex senior vice-president Cliff McCracken gave Jacob 120 days to accept or decline the $1 offer under the buy/sell clause, and left the door open to restructuring the deal. Squamish Nation retransferred its interests, but the buy/sell process resumed. The transfer of the partnership interest of 587267 BC Ltd and 688368 BC Ltd. to Adex and Porteau Cove Developments was confirmed in a previous round of arbitration, the affidavit said.
“The mortgage has been assigned to Squamish Cornerstone Developments Ltd.” Jacob swore in the affidavit. “The Squamish Nation, 587267 B.C. Ltd. (now Porteau Cove GP Co. Ltd.) and 688368 B.C. Ltd. (now Porteau Cove Holding Co. Ltd.) have no interest in the partnership.”
