Kelowna's Legal Battle: Developer vs. City Over Building Permits

Kelowna, British Columbia, is currently the stage for a legal showdown between a prominent developer, Appelt Properties, and the city council. The conflict centers on the revocation of permits for a proposed 25-storey mixed-use building named "Muse" on the former RCMP site at Doyle Avenue. This dispute erupted when it was revealed that several individuals were compensated $250 each for expressing support for the "Muse" project during a public hearing in July 2022. This article delves into the controversy, the legal implications, and the city's response to the lawsuit filed by Appelt Properties.

The controversy began when Appelt Properties, which held a 99-year lease for the site's redevelopment, was summoned to appear before the city council to explain why the development and development variance permits should not be revoked. This action was prompted by the discovery that several individuals received payment for speaking in favor of the "Muse" project at the 2022 public hearing. Appelt Properties argued that no policies or rules were violated during the public hearing and questioned the motives behind the city's actions.

Appelt Properties maintained that the payments were justifiable. They contended that these payments were made to students who were deeply concerned about Kelowna's housing crisis and had to forgo work and travel great distances to participate in the hearing. JDH Naturals, a public relations firm hired by Appelt, facilitated these payments as reimbursement for lost wages, travel expenses, parking, and meals. Appelt Properties firmly believed that this financial assistance was essential to enable those passionate about the housing issue to express their views during the public hearing.

In response to the city's decision to revoke the development permits for the "Muse" project, Appelt Properties followed through on its threat to sue the City of Kelowna. The lawsuit, filed in B.C. Supreme Court in Vancouver, argues that the council's decision was unreasonable and procedurally unfair. Appelt Properties seeks to have the decision overturned. The lawsuit also provides a comprehensive history of the developer's substantial investment in the "Muse" project, totaling $10 million over four years.

The City of Kelowna defended its actions in response to the lawsuit. The city emphasized that it had the right to revoke the development permits for the "Muse" project. They argued that a "material fact had been unavailable" to the council when they initially approved the permits, necessitating the revocation. The city contended that while it is common for professionals like engineers and architects to receive compensation for speaking at public hearings, the same does not apply to the general public. They highlighted their broad discretion in regulating procedures.