The Ladysmith Maritime Society lost a last-minute attempt to continue operating the community marina it has built up since 1985. (Google Earth)

By Ian Holmes

marina dispute

Society loses injunction application to continue operating Ladysmith marina

Jan 3, 2024 | 2:27 PM

LADYSMITH — A non-profit’s bid to continue its nearly 40-year run of developing and operating Ladysmith’s community marina is over.

BC Supreme Court justice Warren Millman rejected a Ladysmith Maritime Society (LMS) injunction request to halt a transition deadline of Dec. 31, 2023, to Stz’uminus First Nation (SFN).

Justice Millman’s Dec. 27 judgment followed court action initiated by LMS in response to its 30-year lease agreement to operate the marina until late 2029, which was upended by a 2022 reconciliation agreement between the province and SFN.

Justice Millman referenced the weight of reconciliation in his judgment posted online and that further delays in the transition would not be in the public’s interest.

A submission from SFN Chief John Elliot to the province’s high court outlined how any delays to plans for the harbour would be a setback to reconciliation efforts, which he stated were intended to provide immediate benefits to SFN.

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“That includes financial benefits but separate from any dollar amounts, there is tremendous importance within the SFN community for us to regain control of additional parts of our territory. Our members have been waiting for decades for the return of the land and water areas in Oyster Bay.”

In 1985 LMS received a Town approval to operate a marina on the community’s waterfront, the judgment noted.

In 2009 a lease agreement was forged between a subsidiary of the Town and LMS for the society to manage and operate the marina until late 2029.

Following the March 2022 reconciliation agreement, the judgment noted LMS refused to sign draft termination documents to allow SFN to operate the marina before late 2029.

Despite LMS’ refusal to sign the proposed termination agreements, Town representatives via the Ladysmith Harbour Economic Development Corporation voted in Aug. 2022 to dismantle the sublease for the marina effective Dec. 31, 2023.

In February 2023 SFN informed LMS that it was ending all discussions with the society and was no longer willing to work with them after the transition.

A July 2023 closed-session council meeting resulted in the Town abandoning the marina lease agreement effective Dec. 31, 2023.

In November of that year, LMS demanded to be heard at a Ladysmith council meeting, however, the Town advised LMS that the issue had already been decided at the closed meeting.

LMS alleged the defendants (Town, Ladysmith Harbour Economic Development Corporation and province) were in breach of contract, conspired against LMS and were in breach of duty of procedural fairness for abandoning the lease agreement without notice.

While acknowledging LMS likely suffered irreparable harm as a result of its lease being cut short and the province and Town were less than forthright with its intentions, justice Millman stated none of its claims were particularly strong.

“At this stage, the parties, as well as the public, would benefit from having the issue settled now rather than later. Public access to the marina is not at stake on these applications…The Town or SFN will be offering moorage for some LMS facilities at the marina, including the museum and the dragon boat society,” justice Millman stated.

According to Coast Salish Group’s website, Ladysmith’s marina has been re-branded to Oyster Bay Marina.

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ian.holmes@pattisonmedia.com

On Twitter: @reporterholmes