It may be months before there is a decision in a potentially landmark case over whether Langley Township can collect a certain kind of development fees from the builders of a new film studio.
Lorval Developments, along with Martini Film Studios and other firms involved in plans to build a huge new sound stage complex in the Willoughby neighbourhood, took the Township to court in September 2024.
Their petition to B.C. Supreme Court asked the judge to declare the Township's Community Amenity Contribution (CAC) policy "null and void."
All new developments pay fees to local governments under a system of Development Cost Charges (DCCs). Those fees are regulated by provincial law and cover costs local governments take on as a result of increasing development 鈥� new sewers, water pipes, sidewalks, and street lights, for example.
CACs are a relatively new class of payments by developers to local governments, but they have gained popularity in the last 20 years across Metro Vancouver. CACs are earmarked for spending that goes beyond basic infrastructure, including things like community centres and recreation facilities.
Lorval argued to the court that the Township 鈥� and by implication, other municipal governments 鈥� have no right under legislation to charge CACs. It also alleged that a specific amendment the Township council made to CAC policy in 2024 was invalid.
According to Lorval's initial claim to the court, the company would have had to pay between $32 and $39 million in CACs on their massive, 735,000 square foot film complex project. As planned, the project would include 600,000 square feet of sound stages, on a 70-acre site that covers almost a quarter of the Williams neighbourhood near 216 Street and Highway 1.
The Township argued back in a court filing that said because CACs are voluntary contributions, negotiated with each developer, they can't be overturned by the courts. The CAC policy sets guidelines for the general amounts to be contributed, it said.
After those initial filings last fall, the case went before Justice Simon Coval between March 10 and 13, with a brief continuation on March 28.
According to a representative of one of the firms that took the Township to court, Coval's decision isn't expected for six months or more from the conclusion of the arguments.
If Coval decides in favour of Lorval and Martini Film Studios, it could overturn the ability of Langley Township, and potentially other municipal governments across British Columbia, to collect CACs.
Local governments have collected hundreds of millions of dollars in CACs, and the amount collected has risen in recent years as local governments have faced pressures to build more community amenities in the face of rapid population growth.
Meanwhile, developers have decried the rising cost of fees charged by municipal governments, saying it is adding to the high cost of construction during a housing crisis.
