Commonwealth Campus Corp. is seeking damages from the BID Group of Companies, claiming it backed out of a deal to purchase five parcels of downtown land in the vicinity of what is to be the home of the Wood Innovation and Design Centre.
In a notice of civil claim, Commonwealth states BID had agreed to buy the lots for $4.1 million but after paying a $100,000 deposit failed to meet the closing date for completing the sale, which had been extended to April 24, 2013 from October 1, 2012.
"The defendants breach of the agreement has caused and will continue to cause the plaintiff to suffer loss, damage and expense," Commonwealth states in the claim, filed May 1 with the B.C. Supreme Court in Kelowna.
Commonwealth is seeking a court order forcing BID to either live up to the agreement and cover the cost of damages caused by the delay, or to allow Commonwealth to keep the deposit and have BID pay damages for breach of contract.
A response from BID has not yet been filed.
It's the second civil court case to come out of the apparent land deals gone wrong related to the WIDC.
In November 2012, Northern Development Initiative Trust began foreclosure proceedings against Commonwealth over the remainder of a loan issued to finance land assembly in the 400 block of George Street where the WIDC is to be built.
As of early April, Commonwealth owed nearly $1.5 million in principle and interest, according to NDIT.
Commonwealth president Dan McLaren has countered that NDIT misled Commonwealth with assurances it would purchase the land or find another buyer and has left the company with land worth significantly less than the price Commonwealth paid.
McLaren also alleges in an affidavit that then-Prince George MLA Pat Bell urged him to secure the entire 400 block to prevent speculation that would increase the cost of acquiring the land. The intent was to use the WIDC to anchor a downtown campus for UNBC.
The sides have since agreed to take the matter to a hearing before a B.C. Supreme Court Justice and on May 30, NDIT filed a reply denying Commonwealth's allegations, saying McLaren approached NDIT asking for a loan to purchase the lands.
"At all material times, it was clear that the only role NDIT would have would be that of lender," NDIT states in the reply.
A court date for that case has not yet been set.
