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The Honourable Mr. Justice Bracken has ruled in favour of the Town of Ladysmith by upholding a covenant that restricts the number of dwelling units that can be built on property at 606 Farrell Road.
Covenant EX060846 was registered on the certificate of title in 2005. Zoning on the property would normally allow 29 units to be built; the covenant restricts development to a total of 15 units. Three units already exist at this time. A current owner, Natura Developments Ltd., had petitioned the court to remove the covenant by declaring it to be invalid and/or unenforceable. Justice Bracken ruled that the covenant is valid and enforceable under s. 35(2) of the Property Law Act.
The court decision on the covenant was released on September 17, 2015. The Reasons for Judgment are available here.
Natura Developments has also asked the court to declare the Town’s new Bylaw 1881 (and its predecessor Bylaw 1875) invalid. The Town of Ladysmith adopted these bylaws earlier this year in order to zone the property at 606 Farrell Road to restrict development to the number of units originally allowed in the covenant. The September 17 ruling covered only the covenant. If necessary, court time will be scheduled at a later date for the Justice to hear arguments related to the bylaws before making a decision on that matter.