A local firm hoping to build a major new film studio complex in Langley Township is taking the municipality to court, claiming the Township has no right to charge fees that could be as high as $39 million.
Lorval Developments, G&T Martini Holdings, and a number of other companies, all owned or run by siblings Gemma and Thomas Martini, launched a petition in B.C. Supreme Court on Sept. 4, attempting to overturn the Township's policy on community amenity contributions (CACs).
Williams, southwest of the 216 Street highway exchange, is where the Martinis have planned for years to build a 735,000 square foot filming complex – including 600,000 square feet of sound stages – on a 70-acre site that makes up almost a quarter of the entire neighbourhood.
The developers have already put $26 million into site prep work, and has given the Township an $8 million bond, the petition says.
That's over and above the $190 million the company has said it paid for the land.
On top of the costs of the land and the future construction of the studio, the companies say that CACs from the Township would cost them between $32 and $39 million, depending on how they are calculated – at $19 per square foot, or $550,000 per acre.
Martini Film Studios already operates multiple sound stages at a facility in Walnut Grove, as well as Martini Town, an exterior filming location in South Aldergrove with a variety of streetscape facades.
Lorval Developments is asking a judge to declare that the Township's CAC policy, or a specific amendment to it made last year, are void and will have no effect. They are also asking that the Township be responsible for Lorval's legal costs.
This is the second legal action launched this year by the film studio developers against the Township.
In January, Martini Film Studios petitioned the courts to overturn revisions to the Williams Neighbourhood Plan which would have redesignated part of the studio lands for civic institutional use. The Township has been looking for a new site for a works yard – where trucks and heavy equipment, along with road salt and other supplies can be stored – for some time.
The change would have eliminated space for six sound stages, the Martini Film Studios alleged. Within weeks, the Township council had decided to take a "sober second look" at the changes.
Although some of those changes to the neighbourhood plan were rolled back, a CAC policy for Williams that imposed the fees on commercial and business developments was not, the court petition says.
"Council simply left the new higher charges in place," it alleges.
The current legal challenge also notes the significant increase in CACs since early 2023. Increasing contributions from developers to fund amenities like sports fields and pools was one of the goals Mayor Eric Woodward and his Contract With Langley slate ran on in the 2022 election.
The court petition claims, however, that the Township's CAC policy is illegal under regulations like the Community Charter and the Local Government Act that regulate what fees cities and towns can collect.
The petition makes a number of specific claims, alleging that the Township's CAC policy and specifically amendments made on June 10 this year are beyond the Township's authority, that their adoption fails to meet legal standards of reasonableness, and that their adoption is a breach of procedural fairness.
Woodward told the Langley Advance Times that municipal staff are working with legal counsel "to defend the taxpayers interests."
He also noted specifically that the film studio project actually shouldn't be paying any community amenity contributions if it goes ahead as planned.
“It is important to note that the Martini Film is not subjected to CACs, as repeatedly alleged, unless they are unable to achieve final adoption due other litigation," Woodward said. "I believe council would definitely consider an extension for that for this project, given the strong support it has expressed for it to proceed.”
However, the case could impact other developments.
If the court action is successful, it would apply to CACs from any and all residential developments in the Township, Woodward said.
"It appears that the corporation and/or the corporate directors Thomas and Gemma Martini are taking the position that they should not have to even consider contributing to amenities that are required because of growth as a result of their development," Woodward said. "The only alternative will be for property taxpayers, seniors and small businesses within our community, struggling to even make ends meet in many cases, to pay for the needed amenities required because of development. I find that to be unacceptable."
The legal claim cites a number of previous court cases, including one going back to the 1970s when the Township had to return money to a Brookswood housing developer after overstepping its legal authority.
As of this week, Langley Township had not yet filed a response in court.
The Langley Advance Times has reached out to Martini Film Studios for comment.