01/08/2019 – Jurisdiction Alberta
Part 67 published on 01/09/2019
Appeal allowed. Municipality obligated to operate and maintain certain water and sewer services on condominiums’ lands
In 2001, Medican Developments Inc. (the Developer) made a proposal to the municipality to develop a 27-acre parcel of land. The land was ultimately divided into five separate parcels. The Developer entered into agreements with the municipality under which the Developer would build and retain ownership of various features, including roads, sidewalks, street lights, water, sanitary sewers and storm sewers. These features were to be maintained and operated by the Developer and subsequent owners of the land (which became the five separate parcels).
A key feature to be operated and maintained by the owners of the five parcels was a sewage lift station, located on one of the five parcels and providing sewage lift service for all five parcels. Expert reports indicated that the lift station was not up to standard and that it would take approximately $880,000 (or more) to bring it up to standard.
The condominium corporations (representing three of the five parcels) applied for an order declaring the municipality responsible for certain infrastructure on their lands (including the lift station).
The lower Court determined that the agreements between the Developer and the municipality were valid and binding, with the result that the owners of the five parcels were responsible for the infrastructure covered by the agreements. The condominium corporations appealed.
The lower Court decision was reversed on appeal. The Appeal Court said:
The City has a statutory duty to operate and maintain the Disputed Infrastructure, being those parts of the water, sewer, and storm water systems on the River Ridge Lands that provide utility service to more than one parcel.
The City’s duty does not extend to any part of the sewer, potable water, and storm water systems located within a parcel used solely for the purpose of supplying utility services to that parcel. In the Municipal Government Act, “parcel of land” refers to a “lot or block shown on a plan of subdivision” and not to a unit of a condominium: section 1(1)(v). Thus, parts of the utility systems that serve more than one unit within a condominium (whether a traditional or bare land condominium) are not the responsibility of the City unless they also serve other parcels within the development.