Update:  The hearing of the application for compensation by Rogers’ Chocolates, originally scheduled for November, has been postponed until January 2010.

The case is the first of its kind in B.C. since the passage of new legislation in 1994.  The City of Victoria designated the interior of Roger’s Government Street store earlier this year, again the wishes of the owner. 

Rogers’ Chocolates is carrying through on a threat to seek financial compensation for the designation of their Government Street store interior in Victoria.  The City of Victoria designated the National Historic Site last February to prevent a proposed alteration and expansion. The company’s solicitor had warned council at the time that the firm would seek compensation. The case is now headed to arbitration.

Part 27 of the Local Government Act (LGA) provides that, should the parties be unable to agree either that compensation is due or on the amount of compensation, either the owner or the city may apply for arbitration under the Commercial Arbitration Act. 

This is what Rogers has done. A sole arbitrator has been assigned the case.

The purpose of the arbitration is to establish what, if any, has been the reduction in market value as the result of the heritage designation. The LGA further provides that the arbitrator must take into consideration:

(a)    financial and other support available for conservation of the designated property, and

(b)    any other benefits that are available because of the designation of the property

This case is a first in B.C., and possibly Canada.  As such, it will very likely become a precedent for similar cases.  The arbitrator’s decision will be final:  there is no provision in law for an appeal.