The City of Burnaby is suing a Metrotown developer for almost $1.3 million in unpaid interest.
The city says Thind Development (Maywood) Limited Partnership and Madeira Manor 2018 Ltd. haven’t paid the interest on a $5.68-million deferred “density bonus” payment for a 24-storey tower development at 6677 Silver Ave. (formerly 4330 Maywood St.), according to a claim in B.C. Supreme Court.
When the property was rezoned in 2022, the developers at the time agreed to a deferred payment of almost $5.68 million as part of Burnaby’s “density bonus” policy, according to the claim.
The policy allows developers to pay money in exchange for being allowed to build more units. The money goes towards major community amenities, such as recreation centres, child-care facilities and affordable housing programs.
The agreement obligated the owners to pay the city interest on the $5.68 million at two per cent above the variable Royal Bank prime rate per annum on a quarterly basis until the deferred amount was fully paid, the city says.
Burnaby began invoicing for the interest payments in August 2022, but the city says the owners did not make the payments.
Thind bought the property in early 2024, and the city says both Thind and Madeira “acknowledged in writing” that the outstanding balance remained due and payable.
“To date, Thind has not paid, or caused Madeira to pay, any of the balance of the interest payments outstanding,” said the claim, which alleges the outstanding amount is $1,296,396.57.
In December, foreclosure proceedings were filed against Thind and Madeira.
The city notes in the claim the covenant “runs with the land,” so if the property is sold, the buyer would also become liable for all the interest payments.
The defendants have not yet filed a response the lawsuit.
The city’s claims have not been tested or proven in court.
