A Kelowna businessman is suing the City of Vernon over its delay in issuing him a business licence, according to a notice of civil claim filed on Christmas Eve.
Yuri Alexander Bos took the city to the B.C. Supreme Court for the second time in as many years on Dec. 24, claiming the city's delay in issuing a business licence caused him to lose a lease agreement with a storage company, which in turn caused him a loss of income.
According to the notice of civil claim, Bos is the owner of properties located at 4600 and 4604 34th Street in Vernon. In April 2021, he entered into a lease agreement with BigSteelBox Corporation (BSB). The agreement was for a 10-year lease of the properties for $32,997 annually. Under the agreement, BSB would pay additional rent which included property taxes for the properties, which are zoned community commercial.
BSB conducted an environmental study on the sites before engaging with the City of Vernon to acquire the necessary permits to use the properties for outdoor storage. However, the city would not authorize BSB to use the properties for the proposed use.
In June 2021, BSB terminated its agreement with Bos due to the city's refusal to permit the company to use the properties for outdoor storage.
According to the claim, the city "wrongfully and without lawful right" caused BSB to terminate its agreement with Bos by "unreasonably refusing" to grant a business licence to the company, which led to Bos losing income in the form of rent and maintenance and upkeep expenses.
"By reason of the conduct of the defendant, the BSB was unable to satisfy itself under the agreement that the properties' intended use would comply with the zoning bylaws in force in the City of Vernon, thereby causing BSB to terminate the agreement with the plaintiff," the lawsuit states.
In November 2022, Bos went to the city hall to submit a permit application for the use of the properties as outdoor storage sites. A receptionist told him that an answer would be provided within two weeks, and did not advise that there were any deficiencies with his application.
Over the course of a number of months, Bos sent emails and returned to city hall multiple times to inquire about the status of the application and to apply for the permits he needed for the properties.
As of August 25, 2023, Bos had not received any update on the status of his application.
"The (city) did not have the power to prohibit the issuing of the business licence to BSB. The properties are C5 designated which allows for outdoor storage," the claim states.
In March 2024, the B.C. Supreme Court ordered the city to make a decision on Bos's application within 14 days. It ordered that if the city were to refuse the business licence, it must provide written reasons explaining why. Bos was also awarded his costs at Scale B. Ten days later, the city issued a business licence for outdoor storage at 4600 34th Street.
However, in his latest lawsuit, Bos argues he lost revenue because the city did not issue the business licence for BSB in a timely manner.
"The actions of the (city) interfered with the contractual relations between the plaintiff and BSB that resulted in the plaintiff losing the benefit of the agreement with BSB and the plaintiff has lost the profit he would otherwise have made and has been greatly injured in his business and has suffered, and continues to suffer loss and damage," the claim states.
Bos is claiming punitive damage for the conduct of the city in the matter.
The city has 21 days as of Dec. 24 to respond to the lawsuit.
None of the claims have been proven in court.
The Morning Star has reached out to the city for comment.