Musqueam Band challenged in court over lease increases on its land

The Musqueam Indian Band and the residentswho lease houses on its land in South Vancouver are going back to court, in a long-running dispute over what constitutesa fair lease increase inone of Vancouver's most expensive neighbourhoods.

Leaseholders of 75 single-family homes have filed a claim in Federal Court, saying the Musqueamareasking for an average increase of $80,000, which they say is out of line with what a previous court decision deemed fair.

• B.C. native band loses rent hike dispute

The leaseholdersown the actual houses, andpay between $7,980 and $11,940 per year to lease the land some on lots of more than 20,000 square feet.The band sent out notices in May, in anticipation ofthe expiry of the 20-year leases.

"We've commenced the proceeding to have the Federal Court determine what the fair rent is in accordance with the terms of the lease," said lawyer RandallHordo, who is representing the leaseholders.

"This follows lengthy negotiations with the band, on both sides."

Last increase in 1995

The last time thoseleases expired was in 1995, when theyincreased to $10,000 peryear.Up until that point, residents had been paying $400 per year since the 1960s.

At the time, the Musqueam Band hadwanted to hike the rent to about three times what the residents said wasfair, but aSupreme Court of Canada decision narrowly ruled in favour of the homeowners.

The judge discounted the value of the land because it had a lack of services. Ernie Campbell, the Musqueam Chief at the time, said it was unfortunate the court slashed the value of the land because it's on a reserve.

The lawyer for theMusqueam, as well as the Musqueam Band Chief,declined to comment about the current increases.