The legal challenge to quash council's approval of $275 million in loans backed by Kamloops taxpayers will be back before a judge on Jan. 13, 2025.

(LEVI LANDRY / iNFOnews.ca)

City of Kamloops lawyers will try to convince a judge next year that an effort to backtrack a $275 million loan for new facilities should be tossed out of court.

Lawyers appeared briefly in court this week after Kamloops resident Kathrine Wunderlich applied to have the loan approvals sent to a referendum.

The City responded in court to criticize the legal basis of Wunderlich's application and sought to have it dismissed entirely. BC Supreme Court Justice Brad Smith put off the decision and set a one-day hearing for January, according to court records.

Wunderlich was represented by James Kitchen who appeared electronically for the Nov. 18 hearing.

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She's part of a group called Kamloops Citizens United, which bills itself as a city hall watchdog that works on behalf of taxpayers. Their opposition of the $275 million Build Kamloops loans is currently aimed at the counter petition process used this summer, which the city opted for over a referendum.

The combined $275 million between two loans is meant to be used for two new facilities, but local governments in BC need elector approval before taking out large loans. Officially called an alternative approval process, the counter petition needed 10% of the electorate to sign and oppose the loans this summer. If successful, a city could abandon the effort entirely or move to a referendum.

The alternative approval process comes with certain rules and a set of guidelines set out by the province, and Wunderlich argued the City didn't meet the requirements.

Her key argument suggested the City didn't adequately advertise the loans and the counter petition, largely because there is no newspaper and some people may not be online.

The City shot back in an affidavit from City communications manager Kristen Rodrigue who argued it had advertised the counter petition to thousands of people through social media platforms and the city's own websites also saw hundreds more users than normal on a daily basis.

Rodrigue also pointed to dozens of stories by local news media covering the counter petition and social media groups, mostly Facebook, that saw regular posts criticizing the counter petition process.

READ MORE: City of Kamloops being sued over failed counter petitions to borrow $275M

The City previously advertised all statutory public notices in the last local newspaper Kamloops This Week until it closed last year. The province allows for alternatives when there is no local paper and the City argued it's met the requirement.

Beyond online options, the City also advertised the Build Kamloops initiative at multiple events, while Rodrigue said staff were careful not to be seen as swaying elector approval. The City also sent more than 20,000 utility bill newsletters that included information about the counter petition.

Sending dedicated newsletters regarding the counter petition would "defeat the purpose" of the process because it's meant to be cheaper than a referendum and it would be "far beyond" reasonable advertising alternatives to newspapers, the affidavit read.

Other City staff argued all legal procedures set out by the province were followed.

Wunderlich also argued the counter petition should only be used for infrastructure rather than facilities like an arena or an arts venue. It also shouldn't be used in the summer, she said.

READ MORE: 'Democracy at work': Build Kamloops projects to go ahead after counter petitions fail

Though the province's guidance does suggest where and when counter petitions should be used, including times of year and the types of projects, they are not rules set out in legislation. The proposed counter petition, or alternative approval process, was also reviewed and approved by the province before it went ahead this summer.

Provincial guidance also suggests that projects which are seen as controversial should go straight to referendum instead. Wunderlich said they are controversial, including the downtown arts venue specifically. She included dozens of pages of social media screenshots seemingly meant to show the issue as controversial.

Planning for the Build Kamloops projects, meanwhile, is underway as the City aims to start construction on the downtown performing arts centre first, followed by an arena at the base of Kenna Cartwright park.

A legal challenge specifically related to the arena is also ongoing separately as petitioners are claiming councillor Mike O'Reilly was in a conflict of interest due to real estate development several kilometres away.

Go here for more of our coverage of the Build Kamloops projects and loans.

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