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(LEVI LANDRY / iNFOnews.ca)

Around two dozen people were in a Kamloops courtroom as a BC Supreme Court judge shut down the effort to overturn a pair of municipal loans for new civic facilities.

It means $275 million in taxpayer-backed loans will go ahead and the City will resume work on the downtown performing arts centre and a multiplex arena near Kenna Cartwright Park.

"I have considered and it is my view the petitioner has failed to establish the city acted unreasonably," BC Supreme Court Justice Joel Groves said today, Feb. 21.

Opponents failed in their effort to campaign to stop the loans last summer, then Kathrine Wunderlich of the group Kamloops Citizens United took the City of Kamloops to court over the counter petition process it used.

Central to the argument was whether the City properly advertised the counter petition for residents, a process that would have required advertisements in a local newspaper if not for Kamloops This Week's closure in October 2023.

"There was nothing unreasonable about what the City of Kamloops did here," Groves said, whose decision was met with some disappointed and disapproving murmurs from the gallery.

Several city councillors were also in the room, sitting in the front row, while Mayor Reid Hamer-Jackson was in the back.

The counter petition, known as an Alternative Approval Process, was chosen instead of a referendum. They're often used for urgent loan requests and they gauge the temperature of voter approval. If a tenth of Kamloops voters signed the petitions, they would have likely gone to a referendum.

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"It seems clear from the evidence before the court that those who oppose the bylaw did not garner enough support," he said.

Thousands did sign the petitions, but it wasn't enough to stop the effort last year.

Though Wunderlich argued it wasn't properly advertised, Groves disagreed.

"I see no basis on the evidence before me to conclude the city made any technical mistakes," Groves said.

It was "very much" public knowledge and said the city couldn't be seen to have tried to "deceive" the public.

"The use of the Alternative Approval Process was something many citizens viewed of skepticism or concern," Groves said, adding that it might serve as a warning for councils.

He said when faced with large borrowing requests, citizens might expect to vote on those decisions. He said it's not the role of the court to decide that because the City of Kamloops followed the law.

"The province could very well have said through the Community Charter that you can only use this process for certain requests," Groves said. "The province did not."

Groves said it's up to voters to make their voices heard over political decisions if they disagree with council, while the court's role is to decide whether government made their decisions properly.

"Our role is not to tell governments the decisions they made were incorrect political decisions," Groves said. "We simply apply the law."

Speaking to reporters after Groves gave his decision, Wunderlich said she planned to appeal it then promptly filed documents with the court. It's not clear how long it will be before the courts decide whether the appeal will be allowed at all.

"It could end up being an election issue," Wunderlich said, suggesting there's a chance it could take more than a year. She plans to represent herself rather than bring a lawyer this time.

The City attempted to have Wunderlich pay its legal costs for this petition, but Groves decided each would cover their own.

“Council has been unanimous in its support of Build Kamloops. It’s unfortunate that the actions of one resident have resulted in additional costs to all local taxpayers to defend a legal, democratic process,” city councillor Kelly Hall said in a news release. "We look forward to putting this behind us and building the amenities our growing community needs to thrive.”

Wunderlich argued the city provided inadequate information when pitching the two loans including how how they would be funded. She said the timing, too, was poorly chosen as it was during the summer. The provincial government's own guidance suggests avoiding times when people may be away and on holidays.

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Despite that guidance, it was the BC Ministry of Municipal Affairs which allowed the city to use an alternative approval process rather than a referendum. To do that, the province required the counter petition for each loan be separated.

Groves heard from lawyers on both sides last month, but took time to consider his decision.

With taxpayers are on the hook for $275 million in loans, Wunderlich attempted to overturn the counter petition process with the expectation it come back for a referendum, just as was expected when the second iteration of the downtown arts venue was proposed five years ago. The COVID-19 pandemic derailed the referendum and taxpayers have waited years for the proposal to return.

“We are thrilled with the outcome, and with this legal clarity we are ready to take the next steps in fulfilling this community vision,” Coun. Hall said in the City news release. “It’s an exciting time for our city, and we look forward to building a cultural and recreational legacy for future generations."

— This story was updated with comments from Kathrine Wunderlich at 11:40 a.m., Feb. 21, 2025.

— This story was updated with a statement from city councillor Kelly Hall at 1:21 p.m., Feb. 21, 2025.

— This story was corrected to remove reference to Reid Hamer-Jackson sitting with Kathrine Wunderlich's supporter at 3:27 p.m., Feb. 21, 2025.

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