A lawsuit has been launched against the Saskatchewan government over a controversial land deal involving the Global Transportation Hub.
In a statement of claim filed this week in Regina, McNally Enterprises alleges the government threatened to expropriate the land from the company.
The Ministry of Highways and Infrastructure offered McNally compensation of $9,000 per acre for 44.7 acres and $11,000 per acre for 28.06 acres, according to the claim.
An independent appraiser pegged the value of the land at $38,000 per acre, but the ministry rejected that appraisal.
“The ministry represented that the appraisal was unrealistic and stated that the appraiser would be reported to its professional organization with a complaint for incompetence in the preparation of (McNally’s) appraisal,” the claim states.
McNally agreed to sell the land to the ministry at the value estimated by the government. The Crown-owned Global Transportation Hub later bought the land for $103,000 per acre.
“(McNally) claims that the ministry misrepresented the value of the lands to induce (the company) into the sale to it at a substantially reduced value,” the statement read.
“The ministry was under a duty to pay due compensation for the lands and was guilty of misfeasance in office in exercising that duty by grossly under paying (McNally) for the lands.”
McNally is seeking more than $2 million in damages, plus interest and legal costs. A statement of claim contains allegations that have not been proven in court.
