By Lyonel Doherty, Times Chronicle
A group of companies is alleging “improper conduct” against the Town of Oliver following the rejection of a zoning amendment application this year.
Mill Creek, which represents Desert Gem RV Resort, claims the Town’s planning department improperly handled its application to convert the rental-based RV resort to a strata operation.
Owner Scott Nelson told the Times Chronicle that during the two-year process to rezone the property, they were subjected to personal bias and contrived objections by a Town employee. He also claims mistreatment by the mayor.
During a meeting in January, Nelson accused Director of Development Services Randy Houle of misleading council in the application. At this point Mayor Martin Johansen interjected by saying he was not going to accept those types of comments and told Nelson to stick to the facts and leave personalities out of it.
Nelson told the Times Chronicle there are abnormalities in how certain Town employees conduct themselves.
But in a response from the Town, senior management says the zoning application by Mill Creek was handled in a “professional” manner. “The Town of Oliver has reviewed this file and determined that there was no fault with the application process.” The Town stated it will not be responding any further to the allegations.
It did acknowledge that Mill Creek applied for an amendment to convert the single-owner structure of Desert Gem to one of up to 48 strata lots per hectare. But in January, council resolved to deny first and second reading, with no public hearing required.
The Town says Mill Creek has been advised that it may apply to submit its application again without waiting the customary 12 months.
The resort desires to subdivide the property to create separate lots for tourism holiday use. This involves changing it to a strata model with multiple owners.
But Houle outlined a number of concerns to council, such as the proposal being more residential in nature rather than commercial, which is not in line with the Official Community Plan.
But Desert Gem argued their occupants will be tourists who will purchase the lots and rent them out when they are not using them.
In his report, Houle stated the proposal doesn’t go far enough to prevent an owner from purchasing a lot with permanent occupation in mind. He also said staff would be required to communicate with multiple owners rather than a single owner when it comes to bylaw enforcement issues such as duration of stay and unauthorized construction.
Houle reiterated that the land use change from a seasonal campground to a long-term, year-round RV resort will lead to a further departure from commercial tourism (as designated).
But Mill Creek makes it clear that Desert Gem RV Resort has never been a “campground” operation.
However, town council members were not comfortable with the amendment and unanimously rejected it.
In a letter to the Town, Mill Creek general counsel Benjamin J. Block said Houle’s report to council contained inaccuracies, irrelevant opinions, and mischaracterizations of the company’s involvement. He referred to Houle’s remark regarding the “unauthorized” use of the property as a year-round RV resort with long-term accommodation rather than temporary rentals for tourists.
“This is patently false and seemingly designed to create an immediate negative impression of our current business and future intentions,” Block said.
He also referred to Houle’s “unsubstantiated opinion” that the amendment eliminates the possibility that the property will ever be redeveloped into its “highest and best use.”
Block said the most alarming issue is when Houle stated to council that the company did not incorporate any of the Town’s concerns into its proposal.
Block noted this is “wildly inaccurate,” adding that his team has been in repeated contact with Houle to discuss their vision and related concerns. Block said they were blindsided by “new concerns” in a staff report that were never shared with the company.
Nelson told the Times Chronicle that if they don’t see any cooperation from the Town, the company will pursue its legal options. He noted the latest correspondence from the Town’s lawyer states they are not interested in giving Desert Gem any “special process.”
“It looks like it will be a battle,” Nelson said.

