Background:
Watermark Developments Ltd. sought to discharge two restrictive covenants under section 219 of the Land Title Act on 13 acres of land in Kelowna. These covenants, registered in 2009, prohibited construction to preserve land for the Central Okanagan Multi-Modal Corridor (COMC). Watermark argued the covenants were obsolete, impeded reasonable land use, and provided no practical benefit to the City of Kelowna.

Legal Issues:

1. Obsolescence (PLA s. 35(2)(a)): The court ruled the covenants were obsolete due to changes in the City’s transportation planning. The COMC had been abandoned in favor of a shorter Clement Avenue Extension, which excluded the lands at issue.
2. Impediment to Reasonable Use (PLA s. 35(2)(b)): The court found the covenants impeded reasonable use but concluded their retention provided the City speculative long-term planning benefits, thus precluding relief under this provision.
3. Injury to the City (PLA s. 35(2)(d)): The court ruled that removing the covenants would not injure the City. It emphasized that the City’s planning benefits were speculative and outweighed by Watermark’s immediate development constraints.

Judgment:
The court discharged the covenants under section 35(2)(a) and (d) of the PLA and exercised discretion to grant equitable relief.

Costs Awarded:
Watermark, the successful party, was awarded costs of ordinary difficulty under Appendix B of the Supreme Court Civil Rules. Financial terms were not specified.

Conclusion:
The ruling emphasized the inequity of maintaining covenants that no longer served a practical purpose and hindered development.