The Union Bay Improvement District has taken legal action against the Comox Valley School District, from which it purchased land housing the old Union Bay Elementary school for $675,000.
Court documents say the land cannot be bought or sold because its use is limited for school purposes. The UBID uses part of the building as office space.
The property is an amalgamation of three parcels. The school district acquired about an acre plus the building through a Crown grant in 1949, and an adjacent one-acre lot from Canadian Collieries. In 1977, it added the third parcel in an exchange with a developer.
The UBID purchased the land in 2007. It was assessed at about $1.3 million.
The UBID is suing to recover the full purchase price plus interest, taxes and fees.
School district officials confirmed the legal action but were not able to comment.
UBID board chair Bruce Livesey did not return calls.
The UBID is also suing Margot Rutherford, who was its notary public before the sale of the property was finalized in October 2007.