Mi'kmaq seeking court order against new owner of Mill River properties

The Mi'kmaq of P.E.I. opened a new front in their legal battle over the sale of the Mill River Resort and attractions.

Injunction would prevent further sale or transfer of land

Don McDougall now owns the Mill River properties. The injunction would prevent him from selling the land until legal issues raised by the Mi'kmaq of P.E.I. are resolved. (CBC)

The Mi'kmaq of Prince Edward Island have opened a new front in their legal battle over the sale of the Mill River Resort and attractions.

The Lennox Island and Abegweit First Nations are seeking a court injunction to prevent further sale or transfer of the land.

The motion, filed May 30 in P.E.I. Supreme Court, seeks to prevent Don McDougall and his company from "disposing of, or transferring, any right to, or interest" in the 325.59 acres of land on which Mill River Resort and attractions are located, until the Mi'kmaq's outstanding legal challenges are settled.

Earlier this year, the province sold the money-losing resort, golf course, fun park and campground for $500,000 to Island-born businessman, and founder of the Toronto Blue Jays, Don McDougall, as part of a plan to rejuvenate tourism in western P.E.I.

The deal included the province providing $7.6 million for improvements and to cover some operating losses. McDougall has also said he has $3 million at stake in the project, including the purchase price, capital improvements and financing costs.

The 325 acres on which the resort and attractions are located were on crown land. The Mi'kmaq community claims it was not properly consulted before ownership was transferred. (CBC)

But P.E.I.'s First Nations claim they weren't properly consulted on the disposal of the crown land, as required under constitutional rights.

They launched their legal battle in February, seeking a judicial review.

This new action — the request for an injunction — would prevent McDougall from selling or transferring the land to anyone else until the legal questions are settled.

All parties — the province, McDougall and the First Nations — have filed extensive documentation in Supreme Court, stating their cases as this legal battle continues.

No court date has been set for the judicial review, or for the new motion seeking an injunction.