Land Sales Leave Lingering Odour

Tom Fletcher discusses the recent sale of publicly-owned land by the BC Liberals.

VICTORIA – The B.C. Liberal government’s sale of Crown properties to help balance its election budget was the dominant story in the legislature last week, as the NDP revealed evidence of a “fire sale” that may have left millions on the table. They started with Burke Mountain, the biggest single deal involving 14 view properties in Coquitlam. The buyer was a prominent developer whose array of companies happened to donate nearly $1 million to the B.C. Liberal Party since 2000.

The $85 million price tag was similar to the B.C. Assessment Authority value on these forested properties, but an outside appraisal concluded they could have fetched an additional $43 million if they had spent more time on the hot Lower Mainland real estate market.

(This sale made headlines last fall for the province’s $8 million buyout of the local First Nation’s undefined territorial claim, when it was revealed the chief of the tiny Kwikwitlem First Nation pock- eted an $800,000 commission.)

The government’s defence of the sale went from wobbly to weak. Citizens’ Services Minister Amrik Virk was caught flat-footed and tried to get by on platitudes rather than retreat and find some answers.

Premier Christy Clark weighed in, arguing that the budget would have

balanced without the property sale, and that some sales closed too late to help the election-year budget. Finance Minister Mike de Jong stressed that all these asset sales were detailed in three successive budgets. They downplayed the notion of land sales being rushed.

Then the NDP produced a string of emails sent between senior officials responsible for selling two big proper- ties across the street from the legislature.

“To be part of the sale and develop- ment of over eight acres of Victoria’s beautiful inner harbour area is a once- in-a-lifetime opportunity. An opportu- nity that normally would warrant years of planning and preparation,” wrote one citizens’ services bureaucrat. “Unfortunately we don’t have unlimited time – our goal is to have For Sale signs up by Oct. 31 with sales proceeds in the bank by March 31, 2013.”

Then came a disclosure about a prop- erty in Surrey that had been bought as a potential hospital site. Once the existing hospital was expanded, that property was declared surplus. Indeed, de Jong featured this property to promote the government’s plan to stimulate local economies with private sector invest- ment on unused land.

The Surrey deal closed for $20.5 million on March 21, 2014, just days before the end of the fiscal year. NDP

leader John Horgan pointed to an out- side appraisal of $23.5 million, and an assessment for tax purposes of $27.2 million. The appraiser also recommend- ed that the “highest and best use” for the Surrey land was to hold it until had been rezoned for commercial, retail or office development.

De Jong cited another big health property in Vancouver that sold for more than its appraised and assessed value. It’s only the actual market that determines worth, he insisted.

But it’s now clear that these and perhaps other sales were done with arbitrary deadlines that had everything to do with the B.C. Liberals’ need to balance the books. When elections are a battle of sound bites, perception matters more than reality.

It’s also worth recalling that the bud- get deficits prior to the 2013 election were largely a result of the B.C. govern- ment’s costly undoing of the harmo- nized sales tax, rather than the harsh forces of international finance.

Surplus asset sales have a long tradi- tion in B.C., where the government owns more than 90 per cent of all land. But after this round, full disclosure will be demanded. (Tom Fletcher is legisla- ture reporter and columnist for Black Press. Twitter: @tomfletcherbc Email: tfletcher@blackpress.ca)

 

Just Posted

Community support keeps girls hockey alive on the North Island

“A successful program depends on community engagement and support.”

Proposed public art installation sparks debate in Victoria

$250,000 sculpture compliments an interactive sound element of First Nations drumming and singing

#MeToo at work: Employers play a role in fixing culture of harassment

B.C. workplaces are getting ahead of being the next MeToo debacle, calling on experts to train staff

Wilson recognized by Port Hardy Council for commitment to thrift store

Marg is a true leader for Port Hardy’s auxiliary and her nominators feel she is unstoppable.”

#MeToo at work: How reporting sexual harassment works – and how it doesn’t

British Columbians have four options to report harassment or assault, but none of them are easy

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

Tri-Port Midget Wild continue hot streak with back-to-back wins at home

The Wild had a quiet start to their season, going 1-2-1 before suddenly coming alive.

Family suspends search for missing Alberta couple, plane near Revelstoke

Due to bad weather, families of missing Albertan couple say they will resume in the spring

Canadian grocers make $3M per year from penny-rounding: UBC study

Ottawa announced plans in 2012 to phase out the copper coin

Sagmoen neighbours recall alleged hammer attack

Woman was screaming outside Maple Ridge townhouse in 2013

B.C. anti-hate campaigner finds Google search on his efforts redirects to porn

Text from online news article about Cran Campbell being used to link to suspect websites

‘The Last Jedi’ opens with $220M, 2nd best weekend all-time

As anticipated, the movie fell shy of the opening weekend for J.J. Abrams’ 2015 franchise reboot

INTERACTIVE MAP: Follow the 2017 Tour de Rock

Follow the Tour de Rock, as they pedal more than 1,000 kilometres fundraising to combat paediatric cancer

Most Read