Hasty land sales leave lingering odour

Land in Coquitlam, Surrey and Victoria could have fetched more if left on the market longer, but political need came first

Crown land on Burke Mountain was sold to a developer as part of the B.C. government's asset sales to balance the provincial budget.

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 pocketed 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 properties across the street from the legislature.

“To be part of the sale and development of over eight acres of Victoria’s beautiful inner harbour area is a once-in-a-lifetime opportunity. An opportunity 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 property 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 investment 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 outside appraisal of $23.5 million, and an assessment for tax purposes of $27.2 million.

The appraiser also recommended 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 budget deficits prior to the 2013 election were largely a result of the B.C. government’s costly undoing of the harmonized sales tax, rather than the harsh forces of international finance.

Surplus asset sales have a long tradition 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 legislature reporter and columnist for Black Press. Twitter: @tomfletcherbc

Just Posted

Housing provided for women and children fleeing violence in Penticton

Announcement on Friday is part of a provincewide initiative to construct additional housing.

People’s Party of Canada leader talks B.C. trade to Penticton supporters

Maxime Bernier, head of the new federal political party, spoke at Time Winery on Friday

Luke Skywalker makes an appearance in Penticton court

KVR Middle Schoolers get firsthand experience at the Penticton Courthouse

Keremeos council members plant tree to celebrate local government

It is the 100th anniversary of the Local Government Management Association of B.C.

Okanagan-Shuswap weather: weekend rain

Environment Canada forecasts continuing bad weather for the start of the weekend

New airline regulations bring compensation for tarmac delays, over-bookings

Some of the new regulations will roll out in July, while others are expected for December.

Sit-in on Saturday will protest move to curb loitering in Penticton’s downtown

Nanaimo Square Sit-In is taking place from 10 a.m. to 2 p.m.

Friend of accused Kelowna murderer takes the stand

Elrich Dyck’s testimony continued Friday with details from the night Chris Ausman was killed

Crews respond to smoke at Penticton thrift store

The rooftop A/C unit began filling the building with smoke, prompting them to evacuate

Princeton RCMP recover stolen homework and save the grade

It’s a slightly better excuse than “the dog ate my homework.” Earlier… Continue reading

New Summerland distillery has received recognition

Alchemist Distiller won audience choice award at recent competition

Scheer says it would take Conservatives five years to balance budget

Scheeraccused the Liberal government of spending $79.5 billion of previously unbudgeted funds

Vancouver woman sexually assaulted after man follows her home; suspect at large

Police are looking for an Asian man in his 40s after the incident on Vancouver’s east side.

B.C. man, 30, arrested for driving his parents’ cars while impaired twice in one day

The Vancouver-area man was arrested after officers caught him driving impaired twice in one day

Most Read