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

Courtenay family looking for help after baby born two months premature

A GoFundMe page has been set up as a difficult pregnancy and a long stay in Victoria have left the family struggling to get by

Land & Sea Brewing Company opens its doors in Comox

Managing director says the brewery will be a compliment to the Valley’s craft beer scene

Two Courtenay Habitat for Humanity families receive keys to new homes

Lake Trail Road project officially has residents

Preparations ongoing for Courtenay’s annual Earl Naswell Community Christmas Dinner

The doors of the Florence Filberg Centre, downtown Courtenay, will open again… Continue reading

Valley woman found guilty on three charges following 2016 collision in Courtenay

The woman involved in a trial for a multi-vehicle collision in which… Continue reading

REPLAY: B.C’s best video this week

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

Canucks score 3 power-play goals in 4-2 win over Oilers

Vancouver sniper Boeser has 6 goals in last 5 games

Microscopic parasite found in Prince Rupert water affecting thousands

More than 12,000 residents affected by the boil water advisory issued Dec. 14

Trudeau lashes out at Conservatives over migration “misinformation”

Warning against the “dangers of populism,” Trudeau says using immigration as a wedge political issue puts Canada’s future at risk.

B.C. hockey coach creates ‘gear library’ to remove cost barrier of sport

Todd Hickling gathered donations and used gear to remove the cost barrier for kids to play hockey.

Canada’s ambassador meets with second detainee in China

Global Affairs says John McCallum, Canada’s ambassador to China, met with Spavor Sunday

‘They’re coming:’ Flying cars may appear in urban skies by 2023

Air taxis will number 15,000 and become a global market worth $32 billion by 2035

B.C. VIEWS: Andrew Wilkinson on taxes, ICBC and union changes

Opposition leader sees unpredictable year ahead in 2019

5 tips for self-care, mental wellness this holiday season

Ministry of Mental Health and Addictions urging British Columbians to prioritize self care through festive season

Most Read