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

VIDEO: Giants take a 1-0 playoff series lead

Vancouver beat Seattle 7-1 in game one of the best-of-seven Western Conference series in Langley

PHOTOS: ‘Enchanted Forest’ excursion unveils Aldergrove park’s new Nature Discovery Area

Atop the former Aldergrove Lake now sits a large “free play” adventure area for kids.

Aldergrove team could return as all-stars on ‘The Amazing Race Canada’

Mother and daughter duo given a second chance, though their fate rests in the hands of voters

PHOTOS: City of Langley library celebrates India’s festival of colour

Kids were invited to learn about Holi celebrations, and taste treats.

Aldergrove glow-in-the-dark swim and games for a cause

Township of Langley will celebrate Earth Hour with its first glow-in-the-dark swim in Aldergrove.

Protective human chain forms around Victoria mosque for Friday prayer

Islanders stand arm-in-arm to show support in aftermath of New Zealand shootings

‘Families torn apart:’ Truck driver in fatal Broncos crash gets 8-year sentence

Judge Inez Cardinal told court in Melfort, Sask., that Sidhu’s remorse and guilty plea were mitigating factors

Boy who went missing from park remains largest probe in Victoria police history

The four-year old Victoria boy went missing without a trace on March 24, 1991

Six ‘distraction thefts’ in two days spark warning to seniors by Vancouver police

Distraction thefts are used to steal jewelry off the necks of unsuspecting women

WestJet sticking with Boeing 737 Max once planes certified to fly

WestJet had expected to add two more of the planes this year to increase its fleet to 13

Motorcyclist dies after three-vehicle crash on old Island Highway

Accident happened at 12:15 p.m. Friday near Country Club Centre in Nanaimo

B.C. driver caught going 207 km/h on motorcycle along Okanagan Highway

A motorcyclist was caught by Kelowna RCMP going 207 km/h on Highway 97C

Protective human chain forms around B.C. mosque for Friday prayer

Vancouver Islanders stand arm-in-arm to show support in aftermath of New Zealand shootings

B.C. fire department offers tips to keep your home safe during wildfire season

With wildfire season getting closer, the Penticton Fire Dept. offer tips to keep your home safe

Most Read