In a way, the exposed rebar at the stalled Capital City Centre development at Colwood Corners resembles metal weeds that have sprouted up from a period of neglect.
With the liquidation of its assets expected to start in earnest soon, itB次元官网网址檚 clear the League group, which once had a grand vision for the 13.9-acre site, wonB次元官网网址檛 be the developers of the site.
The recent decision to include the Colwood site with LeagueB次元官网网址檚 other holdings in the court-ordered mass selloff is good news to Colwood Mayor Carol Hamilton.
B次元官网网址淲eB次元官网网址檙e still sitting with a hole in the ground,B次元官网网址� she said. B次元官网网址淏ut IB次元官网网址檓 hoping thereB次元官网网址檚 some attraction to it that will bring somebody to the forefront. Hopefully there will be somebody out there who can realize the benefit to what has already been done.B次元官网网址�
By the time construction stopped on the project last summer, the only work completed was essentially an underground parking lot.
While investors in the failed company will receive their vastly diluted share of the funds once the companyB次元官网网址檚 assets have been liquidated, Colwood expects to see the outstanding property taxes and fees in full.
It also includes interest that has accrued. The current amount owed, with interest, is approximately $350,000, according to city finance staff. The mayor stressed that B次元官网网址淐olwood is not at risk.B次元官网网址�
The Capital City Centre situation is far different than when the Lehigh gravel pit closed in 2007-08.
That property, now central to the massive Royal Bay development project, was re-assessed at the time and transformed from a revenue-producing operation to a fallow piece of land.
B次元官网网址淚t took a million dollars out of the coffers of the city in taxation,B次元官网网址� Hamilton said.
A report released last month for stakeholders by court-appointed monitor PricewaterhouseCoopers laid out the reasons for LeagueB次元官网网址檚 collapse, including the devastating blow to the market value of the Colwood property, on which it embarked upon its first B次元官网网址済round-upB次元官网网址� development. LeagueB次元官网网址檚 property holdings primarily consisted of existing buildings.
The report states that League intends to liquidate all operations and assets by the end of 2014, rather than consider restructuring and attempt some form of development on the Colwood property.
Answering residents who point fingers at the City of Colwood in this scenario, Hamilton said even with staff and councilB次元官网网址檚 best efforts, itB次元官网网址檚 difficult to foresee the market changes and other factors that can lead to the financial ruin of development companies.
B次元官网网址淲e would probably be safer to look (only) at small residential subdivisions, but what does that speak to at the end of the day for the overall health of the community? Not much.B次元官网网址�
Facilitating economic growth requires taking chances with well-established, well-backed developers who are willing to dig deep and invest in the community, she said.
editor@goldstreamgazette.com
