VICTORIA B次元官网网址� The B.C. Liberal governmentB次元官网网址檚 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 B次元官网网址渇ire saleB次元官网网址� 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 provinceB次元官网网址檚 $8 million buyout of the local First NationB次元官网网址檚 undefined territorial claim, when it was revealed the chief of the tiny Kwikwitlem First Nation pocketed an $800,000 commission.)
The governmentB次元官网网址檚 defence of the sale went from wobbly to weak. CitizensB次元官网网址� 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.
B次元官网网址淭o be part of the sale and development of over eight acres of VictoriaB次元官网网址檚 beautiful inner harbour area is a once-in-a-lifetime opportunity. An opportunity that normally would warrant years of planning and preparation,B次元官网网址� wrote one citizensB次元官网网址� services bureaucrat. B次元官网网址淯nfortunately we donB次元官网网址檛 have unlimited time B次元官网网址� our goal is to have For Sale signs up by Oct. 31 with sales proceeds in the bank by March 31, 2013.B次元官网网址�
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 governmentB次元官网网址檚 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 B次元官网网址渉ighest and best useB次元官网网址� 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. ItB次元官网网址檚 only the actual market that determines worth, he insisted.
But itB次元官网网址檚 now clear that these and perhaps other sales were done with arbitrary deadlines that had everything to do with the B.C. LiberalsB次元官网网址� need to balance the books. When elections are a battle of sound bites, perception matters more than reality.
ItB次元官网网址檚 also worth recalling that the budget deficits prior to the 2013 election were largely a result of the B.C. governmentB次元官网网址檚 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:
