The company that bought 370 acres of land on Burke Mountain from the province last year says it paid fair market value for the property and stands by the integrity of the purchase process.
In a statement to the media Wednesday, Wesbild responded to public criticism that the province rushed the sale of the land to raise funds to balance its budget, selling the property at below market value.
Wesbild said the sale process was competitive and administered by Colliers International.
"Our firm submitted a bid for 14 of the 21 parcels that were on offer and we were the successful bidder for these lands," the company stated. "We paid fair market value and fully stand by the integrity of this transaction."
This week, the Wesbild purchase garnered the spotlight when the NDP produced documents that showed the province sold the 14 parcels for $85 million rather than the $128 million it had been independently appraised at by Equity Valuation and Consulting Services for the Ministry of Forests Lands and Natural Resources.
Below:Citizens' Services Minister Amrik Virk
That appraisal, done in 2013 by researching and comparing the sale prices of similar properties, was subsequently deemed by Citizens' Services Minister Amrik Virk as "overly aggressive."
The document, obtained by The Tri-City News, shows that Wesbild paid closest to the appraised value for properties located off Cedar Drive, which are serviced with municipal water, with the potential for townhouse development but much less about to 50% of appraised value or lower on properties further north, such as five located east of Coast Meridian in the Hazel Harper Area, considered steeper and further away from servicing.
WIDE RANGE OF SALE PRICES
Sale prices ranged from $11 million for an 11.5-acre lot at 4189 Cedar Dr. (just $20,000 less than the appraised value) to $100,000 for 16 acres of unserviced land valued at $5.6 million fronting Conifer Drive near Harper Drive, which is bordered by Pinecone Burke Provincial Park to the north and east, and is a popular spot for mountain bikers.
The appraiser viewed the Conifer Drive land as moderately sloped, with no watercourses, and stated it could be developed in the medium term once access and services could be provided. The 2015 assessment by the BC Assessment authority was $2.3 million.
Wesbild has been developing property in Coquitlam since the 1990s, including Westwood Plateau, and continues to purchase land, which it services, then sells to other developers that build and market homes. Between 2002 and 2003, it purchased more than 400 acres from the province and private landowners on Burke Mountain, which it rezoned after extensive community consultation. The first parcels of land purchased by Wesbild were re-zoned in the spring of 2006, leading to the beginning of construction of The Foothills community in early 2007.
In the Burke Mountain deal that took place last year, land was set aside for two future schools: four acres for an elementary school and three more for a middle school, which School District 43 will be able to buy back at 2014 prices. Wesbild will cover all the development costs for the schools, which include sidewalks, curbs, street pavement, boulevards and utility infrastructure.
(Meanwhile, Burke Mountain parents are still waiting for confirmation of construction for Smiling Creek elementary and School District 43 has promised to update the community later this spring.)
SOLD IN A RUSH NDP
But Wesbild's land purchase continues to generate comment. This week, NDP leader John Horgan said he believes the province lost money on the deal because it didn't wait the recommended six to nine months to sell the property as it was in the rush to conclude the deal and balance the budget. The NDP also noted that Wesbild founder Hassan Khosrowshahi donated close to $1 million to the BC Liberals individually and through his companies.
Documents show money from the land sale was put in government coffers over two years: Five parcels (phase 1) that sold for $50 million went on the books for fiscal year 2013/'14 and nine parcels (phase 2) that sold for $35 million were placed on the books for fiscal year 2014/'15.
LOWEST RISK, BEST OFFER
In all, six offers were made for the 21 properties, ranging from an interest in only two to five properties up to Wesbild's offer for 14 properties, which was later accepted because it was considered the "lowest risk, most comprehensive bundling of parcels and greatest benefit to the community," according to the report from Duncan Williams, executive director of Tenures, Competitiveness and Innovation Division.
The document, dated April 7, 2015, noted that the province continues to market three parcels on Burke Mountain, "however there has been limited interest in these properties to date."
In January, the city of Coquitlam announced it had purchased 160 acres of land in Burke Mountain's northeast for $11 million. The information was disclosed during budget discussions, when it was announced that the city purchased the property "after the fact" and that no private sector buyers were interested in it. At the time, Perry Staniscia, Coquitlam's general manager of strategic initiatives, said the land was a good investment for taxpayers.
- With files from Janis Warren
