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On Thursday February 17th DNC member Beth Malena went to city council to speak about Concord Pacific’s land swap “switcheroo.” City Council and Concord Pacific are in the process of making a deal to allow Concord to get out of their obligation to build social housing into their condo projects on the north shore of False Creek. The deal involves Concord trading the politically loaded and controversial empty lot at 58 W. Hastings, the site of the Olympic Tent Village, and another at 117 E. Hastings in exchange for being released from their social housing obligation in the False Creek condo towers.

In her excellent presentation to City Council Beth Malena outlines DNC’s criticisms of this exchange, and our concern that any city project at 58 W. Hastings be 100% social housing and not a variety of ‘social mix’ condos.

Read Jean Swanson from CCAP’s City Council presentation on “social mix” here.

The Switcheroo: Concord Pacific’s 58 W. Hastings land swap

My name is Beth Malena, and I live and work as a pastor in the DTES.  I’m also a member of the DNC, which has a membership of almost 700 residents of the DTES.  We advocate for the needs, interests, and aspirations of our neighbors.  I’m here representing them.

It has been hard to know how to respond to this rezoning proposal, which we’ve been calling “the switcheroo.”  58 W Hastings has long been on our list of 10 sites we’ve been asking the City to buy.  So in some ways, this Concord plan sounds great!  The land is being handed to the City.  We at the DNC could now join the City in lobbying the higher levels of government for funds to build social housing on that site.

But we have two issues with this plan – two glitches we can see.

First, the cost of the switcheroo – what Concord is asking for in return: a “buy out” from their social housing obligations on False Creek.  As Jean Swanson said, we at the DNC agree that Concord can really afford to just give this land to the City, no strings attached.  It’s not like these sites are very valuable to them – one is beside Insite, and they’ve already tried and failed to build on the other.  If they gave it to the City, they could see it as giving back to the DTES, offsetting the effects of the condos they’ve already built in our neighborhood, on Powell Street.

The second issue we have is the rumblings we’ve heard about what some members of council want to build on these sites: “Housing for people with good-paying jobs.”  If this were to take place, this “switcheroo” would be a shady deal.  Not only would low-income housing NOT be built on False Creek, but it also would not be built in the DTES.

I don’t need to re-hash the reasons why we are pushing for 100% social housing on these sites.  Jean has already done an excellent job of this.  In brief, we are deeply concerned about gentrification.  I am deeply concerned about gentrification.  City staff calls for “revitalization without displacement.”  I believe the “without displacement” part is impossible unless the City starts buying and using sites for 100% social housing.  I’m worried that much of my congregation will be bussing in from Surrey within a few years if this doesn’t happen.

So here is my challenge to you – the challenge of the DNC:

If the City is playing “Let’s Make A Deal” with Concord… fight for a better deal.

Fight for the low-income citizens of the City you lead.  Fight for low-income housing both in False Creek and at 58 W Hastings & 117 E Hastings.  And commit to reserving these DTES sites for 100% social housing.

And we call on Concord to step up to the plate.  Show that it’s not just about legalities, requirements for low-income housing, and “cash in lieu.”  Show that you, as business people and citizens of Vancouver, care about both people who can afford condos and the low-income citizens of Vancouver – friends of mine, whose very lives depend on housing.

Thank you.

City owed $740 million for False Creek development

Cheryl Rossi
Van. Courier

One year after the Winter Olympics began, the Olympic Village remains the focus of uncertainty and speculation.

Ernst and Young, receiver for the troubled development, is poised to provide details about the design and execution of new marketing strategies for the 474 unsold condominiums. The accounting firm is expected to file a report with the Supreme Court of B.C. within the week.

The city is owed $740 million for the development. Bob Rennie of Rennie Marketing Systems expects the new marketing strategy to be made public Feb. 17.

Local media outlets have noted that Francesco Aquilini of Aquilini Investment Group, a development company that owns Rogers Arena and the Canucks, has expressed interest in buying the remaining condos.

Ernst and Young says it has been approached by “several parties” that have indicated their interest in the development, but none of those approaches have resulted in a “definitive proposal.”

Ernst and Young is assessing various alternatives for recouping money on the project.

NPA Coun. Suzanne Anton noted that when it comes to bulk versus individual condo sales, “there’s a philosophical question there, whether to take your losses earlier or to take them later.”

She likely wouldn’t favour a bulk sale. “Because the only way someone would take it at a bulk sale, they would take it at a fairly significant discount,” she says. But, Anton says, the receiver controls the sales strategy. She doesn’t believe Aquilini is in active discussions with Ernst and Young.

Vision Vancouver Coun. Geoff Meggs says he wants “the best mix of sales that produces value for taxpayers” and he trusts Ernst and Young to sort that strategy out. The city announced in November that the Olympic Village was in receivership and that Millennium Southeast False Creek Properties was to transfer ownership of the condos and commercial spaces at the village to the city.

Of the 737 condos for sale in this Southeast False Creek development, 263 have sold. Of Millennium Water’s 119 market rental units, 104 have tenants.

As of mid-January, only two of the commercial spaces were occupied.

COHO Management Services, an arm of the Co-operative Housing Federation of B.C., started handing over keys for the city’s 252 social and market rental and co-op units the week before Christmas. Thirty of these affordable rental units are occupied.

Anton blames the lack of condo sales since the Olympic Games ended on the mayor, for casting a “black cloud” on the development.

Meggs criticizes the NPA for lacking financial transparency and for landing the city in a “financial ditch.”

© Copyright (c) Vancouver Courier

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For Tim and Michelle, it all started in 2008 when they were looking to move up from a condominium. “We wanted a townhome to give us a little more space to start a family in a quiet neighbourhood close to all the amenities we love in Abbotsford. We found the Argyle and bought it from the plans,” explains Michelle. “When we moved in the following year we were blown away. The home was more than we expected and we couldn’t have been happier.” As their family grew, Tim and Michelle knew they needed a 3 bedroom so they started to look. “They didn’t look far – they bought a 3 bedroom home at Argyle,” explains Barb Hughes, Sales Manager. “Why would we leave? It has everything we want – location, quality and value.” “We have 11 homes at Argyle ready to move into, so there is no guessing. 2 bedrooms with 2.5 baths including a powder room on the main floor start at $289,900. 3 bedrooms, 2.5 baths with over 1,300 square feet of living space start at $347,900 and for limited time we’ll pay the HST. And best of all you can walk-through the homes see exactly what you are getting, and move in now,” Hughes said. On homes like these, with the changes in the lending rules that take effect March 18 you can save about $100 a month in payments by buying now. Buyers will be delighted when they tour the Argyle show homes – and perhaps surprised at the sophisticated level of finishing and amenities. There are nine-foot ceilings on the main level, stainless steel appliances, and high-quality laminate hardwood floors. All homes have a powder room on the main floor, a large decks and a high-efficiency gas furnace. For the techies, Argyle features enhanced Cat 5e wiring, quad-shield RG8 coaxial cable for HDTV and high-speed Internet. Hard-wired smoke detectors are standard, as are roughed-in security and built-in vacuum. It doesn’t get much better than this. Argyle is located just off McCallum Road and close to the new sports and recreation centre, University of the Fraser Valley, the new hospital and Highway 1, plus the best of local shopping and dining. All homes come with 2-5-10 new home warranty. View the Argyle show homes at 34248 King Road (off McCallum), Abbotsford, open 1 p.m. to 5 p.m. (closed Thursday & Friday). For details phone 604-557-5959 or visit www.argyleliving.com

Copyright Real Estate Weekly

Council yet to decide on Western Canada’s biggest casino

Mike Howell
Van. Courier

The gaming company proposing to build the biggest casino in Western Canada says the city will receive $23 million each year if city council approves the 1,500-slot facility next to B.C. Place Stadium.

The $23 million figure appeared Jan. 29 in an eight-page advertising supplement in the Vancouver Sun, which featured an update on the renovations to B.C. Place Stadium and highlighted its potential new neighbours.

“At the core is the new B.C. Place, along with new hotels, restaurants and an all new gaming facility,” the advertisement said. “Together, they will provide a new integrated destination entertainment complex for Vancouver, and will be a catalyst for the revitalization of Northeast False Creek.”

Las Vegas-based Paragon Development Ltd. is the proponent of the project. It currently operates Edgewater Casino at the Plaza of Nations. The proposal calls for Edgewater to close and Paragon to move its operations into the new complex, which will be attached to B.C. Place Stadium.

City council has to approve the proposal before it can go ahead.

The $23 million in revenue cited by Paragon in the advertisement was not contained in a city staff report that recently went before council, which referred the casino proposal to a Feb. 17 public hearing.

The staff report indicated the city could stand to collect $17 million a year, along with a $100,000 boost from Edgewater to an existing $200,000 a year “social responsibility fund.” Edgewater provides $7 million in profits each year to the city.

Tamara Hicks, director of corporate affairs and strategic communications for Paragon, said the projected $23 million annual payout to the city includes $17 million in casino profits and up to $5.5 million in property taxes.

“I don’t know why [city staff] didn’t include it, you’ll have to ask them,” Hicks told the Courier.

“Council knows this. We gave them the full economic report, so they have all that information.”

David McLellan, the city’s general manager of community services, said city staff stuck with the $17 million figure in the report because it is difficult to assess property tax values before a project is completed.

“We hardly ever factor in things like property tax because that’s an ongoing charge that everybody has,” McLellan said. “I wouldn’t hazard a guess, from my point of view, on what the property taxes would be.”

The Courier contacted Vision Vancouver councillors Geoff Meggs and Tim Stevenson and COPE Coun. David Cadman to seek comment about the money question. But the councillors said the city’s legal department has instructed them not to comment on Paragon’s proposal until the Feb. 17 public hearing.

COPE Coun. Ellen Woodsworth was to introduce a motion at Tuesday’s council meeting–after the Courier’s print deadline–related to gaming, including a call for a review of gaming in B.C. Speakers to the motion were warned in a memo from city clerk Marg Coulson to refrain from discussing matters related to Paragon’s proposal.

Hicks said Paragon’s plans to expand its operation–which could see its 75 games tables double to 150 and its 520 slots triple to 1,500 in the proposed complex–was always the intent of the company when it bought Edgewater for $43 million in 2006 from then-owners Gary Jackson and Len Libin.

If council approves the new casino, Paragon will pay landlords B.C. Pavilion Corporation–a provincial Crown corporation–$6 million per year (plus inflation) in lease revenue, which will go towards recovering the cost of the new retractable roof on B.C. Place.

The city will host a “gaming information session” Feb. 8 at the Roundhouse Community Centre from 6 p.m. to 9 p.m.

© Copyright (c) Vancouver Courier