While the bid amount wasn't made public at the time, we subsequently learned it was $334 million. However, only 10% was paid as a downpayment. Moreover, the provincial government gave Holborn $211 million in interest free loans for 18 years. Interest does not accrue on the loans until Dec. 31, 2026.
As a key condition of the deal, Holborn had to complete 234 social housing units before they could obtain Occupancy Permits for any of the market housing. Unfortunately, the provincial government and its lawyers did not impose deadlines in the legal agreements for the construction of the social housing. If they had been included, it is likely that they would have been met, or have allowed the province to take back the property. 15 years after buying the property, only a small percentage of the social housing units have been built.
I have often written about my concerns about what was happening, or not happening at Little Mountain. In March 2011 I posted this article https://gellersworldtravel.blogspot.com/2011/03/so-whats-happening-at-little-mountain.html
It concluded with the following: "My prediction? If we’re not careful, just as happened at the Olympic Village, government will not get the huge amount of money and social housing that the developer promised. I hope I’m wrong, but somehow, I doubt it. "
A year later, I was interviewed by a Vancouver Sun reporter who wondered why there was so little progress with the development. After his story appeared, the developer complained to the Urban Development Institute about my criticism of them. https://vancouversun.com/news/metro/developers-inexperience-may-be-behind-little-mountain-delays
Over the years, many others have written about the sad situation, including Kerry Gold
https://www.bcbusiness.ca/little-mountain-and-the-future-of-social-housing-in-bc
Last week, it became public that Holborn was seeking Vancouver City Council's approval to remove the condition requiring completion of the social housing before the first market housing, since they claimed they couldn't arrange private financing. When I first heard about this on X (formerly Twitter) I objected, noting this was a fundamental aspect of the deal. It seemed grossly unfair and a terrible precedent to allow the winner bidder to change the deal, especially since they had made so little progress, yet so many promises to proceed with the construction, including this 2021 agreement. https://news.gov.bc.ca/releases/2021AG0134-001778
I subsequently spoke to others knowledgeable about the current situation who assured me that while they too were extremely disturbed by Holborn's request, they had concluded that it was the best solution to ensure the social housing units are built and the province receives some or all the outstanding land payment. This is no doubt the reason why seven members of Council agreed to Holborn's request. However, I must confess I sympathise with those who voted against the deal.
On a related matter, while many owners of vacant land are being charged the Empty Home Tax, oftentimes unfairly as is the case with one of my clients, at the council meeting we were advised this developer is excused from paying the tax since the property is a 'phased development'. Here is the relevant section of the bylaw:
(A rezoned property is excepted from the EHT, where either:
- a complete development permit application has been submitted for at least one parcel of residential property which is part of the phased development and is under review by the City in the vacancy reference period; or
- a development permit has been issued by the City for at least one parcel of residential property which is part of the phased development and work under the development permit is, in the opinion of the General Manager of Development, Buildings and Licensing or the General Manager’s delegates, being diligently pursued and without unnecessary delay
So, let's not throw the baby out with the bath water.
ps. A bit more information. Late today, one of my favourite journalists, Mike Howell, just published this excellent article providing a lot more detail on the project.
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