Parcels of Crown land on Burke Mountain, north of the Fraser River at Coquitlam, sold in 2014. (Ministry of Citizens’ Services)

Land sale went through under market value, B.C. auditor confirms

No bias or bid rigging found, NDP government hiring consultant

B.C.’s auditor general has confirmed a 2014 sale of provincial Crown land for development in the Lower Mainland was for as little as two thirds of its appraised value, but concludes there was no collusion or bid rigging involved in the sale.

Auditor General Carole Bellringer’s report on the two-year program of asset sales by the B.C. Liberal government raised 97 per cent of the appraised value of properties, except for a group of parcels on Burke Mountain in Coquitlam.

Of the 21 parcels covering 584 acres, 14 were sold to a single bidder, Wesbild Holdings Ltd., a long-time residential developer in the region. The price of $85 million represented 66 per cent of the value.

The sale of another four parcels in the same group to the City of Coquitlam for $11.8 million netted 80 per cent of the value.

At the time, local MLA Mike Farnworth said the hot real estate market and significant development already completed in the Burke Mountain area made the Wesbild deal look like a “fire sale.” The NDP traced $900,000 in donations to the B.C. Liberal Party from Wesbild director Hassan Khosrowshahi since 2000, individually and through his companies, Burke Mountain, Wesbild, Predator Ridge, Inwest, Westwood Plateau and others.

Farnworth and NDP leader John Horgan accused the B.C. Liberal government of rushing the sale to have it on the books by the end of the 2014 fiscal year, to improve their financial picture in the wake of the harmonized sales tax withdrawal.

“We did not find any evidence of bid rigging, collusion or bias during this audit,” Bellringer said in the report. “However, bias in relation to some of the sale was perceived and raised in the legislature and reported in the media.”

The report notes that the real estate marketing was conducted by Colliers International after an open bid for the job. Bellringer recommends the province’s property agency get individual bids on properties rather than group bids that took place at Burke Mountain.

The remainder of the sales in the “release of assets for economic generation” program, from 2013 to 2015, had prices amounting to 97 per cent of appraised value, the audit concluded.

Citizens Services Minister Jinny Sims said the B.C. government has already made significant changes to its Crown land sale system, and is bringing in an independent consultant to look for further improvements.

Sims said the sale came at a time when the B.C. Liberal government was in a hurry to raise a certain amount of money through asset sales before an election where they needed to show a balanced budget.

The procedure has been changed to make sure each individual parcel of Crown land is examined for value and potential use, such as a school or hospital, Sims said. She pointed to the lack of schools in the region of Coquitlam where the developments occurred, and the sale of a Crown parcel in Surrey that had been designated for a new hospital.

Just Posted

Severe thunderstorm watch issued for Quesnel, Williams Lake

Environment Canada issues storm warning for large hail, strong wind and heavy rain in the Cariboo

Dog hoarder charged in Alberta weeks after pet seizure in Quesnel

Karin Adams, 46, and her daughter are banned from owning pets after 2015 investigation

Quesnel Special Olympics wraps up 2018 soccer and track

RCMP and Willis Harper came out to play an exhibition soccer match

Quesnel seniors community looking for new bands to entertain residents

All ages are welcome to come play and times are flexible

UPDATED: Lightning sparks new fires in the Cariboo

There are thirteen new fires in the Cariboo, as well as one between Hixon and Prince George

Recent online kitten abuse video raises serious social media questions

UBC and UFV profs weigh in on the subject of online sharing, shaming, and our digital landscape

RV insurance costs $1,000 more in B.C. than in Alberta: taxpayers group

Canadian Taxpayers Federation is urging the provincial government to open up ICBC to competition

Summerland issues State of Local Emergency in response to wildfire

Two homes under evacuation order; evacuation alert remains in place as result of wildfire

A brother’s determination pushes B.C. cyclist to ride 2,500 km for heart care

#Cunnycan: Ryan Cunningham ‘pushing the envelope’ to support brother Craig’s foundation

B.C. hockey coach, nurse was killed in case of mistaken identity, police say

In Surrey, Paul Bennett’s wife makes a tearful plea for help in finding her husband’s killer

Lower Mainland blueberry farms expect solid season

Blueberry Council of B.C. says season will be better than last year

B.C. to add hundreds of taxis, delays Uber, Lyft-style service again

Ride hailing companies have to wait until fall of 2019 to apply for licences

BC Games ready to begin on Vancouver Island

More than 2,000 athletes will compete in 18 sports from Friday to Sunday

Most Read