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

Single-vehicle crash on Highway 97 south of Vernon

Second crash on Highway 97 near Vernon Sunday

Crash on Highway 97 south of Vernon slows traffic

There is currently no word on the cause of the single-vehicle incident

North Okanagan road checks lead to several suspensions

BC RCMP’s CounterAttack campaign is cracking down on impaired driving

Vernon keyboard recitals a success

Students performed Nov. 25 at the Schubert Centre

Silver Star Water Utility advisory rescinded

The advisory put into effect Friday, Dec. 7 was rescinded Sunday, Dec. 9

VIDEO: This B.C. school leads country in vaccine donations to UNICEF

Federally funded Kids Boost Immunity uses quizzes to earn vaccinations

UPDATE: Hedley residents will be without water for at least one week

Elevated levels of coliform and arsenic leave small town dry

Boeser scores 3, Pettersson has 5 points as Canucks hammer Blues

Vancouver picks up impressive 6-1 win in St. Louis

Cold case files: Murdered woman still unidentified after 44 years

Penticton RCMP releasing info on historical missing person and found human remains investigations

Okanagan Valley to see snow tonight

Environment Canada is calling for two-to-four centimetres of snow from Penticton to Salmon Arm

B.C. police stop drunk driver who offered up burger instead of ID

Roadblock checks over the weekend found at least two other impaired drivers

Being vegan during the holidays just got a little bit better

Cook up these delicious options during the holidays

In Canada, the term ‘nationalism’ doesn’t seem to have a bad rap. Here’s why

Data suggest that Canadians don’t see the concept of nationalism the way people do in the United States

Update: Sicamous and Tumbler Ridge neck and neck in the Sled Town Showdown

Both communities in the final round have amassed over 10,000 votes

Most Read