Comment 116711

By kevlahan (registered) | Posted March 02, 2016 at 10:12:53 in reply to Comment 116709

I just double-checked, and the expo 86 north shore False Creek lands were sold for $320 million for 204 acres in 1988 and the right to develop 12 million square feet of residential and commercial. The cost of remediation, paid by provincial government, was estimated at $75 million and the government is responsible for any cost over-runs.

Again, the feeling is that the City (and Province) made a bad deal by selling off 204 acres to one developer for such a low price (and taking responsibility for the clean up).

Note that when the land was sold Lee-Kai Shing had zoning for 1400 units. There are now 20,000 residents in these lands. Clearly, the city could have charged a lot more, or sold the land progressively, or leased it, or developed parts themselves and captured more of the value.

The province " lost between $150 and $290 million in carrying charges, construction and clean-up costs " on the deal and the cost to Lee-Kai Shing was only $10 per developable square foot.

“By the time the (Offi cial Development Plan for Concord Pacifi c Place) was approved, prices in the downtown core had nearly doubled and Li’s 91 acres were worth more than $700 million. True, Li has to put in roads, sidewalks and sewers… And he has to pay for parks, a walkway, community centre, library, eight day care centre and other community facilities (which will make the property even more valuable). But he has already earned a paper profi t of nearly $500 million, probably much more since there is nothing stopping Li from asking for, and receiving, higher densities down the road…” (Gutstein 1990, 137, cited in Beazley 132).

And Li did indeed get ask for and receive the higher densities he wanted!

This should be a cautionary tale for Hamilton in its efforts at waterfront re-development of industrial land (including Barton-Tiffany)!

Is Hamilton even going to insist on the sorts of community amenities Vancouver insisted Li provide? Are they going to make the developer pay for infrastructure (roads sewers electrical etc.) like Vancouver did?

Comment edited by kevlahan on 2016-03-02 10:16:37

Permalink | Context

Events Calendar

Recent Articles

Article Archives

Blog Archives

Site Tools