Vancouver hires external auditor to determine how developer got $1.5-million break

Vancouver Mayor Gregor Robertson says the city has called on auditors from KPMG to review how a developer was granted a $1.5-million waiver.

“We have internal and external auditors now looking at our process with waivers to developers to make sure everything is by the book,” Robertson said.

The move comes after Global News revealed that Onni received a $1.5-million Development Construction Levy (DCL) Waiver for a project that didn’t qualify.

READ MORE: EXCLUSIVE: City of Vancouver says it mistakenly gave $1.5M break to real estate developer

The Charleson development at 1396 Richards Street is a mixed-use development, involving market condos and rental units. Only developments offering 100 per cent rentals qualify for waivers.

“Right now it looks like an isolated incident and therefore human error was involved. There is no other evidence of this problem arising, but we want to be sure of that,” Robertson said.

Auditors will assess the city’s adherence to policies and procedures and review management oversight and the approval process.

The city’s Chief Risk Officer is also conducting an investigation, which includes a review of all correspondence on the file and interviews with 10 people involved. Staff expect the report to be released by the end of the week.

In the meantime, Green Party Councillor Adriane Carr is putting forward a motion for staff to investigate whether anyone had the authority to overturn council’s decision on the Onni development.

When the rezoning application for the Charleson came before council in June 2013, the developers were not looking for a waiver, and city council did not grant one.

“I’m asking in a motion to council that if any report back to council, shows us or tells us, who has authority, if anyone – but I’m assuming somebody did –  to overturn a council decision on this? For how long have those individuals or those positions had that authority? None of that is known, none of that is transparent.”

Onni told Global News they would pay back the $1.5 million to the city on Friday.