Editor’s note: A previous version of this article’s headline stated the RCMP are “investigating” the City of Vancouver land swap deal. The RCMP have not launched a formal investigation but are currently reviewing a complaint into the deal.
Vancouver Mayor Gregor Robertson is defending a land swap deal that is now the subject of a complaint to the RCMP.
“When we have people homeless in our streets, a top priority is to get social housing built, affordable housing created, and that was using city land,” Robertson said.
The city traded its land at the edge of Emery Barnes Park for another property owned by developer Brenhill.
According to the terms of the deal, Brenhill agreed to build social housing on its lot to replace the aging Jubilee House, in exchange for the right to build a 35-storey tower on the city’s property.
The city’s land was deemed to be worth $15 million under current zoning, while Brenhill’s land was valued at $8.4 million. However the city did not get a certified appraisal before the legal agreement was signed in January 2013.
WATCH: City of Vancouver’s land swap deal stirs controversy
Robertson, when asked why there was no appraisal, could not explain.
“That appraisal wasn’t done when the deal was initially originally struck. Our city manager and our staff are looking at that as best practice. At the time that was not done.”
Brenhill did conduct an appraisal of the city’s property, and according to documents recently released by BC Housing, the city’s land was estimated to be worth $80 million once rezoned.
Glen Chernen of the South Vancouver Parks Society has been studying the deal for nearly two years and is troubled by the difference in valuations.
“I want the truth to come out,” he said.
“We have more questions than answers. There’s so much we need to find out about this deal.”
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He took his concerns to the RCMP last fall and S/Sgt. Annie Linteau confirms they are now reviewing documents and determining the best course of action.
Meanwhile, the NDP’s housing critic David Eby said he is still waiting for answers on what role condo marketing guru Bob Rennie played in the land swap.
The New Jubilee House construction was financed by BC Housing. Rennie was Chair of the Board’s Capital Committee at the time the loan was approved, although he recused himself from the vote. He later gained exclusive marketing rights for 8x on the Park, the luxury condo Brenhill is now building on land once owned by the city.
Rennie’s office did not return Global News’ request for an interview.
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