Could East Vancouver’s iconic Kingsgate Mall go up for sale?
An institution to some, and an eyesore to others, the eclectic shopping centre has served Mount Pleasant for five decades.
But what few of its customers likely know is that the land — recently assessed at a value of close to $250 million — is owned by the Vancouver School Board.
Since 2005, the site has been leased to Kingsgate Property Ltd., a subsidiary of the Beedie Development Group, which is locked in a multi-year legal battle with the VSB over what the district alleges is more than $50 million in unpaid rent.
As a part of a July ruling in that case, first reported by the Globe and Mail, it was also revealed that the VSB was now looking to trigger a default on Beedie’s lease, and could be looking to sell or redevelop the land.
According to the ruling, a VSB official told the court the district “has begun consideration of matters in light of the possible termination of the lease, including timing of any re-entry, possible sale or redevelopment options, and commencing the process of applying for rezoning of the Property” since May of this year.
While the outcome of that legal dispute remains unsettled, urban planning and real estate consultant Michael Geller said the days of Kingsgate Mall in its current form are likely numbered.
“This property is going to be redeveloped, even though it is so truly beloved by the community,” he said.
“And to get an idea of what might be developed, you just have to look next door (at the Rize development) and expect something even bigger.”
Geller believes the resulting project would likely be mostly housing, but that the city has said it would require a portion equivalent to the current commercial space be held as retail for the benefit of the community. Any project would likely include community amenities such as child-care or park space, he said.
Should the school district be in a position to move on the property, he said the major question would be whether it would sell it outright, or seek a long-term lease with a new occupant.
Speaking on CKNW’s Jas Johal Show, former Vancouver District Parents Advisory Council chair Vic Khanna said he can’t understand why the VSB would consider letting go of prime land.
“Kingsgate Mall just ties in perfectly with this thinking that VSB has, which is based on their belief that there’s going to be way more children in Vancouver in the future,” he said.
“Last year, the VSB had record growth. They grew by 2.5%. Now, this year, parents are expecting another record growth, like another at least a thousand kids into the VSB in addition to what they had last year.”
Khanna pointed to the now-bustling Olympic Village and the massive anticipated influx of Mount Pleasant residents as the city moves ahead with subway construction and the associated Broadway plan, and said the city needs to align its schools plan to match the growth.
“I see two public schools at Kingsgate Mall. And I see housing at Kingsgate Mall,” he said.
“If we are trustees of the VSB and we’re only worried about the VSB interest, then we only want to redevelop Kingsgate Mall when we want to put an education complex there … Until then, leave it alone.”
In a statement, the VSB said any changes to the future use of the mall would have to be approved by the board, and follow a rigorous process.
“At this point, no decision has been made,” it added.
In its own statement, Beedie managing partner Rob Fiorvento said the developer couldn’t comment due to legal proceedings, but continued to look for an “amicable solution” with the school district.
In the meantime, the dispute between the two parties remains before the court.
The VSB is citing a January 2022 arbitration panel’s decision that assessed the property’s value for the prior five years at $116.5 million, significantly boosting the rent Beedie would have to pay, adding up to the $52.4 million it says the developer owes it in back rent or faces a default on its lease.
Beedie has been seeking to appeal that decision through the courts since March 2022, and last month a B.C. Supreme Court judge ordered a stay on the arbitrator’s decision and pending default while that appeal is heard.
The Kingsgate Mall property was originally acquired by the City of Vancouver and the School Board in the late 1800s, with Mount Pleasant School built there in 1892.
Nearly a century later, Kingsway and Broadway had become a thriving area, and the board built a new school in a near by residential area, vacating the property in 1972. Two years later the land was leased and the mall was built.
The mall has at points gone through hard times, but owing to its eclectic shops and clientele, has also developed something of a cult following — including a parody Twitter account and an Arkells music video featuring Tegan & Sara.
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