BC Assessment sometimes has an interesting way of valuing properties and buildings. The Avalon Dairy estate at 5805 Wales is assessed with a value of $2,200 for the heritage building (pictured) while the land is valued at $6,230,000 (this is as of July of last year). Is this building really worth so little? Or is this minimal value just the result of the way the assessments are calculated? Property owners of course can appeal their assessments (twice) if they are in disagreement with BC Assessment. It’s worthwhile noting here that land in Vancouver is assessed at the “highest and best use” which usually translates into the maximum density that could be built on a site. This is opposed to the existing use for the property. Hence excessive tax assessments may encourage property owners to redevelop. Assessments for surrounding properties are adjusted based on sale prices in the vicinity; upzoned properties can thus have tax implications on all neighbouring properties.
The pictured Avalon Dairy property was sold last year for a reported $6 million and is now owned by Avalonna Homes Ltd. The developer seeks to put 60 units of housing on this site while retaining the heritage building. Pottinger & Associates are also involved as (developer relations) consultants on this project as are Donald Luxton & Associates (heritage density bonus specialists). The Avalon Dairy redevelopment is currently in a pre-application stage; the City of Vancouver has no information on the project. Further details from the pre-application June 4th Open House are available here in an earlier post.